Earlier, commodity exchanges were allowed to keep interest free deposits with them for at least three years from the date of receiving request of membership surrender.
Regulator had sought public comments in September on the proposed guidelines, with shortening of payment release period.
"The Commission has received representations that the existing procedure for surrender of membership is cumbersome and time consuming. In this regard, the Commission had invited public comments. After detailed consultations with all the stakeholders and exchanges, the commission has decided to revise interest free release of membership deposit," an FMC circular said.
On receipt of application for surrender of membership, the exchanges shall advertise the same for public information and clients’ complaints, if any, within one month from the date of receipt of such application in a national and a local newspaper. The exchange shall provide two months for receiving complaints against the member thereafter and redress the complaints, if any against the member within two months, an FMC circular said.
After processing redressal of all the complaints against the member, if the exchange considers the case eligible for surrender, it will intimate the Commission within two weeks. If no communication is received by the exchange from the commission within one month of such intimation, the exchange can approve the request of surrender of membership and shall refund all the deposits of the member within three months of the date of intimation to the Commission, the FMC said.
