Dealing with members
             
Do's  

  • Trade only through Registered Trading Members of the Exchange. Check from the Exchange website at http://www.ndex.com.np/member.php to see whether the Member is registered with the Exchange.
  • Insist on filling up a standard 'Know Your Client (KYC)' form before you commence trading
  • Insist on getting a Unique Client Code (UCC) and ensure all your trades are done under the said UCC.
  • Insist on filling up a standard ‘Member-Client Agreement’.
  • Insist on reading and signing a standard 'Risk Disclosure Agreement'.
  • Obtain a copy of your KYC, Member-Client Agreement and/ or other documents executed by you with the Trading Member, from the Member Client.
  • Cross check the genuineness of trades carried out through your account in case of someone (AE) who trade on behalf of you.
  • Ensure that the Contract Specification contains all the relevant information such as Contract Expiry Date, Contract Size, Product Code etc.
  • Obtain receipt for collaterals deposited with the Member towards margins.
  • Go through the Rules, Bye-laws, Regulations, Circulars, Directives, Notifications of the Exchange as well as of the Regulators, Government and other authorities and details of Client-Trading Member Agreement to know your rights and duties vis-à-vis those of the Member.
  • Ask all relevant questions and clear your doubts with your Member before transacting.
  • Insist on Monthly statements of your ledger account and report any discrepancies in the statement to your Trading Member within 7 working days. In case of unsatisfactory response report the discrepancy to the Exchange within 15 working days from the date of cause of action.
  • Pay required margins in time and incase by Cheque ask for receipt thereof from the Trading Member.
  • Understand and comply with accounting standards for derivatives.

Don'ts

  • Do not deal with any unregistered intermediaries.
  • Do not undertake off-market transactions as such transactions are illegal and fall outside the jurisdiction of the Exchange.
  • Do not enter into assured returns arrangement with any Trading Member.
  • Do not get carried away by luring advertisements, rumours, hot tips, explicit/ implicit promise of returns, etc.
  • Do not make payments in cash/ take any cash towards margins and settlement to/ from the Trading Member.
  • Do not start trading before reading and understanding the Risk Disclosure Agreement and entering into the prescribed agreement with the Trading Member.
  • Do not neglect to set out in writing, orders for higher value given over phone.
  • Do not accept unsigned/duplicate contract note/confirmation memo.
  • Do not accept contract note/confirmation memo signed by any unauthorized person.
  • Do not delay payment/deliveries of commodities to Trading Member.
  • Do not forget to take note of risks involved in the investments. 


Dealing in Commodity Futures

Do's

  • Familiarize yourself with all the provisions of Future Trading dealing with futures trading in commodities and amendments thereof from time to time.
  • Understand the provisions and rates relating to the sales tax, value added tax etc., as applicable on the underlying commodity of any contracts offered for trading by NDEX.
  • Read, understand and be updated about the guidelines and circulars of the Exchange issued from time to time and kept on the respective websites.
  • Read the commodity contracts circulars issued & kept on NDEX website and carefully note the contract specifications of the commodity in which you wish to trade. The contract specifications are subject to change from time to time.
  • Before entering into buy and sell transactions please be aware of all the factors that go into the mechanism of pricing, trading, clearing and settlement.
  • Read the product note of the commodity in which you wish to deal to understand the commodity and parameters that impact on the trading and settlement of the commodity.
  • Understand the Delivery & Settlement Procedures given in the Exchange Circular of the commodity kept on the Exchange website that you wish to deal in the futures market.
  • Study historical and seasonal price movements of the commodity that you wish to deal in the futures market.
  • Keep track of Governments' Policy announcements from time to time of the commodity that you wish to deal in the futures market.
  • Apply your own prudent judgment for investments in commodity futures and take informed decisions.
  • Comply with Taxation and other Government issues.
  • Go through all Rules, Bye Laws, Regulations, Circulars and directives issued by NDEX.
  • Since futures trading attract various types of margins, be aware of the risks associated with your positions in the market and margin calls made from time to time.
  • Collect/Pay Mark-to-Market margins Cheque on your futures positions on a daily basis from/to your Trading Member.
  • Be aware of your risk taking ability and fix stop-loss limits. Liquidate your positions at such levels to reduce further losses, if any.
  • In case of any doubt/problems, contact Exchange's Help Desk or email at info@ndex.com.np , compliance@ndex.com.np

 Dont's

  • Do not fall prey to market rumours.
  • Do not go by any explicit/ implicit promise made by analysts/ advisors/ experts/ market intermediary until convinced.
  • Do not take trading decisions based on reports/ predictions made in various print and electronic mediums without proper evaluation.
  • Do not deal based on Bull/Bear run of commodity markets sentiments.
  • Do not trade on any product without knowing the risks associated with it.

Need Assistance?

Please contact
01 - 5199421/5199422