Trading Rules of Shanghai Diamond Exchange
Revised copy (modifications in 2005 are under-lined)
Article 1
With a view to regulating the trading activities at the Shanghai Diamond Exchange (the ?SDE ?), and safeguarding the legitimate rights and interests of all parties involved, these Rules are formulated in accordance with the Constitution for Shanghai Diamond Exchange and relevant laws, rules and regulations.
All transaction activities at the SDE shall abide by these Rules. In case it goes beyond the scope of these Rules, other regulations adopted by Membership Conference of the SDE shall apply.
Article 2
All trading at the SDE shall adhere to the principle of honesty and credibility. All parties involved shall have the responsibility to keep business secrets for the other party.
Article 3
The trading venue is within the premises of the SDE. The address is Floor 4 and Floor 6 of Jin Mao Tower, No.88 Century Boulevard, Pudong New Area, Shanghai .
Article 4
Trading days is from Monday to Friday except for legal holidays. Trading hours is from 9:00 am to 5:00 pm.
Article 5
The scope of trading at the SDE is the buying , selling , importing and exporting of rough and polished diamonds and other business permitted by the relevant government authorities.
Article 6
If diamonds having been treated are under transaction, the member (the seller) shall disclose the truth about the treatment of the diamonds.
Article 7
All trading at the SDE shall be conducted between members only. Members should be corporations registered inside the SDE , with independent legal person status and specialized in the import , export and wholesale of diamond.
Article 8
Members can appoint one or two persons as their trading representatives to the SDE after the persons concerned being verified by the SDE and whose files being reported to the Diamond Administration of China (the ?DAC ?) for record and becoming effective.
Article 9
The trading representative o f a member shall conduct trading and sign relevant documents and vouchers in the name of the member. The member corporate shall be fully responsible for all the trading activities of its representative at the SDE.
Article 10
Where any member needs to change its trading representative, the member corporate shall present an application for change, this application shall not be valid until it has been verified by the SDE and has been reported to the DAC for record.
Article 11
Trading representatives (trading partners) shall transact the Form of Diamond Transaction for each concluded trading. This Form of Diamond Transaction shall be deemed as the written voucher for business conclusion.
Article 12
Non-members shall entrust members as agents for any transaction with members through SDE. With the Exception of the non-members who are filed for record at the DAC and specialized in diamond processing trade and synthetic diamond ( powder down the dispute in written form and sign, and apply
Article 13
According to the regulations of the state and relevant government authorities , all diamonds entering and exiting SDE shall be declared or be filed for record at the customs in the SDE. The rough diamonds shall also be subject to the inspection of the SDE. All diamonds entering , exiting , traded in the SDE shall be checked by the Verification Department of the DAC.
Article 14
The currency designated for all diamond trading is US dollars.
Article 15
A valid offer shall have the terms and conditions of the trading written on the sealed wrapper or envelope containing the diamond concerned, and the wrapper or the envelop shall be signed by the member representative (the party who makes the offer).
Article 16
The Chairman of the Supervision Council of the SDE shall entrust the President of the SDE to appoint a specific person as the Director on Duty. This Director on Duty shall be responsible for keeping the daily transaction in order, mediate and settle all the transaction-related disputes occurred.
Article 17
The weight of goods determined by the scales of the SDE shall be binding upon members, and any dispute concerning the weight of diamonds shall be resolved by the Director on Duty and shall be recorded in written form.
Article 18
Any dispute occurred during the transaction of diamonds could be settled by the members themselves. If the members fail to agree upon a settlement on their own, any party concerned can forward the disputes to the Director on Duty for mediation.
If the two parties reach an agreement or accept the Director on Duty ' s mediation, the agreement or the mediation shall be taken down in written form and jointly signed by the Director on Duty and the two parties concerned. The written record shall be binding upon both parties.
Article 20
If two disputing parties fail to reach an agreement or refuse to accept the mediation of the Director on Duty, the two parties and the Director on Duty shall take down the dispute in written form and sign, and apply for arbitration in accordance with the arbitration rules of the SDE.
Article 21
These Rules shall be modified if more than one third of members propose or the DAC request in accordance with the policies of the State.
Article 22
The Supervision Council of the SDE is responsible for the interpretation of these Rules.
Article 23
These Rules shall become effective after being approved by more than two thirds of members at the Membership Conference and being verified by the DAC. In case of modification, the same shall be true.
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