Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
NOTIFICATION
New Delhi, the 31st of October, 2018
In exercise of owers conferred under clause (iii) of Explanation to clause (e) of the proviso to sub-section (5) of Section 43 of the I come-tax Act, 1961 (43 of 1961) read with sub-rule (4) of Rule 6000 of the Income-tax Rules, 1962, the Central Government hereby notifies Indian commodity Exchange Limited(PAN:AABCI9479D) as a ‘recognised association’ for the pu pose of said clause with effect from 01.11.2018 subject to fulfilment of following conditions in respect of trading in co modity derivatives, namely;
2.
(i) The Exchange shall have the approval of the Forward Markets Commission established under the Forward c+ tracts (Regulation) Act, 1952 (74 of 1952) (merged with Securities and Exchange Board of India vide Gazette Notification No.S.0.2630(E) dated 24.09.2015) in respect of trading in derivatives and shall function in ccordance with the guidelines or conditions laid down by it; or
(n) It shall osu,e that the pacUeulacs of the client (Including unique client Identity numbe, and PAN) ace duly recorded and stored in its databases; or
(iii) it shall maintain a complete audit trail of all transactions (in respect of derivative market) for a period of atleast sev n years on its system; or
(iv) it shall ensure that transactions (in respect of derivative market) once registered in the system are not erased;
(v) it shall ensure that the transactions (in respect of derivative market) once registered in the system are modified ohly in cases of genuine error (as mentioned in Circular of SEBI dated 19.08.2016 in SEBI/HO/cdMRD/DMP/CIR/P/2016/73) and maintain data regarding all transactions (in respect of derivative arket) registered in the system which have been modified and submit a monthly statement in Form No. 3BC to the Director General of Income-tax (Intelligence and Criminal Investigation), New Delhi within fifteen days from the last day of each month to which such statement relates.
This notificution IShall remain in forcea.
until the approval granted by the Securities and Exchange Board of India is withdrawn or expires; or
b. if any of the conditions stipulated in para above, are violated; or
e. unde, eL dse of powe” vested In Centcal Government unde, sub-,ule (5) of cule GOOD of the Ineometax Rules, 1962, this notification shall stand rescinded on 31.10.2021 with liberty to the exchange to file a fresh a· plication for approval under clause (e) of the proviso to sub-section (5) of section 43 of the Act for the s bsequent period.
whic ever is earlier.