SALES AND STATISTICS

THE MAHARASHTRA STATE CO-OPERATIVE COTTON GROWERS'
MARKETING FEDERATION LIMITED

CIRCULAR

SUB.:- Registration and responsibilities of Brokers

In the marketing of cotton, the brokers have vital role and for that we feel that there should be a procedure of registration of brokers and their responsibilities defined as follows:-

(A) REGISTRATION:
1. Broker should become nominal member of MSCCGMF by paying Rs.10/- as a nominal members fee, for which he has to apply in a prescribed form.
2. Broker should have his own office with telephone and fax facilities and necessary knowledge of cotton business.
3. Broker should pay deposit of Rs.25,000/- if he is a proprieotor of the firm or Rs.50,000/- if he is partner of broker firm.
4. Broker should bring 3 letters of consumer mills who are seeking to enter the business through him, with details of thier cotton requirement and count, spin, etc.
5. Broker should bring at least one offer with this application in the prescribed form at duly filled.
6. Broker should also attach his photograph on the application form.

MSCCGMF Ltd. holds absolute right to consider or refuse the application of the broker for registration of brokership.

(B) PROCEDURE:

7. After completion of deliveries on the basis of certificate of zone office brokerage pyament ot the extent of 75% will be paid to the broker and blance 25% will be paid to broker after verifying the contract compliance report and receipts of necessary Sales Tax declarations like 'C' Form and B.C.Form, etc.
8. If the broker does not bring any business for 3 years Federation will keep the option to cancel the registration and his deposit will be refunded without interest after verifying the dues (if any).
9. The Federation keeps the option to withheld the amount of brokerage if the buyer makes the default and broker does not cooperate for recovery of amounts due towards buyer.
10. The Federation will not pay any amount of brokerage to the peson who is not duly authorised by the broker.
11. Broker will have to renew his registration in the month of January every year. Renewal fee will be Rs.200/- if renewal is not done his name will be struck out from the list.
12. The MSCCGMF reserves the right to cancel the registration of broker at any time wihtout notice if he is found indulged in any act which is harmful to the interest of the Federation directly or indirectly. In such cases, his deposit is also liable to be fortified.

(C) RESPONSIBILITY:

13. Broker should make efforts to bring the business to Federation
14. Broker should apprise the Federation about market developments, supply, demand position in market.
15. It will be broker's responsibility to facilitate the deposit of EMD and timely selection of cotton and submission of approval reports to the Federation concerned authority.
16. The broker is expected to make efforts to fulfil the contract satisfactory in stipulated time. In case the contract is not fulfilled and Federation incurrs losses in resale, then it will be binding upon broker to cooperate in recovering such losses. Under the circumstances, broker shall make every effort to recover the losses from buyer.
17. Registeration part (A) is for new brokers seeking for registration. Part (B) of procedure and Part (C) of responsibilities are for all brokers who are already registered with us, as well as seeking for registration.

General Manager (S&S)