“I AVOID DABBA TRADING IN COMMODITY FUTURES” - MCX

“I AVOID DABBA TRADINGIN COMMODITY FUTURES”Dabba (off-exchange) trading is bothrisky and illegal.Dabba trading or trading incommodity futures outside theFMC-regulated exchanges is illegalas per the Forward ContractsRegulation Act (FCRA), 1952.Dabba trading is also risky as it doesnot provide protection againstcounterparty default risk asguaranteed by commodity futuresexchanges for trades done onthem.I insist on and verify records of all my commodity futurestrades.I insist on keeping all the records (contract notes etc.)related to my trades.I also verify the authenticity of these records with thedetailed information available on the exchange websiteupto 5 working days from the day of trade.A dispute in Dabba trading cannot be redressed by thecommodity exchange.Dispute arising in Dabba trading can only be referred topolice.However, disputes arising in trades done on commodityfutures exchanges can be redressed, including througharbitration,as provided by the exchange bylaws andregulations.Trade Safe; Trade Peacefully.Trade Only on Commodity ExchangesIssued in public interest by:Ministry of Consumer Affairs, Food and Public DistributionDepartment of Consumer Affairs, Government of India,Krishi Bhawan, New Delhi-110 001,Website: www.fcamin.nic.inIf you notice any illegal futures market activity, please report to:Forward Markets Commission, Everest, 3rd Floor, 100, Marine Drive, Mumbai 400 002,Tel: 022-227 953 00, Fax: 022-2281 2086, Email: contact.fmc@nic.in

THERE ARE NO GUARANTEEDRETURNS ON COMMODITYFUTURES MARKET INVESTMENT.Risk is an integral part of investment in commodity markets, and returns from this marketcannot be assured.Beware of all promotional and sales advertisements/literatures/talks that promiseguaranteed and high returns on your investment in commodity futures markets.Knowledge of physical markets of the commodities that you invest in is essential to makeinformed decision.Do not believe in price tips and rumours. Do your own homework to trade in themsuccessfully.Issued in public interest by:Ministry of Consumer Affairs, Food and Public DistributionDepartment of Consumer Affairs, Government of India,Krishi Bhawan, New Delhi-110 001,Website: www.fcamin.nic.inIf you notice any misleading sales promotion activity regarding commodity futures, please report to:Forward Markets Commission, Everest, 3rd Floor, 100, Marine Drive, Mumbai 400 002,Tel: 022-227 953 00, Fax: 022-2281 2086, Email: contact.fmc@nic.in

“I TRADE ONLY ON RECOGNISEDCOMMODITY FUTURESEXCHANGES”• I know how to protect my investmentI trade only on regulated CommodityFutures Exchanges. Trading outsideRecognised Exchanges (Dabba trading)is illegal and has the risk of losing myinvestment (margin money)• Trading in Recognised CommodityFutures Exchanges is transparent and itgives everybody equal accessBeing regulated, Commodity Futures Exchanges provideequal access to all subject to common entry norms• Trading on Recognised Commodity Exchanges gives mepeace of mind about fair tradingRegulated Commodity Exchanges guarantee quality,quantity, price, settlement, etc, as per contract terms• The Commodity Futures Exchange protects my interestsin case of a disputeThe Commodity Futures Exchange ensures issue of acontract note as a proof of order execution with alltrade details, which enables me to seek redressal forany grievance/dispute. Trading outside an exchange isillegal and cannot provide legal remedies/redress mygrievancesTrade Safe; Trade Peacefully.Trade Only on Commodity ExchangesIssued in public interest by:Ministry of Consumer Affairs, Food and Public DistributionDepartment of Consumer Affairs, Government of India,Krishi Bhawan, New Delhi-110 001,Website: www.fcamin.nic.inIf you notice any illegal futures market activity, please report to:Forward Markets Commission, Everest, 3rd Floor, 100, Marine Drive, Mumbai 400 002,Tel: 022-227 953 00, Fax: 022-2281 2086, Email: contact.fmc@nic.in

Trade in CommodityFutures without fearof fraud.Know Your Rights...Insist on a contract note for trades executedApproach the Exchange or the ForwardMarkets Commission (FMC) for redressal ofyour grievancesEnsure that trading in your account isconducted only on your specific instructionsand without unreasonable delayInsist on periodical statement of ledgeraccountsConduct transactions only through chequeTrade Safe; Understand Your Rights.Trade Only on Commodity ExchangesIssued in public interest by:Ministry of Consumer Affairs, Food and Public DistributionDepartment of Consumer Affairs, Government of India,Krishi Bhawan, New Delhi-110 001,Website: www.fcamin.nic.inIf you have any grievance about futures trade in commodities, please report to:Forward Markets Commission, Everest, 3rd Floor, 100, Marine Drive, Mumbai 400 002,Tel: 022-227 953 00, Fax: 022-2281 2086, Email: contact.fmc@nic.in

“I TAKE MY OWNINVESTMENTDECISIONS”• I do my own research on commodities and take my owndecisions while investingBesides supply and demand fundamentals, interestrates, exchange rates and govt. policy too drivescommodity prices. I seek information on these pricemovingfactors from reliable independent sourcesbefore taking my trading decisions• I don’t get lured by false promises of assured returnsReturns can never be guaranteed in the commodityfutures market.• I don’t avail of portfolio management services (PMS)PMS services in commodities are not permitted byForward Markets Commission (FMC) the regulator forthe commodity futures market and is illegal• It’s my money; I manage it myselfI do not invest in commodities that I do not understand.I know that investing in commodities is different frominvesting in securities or other instruments. Withoutknowledge of fundamental factors, I do not risk myhard-earned money.Don’t Fall Prey to UnsolicitedTips and Lures whileTrading in Commodity FuturesIssued in public interest by:Ministry of Consumer Affairs, Food and Public DistributionDepartment of Consumer Affairs, Government of India,Krishi Bhawan, New Delhi-110 001,Website: www.fcamin.nic.inIf anyone approaches you for PMS in commodity futures, please report to:Forward Markets Commission, Everest, 3rd Floor, 100, Marine Drive, Mumbai 400 002,Tel: 022-227 953 00, Fax: 022-2281 2086, Email: contact.fmc@nic.in

“I AM ANIDEAL COMMODITYFUTURES MARKET TRADER”• I trade only on recognised commodity futuresexchangesI know that trading outside an exchange platform isillegal• I trade through brokers/members registered with theForward Markets Commission (FMC). List of suchbrokers is available on the exchange websites.I verify my broker's credentials• I don't get lured by promises of assured returnsbefore tradingI do my own research on commodities beforetradingI study the contract specifications and the deliveryand settlement procedure before trading• I keep verified records of all market transactionsI insist on contract notes, receipts and accountstatements from my broker. Verify them with theinformation available on the Exchange website• I always pay by cheque from my designated accountI pay the broker by cheque (including margins), inhis name, insist on receipts and keep these carefullyand understand that I am entitled to receive fundswithin 48 hours of Exchange’s pay-out• I trade within my investment and risk taking capacityI know my ability to take risks and avoid overtradingdespite lure of making huge profitUnderstand Rules & Risks of Commodity Futures Tradingand Then Trade on ExchangesIssued in public interest by:Ministry of Consumer Affairs, Food and Public DistributionDepartment of Consumer Affairs, Government of India,Krishi Bhawan, New Delhi-110 001,Website: www.fcamin.nic.inIf you have any grievance agaisnt brokers or Exchanges, please report to:Forward Markets Commission, Everest, 3rd Floor, 100, Marine Drive, Mumbai 400 002,Tel: 022-227 953 00, Fax: 022-2281 2086, Email: contact.fmc@nic.in