Name of the committee : - Trading Guarantee Fund Committee .

Purpose of T.G.F. :- Setting up of T.G.E. is very much essential to inculcation a sense of confidence among all the participants In future trading. The exchange will be able to guarantee the trading through T.G.F, so that case of default of any member, the clams of other members of the exchange is not affected at all adversely & is settled through T.G.F. More clearly, T.G.F. is an unbreakable Stainless steel guarantee cover of payment to forward trading in case of default.

Framework of T.G.F. Committee : - committee will comprise, including its Chairman, only five members. Nomination & election of five members will be as under-

•  One member, nomination by COC Board, amongst the elected directors, will be the Chairman of T.G.F. Committee.

•  One member, Chairman of Clearing House Committee of COC.

•  One member Chairman or in his absence vice-chairman of COC Board.

•  Two members to be elected by the general body. These persons will be members of COC but they will not represent as Directors in the concerned board management. Authorized Representative of the firm is not eligible for the membership of T.G.F. committee. Election rules of COC will be applicable for the election of two members of T.G.F. Committee.

•  Secretary of COC will work as secretary of T.G.F. committee.

•  The committee will be responsible for the accounts investments & payments from the guarantee fund, The funds, of the T.G.F. will be kept in separate account under the name of Trade guarantee Fund & will not be mingled with COC accounts/funds.

Period of T.G.F Committee : - Duration of COC Board will be duration of T.G.F, committee (one year)

Vacancy to file in .G.F Committee : - If vacancy is created in T.G.F. Committee due to any reason (Death, resignation, insolvency etc.) board will be empowered to fill the vacancy immediately.

Size of T.G.F .: - Appropriate & Sufficient Trade Guarantee Funds are to be maintained by COC but its size will be determined by the board management from time of time in consultation with the COMMISSION.

Mode of collection T.G.F. : - The main source of collection of T.G.F. will be as follows:-

•  By imposing per unit T.G.F. change may be revised by the COC Board at any time as per need.

•  COC Board may contribute to T.G.F. from its reserve Funds, if necessary.

•  By any other source, Board Management consider right & reasonable.

Important Rules to be strictly followed by T.G.F. Committee:-

•  COC Board will be the settler & controller of Funds while T.G.F. Committee will be the in change of the funds.

•  Payments can be made from T.G.F. only -only in case of default & not in any other condition or for any other purpose because the sole purpose of T.G.F. is to face successfully the conditions, arising out of default.

•  T.G. Funds will be deposited in different Nationalized Banks under separate Bank Accounts in the From of F.D.R.'s or other deposits. Safely & timely return of T.G.F. will be main consideration in the investment of Funds.

•  All the revenue expenses incurred in connection with the organization, promotion, canalization, monitory and control of the funds will remain appropriable against the income generated out of the investment of the T.G.F.

•  Fort the Bank account operation, joint signatures of T.G.F. Committee Chairman & secretary of COC will be necessitated.

•  In case of default payment from T.G.F. will be made to only those trading members, whose names are recommended by COC Board with the consultation of Clearing house committee to T.G.F. Committee for payment, Lonely, T.G.F. Committee will not be entitled at all to use the funds without prior approval & recommendation of Board Management.

•  No Loan can be taken or given from T.G.F. to any person or body in any circumstances, Future to say that use of T.G.F. to except default is strictly banned, restricted & prohibited. In default case, COC Board is to pursue the recovery of amounts due from the defaulted members or same with T.G.F.

•  Quarterly or emergency meeting of T,G.F. committee will be held in COC office regularly to review the position of T.G.F. & repost will submitted to Board Management for consideration.

•  After due consideration with in 30 days COC Board will submit the quarterly progress report of T.G.F. committee to F.M.C. Mumbai for official record & advice.

•  If T.G.F. comes below the fixed target due to any payouts COC Board has to ensure that the determined target of Guarantee Funds is maintained again.

•  In case of default payment will be made from T.G.F. only to COC trading firms or its member on the on the board recommendation but not to the registered broker(s).

•  In case of default of a registered broker(s), guarantor firm of registered Broker will be fully responsible & liable to meet the total liabilities of defaulted Broker(s).

•  In Case of Non-payment by the Guarantor firm(s), the firm(s),in question has to meet the same face of a defaulted firms(s).

•  As soon as a Guarantor firm ceases to the member of the exchange due to any reason clearly mentioned in the Articles of the Exchange, or Guarantee is withdrawn under any circumstances so effected Reg. Broker will be totally banned to resume floor trading in the Ring (patia) until & unless new guarantor firms is arranged to resume floor trading again.

•  If any trading member of the Exchange is declared defaulted, his/her membership of Exchange will be terminated with immediate effect.

•  A defaulted firm /person cannot be granted the membership of the Exchange again under any circumstances.

•  A defaulted firm and all its members cannot be the proprietor partner, director or even a Auth. Representative (manager) In the other existing firms, already enrolled as member firms in COC.

•  If COC Board & T.G.F. committee is found guilty of violating T.G.F. Rules: FMC is fully empowered to take appropriate action against the Board Management well as T.G.F. Committee.

•  Board Management & T.G.F. committee actually realize the need to Change/amend the above said rules in the interest of T.G.F. existing rules of COC will be applicable for change/amendment.

Position of Non-Trading in Exchange : - If Forward Trade is banned by the central govt. & exchange is delinked with F.M.C. Bombay, T.G.F. Committee will remain In - change of funds separately.