Risk disclosureby broker, pool operator and trading adviser
32.—(1)  No commodity broker or commodity futures broker shall open a commodity contract or commodity futures contract account for a customer unless he furnishes the customer with a separate written risk disclosure document which shall be in such form and manner as may be prescribed by the Board, and receives from the customer an acknowledgment signed and dated by the customer that he has received and understood the nature and contents of the disclosure document.
[22/2001 wef 27/06/2001]
(2)  No commodity pool operator or commodity futures pool operator shall, directly or indirectly, solicit, accept or receive funds, securities or other property from a prospective participant in a pool that it operates or that it intends to operate unless on or before the date it engages in that activity the pool operator delivers or causes to be delivered to the prospective participant a risk disclosure document which shall be in such form and contain such information as the Board may prescribe and receives from the prospective participant an acknowledgment signed and dated by him that he has received and understood the nature and contents of the disclosure document.
[22/2001 wef 27/06/2001]
(3)  No commodity trading adviser or commodity futures trading adviser shall solicit or enter into an agreement with a prospective client for the purpose of managing his commodity trading account or guiding the client’s commodity trading by means of a systematic programme that recommends specific transactions unless the commodity trading adviser or commodity futures trading adviser at or before the time he engages in the solicitation or enters into the agreement (whichever is the earlier) delivers or causes to be delivered to the prospective client a risk disclosure document in respect of those purposes which shall be in such form and contain such information as the Board may prescribe and receives from the prospective client an acknowledgment signed and dated by him that he has received and understood the nature and contents of the disclosure document.
[22/2001 wef 27/06/2001]
(4)  Except as may be provided by any regulations made under this Act, no commodity trading adviser or commodity futures trading adviser shall solicit, accept or secure from an existing or prospective client money, securities or other property in the commodity trading adviser’s or commodity futures trading adviser’s name to purchase, margin guarantee or secure any interest of the client in a commodity contract or commodity futures contract.
[22/2001 wef 27/06/2001]
(5)  Subsection (4) shall not apply to a commodity broker or commodity futures broker who carries on the business of a commodity futures trading adviser.
[22/2001 wef 27/06/2001]