2. MEMBERS AND CATEGORIES
2.1 Companies / Individuals registered with PetEx as a member or as a Client under a registered member are entitled to trade through PetEx platform. PetEx has prescribed the following three categories of Members:
A. PetEx Associate Member (PAM) – PAM is a company which is admitted by PetEx as a member, conferring upon him a right to trade (either as a Buyer or as a Seller) in one single segment of product defined by PetEx and clear all trades executed on his own account only, through the Clearing House of PetEx. In case the Associate Member wants to expand his trading to additional Segments then he can do so by paying the additional fees, segment wise as prescribed by PetEx. However, he can expand the membership up to maximum of two segments. An Associate Member can only trade on his own account and does not have the rights to enroll clients under the membership.
B. PetEx Business Partner (PBP) – PBP is a company which is registered by PetEx as a member, conferring upon them a right to trade (as a Buyer/Seller) in all the segment of products defined by PetEx and clear all trades executed on his own account or on behalf of his clients and clear through the Clearing House of PetEx, as a PetEx Business Partner. PBPs are geographically assigned non-exclusive specific territories as per the business requirements of PetEx and appointed to specifically offer PetEx services to the territories assigned to them by PetEx.
C. PetEx Institutional Member (PIM) – PIM is an institution/ corporate who is admitted by PetEx as a member, conferring upon them a right to trade in all the segment of products defined by PetEx and clear through the Clearing House of PetEx, as an Institutional Member.
2.2 Relevant Authority may define and admit any category or categories of Members apart from the Membership categories mentioned at Clause 3.1 on such terms and conditions as may be deemed fit and proper by Relevant Authority and / or prescribed by the Relevant Authority from time to time. The Relevant Authority may at its absolute discretion reject any application for membership without assigning any reasons thereof.
2.3 The process and procedure for admission of any entity as Member of PetEx shall be as defined in these General Terms and Conditions or the Special Terms and Conditions as applicable from time to time or any other method as deemed fit and proper by Relevant Authority form time to time.
2.4 ADMISSION OF MEMBERS
2.4.1 CRITERIA FOR ADMISSION OF MEMBER –
Following entities are eligible to apply for grant of membership at PetEx: –
b. Sole proprietors,
c. Hindu Undivided Families (HUF),
d. Limited Liability Partnership (LLP), Partnership Firms,
e. Co-operative societies registered with the registrar of co-operative societies of the respective states / Union Territories,
f. Companies, corporations or institutions incorporated under Companies Act, 1956 along with the amended Act of 2013 or under any central or state legislation including Producer Company and are permitted under their Memorandum of Association or applicable constitution document for engaging in production / trading / consumption / broking in commodities/assets/services etc.,
g. Financial Institutions / Banks,
h. Such other persons / entities as may be permitted by the relevant authority of the PetEx
2.4.2 FEE / DEPOSIT STRUCTURE –
Applicants whose applications are accepted for admission will be required to pay one-time admission fees as prescribed by Relevant Authority from time to time and Membership renewal fees as may be prescribed by Relevant Authority from time to time.
2.4.3 ADMISSION PROCEDURE
a) The applicants shall submit their applications for Membership in the format prescribed in MEMBERSHIP FORM as made available by PetEx from time to time, complete in all respects, along with all relevant documents and Annexures as applicable to the applicant and accompanied by non- refundable admission fees as prescribed by demand draft or pay order drawn in favor of “Petroleum Exchange of India Private Limited”, payable at Mumbai or NEFT/RTGS in the account of PetEx. Incomplete applications shall be liable to be rejected.
b) The application along with relevant documents and applicable fees must be submitted at the corporate office of the PetEx as made available on the website of PetEx.
c) The application should also be backed by copy of applicable licenses pertaining to classes of petroleum products with respect to their storage and must be valid at the time of submission of documents for membership processing.
d) The admission procedure shall consist of appraisal of valid applications and other documents annexed and in case required, a personal interface with the membership committee constituted by the Relevant Authority for this purpose. The final acceptance / rejection of any membership application shall be at the absolute discretion of the Relevant Authority and the decision of Relevant Authority shall be final and binding on the applicant.
e) Notwithstanding anything contained herein, Relevant Authority shall have absolute discretion and right to relax, vary, add to, delete, introduce and/or change any or all of the Membership type, eligibility criteria and/or admission fees for any applicant or in general. Further, the admission of the applicant as a member would be at the sole discretion of the Relevant Authority and the decision of Relevant Authority shall be final and binding on the applicant.
f) Further, Relevant Authority reserves its right to reject, cancel, suspend and/or terminate the Membership granted to any Member at any point in time, in case deem fit by Relevant Authority, with or without assigning any reasons whatsoever and any such decision of Relevant Authority shall be final and binding on the Member.
g) All the Members shall adhere to these General Terms and Conditions, the Special terms and conditions as prescribed or published from time to time by Relevant Authority and shall comply with such operational parameters, rulings, notices, guidelines and instructions issued by Relevant Authority from time to time.
h) Members shall deposit with PetEx interest free security deposit/s or any other deposit, cost, guarantee or collateral securities of such amount and in such manner as may be prescribed by Relevant Authority from time to time towards EMD.
i) Every Member is directly and wholly liable, in accordance with these General Terms and Conditions, Special Terms and Conditions or under any notifications or directions of PetEx for due fulfillment of the deals and all obligations related thereto, whether such deals be for his own account or for the account of any of its Client
2.4.4. ADMISSION UNDER MISREPRESENTATION
The Governing Board may expel a Member of the Exchange, if in its opinion to be recorded in writing, such Member has in or at the time of his application for admission to membership of the Exchange or during the course of the inquiry made by the Governing Board preceding his admission.
i. made any willful misrepresentation; or
ii. suppressed/concealed any material information required of him as to
his financial position, including financial liabilities, character and
iii. has directly or indirectly given false particulars or information or
made a false declaration.
2.5 PROCEDURE SUBSEQUENT TO ADMISSION
i. Letter for Election/Selection: When a new Member of the
Exchange is elected/selected, intimation of his election/selection may be sent to him by the Exchange.
ii. Certificate of Admission to Membership of the Exchange: On due payment of requisite fees, subscription, deposits including the initial EMD and such other amounts and requirement as may be prescribed in the General Terms and Conditions of the Exchange and by the Board from time to time and on compliance with all the requirements necessary before commencement of trading and/or clearing & settlement activity, a Certificate of Membership, under the common Seal of the Exchange and signed in such manner as the Board may decide from time to time, may be issued to the newly admitted member.
If any such Certificate be lost, destroyed, defaced or worn out, the Board or the Committee appointed and empowered for the purpose may issue a new Certificate provided, however, that such Certificate shall not be granted except upon the return of the worn out or defaced Certificate to the Exchange or upon proof of destruction or loss of the original Certificate and on such indemnity and at such fee as the Board or the relevant authority may require before the issue of any such Duplicate Certificate.
iii. Certificate of Membership of the Exchange may be issued to the new member in the form prescribed in these general terms and conditions or in such other form as the Governing Board may, from time to time, prescribe together with the intimation of the date from which he shall enjoy the rights and privileges and be subject to all the duties, liabilities and obligations of a Member of the Exchange.
2.6 REGISTER OF MEMBERS:
a. The Exchange shall maintain a register and index of Members of the Exchange. In the register of Members of the Exchange, the style, constitution and such other information as may be considered appropriate by the relevant authority may be collected and recorded for the use of the Exchange. In case of any change in these records, the members shall be liable to intimate the Exchange and take permission prior to carrying out such changes. Further all other details of the Members of the Exchange may be stored on the system in electronic form apart from the hard copies of the details as provided by the Members of the Exchange along with the application form, which shall be stored appropriately.
b. Every Member of the Exchange shall promptly notify the Exchange in writing about any change in the information provided by the Member of the Exchange at the time of admission or at a later stage to the Exchange. The Exchange shall indicate the changes in respect of which the Member of the Exchange should take prior approval from the Exchange. In case the Member fails to do so, then the Exchange shall charge penalty and/or take further disciplinary action as may be required.
a. Every Member of the Exchange shall pay the subscription, fee, deposit or any other charges as may be fixed by the Board, from time to time.
b. If any Member of the Exchange fails or neglects to pay subscription, fee, deposit or any other levies as required by the Board for a continuous period of six (6) months, the Board may declare such Member of the Exchange as a defaulter within the meaning of these Rules.
c. Provided that such defaulting Member of the Exchange shall be at liberty to apply for re-admission as a member of the Exchange by complying with the provisions of these Rules as applicable to re-admission of defaulters.
2.8 AUTHORISED REPRESENTATIVES
a. Appointment of authorized representatives
- Any Member of the Exchange shall be entitled to be represented in respect of his or its business by an authorized representative.
- A Member of the Exchange desirous of appointing authorized representative(s) shall apply for the permission of the Board in such form as the Board may from time to time prescribe. The Board shall frame, from time to time, Rules and Regulations for the appointment, operations and cessation of authorized representatives.
b. Appointment of Approved Users
i. A member of the Exchange carrying on business on the Exchange shall be entitled to appoint persons who are in his own exclusive employment or are his sub- brokers as approved users with the permission of the Exchange for operating the Petex trader work stations connected with the automated trading system of the Exchange and entering orders in such system/segment on behalf of such member/trading member.
ii. A Member of the Exchange desirous of appointing approved users shall apply for the permission of the Board in such form as the Board may from time to time prescribe. The Board shall frame, from time to time, Rules and Regulations for the appointment, operations and cessation of approved users.
iii. Each Approved User shall be given a unique identification number through which he/she shall have access to the Trading System
2.9. NUMBER OF PetEx TRADER WORKSTATIONS
The Governing Board shall determine from time to time the number of PetEx Trader Workstations that may be provided to a member of the Exchange and the number of approved users a member of the Exchange shall be entitled to employ.
2.10. CONSTITUTED ATTORNEYS
Power to appoint attorneys as good as Authorised Representatives
i. A Member of the Exchange may give a power of attorney to any person to carry on or supervise his business in the Exchange or to clear and sign contracts, reports and statements on his behalf in respect of transactions in the Exchange; provided the person so appointed is at least twenty-one years of age, is in all other respects eligible for election as a Member of the Exchange and his appointment is previously approved by the Board.
ii. Any power of attorney granted by the Member of the Exchange or any change thereof may be intimated by the Exchange by posting a notice of the fact on the notice board of the Exchange.
iii. A register of constituted attorneys shall be maintained by the Exchange in which shall be entered the names of the constituted attorneys and the names of the appointing Members of the Exchange and any changes thereof, together with the dates on which the authority is granted and/or rescinded, which shall be open for inspection by the Members of the Exchange.
iv. Nothing contained in these presents shall absolve the Member of the Exchange granting the power of attorney from responsibility for the acts or omissions of his attorney.
v. No person shall be entitled to admission to the offices of the Exchange or offices of the Exchange by reason only that he holds a power of attorney from a Member of the Exchange.
2.11. TERMINATION OF MEMBERSHIP
a. Loss of membership
i. Any Member of the Exchange shall cease to be a Member of the Exchange:
iii.By death; or
iv.By dissolution; or
v. By expulsion in accordance with the General Terms and Conditions and also the provisions herein contained; or
b. By being declared as a defaulter in accordance with these presents, the General Terms and Conditions; or
i. he is adjudged bankrupt or a receiving order in bankruptcy is made against him or he is proved to be insolvent;
ii.he is convicted of an act involving moral turpitude;
iv.he is declared as lunatic;
v. Being a company/body corporate, it ceases to maintain or have the characteristics of eligibility under the provisions of the Rules and Articles of the Exchange or is wound up.
c. he is declared as bankrupt/insolvent
d. Notwithstanding anything contained in any other provisions of the Articles, General Terms and Conditions of the Exchange, the expulsion of Members of the Exchange from the membership of the Exchange, whether bodies corporate, partnerships, individuals or such other persons as are admitted as Member of the Exchange, shall be final and conclusive.
2.12. VALIDITY, SURRENDER AND TRANSFER OF MEMBERSHIP
2.12.1. Validity of Membership
188.8.131.52. The Membership granted to the Member by PetEx shall be valid for such period as may be prescribed by Relevant Authority from time to time, unless suspended or terminated earlier in accordance relevant provisions of General Terms and Conditions.
184.108.40.206. The Relevant Authority may prescribe from time to time, different periodicity of validity of Membership for different categories and shall be entitled to change, alter and/or modify the validity of Membership prescribed earlier at its absolute discretion. The decision of the Relevant Authority shall be final and binding on all the Members
220.127.116.11. The Relevant authority may from time to time, add, relax or modify the validity of Membership of any particular Member, if it deems fit.
18.104.22.168. The Relevant Authority may allow renewal of any category of Membership on such terms and conditions as deem fit by the Relevant Authority from time to time.
2.12.2. Surrender of Membership
22.214.171.124. The Membership granted to any Member by PetEx shall be entitled for surrender of such Membership on such terms and conditions as may be prescribed by Relevant Authority from time to time.
126.96.36.199. The Relevant Authority may prescribe from time to time the process and procedure for Surrender of Membership as deem fit by Relevant Authority.
188.8.131.52. The Relevant Authority may allow surrender of Membership only after giving due consideration more particularly of any dues pending against the surrendering member and/or any claims made or pending against the surrendering member or disciplinary proceeding pending, prior to allowing surrendering of Membership.
184.108.40.206. The Relevant Authority shall allow any monies/amounts/refundable security deposits/Refundable Fees, if any, lying to the credit of the surrendering Member to be returned or withdrawn after adjusting any dues/penalties of such Member or after giving due consideration to any claims pending against such Member made or initiated by any other Members.
220.127.116.11. The Relevant Authority shall be entitled to withhold any monies/amounts/refundable security deposits or Fees due to the Member, till such time the dues, penalties and claims against the surrendering Member are cleared or settled by such Member or till such time as deem fit by Relevant Authority from time to time.
18.104.22.168. The Relevant Authority shall be entitled to withhold any monies/amounts/refundable security deposits or Fees due to the Member including surrendering Member upon receipt of any order, Circular, direction, guideline or mandate from the Court of Law, Statutory, Regulatory or Law Enforcement Authority till such time as may be directed by such Court of Law, Statutory, Regulatory or Law Enforcement Authority from time to time.
22.214.171.124. The Relevant Authority shall cause the monies/amounts/refundable security deposits or fees of any Member including any surrendering Member, to be deposited with the Court of Law, Statutory, Regulatory or Law Enforcement Authority, in case any order, Circular, direction, guideline or mandate is received by PetEx from such Court of Law, Statutory, Regulatory or Law Enforcement Authority.
2.12.3. Transfer of Membership
126.96.36.199. The Membership granted by PetEx to any Member shall be non-transferable. However, the Relevant Authority shall be entitled to decide on transfer of any type of Membership upon request received in writing from such Member upon such terms and conditions as deemed fit by relevant authority from time to time.
188.8.131.52 The decision of the Relevant Authority regarding transfer of Membership shall be final and binding on the Member.