General Compliance Awareness (PDF)

Documents to be Submitted

• Documents to be submitted by Clearing Member
• Documents to be submitted by Clients
• Documents to be submitted by Non-Clearing Member
• Documents to be submitted by Registered User or AE or Broker

Compliance FAQs

Whether institutions are allowed to be an Account Executive (AE)/ Registered User?

No, only individuals are allowed to be an AE/Registered user. An institution can not be an AE/Registered user.

Can one individual be an AE/ Registered User for two or more than two times?

An individual is allowed to have one active AE terminal at a time. It means one person is allowed to use only one active MTWS.

Can already registered AE/Registered User become a client?

Yes, s/he is allowed to register as a client but s/he can not be client under himself/herself (AE).

What should be the minimum age of an applicant to register as an AE/Registered User?

S/he should be at least 21 or above to apply for an AE/ Registered User.

Whether registered user is allowed to trade on behalf of the clients registered under him?

There are 3 rights for the use of TWS of the clients by a registered user:

Full Right: If registered user is given full rights then he can trade on behalf of its client.

View Right: If registered user is given view rights then he can only view the trades of its client and supervise. He can’t place an order for his client.

No Right: Under this, a registered user is not allowed to view as well as trade on behalf of his clients. He shall have no rights.

What are the criteria to become an AE?

S/he should fulfill any one of the below mentioned criteria:

* S/he must be a bachelor’s degree holder.
* S/he must have a trading experience of minimum 6 months from any of the exchanges registered in Madagascar or abroad exchanges.

Can already registered AE transfer his AE code to another person?

No. Once a person is allotted with a particular AE code, he can't transfer that code to some other person.

Can electricity or telephone bills or any utility bills be collected as an address proof for registering as a client?

Yes, it can be collected but such bills should not be of more than three months older.

 

What should be the minimum age of an applicant to register as a client?

S/he should be at least 18 or above to apply as an individual client.

Can any individual having joint bank account apply to register as a client?

Yes, individuals having joint bank account can apply to register as a client, the additional document to be submitted is the letter authorizing one of the client to receive user and trade. There is a different format of Client Registration Form for these types of individuals.

What if a married woman is using her husbands surname while filling Client Registration Form and it doesn't match with the name mentioned in her citizenship card or bank statement?

If this is the case, she needs to provide marriage certificate in order to verify her name with the one mentioned in CRF and Bank records.

What are the other additional documents for a Non-Madagascar applicant to register as a client?

Following are the additional documents to be submitted by a Non- Madagascar applicant:

* Proof of Identity issued by his/her country (citizenship card, registration card, Ration card, Voter's I.D etc)
* Passport of the applicant / client.
* Resident card provided by the embassy in Madagascar. (If any)

Can institutions apply for registering as a client?

Yes, individuals as well as institutions can apply for registering as a client.

Can one individual or institution register itself as a client for two or more than two times?

An individual or institution can have only one active account at a time under any member (NCM). It means one individual or institution is allowed to use only one active TWS, he can't register himself for more than one time.

Can already registered client become a Registered User/ Account Executive (AE)?

Yes, he is allowed to register himself as a Registered User/ AE may it be under the same NCM or different.

What can be done for the person whose one hand is injured and can't provide one of the thumb impressions?

If applicant can't provide any of the thumb print with some reason, he needs to provide a letter mentioning detail of his left/right hand operation and same should be signed by the authorized person of his concerned non-clearing member and also provide the copy of operation papers from the doctor.

What if in the citizenship card of an individual, the date of birth (DOB) mentioned is in-complete?

If the applicant is having ID with incomplete DOB following methods can be used:

* Applicant can provide other supporting documents like: passport, driving license, in which his/her DOB is mentioned.
* If only the year is mentioned in his/her ID, like 2044 BS with no month and date mentioned, then s/he can mention the DOB as 01/01/2044. This is legally defined and if anything is mentioned in passport and other government issued documents then the same should be mentioned.

Can individual holding payroll account (salary account) apply for registering as a client?

Yes, they can apply and it's their responsibility to inform the exchange during the close down of their payroll account.

Can an individual already registered as a client apply for institutional client?

Same person can't register as an individual client and be the authorized person of institutional client also as one person is allowed to use only one TWS.
On the other hand, if already registered individual client is in the director list of the institution but not the authorized person, then it is acceptable, as two different person will be using the TWS.

Can Registered User become client under him/herself?

No, he needs to register as client directly under NCM or any other Registered User. But the same individual could be client as well as registered user.

Are foreigners [residing out of Madagascar] allowed to register as a client or not?

Yes, they are allowed to register as a client. They need to fulfill all the criteria required to be a client.

Can already registered client transfer his client code to another person?

No. Once a person is allotted with a particular client code, he can't transfer his code to some other person. The client code assigned must be used only by that particular client.

How many times a member is required to provide net worth certificate of his company?

Members are required to provide their net worth certificate once in a financial year which should be in the format prescribed by the exchange and in the letter head of the registered auditor.

Are the members required to appoint an Auditor?

Yes, they are required to appoint an Auditor formally and they are also required to have the board minute for the same.

Can a member undertake Portfolio Management Activities?

Yes, anyone involved in portfolio management activities are allowed to become a client as well as a member of the exchange.

Can a member of MEX MADAGASCAR become the member of other exchanges?

After taking the membership of MEX MADAGASCAR, all the members needs to take permission from the Board of Exchange before involving in any business, which is in relation to or connection with the business of the Exchange, with any other person or firm or entity or exchange, or enter into any financial relationship with any other members or clients of the Exchange, or enter into any agreement with any other person or entity in relation to or in connection with the business of the Exchange.

Can multiple client codes be allotted to single client?

In terms of provision of the rules and byelaws of the exchange, the member of the exchange are not allowed to generate more than one client code to the same applicant at the same time. If the client wants to have new client code, s/he needs to close the previous account and apply as a new client.

Are Members allowed to accept cash from their clients?

No, members are not allowed to accept cash from clients for trading purposes. This is totally against AML policy of the exchange.

What is third party transfer and whether it is allowed?

Third party transfer can be defined as any fund transfers or deposits made from the accounts other than the one registered with the exchange for that particular client or member. It also refers to the transfers or deposits made by third person. Third party transfer is not allowed.

What if the third party transfer is made?

Third party transfer is not at all accepted at the exchange level and it's totally against MEX MADAGASCAR AML policy. But sometimes third party transfer happens mistakenly. At that time, the amount transferred needs to be reverted back to the account from where the fund had come.

Who can be the authorized person of a member?

The Board of Directors of the company is allowed to be the authorized person.

Within how many days a member is required to inform about any changes in company related information like phone no. , change in directors, change in share holding pattern, etc?

They are required to inform within 3 days of such changes.

What are the requirements for sending a mail/ letter/request?

All mails/letters/requests addressed to the exchange by members should contain the authorized person's signature, name and full address of the company with telephone number and email address. The exchange shall accept all communications only from the authorized person of the member. Moreover, all mails received by the exchange shall only be from the registered email id of the member. Any mail from the unauthorized email id shall not be entertained.

What are the documents required to be submitted by a member on annual basis?

* Audited financial report
* Board minute of their elected Board members for that year.

In what condition fine/penalties can be levied to members of the exchange?

* Not submitting CRF in time to exchange
* Not complying with inspection requirements
* Not maintaining minimum balance in member deposit account
* Not informing exchange about changes made in NCM/CM i.e. office address, authorized person, directors, share holding pattern, etc
* For any act done by members or clients against the provisions of Bye Laws and rules of exchange.

Can suspended/debarred brokers, sub-brokers and other entities of Capital Market participate in Commodity derivative market?

No, such person can't participate in commodity derivative market.

Are there any guidelines with respect to use of MEX MADAGASCAR logo?

Prior approval from MEX MADAGASCAR is required if any of the member wants to use MEX MADAGASCAR logo.

In what form payment can be received / made by members from/to clients?

All payments can be received/ made by the members from/to the clients strictly by Cheques /demand drafts or by use of online banking, or any other mode allowed by MEX MADAGASCAR and the central bank of Madagascar.

What is the need of inspection?

To make sure that all the rules and regulation formulated and regulated by MEX MADAGASCAR and law of land are being regularly followed and complied by NCM and CM and there is no discrepancy.

How often inspection will be conducted for members of the exchange?

As per the rules and regulation of the exchange, a member will be inspected twice in a year but it may be more than that as per the requirement.

Who can inspect members?

Any member of the inspection team from Compliance department can conduct the inspection at the member's premises under the instruction from the management or as per mentioned in Bye laws and rules of exchange.

What is the reason behind maintaining the back office related documents?

The main reason for maintaining back office related documents at members level is for back up purpose and also in the case of internet crash or power cut or any disputes between member and clients such documents can be viewed in later dates.

What are the statutory documents that are mandatory to be maintained by Members?

1. All Company related documents
2. Documents related to the Company such as:

* Change of any company related documents: Email, Website, Address, Telephone/Fax/ P.O.Box, Tax registration, Authorized person, Shareholding pattern, Company name, Logo change, Seal change, etc.
* Appointment of Auditor
* Information of segregated account in member's notice board/ website
* Details of change of Director

3. Records of all particulars of members who are approved as users by the exchange:
4. Records related to AE (Registered User).
5. Records of payment of all applicable taxes

Can clearing members inspect their respective NCM?

No, only exchange can inspect the non clearing members.

 

Compliance Format

Change of Email, Address, Telephone, Fax, P.O.box
Client Registration Form
Client Registration Form-Joint Account
Covering Letter from NCM for Wrong Deposit in Mdepo & Seg
Format for Addition of Signatory
Format for Change in Commission
Format for Fund Transfer Request
Format for Changing Joint Bank Account into Single Bank Account
Letter from client for Wrong Deposit in Mdepo & Seg
Networth Certificate Form
Narration Change Letter
Profile - Registered User
Withdrawal Form Full N Final
WIthdrawal Form Partial

 

Notification of compliance