Capital and commodity market regulator SEBI has directed commodity exchanges to levy a penalty of 1 per cent of value on every trade executed by a member without uploading the unique client code (UCC) details of the client.
Suspension after deadlineFurther, it said if the client details are not uploaded within a month of the trade, the member is liable to be suspended.
Members are directed to furnish and update client code and PAN details to the commodity exchanges on a monthly basis. Such information for a specific month should reach exchange within seven working days of the following month, it said.
The penalty collected by the exchanges should be transferred to the Investor Protection Fund, said SEBI while issuing a new circular consolidating and updating the UCC and mandatory requirement of PAN issued by the erstwhile regulator Forward Markets Commission.
The circular shall come into immediate effect and to supercede all earlier directives, it said.
The commodity exchanges have to maintain a database of client details submitted by members for a period of seven years, said SEBI. They should ensure that members collect copies of PAN card of clients, cross-check the details on Income Tax Department website, upload PAN details as part of UCC and retain the verified copy of the documents.