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Mandatory

Now ,therefore, in consideration of the manual understanding as set forth in this agreement, the parties there to have agreed to the following terms and conditions:

Clauses 1 to 10 are prescribed by SEBI and hence these are MANDATORY in nature.

  1. Refusal of orders for penny stocks.

    “Penny Stocks” as generally understood are those scripts, which are not very liquid in nature/which are very thinly traded and traded at a relatively low price. As per company policy, the trades done in such stocks will be monitored. The client may be questioned about such trading by the Stock Broker. If found improper or manipulative or creating false or misleading appearance in the securities market, then the Stock Broker may refuse to allow the client from trading in such stocks.
    Exchange also gives a list of illiquid securities on monthly basis, which are thinly traded shares of small companies and are infrequently traded. The list of such shares is also made available on the Web Site of the company. If any client is found to be indulging in trading in such stocks in high volume (as a % to the total market volume), the Stock Broker may require the client to submit adequate clarification. As per its due diligence measures, if found necessary, the Stock Broker may disallow the client from trading in those scripts.
    As per Company Policy, Penny stocks which include the scripts, which appear in the list of illiquid securities issued by the Exchange every month.

  2. Setting up client’s exposure limits.

    The client agrees to abide by the exposure limits set by the stockbroker or by the Exchange or Clearing Corporation or SEBI from time to time at the time of entering into the agreement or availability of funds, margins cash or shares provided by the client after appropriate hair cut. The client exposure is set on the basis of the financial soundness and turnover of the client. It is not compulsory to collect up front margin from clients for cash segment. Generally the client is allowed to trade upto a certain limit, at our discretion, depending on various factors including financial credibility.
    In Futures & Options segment, exposure limit of each client is set, based on Margin money given by the client, as per the Exchange Regulations and shall vary from time to time. Upfront margin is collected from client. Certain financial disclosures/information are additionally required from clients who opt for trading in F/O or CD segment and are mandatory. It is the prerogative of the Stock Broker to allow trading, which may vary from client to client upon creditworthiness and past conduct.

  3. Applicable brokerage rate
    1. For cash segment:
      The brokerages Rate applicable to the clients vary from client to client depending on the category of the client i.e. HNI, Institutional, low, medium and high-risk client and the maximum brokerage shall be 2.5% of contract price exclusive of statutory levies. At the time of induction of a new client, the financial stability of the client is assessed/measured and the expected volume is also determined and the brokerage is fixed with the mutual consent of the client. If any mismatch in brokerage rate is found with agreed rate, the same can be brought to our notice immediately.
      The client agrees that the Brokerage for penny stock is higher than the normal Brokerage rates and is payable as per mutual understanding and may vary from client to client depending upon volumes and other parameters but would not exceed the maximum Brokerage permissible.
    2. For Option Contracts
      Brokerage for option contracts shall be charged on the premium at which the option contract price was bought or sold and not on the strike price of the option contract. It is hereby further clarified that brokerage on the options contracts shall not exceed 2.5% of the premium amount or Rs. 100/- (per lot)
    3. For Future Contracts
      Brokerage for future contracts shall be charged on the value at which securities are bought or sold. It is hereby further clarified that brokerage on future contracts shall not exceed 2.5% of the contract value exclusive of statutory levies.
      Service Tax on brokerage value will be levied in addition to brokerage as applicable. Securities Transaction Tax is levied on transaction value as prescribed by Government.
  4. Imposition of penalty/delayed payment charges.

    In case of delay of payment by the client to the Stock Broker on its pay in obligation, the Stock Broker may levy penalty in respect of such delayed payment though the same is not charged presently. The penalty charges on delayed payment from the client or if the stock broker fails to make payment within one working day after the specific request of the client who has opted for running account to make payment on payout, shall be @ 18% p.a. on over due amount. Apart from imposition of charges, we may not allow the client to take future position.
    No interests or benefits are payable to the client for maintaining cash balances or depositing collateral margins with the company.

  5. The right to sell clients’ securities or close clients’ position, without giving notice to the clients, on account of non-payments of clients’ dues.

    Without prejudice to the stock broker’s other rights (including the right to refer a matter to arbitration), the stock broker shall be entitled to liquidate/close out all or any of the client’s positions for non-payment of margins or other amounts, outstanding debts, etc after giving telephonic reminder to the client, if the fund is not received within 5 trading days from the Pay in day, and adjust the proceeds of such liquidation/close out in the Exchange against the client’s liabilities/obligations. Any and all the losses and financial charges on account of such liquidation/closing out shall be charged to and borne by the client.

  6. Shortages in obligations arising out of internal netting of trades.

    The client agrees that in case of shortages in obligations arising out of internal netting of trades, short shares are bought in the market at the prevailing price and are transferred to the client who had not received the shares in pay out. The account of the client who has failed to deliver shares shall be debited for such market purchase.

  7. Condition under which a client may not be allowed to take further position or the broker may close the existing position of a client.

    The Client agrees that he/she/it may not be allowed to take further position, under the following situations:-

    1. The client has a due / debit balance – Such clients are allowed to close out his/her/its open position but is not allowed to take any new position.
    2. The client had defaulted in meeting cash or securities obligation leading to compulsory close out of the position by the Stock Broker.
    3. The client may not be allowed to take exposure in that particular script in which the broker’s limit has come to an end or where the exchange is not allowing any further position in that script.
    4. The client has not met Market to Market loss.
    5. The open positions in a contract exceed or are close to market wide cut off limits.
    6. The client position is close to client wise permissible “Open” position.
  8. Temporarily suspending or closing a client’s account at the client’s request.
    1. The account of client may be temporarily suspended on written request from the client and can only be reactivated after receiving a written request from the client.
    2. In case, a client gives a request in writing for closing his/her/its account, then the account of the Client shall be settled and the trading code shall be closed in the front and back office of the Broker. However if the client is through a registered sub broker, the sub broker shall also be informed and he/she/it has to give his consent for closing the same. In future if the client seeks to re-open his account with the Stock Broker, he/it/she shall be required to submit a new KYC form and execute necessary documents as if a new account is being opened.
    3. Where the client is inactive for more than 6 months.
    4. Where the account is under investigation by any regulatory body.
    5. Physical documents are received back undelivered due to reasons like “no such person”,”addressee” left, refusal to accept mails.
    6. Non submission of updated KYC and/ or non updation of communication details viz., email id., Mobile No., Land line details or it is found to be belonging to a third person.
    7. Client lodges a complaint either directly with company or through exchange relating alleged unauthorized Trades being executed in the account.
    8. On notices received from statutory, Government or Local authorities and Income Tax, Service Tax, a Judicial or a Quasi Judicial authority, etc.
    9. Upon the death, winding up, bankrupt, liquidation or lack of legal capacity of the client.
  9. Deregistering a client.

    The client agrees that he/she/it shall be de-registered if he/she/it is suspended from trading by any Regulatory authority or in case of failure of the client to meet his/her/its obligations to the Stock Broker / or on account of breach of terms and conditions of the agreement or being part of debarred entities by SEBI, the trading account of the client shall be closed after effecting full and final settlement of the accounts and securities of the client, if any, to recover its dues.