1. MEMBERS AND CATEGORIES
1.1 PetEx has prescribed the following three categories of Members –
A. Trading cum Clearing Member (TCM) – The TCM membership shall entitle the Members to trade and clear, both for themselves and / or on behalf of their clients and also clear the trades done through other Trading Members.
B. Commodity Participant Member (CP) – CP membership shall entitle the Members to trade on their own account only.
The Commodity Participant Membership is classified in two categories as under –
i. Single Commodity CP Membership – Member can trade in only one single commodity or segment opted for and expressly approved by PetEx.
ii. Multiple Commodity CP Membership – Member is allowed to trade in all the commodities across all the segments
C. Clearing Member (CM) – CM membership shall entitle the Members to only clear the goods / trades on behalf of the trading member or commodity participant.
1.2 Relevant Authority may define and admit any category or categories of Members apart from the Membership categories mentioned at Clause 1.1 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.
1.3 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.
1.4 ADMISSION OF MEMBERS
1.4.1 CRITERIA FOR ADMISSION OF MEMBER –
Following entities are eligible to apply for grant of PetEx e-markets Membership:-
b. Sole proprietors,
c. Limited Liability Partnership (LLP), Partnership Firms,
d. 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. Such other persons / entities as may be permitted by the relevant authority of the PetEx
1.4.2 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.
1.4.3 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 fees as prescribed by demand draft or pay order drawn in favour 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 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.
d) 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.
e) 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.
f) 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.
g) 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.
h) 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. VALIDITY, SURRENDER AND TRANSFER OF MEMBERSHIP
2.1 Validity of Membership
2.1.1. 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.
2.1.2. 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
2.1.3. The Relevant authority may from time to time, add, relax or modify the validity of Membership of any particular Member, if it deems fit.
2.1.4. 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.
2.2 Surrender of Membership
2.2.1. 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.
2.2.2. The Relevant Authority may prescribe from time to time the process and procedure for Surrender of Membership as deem fit by Relevant Authority.
2.2.3. 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.
2.2.4. 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.
2.2.5. 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.
2.2.6. 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.
2.2.7. 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.
2.3 Transfer of Membership
2.3.1. 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..
2.3.2. The decision of the Relevant Authority regarding transfer of Membership shall be final and binding on the Member.
3. TRADING ON PETEX TRADING SYSTEM
3.1. TRADING DAYS –
3.1.1. PetEx shall operate on all days except Sundays, public and trading holidays as Relevant Authority may declare from time to time. Relevant Authority may prescribe trading days or trading holidays for Commodity specific or area specific at its absolute discretion.
3.1.2. Relevant Authority may close the trading on days other than or in addition to scheduled holidays or open the market on days originally declared to be holidays and the decision of Relevant Authority in this matter shall be final and binding.
3.1.3. The Relevant Authority or PetEx may provide for Opening, Normal and Closing sessions or any other sessions of trade as may be deemed necessary and notified.
3.2. TRADING HOURS
3.2.1. Relevant Authority shall announce the normal trading hours in advance from time to time for all and/or for specific commodities.
3.2.2. Relevant Authority may extend or reduce the trading hours by notifying Trading Members as and when it deems fit and necessary or if required under law.
3.3. TRADING PARAMETERS
3.3.1. Relevant Authority shall from time to time specify trading parameters relating to the Trading System.
3.3.2. Relevant Authority shall from time to time specify the lot size, tick size, trading limits, position limits, regulation of price fluctuations etc. in terms of which orders can be placed for transaction in specified commodities.
3.4. TRADE TYPES/SETTLEMENT PERIODS/ TRANSACTION TYPES –
Relevant Authority may permit, notify and prescribe from time to time different trade types, market types and settlement periods that will be permitted to Trading Members or Clients for dealing in commodities.
3.5. FAILURE OF TRADING MEMBER’S TERMINAL –
In the event of failure of Trading Member’s workstation and / or the loss of access to the Trading System, Relevant Authority may at its discretion without being bound to do so, upon a valid request from such Trading Member, undertake on behalf of the Trading Member, necessary functions which the Trading Member is eligible subject to such terms and conditions which Relevant Authority may deem necessary and impose on such Member. The Trading Member shall be liable and accountable for the functions so executed by the Relevant Authority on his behalf and shall indemnify the PetEx against any losses or costs incurred by the Relevant Authority or any claims on the Relevant Authority arising therefrom.
3.6. TRADING IN COMMODITIES
3.6.1. All Commodities permitted for trading on PetEx trading system shall be traded by way of such mode as may be prescribed in the contract specifications and/or special terms and conditions applicable to specific commodities. All trades and transactions shall be subject to terms and conditions stated in the contract specifications and/or special terms and conditions applicable to respective commodity as well as these General Terms and conditions and every person placing an order on the Relevant Authority shall be deemed to have agreed to such contract specifications, General as well as special terms and conditions of the PetEx.
3.6.2. All specifications and terms and conditions of trade for the commodities shall be communicated by PetEx through trading system or circular, direction, notification or any other mode of communication as deem fit by Relevant Authority from time to time.
3.6.3. Trading Members may trade on the Trading System in Commodities that are admitted for dealing on PetEx, either on behalf of their Clients or on their own account unless otherwise specified by PetEx or the Relevant Authority and such trading shall be during the prescribed trading hours and subject to such conditions as the Relevant Authority may prescribe from time to time.
3.6.4. Members may enter orders of quantities as per the prescribed delivery lots. All lots partially matched shall be deliverable while the remainder of the lot may be permitted by Relevant Authority to be put up for trade at such time and in such manner as may be specified and deemed fit.
3.6.5. A Member may enter multiple buy orders or sell orders on behalf of different Clients on the Trading System. The execution of orders would be done by the Trading System on the basis of allocation logic as prescribed in contract specifications or special terms & conditions or on such basis as prescribed by Relevant Authority from time to time.
3.6.6. A Member shall not enter orders such that the Member himself while acting either on his own account or the Client, shall be a seller as well as a buyer in respect of the same sell order or a buy order as the case may be unless specially permitted by Relevant Authority.
3.6.7. Every Trading Member shall segregate trading by him on his own account from that of his Clients and maintain records accordingly.
3.7. PetEx Discretion
3.7.1. The Relevant Authority may at its discretion, in addition to any other measures as it may deem fit, at any time, suspend trading for all or any of the specified commodities as it deems fit under the following circumstances:
a. On account of any direction, notification, circular or any order being passed by Relevant Authority, Regulatory Authority, Judicial authority, any Law enforcement authority authorized to pass any such orders or Central or any State Government suspending trading in specified commodities.
b. There is law and order problem, which in the opinion of the Relevant Authority may, affect the market conditions adversely;
c. For reasons beyond the control of participants it may not be possible in the opinion of the Relevant Authority for the participants to perform the trade contracts;
d. Any other reason or circumstances under which, the Relevant Authority deems, in the interest of Market, to suspend or stop trading in particular Commodity or commodities or the spot market as a whole.
3.7.2. The decision of Relevant Authority in this regard shall be final and binding on all the market participants.
3.7.3. Relevant Authority may, without assigning any reason, at any time restrict a Member conditionally or unconditionally, from dealing in all or any of the commodities.
3.7.4. Relevant Authority may at its own discretion, withdrawn, suspended, terminate or cancel the Membership of any Member, at any point of time, or the Member may be barred from participating in any of the trading activities on PetEx trading platforms under the following circumstances and that the Member shall be bound by the decision taken by Relevant Authority in this regard:
a. Default of Member including default in payment obligations, delivery default or default in submitting margin, security deposit, performance guarantee or any other default in fulfilling trade obligations for trades conducted through PetEx trading platform;
b. Non-Payment of Membership Fees, Renewal Fees or any other charges prescribed by Relevant Authority;
c. The conduct of the Member is such as in the opinion of Relevant Authority is detrimental or harmful to trades conducted by PetEx and/or to the market at large;
d. Any dispute or complaint is raised by the Member with PetEx or with any other entities with respect to or anything related to the trades conducted through PetEx trading platform and such dispute is unresolved;
e. Member violating terms and conditions subject to which any commodity has been offered for trading or any violating any provisions of General Terms and Conditions;
f. Any other circumstances as may be deemed fit by Relevant Authority in the interest of the trading activities being conducted on PetEx platforms.
3.8. Liability of Member for Trades Done on the System
3.8.1. The Trading Member shall be liable for all orders placed and/or trades executed on or through his/their trading terminal/system, and shall be responsible and liable for all the actions or omissions of their Approved Users.
3.9. Unique Client Code/Username and Password
3.9.1. The Trading member shall enter Trading Account (TAC) of the client in case the member places orders on behalf of his client or the unique username and password in case trading done on his behalf, in such format and manner as may be specified by Relevant Authority. Every Trading Member shall be responsible to furnish particulars of unique client codes/Client ID of each of his Clients along with full details of the Clients to PetEx in such form, manner, at such intervals and within such time as may be specified by the Relevant Authority from time to time.
3.9.2. No member shall allot the same client code/ID to more than one Clients. The uniqueness of unique client code/Client ID could be verified on basis of PAN Card Number or any other basis as may be prescribed/permitted by the Relevant Authority.
3.9.3. Trading Members shall be solely responsible for the accuracy of details of orders entered into the Trading System.
3.10. Amendment of Trade
Trades generated on the system are irrevocable and ‘locked in’. However, Relevant Authority reserves the right to cancel or permit cancellation of Trades in the circumstances and subject to such terms and conditions as may be deemed appropriate by Relevant Authority.
3.11. Margin Requirements
3.11.1. Relevant Authority shall levy margin and/or additional margins for transacting on the PetEx trading platform based on Special Terms and Condition or the prudent risk management principles and the same shall be binding upon the Trading Members.
3.11.2. Subject to the provisions as contained in these General Terms and Conditions and circulars as may be issued and in force from time to time, every Trading Member shall in respect of trades to which he is a party, deposit the stipulated margin with PetEx, in the manner, within the stipulated time and to the extent specified by Relevant Authority. All margins payable by a Trading Member shall be paid directly to PetEx, unless otherwise directed by Relevant Authority. The procedure for refund/adjustment of margins if any, will be such as may be notified by Relevant Authority from time to time.
3.11.3. Relevant Authority may from time to time or during the trading hours, impose any special or other margin requirements as deem fit.
3.11.4. On failure to deposit margins as required herein, Relevant Authority may withdraw the trading facility of the defaulting Trading Member without prejudice to any other action which Relevant Authority may take under the the General & special Terms and Conditions.
3.11.5. Margins received from Members in respect of trades on the trading system would continue to be under lien of PetEx till successful completion of physical delivery and Settlement or till such time as notified by Relevant Authority in general or on a case to case basis.
3.12. Order Validation
3.12.1. A Trading Member shall be permitted to modify or cancel his orders till such time as specified by Relevant Authority, provided a trade has not already taken place in respect of that order. The modified order shall lose or retain its original time priority as per the trading parameter set by Relevant Authority.
3.12.2. Orders entered into the Trading System by Trading Members shall be subject to various validation requirements as prescribed by Relevant Authority from time to time including trading parameters, and/or other restrictions placed on transactions in general or any commodity in specific. The Trading System will not accept orders that do not meet the validation checks.
3.12.3. The orders entered by members may match on the basis of allocation logic as specified in the contract terms & conditions. In case of continuous market the orders would be matched on price time priority basis and in case of auctions various allocation logics shall be implemented as specified in the contracts terms and conditions. In absence of any specific conditions or directions relating to execution of orders specified in the contract terms and conditions or otherwise, the methodology of execution of orders shall be as decided by Relevant Authority from time to time in this regard.
3.12.4. Relevant Authority shall specify from time to time the kinds of order books that shall be maintained on the system, the order matching algorithms and the matching rules and parameters that shall be followed therein. Relevant Authority may modify or change the matching algorithms relevant to any market or order books any time as it deems fit.
3.12.5. Where, in the opinion of the Relevant Authority, it is in the interests of the market to do so, it may at any time make unavailable any particular order books or forms of matching, in the case of a particular contract of any specified commodity or Trading Member or to the market as a whole.
3.13. Contract Note
3.13.1. Every Trading Member, participating and executing trades on behalf of their clients shall issue under his/its signature a contract note to their respective Clients for trades executed in such format as specified with all relevant details as required therein to be filled in and issued in such manner and within 24 hours of the end of the day of Trade.
3.13.2. The Contract Notes shall be numbered with unique running serial number commencing from one, which shall be reset only at the beginning of every financial year. In case separate series are maintained in respect of different dealing offices of the Trading Member, then the dealing office name or code shall be prefixed to the serial number.
3.13.3. The Contract Note shall be stamped as per applicable Stamp Act of the State, in case stamp duty is payable on the same.
3.14.1. All the orders entered on the Trading System shall be at prices exclusive of brokerage
3.14.2. A member shall indicate brokerage separately to their Clients, in the contract note.
3.15. Relation With The Constituents/Clients
3.15.1. Every Trading Member shall enter into an agreement with each of his Clients in the format prescribed by RELEVANT AUTHORITY, before accepting or placing orders on PETEX trading platform on the Client’s behalf. However the Trading Member’s responsibility shall not in any way be reduced due to non-execution of agreement with the Clients.
3.15.2. When establishing a relationship with a new client, Trading Members must take reasonable steps to assess the background, genuineness, financial soundness of such person and his objectives and keep a record of such details in the Client Registration Form as prescribed by RELEVANT AUTHORITY. The Trading Member shall obtain from all corporate Clients an approved copy of the Board resolution permitting such constituents to trade in commodities.
3.15.3. Trading Member shall make the Clients aware of the precise nature of the Trading Member’s liability for business to be conducted, including any limitations on that liability and the capacity in which the Trading Member acts and the Client’s liability thereon.
3.15.4. The Trading Member shall make the Clients aware of the risk associated if any, with the business on the PetEx platform.
3.15.5. The Trading Member shall provide extracts of relevant provisions governing the rights and obligations of Constituents as Clients of Trading Members as prescribed in the General & Special Terms and Conditions, contract specifications, relevant manuals, notifications, circulars, any additions or amendments thereto etc. of PetEx, or of any regulatory authority, to the extent it governs the relationship between Trading Members and Clients, to the Clients. Trading Member shall also bring to the notice of his Clients, including Participants any indictments, penalties etc. imposed on him by Relevant Authority or any other regulatory authority.
3.15.6. The Trading Members shall buy commodities on behalf of the Clients only on the receipt of prescribed margin if any, as the Relevant Authority may decide from time to time,
3.15.7. Trading Member shall explain the Trading System and order matching process to the Clients before accepting any orders from him.
3.15.8. The Trading Member shall make pay out of funds or delivery of commodities, as the case may be, to the Clients within one (1) working day of receipt of the payout from PetEx or unless specifically or generally permitted otherwise by Relevant Authority.
3.15.9. Trading Member shall at all times keep the funds of the Clients in a separate bank account.
3.15.10. No money shall be paid into clients account other than:
a. money held or received on account of clients;
b. such moneys belonging to the Trading Member as may be necessary for the purpose of opening or maintaining the account;
c. money for replacement of any sum, which may by mistake or accident have been drawn from the account;
d. cheque or draft received by the Trading Member representing in part money belonging to the client and in part money due to the Trading Member.
3.16. Moneys to be withdrawn from “clients account”
3.16.1. No money shall be drawn from clients account other than –
a. money properly required for payment to or on behalf of clients for or towards payment of a debt due to the Trading Member from clients or money drawn on client’s authority, or money in respect of which there is a liability of clients to the Trading Member, provided that money so drawn shall not in any case exceed the total of the money so held for the time being for such client;
b. such money belonging to the Trading Member as may have been paid into the client account as per the above clauses
c. money, which may by mistake or accident have been paid into such account.
3.17. General Principles & Guidelines For Members
3.17.1. Professionalism: A Member in the conduct of his business shall observe high standards of commercial honour of just and equitable principles of trade.
3.17.2. Adherence to Trading Practices: Members shall adhere to the these General Terms and Conditions and special terms and conditions for Sale / Purchase and shall comply with such operational parameters, rulings, notices, guidelines and instructions of the Relevant Authority as may be applicable from time to time.
3.17.3. Honesty and Fairness: In conducting his business activities, a Trading Member shall act honestly and fairly, in the best interests of his Clients.
3.17.4. Capabilities: A Trading Member shall have and employ effectively the resources and procedures, which are needed for the proper performance of his business activities.
3.17.5. A Trading Member shall desist from the following trading practices while conducting business on PetEx.
3.17.6. Misleading Transactions: A Trading Member shall not-
a. make bids and/or offers for commodities with an intention of creating a false or misleading appearance with respect to the market for, or the price of any commodity or;
b. make a transaction or give an order for the purchase or sale of commodities, the execution of which would involve no change of beneficial ownership,
3.17.7. No Trading Member shall buy, sell or deal in Commodities in a fraudulent manner, or indulge in any unfair trade practices including market manipulation.
3.18. Trading Principles
3.18.1. Members shall ensure –
a. that any employee who commits the Members to a transaction has the necessary authority to do so
b. that employees are adequately trained in operating in the relevant market segment in which they deal, are aware of their own, and their organization’s responsibilities as well as the relevant Statutory Acts governing the Trading Member, the General and special Terms and Conditions of PetEx including any additions or amendments thereof.
c. Trading Member shall be responsible for all the actions including trades originating through or with the use of Trading Member Id, User Id and valid User password at that point of time. However if the Trading Member satisfies Relevant Authority that the action(s) and /or trade(s) took place due to fraud or misrepresentation by any other person other than his authorized person(s) or employee/s and that the action(s) and/or trades did not originate from any of his approved workstations, Relevant Authority may, at its absolute discretion, issue such directions as it considers just and reasonable and all parties to such deal shall be bound by such directions of Relevant Authority.
d. When entering into Trades on behalf of Clients, the Trading Members shall ensure that they abide by the Trading Principles and guidelines and the provisions of these General Terms and Conditions and special terms and conditions.
e. No Trading Member or person associated with the Trading Member shall make improper use of Client’s commodities or funds.
f. A Trading Member shall not disclose the name and beneficial identity of a Client to any person except to PetEx, Regulator, , any enquiry or inspection authority as required by law as and when asked for and as may be required by Relevant Authority or any such Regulator, or any enquiry or inspection authority from time to time and to the extent required for the purpose of compliance of settlement obligations.
g. A Member shall not indulge in falsification of his books, accounts and records
h. Notwithstanding anything to the contrary contained in these General Terms and Conditions, Relevant Authority may from time to time extend or postpone the time for performance of contracts for all or any of the specified commodities whenever deemed fit and any such discretion shall be final and binding on all the Members and the Clients.