The
Maharashtra State Co-Op.
Cotton Growers' Marketing Federation Ltd.
No.CTN/SS/2001-02/Broker/553
Date: 18-06-2001
CIRCULAR
Sub
: Registration and responsibilities of Brokers.
Ref : Our Letter No.CTN/99-2000/Brokers Dt.24.4.2000.
The terms and conditions for registration and renewal of registration for brokers have been decided vide letter under reference. Some ot the terms and conditions for registration and renewal of registration for brokers have been generated as follows:-
(A)
REGISTRATION :
1. Broker should become nominal member of MSCCGMF by paying Rs.10/-
as a nominal membership fee, for which he has to apply in the prescribed
form.
2. Broker should have his own office with telephone and fax facilities,
and necessarily knowledge of cotton business.
3. Broker should pay deposit of Rs.5000/- if he is a proprietor of the
firm or Rs.10000/- if he is partner of a firm.
4. Broker should bring 3 letters of consuming mills who are seeking to
enter the business through him with details of their cotton requirement
and count spin etc.
5. Broker should bring at least one offer with this application in the
prescribed format duly filled.
6. Broker should also attach his photograph to the application form.
7. Broker should produce Income Tax clearance certificate from Income-tax
Deptt. MSCCGMF holds absolute right to consider or refuse the application
of the broker for registration of brokership.
(B) PROCEDURE :
8. After completion of deliveries Broker should produce the bills enclosed
with delivery completion certificate and copies of 'C' or 'BC' forms submitted
or certificate of having paid the M.S.T.
9. 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).
10. The Federation keeps the option to withhold the amount of brokerage
if the buyer makes the default and broker does not cooperate for recovery
of amounts due from buyer.
11. The Federation will not pay any amount of brokerage to the person
who is not duly authorized by the broker.
12. Registration of broker will expire by the end of the December every
year.
13. Broker will have to renew his registration by the end of Dec. every
year on payment of Renewal fee of Rs.200/-. If renewal is not done by
the end of Dec. then he will be required to pay Rs.200/- in addition as
late fee in the month of Jan. In the event of non renewal by the end of
January by payment of late fee, as earlier stated, his registration will
stand automatically cancelled and he has to apply for new registrarion.
14. The MSCCGMF reserves the right to cancel the registration of broker
at any time without notice if he is found to have indulged in any act
which is harmful and prejudicial to the interests of the Federation directly
or indirectly. In such cases, his deposit is also liable to be forfeited.
(C) RESPONSIBILITY :
15. Broker should make efforts to bring the business to Federation.
16. Broker should apprise the Federation about market developments, supply,
demand position in market.
17. It will be the broker's responsibility to facilitate the deposit of
EMD and timely selection of cotton and submission of approval reports
to the Federation's concerned authority.
18. The broker is expected to make efforts to fulfill the contract satisfactorily
in the stipulated time. In case the contract is not fulfilled and Federation
incurs 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.
19. The Registration 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 as well as who are seeking registration.
General Manager (S&S)
