Source: SEBI study dated January 25, 2023 on “Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment”, wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.

RIGHTS AND OBLIGATIONS OF STOCK BROKERS, SUB-BROKERS AND CLIENTS (As prescribed by SEBI and Stock Exchanges)

The client shall invest/trade in those securities/contracts/other instruments admitted to dealings on the Exchanges as defined in the Rules, Byelaws and Regulations of Exchanges/ Securities and Exchange Board of India (SEBI) and circulars/notices issued there under from time to time.
The stock broker, sub-broker and the client shall be bound by all the Rules, Byelaws and Regulations of the Exchange and circulars/notices issued there under and Rules and Regulations of SEBI and relevant notifications of Government authorities as may be in force from time to time.
The client shall satisfy itself of the capacity of the stock broker to deal in securities and/or deal in derivatives contracts and wishes to execute its orders through the stock broker and the client shall from time to time continue to satisfy itself of such capability of the stock broker before executing orders through the stock broker. The stock broker shall continuously satisfy itself about the genuineness and financial soundness of the client and investment objectives relevant to the services to be provided.
The stock broker shall take steps to make the client aware of the precise nature of the Stock broker’s liability for business to be conducted, including any limitations, the liability and the capacity in which the stock broker acts.
The sub-broker shall provide necessary assistance and co-operate with the stock broker in all its dealings with the client(s).

Client Information

The client shall furnish all such details in full as are required by the stock broker in "Account Opening Form” with supporting details, made mandatory by stock exchanges/SEBI from time to time.
The client shall familiarize himself with all the mandatory provisions in the Account Opening documents. Any additional clauses or documents specified by the stock broker shall be non- mandatory, as per terms & conditions accepted by the client.
The client shall immediately notify the stock broker in writing if there is any change in the information in the ‘account opening form’ as provided at the time of account opening and thereafter; including the information on winding up petition/insolvency petition or any litigation which may have material bearing on his capacity. The client shall provide/update the financial information to the stock broker on a periodic basis. The stock broker and sub-broker shall maintain all the details of the client as mentioned in the account opening form or any other information pertaining to the client, confidentially and that they shall not disclose the same to any person/authority except as required under any law/regulatory requirements. Provided however that the stock broker may so disclose information about his client to any person or authority with the express permission of the client.

Margins

The client shall pay applicable initial margins, withholding margins, special margins or such other margins as are considered necessary by the stock broker or the Exchange or as may be directed by SEBI from time to time as applicable to the segment(s) in which the client trades.
The stock broker is permitted in its sole and absolute discretion to collect additional margins (even though not required by the Exchange, Clearing House/Clearing Corporation or SEBI) and the client shall be obliged to pay such margins within the stipulated time.
The client understands that payment of margins by the client does not necessarily imply complete satisfaction of all dues. In spite of consistently having paid margins, the client may, on the settlement of its trade, be obliged to pay (or entitled to receive) such further sums as the contract may dictate/require.

Transactions and Settlements

The client shall give any order for buy or sell of a security/derivatives contract in writing or in such form or manner, as may be mutually agreed between the client and the stock broker. The stock broker shall ensure to place orders and execute the trades of the client, only in the Unique Client Code assigned to that client. The stock broker shall inform the client and keep him apprised about trading/settlement cycles, delivery/payment schedules, any changes therein from time to time, and it shall be the responsibility in turn of the client to comply with such schedules/procedures of the relevant stock exchange where the trade is executed.
The stock broker shall ensure that the money/securities deposited by the client shall be kept in a separate account, distinct from his/its own account or account of any other client and shall not be used by the stock broker for himself/itself or for any other client or for any purpose other than the purposes mentioned in Rules, Regulations, circulars, notices, guidelines of SEBI and/or Rules, Regulations, Bye-laws, circulars and notices of Exchange.
Where the Exchange(s) cancels trade(s) suo moto all such trades including the trade/s done on behalf of the client shall ipso facto stand cancelled, stock broker shall be entitled to cancel the respective contract(s) with client(s).
The transactions executed on the Exchange are subject to Rules, Byelaws and Regulations and circulars/notices issued thereunder of the Exchanges where the trade is executed and all parties to such trade shall have submitted to the jurisdiction of such court as may be specified by the Byelaws and Regulations of the Exchanges where the trade is executed for the purpose of giving effect to the provisions of the Rules, Byelaws and Regulations of the Exchanges and the circulars/notices issued thereunder.

Brokerage

The Client shall pay to the stock broker brokerage and statutory levies as are prevailing from time to time and as they apply to the Client’s account, transactions and to the services that stock broker renders to the Client. The stock broker shall not charge brokerage more than the maximum brokerage permissible as per the rules, regulations and bye-laws of the relevant stock exchanges and/or rules and regulations of SEBI.

Liquidation and Close Out of Position

Without prejudice to the stock broker's other rights (including the right to refer a matter to arbitration), the client understands that the stock broker shall be entitled to liquidate/close out all or any of the client's positions for nonpayment of margins or other amounts, outstanding debts, etc. and adjust the proceeds of such liquidation/close out, if any, against the client's liabilities/obligations. Any and all losses and financial charges on account of such liquidation/closing-out shall be charged to and borne by the client.
In the event of death or insolvency of the client or his/its otherwise becoming incapable of receiving and paying for or delivering or transferring securities which the client has ordered to be bought or sold, stock broker may close out the transaction of the client and claim losses, if any, against the estate of the client. The client or his nominees, successors, heirs and assignee shall be entitled to any surplus which may result there from. The client shall note that transfer of funds/securities in favor of a Nominee shall be valid discharge by the stock broker against the legal heir.
The stock broker shall bring to the notice of the relevant Exchange the information about default in payment/delivery and related aspects by a client. In case where defaulting client is a corporate entity/partnership/proprietary firm or any other artificial legal entity, then the name(s) of Director(s)/Promoter(s)/Partner(s)/Proprietor as the case may be, shall also be communicated by the stock broker to the relevant Exchange(s).

Dispute Resolution

The stock broker shall provide the client with the relevant contact details of the concerned Exchanges and SEBI.
The stock broker shall co-operate in redressing grievances of the client in respect of all transactions routed through it and in removing objections for bad delivery of shares, rectification of bad delivery, etc.
The client and the stock broker shall refer any claims and/or disputes with respect to deposits, margin money, etc., to arbitration as per the Rules, Byelaws and Regulations of the Exchanges where the trade is executed and circulars/notices issued thereunder as may be in force from time to time.
The stock broker shall ensure faster settlement of any arbitration proceedings arising out of the transactions entered into between him vis-à-vis the client and he shall be liable to implement the arbitration awards made in such proceedings. The client/stock-broker understands that the instructions issued by an authorized representative for dispute resolution, if any, of the client/stock-broker shall be binding on the client/stock-broker in accordance with the letter authorizing the said representative to deal on behalf of the said client/stock-broker.

Termination of Relationship

This relationship between the stock broker and the client shall be terminated; if the stock broker for any reason ceases to be a member of the stock exchange including cessation of membership by reason of the stock broker's default, death, resignation or expulsion or if the certificate is cancelled by the Board. The stock broker, sub-broker and the client shall be entitled to terminate the relationship between them without giving any reasons to the other party, after giving notice in writing of not less than one month to the other parties. Notwithstanding any such termination, all rights, liabilities and obligations of the parties arising out of or in respect of transactions entered into prior to the termination of this relationship shall continue to subsist and vest in/be binding on the respective parties or his/its respective heirs, executors, administrators, legal representatives or successors, as the case may be. In the event of demise/insolvency of the sub-broker or the cancellation of his/its registration with the Board or/withdrawal of recognition of the sub-broker by the stock exchange and/or termination of the agreement with the sub broker by the stock broker, for any reason whatsoever, the client shall be informed of such termination and the client shall be deemed to be the direct client of the stock broker and all clauses in the ‘Rights and Obligations’ document(s) governing the stock broker, sub-broker and client shall continue to be in force as it is, unless the client intimates to the stock broker his/its intention to terminate their relationship by giving a notice in writing of not less than one month.

Additional Rights and Obligations

The stock broker shall ensure due protection to the client regarding client’s rights to dividends, rights or bonus shares, etc. in respect of transactions routed through it and it shall not do anything which is likely to harm the interest of the client with whom and for whom they may have had transactions in securities. The stock broker and client shall reconcile and settle their accounts from time to time as per the Rules, Regulations, Bye Laws, Circulars, Notices and Guidelines issued by SEBI and the relevant Exchanges where the trade is executed.
The stock broker shall issue a contract note to his constituents for trades executed in such format as may be prescribed by the Exchange from time to time containing records of all transactions including details of order number, trade number, trade time, trade price, trade quantity, details of the derivatives contract, client code, brokerage, all charges levied etc. and with all other relevant details as required therein to be filled in and issued in such manner and within such time as prescribed by the Exchange.
The stock broker shall send contract notes to the investors within one working day of the execution of the trades in hard copy and/or in electronic form using digital signature.
The stock broker shall make pay out of funds or delivery of securities, as the case may be, to the Client within one working day of receipt of the payout from the relevant Exchange where the trade is executed unless otherwise specified by the client and subject to such terms and conditions as may be prescribed by the relevant Exchange from time to time where the trade is executed.
The stock broker shall send a complete `Statement of Accounts’ for both funds and securities in respect of each of its clients in such periodicity and format within such time, as may be prescribed by the relevant Exchange, from time to time, where the trade is executed. The Statement shall also state that the client shall report errors, if any, in the Statement within such time as may be prescribed by the relevant Exchange from time to time where the trade was executed, from the receipt thereof to the Stock broker.
The stock broker shall send daily margin statements to the clients. Daily Margin statement should include, interalia, details of collateral deposited, collateral utilized and collateral status (available balance/due from client) with break up in terms of cash, Fixed Deposit Receipts (FDRs), Bank Guarantee and securities. The Client shall ensure that it has the required legal capacity to, and is authorized to, enter into the relationship with stock broker and is capable of performing his obligations and undertakings hereunder. All actions required to be taken to ensure compliance of all the transactions, which the Client may enter into shall be completed by the Client prior to such transaction being entered into.

Electronic Contract Notes (ECN)

In case, client opts to receive the contract note in electronic form, he shall provide an appropriate e-mail id to the stock broker. The client shall communicate to the stock broker any change in the email-id through a physical letter. If the client has opted for internet trading, the request for change of email id may be made through the secured access by way of client specific user id and password.
The stock broker shall ensure that all ECNs sent through the e-mail shall be digitally signed, encrypted, non tamper able and in compliance with the provisions of the IT Act, 2000. In case, ECN is sent through e-mail as an attachment, the attached file shall also be secured with the digital signature, encrypted and non tamperable.
The client shall note that non-receipt of bounced mail notification by the stock broker shall amount to delivery of the contract note at the e-mail ID of the client.
The stock broker shall retain ECN and acknowledgement of the e-mail in a soft and non- tamperable form in the manner prescribed by the exchange in compliance with the provisions of the IT Act, 2000 and as per the extant rules/regulations/circulars/guidelines issued by SEBI/Stock Exchanges from time to time. The proof of delivery i.e., log report generated by the system at the time of sending the contract notes shall be maintained by the stock broker for the specified period under the extant regulations of SEBI/stock exchanges. The log report shall provide the details of the contract notes that are not delivered to the client/e mails rejected or bounced back. The stock broker shall take all possible steps to ensure receipt of notification of bounced mails by him at all times within the stipulated time period under the extant regulations of SEBI/stock exchanges.
The stock broker shall continue to send contract notes in the physical mode to such clients who do not opt to receive the contract notes in the electronic form. Wherever the ECNs have not been delivered to the client or has been rejected (bouncing of mails) by the e-mail ID of the client, the stock broker shall send a physical contract note to the client within the stipulated time under the extant regulations of SEBI/stock exchanges and maintain the proof of delivery of such physical contract notes.
In addition to the e-mail communication of the ECNs to the client, the stock broker shall simultaneously publish the ECN on his designated web-site, if any, in a secured way and enable relevant access to the clients and for this purpose, shall allot a unique user name and password to the client, with an option to the client to save the contract note electronically and/or take a print out of the same.

Law and Jurisdiction

In addition to the specific rights set out in this document, the stock broker, sub-broker and the client shall be entitled to exercise any other rights which the stock broker or the client may have under the Rules, Bye laws and Regulations of the Exchanges in which the client chooses to trade and circulars/notices issued thereunder or Rules and Regulations of SEBI.
The provisions of this document shall always be subject to Government notifications, any rules, regulations, guidelines and circulars/notices issued by SEBI and Rules, Regulations and Bye laws of the relevant stock exchanges, where the trade is executed, that may be in force from time to time.
The stock broker and the client shall abide by any award passed by the Arbitrator(s) under the Arbitration and Conciliation Act, 1996. However, there is also a provision of appeal within the stock exchanges, if either party is not satisfied with the arbitration award.
Words and expressions which are used in this document but which are not defined herein shall, unless the context otherwise requires, have the same meaning as assigned thereto in the Rules, Byelaws and Regulations and circulars/notices issued thereunder of the Exchanges/SEBI.
All additional voluntary clauses/document added by the stock broker should not be in contravention with rules/regulations/notices/circulars of Exchanges/SEBI. Any changes in such voluntary clauses/document(s) need to be preceded by a notice of 15 days. Any changes in the rights and obligations which are specified by Exchanges/SEBI shall also be brought to the notice of the clients.
If the rights and obligations of the parties hereto are altered by virtue of change in Rules and regulations of SEBI or Bye-laws, Rules and Regulations of the relevant stock Exchanges where the trade is executed, such changes shall be deemed to have been incorporated herein in modification of the rights and obligations of the parties mentioned in this document.
Internet and Wireless Technology Based Trading Facility Provided by Stock Brokers to Client (All the clauses mentioned in the ‘Rights and Obligations’ document(s) shall be applicable. Additionally, the clauses mentioned herein shall also be applicable.) Stock broker is eligible for providing Internet based trading (IBT) and securities trading through the use of wireless technology that shall include the use of devices such as mobile phone, laptop with data card, etc.
which use Internet Protocol (IP). The stock broker shall comply with all requirements applicable to internet based trading/securities trading using wireless technology as may be specified by SEBI & the Exchanges from time to time.
The client is desirous of investing/ trading in securities and for this purpose, the client is desirous of using either the internet based trading facility or the facility for securities trading through use of wireless technology. The Stock broker shall provide the Stock broker’s IBT Service to the Client, and the Client shall avail of the Stock broker’s IBT Service, on and subject to SEBI/ Exchanges Provisions and the terms and conditions specified on the Stock broker’s IBT Web Site provided that they are in line with the norms prescribed by Exchanges/ SEBI.
The stock broker shall bring to the notice of client the features, risks, responsibilities, obligations and liabilities associated with securities trading through wireless technology/ internet/ smart order routing or any other technology should be brought to the notice of the client by the stock broker.
The stock broker shall make the client aware that the Stock Broker’s IBT system itself generates the initial password and its password policy as stipulated in line with norms prescribed by Exchanges/ SEBI. The Client shall be responsible for keeping the Username and Password confidential and secure and shall be solely responsible for all orders entered and transactions done by any person whosoever through the Stock broker’s IBT System using the Client’s Username and/or Password whether or not such person was authorized to do so.
Also the client is aware that authentication technologies and strict security measures are required for the internet trading/ securities trading through wireless technology through order routed system and undertakes to ensure that the password of the client and/or his authorized representative are not revealed to any third party including employees and dealers of the stock broker.
The Client shall immediately notify the Stock broker in writing if he forgets his password, discovers security flaw in Stock Broker’s IBT System, discovers/suspects discrepancies/ unauthorized access through his username/password/account with full details of such unauthorized use, the date, the manner and the transactions effected pursuant to such unauthorized use, etc.
The Client is fully aware of and understands the risks associated with availing of a service for routing orders over the internet/ securities trading through wireless technology and Client shall be fully liable and responsible for any and all acts done in the Client’s Username/password in any manner whatsoever. The stock broker shall send the order/trade confirmation through email to the client at his request. The client is aware that the order/ trade confirmation is also provided on the web portal. In case client is trading using wireless technology, the stock broker shall send the order/trade confirmation on the device of the client.
The client is aware that trading over the internet involves many uncertain factors and complex hardware, software, systems, communication lines, peripherals, etc. are susceptible to interruptions and dislocations. The Stock broker and the Exchange do not make any representation or warranty that the Stock broker’s IBT Service will be available to the Client at all times without any interruption.
The Client shall not have any claim against the Exchange or the Stock broker on account of any suspension, interruption, non-availability or malfunctioning of the Stock broker’s IBT System or Service or the Exchange’s service or systems or non- execution General Clauseof his orders due to any link/system failure at the Client/Stock brokers/Exchange end for any reason beyond the control of the stock broker/Exchanges.

RIGHTS AND OBLIGATIONS OF MEMBERS, AUTHORIZED PERSONS AND CLIENTS (As prescribed by SEBI and Commodity Exchanges)

The client shall invest/trade in those commodities /contracts/other instruments admitted to dealings on the Exchanges as defined in the Rules, Byelaws and Business Rules/ Regulations of Exchanges/ Securities and Exchange Board of India (SEBI) and circulars/notices issued there under from time to time.
The Member, Authorized Person and the client shall be bound by all the Rules, Byelaws and Business Rules of the Exchange and circulars/notices issued there under and Rules and Regulations of SEBI and relevant notifications of Government authorities as may be in force from time to time.
The client shall satisfy himself of the capacity of the Member to deal in commodities and/or deal in derivatives contracts and wishes to execute its orders through the Member and the client shall from time to time continue to satisfy itself of such capability of the Member before executing orders through the Member. nvestment objectives relevant to the services to be provided.
The Member shall take steps to make the client aware of the precise nature of the Member’s liability for business to be conducted, including any limitations, the liability and the capacity in which the Member acts. Requirements of professional diligence;
The Member must exercise professional diligence while entering into a financial contract or discharging any obligations under it.
“professional diligence” means the standard of skill and care that a Member would be reasonably expected to exercise towards a Client, commensurate with;honest market practice;the principle of good faith; the level of knowledge, experience and expertise of the Client; the nature and degree of risk embodied in the financial product* or financial service being availed by the Client; and the extent of dependence of the Client on the Member.
*Commodity Derivatives Contract The Authorized Person shall provide necessary assistance and co-operate with the Member in all its dealings with the client(s).

CLIENT INFORMATION

The client shall furnish all such details in full as are required by the Member in "Account Opening Form” with supporting details, made mandatory by commodity exchanges/SEBI from time to time. The client shall familiarize himself with all the mandatory provisions in the Account Opening documents. Any additional clauses or documents specified by the Member shall be non- mandatory; therefore, subject to specific acceptance by the client.
The client shall immediately notify the Member in writing if there is any change in the information in the ‘account opening form’ as provided at the time of account opening and thereafter; including the information on winding up petition/insolvency petition or any litigation which may have material bearing on his capacity. The client shall provide/update the financial information to the Member on a periodic basis.
Protection from unfair terms in financial contracts** An unfair term of a non-negotiated contract will be void. A term is unfair if it;
causes a significant imbalance in the rights and obligations of the parties under the financial contract, to the detriment of the Client; and is not reasonably necessary to protect the legitimate interests of the Member. The factors to be taken into account while determining whether a term is unfair, include; the nature of the financial product or financial service dealt with under the financial contract; the extent of transparency of the term;
** contracts offered by commodity exchanges the extent to which the term allows a Client to compare it with other financial contracts for similar financial products or financial services; and the financial contract as a whole and the terms of any other contract on which it is dependent.
A term is transparent if it; is expressed in reasonably plain language that is likely to be understood by the Client; is legible and presented clearly; and is readily available to the Client affected by the term. If a term of a financial contract is determined to be unfair under point 11.A.c, the parties will continue to be bound by the remaining terms of the financial contract to the extent that the financial contract is capable of enforcement without the unfair term. “Non-negotiated contract” means a contract whose terms, other than the terms contained in point 11.C. (given below) are not negotiated between the parties to the financial contract and includes;
a financial contract in which, relative to the Client, the Member has a substantially greater bargaining power in determining terms of the financial contract; and a standard form contract.
“Standard form contract” means a financial contract that is substantially not negotiable for the Client, except for the terms contained in point 11.C.
Even if some terms of a financial contract are negotiated in form, the financial contract may be regarded as a non- negotiated contract if so indicated by; an overall and substantial assessment of the financial contract; and the substantial circumstances surrounding the financial contract In a claim that a financial contract is a non-negotiated contract, the onus of demonstrating otherwise will be on the Member. The above does not apply to a term of a financial contract if it; defines the subject matter of the financial contract; sets the price that is paid, or payable, for the provision of the financial product or financial service under the financial contract and has been clearly disclosed to the Client; or is required, or expressly permitted, under any law or regulations.
The exemption under point 11.C does not apply to a term that deals with the payment of an amount which is contingent on the occurrence or non-occurrence of any particular event. The Member and Authorized Person shall maintain all the details of the client as mentioned in the account opening form or any other information pertaining to the client, confidentially and that they shall not disclose the same to any person/authority except as required under any law/regulatory requirements. Provided however that the Member may so disclose information about his client to any person or authority with the express permission of the client.
Protection of personal information and confidentiality “Personal information” means any information that relates to a Client or allows a Client’s identity to be inferred, directly or indirectly, and includes; name and contact information; biometric information, in case of individuals information relating to transactions in, or holdings of, financial products information relating to the use of financial services; or such other information as may be specified.
A Member must; not collect personal information relating to a Client in excess of what is required for the provision of a financial product or financial service; maintain the confidentiality of personal information relating to Clients and not disclose it to a third party, except in a manner expressly permitted under point 13.B.b.; make best efforts to ensure that any personal information relating to a Client that it holds is accurate, up to date and complete;
ensure that Clients can obtain reasonable access to their personal information, subject to any exceptions that the Regulator may specify; and allow Clients an effective opportunity to seek modifications to their personal information to ensure that the personal information held by the Member is accurate, up to date and complete. A Member may disclose personal information relating to a Client to a third party only if; it has obtained prior written informed consent of the Client for the disclosure, after giving the Client an effective opportunity to refuse consent; the Client has directed the disclosure to be made; the Regulator has approved or ordered the disclosure, and unless prohibited by the relevant law or regulations, the Client is given an opportunity to represent under such law or regulations against such disclosure; the disclosure is required under any law or regulations, and unless prohibited by such law or regulations,
the Client is given an opportunity to represent under such law or regulations against such disclosure; the disclosure is directly related to the provision of a financial product or financial service to the Client, if the Member; informs the Client in advance that the personal information may be shared with a third party;and makes arrangements to ensure that the third party maintains the confidentiality of the personal information in the same manner as required under this Part; or the disclosure is made to protect against or prevent actual or potential fraud, unauthorised transactions or claims, if the Member arranges with the third party to maintain the confidentiality of the personal information in the manner required under this Part.- “Third party” means any person other than the concerned Member, including a person belonging to the same group as the Member. A Requirement of fair disclosure both initially and on continuing basis; Member must ensure fair disclosure of information that is likely to be required by a Client to make an informed transactional decision. In order to constitute fair disclosure, the information must be provided; sufficiently before the Client enters into a financial contract, so as to allow the Client reasonable time to understand the information;
in writing and in a manner that is likely to be understood by a Client belonging to a particular category; and in a manner that enables the Client to make reasonable comparison of the financial product or financial service with other similar financial products or financial services. The types of information that must be disclosed to a Client in relation to a financial product or financial service, which may include information regarding; main characteristics of the financial product or financial service, including its features, benefits and risks to the Client; consideration to be paid for the financial product or financial service or the manner in which the consideration is calculated; existence, exclusion or effect of any term in the financial product or financial contract; nature, attributes and rights of the Member, including its identity, regulatory status and affiliations; contact details of the Member and the methods of communication to be used between the Member and the Client; rights of the Client to rescind a financial contract within a specified period; or rights of the Client under any law or regulations. Member must provide a Client that is availing a financial product or financial service provided by it, with the following continuing disclosures;
any material change to the information that was required to be disclosed under point 14.A at the time when the Client initially availed the financial product or financial service; information relating to the status or performance of a financial product held by the Client, as may be required to assess the rights or interests in the financial product or financial service; and any other information that may be specified. A continuing disclosure must be made; within a reasonable time-period from the occurrence of any material change or at reasonable periodic intervals , as applicable; and in writing and in a manner that is likely to be understood by a Client belonging to that category.

MARGINS

The client shall pay applicable initial margins, withholding margins, special margins or such other margins as are considered necessary by the Member or the Exchange or as may be directed by SEBI from time to time as applicable to the segment(s) in which the client trades. The Member is permitted in its sole and absolute discretion to collect additional margins (even though not required by the Exchange or SEBI) and the client shall be obliged to pay such margins within the stipulated time. The client understands that payment of margins by the client does not necessarily imply complete satisfaction of all dues. In spite of consistently having paid margins, the client may, on the settlement of its trade, be obliged to pay (or entitled to receive) such further sums as the contract may dictate/require.

TRANSACTIONS AND SETTLEMENTS

The client shall give any order for buy or sell of commodities derivatives contract in writing or in such form or manner, as may be mutually agreed between the client and the Member however ensuring the regulatory requirements in this regard are complied with. The Member shall ensure to place orders and execute the trades of the client, only in the Unique Client Code assigned to that client.
The Member shall inform the client and keep him apprised about trading/settlement cycles, delivery/payment schedules, any changes therein from time to time, and it shall be the responsibility in turn of the client to comply with such schedules/procedures of the relevant commodity exchange where the trade is executed.
The Member shall ensure that the money deposited by the client shall be kept in a separate account, distinct from his/its own account or account of any other client and shall not be used by the Member for himself/itself or for any other client or for any purpose other than the purposes mentioned in Rules, circulars, notices, guidelines of SEBI and/or Rules, Business Rules, Bye-laws, circulars and notices of Exchange.
Where the Exchange(s) cancels trade(s) suo moto all such trades including the trade/s done on behalf of the client shall ipso facto stand cancelled, Member shall be entitled to cancel the respective contract(s) with client(s).
The transactions executed on the Exchange are subject to Rules, Byelaws and Business Rules and circulars/notices issued thereunder of the Exchanges where the trade is executed and all parties to such trade shall have submitted to the jurisdiction of such court as may be specified by the Byelaws and Business Rules of the Exchanges where the trade is executed for the purpose of giving effect to the provisions of the Rules, Byelaws and Business Rules of the Exchanges and the circulars/notices issued thereunder.

BROKERAGE

The Client shall pay to the Member brokerage and statutory levies as are prevailing from time to time and as they apply to the Client’s account, transactions and to the services that Member renders to the Client. The Member shall not charge brokerage more than the maximum brokerage permissible as per the Rules, Business Rules and Bye-laws of the relevant commodity exchanges and/or Rules of SEBI.

LIQUIDATION AND CLOSE OUT OF POSITION

Without prejudice to the Member's other rights (including the right to refer a matter to arbitration), the client understands that the Member 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. and adjust the proceeds of such liquidation/close out, if any, against the client's liabilities/obligations. Any and all losses and financial charges on account of such liquidation/closing- out shall be charged to and borne by the client.
In the event of death or insolvency of the client or his/its otherwise becoming incapable of receiving and paying for or delivering or transferring commodities which the client has ordered to be bought or sold, Member may close out the transaction of the client and claim losses, if any, against the estate of the client. The client or his nominees, successors, heirs and assignee shall be entitled to any surplus which may result there from. The client shall note that transfer of funds/commodities in favor of a Nominee shall be valid discharge by the Member against the legal heir.

DISPUTE RESOLUTION

The Member shall co-operate in redressing grievances of the client in respect of all transactions routed through it. The client and the Member shall refer any claims and/or disputes with respect to deposits, margin money, etc., to arbitration as per the Rules, Byelaws and Business Rules of the Exchanges where the trade is executed and circulars/notices issued thereunder as may be in force from time to time.
The client/Member understands that the instructions issued by an authorized representative for dispute resolution, if any, of the client/Member shall be binding on the client/Member in accordance with the letter authorizing the said representative to deal on behalf of the said client/Member. Requirement for each Member to have an effective grievance redress mechanism which is accessible to all its Clients;
A Member must have in place an effective mechanism to receive and redress complaints from its Clients in relation to financial products or financial services provided by it, or on its behalf, in a prompt and fair manner.
A Member must inform a Client, at the commencement of relationship with the Client and at such other time when the information is likely to be required by the Client, of; the Client’s right to seek redress for any complaints; and the processes followed by the Member to receive and redress complaints from its Clients.
Suitability of advice for the Client Right to receive advice that is suitable taking into account the relevant personal circumstances of the Client, such as the Clients financial circumstances and needs. This obligation would apply to persons who render advice to Clients and the regulator may specify categories of financial products and service that necessarily require such advice to be given. A Member must; make all efforts to obtain correct and adequate information about the relevant personal circumstances of a Client; and ensure that the advice given is suitable for the Client after due consideration of the relevant personal circumstances of the Client. If it is reasonably apparent to the Member that the available information regarding the relevant personal circumstances of a Client is incomplete or inaccurate, the Member must warn the Client of the consequences of proceeding on the basis of incomplete or inaccurate information. If a Client intends to avail of a financial product or financial service that the Member determines unsuitable for the Client, the Member.
must clearly communicate its advice to the Client in writing and in a manner that is likely to be understood by the Client; and may provide the financial product or financial service requested by the Client only after complying with point (a) and obtaining a written acknowledgement from the Client. Dealing with conflict of interest: In case of any conflict between the interests of a Client and that of the Member, preference much be given to the Client interests. A member must; provide a Client with information regarding any conflict of interests, including any conflicted remuneration that the Member has received or expects to receive for making the advice to the Client; and give priority to the interests of the Client if the Member knows, or reasonably ought to know, of a conflict between; its own interests and the interests of the Client; or the interests of the concerned Member and interests of the Client, in cases where the Member is a financial representative.
The information under point 30.a.i. must be given to the Client in writing and in a manner that is likely to be understood by the Client and a written acknowledgement of the receipt of the information should be obtained from the Client.
In this section, “conflicted remuneration” means any benefit, whether monetary or non- monetary, derived by a Member from persons other than Clients, that could, under the circumstances, reasonably be expected to influence the advice given by the Member to a Client.

TERMINATION OF RELATIONSHIP

This relationship between the Member and the client shall be terminated; if the Member for any reason ceases to be a member of the commodity exchange including cessation of membership by reason of the Member's default, death, resignation or expulsion or if the certificate is cancelled by the Exchange. The Member, Authorized Person and the client shall be entitled to terminate the relationship between them without giving any reasons to the other party, after giving notice in writing of not less than one month to the other parties. Notwithstanding any such termination, all rights, liabilities and obligations of the parties arising out of or in respect of transactions entered into prior to the termination of this relationship shall continue to subsist and vest in/be binding on the respective parties or his/its respective heirs, executors, administrators, legal representatives or successors, as the case may be.
In the event of demise/insolvency of the Authorized Person or the cancellation of his/its registration with the Board or/withdrawal of recognition of the Authorized Person by the commodity exchange and/or termination of the agreement with the Authorized Person by the Member, for any reason whatsoever, the client shall be informed of such termination and the client shall be deemed to be the direct client of the Member and all clauses in the ‘Rights and Obligations’ document(s) governing the Member, Authorized Person and client shall continue to be in force as it is, unless the client intimates to the Member his/its intention to terminate their relationship by giving a notice in writing of not less than one month.

ADDITIONAL RIGHTS AND OBLIGATIONS

The Member and client shall reconcile and settle their accounts from time to time as per the Rules, Business Rules, Bye Laws, Circulars, Notices and Guidelines issued by SEBI and the relevant Exchanges where the trade is executed. The Member shall issue a contract note to his clients for trades executed in such format as may be prescribed by the Exchange from time to time containing records of all transactions including details of order number, trade number, trade time, trade price, trade quantity, details of the derivatives contract, client code, brokerage, all charges levied etc. and with all other relevant details as required therein to be filled in and issued in such manner and within such time as prescribed by the Exchange. The Member shall send contract notes to the investors within 24 hours of the execution of the trades in hard copy and/or in electronic form using digital signature.
The Member shall make pay out of funds or delivery of commodities as per the Exchange Rules, Bye-Laws, Business Rules and Circulars, as the case may be, to the Client on receipt of the payout from the relevant Exchange where the trade is executed unless otherwise specified by the client and subject to such terms and conditions as may be prescribed by the relevant Exchange from time to time where the trade is executed.
The Member shall send a complete `Statement of Accounts’ for both funds and commodities in respect of each of its clients in such periodicity and format within such time, as may be prescribed by the relevant Exchange, from time to time, where the trade is executed. The Statement shall also state that the client shall report errors, if any, in the Statement immediately but not later than 30 calendar days of receipt thereof, to the Member. A detailed statement of accounts must be sent every month to all the clients in physical form. The proof of delivery of the same should be preserved by the Member. The Member shall send margin statements to the clients on monthly basis. Margin statement should include, inter- alia, details of collateral deposited, collateral utilized and collateral status (available balance/due from client) with break up in terms of cash, Fixed Deposit Receipts (FDRs), Bank Guarantee, warehouse receipts, securities etc.
The Client shall ensure that it has the required legal capacity to, and is authorized to, enter into the relationship with Member and is capable of performing his obligations and undertakings hereunder. All actions required to be taken to ensure compliance of all the transactions, which the Client may enter into shall be completed by the Client prior to such transaction being entered into. In case, where a member surrenders his/ her/ its membership, Member gives a public notice inviting claims, if any, from investors. In case of a claim relating to transactions executed on the trading system of the Exchange, ensure that client lodge a claim with the Exchange within the stipulated period and with the supporting documents.
Protection from unfair conduct which includes misleading conduct & abusive conduct Unfair conduct in relation to financial products or financial services is prohibited. “Unfair conduct” means an act or omission by a Member or its financial representative that significantly impairs, or is likely to significantly impair, the ability of a Client to make an informed transactional decision and includes; misleading conduct under point 41.B abusive conduct under point 41.C such other conduct as may be specified. Conduct of a Member or its financial representative in relation to a determinative factor is misleading if it is likely to cause the Client to take a transactional decision that the Client would not have taken otherwise, and the conduct involves; providing the Client with inaccurate information or information that the Member or financial representative does not believe to be true; or providing accurate information to the Client in a manner that is deceptive.
In determining whether a conduct is misleading under point 41.B.a, the following factors must be considered to be “determinative factors” the main characteristics of a financial product or financial service, including its features, benefits and risks to the Client; the Client’s need for a particular financial product or financial service or its suitability for the Client; the consideration to be paid for the financial product or financial service or the manner in which the consideration is calculated; the existence, exclusion or effect of any term in a financial contract, which is material term in the context of that financial contract; the nature, attributes and rights of the Member, including its identity, regulatory status and affiliations; and the rights of the Client under any law or regulations.
A conduct of a Member or its financial representative in relation to a financial product or financial service is abusive if it; involves the use of coercion or undue influence; and causes or is likely to cause the Client to take a transactional decision that the Client would not have taken otherwise. In determining whether a conduct uses coercion or undue influence, the following must be considered; the timing, location, nature or persistence of the conduct; the use of threatening or abusive language or behaviour; the exploitation of any particular misfortune or circumstance of the Client, of which the Member is aware to influence the Client’s decision with regard to a financial product or financial service; any non-contractual barriers imposed by the Member where the Client wishes to exercise rights under a financial contract, including – the right to terminate the financial contract; the right to switch to another financial product or another Member and a threat to take any action, depending on the circumstances in which the threat is made.

ELECTRONIC CONTRACT NOTES (ECN)

In case, client opts to receive the contract note in electronic form, he shall provide an appropriate e-mail id (created by the client) to the Member (Kindly refer Electronic Contract Note (ECN) Declaration). Member shall ensure that all the rules/Business Rule/Bye-Laws/ circulars issued from time to time in this regard are complied with. The client shall communicate to the Member any change in the email-id through a physical letter. If the client has opted for internet trading, the request for change of email id may be made through the secured access by way of client specific user id and password.
The Member shall ensure that all ECNs sent through the e-mail shall be digitally signed, encrypted, non tamperable and in compliance with the provisions of the IT Act, 2000. In case, ECN is sent through e-mail as an attachment, the attached file shall also be secured with the digital signature, encrypted and non tamperable. The client shall note that non-receipt of bounced mail notification by the Member shall amount to delivery of the contract note at the e-mail ID of the client.
The Member shall retain ECN and acknowledgement of the e-mail in a soft and non-tamperable form in the manner prescribed by the exchange in compliance with the provisions of the IT Act, 2000 and as per the extant rules/circulars/guidelines issued by SEBI/Commodity exchanges from time to time. The proof of delivery i.e., log report generated by the system at the time of sending the contract notes shall be maintained by the Member for the specified period under the extant rules/circulars/guidelines issued by SEBI/Commodity exchanges. The log report shall provide the details of the contract notes that are not delivered to the client/e-mails rejected or bounced back. The Member shall take all possible steps to ensure receipt of notification of bounced mails by him at all times within the stipulated time period under the extant rules/circulars/guidelines issued by SEBI/Commodity exchanges.
The Member shall continue to send contract notes in the physical mode to such clients who do not opt to receive the contract notes in the electronic form. Wherever the ECNs have not been delivered to the client or has been rejected (bouncing of mails) by the e-mail ID of the client, the Member shall send a physical contract note to the client within the stipulated time under the extant Regulations/ Rules, Bye-Laws, Business Rules and Circulars of SEBI/commodity exchanges and maintain the proof of dispatch and delivery of such physical contract notes.
In addition to the e-mail communication of the ECNs to the client, the Member shall simultaneously publish the ECN on his designated web-site, if any, in a secured way and enable relevant access to the clients and for this purpose, shall allot a unique user name and password to the client, with an option to the client to save the contract note electronically and/or take a print out of the same.
The Electronic Contract Note (ECN) declaration form will be obtained from the Client who opts to receive the contract note in electronic form. This declaration will remain valid till it is revoked by the client.
LAW AND JURISDICTION

In addition to the specific rights set out in this document, the Member, Authorized Person and the client shall be entitled to exercise any other rights which the Member or the client may have under the Rules, Bye-laws and Business Rules of the Exchanges in which the client chooses to trade and circulars/notices issued thereunder or Rules of SEBI.
The provisions of this document shall always be subject to Government notifications, any rules, guidelines and circulars/notices issued by SEBI and Circulars, Rules, Business Rules and Bye laws of the relevant commodity exchanges, where the trade is executed, that may be in force from time to time. The Member and the client shall abide by any award passed by the Arbitrator(s) under the Arbitration and Conciliation Act, 1996. However, there is also a provision of appeal, if either party is not satisfied with the arbitration award.
Words and expressions which are used in this document but which are not defined herein shall, unless the context otherwise requires, have the same meaning as assigned thereto in the Rules, Byelaws and Regulations/Business Rules and circulars/notices issued thereunder of the Exchanges/SEBI. All additional voluntary/non-mandatory clauses/document added by the Member should not be in contravention with Rules/ Business Rules/Notices/Circulars of Exchanges/SEBI. Any changes in such voluntary clauses/document(s) need to be preceded by a notice of 15 days. Any changes in the rights and obligations which are specified by Exchanges/SEBI shall also be brought to the notice of the clients. If the rights and obligations of the parties hereto are altered by virtue of change in Rules of SEBI or Bye laws, Rules and Business Rules of the relevant commodity exchanges where the trade is executed, such changes shall be deemed to have been incorporated herein in modification of the rights and obligations of the parties mentioned in this document.
Members are required to send account statement to their clients every month in physical form.

INTERNET & WIRELESS TECHNOLOGY BASED TRADING FACILITY PROVIDED BY MEMBERS TO CLIENT (All the clauses mentioned in the 'Rights and Obligations' document(s) shall be applicable. Additionally, the clauses mentioned herein shall also be applicable.) Member is eligible for providing Internet based trading (IBT) and commodities trading through the use of wireless technology that shall include the use of devices such as mobile phone, laptop with data card, etc. which use Internet Protocol (IP). The Member shall comply with all requirements applicable to internet based trading/- commodities trading using wireless technology as may be specified by SEBI & the Exchanges from time to time.
The client is desirous of investing/trading in commodities and for this purpose, the client is desirous of using either the internet based trading facility or the facility for commodities trading through use of wireless technology. The Member shall provide the Member's IBT Service to the Client, and the Client shall avail of the Member's IBT Service, on and subject to SEBI/Exchanges Provisions and the terms and conditions specified on the Member's IBT Web Site provided that they are in line with the norms prescribed by Exchanges/SEBI.
The Member shall bring to the notice of client the features, risks, responsibilities, obligations and liabilities associated with commodities trading through wireless technology/internet or any other technology should be brought to the notice of the client by the Member.
The Member shall make the client aware that the Member's IBT system itself generates the initial password and its password policy as stipulated in line with norms prescribed by Exchanges/SEBI. The Client shall be responsible for keeping the Username and Password confidential and secure and shall be solely responsible for all orders entered and transactions done by any person whosoever through the Member's IBT System using the Client's Username and/or Password whether or not such person was authorized to do so. Also the client is aware that authentication technologies and strict security measures are required for the internet trading/ commodities trading through wireless technology through order routed system and undertakes to ensure that the password of the client and/or his authorized representative are not revealed to any third party including employees and dealers of the Member.
The Client shall immediately notify the Member in writing if he forgets his password, discovers security flaw in Member's IBT System, discovers/suspects discrepancies/ unauthorized access through his username/password/account with full details of such unauthorized use, the date, the manner and the transactions effected pursuant to such unauthorized use, etc.
The Client is fully aware of and understands the risks associated with availing of a service for routing orders over the internet/ commodities trading through wireless technology and Client shall be fully liable and responsible for any and all acts done in the Client's Username/password in any manner whatsoever. The Member shall send the order/trade confirmation through email to the client at his request. The client is aware that the order/ trade confirmation is also provided on the web portal. In case client is trading using wireless technology, the Member shall send the order/trade confirmation on the device of the client. The client is aware that trading over the internet involves many uncertain factors and complex hardware, software, systems, communication lines, peripherals, etc. are susceptible to interruptions and dislocations. The Member and the Exchange do not make any representation or warranty that the Member's IBT Service will be available to the Client at all times without any interruption.
The Client shall not have any claim against the Exchange or the Member on account of any suspension, interruption, non-availability or malfunctioning of the Member's IBT System or Service or the Exchange's service or systems or non- execution of his orders due to any link/system failure at the Client/Members/Exchange end for any reason beyond the control of the Member/Exchanges.

RIGHTS AND OBLIGATIONS OF THE CLEARING MEMBER/PARTICIPANT AND ITS CLIENT In relation to the Securities Lending and Borrowing Scheme:

The Securities and Exchange Board of India (“SEBI”) has formulated and issued the Securities Lending Scheme, 1997 (“SEBI Scheme”) and SEBI Circular No MRD/DoP/SE/Dep/Cir-14/2007 dated 20th December 2007 for facilitating lending and borrowing of securities through an “Approved Intermediary” registered with SEBI.
The National Securities Clearing Corporation is an Approved Intermediary (“AI”) registered under the SEBI Scheme and is, therefore, authorized to facilitate lending and borrowing of securities in accordance with the SEBI Scheme and Circulars of SEBI issued from time to time. Accordingly, the AI has framed the Securities Lending and Borrowing Scheme (hereinafter referred to as “SLBS”) for facilitating lending and borrowing of securities through persons registered as “Participants”.
SEBI, thereafter, vide its Circular No. CIR/NRD/DP/19/2014 dated June 3, 2014 (“SEBI Circular”) has modified the framework of Securities Lending and Borrowing. Under the said SEBI Circular, AI shall enter into an agreement with its Clearing Member/ Participant (“Agreement”) for the purpose of facilitating Securities Lending and Borrowing and which shall specify the rights, responsibilities and obligations of the AI and the Clearing Member/Participant (“Participant”). The said Agreement shall also define the exact role of AI/Participant vis-à-vis the Client of Participant. As per the said SEBI Circular, AI is also required to frame rights and obligations document laying down the rights and obligations of the Participant and its Client for the purpose of Securities Lending and Borrowing. The said rights and obligations document shall be mandatory and binding on the Participant. Accordingly, the AI has framed this rights and obligations document laying down the rights and obligations of Participant as well as of its Client (“Rights & Obligations Document”).
Securities Lending and Borrowing can be undertaken by the Participant either on their own account or on account of its Client registered with them. Any person(s) who meets the eligibility criteria as may be specified by the AI for the Clients under the SLBS, shall be eligible to participate in the SLBS by submitting duly signed relevant documentation/s to the Participant that it is desirous of participating in the SLBS. The Participant on the receipt of said relevant documentation/s from its Client, shall provide this Rights & Obligations Document to its Client which will be duly acknowledged by the Client of having read, understood and to agreeing to abide by the same prior to the execution of trade in the SLBS. The terms and conditions of this Rights & Obligations Document shall be binding on the Participant as well as on its Client.
All the transactions under the SLBS by the Client shall be strictly in accordance with SEBI Scheme, Circulars of SEBI, SLBS and the Circulars issued thereunder and the Rules, Byelaws, Regulations of the AI as a Clearing Corporation as applicable and the terms and conditions of the said Agreement. In the event of any conflict or contradiction between the provisions of the SEBI Scheme, Circulars of SEBI, SLBS and the Circulars issued thereunder and the Rules, Byelaws, Regulations of the AI as a Clearing Corporation as applicable and the terms and conditions of the said Agreement and this Rights & Obligations Document, the provisions of the SEBI Scheme, Circulars of SEBI, SLBS and the Circulars issued thereunder, the Rules, Byelaws and Regulations of the AI as a Clearing Corporation and the terms and conditions of the said Agreement shall prevail over this Rights & Obligations Document. The provisions of this Rights & Obligations Document are in addition thereto and not in derogation thereof. The Participant has made the Client aware of and the Client has understood the precise nature of the Participant’s liability towards the Client under SLBS including any limitations on the liability and the capacity in which the Participant acts.
Subject to the SEBI Scheme, Circulars of SEBI, SLBS and Circulars issued thereunder, and/or the Rules, Byelaws, Regulations of the AI as a Clearing Corporation as applicable and as in force from time to time, the rights and obligations of the Participant as well as its Client shall be hereto as under. Unless the context otherwise requires, the words and expressions used herein shall have the same meaning as defined in Securities Contracts (Regulation) Act, 1956 or Securities and Exchange Board of India Act, 1992 or Securities Lending Scheme, 1997 or Depositories Act, 1996 or the rules and regulations made thereunder respectively or Circulars of SEBI or SLBS and the Circulars issued thereunder and the Rules, Byelaws and Regulations of the AI as a Clearing Corporation.

Rights of the Participant

the Participant shall be entitled for charges, fees, other levies and /or any such other charges, subject to such limits as may be permitted by the AI in its Circulars from time to time. Margins The Participant is empowered to call upon its Client to pay such margins as may be specified by the AI from time to time.

Recovery The Participant shall be entitled to recover from the Client the loss or charges, fees, other levies and /or any such other charges that has been paid by the Participant to the AI or imposed by the AI on account of its Client arising out of default or transactions under the SLBS whether current or past that are effected by the Client in meeting its obligations by adjusting margins and other deposits, if any, available with the Participant against the Client’s liabilities / obligations.
Obligations of the Participant The Participant has satisfied itself about the genuineness and financial soundness of the Client and the objectives relevant to the services to be provided and is therefore, agreeable to facilitating such participation subject to the terms and conditions contained herein.
Issue of Confirmation Memo The Participant shall, upon execution of the Client’s transaction on the order matching platform of the AI, issue the confirmation memo in the specified format or such other documents to the Client within such time as may be prescribed by the AI from time to time.
Money / Securities to be kept in separate account The Participant agrees that the money / securities deposited by the Client shall be kept in a separate bank account / settlement demat account, distinct from its own account or accounts of any other Clients, and shall not be used by the Participant for itself or for any other Clients or for any purpose other than the purposes mentioned in the SEBI Scheme, Circulars of SEBI, SLBS and Circulars issued thereunder and/or the Rules, Byelaws, Regulations of the AI as a Clearing Corporation and as in force from time to time.
Update on Settlement Process The Participant agrees to inform and keep the Client apprised about securities lending and borrowing settlement cycles, delivery/ payment schedules and any changes therein from time to time. The Participant undertakes to maintain the “Know Your Client” details of the Client as mentioned in the Client Registration Form or any other information pertaining to the Client in confidence and that it shall not disclose the same to any person / authority except to the AI or as required under any law / regulatory requirements or in compliance with any decree, order or direction of any Court, Tribunal, SEBI or other authority duly empowered in law; Provided however that the Participant may so disclose information about its Client to any person or authority with the express permission of the Client.
Reconciliation of Account The Participant and the Client shall agree to reconcile their accounts regularly with reference to the transactions under the SLBS.
Return of Securities and Lending Fees
Where the Client is a lender unless otherwise agreed upon between the Participant and the Client - The Participant shall ensure the return of securities to the Client by transferring the same to the Client’s account within such time as may be prescribed by the AI.
The Participant shall ensure the return of the lending fees to the Client within such time as may be prescribed by the AI.
Delivery of Securities Where Client is a borrower unless otherwise agreed upon between the Participant and the Client – The Participant shall ensure the delivery of securities to the Client by transferring the same to the Client’s account within such time as may be prescribed by the AI.
Rights of the Client Where the Client is the lender unless otherwise agreed upon between the Participant and the Client The Client shall be entitled to receive the securities lent or financial compensation in lieu thereof, computed in such manner as may be specified by the AI from time to time.
The Client shall be entitled to receive lender’s fee for the securities lent. Where the Client is the borrower unless otherwise agreed upon between the Participant and the Client - The Client shall be entitled to receive securities borrowed or financial compensation in lieu thereof, computed in such manner as may be specified by the AI from time to time.
The Client shall be entitled to receive from the Participant, the collateral in case the Client has deposited securities approved by the AI as collateral. Notwithstanding any other provisions of the said Agreement and this Rights & Obligations Document, the Client shall be entitled to have all the rights that are conferred on it from time to time under the SEBI Scheme, Circulars of SEBI, SLBS and the Circulars issued thereunder.
Obligation Of The Client Abide by Law & Acquaintance to Law The Participant declares that it has brought the contents of the SEBI Scheme, Circulars of SEBI, SLBS and the Circulars issued thereunder from time to time, and the terms and conditions of the said Agreement to the notice of the Client and the Client agrees to comply with and adhere to the same.
Update & Comply with the Settlement Process Notwithstanding anything contained in Clause 15 hereto, the Client shall at all times make its own inquiries and keep itself updated on all settlement cycles, delivery/payment schedules and changes therein, and it shall be the responsibility of the Client to comply with such schedules/procedures of the AI.
Processing Charges The Client agrees to pay the Participant, processing charges and statutory levies prevailing from time to time or any other charges for the services provided by the Participant. The Participant agrees that it shall not charge processing charges / fees beyond the maximum limit permissible under the SEBI Scheme, Circulars of SEBI, SLBS and the Circulars issued thereunder from time to time.
Change in Client Registration Form The Client agrees to immediately notify the Participant in writing whenever there is any change of information in the details provided by the Client to the Participant at the time of its registration with the Participant and also as provided in the said relevant documentation/s required for participating in SLBS.
Authorized Representative The Client agrees to be bound by the instructions issued by its authorized representative, if any, in accordance with the letter authorizing the said representative to deal on its behalf.
Return of Securities The Client shall return the equivalent number of securities of the same type and class borrowed by it within the time specified by the AI in the Circulars issued from time to time.
Payment of Margins The Client agrees to pay such margins as may be specified by the Participant in accordance with the requirement of AI or SEBI from time to time.
Exposure / Position Limits The Client agrees to abide by the exposure / position limits, if any, set by the Participant or the AI or SEBI from time to time.
Securities lent to be Unencumbered The Client agrees and warrants that the securities lent are free from lien, charge, pledge or any encumbrance(s) of whatsoever nature.
Collateral At the discretion of the Participant, where the Client deposits the required collateral with the Participant, the same shall be free from any encumbrance(s) of whatsoever nature or defect in the title. If any encumbrance(s) or defect in the title is found subsequently, such collateral shall be immediately replaced by the Client.
Insolvency The Client agrees to immediately furnish information to the Participant in writing, if any winding up petition or insolvency petition has been filed or any winding up or insolvency order or decree or award is passed against it or if any litigation which may have material adverse bearing on its net worth has been filed against it.
Cancellation of Transactions Notwithstanding anything contained in the said Agreement, the AI shall be entitled to cancel transactions under the SLBS, either on an application by a Participant or suo moto or under regulatory directions, and in such event, the transactions done on behalf of the Client shall ipso facto stand cancelled, and neither the AI nor the Participant shall be liable to compensate the Client for any loss whatsoever (including opportunity loss) arising out of such cancellation.
Discontinuation of SLBS and Participation in SLBS The AI shall be entitled to discontinue the SLBS or the participation of the Participant in the SLBS at any time at its discretion. Such discontinuation may be subject to such terms and conditions as may be specified by the AI from time to time.
Arbitration The Participant and the Client shall co-operate with each other and / or the AI in redressing their grievances in respect of transactions under the SLBS. All disputes and differences or questions arising out of or in relation to this agreement including obligations, failure or breach thereof by any of the parties and/or of any matter whatsoever arising out of this agreement shall in the first instance be resolved mutually by the parties. If the parties fail to resolve the same mutually, then the same shall be referred to and decided by arbitration in accordance with the procedures as prescribed by the AI under the SLBS and the Circulars issued thereunder.
Governing Law and Jurisdiction In relation to any legal action or proceedings to which the AI is a party, the Participant as well as the Client irrevocably submit to the exclusive jurisdiction of the courts of Mumbai, India and waive any objection to such proceedings on grounds of venue or on the grounds that the proceedings have been brought in an inconvenient forum.In relation to any legal action or proceedings to which AI is not a party, the parties irrevocably submit to the jurisdiction of any competent court of law where the Client ordinarily resides at the time of execution of the transactions under the SLBS.

RIGHTS AND OBLIGATIONS OF BENEFICIAL OWNER AND DEPOSITORY PARTICIPANT (As prescribed by SEBI and Depositories)

General Clause The Beneficial Owner and the Depository participant (DP) shall be bound by the provisions of the Depositories Act, 1996, SEBI (Depositories and Participants) Regulations, 1996, Rules and Regulations of Securities and Exchange Board of India (SEBI), Circulars/Notifications/Guidelines issued there under, Bye Laws and Business Rules/Operating Instructions issued by the Depositories and relevant notifications of Government Authorities as may be in force from time to time.
The DP shall open/activate demat account of a beneficial owner in the depository system only after receipt of complete Account opening form, KYC and supporting documents as specified by SEBI from time to time.
Beneficial Owner information The DP shall maintain all the details of the beneficial owner(s) as mentioned in the account opening form, supporting documents submitted by them and/or any other information pertaining to the beneficial owner confidentially and shall not disclose the same to any person except as required by any statutory, legal or regulatory authority in this regard.
The Beneficial Owner shall immediately notify the DP in writing, if there is any change in details provided in the account opening form as submitted to the DP at the time of opening the demat account or furnished to the DP from time to time.
Fees/Charges/Tariff The Beneficial Owner shall pay such charges to the DP for the purpose of holding and transfer of securities in dematerialized form and for availing depository services as may be agreed to from time to time between the DP and the Beneficial Owner as set out in the Tariff Sheet provided by the DP. It may be informed to the Beneficial Owner that “no charges are payable for opening of demat accounts”.
In case of Basic Services Demat Accounts, the DP shall adhere to the charge structure as laid down under the relevant SEBI and/or Depository circulars/directions/notifications issued from time to time.
The DP shall not increase any charges/tariff agreed upon unless it has given a notice in writing of not less than thirty days to the Beneficial Owner regarding the same.
Dematerialization The Beneficial Owner shall have the right to get the securities, which have been admitted on the Depositories, dematerialized in the form and manner laid down under the Bye Laws, Business Rules and Operating Instructions of the depositories.
Separate Accounts The DP shall open separate accounts in the name of each of the beneficial owners and securities of each beneficial owner shall be segregated and shall not be mixed up with the securities of other beneficial owners and/or DP’s own securities held in dematerialized form.
The DP shall not facilitate the Beneficial Owner to create or permit any pledge and /or hypothecation or any other interest or encumbrance over all or any of such securities submitted for dematerialization and/or held in demat account except in the form and manner prescribed in the Depositories Act, 1996, SEBI (Depositories and Participants) Regulations, 1996 and Bye- Laws/ Operating Instructions/ Business Rules of the Depositories.
Transfer of Securities The DP shall effect transfer to and from the demat accounts of the Beneficial Owner only on the basis of an order, instruction, direction or mandate duly authorized by the Beneficial Owner and the DP shall maintain the original documents and the audit trail of such authorizations.
The Beneficial Owner reserves the right to give standing instructions with regard to the crediting of securities in his demat account and the DP shall act according to such instructions.
The stock broker / stock broker and depository participant shall not directly / indirectly compel the clients to execute Power of Attorney (PoA) or Demat Debit and Pledge Instruction (DDPI) or deny services to the client if the client refuses to execute PoA or DDPI.
Statement of Account The DP shall provide statements of accounts to the beneficial owner in such form and manner and at such time as agreed with the Beneficial Owner and as specified by SEBI/depository in this regard. If there is no transaction in the demat account, or if the balance has become Nil during the year, the DP shall send one physical statement of holding annually to such BOs and shall resume sending the transaction statement as and when there is a transaction in the account.
The DP may provide the services of issuing the statement of demat accounts in an electronic mode if the Beneficial Owner so desires. The DP will furnish to the Beneficial Owner the statement of demat accounts under its digital signature, as governed under the Information Technology Act, 2000. However if the DP does not have the facility of providing the statement of demat account in the electronic mode, then the Participant shall be obliged to forward the statement of demat accounts in physical form.
In case of Basic Services Demat Accounts, the DP shall send the transaction statements as mandated by SEBI and/or Depository from time to time.
Manner of Closure of Demat account The DP shall have the right to close the demat account of the Beneficial Owner, for any reasons whatsoever, provided the DP has given a notice in writing of not less than thirty days to the Beneficial Owner as well as to the Depository. Similarly, the Beneficial Owner shall have the right to close his/her demat account held with the DP provided no charges are payable by him/her to the DP. In such an event, the Beneficial Owner shall specify whether the balances in their demat account should be transferred to another demat account of the Beneficial Owner held with another DP or to rematerialize the security balances held.
Based on the instructions of the Beneficial Owner, the DP shall initiate the procedure for transferring such security balances or rematerialize such security balances within a period of thirty days as per procedure specified from time to time by the depository. Provided further, closure of demat account shall not affect the rights, liabilities and obligations of either the Beneficial Owner or the DP and shall continue to bind the parties to their satisfactory completion.
Default in payment of charges In event of Beneficial Owner committing a default in the payment of any amount provided in Clause 5 & 6 within a period of thirty days from the date of demand, without prejudice to the right of the DP to close the demat account of the Beneficial Owner, the DP may charge interest at a rate as specified by the Depository from time to time for the period of such default.
In case the Beneficial Owner has failed to make the payment of any of the amounts as provided in Clause 5&6 specified above, the DP after giving two days notice to the Beneficial Owner shall have the right to stop processing of instructions of the Beneficial Owner till such time he makes the payment along with interest, if any.
Liability of the Depository As per Section 16 of Depositories Act, 1996, Without prejudice to the provisions of any other law for the time being in force, any loss caused to the beneficial owner due to the negligence of the depository or the participant, the depository shall indemnify such beneficial owner.
Where the loss due to the negligence of the participant under Clause (1) above, is indemnified by the depository, the depository shall have the right to recover the same from such participant.
Freezing/ Unfreezing of Accounts The Beneficial Owner may exercise the right to freeze/defreeze his/her demat account maintained with the DP in accordance with the procedure and subject to the restrictions laid down under the Bye Laws and Business Rules/Operating Instructions.
The DP or the Depository shall have the right to freeze/defreeze the accounts of the Beneficial Owners on receipt of instructions received from any regulator or court or any statutory authority.
Redressal of Investor grievance The DP shall redress all grievances of the Beneficial Owner against the DP within a period of thirty days from the date of receipt of the complaint.
Authorized Representative If the Beneficial Owner is a body corporate or a legal entity, it shall, along with the account opening form, furnish to the DP, a list of officials authorized by it, who shall represent and interact on its behalf with the Participant. Any change in such list including additions, deletions or alterations thereto shall be forthwith communicated to the Participant.
Law and Jurisdiction In addition to the specific rights set out in this document, the DP and the Beneficial owner shall be entitled to exercise any other rights which the DP or the Beneficial Owner may have under the Rules, Bye Laws and Regulations of the respective Depository in which the demat account is opened and circulars/notices issued there under or Rules and Regulations of SEBI.
The provisions of this document shall always be subject to Government notification, any rules, regulations, guidelines and circulars/ notices issued by SEBI and Rules, Regulations and Bye-laws of the relevant Depository, where the Beneficial Owner maintains his/ her account, that may be in force from time to time. The Beneficial Owner and the DP shall abide by the arbitration and conciliation procedure prescribed under the Bye-laws of the depository and that such procedure shall be applicable to any disputes between the DP and the Beneficial Owner. Words and expressions which are used in this document but which are not defined herein shall unless the context otherwise requires, have the same meanings as assigned thereto in the Rules, Bye-laws and Regulations and circulars/notices issued there under by the depository and /or SEBI Any changes in the rights and obligations which are specified by SEBI/Depositories shall also be brought to the notice of the clients at once.
If the rights and obligations of the parties hereto are altered by virtue of change in Rules and regulations of SEBI or Bye-laws, Rules and Regulations of the relevant Depository, where the Beneficial Owner maintains his/her account, such changes shall be deemed to have been incorporated herein in modification of the rights and obligations of the parties mentioned in this document. Dear Customer,
ANTI MONEY LAUNDERING (AML) EDUCATION In response to the international community’s growing concern about the problem of money laundering and potential terrorist financing, many countries around the world are enacting or strengthening their laws and regulations regarding this subject.
In this regard Anti Money Laundering Act, 2002 was passed by Indian Parliament in the year 2002 and the Act became effective from July 1, 2005.
The Act specifies statutory duties for Banking companies, Financial Institutions and Intermediaries. The compliance with these duties is intended to supplement the law enforcement authorities’ activities, to detect proceeds derived from serious crimes and help to effectively prevent money laundering, terrorist financing, and recycling of illegally obtained money.
In this context our valuable clients are requested to cooperate with us for a flawless KYC process and produce genuine and acceptable identity and address proofs. Reliance Securities is committed to pursuing its Anti - Money Laundering strategies, goals and objectives on an ongoing basis and maintaining an effective Anti - Money Laundering program for its business that reflects the best practices for a diversified, retail financial services firm.
For further insights please refer to our website : www.plindia.com
RISK DISCLOSURE DOCUMENT [FOR CAPITAL MARKET AND DERIVATIVES SEGMENTS] This document contains important information on trading in Equities/Derivatives Segments of the stock exchanges. All prospective constituents should read this document before trading in Equities/Derivatives Segments of the Exchanges.
Stock exchanges/SEBI does neither singly or jointly and expressly nor impliedly guarantee nor make any representation concerning the completeness, the adequacy or accuracy of this disclosure document nor have Stock exchanges /SEBI endorsed or passed any merits of participating in the trading segments. This brief statement does not disclose all the risks and other significant aspects of trading. In the light of the risks involved, you should undertake transactions only if you understand the nature of the relationship into which you are entering and the extent of your exposure to risk.
You must know and appreciate that trading in Equity shares, derivatives contracts or other instruments traded on the Stock Exchange, which have varying element of risk, is generally not an appropriate avenue for someone of limited resources/limited investment and/ or trading experience and low risk tolerance. You should therefore carefully consider whether such trading is suitable for you in the light of your financial condition. In case you trade on Stock exchanges and suffer adverse consequences or loss, you shall be solely responsible for the same and Stock exchanges/its Clearing Corporation and/or SEBI shall not be responsible, in any manner whatsoever, for the same and it will not be open for you to take a plea that no adequate disclosure regarding the risks involved was made or that you were not explained the full risk involved by the concerned stock broker.
The constituent shall be solely responsible for the consequences and no contract can be rescinded on that account. You must acknowledge and accept that there can be no guarantee of profits or no exception from losses while executing orders for purchase and/or sale of a derivative contract being traded on Stock exchanges.
It must be clearly understood by you that your dealings on Stock exchanges through a stock broker shall be subject to your fulfilling certain formalities set out by the stock broker, which may inter alia include your filling the know your client form, reading the rights and obligations, do’s and don’ts, etc., and are subject to the Rules, Byelaws and Regulations of relevant Stock exchanges, its Clearing Corporation, guidelines prescribed by SEBI and in force from time to time and Circulars as may be issued by Stock exchanges or its Clearing Corporation and in force from time to time. Stock exchanges does not provide or purport to provide any advice and shall not be liable to any person
who enters into any business relationship with any stock broker of Stock exchanges and/or any third party based on any information contained in this document. Any information contained in this document must not be construed as business advice. No consideration to trade should be made without thoroughly understanding and reviewing the risks involved in such trading. If you are unsure, you must seek professional advice on the same. In considering whether to trade or authorize someone to trade for you, you should be aware of or must get acquainted with the following:-
Basic Risk Risk of Higher Volatility:
Volatility refers to the dynamic changes in price that a security/derivatives contract undergoes when trading activity continues on the Stock Exchanges. Generally, higher the volatility of a security/derivatives contract, greater is its price swings. There may be normally greater volatility in thinly traded securities / derivatives contracts than in active securities /derivatives contracts. As aresult of volatility, your order may only be partially executed or not executed at all, or the price at which your order got executed may be substantially different from the last traded price or change substantially thereafter, resulting in notional or real losses.
Risk of Lower Liquidity: Liquidity refers to the ability of market participants to buy and/or sell securities / derivatives contracts expeditiously at a competitive price and with minimal price difference. Generally, it is assumed that more the numbers of orders available in a market, greater is the liquidity. Liquidity is important because with greater liquidity, it is easier for investors to buy and/or sell securities / derivatives contracts swiftly and with minimal price difference, and as a result, investors are more likely to pay or receive a competitive price for securities / derivatives contracts purchased or sold. There may be a risk of lower liquidity in some securities / derivatives contracts as compared to active securities / derivatives contracts. As a result, your order may only be partially executed, or may be executed with relatively greater price difference or may not be executed at all.
Buying or selling securities / derivatives contracts as part of a day trading strategy may also result into losses, because in such a situation, securities / derivatives contracts may have to be sold / purchased at low / high prices, compared to the expected price levels, so as not to have any open position or obligation to deliver or receive a security / derivatives contract.
Risk of Wider Spreads:
Spread refers to the difference in best buy price and best sell price. It represents the differential between the price of buying a security / derivatives contract and immediately selling it or vice versa. Lower liquidity and higher volatility may result in wider than normal spreads for less liquid or illiquid securities / derivatives contracts. This in turn will hamper better price formation.
Risk-reducing orders:
The placing of orders (e.g., “stop loss” orders, or “limit” orders) which are intended to limit losses to certain amounts may not be effective many a time because rapid movement in market conditions may make it impossible to execute such orders. “market” order will be executed promptly, subject to availability of orders on opposite side, without regard to price and that, while the customer may receive a prompt execution of a “market” order, the execution may be at available prices of outstanding orders, which satisfy the order quantity, on price time priority. It may be understood that these prices may be significantly different from the last traded price or the best price in that security / derivatives contract.
“limit” order will be executed only at the “limit” price specified for the order or a better price. However, while the customer receives price protection, there is a possibility that the order may not be executed at all. “stop loss” order is generally placed “away” from the current price of a stock / derivatives contract, and such order gets activated if and when the security / derivatives contract reaches, or trades through, the stop price. Sell stop orders are entered ordinarily below the current price, and buy stop orders are entered ordinarily above the current price. When the security/ derivatives contract reaches the pre -determined price, or trades through such price, the stop loss order converts to a market/limit order and is executed at the limit or better. There is no assurance therefore that the limit order will be executable since a security / derivatives contract might penetrate the pre-determined price, in which case, the risk of such order not getting executed arises, just as with a regular limit order.
Risk of News Announcements: News announcements that may impact the price of stock / derivatives contract may occur during trading, and when combined with lower liquidity and higher volatility, may suddenly cause an unexpected positive or negative movement in the price of the security / contract.
Risk of Rumors:
Rumors about companies / currencies at times float in the market through word of mouth, newspapers, websites or news agencies, etc. The investors should be wary of and should desist from acting on rumors.
System Risk: High volume trading will frequently occur at the market opening and before market close. Such high volumes may also occur at any point in the day. These may cause delays in order execution or confirmation. During periods of volatility, on account of market participants continuously modifying their order quantity or prices or placing fresh orders, there may be delays in order execution and its confirmations.
Under certain market conditions, it may be difficult or impossible to liquidate a position in the market at a reasonable price or at all, when there are no outstanding orders either on the buy side or the sell side, or if trading is halted in a security / derivatives contract due to any action on account of unusual trading activity or security / derivatives contract hitting circuit filters or for any other reason.
System/Network Congestion: Trading on exchanges is in electronic mode, based on satellite/leased line based communications, combination of technologies and computer systems to place and route orders. Thus, there exists a possibility of communication failure or system problems or slow or delayed response from system or trading halt, or any such other problem/glitch whereby not being able to establish access to the trading system/network, which may be beyond control and may result in delay in processing or not processing buy or sell orders either in part or in full. You are cautioned to note that although these problems may be temporary in nature, but when you have outstanding open positions or unexecuted orders, these represent a risk because of your obligations to settle all executed transactions.
Derivative Segment Related Risks As far as Derivatives segments are concerned, please note and get yourself acquainted with the following additional features; Effect of “Leverage” or “Gearing” In the derivatives market, the amount of margin is small relative to the value of the derivatives contract so the transactions are ‘leveraged’ or ‘geared’. Derivatives trading, which is conducted with a relatively small amount of margin, provides the possibility of great profit or loss in comparison with the principal investment/ margin amount. But transactions in derivatives carry a high degree of risk. You should therefore completely understand the following statements before actually trading in derivatives and also trade with caution while taking into account one’s circumstances, financial resources, etc. If the prices move against you, you may lose a part of or whole margin amount in a relatively short period of time. Moreover, the loss may exceed the original margin amount.
Futures trading involve daily settlement of all positions. Every day the open positions are marked to market based on the closing level of the index / derivatives contract. If the contract has moved against you, you will be required to deposit the amount of loss (notional) resulting from such movement. This amount will have to be paid within a stipulated time frame, generally before commencement of trading on next day. If you fail to deposit the additional amount by the deadline or if an outstanding debt occurs in your account, the stock broker may liquidate a part of or the whole position or substitute securities. In this case, you will be liable for any losses incurred due to such close-outs.
Under certain market conditions, an investor may find it difficult or impossible to execute transactions. For example, this situation can occur due to factors such as illiquidity i.e. when there are insufficient bids or offers or suspension of trading due to price limit or circuit breakers etc. In order to maintain market stability, the following steps may be adopted: changes in the margin rate, increases in the cash margin rate or others. These new measures may also be applied to the existing open interests. In such conditions, you will be required to put up additional margins or reduce your positions. You must ask your broker to provide the full details of derivatives contracts you plan to trade i.e. the contract specifications and the associated obligations.
Currency specific risks: The profit or loss in transactions in foreign currency-denominated contracts, whether they are traded in your own or another jurisdiction, will be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example when a currency is deregulated or fixed trading bands are widened. Currency prices are highly volatile. Price movements for currencies are influenced by, among other things: changing supply demand relationships; trade, fiscal, monetary, exchange control programs and policies of governments; foreign political and economic events and policies; changes in national and international interest rates and inflation; currency devaluation; and sentiment of the market place. None of these factors can be controlled by any individual advisor and no assurance can be given that an advisor’s advice will result in profitable trades for a participating customer or that a customer will not incur losses from such events.
Risk of Option holders: An option holder runs the risk of losing the entire amount paid for the option in a relatively short period of time. This risk reflects the nature of an option as a wasting asset which becomes worthless when it expires. An option holder who neither sells his option in the secondary market nor exercises it prior to its expiration will necessarily lose his entire investment in the option. If the price of the underlying does not change in the anticipated direction before the option expires, to an extent sufficient to cover the cost of the option, the investor may lose all or a significant part of his investment in the option.
The Exchanges may impose exercise restrictions and have absolute authority to restrict the exercise of options at certain times in specified circumstances.
Risks of Option Writers: If the price movement of the underlying is not in the anticipated direction, the option writer runs the risks of losing substantial amount.
The risk of being an option writer may be reduced by the purchase of other options on the same underlying interest and thereby assuming a spread position or by acquiring other types of hedging positions in the options markets or other markets. However, even where the writer has assumed a spread or other hedging position, the risks may still be significant. A spread position is not necessarily less risky than a simple ‘long’ or ‘short’ position.
Transactions that involve buying and writing multiple options in combination, or buying or writing options in combination with buying or selling short the underlying interests, present additional risks to investors. Combination transactions, such as option spreads, are more complex than buying or writing a single option. And it should be further noted that, as in any area of investing, a complexity not well understood is, in itself, a risk factor. While this is not to suggest that combination strategies should not be considered, it is advisable, as is the case with all investments in options, to consult with someone who is experienced and knowledgeable with respect to the risks and potential rewards of combination transactions under various market circumstances.
Trading Through Wireless Technology/ Smart Order Routing or Any Other Technology: Any additional provisions defining the features, risks, responsibilities, obligations and liabilities associated with securities trading through wireless technology/ smart order routing or any other technology should be brought to the notice of the client by the stock broker.
General: The term ‘constituent’ shall mean and include a client, a customer or an investor, who deals with a stock broker for the purpose of acquiring and/or selling of securities / derivatives contracts through the mechanism provided by the Exchanges. The term ‘stock broker’ shall mean and include a stock broker, sub-broker/ Authorized Person, who has been admitted as such by the Exchanges and who holds a registration certificate from SEBI.
RISK DISCLOSURE DOCUMENT [FOR COMMODITY DERIVATIVES SEGMENTS] The Exchange / Securities and Exchange Board of India (SEBI) does not singly or jointly, expressly or impliedly, guarantee nor make any representation concerning the completeness, the adequacy or accuracy of this disclosure documents nor has the Exchange / endorsed or passed any merits of participating in the Commodity Derivatives market/trading. This brief statement does not disclose all of the risks and other significant aspects of trading. You should, therefore, study derivatives trading carefully before becoming involved in it.
In the light of the risks involved, you should undertake transactions only if you understand the nature of the contractual relationship into which you are entering and the extent of your exposure to risk. You must know and appreciate that investment in commodity futures contracts/ derivatives or other instruments traded on the Commodity Exchange(s), which have varying element of risk, is generally not an appropriate avenue for someone of limited resources/ limited investment and/ or trading experience and low risk tolerance. You should, therefore, carefully consider whether such trading is suitable for you in the light of your financial condition. In case, you trade on the Exchange and suffer adverse consequences or loss, you shall be solely responsible for the same and the Exchange, its Clearing House and/ or SEBI shall not be responsible, in any manner whatsoever, for the same and it will not be open for you to take the plea that no adequate disclosure regarding the risks involved was made or that you were not explained the full risk involved by the concerned member. The Client shall be solely responsible for the consequences and no contract can be rescinded on that account.
You must acknowledge and accept that there can be no guarantee of profits or no exception from losses while executing orders for purchase and/or sale of a commodity derivatives being traded on the Exchange. It must be clearly understood by you that your dealings on the Exchange through a member shall be subject to your fulfilling certain formalities set out by the member, which may, inter alia, include your filing the know your client form, client registration form, execution of an agreement etc. and are subject to Rules, Byelaws and Business Rules of the Exchange and its Clearing Corporation/Clearing House, guidelines prescribed by SEBI from time to time and circulars as may be issued by the Exchange or its Clearing Corporation/Clearing House from time to time.
The Exchange does not provide or purport to provide any advice and shall not be liable to any person who enters into any business relationship with any member of the Exchange and/ or third party based on any information contained in this document. Any information contained in this document must not be construed as business advice/ investment advice.
No consideration to trade should be made without thoroughly understanding and reviewing the risks involved in such trading. If you are unsure, you must seek professional advice on the same. In considering whether to trade, you should be aware of or must get acquainted with the following; Basic Risks involved in the trading of Commodity Futures Contracts and other Commodity Derivatives Instruments on the Exchange.
Risk of Higher Volatility Volatility refers to the dynamic changes in price that commodity derivative contracts undergo when trading activity continues on the Commodity Exchange. Generally, higher the volatility of a commodity derivatives contract, greater is its price swings. There may be normally greater volatility in thinly traded commodity derivatives contracts than in actively traded commodities/ contracts. As a result of volatility, your order may only be partially executed or not executed at all, or the price at which your order got executed may be substantially different from the last traded price or change substantially thereafter, resulting in real losses.
Risk of Lower Liquidity Liquidity refers to the ability of market participants to buy and/ or sell commodity derivative contract expeditiously at a competitive price and with minimal price difference. Generally, it is assumed that more the number of orders available in a market, greater is the liquidity. Liquidity is important because with greater liquidity, it is easier for investors to buy and/ or sell commodity derivatives contracts swiftly and with minimal price difference and as a result, investors are more likely to pay or receive a competitive price for commodity derivative contracts purchased or sold. There may be a risk of lower liquidity in some commodity derivative contracts as compared to active commodity derivative contracts. As a result, your order may only be partially executed, or may be executed with relatively greater price difference or may not be execute at all. Buying/ Selling without intention of giving and/ or taking delivery of certain commodities may also result into losses, because in such a situation, commodity derivative contracts may have to be squared-off at a low/ high prices, compared to the expected price levels, so as not to have any obligation to deliver/ receive such commodities.
Risk of Wider Spreads Spread refers to the difference in best buy price and best sell price. It represents the differential between the price of buying a commodity derivative and immediately selling it or vice versa. Lower liquidity and higher volatility may result in wider than normal spreads for less liquid or illiquid commodities/ commodity derivatives contracts. This in turn will hamper better price formation.
Risk-reducing orders Most of the Exchanges have a facility for investors to place "limit orders", "stop loss orders" etc. Placing of such orders (e.g. "stop loss" orders or "limit" orders) which are intended to limit losses to certain amounts may not be effective many a time because rapid movement in market conditions may make it impossible to execute such orders.
A "market" order will be executed promptly, subject to availability of orders on opposite side, without regard to price and that while the customer may receive a prompt execution of a "market" order, the execution may be at available prices of outstanding orders, which satisfy the order quantity, on price time priority. It may be understood that these prices may be significantly different from the last traded price or the best price in that commodity derivatives contract.
A "limit" order will be executed only at the "limit" price specified for the order or a better price. However, while the client received price protection, there is a possibility that the order may not be executed at all. A stop loss order is generally placed "away" from the current price of a commodity derivatives contract, and such order gets activated if and when the contract reaches, or trades through, the stop price. Sell stop orders are entered ordinarily below the current price, and buy stop orders are entered ordinarily above the current price. When the contract approaches pre-determined price, or trades through such price, the stop loss order converts to a market/limit order and is executed at the limit or better. There is no assurance therefore that the limit order will be executable since a contract might penetrate the pre- determined price, in which case, the risk of such order not getting executed arises, just as with a regular limit order.
Risk of News Announcements Traders/Manufacturers make news announcements that may impact the price of the commodities and/or commodity derivatives contracts. These announcements may occur during trading and when combined with lower liquidity and higher volatility may suddenly cause an unexpected positive or negative movement in the price of the commodity/ commodity derivatives contract.
Risk of Rumours Rumours about the price of a commodity at times float in the market through word of mouth, newspaper, websites or news agencies, etc., the investors should be wary of and should desist from acting on rumours.
System Risk High volume trading will frequently occur at the market opening and before market close. Such high volumes may also occur at any point in the day. These may cause delays in order execution or confirmation. During periods of volatility, on account of market participants continuously modifying their order quantity or prices or placing fresh orders, there may be delays in execution of order and its confirmation. Under certain market conditions, it may be difficult or impossible to liquidate a position in the market at a reasonable price or at all, when there are no outstanding orders either on the buy side or the sell side, or if trading is halted in a commodity due to any action on account of unusual trading activity or price hitting circuit filters or for any other reason.
System/ Network Congestion Trading on the Exchange is in electronic mode, based on satellite/ leased line communications, combination of technologies and computer systems to place and route orders. Thus, there exists a possibility of communication failure or system problems or slow or delayed response from system or trading halt, or any such other problem/glitch whereby not being able to establish access to the trading system/network, which may be beyond the control of and may result in delay in processing or not processing buy or sell orders either in part or in full. You are cautioned to note that although these problems may be temporary in nature, but when you have outstanding open positions or unexecuted orders, these represent a risk because of your obligations to settle all executed transactions.
As far as Futures Commodity Derivatives are concerned, please note and get yourself acquainted with the following additional features:-
Effect of "Leverage" or "Gearing": The amount of margin is small relative to the value of the commodity derivatives contract so the transactions are 'leveraged' or 'geared'. Commodity Derivatives trading, which is conducted with a relatively small amount of margin, provides the possibility of great profit or loss in comparison with the principal investment amount. But transactions in commodity derivatives carry a high degree of risk. You should therefore completely understand the following statements before actually trading in commodity derivatives contracts and also trade with caution while taking into account one's circumstances, financial resources, etc. Trading in Futures Commodity Derivatives involves daily settlement of all positions. Every day the open positions are marked to market based on the closing price. If the closing price has moved against you, you will be required to deposit the amount of loss (notional) resulting from such movement. This margin will have to be paid within a stipulated time frame, generally before commencement of trading on the next day. If you fail to deposit the additional margin by the deadline or if an outstanding debt occurs in your account, the Member of the Exchange may liquidate/square-up a part of or the whole position. In this case, you will be liable for any losses incurred due to such square-up/ Close Outs.
Under certain market conditions, an Investor may find it difficult or impossible to execute the transactions. For example, this situation can occur due to factors such as illiquidity i.e. when there are insufficient bids or offers or suspension of trading due to price limit or circuit breakers etc.
Steps, such as, changes in the margin rate, increase in the cash margin rate etc. may be adopted in order to maintain market stability. These new measures may be applied to the existing open interests. In such conditions, you will be required to put up additional margins or reduce your positions. You must ask your Member of the Exchange to provide the full details of the commodity derivatives contracts you plan to trade i.e. the contract specifications and the associated obligations.
TRADING THROUGH WIRELESS TECHNOLOGY OR ANY OTHER TECHNOLOGY: Any additional provisions defining the features, risks, responsibilities, obligations and liabilities associated with commodities trading through wireless technology or any other technology should be brought to the notice of the client by the Member.
GENERAL Deposited cash and property:
You should familiarize yourself with the protections accorded to the money or other property you deposit particularly in the event of a firm become insolvent or bankrupt. The extent to which you may recover your money or property may be governed by specific legislation or local rules. In some jurisdictions, property, which has been specifically identifiable as your own, will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall. In case of any dispute with the Member of the Exchange, the same shall be subject to arbitration as per the Rules, Bye-laws and Business Rules of the Exchange.
Commission and other charges: Before you begin to trade, you should obtain a clear explanation of all commissions, fees and other charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss. For rights and obligations of the Members/Authorised Persons/ clients, please refer page no. 20-29. The term ‘Constituent’ shall mean and include a Client, a Customer or an Investor, who deals with a member for the purpose of trading in the commodity derivatives through the mechanism provided by the Exchange. The term ‘member’ shall mean and include a Trading Member or a Broker, who has been admitted as such by the Exchange and got a Unique Member Code from SEBI.
GUIDANCE NOTE - DO’s AND DON’Ts FOR TRADING ON THE EXCHANGE(S) FOR INVESTORS Before you Begin to TradeEnsure that you deal with and through only SEBI registered intermediaries. You may check their SEBI registration certificate number from the list available on the Stock exchanges [BSE: www.bseindia.com; NSE: www.nseindia.com; MCX: www.mcxindia.com] and SEBI [www.sebi.gov.in.] Ensure that you fill the KYC form completely and strike off the blank fields in the KYC form. Ensure that you have read all the mandatory documents viz. Rights and Obligations, Risk Disclosure Document, Policy and Procedure document of the stock broker.
Ensure to read, understand and then sign the voluntary clauses, if any, agreed between you and the stock broker. Note that the clauses as agreed between you and the stock broker cannot be changed without your consent.
Get a clear idea about all brokerage, commissions, fees and other charges levied by the broker on you for trading and the relevant provisions/ guidelines specified by SEBI/Stock exchanges. Obtain a copy of all the documents executed by you from the stock broker free of charge. In case you wish to execute Power of Attorney (POA) in favour of the Stock broker, authorizing it to operate your bank and demat account, please refer to the guidelines issued by SEBI/Exchanges in this regard.
Transactions and Settlements The stock broker may issue electronic contract notes (ECN) if specifically authorized by you in writing. You should provide your email id to the stock broker for the same. Don’t opt for ECN if you are not familiar with computers.
Don’t share your internet trading account’s password with anyone. Don’t make any payment in cash to the stock broker.
Make the payments by account payee cheque in favour of the stock broker. Don’t issue cheques in the name of sub- broker. Ensure that you have a documentary proof of your payment/deposit of securities with the stock broker, stating date, scrip, quantity, towards which bank/ demat account such money or securities deposited and from which bank/ demat account.
Note that facility of Trade Verification is available on stock exchanges’ websites, where details of trade as mentioned in the contract note may be verified. Where trade details on the website do not tally with the details mentioned in the contract note, immediately get in touch with the Investors Grievance Cell of the relevant Stock exchange.
In case you have given specific authorization for maintaining running account, payout of funds or delivery of securities (as the case may be), may not be made to you within one working day from the receipt of payout from the Exchange. Thus, the stock broker shall maintain running account for you subject to the following conditions:
Such authorization from you shall be dated, signed by you only and contains the clause that you may revoke the same at any time. The actual settlement of funds and securities shall be done by the stock broker, at least once in a calendar quarter or month, depending on your preference. While settling the account, the stock broker shall send to you a ‘statement of accounts’ containing an extract from the client ledger for funds and an extract from the register of securities displaying all the receipts/deliveries of funds and securities.The statement shall also explain the retention of funds and securities and the details of the pledged shares, if any. On the date of settlement, the stock broker may retain the requisite securities/funds towards outstanding obligations and may also retain the funds expected to be required to meet derivatives margin obligations for next 5 trading days, calculated in the manner specified by the exchanges. In respect of cash market transactions, the stock broker may retain entire pay-in obligation of funds and securities due from clients as on date of settlement and for next day’s business, he may retain funds/securities/margin to the extent of value of transactions executed on the day of such settlement in the cash market.
You need to bring any dispute arising from the statement of account or settlement so made to the notice of the stock broker in writing preferably within 7 (seven) working days from the date of receipt of funds/securities or statement, as the case may be. In case of dispute, refer the matter in writing to the Investors Grievance Cell of the relevant Stock exchanges without delay.In case you have not opted for maintaining running account and pay-out of funds/securities is not received on the next working day of the receipt of payout from the exchanges, please refer the matter to the stock broker. In case there is dispute, ensure that you lodge a complaint in writing immediately with the Investors Grievance Cell of the relevant Stock exchange. Please register your mobile number and email id with the stock broker, to receive trade confirmation alerts/ details of the transactions through SMS or email, by the end of the trading day, from the stock exchanges.
In case of Termination of Trading Membership In case, a stock broker surrenders his membership, is expelled from membership or declared a defaulter; Stock exchanges gives a public notice inviting claims relating to only the “transactions executed on the trading system” of Stock exchange, from the investors. Ensure that you lodge a claim with the relevant Stock exchanges within the stipulated period and with the supporting documents. Familiarize yourself with the protection accorded to the money and/or securities you may deposit with your stock broker, particularly in the event of a default or the stock broker’s insolvency or bankruptcy and the extent to which you may recover such money and/or securities may be governed by the Bye laws and Regulations of the relevant Stock exchange where the trade was executed and the scheme of the Investors’ Protection Fund in force from time to time.
Disputes/ Complaints Please note that the details of the arbitration proceedings, penal action against the brokers and investor complaints against the stock brokers are displayed on the website of the relevant Stock exchange. In case your issue/problem/grievance is not being sorted out by concerned stock broker/sub- broker then you may take up the matter with the concerned Stock exchange. If you are not satisfied with the resolution of your complaint then you can escalate the matter to SEBI.
Note that all the stock broker/sub-brokers have been mandated by SEBI to designate an e- mail ID of the grievance redressal division/compliance officer exclusively for the purpose of registering complaints.
POLICIES & PROCEDURES
(Pursuant to SEBI’s Circular MISRD/SE/Cir-19/2009 dated December 3, 2009) This Policy and Procedure document of Prabhudas Lilladher Private Limited (PL) contains important information on trading in Equities, F&O and Currency Derivative segment(s) of the Exchange(s) through PL. All clients should read this document before trading. Since the dimensions of Securities Trading are dynamic and ever-changing, Clients are further advised to keep themselves updated with the changing environment and Regulatory provisions, frame work and environment.
Refusal of Orders for penny stocks: Penny / illiquid stocks are generally considered to be highly speculative and high risk bearing because of their lack of liquidity, large bid-ask spread, small capitalization and limited compliance and disclosure. PL does not advice or encourages trade in penny stocks and may refuse to execute orders in such stocks without any reasons being given to client.
The penny stock or illiquid stock would be identified based on, including but not limited to, following criteria: Illiquid stock identified by the Stock exchange(s) on periodic basis. Any other stock which PL considers illiquid based on its own criteria. Under exceptional circumstances and considering merits on case to case basis, trading in penny stocks may be allowed to clients subject to pre-conditions which may include upfront funds/securities pay-in, verification of client holdings, intentions and bonafied reasons given by the clients, trading history of the client, client’s traded volumes vis-à-vis market volumes. If it is observed that client(s) is/are indulging in trading activities only in penny stocks/ Illiquid stock(s),the client account may be suspended without any reasons being given to the client. The client agrees that the losses, if any, on account of such refusal or due to delay caused shall be borne exclusively by the client alone.
Setting up client’s exposure limits: Client Exposure Limits shall be set up based on various factors including Client specific parameters like risk bearing capacity, margins received, past track record of the Client, etc., recommendations from Sub-Broker / Authorized Person / Remiser and general parameters like market volatility, global scenario, etc. PL may from time to time impose and vary limits / margins requirement on the orders that the client can place through PL’s trading system (including exposure/margin limits, turnover limits, limits as to the number, value and/or kind of securities in respect of which orders can be placed etc.). The client is aware and agrees that PL may need to vary or reduce the limits or impose new limits urgently on the basis of PL’s risk perception and other factors considered relevant by PL including but not limited to limits on account of Exchange/ SEBI directions / limits (such as broker level / market level limits in security specific / volume specific exposures etc.) and PL may be unable to inform the client of such variation, reduction or imposition in advance. The client agrees that PL shall not be responsible for such variation, reduction or imposition or the client’s inability to route any order through PL’s trading system on account of any such variation, reduction or imposition of limits.
The client further agrees that PL may at anytime, at its sole discretion and without prior notice prohibit or restrict the client’s ability to place orders or trade in securities through PL or it may subject any order placed by the client to a review before its entry into the trading systems and may refuse to execute / allow execution of orders due to the reason of lack of margin/ securities or the order being outside the limits set by PL / exchange / SEBI and any other such reasons which PL may deem appropriate in the circumstances. The client agrees that the losses, if any on account of such refusal, or due to delay caused by such review, shall be borne exclusively by the client alone. The margin requirement of client may be changed due to but not limited to, the following factors, - market volatility, risk management policy of PL. The client shall monitor his / her / its position (dealings / trades and valuation of security) on his / her / its own and provide the required / deficit margin / security forthwith as required from time to time whether or not any margin call or such other separate communication to that effect is sent by PL to the client and /or whether or not such communication is received by the client.
The margin / security deposited by the client with PL are not eligible for any interest. PL is entitled to include / appropriate any /all pay out of funds & / or securities towards margin / security without requiring specific authorizations for each payout. PL is entitled to transfer funds&/or securities from client’s account for one exchange & /or one segment of the exchange to his / her /its account for another exchange & /or another segment of the same exchange whenever applicable and found necessary by PL. The client also agrees and authorises PL to treat /adjust his / her /its margin / security lying in one exchange & / or one segment of the exchange / towards the margin / security / pay in requirements of another exchange & / or another segment of the exchange. PL is entitled to withhold the securities received from the exchange as payout if there is a debit balance in the client ledger account. PL is entitled to disable / freeze the account & / or trading facility / any other service facility, if, in the opinion of PL, the client has committed a crime / fraud or has acted in contradiction of this documents/Rights and Obligations or / is likely to evade / violate any laws, rules, regulations, directions of a lawful authority whether Indian or foreign or if PL so apprehends.
Applicable brokerage rate: PL is entitled to charge brokerage rate within the limits imposed by SEBI/Stock Exchanges from time to time. The brokerage to be charged by PL shall be exclusive of all statutory levies such as services Tax, Stamp duty, SEBI turnover fees, Securities Transaction Tax and other taxes and transaction expenses as they exist from time to time and as they apply to the account and transactions of the Clients and for the services rendered to the Clients.
In order to provide competitive advantage and scale of economy and operations to the clients, PL may modify the Brokerage Rate Structure as mentioned / made available on the Website / portal of PL and as may be mutually agreed and modified from time to time. It shall however be ensured that the Brokerage shall not exceed maximum permissible under the applicable regulations. Any revision in brokerage will be made after giving due notice by way of communication through email.
Imposition of penalty/delayed payment charges by either party specifying the rate and the period: The client agrees that any amounts which are overdue from the client towards trading or on account of any other reason (including shortfall in margin requirement or margin provided in form of collateral in lieu of cash margin) to PL will be charged with penalty / delayed payment charges(DPC) at such rates as may be determined by PL. The client agrees to pay to PL brokerage, all taxes, duties levies imposed by regulatory authorities, transaction expenses, incidental expenses such as postage, courier etc. as they apply from time to time to the client’s account / transactions / services that the client avails from PL. The penalty /DPC imposed by PL shall be debited to the account/ ledger of the clients. Any change / revision in the scale of penalty / delayed payment charges will be informed to the clients through email. If PL has to pay fine/bear any penalty levied by any authority in connection with /as consequence of any orders/trades/deals/actions of client, the same shall be recovered from the client. DPC will be levied based on the end of day debits in client ledger.
Client agrees that his/her/its ledger postings with PL occur but not limited to margins due on T day, derivative obligations (other than margin) due on T+1 day, cash segment bills due on T+2 day, early funds pay-in due on date of demand, funds receipt due on date of receipt in PL bank account and funds pay-out due on date of initiating payment by PL which shall have a bearing on DPC. The right to sell Clients’ securities or close Client’s open positions, without giving any kind of notice to the Client, on account of non-payment of Client’s dues:
PL will have the right to close out all open positions and/ or sell client’s securities and/or shares held as collateral, without any notice to clients, as and when the client defaults in his settlement/sale delivery/margin/MTM obligations in any segment of the exchanges. It is advised to the client to monitor his positions at all times and replenish any shortfall so arising. PL reserves the right to square off any position during the day in cash as well as F&O segments and/or liquidate collaterals due to sudden fall in market price of the shares in which position is taken or in diminution in the value of collaterals, without prior intimation to the client. The client shall be solely responsible for any kind of losses incurred due to such square off / liquidation. In case the payment of the margin / security is made by the client through a bank instrument, PL shall be at liberty to give the benefit / credit for the same only on the realization of the funds from the said bank instrument etc. at the absolute discretion of PL. Where the margin/security is made available by way of securities, PL is empowered to decline its acceptance as margin/security &/or to accept it at such reduced value as PL may deem fit by applying haircuts or by valuing it by marking it to market or by any other method as PL may deem fit in its absolute discretion. Client’s securities /collateral should not be used for any purpose other than meeting the respective client margin/ledger debits. PL has the right but not the obligation to adjust the Securities/Collateral deposited by the Client against his / her / its settlement / margin obligation. The client shall ensure replenishment of Collateral on account of diminution of values of Collaterals on account of non-cash corporate action initiated by the concerned company whose securities are deposited by the client with PL as Collateral.
In the event of diminution of values of Securities/Collaterals, PL has the right but not the obligation to square off / close outs the open position of the Client. Any and all losses and financial charges on account of such liquidation/closing out shall be charged to and borne by the client. PL has the right but not the obligation, to cancel all pending orders and to sell / close / liquidate all open positions / Securities / shares at the predefined square off time or when Mark to Market (M-T-M) percentage breaches/violates stipulated percentage OR Margin available breaches/violates stipulated minimum requirement as communicated from time to time, whichever is earlier PL will have sole discretion to decide referred stipulated margin percentage depending upon the market condition. In the event of such square off, the client agrees to bear all the losses based on actual executed prices. In case open position (i.e. short / long) gets converted into delivery due to non ‘square off because of any reason whatsoever, the client agrees to provide securities / funds to fulfill the pay-in obligation failing which the client will have to face auction or internal close out; in addition to this the client will have to pay penalties and charges levied by exchange in actual and losses, if any. Without prejudice to the foregoing, the client shall also be solely liable for all and any penalties and charges levied by the exchange(s). PL is entitled to prescribe the date and time by which the margin / security is to be made available and PL may refuse to accept any payments in any form after such deadline for margin /security expires.
Notwithstanding anything to the contrary in the documents/Rights and Obligations or elsewhere, if the client fails to maintain or provide the required margin / fund/ security or to meet the funds / margins / securities pay in obligations for the orders / trades/deals of the client within the prescribed time and form, PL shall have the right without any further notice or communication to the client to take any one or more of the following steps:
To withhold any payout of funds / securities. To withhold / disable the trading / dealing facility to the client. To liquidate one or more security(ies) of the client by selling the same in such manner and at such rate which PL may deem fit in its absolute discretion. It is agreed and understood by the client that securities here includes securities which are pending delivery receipt. To liquidate / square off partially or fully the position of sale & / or purchase in any one or more securities / contracts in such manner and at such rate which PL may decide in its absolute discretion. To take any other steps (including liquidation of client collateral, in any form) which in the given circumstances, PL may deem fit. The client agrees that the loss(s) if any, on account of any one or more steps as enumerated herein above being taken by PL, shall be borne exclusively by the client alone and agrees not to question the reasonableness, requirements, timing, manner, form, pricing etc., which are chosen by PL.
Shortages in obligations arising out of internal netting of trades: Internal shortage means one client has failed to give the delivery of securities sold, which has resulted in short delivery to other clients of PL. PL shall not be obliged to deliver any securities or pay any money to the client unless and until the same has been received by PL from the exchange, the clearing corporation /clearing house and the client has fulfilled his/ her /its obligations first. The policy and procedure for settlement of shortages in obligations arising out of internal netting of trades is as under:
NSE: PL will close-out the short deliveries at NSE based on NSE exchange formula or based on the internal close-out policy applicable from time to time.
BSE: PL at its discretion may request BSE to conduct a self-auction the shares not delivered by a Client. Client agrees that PL undertakes best efforts but do not have the obligation to request for self-auction to BSE. If BSE grant any request so made, normal auction procedure will be followed. Any short receipt of shares from BSE in relevant auction pay-out shall be closed-out as per BSE Rules & Regulations. If no request is given to BSE to auction a short delivery, the same shall be closed out based on the internal close out policy applicable from time to time. Internal Close-out Policy: Internal Close out shall be done at the highest price prevailing in the Exchange from the day of trading till the auction day or 10% above the official closing price on the auction day, whichever is higher. Conditions under which a Client may not be allowed to take further position or the broker may close the existing position of a Client: While allowing/disallowing further positions or closing an existing position, PL may exercise its discretion subject to the terms mentioned in ‘Rights & Obligations’ document, ‘Risk Disclosure Document’, Contract Note and rules, regulations and guidelines issued by SEBI/Stock Exchanges from time to time. PL may close out part / entire open position of the defaulting Client without any prior notice where Client default payment of margins/MTM shortages beyond T+1 day.
Further, PL may not allow client to take further position in the following cases: In the event where overall position in any scrip /derivative contract has reached the limit prescribed by regulators/exchanges. PL has the right to stop/block the client to trade in case there is a debit balance in his/her account. PL may disallow the client to take a position in certain scrips if instructed by the Risk Management department. Reasonable doubt as to the transaction being cross trade, circular trade, fraud, price manipulation or market rigging.
Temporarily suspending or closing a client’s account at the client’s Request: Temporary Suspension Client may make a request in writing to PL’s CR team or through personalized login ID at PL’s website www.plclients.com or such other mode of communication as permitted by PL from time to time, to temporarily deactivate client’s account. On such request from client, the client account can be suspended temporarily. During suspension period, the market transaction will be prohibited. However client’s pending settlement can take place.
PL can withhold the payouts of client and suspend his trading account due to surveillance action or judicial or / and regulatory order/action requiring client suspension. If any documents including contract sent to a client at his address registered with PL through post or to the client’s email address registered with PL or otherwise, returned undelivered, then PL may, at its discretion, continue to suspend the client account of the client till the client provide to PL’s CR Team new address / new email id as per prevalent procedure of PL. Subject to the above conditions, client account can be re activated on the written request of the client only.
Closure of Broking Account A client may request in writing to PL’s CR team or through his personalized login id or such other approved means of communication to close his broking. On receipt of such closure request from client, the client account can be closed provided the client adheres to formalities for account closure including settlement of all dues in the account and closing of all open position. If the client wishes to again open a broking account then the client shall have to complete the KYC and account opening formalities once again.
Deregistering a client: PL may de-register a client in any of the following circumstances: If the action of the Client are prima facie illegal / improper or such as to manipulate the price of any securities or disturb the normal / proper functioning of the market, either alone or in conjunction with others. If there is any commencement of a legal process against the Client under any law in force; If the Client has found to be of unsound mind or of other disability by a competent authority and the findings is in force.
If the Client has been convicted by a Court of any offence involving moral turpitude On the death of the Client. If a receiver, administrator or liquidator has been appointed or allowed to be appointed for the Client. If the client being declared a defaulter by any of the regulatory bodies of the country or under any law being in force or In the event PL becoming aware of any proceedings being initiated against the client by any of the regulatory bodies of the country or under any law being in force or the client being involved in any criminal proceedings or any illegal business or the member becoming aware of the client’s past offences which are illegal or prohibited by the regulatory bodies of the country or under any law being in force. On the specific written directions of any statutory/legal authority/Regulatory Authority. If the Client becomes un-discharged insolvent or applies to be adjudicated as an insolvent If the Client being a partnership firm, has any steps taken by the Client and /or its partners for dissolution of the partnership;
If the Client have taken or suffered to be taken any action for its reorganization, liquidation or dissolution; If the Client has made any material misrepresentation of facts, including (without limitation) in relation to the Security; If there is reasonable apprehension that the Client is unable to pay its debts or the Client has admitted its inability to pay its debts, as they become payable. Inactive accounts: A Trading Account (irrespective whether having debit or credit balance) shall be classified as dormant account in case there are no transactions ( trading and/ or fund receipts) for a period in excess of 18 (Eighteen) calendar months from the last transaction date or from the date of first activation of the account whichever is later. The Dormant Accounts shall be frozen for further transaction(s). On classification of any account as dormant accounts as stated above, PL will inform the client through either direct phone or e-mail or letter to the contact details/address last available with PL within seven days of such classification. Policy for Return of Client’s assets: Funds and Securities lying in client’s account in excess of requirements shall be returned to the client at the time of the calendar quarterly/monthly settlement. In the event the client wishes to receive the funds/securities from such Trading Account before the calendar quarterly/monthly settlement, the Client shall make a request in writing which shall be submitted to PL. The funds/ securities from such Trading/Demat account shall be returned within 7 days from the date of receipt of request.
USEFUL DO’S AND DON’TS FOR THE CLIENTS Based on our long working experience as a Stockbroker & Depository Participant, we are of strong view that if client take few precautions to safeguard his funds/securities, unforeseen & undesirable situations may be avoided. We request you to meticulously follow the below mentioned instructions to avoid problems at a later stage.
DO’s Do ensure to receive a Transaction cum holding statement of your BO a/c every month if you have done any transaction during the month and once a quarter if there has been no transactions in your DP a/c. Please ensure that your holding and transaction statement is received and reconciled periodically. In case of any discrepancy, contact our DP Team immediately for clarification.
Do contact our CR team at 022-66322365 or [email protected] for any trade related queries and contact at [email protected] for your grievance for broking services, if any. Do contact our DP Team for queries / clarifications / grievances at 022-66322452/2453/2343; E mail: grievance- [email protected]
Do login at www.cdslindia.com to avail Easi facility of your DP a/c within 90 days from date of account opening failing which your Easi User ID will be cancelled by CDSL. Details of Easi User ID is available in our DP Welcome Letter while password would be received by you from CDSL directly at your e-mail ID registered with us at the time of account opening. (Easi facility is provided by your depository, CDSL, at their web-site whereby you can view transactions & holdings in your DP account through Internet 24x7.) Do ensure that complete & correct address is provided to us so as to avoid return of documents. Any change in your Correspondence / Permanent Address, Telephone / Mobile number, E-mail ID, Bank details etc. must be intimated to our Client Activation/DP Team immediately with modification form & relevant proofs. All documents including Delivery/Debit Instruction slip (DIS) booklet & transaction statements will be sent to your correspondence address directly by us.
Do ensure that the demat account has a nomination facility and it is advisable to appoint a nominee to facilitate your heirs in obtaining the securities in your demat account,on completion of the necessary procedures. To open and operate your demat account, copy of PAN card of all account holders is to be submitted to the DP along with original PAN card, for verification.
Register for CDSL’s SMART (SMS Alerts Related to Transactions) facility. If any unauthorized debit is noticed, the BO should immediately inform CDSL and the Main DP, in writing. An email may be sent to CDSL at [email protected]. Before granting Power of Attorney to anyone, to operate your demat account, carefully examine the scope and implications of powers being granted. Do ensure to give your own Mobile number & E-mail ID for SMS Alerts & Easi facility in order to safeguard your BO account from being misused. Do ensure that each slip on DIS booklet issued to you has been pre-stamped with a serial number and your demat account number. In case you receive any booklet / slip without serial number or your account number, please return the same to us immediately. Do ensure to keep DIS booklet of your BO a/c in safe custody just like your cheque book. In case of loss of the said booklet or any slip, please inform our DP Team immediately in writing for Stop- transfer of lost booklet / slips.
Do ensure that requisition for fresh DIS booklet is given on the Requisition Slip attached to your previous DIS booklet and is signed by all holders. As per SEBI/CDSL instructions, fresh booklet has to be given only against such Requisition Slips. Do mention all details accurately and in a legible handwriting. Avoid over-writing, cancellations, corrections, changing of the name and quantity of securities or Counter BO IDs. Authorize every correction, over- writing or cancellation on DIS by all holders signing in full against the same. Do fill in all details of the transaction like scrip name, quantity in figures & words, number of instructions used, counter- party demat a/c number , Reason in case of Off market transfers and one time addition of Beneficiary account before handing your DIS to us or any third party.. If there is space for multiple instructions and it is not used fully, please strike out blank space so as to avoid its misuse. Do contact our DP Team for freeze / unfreeze of your BO a/c to enable them to send necessary forms to you in case you wish to freeze your account (e.g. if you are going abroad etc.). Freeze/ Unfreeze of your BO a/c is possible only on receipt of duly filled forms signed by all holder. Do record folio number, certificate number & distinctive numbers of securities before sending physical securities to us for demat. This information will be required for issue of duplicate share certificates in case your parcel containing certificates is lost in transit.
Do ensure that all holders sign documents like DIS slip, Demat Request form, Account Modification or Account Closure form etc. in case of BO accounts with joint holder/s Do ensure that your instructions are received by us at least 1 day before pay-in time of the relevant exchange so as to avoid auctions due to non delivery of securities Do deliver the securities towards your sale / margin to PL’s DP a/c from your own Beneficiary A/c registered with PL. At your discretion, you may execute Demat Debit and Pledge Instruction (DDPI) in favor of “Prabhudas Lilladher Pvt. Ltd.” which will be exclusively used for the purpose of debiting your DP a/c with our DP for your sales/margin obligation only Do check your funds/securities statement sent to you at your email ID registered with CR Team. Do request in writing or through email to our CR Team for freezing of your Broking A/c in case you do not wish to execute any security trade for a certain period (e.g. if you are going abroad etc.). Whenever you wish to re-commence transactions, you may request our CR Team to Unfreeze your Broking A/c. For un-interrupted operation of your BO account, do ensure there is sufficient credit balance available in your DP Ledger to cover the DP dues, failing which interest penalty of 13 % per annum shall be applicable on the dues.
DON’Ts Do not authorize any other person including our Employees / Sub-broker / Authorized Person to operate your BO account on your behalf. Do not leave your DIS booklet or blank signed slips with any third party or your broker/sub-broker. Do not sign blank DIS as it is equivalent to a bearer cheque. Do not allow any other person including our Employees / Sub-broker / Authorized Person to open or operate an e-mail account on your behalf.
Do not share your User-ID or Password with any third party Do not accept Transaction and/or Holding statement of your DP a/c given by any persons other than that sent by our DP Team from Mumbai or by Depositories. Do not execute Suspicious / Benami transactions failing which we will be compelled to report such transactions to Director FIU-IND, New Delhi under the provisions of Prevention of Money Laundering Act. Do not give cash/cheques or transfer securities to any other person including our employees/Sub broker/Authorized Person/Remiser as they are not authorized to receive funds or securities in their name. Do not give third party cheques / DD for your purchases/ margin obligations. Do not give third party deliveries for your sale / margin obligations. Do not authorize any other person including our employees/Sub-broker/Authorized Person/Remiser to place order on your behalf.
Do not accept any offer of assured or guaranteed return on your funds from any person including our employees/Sub-broker/Authorized Person/Remiser, as no one can assure or guarantee return on your funds.
GENERAL TERMS & CONDITIONS The Client shall be wholly responsible for all his decisions and trades. The failure of the Client to understand the risks involved shall not render a contract as void or voidable and he shall be and shall continue to be responsible for all the risks and consequences for entering into trades in the segment The Client will not indulge, either individually or in concert with others, in price- manipulative, fraudulent, deceptive or circular transactions. The Client will not act as an unregistered intermediary. The Client agrees to abide by the exposure limits, if any, set by the Member or by the Exchange or Clearing Corporation or SEBI from time to time. The Client will make payments for his purchases and / or margins from client’s own bank account directly to the Member’s bank a/c either by crossed cheque or demand draft or through Fund Transfer/NEFT/RTGS in favor of the member. The Client will not make any payment in cash. The Client agrees that if he fails to make payment before pay-in day, the Member will charge delayed payment charges 1.5% per month or such other rate as may be applicable and intimated to the Client from time to time, on the outstanding amount and further that they may dispose off his securities to recover their dues including delayed payment charges. The Client will deliver shares from client’s own registered demat a/c only to Member’s demat/pool a/c / Clearing House for fulfilling his sales obligation or for margin purpose or otherwise. If the Client fails to deliver shares sold by him before time specified by the Member for pay-in of shares, the Client authorizes the Member, at their discretion, to utilize his shares lying with the member as Margin towards client’s sales obligation. If the Client fails to request the member to adjust his shares inter settlement before prescribed limit for pay-in of shares, client authorizes the member, at member’s discretion, to adjust shares, in full or in part, towards client’s sales obligation. The Client authorizes the Member to mark provisional debit in his account in case of shortage of shares sold by him till the exchange provides details of auction / close-out to them. The Client authorizes the Member to auction / close out internal shortage at their discretion. The Client agrees that the Member will send monthly/ quarterly a/c statements (as opted in Running Account authorization) by Email on Email-ID as stated in the Client Registration Form. The Client further agrees that he will bring any discrepancy to the notice of the Member directly within 30 days from the date of the receipt of statement failing which it will be presumed that there is no discrepancy. The Client authorizes the Member, at their discretion, to adjust his funds / securities at any segment of the stock exchange towards his obligation at any other segments of any exchanges(s). The Client agrees to immediately furnish information to the Member in writing , if any winding up petition or insolvency petition has been filed or any winding up or insolvency order or decree or award is passed against him or if any litigation which may have material bearing on his capacity has been filed against him. The Member and the Client agree to abide by any award passed by the Ombudsman under the SEBI (Ombudsman) Regulations, 2003. FOR NRO CLIENT - UNDERTAKING AT BSE/NSE/MCX-SX Derivative SEGMENT - The Client undertakes to trade and settle his trades at BSE/NSE/MCX-SX Derivative Segment only through the Member or Professional Clearing Member appointed by the Member. The Client further undertakes that client will neither trade nor settle client’s trade at NSE / MCX-SX F&O Segment through any other NSE/ MCX-SX Member. The Client authorizes the Member to inform Stock Exchanges and/or SEBI, if the Client defaults in fulfilling his obligation to the Member.
BSDA Terms and Conditions “Basic Services Demat Account” (BSDA) terms specified herein: Eligibility :
An Individual shall be eligible for BSDA subject to the following conditions; All the individuals who have or propose to have only one demat account where they are the sole or first holder.
The individual has or proposes to have only one demat account where he/she is the sole or first holder The individual shall have only one BSDA in his/her name across all depositories. Value of securities held in the demat account shall not exceed Rs. 10 Lakhs for debt and other than debt securities combined at any point of time. Charges The charge structure may be on a slab basis as indicated below: No Annual Maintenance Charges (AMC) shall be levied, if the value of holding is up to Rs. 4 lakhs. For the value of holding more than Rs.4 lakhs but up to Rs. 10 lakhs, AMC of Rs 100 will be charged. The value of holding shall be determined by PL on the basis of the daily closing price or NAV of the securities or units of mutual funds, as the case may be. Where such price is not available the last traded price may be taken into account and for unlisted securities other than units of mutual funds, face value may be taken in to account. The value of suspended securities may not be considered for the purpose of determining eligibility of demat account as BSDA.
If the value of holding in such BSDA exceeds the prescribed criteria at any date, PL may levy charges as applicable to regular accounts (non BSDA) from that date onwards. PL shall reassess the eligibility of the BOs at the end of every billing cycle and give option to the BOs who are eligible for BSDA.
Services for Basic Services Demat Accounts: Transaction statements:
Transaction statements shall be sent to the BO at the end of each quarter. If there are no transactions in any quarter, no transaction statement may be sent for that quarter. If there are no transactions and no security balance in an account, then no further transaction statement needs to be provided.
Transaction statement shall be required to be provided for the quarter in which the account became a zero balance account.
Holding Statement: One annual physical statement of holding shall be sent to the stated address of the BO in respect of accounts with no transaction and nil balance. One annual statement of holding shall be sent in respect of remaining accounts in physical or electronic form as opted for by the BO.
Charges for statements: Electronic statements shall be provided free of cost. In case of physical statements, PL shall provide at least two statements free of cost during the billing cycle. Additional physical statement may be charged at a fee not exceeding Rs.25/- per statement. All BOs opting for the facility of BSDA, shall register their mobile number for availing the SMS alert facility for debit transactions.
In case the individual already has BSDA or open a new BSDA on a later date, then status of this demat account as BSDA will cease to exist. All other conditions as applicable to regular demat accounts, other than the ones mentioned here above shall continue to apply to basic services demat account.
TERMS AND CONDITIONS FOR EASI REGISTRATION Facilities through Easi (Electronic Access to Securities Information) - The easi (Electronic Access to Securities Information) facility is an internet-based service provided by CDSL. It allows registered Beneficial Owners (BOs) and Clearing Members (CMs) to access their demat account details online via CDSL’s website, www.cdslindia.com. The benefits for BOs include viewing and printing details of current holdings and transactions, viewing the valuation of holdings based on the previous day's closing price, accessing multiple demat account details through a single login ID, and monitoring corporate announcements. The easi-locker facility allows users to securely store and share e-documents. BOs can also edit their profile information, such as mobile number and email ID, and group accounts with the same PAN Easi provides DP/RTA limited facility as compared to CDAS and services, which CDSL may decide to provide from time to time in its absolute discretion. The availability / non-availability of a particular service shall be advised either through email, web site of CDSL or through written communication
PART A – REGISTRATION PROCEDURE For a sole holder account, the Beneficial Owner (BO) can register online without needing to submit the registration form to the Depository Participant (DP) for authentication. For a joint holder account, the registration form must be submitted, duly signed by all joint holders, to the DP for authentication. Once the details are verified, the DP will authenticate the registration, and the BO will receive the password at the email ID recorded in the demat account.
In order to get registered to Electronic Access to Securities Information a BO has to provide certain basic information like BO ID, Login ID, Email address, Telephone/Mobile Nos. etc. at Electronic Accessto Securities Information. The Login ID as entered would be used by BO for accessing Electronic Access to Securities Information. The Login ID would be accepted if it is not already registered with Electronic Access to Securities Information. On activation a password would be generated for the Login ID, the password would be mailed to the Email ID of the BO as mentioned in the BO registration Form. For the purpose of security it is advised that BO should provide a secure Email ID which is accessed by him only. Do not provide Email ID which is accessed by any other person than the BO. On receiving password a BO can use Electronic Access to Securities Information facility by accessing the internet site http://cdslindia.com.8.A BO is required to enter the Login ID and Password. A BO is required to enter the Login ID and Password.
If a BO is logging into Electronic Access to Securities Information for the first time, he/she is required to change the password immediately. If a BO forgets password for Electronic Access to Securities Information, it can request for a change in the password by following the ‘Forgot your Password procedure’. The existing contract would be valid after the Replacement/ change of password.
BO is requested to take following measures in order to make Electronic Access to Securities Information more secure and safe.
Change the password immediately after first login.
Do not use common/dictionary words for password. Password should be minimum 8 digits containing alphanumeric characters. Keep your password confidential; never reveal/share the same with anyone. Do not write your password.
While entering the password for accessing Electronic Access to Securities Information make sure that no one can see the same. Before moving to the other website logout from Electronic Access to Securities Information. After accessing the Electronic Access to Securities Information immediately delete all files in the folder “C:\Windows\Temporary Internet Files”.
BOs are advised to access Electronic Access to Securities Information from their own PC, as third party PCs may contain software to reveal password. Change your password on regular intervals.
PART B – FACILITIES THROUGH EASI Electronic Access to Securities Information provides a BO a facility to enquire about the balances in their Demat Account, details about transactions and other services, which CDSL may decide to provide from time to time in its absolute discretion. The availability / non-availability of a particular service shall be advised either through email, web page of CDSL or written communication.
PART C – EASI TERMS AND CONDITIONS Definition: In this document, the following words and phrases shall have the meaning as provided hereunder unless the context indicates otherwise:
CDSL: Means Central Depository Services (India) Limited, a company incorporated under the Companies Act, 1956 and registered as a Depository under SEBI (Depositories and Participants) Regulation, 1996 and Depositories Act 1996.
Beneficial Owner (BO): Means an individual/corporate/HUF, etc. who has opened a demat account with a Depository Participant of CDSL Electronic Access to Securities Information (Easi): refers to the trade name of CDSL's Internet Services which enables a BO to enquire about the balances in his/her demat account, details about transactions and other services, which CDSL may decide to provide from time to time in its absolute discretion.
Internet: refers to a Global network of inter connected Computers network, each using transmission control protocol /Internet protocol or any combination thereof or such other standard network inter connection protocols as is used to transmit data that is directly or indirectly delivered to a Computer. Subscriber: means a BO identified and duly registered for easi service. Personal Information: refers to the information about the demat account that is stored on the records of CDSL and may be retrieved in a specified format. Terms used but not defined herein shall have the meaning assigned to them in the CDSL Byelaws Mailing Address: All correspondence / delivery by CDSL shall be made at the address and or e-mail address as registered with CDSL
Statement of accounts: The BO agrees that as easi provides a facility to view, print/ download account statement and transaction details, and the BO agrees not to receive the transaction statement, in physical form, and is aware, that the DP shall send physical statement of account atleast once a quarter Non-Transferability: The right to avail easi facility by a BO is not transferable under any circumstances and shall be availed by the registered BO only
Change of Terms and Conditions: CDSL has the absolute discretion to amend, alter, vary or supplement any of the terms and conditions at any time and will endeavor to give prior notice of fifteen days wherever feasible for such changes. CDSL may introduce new services within easi from time to time. The existence and availability of the new services will be notified to the BO as and when they are made available. By using these new services, the BO agrees to be bound by the revised terms and conditions applicable Notices: CDSL and the BO may give notices in the following manner under these Terms and Conditions: In writing by delivering them by hand or by sending them by post to the address registered in the CDSL system and in the case of CDSL to the address mentioned below Central Depository Services (India) Ltd. (CDSL) 17th Floor, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001.
In addition, CDSL may also publish notices of general nature, which are applicable to all BOs using easi on its website. Such notices will have the same effect as if the notice was served individually to each BO. Disclosure of Personal Information: The BO agrees that CDSL or its DPs may hold and process its Personal Information on computer or otherwise in connection with easi as well as for statistical analysis. The BO also agrees that CDSL may disclose, in strict confidence, to other institutions, such Personal Information as may be reasonably necessary for reasons inclusive of but not limited to the following: To the DP where the BO is having his/her demat account For participation in any telecommunication network In compliance with a legal directive and For fraud prevention purposes, etc. Proprietary Rights: The BO acknowledges that the software underlying easi as well as other Internet related software required for accessing easi is the sole copyright of the respective vendors. The permission given by CDSL to access easi will not convey any proprietary or ownership rights in the above software. The BO shall not attempt to modify, translate, disassemble, decompile or reverse engineer the software underlying easi or create any derivative product based on such software.
Termination of Electronic Access to Securities Information Service: The BO may request for termination of the easi service any time by giving a written notice of at least 15 days to CDSL. CDSL may withdraw the easi service anytime provided the BO is given reasonable notice under the circumstances. The closure of the BO Account(s) will automatically terminate the easi service. CDSL may suspend or terminate easi service without prior notice if the BO has breached any of the terms and conditions or CDSL learns of the death, bankruptcy or lack of legal capacity of the BO. Liability: CDSL shall not be liable to BO for providing any information relating to their demat account(s) through the use of easi service and the BO hereby indemnifies and keeps indemnified CDSL against any action, suit, proceeding initiated against it or any loss, cost or damage incurred by it as a result thereof. CDSL shall, under no circumstance be liable to the BO if the access is not available in the desired manner for reasons including but not limited to natural calamities, legal restraints, faults in the telecommunication network or network failure or any other reason beyond the control of CDSL. Under no circumstance shall CDSL be liable for damages whatsoever whether such damages are direct, indirect, incidental, consequential and irrespective whether any claim is based on loss of revenue, interruption of business, or any loss of any nature and whether sustained by the BO or any other person. Illegal or improper use of the easi service shall render the BO liable for payment of pecuniary charges (fine) as decided by CDSL and will result in suspension/termination of the access to the easi service.
General: The clause headings in this agreement are only for convenience and do not affect the meaning of the relative clause. The BO shall not assign this agreement to anybody else. CDSL may subcontract and employ agents to carry out any of its obligations under this agreement. Disclaimer: All information provided in easi is obtained by CDSL from sources believed by CDSL to be accurate and reliable. Because of the possibility of human and technical error as well as other factors, CDSL is not responsible for any errors or omissions. The development of the products and services of CDSL is a continuous process and published information may not be up to date. The formats, update frequency and retention period of the information will be decided at the sole discretion of CDSL. It is important to check the current position with concerned Depository Participant. All information is provided on 'as is' basis without warranty of any kind. CDSL makes no representation and disclaim all express, implied and statutory warranties of any kind to the BO and/or any third party including warranties as to accuracy, timeliness, completeness, merchantability or fitness of the information for any particular purpose.All proprietary rights in the information received shall remain the property of CDSL. Reproduction, redistribution and transmission of any information contained on the web site is strictly prohibited. Access to this web site is in confirmation the BO has understood and accepted these terms and conditions. This service does not in any manner whatsoever undermine, compromise or substitute the provisions of the agreement entered into by the BO with its Depository Participant.
Stock Broking - Grievance Redressal Mechanism (SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/63 dated May 29, 2024) 1. Mode of filing the complaints – Complaints can be lodged on the Exchange in the following ways: i. Through SCORES 2.0 (a web-based centralised grievance redressal system of the SEBI) [https://scores.sebi.gov.in] Two Level Review: (a) First review done by Exchange (b) Second review done by SEBI .ii. Respective Exchange’s web portal dedicated for the filing of compliant [NSE: https://www.nseindia.com/contact/investor-services-centre; BSE: https://bsecrs.bseindia.com/ecomplaint/frmInvestorHome.aspx; MCX: https://www.mcxindia.com/Investor-Services/grievances/address-of-the-igrc-centres] iii. Emails to designated email IDs of the Exchange [NSE: [email protected]; BSE: [email protected]; MCX: [email protected] ] iv. Through SMARTODR (https://smartodr.in/login) dedicated for the filing of complaint. 2. Regarding documents required for complaint resolution, please refer to the link; [NSE: BSE & MCX: Documents required for complaint resolution: Complete Account Opening Kit, Contract Notes, Ledger statement, Bank statement, Demat transaction statement, any other document in support of claim.] 3. Process flow for Complaint Resolution Process through Scores 2.0 [Refer Schedule III of SEBI Circular EBI/HO/OIAE/IGRD/CIR/P/2023/156 dated September20,2023].
Online Dispute Resolution 1. Online Dispute Resolution (ODR) platform for online Conciliation and Arbitration. If the investor is not satisfied with the resolution provided by the Market Participants, then the Investor has the option to file the complaint/grievance on SMARTODR platform for its resolution through online conciliation or arbitration. [https://smartodr.in/login] 2. Steps to be followed in ODR for Review, • Investor to approach Market Participant for redressal of Conciliation and Arbitration complaint • If investor is not satisfied with response of Market Participant, he/she has either of the following 2 options: - May escalate the complaint on the SEBI SCORES portal. (In this scenario the above steps shall prevail), - May also file a complaint on SMARTODR portal for its resolution through online conciliation and arbitration. • Upon receipt of complaint on SMARTODR portal, the relevant MII will review the matter and endeavour to resolve the matter between the Market Participant and investor within 21 days. • If the matter could not be amicably resolved, then to the matter shall be referred for conciliation. • During the conciliation process, the conciliator will endeavour for amicable settlement of the dispute within 21 days, which may be extended with 10 days by the conciliator with consent of the parties to dispute. • If the conciliation is unsuccessful, then the investor may request to refer the matter for arbitration. • The arbitration process to be concluded by arbitrator(s) within 30 days, which is extendable by 30 days with consent of the parties to dispute. • If the parties are not satisfied with the arbitration award, option to file u/s 34 of Arbitration and Conciliation Act, 1996. * For detailed investor charter please visit: www.plindia.com Depository Participant - Grievance Redressal Mechanism (SEBI/HO/MRD/MRD-PoD-1/P/CIR/2024/66 dated May 29, 2024) 1 Investor Complaints / Grievances Investor can lodge complaint / grievance against the Depository / DP in the following ways:
a. Electronic Mode: i. SCORES 2.0 (a web-based centralised grievance redressal system of SEBI) [https://scores.sebi.gov.in] Two Level Review: (a) First review done by Exchange (b) Second review done by SEBI. ii. Respective Depository’s web portal dedicated for the filing of compliant - https://www.cdslindia.com/Footer/grievances.aspx iii. Emails to designated email IDs of Depository - [email protected] b. Offline mode 2 Online Dispute Resolution (ODR) If the investor is not satisfied with the resolution provided by DP or other Market Participants, then the investor has the option to file the complaint/ grievance on SMARTODR platform for its resolution through by online conciliation or arbitration. [https://smartodr.in/login] 3 Steps to be followed in ODR for Review, • Investor to approach Market Participant for redressal of Conciliation and Arbitration complaint • If investor is not satisfied with response of Market Participant, he/she can escalate the complaint on SEBI SCORES portal. (In this scenario the above steps shall prevail), • Alternatively, the investor may also file a complaint on SMARTODR portal for its resolution through online conciliation and arbitration. • Upon receipt of complaint on SMARTODR portal, the relevant MII will review the matter and endeavour to resolve the matter between the Market Participant and investor within 21 days. • If the matter could not be amicably resolved, then to the matter shall be referred for conciliation. • During the conciliation process, the conciliator will endeavour for amicable settlement of the dispute within 21 days, which may be extended with 10 days by the conciliator with consent of the parties to dispute. • If the conciliation is unsuccessful, then the investor may request to refer the matter for arbitration. • The arbitration process to be concluded by arbitrator(s) within 30 days, which is extendable by 30 days. * For detailed investor charter please visit: www.plindia.com Instructions / Guidelines for filling Individual KYC Application Form A. General Instructions 1. Self-attestation of documents is mandatory. 2. Copies of all documents that are submitted need to be compulsorily self-attested by the applicant and accompanied by originals for verification. In case the original of any document is not produced for verification, then the copies should be properly attested by entities authorised for attesting the documents, as per below list mentioned list. 3. If any proof of identity or address is in a foreign / vernacular language, then translation into English is required. 4. Name and address of the applicant mentioned on the KYC form should match with the documentary proof submitted. 5. If correspondence and permanent addresses are different, then proofs for both have to be submitted. 6. Sole proprietor must make the application in his individual name and capacity. 7. For non-residents and foreign nationals, (allowed to trade subject to RBI and FEMA guidelines), copy of passport / PIO Card / OCI Card and overseas address proof is mandatory. 8. For foreign entities, CIN is optional; and in absence of DIN no. for the directors, their passport copy should be given. 9. In the case of Merchant Navy NRI's, Mariner's declaration or certified copy of CDC (Continuous Discharge Certificate) is to be submitted. 10. For opening an account with Depository participant or Mutual Fund, for a minor, photocopy of the School Leaving Certificate/Mark sheet issued by Higher Secondary Board/ Passport of Minor/Birth Certificate must be provided. 11. Politically exposed persons (PEP) are defined as individuals who are or have been entrusted with prominent public functions in a foreign country e.g., Head of State or of Government, senior politician, senior government/judiciary/ military officer, senior executive of state owned corporation, important political party official, etc. B. Proof of Identity (POI) 1. PAN card with photograph is mandatory for all applicants except those who are specifically exempt from obtaining PAN (listed in Section D). 2. Original Verified Documents (OVD) are acceptable: Unique Identification Number (UID) (Aadhaar) / Passport / Voter ID card/ Driving Licence / Letter issued by NPR / NREGA job card 3. If driving licence number or passport is provided as proof of identity, then expiry date is to be mandatorily furnished. 4. Mention identification / reference number if 'Z - Others (any document notified by the central government)' is ticked. 5. Others-Identity card with applicant's photograph issued by any of the following: Central/State Government Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities, Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council, etc., to their Members; and Credit cards/Debit cards issued by Banks. C. Proof of Address (POA) 1. PoA is to be submitted only if the submitted Pol does not have an address or address as per Pol is invalid or not in force. 2. Others includes Utility bill which is not more than 3 months old of any service provider (electricity, landline telephone, piped gas, water bill); Bank account or Post Office savings bank account statement; Documents issued by Government departments of foreign jurisdictions and letter issued by Foreign Embassy or Mission in India 3. Identity card/document with address issued by any of the following: Central/ State Government Departments, Statutory/ Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities, Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council, etc., to their members. 4. Self-declaration of High courts/Supreme court judges, giving the new address in respect of their own accounts. 5. For FII/Sub account, Power of Attorney given by FII/Sub account to the custodians (which are duly notarised and / or apos-tilled or consularised) that gives registered address should be taken.6. Proof of address in name of spouse may be accepted. 7. Registered lease or Sale agreement/ Flat maintenance bill / Insurance copy / Ration card / Latest Property tax. 8. Original Verified Documents (OVD) are acceptable: Unique Identification Number (UID) (Aadhaar) / Passport / Voter ID card / Driving Licence / Letter issued by NPR / NREGA job card D. Exemptions/Clarifications to PAN (*Sufficient documentary evidence in support of such claims to be collected) 1. Investments (including SIPs), in Mutual Fund schemes up to INR 50,000/- per investor per year per Mutual Fund. 2. Transactions undertaken on behalf of Central/State Government, by officials appointed by Courts, e.g., Official liquidator, Court receiver, etc. 3. Investors residing in the state of Sikkim. 4. UN entities/multilateral agencies exempt from paying taxes / filing tax returns in India. 5. In case of institutional clients, namely Flls, MFs, VCFs, FVCIs, Scheduled Commercial Bank, Multilateral and Bilateral Development Financial Institutions, State Industrial Development Corporations, Insurance companies registered with IRDA, and Public financial institutions as defined under section 4A of the Company Act 1956, custodians shall verify the PAN card details with the original PANs and provide duly certified copies of such verified PAN details to the intermediary. E. List of people authorised to attest the documents 1. Authorised officials of Asset Management Companies (AMCs). 2. Authorised officials of Registrar & Transfer Agent (RTA) acting on behalf of the AMC. 3. KYC compliant mutual fund distributors affiliated to Association of Mutual Funds (AMFI) and have undergone the process of 'Know Your Distributor (KYD)'. 4. Notary Public, Gazette Officer, Manager of a Scheduled Commercial/Co-operative Bank or Multinational Foreign Banks (Name, Designation and Seal should be affixed on the copy). 5. In case of NRIs, authorised officials of overseas branches of Scheduled Commercial Banks registered in India, Notary Public, Court Magistrate, Judge, Indian Embassy/ Consulate General in the country where the client resides are permitted to attest the documents. F. Online Mode Processing of KYC
1. EKYC BIOMETRIC • Applicant may directly upload their documents (OVD) as scanned images on intermediary's portal. • The documents should be e-signed. • Applicant details are verified using UIDAI Biometric details. • Original Seen Verification (OSV) of documents as well as IPV / VIPV is exempted. • Intermediary attestation on documents is exempted.
2. EKYC OTP • Applicant may directly upload their documents (OVD) as scanned images on intermediary's portal. • The documents should be e-signed. • Applicant details are verified using UIDAI details using OTP. • Original Seen Verification (OSV) of documents as well as IPV / VIPV is exempted. • Intermediary attestation on documents is exempted.
3. ONLINE KYC • Applicant may directly upload their documents (OVD) as scanned images on intermediary's portal. • The documents should be e-signed. • Virtual In Person Verification (VIPV) is mandatory as per the SEBI guidelines. • Intermediary attestation on documents (OSV) is exempted.
4. OFFLINE EKYC • Applicant may directly upload their document (PAN copy) as scanned images on intermediary's portal. • The documents should be e-signed. • Digital KYC performed through Offline Aadhaar e-KYC. OVD sourced from Offline Aadhaar e-KYC. • Original Seen Verification (OSV) of documents as well as IPV / VIPV is exempted.
5. DIGILOCKER • Digital KYC performed through the documents (OVD) sourced from Digilocker. • Original Seen Verification (OSV) of documents as well as IPV / VIPV is exempted. • Intermediary attestation on documents is exempted. AUTHORISED PERSONS (AP) AND BRANCHES
1. In case of Individual Clients, the person authorised by PL or registered SB / AP should personally verify photograph affixed on KRAKYC and on proof of identity documents of account holder(s) and must sign on the documents collected as proof of identity for all of them to the effect that "Identity of applicant is verified in person". Details of person authorised to carry out in-person verification should be duly filled. 2. All copies of proof documents must be verified against their originals, stamped as "Verified with Original" and signed by person authorised by PL or registered SB / AP under PL / Sub broker / Authorised persons Stamp with his name mentioned alongside his signature. CENTRAL KYC REGISTRY (CKYCR) INSTRUCTIONS / CHECKLIST • CERSAI, performing the function of CKYCR, is a centralised repository of KYC records of customers in financial sector with uniform KYC norms and inter-usability of KYC records across the sector. The KYC data and documents are stored in a digitally secure electronic format. • If a bank or mutual fund or insurance company or pension fund has uploaded their client's KYC data with CKYCR, then stock broker or DP can fetch the same KYC data to open Broking/Demat account or vice-versa. They need not ask for fresh proof of Identity and Address unless client's details have changed • CKYCR has a unique 14-digit KYC Number for each applicant. The applicant needs to quote this ID in all applications where KYC details are to be given. Data is de-duplicated under various parameters to ensure a single KYC identifier per applicant. GENERAL INSTRUCTIONS
• Please state name with Prefix (Mr./Mrs./Ms./Dr.) • The name should match the name as mentioned in the PAN Card/PAN Website failing which the application is liable to be rejected. • Father's name is mandatory in case PAN is not available. • District, City, State, Country & Pin-code is mandatory for all addresses in India. • In KRA-KYC Form under Contact Details, please mention 2-digit country code and 10-digit mobile number (e.g. for Indian mobile number mention 91-9999999999). Do not add '0' in the beginning of mobile number. • In the case of landline telephone numbers, please mention STD or ISD code and then the telephone number • Expiry dates must be mandatorily furnished for proof documents having expiry date The default scheme selected for your demat account will be BSDA, subject to the eligibility criteria as determined by the Depository.
If you do not meet the eligibility requirements for BSDA, the scheme you have chosen will be applied instead. If you prefer not to continue with the BSDA scheme, kindly send an email to [email protected] giving details of the scheme you wish to opt in your demat account. Please mention your demat account number in your email. Nomination Form You can maximum provide Nominations for 3 person, if you wish to give more nomination, please file Physical form which you can get it from our nearest branch or write to [email protected] or call 1860 210 2222 and ask them to send you Nomination form.
Most Important Terms and Conditions (MITC) (For Non-Custodial Settled Trading Accounts) 1. Your trading account has a "Unique Client Code" (UCC), different from your demat account number. Do not allow anyone (including your own stock broker, their representatives and dealers) to trade in your trading account on their own without taking specific instruction from you for your trades. Do not share your internet/mobile trading login credentials with anyone else. 2. You are required to place collaterals as margins with the stock broker before you trade. The collateral can either be in the form of funds transfer into specified stock broker bank accounts or margin pledge of securities from your demat account. The bank accounts are listed on the stock broker’s website. Please do not transfer funds into any other account. The stock broker is not permitted to accept any cash from you. 3. The stock broker's Risk Management Policy provides details about how the trading limits will be given to you, and the tariff sheet provides the charges that the stock broker will levy on you.
4. All securities purchased by you will be transferred to your demat account within one working day of the payout. In case of securities purchased but not fully paid by you, the transfer of the same may be subject to limited period pledge i.e. seven trading days after the pay-out (CUSPA pledge) created in favour of the stock broker. You can view your demat account balances directly at the website of the Depositories after creating a login. 5. The stock broker is obligated to deposit all funds received from you with any of the Clearing Corporations duly allocated in your name. The stock broker is further mandated to return excess funds as per applicable norms to you at the time of quarterly/ monthly settlement. You can view the amounts allocated to you directly at the website of the Clearing Corporation(s).
6. You will get a contract note from the stock broker within 24 hours of the trade. 7. You may give a one-time Demat Debit and Pledge Instruction (DDPI) authority to your stock broker for limited access to your demat account, including transferring securities, which are sold in your account for pay-in. 8. The stock broker is expected to know your financial status and monitor your accounts accordingly. Do share all financial information (e.g. income, networth, etc.) with the stock broker as and when requested for. Kindly also keep your email ID and mobile phone details with the stock broker always updated.
9. In case of disputes with the stock broker, you can raise a grievance on the dedicated investor grievance ID of the stock broker. You can also approach the stock exchanges and/or SEBI directly. 10. Any assured/guaranteed/fixed returns schemes or any other schemes of similar nature are prohibited by law. You will not have any protection/recourse from SEBI/stock exchanges for participation in such schemes.

Account Opening Mode Declaration

I understand that Prabhudas Lilladher Pvt. Ltd. (PL) offers the following modes of account opening:

• • Physical Mode
• • Online Mode

Terms for Online Account Opening

1. 1. Segment Selection
   • • The Cash Segment is activated by default.
   • • Clients may deselect the Cash Segment if they prefer other segments, provided at least one segment is selected.
2. 2. Identity & Address Verification
   • • Mandatory DigiLocker verification is required for identity and address proof.
3. 3.Demat Account Requirements
   • • All Demat accounts opened online require signing the DDPI agreement.
   • • If a client does not wish to sign the DDPI agreement, they must opt for Physical Mode account opening.
4. 4.Nominee Registration
   • • Online Mode: A maximum of 3 nominees can be registered.
   • • As per SEBI guidelines, up to 10 nominees are permitted.
   • • To register more than 3 nominees, clients must either:
     • • Choose Physical Mode, or
     • • Submit a Nominee Addition/Modification Form post-account opening.
5. 5. Declaration on Regulatory Actions
   • • I hereby declare that no regulatory actions, proceedings, or penalties have been initiated/pending/imposed against me (or the applicant/entity, its partners, promoters, directors, or authorized representatives) by SEBI, Stock Exchanges, or any other authority in the last 3 years.
   • • If PL discovers any violations, it reserves the right to take necessary action, including account restrictions.

Physical Mode Requirements

Clients must submit:

• • A duly signed and self-attested Account Opening Form.
• • Complete KYC documentation for verification by Prabhudas Lilladher Pvt. Ltd.

I hereby understand that PL offers both online and offline account opening. I explicitly opted online mode as it is much easier and faster. I hereby acknowledge that I have read and understand the terms and conditions and give my consent on the terms and conditions mentioned in online mode.
I/We hereby declare that the KYC details furnished by me/us are true and correct to the best of mu/our knowledge and belief and I/we undertake to inform you of any changes therein, immediately. In case any of the above information is found to be false or untrue or misleading or misrepresenting. I am/we are aware that I/we may be held liable for it.
I/We hereby consent to receiving information from CVL KRA through SMS/Email on the above registered number/email address. I am/we are also aware that for Aadhaar OVD based KYC, my request shall be validated against Aadhaar details.
I/We hereby consent to sharing my/our masked Aadhaar card with readable QR code or my Aadhaar XML/Digilocker XML file along with passcode and as applicable with KRA and other intermediaries with whom I have a business relationship for KYC purposes only.
I/We also give my/our consent for downloading our existing details from CKYC portal.
Annexure For Terms and Conditions-Cum-Registration / Modification Form
For Receiving SMS Alerts From CDSL Definitions
In these Terms and Conditions the terms shall have following meaning unless indicated otherwise: • "Depository" means Central Depository Services (India) Limited a company incorporated in India under the Companies Act, 1956 and having its registered office at 17th Floor, P.J. Towers, Dalal Street, Fort, Mumbai 400001 and all its branch offices and includes its successors and assigns. • DP' means Depository Participant of CDSL. The term covers all types of DPs who are allowed to open demat accounts for investors. • 'BO' means an entity that has opened a demat account with the depository. The term covers all types of demat accounts, which can be opened with a depository as specified by the depository from time to time. • SMS means "Short Messaging Service"
• "Alerts" means a customised SMS sent to the BO over the said mobile phone number. • "Service Provider" means a cellular service provider(s) with whom the depository has entered / will be entering into an arrangement for providing the SMS alerts to the BO.
• "Service" means the service of providing SMS alerts to the BO on best effort basis as per these terms and conditions. Availability
• The service will be provided to the BO at his / her request and at the discretion of the depository. The service will be available to those accountholders who have provided their mobile numbers to the depository through their DP. The services may be discontinued for a specific period / indefinite period, with or without issuing any prior notice for the purpose of security reasons or system maintenance or for such other reasons as may be warranted. The depository may also discontinue the service at any time without giving prior notice for any reason whatsoever. • The service is currently available to the BOs who are residing in India. • The alerts will be provided to the BOs only if they remain within the range of the service provider's service area or within the range forming part of the roaming network of the service provider.
• In the case of joint accounts and non-individual accounts the service will be available, only to one mobile number i.e. to the mobile number as submitted at the time of registration / modification.
• The BO is responsible for promptly intimating to the depository in the prescribed manner any change in mobile number, or loss of handset, on which the BO wants to receive the alerts from the depository. In case of change in mobile number not intimated to the depository, the SMS alerts will continue to be sent to the last registered mobile number. The BO agrees to indemnify the depository for any loss or damage suffered by it on account of SMS alerts sent on such mobile number.
Receiving Alerts • The depository shall send the alerts to the mobile phone number provided by the BO while registering for the service or to any such number replaced and informed by the BO from time to time. Upon such registration / change, the depository shall make every effort to update the change in mobile number within a reasonable period of time. The depository shall not be responsible for any event of delay or loss of message in this regard.
• The BO acknowledges that the alerts will be received only if the mobile phone is 'ON' and in a mode to receive the SMS. If the mobile phone is in 'Off" mode i.e. unable to receive the alerts, then the BO may not get / get after delay any alerts sent during such period. • The BO also acknowledges that the readability, accuracy, and timeliness of providing the service depends on many factors including the infrastructure, connectivity of the service provider. The depository shall not be responsible for any non-delivery, delayed delivery or distortion of the alert in any way whatsoever.
• The BO further acknowledges that the service provided to him is an additional facility provided for his convenience and is susceptible to error, omission and/or inaccuracy. In case the BO observes any error in the information provided in the alert, the BO shall inform the depository and/or the DP immediately in writing and the depository will make best possible efforts to rectify the error as early as possible. The BO shall not hold the depository liable for any loss, damages, etc. that may be incurred/suffered by the BO on account of opting to avail SMS alerts facility. • The BO authorises the depository to send any message such as promotional, greeting or any other message that the depository may consider appropriate, to the BO. The BO agrees to an ongoing confirmation for use of name, email address and mobile number for marketing offers between CDSL and any other entity.
• The BO agrees to inform the depository and DP in writing of any unauthorised debit to his BO account/ unauthorised transfer of securities from his BO account, immediately, which may come to his knowledge on receiving SMS alerts. The BO may send an email to CDSL at [email protected] The BO is advised not to inform the service provider about any such unauthorised debit to/transfer of securities from his BO account by sending a SMS back to the service provider as there is no reverse communication between the service provider and the depository. • The information sent as an alert on the mobile phone number shall be deemed to have been received by the BO and the depository shall not be under any obligation to confirm the authenticity of the person(s) receiving the alert. • The depository will make best efforts to provide the service. The BO cannot hold the depository liable for non- availability of the service in any manner whatsoever.
• If the BO finds that the information such as mobile number etc., has been changed without proper authorization, the BO should immediately inform the DP in writing.
Fees Depository reserves the right to charge such fees from time to time as it deems fit for providing this service to the BO. Disclaimer The depository shall make reasonable efforts to ensure that the BO's personal information is kept confidential. The depository does not warranty the confidentiality or security of the SMS alerts transmitted through a service provider. Further, the depository makes no warranty or representation of any kind in relation to the system and the network or their function or their performance or for any loss or damage whenever and howsoever suffered or incurred by the BO or by any person resulting from or in connection with availing of SMS alerts facility. The Depository gives no warranty with respect to the quality of the service provided by the service provider. The Depository will not be liable for any unauthorised use or access to the information and/or SMS alert sent on the mobile phone number of the BO or for fraudulent, duplicate or erroneous use/ misuse of such information by any third person.
Liability and Indemnity The Depository shall not be liable for any breach of confidentiality by the service provider or by any third person due to unauthorised access to the information meant for the BO. In consideration of the depository providing the service, the BO agrees to indemnify and keep safe, harmless and indemnified the depository and its officials from any damages, claims, demands, proceedings, loss, cost, charges and expenses whatsoever which a depository may at any time incur, sustain, suffer or be put to as a consequence of or arising out of interference with or misuse, improper or fraudulent use of the service by the BO.
Amendments The depository may amend the terms and conditions at any time with or without giving any prior notice to the BOs. Any such amendments shall be binding on the BOs who are already registered as users of this service.
Governing Law and Jurisdiction Providing the Service as outlined above shall be governed by the laws of India and will be subject to the exclusive jurisdiction of the courts in Mumbai.
I/We wish to avail the SMS Alerts facility provided by the depository on my/our mobile number provided in the registration form subject to the terms and conditions mentioned below. I/ We consent to CDSL providing to the service provider such information pertaining to account/transactions in my/our account as is necessary for the purposes of generating SMS Alerts by service provider, to be sent to the said mobile number.
I/We have read and understood the terms and conditions mentioned above and agree to abide by them and any amendments thereto made by the depository from time to time. I/ we further undertake to pay fee/ charges as may be levied by the depository from time to time. I/ We further understand that the SMS alerts would be sent for a maximum of four ISINs at a time. If more than four debits take place, the BOs would be required to take up the matter with their DP. I/We am/are aware that mere acceptance of the registration form does not imply in any way that the request has been accepted by the depository for providing the service. I/We authorise the DP to use the contact information (Email ID / Mobile no.) as provided in the KYC form of First/Sole holder for the purpose of Registration.
Voluntary Terms and Conditions Whereas the client intends to open securities trading accounts with Prabhudas Lilladher Private Limited (hereinafter referred as PL) for the purpose of trading at Equity, Equity Derivatives, Currency Derivatives, Commodity Derivatives and Mutual Fund segments of Stock Exchanges and whereas for the purpose of more fully and conveniently availing of the services agreed to be provided by PL and also the additional services that may be made available by PL from time to time, the Client, on its own free will and volition, agrees to accept and be bound by the following terms and conditions. The Client understands that these terms and conditions are voluntary i.e., non-mandatory in nature but on their acceptance, these shall constitute the contract between the parties and bind them fully and be enforceable by each party against the other. • Authorisation to debit additional charges with regard to Trading and Demat Account: Without prejudice to the other rights and obligations of the parties, the client understands and agrees that PL may levy additional charges including Annual Maintenance Charges and all transaction charges with respect to Clients Demat account for any service rendered by PL and as may be required by the Client, and recover from the Client all reasonable costs, as may be incidental or consequential for rendering the said services. The said charges will be debited to the client's Trading ledger account with PL
• Payment by cheque: Where payment by the client towards margin money is made through cheque / pay order / demand draft issued in favour of PL, trades may be executed at the discretion of PL only upon realisation of the funds of the said cheque/pay order/demand draft. • Margins: Client agrees to deposit margins as per the SEBI/Stock Exchange/PL requirements. Client authorises PL to dispose the securities and/or benefits thereon, in the event of default in payment of obligations to PL. Client warrants that, save to the extent of the rights hereby conferred on PL, client is the sole, absolute and beneficial owner of the security and the securities are free from any mortgage, pledge, charge (whether fixed or floating), lien or any other form of encumbrance. Client agrees to give 48 hours advance notice to PL excluding clearing holidays, Saturdays and Sundays for withdrawal of client securities not under Lien to PL.
• Lien: All securities, funds and/or properties of the Client as may be permitted by the Exchange(s) from time to time to be placed with PL shall be subject to a lien for the payments or fulfillment of all undischarged liabilities and obligations of the Client in relation to its transactions or owing to any of the group companies of PL. PL shall be entitled to withhold such securities, funds and/or property of the Client as security towards any such un- discharged liabilities or obligation of the Client and to sell and/or appropriate to itself all such securities, funds or properties at its sole discretion and at any point of time. • Authorisation for delivering/pledging shares: The client understands and agrees that PL may deliver to the Exchange any securities held by it on behalf of the client to discharge settlement obligation in respect of securities sold by the client or pledge the same with the clearing house of the recognized stock exchange in any segment where the Client is registered for trading for the purpose of providing margin for the trading positions contracted or to be contracted by the Client or with any scheduled commercial bank, Non-Banking Financial Institution or other financial institution for raising funds to the extent account of the client carries debit balance but without any obligation on its part to so raise funds by pledging the securities and without prejudice to the right of PL to enforce, at its option, the collateral security in the securities to recover the debit balance at any time. The client hereby authorises PL to do all acts, deeds, undertakings and other formalities necessary to carry out the above delivery/pledge.
• Authorisation for Inter segment fund balance transfer and stock transfers: The client hereby authorises PL to transfer its debit/credit balances in the ledger account arising during the course of trades in any segment to its ledger account in any other segment or to transfer any stock purchased/lying in its account in any segment to its account in any other segment as often as may be required. The transfers may be completed by passing journal entries in the books of PL.
• Disclaimer: The Client understands and agrees that neither PL nor any other party disseminating any market data, message or information through the Website of PL or in any other media shall be liable for: • Any inaccuracy, error, omission or delay in the transmission or delivery of any such data, information or message, or • Any loss or damage arising from or occasioned by (i) Any such inaccuracy, error, delay or omission, (ii) Non performance, or (iii) Interruption in making available any such data, information or message, due to either any act or omission by PL or any disseminating party or to any "force majeure" (e.g. flood, extraordinary weather condition, earthquake or other act of nature, fire, war, insurrection, riot, labour dispute /unrest, accident, action of government, communications or power failure, equipment or software malfunction) or any other cause beyond the reasonable control of PL or any disseminating party.
• Manner and Mode of placing orders/instructions: The Client may communicate orders and other instructions to PL or the sub-broker/authorised person as the case may be over phone at the designated contact telephone number, or in writing, or through designated email, or by personally visiting the designated office. The Client may use any one or more of these means as may be permitted by the SEBI / Exchanges from time to time for placing orders. • Non-execution/delay/cancellation of Orders: The client hereby agrees that PL or the Exchanges shall not be liable for non execution or partial execution of any orders caused due to suspension, interruption, or malfunctioning of the online as well as offline trading services, disruptions or congestion of communication networks, hardware or software problems, or failure of the electronic trading system generally in any manner due to one or the other reasons beyond the control of PL or the Exchange. • Client not to act on representations of agents, employees: Client is aware that PL has not authorised any agents, representatives, employees or other persons to make any representation, or to give any promise, assurance, warranty, undertaking or commitment as to return on investment of the Client whether in writing or otherwise on behalf of PL. • Recording of Conversation: The client is aware and agrees that PL may tape record the conversation between the client/client's representative and PL, whether over the telephone or in person. PL may produce before competent authorities, voluntarily or on such production being required by such authorities, recorded conversation or transcript
thereof or both as valid evidence of the content of the conversation so recorded. • Confidentiality of Client Details: PL may disclose the client information to any person /entity as required under the law or to any broker's Association or organisations in case of dispute in order to take informed decision. The Client hereby agrees and gives consent for the disclosure by PL to any person or entity including but not limited to any independent third parties or any entities of PL Group, whether within or outside India, of any information and data relating to Client or relating to Client's trading account with PL for the purposes of or in connection with, any present or proposed initiatives, including but not limited to any marketing or cross sell initiatives, business proposals, activities, facilities or services availed of or to be availed, by Client in future. • Disclosure as to Proprietary Trades by PL: PL may carry out proprietary trades in addition to trades on behalf of its Clients. • Severance: In case any one or more of the terms and conditions contained in this document become invalid, illegal or unenforceable in any respect under any applicable law, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. • No Waiver: No forbearance, relaxation or inaction by any party to require from the other performance or discharge of any obligation to be performed or discharged by the other under this document shall in any way affect, diminish, or prejudice the right of such party to require of the other party at any time such performance or discharge, or performance
or discharge of any other obligations under this document or be considered to be a waiver of any rights, unless the waiver is specifically agreed in writing. • Notices: All notices or communications issued by PL shall be served on the Client in any one or more or all of the following ways at the ordinary business address and/or ordinary place of residence and/or last known address of the client: • (a) By ordinary post or (b) By registered post (c) Under certificate of posting or (d) By express delivery post or (e)by SMS on registered mobile or by telephonic call or (f) By affixing it on the door at the last known business or residential address or (g) By oral communication to the party or on the last known telephone number or on the recording machine of such number or (h) By advertising it in at least one prominent daily newspaper having circulation in the area where the last known business or residential address of the client is situated or (i) By publishing it in the website of PL wherein secured log-id and password to Client is provided or (j) By a notice posted on the notice board of the Exchange if no address be known or (k) By electronic mail or fax or (I) By hand delivery or By Courier or any other mode as may be allowed for communication. • Notwithstanding anything stated above, communication relating to orders, margins, maintenance calls and other similar matters in the ordinary course of dealings between
PL and the Client may be made orally. • Electronic Contract Note (ECN) and SMART facility:
• Client agrees to receive contract notes in Electronic/Digital Form (ECN) authenticated by means of a digital signature in lieu of Physical Contract notes through e-mail by authorising PL in this connection and registering the e-mail Id (s) through the KYC form. The Client shall access and verify the ECN and all information contained therein, In the case of discrepancy the Client, shall inform PL either in writing or via E-mail within 2 working days of the receipt of the same.
• Client agrees to enroll for the Strategic Monitoring and Review Tool (SMART) Account to view Back Office details, Research Reports, etc., through PL website www.plclients.com. Client authorises PL to allot User ID & Password and communicate the Password to client's registered e-mail ID. • Client undertakes to inform any change in E-mail ID through duly signed Modification Form or any other mode permitted by PL from time to time. Till change of email ID is informed to PL, e-contracts, etc., shall be sent to existing email ID of Client.
• Client acknowledges that the Client registration documents will be available on PL website plclients.com and ECN will be available on the said site for a period of at least 120 calendar days from the date of trade. The Client can login in to his account and view/save/print the ECN. Should the Client experience any difficulty in opening the ECN, PL may, on advice by the Client, make the Contract Note available by any other means (e-mail, electronic mail attachment, or in the form of an available download from the back-office web site or by delivery of a hard copy). Client's failure to advice PL of such a difficulty shall amount to valid delivery and viewing of the document by the Client.
• Client agrees and understands that SMART login facilitates to view and verify Client's trade details, financial details, margin details and security details with PL's records from time to time. Client agrees to inform any discrepancies immediately on notice thereof. Client authorises PL to reverse the excess credit of shares in client's BO Account with PL and / or excess credit from ledger account with PL. Client agrees and undertakes to immediately return excess funds / Securities received from PL. Client undertakes to keep login ID / password confidential and be solely responsible for unauthorised use thereof.
• Electronic Transmission of other Documents: The Client who has opted for ECN agrees that PL may transmit to the Client any statements, documents or intimation including, but not limited to, Margin Statement, Statements of Funds and Securities, margin and maintenance calls and other notices/communications in electronic mode either at the email ID designated for delivery of ECN or to the mobile number of the Client or both and, in case of non receipt of bounced mail/non delivery of SMS notification, PL shall be deemed to have fulfilled it obligation to deliver to the Client such documents. Discrepancies if any in documents should be brought to the notice of PL within seven working days from issuance failing which the documents shall be deemed to be true and correct record of transactions stated therein and shall be binding on the client.
• Electronic Payment Gateway for Net Banking Services: PL may provide on its internet trading website, without additional cost to the Client, access to Electronic Payment Gateways provided by various banks for facilitating transfer of funds from Client's bank account to the account of the Client with PL. Client understands that PL is only providing access to the electronic fund transfer facility provided by the banker of the Client through PL's website by means of an interface and is not liable or responsible for the proper functioning or otherwise of the Gateway or for any transaction errors, losses, malfunctioning or hacking of the system by unscrupulous elements, frauds, and/or any incidental or consequential claims arising thereout. Client undertakes not to make PL a party to any litigation, claim, dispute, difference or complaint that the Client may initiate in respect of, arising out of or in connection with any transactions on the Gateway and agrees that PL's liability shall at all times be limited to the amount actually received in its account by electronic transfer from Client's account with the Bank. • Pay-out of funds: Client agrees and understands that PL would be free to decide the mode of fund pay-out, viz., either as direct credit to client bank account by way of NEFT/RTGS/Fund Transfer or by way of Account Payee Cheque in favour of client as per cheque print name registered with PL. Client agrees that if any funds are moved by PL to client bank account that are not due to client for any reasons including but not limited to an error or fraud, client undertakes to immediately return the funds to PL. Client shall be solely liable for any losses and/or delayed credit arising out of any mistake by client in quoting Bank account number and client name, bank name, branch name & IFSC code or updating PL for any changes therein. • Internet / Wireless Technology based Trading facility:
• PL offers Internet and mobile Trading facility for transaction in securities on the concerned Exchanges including facilities for online application of IPO / FPO / NFO / Bond issues or any other issues of securities or services to apply / purchase / redeem / sale / buyback or otherwise deal in the units of Mutual Funds (hereinafter referred to as "the Internet / wireless Trading system") through Exchange approved software. The Client can route its orders to PL over the internet/mobile/laptop with data card or any other devices which use internet protocol for purchasing, selling, and dealing in securities. The Client may avail of such Trading facility provided by PL by complying with the formalities prescribed therefore. • Non-usage of Internet / Wireless Trading Facility: If the Client does not use the Internet / Wireless Trading Facility for a continuous period of 3 months or such other period as PL may notify, the facility may be deactivated without notice and the Client shall comply with the prescribed formalities for reactivating the facility. Trades can, however, be executed at all times by placing orders off-line with the concerned branch of PL.
• The client understands and agrees that PL has different products of the Internet Trading/Wireless Trading software which have been approved by the Exchanges and the client shall be allotted such products as may be chosen by him. The client also understands and agrees that depending on the trading activity of the client, PL shall have the exclusive right and liberties to change the product version allotted to the client and allot a different product version of the Internet Trading/Wireless Trading facility.
• Orders of Client subject to review by PL: The Client agrees that the PL may, on being suspicious of any of the transactions, review any order placed by a Client, which may cause delays in the processing of the Client's order or may result in rejection of such order. • Clients shall familiarise themselves with the Company’s policy for ‘Voluntary Blocking of Trading Account by Clients’ which has been implemented in pursuance of SEBI circular SEBI/HO/MIRSD/POD-1/P/CIR/2024/4 dated January 12, 2024 to grant authority to the clients to instruct the Trading Member to temporarily blockage their respective trading accounts on suspicion of unauthorised trading activity within the same. • Extra Ordinary Events and termination/suspension of trading facility: PL will not be liable for losses caused directly or indirectly by government restriction, Exchange rulings, suspension of trading, computer, communication, telephone or system failure, war, earthquakes, flood, accident, power failure, equipment or software malfunction, lack of connectivity, congestion or disruption of communication network or links, software glitches or corruption, low processing speed, strikes or any other conditions beyond PL's control resulting in non-execution, partial or incomplete execution of orders, and the resulting financial loss, if any PL may at any time terminate, discontinue or temporarily suspend trading facility provided to the Client in the event of any such extraordinary event occurring without giving prior notice to the Client. • Amendments to the terms and conditions: PL reserves the right to amend the terms and conditions herein contained by adding, deleting, modifying, or varying the provisions thereof by giving 15 days’ notice to the Client. In the event where the client has not objected to revised terms and conditions within 15 days of receiving the notification, the same shall be binding on the client.
Authorisation for maintaining Running Account Dear Sir(s),
We are a registered client with you and dealing in Capital Market/ Derivative Segment/ Currency Derivative Segment/ Commodity Derivative Segment having client code as mentioned below.
We are aware that payout / dividend received / credited from the exchange(s) against settlement of transaction as per settlement cycle is available within 1 working day of the payout from the Exchange. It is difficult for us to make available the required funds on every pay-in of funds obligation / margin obligation, hence we request you to maintain our account on a running basis and retain the payout received / credit balance in our account for our future obligation / margin obligation or other liabilities unless we instruct otherwise.
If payment of funds is required, we shall request you in writing or through the web option for funds withdrawal on the web login. Further it may be noted that if required we may revoke this authorisation at any time after giving request in writing. This running account authorisation would continue until it is revoked by us. The actual settlement of funds shall be done once in Quarter or as per SEBI, If I wish have any other option the I will Open my Account in Physical Mode.
While settling the account having outstanding obligations on the settlement date, you may retain the requisite funds towards such obligations and may also retain the funds expected to be required to meet margin obligations for next 5 trading days, calculated in the manner specified by the exchanges.
I authorise you to retain a sum in accordance with the SEBI circular no. SEBI/HO/MIRSD/DOP/P/CIR/2021/577 dated June 16, 2021. We shall bring any dispute arising from the statement of account or settlement so made to your notice within 7 working days from the date of receipt of funds or statement, as the case may be. In case of non receipt of any such communication the statement / settlement of running account shall be considered as final as agreed and accepted by us. Mutual Fund Service System (MFSS) Facility of NSE / BSE STAR MF We are registered as your client with Client Code as mentioned below for the purpose of trading in the Capital Market Segment. We are interested in availing the facility of the following Exchange for the purpose of dealing in the units of Mutual funds Scheme permitted to be dealt with.
NSE MFSS BSE STAR MF For the purpose of availing the facility, we state that Know Your Client details as submitted by us for the securities broking may be considered for this purpose and we further confirm that the details contained in same remain unchanged as on date. We are willing to abide by the terms and conditions as mentioned in the Circular dated November 24, 2009, and as may be specified by the Exchange from time to time in this regard. We shall also ensure compliance with the requirements as may be specified from time to time by the Securities and Exchange Board of India and/or Association of Mutual Funds of India (AMFI). We shall read and understand the contents of the Scheme Information Document and Key Information Memorandum, addenda issued regarding each Mutual Fund Schemes with respect to which we choose to subscribe / redeem. We further agree to abide by the terms and conditions, rules and regulations of the Mutual Fund Schemes. We therefore request you to register us as your client for participating in the NSE MFSS/ BSE STAR MF.
Terms and Conditions • The client shall be bound by circulars issued by NSEIL/ BSE, Rules, Regulations, and circulars issued there under by the SEBI and relevant notifications of Government authorities as may be in force from time to time. • The client shall notify the Participant in writing if there is any change in the information in the 'client registration form' provided by the client to the Participant at the time of registering as a client for participating in the New MFSS/ BSE STAR MF or at any time thereafter. • The client shall submit to the Participant a completed application form in the manner and prescribed format for the purpose of placing a subscription order with the Participant.
• The client has read and understood the risks involved in investing in Mutual Fund Schemes. • The client shall be wholly responsible for all his investment decisions and instruction. • The client shall ensure continuous compliance with the requirements of the NSEIL, BSE, SEBI and AMFI. • The Client shall pay to the Participant fees and statutory levies as are prevailing from time to time and as they apply to the Client's account, transactions and to the services that Participant renders to the Client.
• The client will furnish information to the Participant in writing, if any winding up petition or insolvency petition has been filed or any winding up or insolvency order or decree or award is passed against him or if any litigation which may have material bearing on his capacity has been filed against him.
• In the event of non-performance of the obligation by the Participant, the client is not entitled to claim any compensation either from the Investor Protection Fund or from any fund of NSEIL/ BSE or NSCCL/ICCL. • In case of any dispute between the Participants and the investors arising out of this facility, NSEIL/BSE and / or NSCCL/ICCL agrees to extend the necessary support for the speedy redressal of the disputes. Trading code mentioned in account opening form is same as UCC code mapped to the demat account mentioned on the account opening form.
DEMAT ACCOUNT - SCHEME CHARGES

CHARGE TYPE	STANDARD		SUPER-SAVER	LIFETIME NO AMC	BSDA (Individual a/cs only)		ECONOMY	GOLD
	With POA/DDPI	Without POA/DDPI	With POA	With POA + Easi Regn	With POA	Without POA	With POA	With POA
1. Interest-Free Refundable Deposit (payable upfront with AOF)	Not Applicable		Not Applicable	₹1,000	Not Applicable		₹3,000	₹10,000
2. Annual Maintenance Charges (AMC)	₹300 (Individual) ₹800 (Non-Individual)	₹450 (Individual) ₹1,000 (Non-Individual)	₹1,000 (Individual) ₹1,500 (Non-Individual)	NIL (Individual) ₹500 (Non-Individual)	Not Applicable		₹500	₹500
AMC based on Holdings Value	Not Applicable				NIL (up to ₹2L) ₹100 (>₹2L & ≤₹10L)	₹100	Not Applicable
3. Non-Refundable One-time Payment (payable upfront with AOF)	Not Applicable				₹800	Not Applicable
4. KRA-KYC Creation / Download Charges (payable upfront)	₹50 per holder
5. SMS Alerts Registration (Free)	Mandatory	Recommended	Mandatory		Mandatory	Mandatory	Mandatory
6. Easi Registration (Free)	Recommended	Mandatory
7. Transaction Charges (debits only)	On Market from BO A/c: ₹20, ₹25, ₹0, ₹0, ₹20, ₹25, ₹10, ₹0
	On Market Delivery from PL's A/c: ₹20, ₹25, ₹0, ₹0, ₹20, ₹25, ₹10, ₹0
	Off Market Transfers to PL's A/c: ₹30, ₹30, ₹25, ₹25, ₹30, ₹30, ₹10, ₹0
	Off Market Transfers within/outside PL-DP: Max of ₹30 or 0.03%, Whichever is Higher. ₹75
	Transfer to CM A/c other than PL: ₹75
8. Dematerialisation / De-Stat	₹5 per certificate (Min ₹50 – Max ₹1,000) + actual courier charges							₹50 per DRF + actual courier charges
9. Demat Rejections (Internal/Company objections)	Actual Courier Charges
10. Pledge Charges (Creation / Closure / Invocation – by Pledgor / Pledgee)	₹30 per transaction				₹20 per transaction
11. Margin Pledge Charges (Creation / Closure / Invocation – by Pledgor / Pledgee)	₹10.00 per transaction ₹15.00 per MTF transaction
12. CUSPA Pledge Charges Creation of Auto Pledge/Release of Pledge in favour of CUSPA	₹8.00 per payable by the Pledgor
13. Rematerialisation	Higher of ₹10 per certificate or ₹10 per 100 shares No fee shall be collected in case of Government Securities
14. Restat-SOA/Redemption	Flat fee of ₹10 per transaction
15. DIS Booklet Re-issue	₹10/- per booklet of 10 leaves plus ₹50/- courier charges
16. Statement of Transactions & Holdings (Printed & E-statements)	CAS Physical: ₹6 per statement Email: ₹0.50/statement Holdings (Physical): ₹25 per statement
17. NDU Charges	₹24/- per request or 0.01% on transaction value, whichever is higher
18. GST & Other statutory taxes	Extra on all charge types – as applicable from time to time

* As per actual CDSL charges and are subject to changes as and when CDSL changes its charge structure.

** BOs must give valid E-mail ID as Easi Registration will be cancelled if Easi account is not accessed within 60 days of receiving password from CDSL.

*** On Market charges as applicable under respective schemes shall be levied in the Sale Contract. Refund of this charge will be given (in Trading Ledger) only if BOs have NOT delivered securities from their account with PL-DP. Deliveries on behalf of BO from their securities held in PL Beneficiary (Hold / Margin / Collateral) account will be charged as mentioned above under respective schemes.

# Transaction cum holding statement is sent by CDSL directly to BO’s correspondence address or registered E-mail ID (in case of E-statement) on DP’s behalf.

• NEFT/RTGS of DP Bills may be made to our ICICI Bank A/c. no. 000405034307 (IFSC Code: ICIC0000004 / MICR Code: 400229002).
• All cheque payments are to be made in the name of “Prabhudas Lilladher Pvt. Ltd.” It may be handed over to DP Department at H.O. or to our representative in BO’s local area for deposit into our account. Out-station cheques will not be accepted at H.O.
• Cash deposited in out-station branches & cheques returned by Bank will attract bank charges as applicable.
• AMC will be pro-rated monthly from the month in which account is opened till end of first financial year. This is not applicable to ‘BSDA’ and ‘Lifetime No AMC’ schemes.
• For subsequent years, AMC is payable in full before 30th April. In case BO wishes to discontinue in subsequent year, he must ensure that account is closed before 31st March.
• BSDA (Basic Services Demat Account under SEBI Circular dated 27/08/2012) is applicable to Individual BO account where the 1st/Sole holder maintains a single demat account across both depositories and value of securities in the BSDA account does not exceed ₹10 lakhs (revised w.e.f. September 2024 based on SEBI Circular dated 28/06/2024).
• If the value of holdings in BSDA a/c exceeds ₹10 lakhs at any date, AMC as mentioned under Standard Scheme becomes applicable & shall be levied from the month in which account crosses the prescribed limit.
• BSDA Eligible Accountholders shall be converted by default into BSDA account on the date of subsequent AMC Billing cycle (i.e., in April) based on value of holdings as on 31st March. BOs wishing to continue with existing regular schemes must inform DP in writing or via registered email. The value shall be determined based on daily closing rate files received from CDSL.
• Deposit under Economy & Gold schemes shall be interest-free deposits and will have a lock-in of minimum 2 years. If account is closed earlier, refund will be processed only after 2 years.
• Economy & Gold scheme facility can be availed only if the deposit is paid upfront along with the Account Opening Form or at the time of shifting to deposit scheme (for existing accounts).
• DP Bills of previous day’s transactions are processed on the subsequent working day. Deposit refunds post account closure will be made within 30 days after adjusting dues, if any.
• No scheme change will be entertained mid-year. Previous bills will not be adjusted.
• Instructions via Fax will not be executed unless BO has submitted a Fax Indemnity. These must be followed by hard copy within 48 hours, failing which the facility may be withdrawn.
• On Market instructions must reach PL-DP by 5:30 p.m. on the day before pay-in day. Late instructions (on pay-in day) are accepted only at client’s risk. PL-DP is not liable for delays.
• BO account shall be frozen for all operations on failure/delay in DP charge payments until all dues are cleared along with interest, if applicable.
• If outstanding DP dues remain unpaid after repeated reminders, PL-DP reserves the right to close the account (if no holdings), after giving a one-month notice.
• Any unlisted service shall be charged separately as per DP’s discretion.
• All PL-DP charges are based on existing CDSL charges and are subject to revision if CDSL changes its structure. PL-DP also reserves the right to revise tariffs with a one-month notice.

DO'S

• Register for CDSL’s internet-based facility ‘easi’ to monitor your demat account: CDSL Easi Registration.
• Register for CDSL’s SMS Alert facility - SMART and obtain alerts for any debits in your demat account.
• CDSL sends alerts for changes in master details, debit in demat, pledge creation, nominee changes, etc. via SMS and email.
• Check SMS and emails regularly from CDSL. If a transaction wasn't executed by you, email [email protected] immediately.
• Notify your DP of changes to personal info (Address, Email ID, Mobile number, etc.) in the prescribed format and confirm updates.
• Protect your login credentials. Use strong, complex passwords and change them regularly.
• Freeze your demat account if not being used for a long duration.
• Before granting Power of Attorney (PoA), understand the scope and implications thoroughly.
• Ensure you receive periodic transaction statements from your DP (monthly if there are transactions).
• On receiving your statement, report any unauthorized debits or credits to your DP immediately. If unresolved, lodge a complaint at: CDSL Grievance Portal.
• Keep your Delivery Instruction Slips (DIS) booklet safe. Report lost booklets immediately in writing to stop unused slips.

DON'TS

• DO NOT give blank, signed DIS to anyone. Fill all transaction details before handing over.
• DO NOT share One Time Passwords (OTP) from DP/CDSL with anyone. Use only yourself.
• DO NOT share login credentials of any CDSL e-facilities like e-DIS or Easiest.
• DO NOT download unknown apps on your device; they may steal confidential data.

Investor Charter - Depository Participant

1. Vision

Towards making Indian Securities Market - Transparent, Efficient, & Investor friendly by providing safe, reliable, transparent and trusted record keeping platform for investors to hold and transfer securities in dematerialized form.

2. Mission

• To hold securities of investors in dematerialised form and facilitate its transfer, while ensuring safekeeping of securities and protecting interest of investors.
• To provide timely and accurate information to investors with regard to their holding and transfer of securities held by them.
• To provide the highest standards of investor education, investor awareness and timely services so as to enhance Investor Protection and create awareness about Investor Rights.

3. Details of business transacted by the Depository and Depository Participant (DP)

A Depository is an organization which holds securities of investors in electronic form. Depositories provide services to various market participants - Exchanges, Clearing Corporations, Depository Participants (DPs), Issuers and Investors in both primary as well as secondary markets. The depository carries out its activities through its agents which are known as Depository Participants (DP).

Details available on the links https://nsdl.co.in/dpsch.php & https://www.cdslindia.com/esevices/DP/DPList

4. Description of services provided by the Depository through Depository Participants (DP) to investors

(1) Basic Services

Sr. No.	Brief about the Activity / Service	Expected Timelines for processing by the DP after receipt of proper documents
1.	Dematerialization of securities	7 days
2.	Rematerialization of securities	7 days
3.	Mutual Fund Conversion / Destatementization	5 days
4.	Re-conversion / Restatementisation of Mutual fund units	7 days
5.	Transmission of securities	7 days
6.	Registering pledge request	15 days
7.	Closure of demat account	30 days
8.	Settlement Instruction	For T+1 day settlements, Participants shall accept instructions from the Clients, in physical form up to 4 p.m. (in case of electronic instructions up to 6.00 p.m.) on T day for pay-in of securities. For T+0 day settlements, Participants shall accept EPI instructions from the clients, till 11:00 A.M on T day. Note: ‘T’ refers ‘Trade Day’

(2) Additional Services

Depositories provide special services like pledge, hypothecation, internet-based services etc. in addition to their core services and these include...

(2)Depositories provide special services like pledge, hypothecation, internet-based services etc. in addition to their core services and these include

1. Value Added Services

Sr. No.	Type of Activity / Service	Brief about the Activity / Service
1.	Value Added Services	Depositories also provide value added services such as Basic Services Demat Account (BSDA) Transposition cum dematerialization Linkages with Clearing System Distribution of cash and non-cash corporate benefits (Bonus, Rights, IPOs etc.), stock lending, demat of NSC / KVP, demat of warehouse receipts etc.

2.

Consolidated Account Statement (CAS)

CAS is issued 10 days from the end of the month (if there were transactions in the previous month) or half yearly (if no transactions).

3.

Digitalization of services provided by the depositories

Depositories offer below technology solutions and e-facilities to their demat account holders through DPs: E-account opening Online instructions for execution e-DIS / Demat Gateway e-CAS facility Miscellaneous services

5. Details of Grievance Redressal Mechanism

(1) The Process of investor grievance redressal

1.	Investor Complaint / Grievances	Investor can lodge complaint/ grievance against the Depository/DP in the following ways: a. Electronic mode – SCORES 2.0 (a web based centralized grievance redressal system of SEBI): https://scores.sebi.gov.in/ Two Level Review for complaint/grievance against DP: - First review done by Designated Body - Second review done by SEBI Respective Depository’s web portal dedicated for the filing of complaint: https://investor.nsdl.com/portal/en/home & https://www.cdslindia.com/Footer/grievances.aspx Emails to designated email IDs of Depository: [email protected] & [email protected] b. Offline mode – NSDL - Query / Complaint Form CDSL - Investors can send physical letters to CDSL at their registered office address The complaints/ grievances lodged directly with the Depository shall be resolved within 21 days.
2.	Online Dispute Resolution (ODR) platform for online Conciliation and Arbitration	If the Investor is not satisfied with the resolution provided by DP or other Market Participants, then the Investor has the option to file the complaint/ grievance on SMARTODR platform for its resolution through online conciliation or arbitration. https://smartodr.in/register
3.	Steps to be followed in ODR for Review, Conciliation and Arbitration	Investor to approach Market Participant for redressal of complaint If investor is not satisfied with response of Market Participant, he/she can escalate the complaint on SEBI SCORES portal. Alternatively, the investor may also file a complaint on SMARTODR portal for its resolution through online conciliation and arbitration. Upon receipt of complaint on SMARTODR portal, the relevant MII will review the matter and endeavour to resolve the matter between the Market Participant and investor within 21 days. If the matter could not be amicably resolved, then the Investor may request the MII to refer the matter case for conciliation. During the conciliation process, the conciliator will endeavour for amicable settlement of the dispute within 21 days, which may be extended by 10 days by the conciliator. If the conciliation is unsuccessful, then the investor may request for arbitration.
		The arbitration process to be concluded by arbitrator(s) within 30 days, which is extendable by 30 days.

(2)Illustration of New Grievance Redressal System:

Click here for the flow-chart of New Grievance Redressal System.10

6.Guidance pertaining to special circumstances related to market activities: Termination of the Depository Participant

Sr. No.	Type of special circumstances	Timelines for the Activity / Service
1.	▪ Depositories to terminate the participation in case a participant no longer meets the eligibility criteria and/or any other grounds as mentioned in the bye laws like suspension of trading member by the Stock Exchanges. ▪ Participant surrenders the participation by its own wish.	Client will have a right to transfer all its securities to any other Participant of its choice without any charges for the transfer within 30 days from the date of intimation by way of letter/email.

Information contained in links to the investor charter

This document contains the contents in main Charter mapped with the same superscript. Para 4 (2) of Investor Charter Point 1: Value Added Services
a.Basic Services Demat Account (BSDA)1: The facility of BSDA with limited services for eligible individuals was introduced with the objective of achieving wider financial inclusion and to encourage holding of demat accounts. As per the SEBI Direction, No Annual Maintenance Charges (AMC) shall be levied, if the value of securities holding in the demat account (Debt as well as other than debt securities combined) is upto Rs. 4 lakhs. For value of securities holding in the demat account (Debt as well as other than debt securities combined) is more than Rs. 4 lakhs but upto Rs. 10 lakhs AMC not exceeding Rs. 100 is chargeable. b.Transposition cum dematerialization2: In case of transposition-cum-dematerialisation, client can get securities dematerialised in the same account if the names appearing on the certificates match with the names in which the account has been opened but are in a different order. The same may be done by submitting the security certificates along with the Transposition Form and Demat Request Form. c.Linkages with Clearing System3 For actual delivery of securities to the clearing system from the selling brokers and delivery of securities from the clearing system to the buying broker.

Point 3: Digitization of services provided by the depositories
a.E-account opening4: Account opening through digital mode, popularly known as “On-line Account opening”, wherein investor intending to open the demat account can visit DP website, fill in the required information, submit the required documents, conduct video IPV and demat account gets opened without visiting DPs office.

b.Online instructions for execution5: Internet-enabled services like Speed-e (NSDL) empower a demat account holder in managing his/her securities ‘anytime-anywhere’ in an efficient and convenient manner and submit instructions online without the need to use paper. These facilities allows Beneficial Owner (BO) to submit transfer instructions and pledge instructions including margin pledge from their demat account. The instruction facilities are also available on mobile applications through android, windows and IOS platforms.

c.e-DIS / Demat Gateway6: Investors can give instructions for transfer of securities through e-DIS apart from physical DIS. Here, for on-market transfer of securities, investors need to provide settlement number along with the ISIN and quantity of securities being authorized for transfer. Client shall be required to authorize each e-DIS valid for a single settlement number / settlement date, by way of OTP and PIN/password, both generated at Depositories end. Necessary risk containment measures are being adopted by Depositories in this regard.

d.e-CAS facility7: Consolidated Account Statements are available online and could also be accessed through mobile app to facilitate the investors to view their holdings in demat form.

e.Miscellaneous services8: Transaction alerts through SMS, e-locker facilities, chatbots for instantaneously responding to investor queries etc. have also been developed.

Para 5 (1) (b) of Investor Charter

Offline Mode:

Query / Complaint form – for Depository Services

Date: _____________
Name of the Investor: __________________________________________________________
Demat Account no: DP ID: IN____________; Client ID: _____________ and PAN: ___________
Mobile no: ______________________ & Email ID: ___________________________________
Type & Sub-type of Query/Complaint: ______________________________________________

Query / Complaint in detail

Note: For trading and broking related queries/complaints, you may approach your stockbroker or exchange, where a stockbroker is a member. Trading and broking related query and complaint doesn’t fall under the purview of depository.

Name and signature of Demat account holder/s:

Para 7 of Investor Charter
DOs and DON'Ts for Investors11

sr.no	Guidance
i.	Always deal with a SEBI registered Depository Participant for opening a demat account.
ii.	Read all the documents carefully before signing them.
iii.	Read all the documents carefully before signing them.
iii.	Before granting Power of attorney to operate your demat account to an intermediary like Stock Broker, Portfolio Management Services (PMS) etc., carefully examine the scope and implications of powers being granted.
iv.	Always make payments to registered intermediary using banking channels. No payment should be made in name of employee of intermediary.
v.	Accept the Delivery Instruction Slip (DIS) book from your DP only (pre-printed with a serial number along with your Client ID) and keep it in safe custody and do not sign or issue blank or partially filled DIS slips. Always mention the details like ISIN, number of securities accurately. In case of any queries, please contact your DP or broker and it should be signed by all demat account holders. Strike out any blank space on the slip and Cancellations or corrections on the DIS should be initialed or signed by all the account holder(s). Do not leave your instruction slip book with anyone else. Do not sign blank DIS as it is equivalent to a bearer cheque
vi.	Inform any change in your Personal Information (for example address or Bank Account details, email ID, Mobile number) linked to your demat account in the prescribed format and obtain confirmation of updation in system
vii.	Mention your Mobile Number and email ID in account opening form to receive SMS alerts and regular updates directly from depository.
viii.	Always ensure that the mobile number and email ID linked to your demat account are the same as provided at the time of account opening/updation.
ix.	Do not share password of your online trading and demat account with anyone.
x.	Do not share One Time Password (OTP) received from banks, brokers, etc. These are meant to be used by you only.
xi.	Do not share login credentials of e-facilities provided by the depositories such as e-DIS/demat gateway, SPEED- e/easiest etc. with anyone else.
xii.	Demat is mandatory for any transfer of securities of Listed public limited companies.
xiii.	If you have any grievance in respect of your demat account, please write to designated email IDs of depositories or you may lodge the same with SEBI online at https://scores.sebi.gov.in
xiv.	Keep a record of documents signed, DIS issued and account statements received.
xv.	As Investors you are required to verify the transaction statement carefully for all debits and credits in your account. In case of any unauthorized debit or credit, inform the DP or your respective Depository.
xvi.	Appoint a nominee to facilitate your heirs in obtaining the securities in your demat account, on completion of the necessary procedures.
xvii.	Register for Depository's internet based facility or download mobile app of the depository to monitor your holdings.
xviii.	Ensure that, both, your holding and transaction statements are received periodically as instructed to your DP. You are entitled to receive a transaction statement every month if you have any transactions.
xix.	Do not follow herd mentality for investments. Seek expert and professional advice for your investments
xx.	Beware of assured/fixed returns

Investor Charter

Para 8: Rights of Investors

1. Receive a copy of KYC and account opening documents.
2. No minimum balance is required in a demat account.
3. No charges are payable for opening a demat account.
4. Receive a copy of Power of Attorney if executed (not mandatory as per SEBI/Exchanges). Authorization can be revoked anytime.
5. You can open multiple demat accounts in the same name with one or more DPs.
6. Receive periodic statements and reconcile discrepancies with DP or Depositories.
7. Create pledge/encumbrance on demat holdings.
8. Right to give standing instructions for crediting securities.
9. Freeze/defreeze the demat account or specific securities.
10. In case of grievances, approach the Participant, Depository, or SEBI for resolution.
11. Eligible investors can vote on company resolutions via Depository’s e-Voting platform.
12. Receive information about fees/charges. Fee increases require 30 days’ written notice.
13. Right to indemnification for loss due to negligence of DP or Depository.
14. Right to opt out of the Depository system for any security.

Para 9: Responsibilities of Investors

1. Deal with SEBI-registered DP for demat/KYC activities.
2. Provide complete documents and fill forms in own handwriting.
3. Read all documents before signing.
4. Accept DIS booklet with client ID; do not sign or issue blank slips.
5. Mention ISIN and number of securities accurately.
6. Report and confirm changes in demat account information.
7. Verify and reconcile demat balances/statements.
8. Appoint nominees for succession.
9. Avoid fraudsters offering unsolicited trading opportunities.

Para 10: Code of Conduct for Depositories

1. Abide by SEBI Act, Depositories Act, rules, and circulars.
2. Adopt appropriate due diligence.
3. Implement risk management and governance practices.
4. Ensure investor protection and education.
5. Treat all members fairly and transparently.
6. Report any violations by issuers or agents to SEBI.
7. Safeguard investor interests and market integrity.
8. Promote best business practices.
9. Act in good faith and avoid conflicts of interest.
10. Refrain from unfair competition.
11. Clearly define roles and responsibilities of key personnel.
12. Be responsible for employee actions.
13. Ensure participant compliance and investor protection.

Para 11: Code of Conduct for Participants

1. Protect investor interests.
2. Provide professional advice and efficient service.
3. Handle investor inquiries and grievances promptly.
4. Maintain integrity in dealings with clients and intermediaries.
5. Promptly open accounts and process forms and instructions.
6. Resolve complaints within one month.
7. Provide fee changes with proper notice.
8. Avoid unfair competition and exaggerated claims.
9. Keep client information confidential unless authorized or legally required.
10. Cooperate with SEBI as needed.
11. Maintain competency and comply with SEBI regulations and Ombudsman awards.
12. Do not submit false or misleading documents to SEBI.
13. Submit required documents promptly when requested.
14. Inform SEBI of any legal actions or compliance breaches.
15. Maintain an inward mail system.
16. Use maker-checker principle for transactions.
17. Ensure data continuity and backups.
18. Empower the compliance officer.
19. Maintain internal controls and operational capabilities.
20. Be accountable for employee actions.
21. Ensure senior management has timely access to business information.
22. Adopt good corporate policies and governance.

investor charter-Stock Brokers

vision To follow the highest standards of ethics and compliances while facilitating trading by clients in securities in a fair and transparent manner, so as to contribute in creation of wealth for investors.

Mission i.To provide high quality and dependable service through innovation, capacity enhancement, and use of technology. ii.To establish and maintain a relationship of trust and ethics with the investors. iii.To observe highest standard of compliances and transparency. iv.To always keep 'protection of investors' interest' as the goal while providing service. v.To ensure confidentiality of information shared by investors unless such information is required to be provided in furtherance of discharging legal obligations or investors have provided specific consent to share such information.

Services provided to Investors Execution of trades on behalf of investors. Issuance of Contract Notes. Issuance of intimations regarding margin due payments. Facilitate execution of early pay-in obligation instructions. Periodic Settlement of client’s funds. Issuance of retention statement of funds at the time of settlement. Risk management systems to mitigate operational and market risk. Facilitate client profile changes in the system as instructed by the client. Information sharing with the client w.r.t. relevant Market Infrastructure Institutions (MII) circulars. Provide a copy of Rights & Obligations document to the client. Communicating Most Important terms and Conditions (MITC) to the client. Redressal of Investor’s grievances.

Rights of Investors •Ask for and receive information from a firm about the work history and background of the person handling your account, as well as information about the firm itself (including website providing mandatory information). •Receive complete information about the risks, obligations, and costs of any investment before investing. •Receive a copy of all completed account forms and rights & obligation document. •Receive a copy of ‘Most Important Terms & Conditions’ (MITC). •Receive account statements that are accurate and understandable. •Understand the terms and conditions of transactions you undertake. •Access your funds in a prescribed manner and receive information about any restrictions or limitations on access. •Receive complete information about maintenance or service charges, transaction or redemption fees, and penalties in form of tariff sheet. •Discuss your grievances with compliance officer / compliance team / dedicated grievance redressal team of the firm and receive prompt attention to and fair consideration of your concerns. •Close your zero balance accounts online with minimal documentation. •Get the copies of all policies (including Most Important Terms and Conditions) of the broker related to dealings of your account. •Not be discriminated against in terms of services offered to equivalent clients. •Get only those advertisement materials from the broker which adhere to Code of Advertisement norms in place. •In case of broker defaults, be compensated from the Exchange Investor Protection Fund as per the norms in place. •Trade in derivatives after submission of relevant financial documents to the broker subject to brokers’ adequate due diligence. •Get warnings on the trading systems while placing orders in securities where surveillance measures are in place. •Get access to products and services in a suitable manner even if differently abled. •Get access to educational materials of the MIIs and brokers. •Get access to all the exchanges of a particular segment you wish to deal with unless opted out specifically as per Broker norms. •Deal with one or more stockbrokers of your choice without any compulsion of minimum business. •Have access to the escalation matrix for communication with the broker. •Not be bound by any clause prescribed by the Brokers which are contravening the Regulatory provisions.

Various activities of Stock Brokers with timelines

Sr.No	Activites	Expected Timelines
1	KYC entered into KRA System and CKYCR	3 working days of account opening
2	Client Onboarding Immediate	Immediate but not later than one week
3	Order execution	Immediate on receipt of order, but not later than the same day
4	Allocation of Unique Client Code	Before trading
5	Copy of duly completed Client Registration Documents to clients	7 days from the date of upload of Unique Client Code to the Exchange by the trading member
6	Issuance of contract notes	24 hours of execution of trades
7	Collection of upfront margin from client	Before initiation of trade
8	Issuance of intimations regarding other margin due payments	At the end of the T day
9	Settlement of client funds	First Friday/Saturday of the month / quarter as per Exchange pre-announced schedule
10	'Statement of Accounts' for Funds, Securities and Commodities	Monthly basis
11	Issuance of retention statement of funds/commodities	5 days from the date of settlement
12	Issuance of Annual Global Statement	30 days from the end of the financial year
13	Investor grievances redressal	21 calendar days from the receipt of the complaint

DOs and DON'Ts for Investors

DOs 1.Read all documents and conditions being agreed before signing the account opening form. 2.Receive a copy of KYC, copy of account opening documents and Unique Client Code. 3.Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes. 4.Receive all information about brokerage, fees and other charges levied. 5.Register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions. 6.If executed, receive a copy of Demat Debit and Pledge Instruction (DDPI) However, DDPI is not a mandatory requirement as per SEBI / Stock Exchanges. Before granting DDPI, carefully examine the scope and implications of powers being granted. 7.Receive contract notes for trades executed, showing transaction price, brokerage, GST and STT/CTT etc. as applicable, separately, within 24 hours of execution of trades. 8.Receive funds and securities/ commodities on time, as prescribed by SEBI or exchange from time to time. 9.Verify details of trades, contract notes and statement of account and approach relevant authority for any discrepancies. Verify trade details on the Exchange websites from the trade verification facility provided by the Exchanges. 10.Receive statement of accounts periodically. If opted for running account settlement, account has to be settled by the stock broker as per the option given by the client (Monthly or Quarterly). 11.In case of any grievances, approach stock broker or Stock Exchange or SEBI for getting the same resolved within prescribed timelines. 12.Retain documents for trading activity as it helps in resolving disputes, if they arise. DON'Ts 1.Do not deal with unregistered stock broker. 2.Do not forget to strike off blanks in your account opening and KYC. 3.Do not submit an incomplete account opening and KYC form. 4.Do not forget to inform any change in information linked to trading account and obtain confirmation of updation in the system. 5.Do not transfer funds, for the purposes of trading, to anyone other than a stock broker. No payment should be made in name of employee of stock broker. 6.Do not ignore any emails / SMS’s received with regards to trades done, from the Stock Exchange and raise a concern, if discrepancy is observed. 7.Do not opt for digital contracts, if not familiar with computers. 8.Do not share trading password. 9.Do not fall prey to fixed / guaranteed returns schemes. 10.Do not fall prey to fraudsters sending emails and SMS’s luring to trade in stocks / securities promising huge profits. 11.Do not follow herd mentality for investments. Seek expert and professional advice for your investments. Additionally, Investors may refer to Dos and Don'ts issued by MIIs on their respective websites from time to time.
Grievance Redressal Mechanism
The process of investor grievance redressal is as follows:

1	Investor Complaint / Grievance	Investor can lodge a complaint/grievance against a stock broker in the following ways: With Stock Broker: Email the complaint to the designated Investor Grievance email ID of the broker. Resolution should be within 21 days. With Stock Exchanges: Via SCORES 2.0 – SEBI’s web-based grievance redressal system: https://scores.sebi.gov.in Complaint is reviewed at two levels: By Designated Body / Exchange By SEBI Emails can also be sent to Exchange's designated email IDs
2	Online Dispute Resolution (ODR)	If dissatisfied with the response from the Market Participant, investor can file a complaint on the SMARTODR platform for resolution via online conciliation or arbitration.
3	ODR Process Steps	Investor first approaches Market Participant for redressal. If unsatisfied, investor can: Escalate via SEBI SCORES portal File complaint on SMARTODR portal MII reviews complaint and attempts resolution within 21 days. If unresolved, matter is referred for conciliation. Conciliation to resolve the issue within 21 days (extendable by 10 days). If conciliation fails, investor may request arbitration. Arbitration to be concluded within 30 days (extendable by another 30 days).

Handling of Investor's claims / complaints in case of default of a Trading Member / Clearing Member (TM/CM) Default of TM/CM Following steps are carried out by Stock Exchange for benefit of investor, in case stock broker defaults:
•Circular is issued to inform about declaration of Stock Broker as Defaulter. •Information of defaulter stock broker is disseminated on Stock Exchange website. •Public Notice is issued informing declaration of a stock broker as defaulter and inviting claims within specified period. •Intimation to clients of defaulter stock broker via emails and SMS for facilitating lodging of claims within the specified period.
Following information is available on Stock Exchange website for information of investors: -
•Norms for eligibility of claims for compensation from IPF. •Claim form for lodging claim against defaulter stock broker. •FAQ on processing of investors’ claims against Defaulter stock broker. •Provision to check online status of client’s claim. •Standard Operating Procedure (SOP) for handling of Claims of Investors in the Cases of Default by Brokers •Claim processing policy against Defaulter/Expelled members •List of Defaulter/Expelled members and public notice issued