FMC revises norms for surrendering membership of commexes

Commodity markets regulator Forward Markets Commission (FMC) has revised norms for surrendering membership of bourses with effect from today.
"The Commission has received representations that the existing procedure for surrender of membership is cumbersome and time consuming. ...After detailed consultations with all the stakeholders and exchanges, the revised procedure for surrender of membership has been approved," FMC said in its latest circular.
As per the revised norms, once commodity bourses receive an application for surrender of membership from a member, they should advertise the same for public information and clients' complaints, if any, within one month from the date of receipt of such application.

Advertisements should be published in at least one national-level newspaper and one local newspaper which is widely circulated in the locality in which the member concerned is located.
Further, the exchange should ensure as far as possible that the application of surrender of membership is informed to the clients of the concerned member by way of text message or emails.
The exchange should provide 60 days for receiving complaints against the member after the date of publication of the advertisement. And the exchange should redress complaints, if any against the member within 60 days of receipt of such complaints.

After processing redressal of all the complaints against the member, if the exchange considers the case eligible for surrender, the exchange should intimate the regulator of the same within 15 days.

If no communication is received by the exchange from the regulator within 30 days of such intimation, the exchange can approve the request of surrender of membership and should refund all the deposits of the member within three months of the date of intimation to the regulator.
List of the members whose request of surrender has been approved by the exchange, along with date of approval, should be widely published by posting the same on the website of the exchange.
FMC said that revised norms will be applicable from January 1 and exchanges are directed to make suitable changes in their bye-laws, rules and regulation.