POLICY ON ANTI MONEY LAUNDERING AND KNOW YOUR CUSTOMER GUIDELINE
PMLA (ANTI MONEY LAUNDERING) POLICY :
M/S. P. SURYAKANT SHARE & STOCK BROKER PRIVATE LIMITED (hereinafter referred to as P.SURYAKANT) has adopted written procedures to implement the anti money laundering provisions as envisaged under the Anti Money Laundering Act, 2002.
The Prevention of Money Laundering Act, 2002 (PMLA) was passed by Indian Parliament in the year 2002 and has been brought into force with effect from 1st July, 2005. Necessary Notifications / Rules under the said Act have been published in the Gazette of India on 1st July 2005 by the Department of Revenue, Ministry of Finance, and Government of India .
Pursuant to the recommendation made by the Financial Action Task Force (FATF) on Anti Money Laundering standards, SEBI had issue the guidelines on Anti Money Laundering standards vide their notification no. ISD/CIR/RR/AML/1/6 dated 18th January 2006 to all securities market intermediaries registered under section 12 of the SEBI Act, 1992 . SEBI has also issued a Master circular dated 19th December 2008, which consolidates all the requirements/obligations issued with regard to AML/CFT till December 15, 2008
Applicability of PMLA Act :
1. Banking company
2. Financial institution
3. Intermediary (which includes a stock broker ,DP, sub-broker, share transfer agent, portfolio manager, other intermediaries associated with securities market and registered under section 12 of the SEBI Act,1992) shall have to maintain a record of all the transactions; the nature and value of which has been prescribed in the Rules under the PMLA. Such transactions include:
4. All cash transactions > Rs 10 lacs or its equivalent in foreign currency.
5. All integrally connected series of cash transactions < Rs 10 lacs or its equivalent in foreign currency within one calendar month.
6. All suspicious transactions ( refer Annexure 1) “Suspicious Transaction means a transaction whether or not made in cash which, to a person acting in good faith:’’
The main objectives of the PMLA are as follows:
1. To have a proper Customer Due Diligence (CDD) process before registering clients.
2. To monitor / maintain records of all cash transactions of the value of more than Rs.10 lacs.
3. To maintain records of all series of integrally connected cash transactions within one calendar month.
4. To monitor and report suspicious transactions.
5. To discourage and identify money laundering or terrorist financing activities.
6. To take adequate and appropriate measures to follow the spirit of the PMLA
APPOINTMENT OF PRINCIPAL OFFICER & DESIGNATED DIRECTOR
As required by the Prevention of Money Laundering Act, 2002 Shraddha Parikh is appointed as the Principal Officer and the same has been intimated to the Financial Intelligence Unit-India
• The Principal Officer have timely access to customer identification data and other CDD information, transaction records and other relevant information. The Principal Officer also have access to and be able to report to senior management above his next reporting level or the board of directors. Designated Director:
As required by the Prevention of Money Laundering Act, 2002 the Designated Director of P.SURYAKANT is Shraddha Parikh. • “In terms of Section 13 (2) of the PML Act (as amended by the Prevention of Money-laundering (Amendment) Act, 2012), the Director, FIU-IND can take appropriate action, including levying monetary penalty, on the Designated Director for failure of the intermediary to comply with any of its AMUCFT obligations. ” • “the Principal Officer of a reporting entity shall furnish the information in respect of transactions referred to in clauses (A), (B), (BA), (C) and (E) of sub-rule (1) of rule 3 every month to the Director by the 15th day of the succeeding month.”
What is Anti Money Laundering? :
DEFINATION OF MONEY LAUNDERING:
Pursuant to Section 3 of PMLA 2002 “offence of money laundering” can be defined as under:
“Whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime and projecting it is untainted properly shall be guilty of offence of money laundering”.
Money Laundering can be defined as engaging in financial transaction that involve income derived from criminal activities, transaction designated to conceal the true origin of criminally derived proceeds and appears to have been received through legitimate sources/funds. Money Laundering is a process of making dirty money look clean.
Although money laundering is a complex process, it generally follows three stages:
• Placement is the initial stage in which money from criminal activities is placed in financial institutions. One of the most common methods of placement is structuring—breaking up currency transactions into portions that fall below the reporting threshold for the specific purpose of avoiding reporting or recordkeeping requirements.
• Layering is the process of conducting a complex series of financial transactions, with the purpose of hiding the origin of money from criminal activity and hindering any attempt to trace the funds. This stage can consist of multiple securities trades, purchases of financial products such as life insurance or annuities, cash transfers, currency exchanges, or purchases of legitimate businesses.
• Integration is the final stage in the re-injection of the laundered proceeds back into the economy in such a way that they re-enter the financial system as normal business funds. Banks and financial intermediaries are vulnerable from the Money Laundering point of view since criminal proceeds can enter banks in the form of large cash deposits.
Anti Money Laundering —KYC Standards The objective of the KYC guidelines is to prevent P.SURYAKANT from being used, intentionally or unintentionally, by criminal elements for money laundering activities. KYC procedures enable P.SURYAKANT to know/understand their customers and their financial dealings better which in turn help them manage their risks prudently.
A customer for the purpose of KYC Policy is defined as: “A person or entity that maintains an account and/or has a business relationship with the Stock Broker and DP One on whose behalf the account is maintained (i.e., the beneficial owner) Any person or entity connected with a trading transaction which can pose significant reputational or other risks to the Stock Broker & DP, say, a circular trading, off market transactions, ’’
Pursuant to section 2(1)(fa) “beneficial owner” means an individual who ultimately owns or controls a client of a reporting entity or the person on whose behalf a transaction is being conducted and includes a person who exercises ultimate effective control over a juridical person”
The KYC policy of P.SURYAKANT incorporates the following four elements:
i. Customer Acceptance Policy (CAP)
ii. Customer Identification Procedures (CIP)
iii. Monitoring of Transactions
iv. Risk Management
I ) Customer Acceptance Policy (CAP):
a) The following Customer Acceptance Policy indicating the criteria for acceptance of customers shall be followed.
The Member shall accept customer strictly in accordance with the said policy and policy and independent verification of each client must be done:
i. No account shall be opened in anonymous or fictitious/benami name(s)
ii. Factors of risk perception of the client are clearly defined in terms of the nature of business activity, location of customer and his clients, mode of payments,
volume of turnover, social and financial status etc., to enable categorization of customers into low, medium and high risk called Level I, Level II and Level Ill respectively; Customers requiring very high level of monitoring e.g., Politically Exposed Persons (PEPs) may be categorized as Level IV.
iii. The documents and other information are collected from the customer depending on perceived risk and keeping in mind the requirements of AML Act, 2002 and guidelines issued by SEBI/Exchange from time to time.
iv. The existing account are closed or new account’s are not opened where it becomes unable to apply appropriate customer due diligence measures i.e., it becomes unable to verify the identity and/or obtain documents required as per the risk categorization due to non cooperation of the customer or non
reliability of data/information furnished . P.SURYAKANT, however, ensure that these measures do not lead to the harassment of the customer. Further, the customer are given a at least 30 days prior notice with reasons mentioned for closure of his account.
v. Necessary checks are done before opening a new account so as to ensure that the identity of the customer does not match with any person with known criminal background or with banned entities such as individual terrorists or terrorist organizations, etc. P.SURYAKANT exercises caution against any
transaction detected with entities referring to lists of terrorist entities notified by the Government of India circulated by RBI/SEBI/Exchange from time to time.
a) Invariably consulting is done that such list are not in any way involved in any unlawful activity and that they do not appear in such lists.
b) A profile for each new customer is prepared based on risk categorization. The nature and extent of due diligence depend’s on the risk perceived. The KYC Staff continue’s to follow strictly the instructions regarding secrecy of customer information. KYC Staff also bear’s in mind that the adoption of
customer acceptance policy and its implementation does not become too restrictive and should not result in denial of broking services to general public, especially to those, who are financially or socially disadvantaged.M
c) The risk to the customer shall be assigned on the following basis:
Low Risk ( Level I) ):
• Customers who pose low or nil
risk to P.SURYAKANT may be categorized as Low risk.
• Individuals (other than High
Net Worth) and entities whose identities and sources of wealth can be easily
identified and transactions in whose accounts by and large conform to the
known profile may be categorized as low risk.
• The illustrative examples of
low risk customers could be salaried employees whose salary structures are
well defined, people belonging to lower economic strata of the society whose
accounts show small balances and low turnover, Government Departments and
Government owned companies, regulators and statutory bodies etc. In such
cases, only the basic requirements of verifying the identity and location of
the customer shall be met.
Medium Risk ( Level II) ):
• Customers which are likely to
pose a pose a higher than average risk ie medium
risk to P.SURYAKANT may be categorized as medium risk.
They can be the following:
a) Persons in business/industry
or trading activity where the area of his residence or place of business has
a scope or history of unlawful trading/business activity.
b) Where the client
profile of the person/s opening the account, according to the perception of
the Member is uncertain and/or doubtful/dubious.
High Risk (Level Ill):
• Customers which are
likely to pose high risk to P.SURYAKANT may be categorized as High risk
• Enhanced due diligence
measures based on the risk assessment thereby requiring intensive 'due
diligence' for higher risk customers, especially those for whom the sources
of funds are not clear.
Very High Risk ( Level IV)
The persons requiring very
high level of monitoring by P.SURYAKANT are categorized as Level IV.
• They can be the
(a) Clients who have
defaulted in the past
(b)Clients who have a
(c) HNIs whose identity
and source of wealth are difficult to identify
(d) Politically exposed
(e) Clients of Special
(f) Dormant Account
Clients of Special Category:
Such clients include the following
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) of foreign origin.
f. Current / Former Head of State, Current or Former Senior High profile politicians and connected persons (immediate family, Close advisors and companies in which such individuals have interest or significant influence).
g. Companies offering foreign exchange offerings
h. Clients in high risk countries (where existence / effectiveness of money laundering controls is suspect, where there is unusual banking secrecy, Countries active in narcotics production, Countries where corruption
(as per Transparency International Corruption Perception Index) is highly prevalent, Countries against which government sanctions are applied, Countries reputed to be any of the following — Havens / sponsors of international
terrorism, offshore financial centers, tax havens, countries where fraud is highly prevalent.
i. Non face to face clients.
j. Clients with dubious reputation as per public information available etc. “This is cumulative list and P.SURYAKANT along with senior official exercise independent judgment to ascertain whether new clients should be classified as CSC or not.”
Periodicity of updating of documents taken during the dient due diligence (CDD) process :
Documents taken during the CDD Process are updated as follows.
of change in details only ,Documents are updated on
annual basis other wise oral confirmation from
client regarding no change are obtained.
Clients Documents are updated at the time of reactivation
“Inactive client means client having no transaction since last 2 years” Reliance on third party for carrying out Client Due Diligence (CDD)
Pursuant to Rule 9 (2) of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 Rules and in accordance with the regulations and circulars/ guidelines issued by SEBI from time to time and Provided that third party shall be regulated, supervised or monitored for, and have measures in place for compliance with CDD and record-keeping requirements in line with the obligations under the PML Act.
P.SURYAKANT may rely on a third party for the purpose of:
(a) Identification and verification of the identity of a client.
(b) Determination of whether the client is acting on behalf of a beneficial owner, identification of the beneficial owner and verification of the identity of the beneficial owner.
II. Customer Identification Procedure (CIP) “Customer identification means identifying the person and verifying his/her identity by using reliable, independent source documents, data or information”
a) P.SURYAKANT needs to obtain sufficient information necessary to establish, to its satisfaction, the identity of each new customer, whether regular or occasional, and the purpose of the intended nature of relationship. P.SURYAKANT must also be able to satisfy the regulators that due diligence was observed based on the risk profile of the customer in compliance with the extant guidelines in place.
b) P.SURYAKANT have in place a comprehensive Customer Identification Procedure which details the various documents that P.SURYAKANT can take as Identity, Address proof for various types of customers (refer Annexure 2) This Customer Identification Procedure document are updated with approvals from Compliance, and Business groups, with subsequent ratification by the Board of Directors. KYC/AML Policy However,
merely obtaining identification documents for identity, address and signature proof from the customer does not mean that the KYC is complete. KYC means actually knowing the customer, nature of his business and the purposes for which P.SURYAKANT account will be used.
c) P.SURYAKANT may ask for periodical updation of customer identification and other data after the account is opened SEBI Vide its circular no. CIR/MIRSD/2/2013 dated January 24, 2013 has provided guidelines for identification of Beneficial Ownership
A ) FOR CLIENTS OTHER THAN INDIVIDUALS OR TRUSTS: I.e. Company, partnership or unincorporated association/body of individuals
In this type of category, Member should identify beneficial ownership and verify the identity of such person through following information.
1. Identification of Natural persons who has a controlling ownership interest. a. In Case of Company -a Ownership/Entitlement of more than 25% of Shares or Capital or Profits b. In case of Partnership a Ownership/Entitlement of more than 15% of Capital or Profits c. In case of Unincorporated association or body of individual - Ownership/Entitlement of more than 15% of property or Capital or Profits.
2. In case where there exist doubt under above identification point 1,regarding controlling ownership, member shall identify control through means viz. a) Voting Rights b) Agreements c) Arrangements or any other manner.
3. If, No person is identified under above identification Point 1 & 2, the identity of the relevant natural person who holds the position of senior managing official.
B. FOR CLIENT WHICH IS A TRUST:
In case of Trust, Member shall identify beneficial ownership through The identity of settler of Trust The Trustee The Protector The Beneficiaries with 15% or more interest in trust Any other person having ultimate control over trust through chain of control or ownership.
C. EXEMPTION IN CASE OF LISTED COMPANIES:
Where the client or the owner of the controlling interest is a company listed on a stock exchange, or is a majority-owned subsidiary of such a company, it is not necessary to identify and verify the identity of any shareholder or beneficial owner of such companies.
D. APPLICABILITY FOR FOREIGN INVESTORS:
n case of foreign investors' viz., Foreign Institutional Investors, Sub Accounts and Qualified Foreign Investors, may be guided by the clarifications issued vide SEBI circular CIR/MIRSD/11/2012 dated September 5, 2012, for the purpose of identification of beneficial ownership of the client which clarifies that;
A) Though it is not mandatory, the intermediaries shall carry out due diligence as per the PMLA and SEBI Master Circular on AML about the financial position of the Foreign Investors.
B) List of beneficial owners with shareholding or beneficial interest in the client equal to or above 25% to be obtained. If Global Custodian /Local Custodian provide an undertaking to submit these details, then intermediary may take such undertaking only. Any change in the list to be obtained based on risk profile of the client.
III Monitoring of Transactions
(A) Extent of monitoring is in accordance to the risk sensitivity of the account. P.SURYAKANT pays special attention to all complex, unusually large transactions and all unusual patterns which have no apparent economic or visible lawful purpose. Transactions that involve large amount of trading activity inconsistent with the size of the balance maintained may indicate that the funds are being 'washed' through the account. High risk accounts are subjected to intensive monitoring.
(B)No Cash Transaction are allowed. Demand Draft shall be accepted only in exceptional cases and a declaration regarding legitimate income source shall be taken from the client giving payment through Demand Draft. A register detailing date of DD, Client Code, Name, PAN, DD amount and reason for giving DD shall be maintained and reviewed to prevent frequent DD transaction from the particular client.
Further, If prefunded instruments amount is more than or equal to 50,000 per day per client, proofs as required by SEBI are to be taken on record before acceptance of instrument. P.SURYAKANT continue’s to follow strictly the instructions regarding suspicious transactions issued threshold limit of Rs.10 lakh and required to maintain proper record of the same.
(C) The KYC Department shall ensure adherence to the KYC policies and procedures. All staff members shall be provided training on Anti Money Laundering. The focus of training are different for front office staff, back office staff, compliance staff, senior level staff and staff dealing with new customers.
IV. Risk Management
(A) The overall responsibility/implementation and adherence of this KYC/AML policy lies with the Compliance & Surveillance Unit of P.SURYAKANT.
(B) A threshold limits for particular group of accounts prescribed and staff pays particular attention to the transactions which exceed these limits. The threshold limits shall be reviewed annually and changes, if any, conveyed to Staff for monitoring.
(C) The Concurrent / Internal Auditors specifically checks and verifies the application of KYC/AML procedures and comment on the lapses observed in this regard. The reports and compliance in this regard shall also put up before the Audit & Compliance Committee of the Board atleast at quarterly intervals.
Internet Trading Facility :
• After proper customer acceptance & identification procedures for opening of trading account, if client requires IBT/Wireless facility, a written request is taken if he has not opted for said facility through KYC.
• We make sure that such clients are literate and have understood the rights and obligation with regard to Internet/wireless Trading.
Employee Hiring & Training
• All the proposed application for employment are taken only from the person who have valid reference of our existing staff and /or have relations with the present staff and directors.
• It is prudent to also verify education and employment information which uniquely qualifies candidates for the position.
• In addition, it as a strong recommenation that reference checks be completed prior to making the hiring decision.
• Further, if the employee is for the post of dealer, NCFM/BCSM certification are also be verified as a condition of employment.
• Employment verification is been completed within one week of making an offer of employment to any individual.
• Educational and NCFM/BCSM verificationsis been also completed within one week of making an offer of employment to any individual.
• KYC norms / AML standards / CFT measures have been prescribed to ensure that criminals are not allowed to misuse P.SURYAKANT infrastructure. It should therefore, be necessary that adequate screening mechanism is put in place by P.SURYAKANT as an integral part of their recruitment / hiring process of personnel.
After completing all the above procedures and formalities of employee screening, the company appoints the employee with the negotiated terms and I conditions.
Further, Employees are trained with regard to compliance & Operational requirement of broking & DP entities. Also regulatory knowledge w.r.t Depository, Stock Exchange , Money Laundering, etc are also imparted so that compliance & Business risk of Broker & DP are minimized.
• Implementation of KYC procedures requires P.SURYAKANT to demand certain information from the customers that may be of personal in nature or which have hitherto never been called for.
• The front desk staff handles such situations tactfully while dealing with customers and educate the customer of the objectives of the KYC programme as sometimes it leads to a lot of questioning by the customer as to the motive and purpose of collecting such information.
• P.SURYAKANT have a heightened awareness in the system to check for Combating Financing of Terrorism transactions which give rise to a reasonable ground of suspicion that these may involve financing of the activities relating to terrorism.
• As an Educative measure P.SURYAKANT provideds specific literature/pamphlets to educate customers in this regard.
As per Rule 3 of the Rules notified by Notification No. 9/2005 , Intermediary shall maintain a record of, -
A. all cash transactions of the value of more than rupees ten lakhs or its equivalent in foreign currency;
B. all series of cash transactions integrally connected to each other which have been valued below rupees ten lakhs or its equivalent in foreign currency where such series of transactions have taken place within a month;
C. all cash transactions where forged or counterfeit currency notes or bank notes have been used as genuine or where any forgery of a valuable security or a document has taken place facilitating the transactions;
D. all suspicious transactions whether or not made in cash.
• Records evidencing the identity of its clients and beneficial owners as well as account files and business correspondence shall be maintained and preserved for a period of five years after the business relationship between a client and intermediary has ended or the account has been closed, whichever is later.'
• P.SURYAKANT maintain’s and preserve’s the record of documents evidencing the identity of its clients and beneficial owners (e.g., copies or records of official identification documents like passports, identity cards, driving licenses or similar documents) as well as account files and business correspondence for a period of five years after the business relationship between a client and intermechary has ended or the account has been closed, whichever is later."
REVIEW OF POLICY
The aforesaid AML policy is reviewed periodically with regard to testing its adequacy to meet the compliance requirements of PMLA 2002. The Principal Officer is the authority to give directions to undertake additions, changes, modifications etc. as directed by SEBI/ FIU-IND. P.SURYAKANT timely review the policy and the existing policy, is last reviewed on 31 Mar 2016.
Annexure 1 AN INDICATIVE LIST OF SUSPICIOUS ACTIVITIES
• Gives rise to a reasonable ground of suspicion that it may involve the proceeds of crime.
• Appears to be made in circumstances of unusual or unjustified complexity.
• Appears to have no economic rationale or bonafide purpose.
• Gives rise to a reasonable ground of suspicion that it may involve financing of the activities relating to terrorism.
• Identity verification or address details seems difficult or found to be forged / false.
• Asset management services where the source of the funds is not clear or not in keeping with apparent standing /business activity.
• Substantial increases in business without apparent cause.
• Unusual & Unexplained large value of transaction.
• Transfer of large sums of money to or from overseas locations.
• Unusual & Unexplained activity in dormant accounts.
Annexure 2 CUSTOMER IDENTIFICATION PROCEDURE FOR ACCOUNT OPENING
Based on risk perception, type / entity of customer, segment of customer following features shall be verified with supporting documents obtained from the customers –
INSTRUCTIONS/CHECK LIST FOR FILLING KYC FORM A. IMPORTANT POINTS:
1. Self attested copy of PAN card is mandatory for all clients, including Promoters/Partners/Karta/Trustees and whole time directors and persons authorized to deal in securities on behalf of company/firm/others.
2. Copies of all the documents submitted by the applicant should be self-attested and accompanied by originals for verification. In case the original of any document is not produced for verification, then the copies should be properly attested by entities authorized for attesting the documents, as per the below mentioned list.
3. If any proof of identity or address is in a foreign language, then translation into English is required.
4. Name & address of the applicant mentioned on the KYC form, should match with the documentary proof submitted.
5. If correspondence & permanent address are different, then proofs for both have to be submitted.
6. Sole proprietor must make the application in his individual name & capacity.
7. For non-residents and foreign nationals, (allowed to trade subject to RBI and FEMA guidelines), copy of passport/PIO Card/OCI Card and overseas address proof is mandatory.
8. For foreign entities, CIN is optional; and in the absence of DIN no. for the directors, their passport copy should be given.
9. In case of Merchant Navy NRI’s, Mariner’s declaration or certified copy of CDC (Continuous Discharge Certificate) is to be submitted.
10. For opening an account with Depository participant or Mutual Fund, for a minor, photocopy of the School Leaving Certificate/Mark sheet issued by Higher Secondary Board/Passport of Minor/Birth Certificate must be provided.
11. Politically Exposed Persons (PEP) are defined as individuals who are or have been entrusted with prominent public functions in a foreign country, e.g., Heads of States or of Governments, senior politicians, senior Government/judicial/ military officers, senior executives of state owned corporations, important political party officials, etc.
B. Proof of Identity (POI): -
List of documents admissible as Proof of Identity:
1. Unique Identification Number (UID) (Aadhaar)/ Passport/ Voter ID card/ Driving license.
2. PAN card with photograph.
3. Identity card/ document with applicant’s Photo, issued by any of the following: Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities, Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members; and Credit cards/Debit cards issued by Banks.
C. Proof of Address (POA): -
List of documents admissible as Proof of Address: (*Documents having an expiry date should be valid on the date of submission.)
1. Passport/ Voters Identity Card/ Ration Card/ Registered Lease or Sale Agreement of Residence/ Driving License/ Flat Maintenance bill/ Insurance Copy.
2. Utility bills like Telephone Bill (only land line), Electricity bill or Gas bill - Not more than 3 months old.
3. Bank Account Statement/Passbook -- Not more than 3 months old.
4. Self-declaration by High Court and Supreme Court judges, giving the new address in respect of their own accounts.
5. Proof of address issued by any of the following: Bank Managers of Scheduled Commercial Banks/Scheduled Co-Operative Bank/Multinational Foreign Banks/Gazetted Officer/Notary public/Elected representatives to the Legislative Assembly/Parliament/Documents issued by any Govt. or Statutory Authority.
6. Identity card/document with address, issued by any of the following: Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities and Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members.
7. For FII/sub account, Power of Attorney given by FII/sub-account to the Custodians (which are duly notarized and/or apostiled or consularised) that gives the registered address should be taken. 8. The proof of address in the name of the spouse may be accepted.
D. In case of Non-Individuals, additional documents to be obtained from non-individuals, over & above the POI & POA, as mentioned below:
Types of entity
• Copy of the balance sheets for the last 2 financial years (to
be submitted every year).
• Copy of latest share holding pattern including list of all
those holding control, either directly or indirectly, in the company in terms
of SEBI takeover Regulations, duly certified by the company secretary/Whole
time director/MD (to be submitted every year).
• Photograph, POI, POA, PAN and DIN numbers of whole time
directors/two directors in charge of day to day operations.
• Photograph, POI, POA, PAN of individual promoters holding
control - either directly or indirectly.
• Copies of the Memorandum and Articles of
Association and certificate of incorporation.
• Copy of the Board Resolution for
investment in securities market.
Authorised signatories list with specimen
•Copy of the balance sheets for the last 2
financial years (to be submitted every year).
• Certificate of registration (for
registered partnership firms only).
• Copy of partnership deed.
signatories list with specimen signatures.
• Photograph, POI, POA, PAN of Partners.
• PAN of HUF.
• Deed of declaration of HUF/ List of
• Bank pass-book/bank statement in the name
• Photograph, POI, POA, PAN of Karta.
association or a body of individuals
• Proof of Existence/Constitution document.
• Resolution of the managing body &
Power of Attorney granted to transact business on its behalf.
• Authorized signatories list with specimen
• Copy of the constitution/registration or
annual report/balance sheet for the last 2 financial years.
• Authorized signatories list with specimen
Institutional Investors (FII)
• Copy of SEBI registration certificate.
• Authorized signatories list with specimen
Copy of Registration Certificate under
Societies Registration Act.
• List of Managing Committee members.
•Committee resolution for persons authorised to act as authorised
signatories with specimen signatures.
•True copy of Society Rules and Bye Laws
certified by the Chairman/Secretary.
E. Additional documents to be taken in case clients want to open accounts in F&O / Currency segments.
Obtaining financial information from client trading in derivatives segment:
1) P.SURYAKANT shall review and update periodically client information in the Client Registration Form and are also advised to ensure that client registration details including financial details of the clients are obtained and updated at regular intervals.
2) The member shall collect documentary evidence of financial details provided by the clients who opt to deal in the derivative segment at the time of registration and at the time of annual updation. An illustrative list of documents which the members may collect from its clients (towards documentary evidence of financial details) is as below:
a. Copy of ITR Acknowledgement.
b. Copy of Annual Accounts.
c. Copy of Form 16 in case of salary income.
d. Net worth certificate.
e. Salary Slip.
f. Bank account statement for last 6 months.
g. Copy of demat account Holding statement.
h. Any other relevant documents substantiating ownership of assets.
i. Self declaration along with relevant supporting.
AUDIT/TESTING OF ANTI MONEY LAUNDERING PROGRAM :
The Anti Money Laundering (AML) program is subject to periodic audit specifically with regard to testing its adequacy to meet the compliance requirements. The audit/testing be conducted by company’s personnel not involved in framing or implementing the AML program or it may be done by a qualified third party. The report of such an audit/testing would be placed before the senior management for making suitable modifications/improvements in the AML program.
The above policy was reviewed by Shraddha Parikh-Principal Officer and placed before board of meeting on 18th May,2018.
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