Pmla Standards Rajvi Commodities Pvt Ltd

PMLA STANDARDS – RAJVI COMMODITIES PVT LTD.

Objectives

¨  To provide full, fair, accurate, timely and understandable disclosures and to communicate effectively so that full and accurate information to be filed with or submitted to the Exchanges, Forward Market Commission or other regulatory agencies and full adherence to the Compliance with Laws, Rules and Regulations can be achieved;

¨  To conduct business affairs with honesty and integrity and in full compliance with all applicable laws, rules and regulations;

¨  To disseminates information regarding compliance with the laws, rules and regulations that affect our business;

¨  To protect the Confidential proprietary information generated and gathered in our business which plays a vital role in continued growth and ability to compete.

Code:

Rajvi group believes that one of its most valuable asset is its reputation for integrity, professionalism and fairness and it recognizes that all actions are the foundation of its reputation and adhering to this Code and applicable law is imperative. This ICC covers certain Internal Rules and Regulations as also General Information to all those who deals with RCPL.

For Employees and Operators:

ü  Each employee, personnel and director should endeavor to deal fairly with clients, investors, the public and one another at all times and in accordance with ethical business practices. No one should take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair dealing practice.

ü  No personnel will use non-public information to trade in Commodities, or providing a family member, friend or any other person with a “tip”, as the same is illegal. All non-public information should be considered inside information and should never be used for personal gain.

ü  No personnel will execute his / her personal orders / trades in the system prior to the execution of constituents’ orders and will always give priority to the orders of constituents.

ü  No personnel will disseminate the internal information and business secrets for any commercial purpose to the outsiders.

ü  All personnel shall always maintain all proprietary information in strict confidence, except when disclosure is authorized by superior or required by law.

ü  All the personnel having come across the Funds/Commodities of constituents will take due care that the same shall not be improperly used.

ü  All the personnel will try to guide the constituents about the Risk Disclosure Document as specified by the Exchange.

ü  All the personnel will try to disseminate the correct information related to Commodities Market and will try to boost the knowledge of investors.

ü  All the personnel will take due care and precautions to adhere to the requirements of various rules and regulations and all acts such as Companies Act, 1956, SCRA, Prevention of Money Laundering Act, 2002, SEBI Act, Depositories Act, Income Tax Act and all such other acts as may be applicable to the Company, regarding safe keeping and proper maintenance of records and information.

ü  All supervisory personnel will conduct Internal Review of our business, to assist in detecting and preventing violations of and achieving compliance with Rules, Bye Laws and Regulations of the Exchange.

ü  All the personnel will take care for protecting our assets against loss, theft or other misuse. Loss, theft and misuse of the any of the assets, directly impact our profitability. Any suspected loss, misuse or theft should be reported to a manager/supervisor or the Director.

ü  No user / dealer / terminal operator will try to trade in Commodities outside the established trading system of the exchange.

ü  No user / dealer / terminal operator will try to enter order of any constituent at prices of commodity other than a prices disseminated on-line by the Exchange as reference prices.

ü  All the personnel will conduct his / her affairs in true spirit and with utmost benefit to the organizations so as to avoid unnecessary complaints of constituents.

ü  All the personnel will immediately report of any non-compliances, part-compliances or violations of any of the rules and regulations to superior/higher authority

ü  Employees, officers and others are prohibited from taking for themselves, business opportunities that arise through the use of corporate property, information or position.

ANTIMONEY LAUNDERING STANDARDS:

All the employees having the charge assigned to do the work related to client registration, intermediary (i.e. sub-broker / authorised person / Remisier ) registration etc. will take necessary precautions and will do complete due-diligence before registration and will also regularly monitor the transactions, with more emphasis on the following :

Customer Due Diligence / KYC Standards

Initial thrust is on the following points :

a)  Customer Identification & Verification : Client / Intermediary registration to be made after collecting all necessary proofs as well as verifying them.

b)  KYC Norms of SEBI : All guidelines issued by various regulators to be taken utmost care of.

c)  Verification of address & other details : In case of doubt by Client Registration Department, phone calls can be made on the number provided by client for identification of respective person, his details & address including carrying out In-person Verification by staff / employees of Rajvi Commodities Pvt Ltd.

d)  Beneficial Owner of Trading Account: Demat A/c Proofs to be thoroughly verified as well as the name of 1st Holder so as to duly verify that there is no Third Party Transfers / Acceptances.

e)  Genuineness of PAN Details : Invariable checking of PAN details of clients on Income Tax Website before uploading the UCI Details.

f)  Originality of Documents: To ask for original copies of various proofs like Residential Address Proof, Power of Attorney etc. before registration.

g)  Genuineness & Financial Standing of Client : Copy of I.T. returns of the client for last 3 Years to be obtained as necessary proof along with other documents.

h)  Civil or Criminal Background of Client : In case of any doubt/suspicion, refer to the SEBI database, CIBIL database as well as the JPC Report.

i)  Ban on Trading : In case of any doubt/suspicion, refer to the SEBI database, CIBIL database as well as the JPC Report

j)  Introduction of Client : Interviewer of client should be duly filled in at the time of Registration.

k) Additional Monitoring :

(a)  Client / Intermediary registration to be made with details and proof of PAN Card only.

(b)  Immediate monitoring of transactions by dormant client / intermediary to be made.

(c)  Any abnormal dealing by the client / intermediary be detected and reported.

(d)  Immediate reporting of any suspicious transaction to higher authorities.

(e)  Clients / Intermediaries whose identity verification seems difficult or clients appears not to co-operate.

(f)  Clients / Intermediaries whose source of income is not clear or not in keeping with their apparent standing /business activity

(g)  Substantial increases in business without apparent cause by any Client / Intermediary:

We have put our clients in three categories according to their volume / risk and as a preventive steps we have made different policies according to volume raised by the clients.

High Risk Category :

Following are High Risk Category Clients and policies for the same :

Clients in High Risk Category such as Non-Individual Clients, Individual clients whose volume raised or buy / sell any Commodity with value of Rs. 10 Lacs or more in a single day in Commodity Exchange. In such case debited amount cheques are demanded on the same day or credit worthiness of the clients. Further we verify cheques received / given from/to client must be from Bank details given in KYC from.

Further if any client makes continue trading in particular contract with greater volume and try to volatile contract since long. In such case our RMS system / RMS team detect such transaction and go through deeply.

Immediate monitoring has been taken place if heavy volume transaction made in dormant account.

Debit transactions involving an amount of Rs. 5 lacs or more then immediate monitoring has been taken place by our RMS team.

Any client code remains debit with amount of Rs. 50,000 or more for more than 3-4 days then his Client Code gets locked automatically by our RMS system. He is not allowed to make new trade until clearance of his debit. SMS for debited amount is sent to client on regular basis until clearance of debit.

In case of newly registered client, if his volume spurts heavily and/or abnormally or exceeds Rs. 2 Lacs in a day (up to first 10 trades).

Risk Analysis of High Risk Category clients based on past history of its transactions, conduct for meeting-up pay-in obligations and such other criteria as may deem fit by RMS Team.

High Risk Category Client should essentially be instructed to submit last three years I. T. Return copies to verify their financial soundness & we also obtain the same every year. We have very strong RMS system so we detect such High Risk dealing and our RMS team observe the same & if found any suspicious transaction reporting to higher authorities for further reporting.

Medium Risk Category :

Following are Medium Risk Category Clients and policies for the same :

Clients in Medium Risk Category such as Non-Individual Clients, Individual clients whose volume raised or buy / sell any commodity with value of Rs. 2 to10 Lacs to in a single day. In such case debited amount cheques are demanded on the same day or credit worthiness of the clients. Further we verify cheques received / given from/to client must be from Bank details given in KYC from.

Debit transactions involving an amount of Rs. 2 Lacs or more then immediate monitoring has been taken place by our RMS team.

Any client code remains debit with amount of Rs. 25000 or more for more than 3-4 days then his Client Code gets locked automatically by our RMS system. He is not allowed to make new trade until clearance of his debit. SMS for debited amount is sent to client on regular basis until clearance of debit.

In case of newly registered client, if his volume spurts heavily and/or abnormally or exceeds Rs. 1 Lacs in a day (up to first 10 trades).

Medium Risk Category Client should essentially be instructed to submit I. T. Return copies to verify their financial soundness every year. We have very strong RMS system so we detect such Medium Risk dealing and our RMS team observe the same.

Risk Analysis of Medium Risk Category clients based on past history of its transactions, conduct for meeting-up pay-in obligations and such other criteria as may deem fit by RMS Team.

Low Risk Category :

Low Risk Category Client consists apart from above two categories. It consists sleeping account i.e. no transaction or rare transaction since long with low volume.

We do not allow any client to trade in Commodities without sufficient margin.

For Existing Clients processes could include :

a.  Review of KYC details:

Thorough verification of all existing active clients in context to PMLA 2002.

b.  Risk Analysis of clients : based on past history of its transactions, conduct for meeting-up pay-in obligations and such other criteria as may deem fit by RMS Team.

c.  Annual Financial Statements : Clients in High Risk Category such as Non-Individual Clients, should essentially be instructed to submit last two years audit reports, last two I. T. Return copies, Holding of demat statement, Bank statement to verify their financial soundness.

d.  Non-individual Clients :

Following Checklist has to be referred for Non-Individual Clients:

·  Photograph of each authorized Partners /Directors.

·  Photo Identification for each authorized Partners/Directors( Self Certified )

·  Residential Identification for each authorized Partners/Directors( Self Certified )

·  Copy of MOA & AOA/ Partnership Deed.( Certified True Copy )

·  Copy of Board Resolution / Authority letter on Letterhead, duly signed.

·  Copy of Annual Report for last 2 Years ( Certified True Copy )

·  Copy of Income Tax Returns for last 2 Years ( Certified True Copy )

·  Shareholding Pattern/ Sharing Pattern on Letterhead, duly signed

Any of the aforesaid notice, doubts, non-compliances, suspicion, etc. must be notified to immediately to the Principal Officer for further reporting and such other actions as may be statutorily fit and proper

For Clients / Constituents and Intermediaries: The Clients / Intermediaries should generally be aware about the following :

ü  No cash dealings will be undertaken.

ü  No Client Code will be issued without PAN Card and necessary documents for POI and POA.

ü  No dealings will be permitted through un-registered intermediaries.

ü  No business will be transacted with any of the suspended or expelled or defaulting Trading Members.

ü  No business will be undertaken with or for the trading members who are prohibited to transact, including suspended/expelled/ defaulter trading members, defaulting constituents and employees of other trading members.

ü  No off market deals will be executed.

ü  Trades executed for a constituent will not be subsequently transferred to another constituent or for own purposes unless and otherwise permitted by the Exchange in genuine cases.

ü  No third party receipt or payment of funds and / or securities shall be permitted.

Clients of special category (CSC):

a. Non resident clients,

b. High net-worth clients,

c. Trust, Charities, NGOs and organizations receiving donations,

d. Companies having close family shareholdings or beneficial ownership,

e. Politically exposed persons (PEP). - and family members and close relatives of PEP persons

f.Companies offering foreign exchange offerings,

g. Clients in high risk countries

h. Non face to face clients

i.Clients with dubious reputation as per public information available etc.

The above mentioned list is only illustrative and RSPL can exercise independent judgment to ascertain whether new clients should be classified as CSC or not.

MONITORING / IDENTIFYING/ MAINTAINING AND REPORTING OF SUSPICIOUS TRANSACTIONS :

It would be the primary responsibility of the risk management team and Accounts Dept. to monitor and identify any transactions that may be referred to as money laundering or suspicious transaction. Upon immediate notice of the same, head / superior /team leader/ supervisor should be promptly notified.