The Multi Commodity Exchange (MCX) on August 29, 2024, issued the Framework for Supervision of Authorised Persons (APs) & Branches by Members.
The following has been stated:
• The Members shall ensure adequate scanning of social media to identify any mis-selling/ assured returns or unauthorised schemes operated by AP including loan transactions. It is hereby reiterated that Members shall be mandatorily required to report any observed incidents related to assured returns or unauthorised schemes operated by the AP to the Exchange within one working day. On identification of any such case, the Member shall inspect the AP concerned/ investigate the matter and take appropriate actions as required. Members are required to take necessary actions, including withdrawal of approval on disciplinary grounds, withholding funds due to the APs until investor issues are resolved, sending alert messages to investors in the APs location, filing complaints with the relevant police station, and implementing all necessary measures to safeguard the interests of investors and the market. Members are required to maintain and provide documentary evidence of police complaints, press releases, advertisements issued to the market, communication logs of alert messages sent to investors, and other measures taken to safeguard the interest of investors including disciplinary actions taken against the APs.
[Notification No MCX/INSP/572/2024]
