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“I AVOID DABBA TRADING
IN COMMODITY FUTURES”
Dabba (off-exchange) trading is both
risky and illegal.
Dabba trading or trading in
commodity futures outside the
FMC-regulated exchanges is illegal
as per the Forward Contracts
Regulation Act (FCRA), 1952.
Dabba trading is also risky as it does
not provide protection against
counterparty default risk as
guaranteed by commodity futures
exchanges for trades done on
them.
I insist on and verify records of all my commodity futures
trades.
I insist on keeping all the records (contract notes etc.)
related to my trades.
I also verify the authenticity of these records with the
detailed information available on the exchange website
upto 5 working days from the day of trade.
A dispute in Dabba trading cannot be redressed by the
commodity exchange.
Dispute arising in Dabba trading can only be referred to
police.
However, disputes arising in trades done on commodity
futures exchanges can be redressed, including through
arbitration,as provided by the exchange bylaws and
regulations.
Trade Safe; Trade Peacefully.
Trade Only on Commodity Exchanges
Issued in public interest by:
Ministry of Consumer Affairs, Food and Public Distribution
Department of Consumer Affairs, Government of India,
Krishi Bhawan, New Delhi-110 001,
Website: www.fcamin.nic.in
If you notice any illegal futures market activity, please report to:
Forward Markets Commission, Everest, 3rd Floor, 100, Marine Drive, Mumbai 400 002,
Tel: 022-227 953 00, Fax: 022-2281 2086, Email: contact.fmc@nic.in
THERE ARE NO GUARANTEED
RETURNS ON COMMODITY
MARKET INVESTMENT.
Risk is an integral part of investment in commodity markets, and returns from this market
cannot be assured.
Beware of all promotional and sales advertisements/literatures/talks that promise
guaranteed and high returns on your investment in commodity futures markets.
Knowledge of physical markets of the commodities that you invest in is essential to make
informed decision.
Do not believe in price tips and rumours. Do your own homework to trade in them
successfully.
Issued in public interest by:
Ministry of Consumer Affairs, Food and Public Distribution
Department of Consumer Affairs, Government of India,
Krishi Bhawan, New Delhi-110 001,
Website: www.fcamin.nic.in
If you notice any misleading sales promotion activity regarding commodity futures, please report to:
Forward Markets Commission, Everest, 3rd Floor, 100, Marine Drive, Mumbai 400 002,
Tel: 022-227 953 00, Fax: 022-2281 2086, Email: contact.fmc@nic.in
“I TRADE ONLY ON RECOGNISED
COMMODITY FUTURES
EXCHANGES”
• I know how to protect my investment
I trade only on regulated Commodity
Futures Exchanges. Trading outside
Recognised Exchanges (Dabba trading)
is illegal and has the risk of losing my
investment (margin money)
• Trading in Recognised Commodity
Futures Exchanges is transparent and it
gives everybody equal access
Being regulated, Commodity Futures Exchanges provide
equal access to all subject to common entry norms
• Trading on Recognised Commodity Exchanges gives me
peace of mind about security of my money and fair trading
Regulated Commodity Exchanges guarantee quality,
quantity, price, settlement, etc, as per contract terms
• The Commodity Futures Exchange protects my interests
in case of a dispute
The Commodity Futures Exchange ensures issue of a
contract note as a proof of order execution with all
trade details, which enables me to seek redressal for
any grievance/dispute. Trading outside an exchange is
illegal and cannot provide legal remedies/redress my
grievances
Trade Safe; Trade Peacefully.
Trade Only on Commodity Exchanges
Issued in public interest by:
Ministry of Consumer Affairs, Food and Public Distribution
Department of Consumer Affairs, Government of India,
Krishi Bhawan, New Delhi-110 001,
Website: www.fcamin.nic.in
If you notice any illegal futures market activity, please report to:
Forward Markets Commission, Everest, 3rd Floor, 100, Marine Drive, Mumbai 400 002,
Tel: 022-227 953 00, Fax: 022-2281 2086, Email: contact.fmc@nic.in
Trade in Commodity
Futures without fear
of fraud.
Know Your Rights...
Insist on a contract note for trades executed
Approach the Exchange or the Forward
Markets Commission (FMC) for redressal of
your grievances
Ensure that trading in your account is
conducted only on your specific instructions
and without unreasonable delay
Insist on periodical statement of ledger
accounts
Conduct transactions only through cheque
Trade Safe; Understand Your Rights.
Trade Only on Commodity Exchanges
Issued in public interest by:
Ministry of Consumer Affairs, Food and Public Distribution
Department of Consumer Affairs, Government of India,
Krishi Bhawan, New Delhi-110 001,
Website: www.fcamin.nic.in
If you have any grievance about futures trade in commodities, please report to:
Forward Markets Commission, Everest, 3rd Floor, 100, Marine Drive, Mumbai 400 002,
Tel: 022-227 953 00, Fax: 022-2281 2086, Email: contact.fmc@nic.in
“I TAKE MY OWN
INVESTMENT
DECISIONS”
• I do my own research on commodities and take my own
decisions while investing
Besides supply and demand fundamentals, interest
rates, exchange rates and govt. policy too drives
commodity prices. I seek information on these price-
moving factors from reliable independent sources
before taking my trading decisions
• I don’t get lured by false promises of assured returns
Returns can never be guaranteed in the commodity
futures market.
• I don’t avail of portfolio management services (PMS)
PMS services in commodities are not permitted by
Forward Markets Commission (FMC) the regulator for
the commodity futures market and is illegal
• It’s my money; I manage it myself
I do not invest in commodities that I do not understand.
I know that investing in commodities is different from
investing in securities or other instruments. Without
knowledge of fundamental factors, I do not risk my
hard-earned money.
Don’t Fall Prey to Unsolicited
Tips and Lures while
Trading in Commodity Futures
Issued in public interest by:
Ministry of Consumer Affairs, Food and Public Distribution
Department of Consumer Affairs, Government of India,
Krishi Bhawan, New Delhi-110 001,
Website: www.fcamin.nic.in
If anyone approaches you for PMS in commodity futures, please report to:
Forward Markets Commission, Everest, 3rd Floor, 100, Marine Drive, Mumbai 400 002,
Tel: 022-227 953 00, Fax: 022-2281 2086, Email: contact.fmc@nic.in
“I AM AN
IDEAL FUTURES
MARKET TRADER”
• I trade only on recognised commodity futures
exchanges
I know that trading outside an exchange platform is
illegal
• I trade through brokers/members registered with the
Forward Markets Commission (FMC). List of such
brokers is available on the exchange websites.
I verify my broker's credentials
• I don't get lured by promises of assured returns
before trading
I do my own research on commodities before
trading
I study the contract specifications and the delivery
and settlement procedure before trading
• I keep verified records of all market transactions
I insist on contract notes, receipts and account
statements from my broker. Verify them with the
information available on the Exchange website
• I always pay by cheque from my designated account
I pay the broker by cheque (including margins), in
his name, insist on receipts and keep these carefully
and understand that I am entitled to receive funds
within 48 hours of Exchange’s pay-out
• I trade within my investment and risk taking capacity
I know my ability to take risks and avoid over-
trading despite lure of making huge profit
Understand Rules & Risks of Commodity Futures Trading
and Then Trade on Exchanges
Issued in public interest by:
Ministry of Consumer Affairs, Food and Public Distribution
Department of Consumer Affairs, Government of India,
Krishi Bhawan, New Delhi-110 001,
Website: www.fcamin.nic.in
If you have any grievance agaisnt brokers or Exchanges, please report to:
Forward Markets Commission, Everest, 3rd Floor, 100, Marine Drive, Mumbai 400 002,
Tel: 022-227 953 00, Fax: 022-2281 2086, Email: contact.fmc@nic.in