What is the commodity declaration option in the My Profile section on Console?
SEBI, through its circular dated January 04, 2019 , requires all Commodity Exchanges to classify commodity market participants into various categories. MCX, in turn, has sought this information from its broker members. In light of the same, you as a client are required to provide details of the capacity you trade commodities in.
The option to confirm your trader category is available on Console as shown below:
The different trader categories are:
- Farmers/FPOs: It includes participants such as farmers, farmers’ cooperatives, Farmers Producers Organisations (FPOs) and other entities of similar nature.
- Value chain participants (VCPs): It includes participants such as Processors, Commercial users as Dal and Flour Millers, Importers, Exporters, Physical Market Traders, Stockists, Cash & Carry participants, Produces, SMEs/MSMEs & Wholesalers etc., but exclude farmers/FPOs.
- Proprietary traders: It includes the members of stock exchanges trading in their proprietary account.
- Domestic financial institutional investors: It includes participants such as Mutual Funds (MFs), Portfolio Managers, Alternative Investment Funds (AIFs), Banks, Insurance Companies and Pension Funds, etc., which are allowed to trade in commodity derivatives.
- Foreign participants: It includes participants such as Eligible Foreign Entities (EFEs), NRIs, etc. which are allowed to trade in commodity derivatives markets.
- Others: All other participants which cannot be classified in the above categories.
Note: In case you are not actively involved in producing/distribution in any particular commodity, you can choose the ' Others ' option from the drop-down. Please note that you have to individually select the category for each commodity.
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