THIS AGREEMENT (hereinafter referred to as “this Agreement”) is entered
on this the ___ day of_____________200__between KK Securities Ltd., a company incorporated
under the Companies Act, 1956 having its registered office at 76-77, Scindia House
Janpath, Connaught Place, New Delhi - 110001 (hereinafter referred to as “the
Member”, which expression shall unless repugnant to the meaning or context
thereof, be deemed to mean and include its successors and assigns) of the One Part.
AND
Mr./Ms/M/s.________________________, son/wife/daughter of Mr.__________________
and residing at__________________________________/a Company incorporated under the
Companies Act 1956/ a partnership firm registered under the Indian Partnership Act,
1932 and having its Registered Office/Office at _______________________________________________
hereinafter referred to as “the Client”, which expression shall, unless
repugnant to the meaning or context thereof, be mean and include (if the Clients
is an individual) his/her heirs executors, administrators, legal representatives
and permitted assigns, (if the Clients is a partnership firm), the partners for
the time being of the said firm, the survivors, of survivor of them and their respective
heirs executors, administrators, legal representatives (if the Client is a company
or other body corporate) its successors of the other part.
WHEREAS: -
(i)The Member is a member of National Stock Exchange of India Limited, (hereinafter
Referred to as “ the Exchange”) and registered as a stockbroker with
Securities and Exchange Board of India (hereinafter referred to as “SEBI”)
under certificate of registration no. INB 230770030.
(ii)The member is registered as a member on the Derivatives Segment of NSE and is
registered with SEBI under certificate of registration no. INF 230770030
(iii)The Member is also registered as a Depository Participant of National Securities
Depositories Limited.
(iv)The Client is desirous of investing/trading in those securities/contracts/other
instruments admitted to dealings on the Exchange as defined in the Rules, Bye-Laws
and Regulations of the Exchange (including the Bye-Laws, Rules and Regulations of
the various segments of the Exchange ) and circulars issued from time to time and
other Securities and also availing of various other services which may from time
to time be offered to the Client by the Member
(v)The Member has offered to provide to the Client services as hereinafter specified
to the Client and the Client Desires to avail of the Member’s services for,
inter alia purchasing, selling or otherwise dealing in Securities.
(vi)The Client has satisfied itself of the capability of the Member to deal in securities
and/or deal in derivatives \ contracts and wishes to execute his/her/its orders
through the Member, and the client shall from to time continue to satisfy himself/herself/itself
of such capability of the Member in providing the services before executing orders
through it.
(vii)The Member has taken steps and shall takes steps to make the Client aware of
the precise nature of the Member’s Liability for business to be conducted,
including any limitation on that liability and the capacity in which it acts.
(viii)The Member and the Client agree to be bound by all the Rules Bye-laws and
Regulations of the Exchange and circulars issued thereunder and the Rules and Regulations
of SEBI and relevant Notifications of Government authorities as may be in force
from time to time.
(ix)The Member has developed a Website under the name “HTTP://WWW.KKSECURITIES.COM”
(hereinafter called “the website”). The website is owned, operated and
maintained by the Member. The Client has agreed to avail the services rendered by
the Member through the use of Website;
NOW THEREFORE IN CONSIDERATION OF THE MUTUAL UNDERSTANDING AS SET FORTH IN THIS
AGREEMENT, AND SUBJECT TO THE TERMS AND CONDITIONS SET OUT HEREIN AND ALSO IN THE
MEMBER’S WEBSITE AND RELYING ON THE REPRESENTATIONS AND WARRANTIES MENTIONED
HEREIN, THE PARTIES HERETO HAVE AGREED TO THE FOLLOWING TERMS AND CONDITIONS. 1.
THE PARTIES HERE TO AGREE AS UNDER: GENERAL TERMS AND CONDITIONS GOVERNING THE SERVICE
1.1. The Member hereby agrees to provide to the Client services
in respect of buying, selling and otherwise dealing in securities which are admitted
for dealings on the Exchange and the Client hereby agrees to avail such services
provided by the Member.
1.2. Transaction Order System The Client shall transmit his/her/its
orders to the Member through the internet over the Member’s web site; or through
telephone (as per the predefined procedure of forwarding the order through a phone
broking executive or in such other manner as the Member may permit) or through any
letter or other form of written or oral communication.
1.3. The Client hereby authorises the Member to rely and act on,
and treat as fully authorised by and binding upon the Client, any order, instruction
or communication (by whatever means transmitted and whether or not in writing) which
purports to have been given and which the Member reasonably believes in good faith
to have been given by the Client or a person duly authorised to act on behalf of
the Client. The Client agrees that he/she/it shall be responsible to the Member
for all commitments and obligations made or entered into in the Client’s name
whether in writing or orally and howsoever communicated or purported to be given
as aforesaid.
1.4. The Client shall from time to time notify the Member in writing
of the names of the persons who are authorised to give instructions in relation
to this Agreement to the Member on behalf of the Client. Until the Member is notified
in writing to the contrary, the Member shall be entitled to assume that any of those
persons has full and unrestricted power to give such instructions on behalf of the
Client (by whatever means transmitted and whether or not in writing) which purports
to have emanated and which the Member believes to have emanated from the Client
or from any such authorised person and, if the Member acts in good faith on such
instructions, such instructions shall be binding on the Client without restriction
and the Member shall not be liable for doing so, whether or not the instructions
were given by the Client or such authorised persons or otherwise and the Member
shall not be under any duty to verify the authenticity of such instructions or the
identity of the person(s) giving them.
1.5. Dematerialized Securities : All orders made by the Client
shall only be in securities compulsorily traded in the dematerialized form. All
deliveries of securities made by or to the Client shall only be in the dematerialized
form. The Member shall notify the securities for which this facility is made available
from time to time on the web site. The Member shall have the right to add or delete
securities for which the facility is made available in its absolute discretion and
details of the same would be posted on the web site and no separate intimation there
of will be sent to the Client either physically or electronically.
1.6. Declarations by the Client
The Client hereby confirms and warrants that:
(i)The Member has brought the contents of the risk disclosure document to the notice
of the Client and made the Client aware of the significance of the said document.
The Client confirms that he/she/it has read, understood, appreciated and signed
the Risk Disclosure Document and understands the risks involved in the purchasing,
selling and trading in securities (including entering into various Derivatives contracts)
on the Exchange, whether such risks are contained in the Risk Disclosure Document
or not.
(ii)The failure of the Client to understand the risk involved shall not render a
contract as void or voidable and the Client shall be and shall continue to be responsible
for all the risks and consequences for entering into trades in the segments in which
the Client chose to trade.
(iii)The Client is fully responsible for all his/her/its investment decisions and
trades.
(iv)The Client undertakes to be bound by the Risk Disclosure Document and all amendments
thereto from time to time and the Client undertakes to continuously remain aware
of such amendments, through the website or otherwise.
(v)Acting as a Sub Broker ; The Client agrees that he/she/it will not act as Sub-Broker
without prior written permission of the Member and without obtaining certificate
of registration from Securities and Exchange Board of India (SEBI).
1.7. Material Information on the web site The Client agrees that
all investment and disinvestments decisions are based on the Client’s own
evaluation of financial circumstances and investment objectives. This extends to
any decisions made by the Client on the basis of any information that may be made
available on the web site of the Member. The Client will not hold nor seek to hold
the Member or any of its officers, directors, employees, agents, subsidiaries, affiliates
or business associates liable for any trading losses, cost of damage incurred by
the Client consequent upon relying on investment information, research opinions
or advice or any other material/information whatsoever on the web site whether inserted
by the Member or any other agency The Member does not represent and shall not be
deemed to have represented that the investment information on the web site is accurate
or complete. The Client is aware that any information on the website based on the
research of the Member or other external sources is subject to normal variations
in the stock market and is merely an estimation of the viability or otherwise of
certain investments, and the Member shall not be deemed to have assumed any responsibility
for such information. The Client should seek independent professional advice regarding
the suitability of any investment decisions. The Client also acknowl edges that
the Member’s employees are not authorized to give any such advice and that
the Client will not solicit or rely upon any such advice from the Member or any
of its employees.
1.8. Restrictions on Access to Web Site and Trading The Client
understands that the Member may at any time, at its sole discretion and without
prior notice to the Client, prohibit or restrict the Client’s access to the
use of the web site or related Services and the Client’s ability to trade.
The Client will bear any loss that he/she/it may be faced with due to inability
to execute further trades on account of such restriction
1.9. Phone Broking Services (a) The Client is aware that the Member
offers Phones broking services for placing the securities dealing orders through
phone broking executives over predesignated telephone numbers. The Client can place
securities dealing orders through telephone by confirming his User ID allotted by
the Member at the time of account opening and his personal details as informed by
the Client to the Member. The Client shall ensure proper safeguard of the User ID
allotted to him and keep his personal details confidential. The Client shall immediately
notify the Member in writing, delivered via e-mail and Registered AD, if the Client
becomes aware of any loss, theft or unauthorized use to the Client’s account/User
ID; or any failure by the Client to receive an accurate written confirmation of
any execution including the contract note for the same; or any receipt by the Client
of confirmation of an order and /or execution which the Client did not place; or
any inaccurate information in the Clients account balances, securities position,
or transaction history. In the case where the Client notifies such loss, theft or
unauthorized use of the Client’s User ID to the Member, the Member shall suspend
the use of the account of the Client. However the Client shall be responsible and
liable for all transaction that are carried out by the use of the Client’s
Use ID and personal details. When any of the above circumstances occur, neither
the Member nor any of its officers, directors, employees, agents, affiliates or
subsidiaries will have any responsibility or liability to the Client or to any other
person whose claim may arise through the Client with respect to any of the circumstances
described above (b) In case of phone broking, the Client shall ensure the availability
of funds/securities in his/her/its account intimated to the Member, required for
meeting his/her/its pay in obligation, at the time of placing the order through
phone broking executive. The Member shall not be responsible for any claims, losses,
damages arising out of non availability/shortage of funds/securities in the Clients
account for meeting the pay in obligation. (c) The Client understands that placing
an order with the Member, including a market order does not guarantee execution
of the order. The Member has the absolute right to reject any order that may be
made by the Client for any reason whatsoever including for the breach of the requirement
of maintaining the prescribed Margin in the Client account or the bank account .
(d) The Client is required to ascertain the status of his/her/its order (including
any rejection of the same) which would be posted only on the relevant sections of
the web site. Further the exchange may cancel the trades without giving any reason
therefore. The Member shall be entitled to cancel relative contracts with the Client.
The Member shall not be liable for any losses, damages or claims on account of such
rejection or cancellation of any trade for any reason whatsoever. Further the Member
may at its sole discretion, subject any order placed by the Client to manual review
and entry which may cause delays in the execution of the Client’s orders.
In case of phone broking the Client is required to obtain the confirmation/status
of the order executed for the day by calling the phone broking executive with whom
he/she/it has placed the order. (e) The Member agrees to inform the client and keep
him/her/it apprized 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 Exchange.
2. CONDITIONS GOVERNING TRADING TERMS AND CONDITIONS GOVERNING TRANSACTIONS
IN SECURITIES (i) The Member of the concerned or their respective registrars
shall entertain online transaction request and/or request made through telephone
in the manner provided under this agreement. (ii) For change of address or any personal
details of the Client, the Client shall send a letter or fax to the Member signed
by all the co-holders. (iii) The Client is requested to check up the personal and
bank related details provided by him/her. Neither the Member nor any of the employee
shall accept any liability which may arise as a consequence of erroneous information
provided by the Client. (iv) The Client can view the transaction on the web site.
(v) The Member does not accept any liability for delay in processing time at the
Registrar’s end. (vi) It is explicitly stated herein that the Offer Documents/other
schemes offered by the Member have not been recommended by the Member. (vii) Neither
the Member nor any of its employee/representative shall be liable for any failure
to perform itsobligations, to the extent that such performance has been delayed,
hindered or prevented by systems failure, network, errors, delay or loss of data
due to the above and in circumstances of acts of God, floods, epidemics, quarantine,
riot or civil commotion and war. (viii) The Member shall provide its services on
a best effort basis. However the Member shall not be liable for failure of the system
or for any loss, damage or other costs arising in any way out of: (a) System failure
including failure of ancillary or associated systems, or fluctuation of power, or
other environmental conditions; or (b) Accident transportation, neglect, misuses,
errors, frauds of the Client or agents or any third party; or (c) Any incident,
special or consequential damages including without limitation of loss of Profit.
The Client further agrees to indemnify the Member for any loss that may arise as
a result of systems, failure accident or any of the reasons mentioned above. TERMS
OF USE OF HTTP:// WWW.KKSECURITIES.COM AND OFFLINE TRADING THROUGH ANY OF TTHE TERMINALS
OF KK SECURITIES LTD. (hereinafter referred to as the “SERVICES”)”
These documents (hereinafter referred to as “Agreements”) contains the
terms and conditions of your use of the services through the National Stock Exchange
of India Limited and/or the Bombay Stock Exchange Limited as applicable. Your use
of the Services constitutes your unconditional acceptance of these Agreements. It
is important to note that we reserve the right to change/update the Agreements at
any time without notice to you. You are responsible for regularly reviewing this
Agreements posted on WWW.KKSECURITIES.COM. Your continued use of the Services after
the changes constitutes your unconditional acceptance of the updated Agreements.
TERMS AND CONDITIONS GOVERNING TRANSACTIONS IN DERIVATIVES The
Client shall be bound by the constitution, byelaws, rules, regulations, and the
customs of the Exchange. The failure of a Client to understand the risk involved
or the failure of a Member to explain the risk to the Client shall not render a
contract as void or voidable and the Client shall be and shall continue to be responsible
for all the risks and consequences for entering into trades in Derivatives. The
Client shall not, acting alone or in concert with others directly or indirectly,
hold and control in excess number of permitted futures contracts as fixed from time
to time by the Stock Ex changes. The Client shall not exercise a long or short position
where, acting alone or in concert with others, directly or indirectly the Client
will have exercised in excess of the number of permitted futures contracts as may
be fixed from time to time by the Exchange. The Clients hereby authorises the Member
at its discretion and if the Member deems fit for its protection to buy, sell, or
close out any part or all of the derivative contracts held in the Client’s
accounts with the Member. Any or all such incidental expenses incurred by the Member
will be reimbursed by the Client.
2.1 Margin (i) The Client shall make the prescribed initial margin
in the form of cash and/or in the form of Securities (“the Margin”)
with the Member simultaneously with the opening of the account. Margin shall be
decided at the sole discretion of the Member. The Margin will not be interest bearing.
The Member shall have, at its sole discretion, the irrevocable right to set off
a part or whole of the Margin i.e. by the way of appropriating of the relevant amount
of cash or by sale or transfer of all or some of the Securities which form part
of the Margin, against any dues of the Client in the event of the failure of the
Client to meet any of their respective obligations under these Terms. (ii) The Client
is liable to pay an initial margin up-front on or before creating a position in
any Derivatives contract. Such margin shall be decided upon by the Member or the
Exchanges from time to time. The Client may also be liable to pay withholding margin,
special margins or such other margins as are considered necessary by the Member
or the Exchange from time to time. The Member is permitted in its sole and absolute
discretion to collect additional margin (even though not imposed by the Exchange)
and the Client shall be obliged to pay the same. (iii) The Client agrees and authorises
the Member to determine the market value of securities placed as margin after applying
a haircut that the Member may deem appropriate. The client undertakes to monifor
the market value of such securities on a continuous basis. The client further undertakes
to replenish any shortfall in the value of the margin consequent to a fall in the
market value of such securities placed as margin immediately whether or not the
member intimates such shortfall. (iv) The Member may at its sole discretion prescribe
the payment of Margin in the form of cash instead of or in addition to margin in
form of securities. The Client accepts to comply with the Member’s requirement
of payment of Margin in the form of cash immediately. Without prejudice to the stock
broker’s other rights (including the right to refer a matter o arbitration),
the stock broker shall be entitled to liquidate / close out all or any of the client’s
positions for non- payment of margins or other amount, 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. (v)
The Client agrees to abide by the exposure limits. If any, set by the stockbroker
or by the Exchange or Clearing Corporate or SEBI from time to time. (vi) The Client
agrees that any securities/cash placed by him/her/it as margin may in turn be placed
as margin by the Member with the Exchanges or banks or such other institution as
the Member may deem fit. The Client authorises the Member to do all such acts, deeds
and things as may be necessary and expedient for placing such securities cash with
the Exchanges/Banks/Institutions as margin (vii) Any reference in these terms to
sale or transfer of Securities by the Member shall be deemed to include sale of
the Securities, which form part of the Margin, maintained by the Client with the
Member. In exercise of the Member’s right to sell securities under the Agreement,
the Client agrees that the choice of specific securities to be sold shall be solely
at the Member’s discretion. (viii) The Member agrees 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 SEBI Rules and Regulations circulars /guidelines / Exchanges,
Rules / Regulations /Bye-laws and circulars (ix) The Client agrees and empowers/authorize
the Member to act at its discretion of merging balances kept under various accounts
held with the Member such as, CM Trading Account , F&O Trading Account, margin
trading account etc., to nullify the debit in any other account of the Client held
with the Member without taking any further instructions from the Client.
2.2 Dealings (a) The Client is responsible for all orders, including
any orders that may be executed without the required Margin (as stipulated by the
Member from time to time) in the Client’s account.. If the Client’s
order is executed despite ashortfall in the available Margin, the Client shall,
whether or not the Member intimates such shortfall in the available Margin, instantaneously
pay additional Margin (b) The Client’s positions are valued at the latest
market price available (mark to market) on a continuous basis by the Member. If
on such mark to market, the loss incurred by the Client is more than the Margin
available with the Member, the Client shall instantaneously pay additional Margin
(c) If payment/securities towards the margin or the shortfall in margin is not received
instantaneously to enable restoration of sufficient Margin in the Client’s
account, all or some of the positions of the Client may be squared off or the Securities
placed as Margin by the Client may be sold off by the Member at its sole discretion,
without any further reference to the Client and without prior notification, and
any resultant or associated losses that may occur due to such squaring off or sale
or securities shall be borne by the Client, and the Member is hereby fully indemnified
and harmless by the Client in this regard. (d) Prior to placing an order in connection
with the sale/purchase or transfer of any securities in which Client requires any
form of regulatory or other permission, the Client shall obtain such permission
before placing of the order and shall furnish necessary documents to the Member
prior to the execution of the order. The Client acknowledges and accepts that delays
may occur in relation to the processing of such orders despite the necessary documents
being furnished in a timely manner. The Member may at its sole discretion refuse
to execute any such order till it is satisfied of the legality of the transaction.
The Client is responsible for all costs associated with compliance or failure to
comply with all the regulatory requirements and hereby agrees to fully indemnify
the Member from any costs, losses, claims or other liability arising on account
of such orders.
2.3 Execution of Orders; Confirmation (a) The Client understands
that placing an order with the Member including a market order does not guarantee
execution of the order. The Member has the absolute right to reject any order that
may be made by the Client for any reason whatsoever including for the breach of
the requirement of maintaining the prescribed margin in the Client account or the
bank account. (b) The Client is required to ascertain the status of his/her/its
order (including any rejection of the same) which would be posted only on the relevant
sections of the web site, and no separate confirmation of the execution/rejection
of the order would be sent to the Client either physically or electronicallyFurther,
the Exchange may cancel the trade suomoto without giving any reason therefore and
where the Exchanges cancel trades suomoto, all such trades, including the trades
done on behalf of the Client shall ipso facto stand cancelled. The Member shall
not be liable for any losses, damage or claims on account of such rejection or cancellation
of any trade for any reason whatsoever. Further, the Member may at its sole discretion,
subject any order made by the Client to manual review and entry which may cause
delays in the execution of the Client’s order. (c) The Client is required
to ascertain all ledger balances of Securities in his/her/its accounts which would
be posted only on the relevant section of the website and no separate intimation
of the ledger balances of the Client in his her/its account would be sent to the
Client either physically or electronically. (d) In the event of the sale of any
Securities by the Member at the request of the Client and the inability of the Member
to deliver to the purchaser the securities so sold by reason of the failure of the
Client to supply the Member therewith then, and in such event, but subject to the
provisions of applicable laws, rules and regulations, the Client authorises the
Member to borrow, purchase or otherwise acquire any Securities necessary to make
delivery thereof. Further, the Client accepts liability for any premiums which the
Member may be required to pay, and for any losses, costs, charges, expenses or other
liabilities whatsoever which the Member may sustain or incur by reason of the Member’s
inability to deliver the Securities in question. (e) Without prejudice to any of
the Member’s other rights, the Member shall be entitled at any time (without
liability on the Member’s part and without assigning any reason therefor)
to refuse to act on any particular instructions (including any instructions countermanding
other instructions) from the Client. (f) Neither the Member nor any of its related
companies shall be liable for any loss sustained by the Client, directly or indirectly,
if it is prevented from acting as a direct or indirect result of government restrictions,
the imposition of emergency procedures or suspension of trading by any relevant
exchange, clearinhouse or other market, civil disorder, acts or threatened acts
of terrorism, natural disasters, war, strikes or other circumstances beyond its
control. (g) The Client confirms that the Client is aware that short selling is
not allowed in the Stock Exchanges and the Client undertakes not to short sell in
the Stock Exchanges. The Client confirms that every sell order the Client asks the
Member to execute on the Stock Exchanges will be a “long” sale. (h)
The Member agrees that it shall co-operate in redressing grievance of the client
in respect of transactions routed through it and in removing objections for bad
delivery of shares, rectification of bad delivery, etc. in respect of shares and
securities delivered / to be delivered or received / to be received by the client.
(i) The stock broker shall continue to be responsible for replacing bad delivering
of the client in accordance with applicable “Good & bad delivery norms”
even after termination of the agreement and shall be entitled to recover any loss
incurred by him in such connection form the client.
2.4 Price of Securities The Client understands that with respect
to any order, the Client will obtain the price at which the order was actually executed
in the Market, which may be different from the price at which the Security was trading
when the Client’s order was entered into the Member’s System. By reason
of physical restraints on the Stock Exchanges and rapid changes in the prices to
Securities that frequently takes place, there may, on occasions, be a delay in making
prices or in dealing. The Member may not be able to trade at the prices quoted at
any specific time or “at best” or “at market” and the Client
agrees to be bound by all transactions executed by the Member in connection with
any order. The Member is not liable for any loss arising by reason of its failing,
or being unable, to comply with the terms of an order by or on behalf of the Client.
Where the Member is unable to perform any order in full, it is entitled to effect
partial performance, even without prior reference to or confirmation of the Client
2.5 Mistaken Orders The Member shall not be responsible for any
order, that is made by the Client by mistake and every order that is entered by
the Client through the use of the allotted user name and the security code(s) shall
be deemed to be a valid order for which the Client shall be fully responsible.
2.6 Reconfirmation of Certain Orders The Client hereby confirms
that he/she/it is aware that the Member has provided on the web site a facility
for reconfirmation of order which are unusual and/or large and need to be executed
using the orders may be delayed. The Member reserves the right to reject any order
based on risk perceptions.
2.7 Cancellation or Modification of Orders (i) The execution or
order cancellation or modification is not guaranteed. Cancellation of orders is
possible only if the original order remains pending at the Exchange. Market orders
are subject to immediate execution. The Client shall not presume that an order has
been executed or cancelled or modified and the Client is required to verify the
status of his/her/its orders on the website in accordance with Clause above. (ii)
Unless otherwise specified by the Member, any order not executed at the end of the
day shall stand cancelled.
2.8 Corporate Benefits; Settlement Cycles The Client accepts responsibility
for knowing the status of all corporate benefits like rights and bonus issues, dividends
and stock splits of shares he/she/it intends to trade in or held on his/her/its
account and the eligibility of the shares to meet share pay in obligations to exchanges
whether received by way of purchases, right, bonuses, stock spilt, off market transfer
otherwise. Member will pass to the Client whatever corporate benefits are received
from the companies directly like dividends and bonus shares. For other corporate
benefits/actions like Rights issues/Open offers etc. where shareholders are required
to apply to the company, it is the Client’s responsibility to track announcements
of such corp rate benefits and then apply to the company if Client so desires. The
Member shall ensure due protection to the client regarding client’s rights
to dividends, rights or bonus shares, etc. in respect of whom and for whom it may
have had transaction in securities. Member shall not be liable for any real notional
loss suffered by the Client, if Client fails to apply for such corporate benefits
in time for the shares held by the Member on behalf of the Client. In some cases,
Member at the Client’s request may apply on behalf of the Client fora Rights
issue/Open offer for the shares held by Member on behalf of Client. Member shall
not be liable for any loss/claim whatsoever in case such application is rejected
by the Registrer/ Company/ Manager to the issue for any reason.
2.9 Brokerage and Other Charges (i) The Client agrees to pay the
brokerage charges, Exchange related charges, Statutory levies, charges and any other
charges (including but not limited to security handling charges on settlement) as
are prevailing from time to time and as they apply to the Client’s account
in respect of transactions and services that the Client receives from the Member.
The Member agrees that it shall not charge broker age more than the maximum permissible
as per Rules, Regulations and bye laws of the Exchanges SEBI. The brokerage shall
be paid in the manner intimated by the member to the Client from time to time, including
as a percentage of the value or the trade or as a flat fee or otherwise, together
with the service taxes as may be applicable from time to time on the same. The Client
further agrees to pay any applicable taxes that may be levied on the transaction.
(ii) The Member shall debit the charges of the depository participant for the trades
and the bank charges for the realization of Cheques etc. to the Client’s account.
2.10 Unless otherwise agreed, the Client agrees that when the Member
has executed a purchase or sale transaction on behalf of the Client, the Client
will, by such time and at such place as may be necessary for the Member to make
delivery or payment as required by the Stock Exchange (“due settlement date”),
make payment to the Member against delivery of (or credit to the Client’s
account for) purchased Securities, or make good delivery of sold Securities to the
Member against payment, as the case may be
2.11 If the Client fails to make such payment or delivery of Securities
by the due settlement date the Member is, without prejudice to any other rights
it may have pursuant to this Agreement, hereby authorised to: in the case of a pur
chase transaction, to transfer or sell any such purchased Securities to satisfy
the Client’s obligations to the Member; or in the case of a sale transaction,
to borrow and/or purchase such sold Securities to satisfy the Client’s obligations
to the Member check
2.12 The Client hereby acknowledges that it will be responsible
to the Member for any loss, costs, fees and expenses (including legal expenses on
a full indemnity basis) in connection with the Client’s failure to meet its
obligations by the due settlement dates as described in Clause 2.10.
2.13 The Member may in its absolute discretion determine the priority
in the execution of its clients’ orders, having due regard to the sequence
in which such orders were received and fairness to all clients involved, and the
Client shall not have any claim of priority to another client in relation to the
execution of any order received by the Member.
2.14 The Member and the client agree to reconcile their accounts
at the end of each quarter with reference to all the settlements where payouts have
been declared during the quarter.
2.15 Delayed Payment Charges Not with standing anything contained
in these Terms, any amounts which are overdue from the Client to the Member will
be charged delayed payment charges at the rate of 2% per month or such other rate
as may be determined by the Member and notified on the web site and the Client hereby
authorise the Member to directly debit the same to the account of the Client at
the end of each month.
2.16 Delayed Reporting of Transactions a) if trades or transaction
are reported late to the Member on account of any problems at the Exchange or, for
whatever reason, the Client in turn will be subject to late reporting of transaction.
(b) In addition, any error reported to the Client for any reason whatsoever will
stand subsequently corrected to reflect the transaction that was effected in the
Market.
2.17 Pay Out The Client agrees that the Member shall not be obliged
to deliver any Securities or pay any Securities or p a y a ny money to the Client
unless and until the same has been received by the Member from the Exchange, the
Clearing Corporation/House. Unless the member otherwise determines, and subject
to the Member’s right of set off and other rights, the Securities to be delivered
by the Member to the Client pursuant to the Client’s purchase transaction
shall be credited to the designated depository account of the Client and the sale
proceeds by the Member to the Client shall be deposited to the designated bank account
of the Client.
2.18 Arrangements with Relationship Bank The Member has relationship
with one or more banks (“the relationship Bank”). The web site of the
Member has a payment window through a link to the web site of the relation bank,
which provides the facility. In such a case, the Client would make the payment for
Securities purchased by him/her/it by crediting the purchase amount (along with
the indicated brokerage amount) directly to the account of the Member with the relationship
bank by means of a fund transfer on the pay- in date of the relevant exchange or
by means of a fund transfer on the pay-in date of the relevant Exchange on which
the sale transaction is carried out. The Member expressly states that the payment
gateway mechanism is a service offered by the Banks with whom the Member has established
relation for facilitating the transfer of funds between the Client’s account
and the Member’s account. The Member expressly excludes liability for consequential
loss or damage or loss of profit, business, revenue, goodwill or anticipated saving
which may arise in respect of (i) the payment gateway services offered by such bank
(ii) the payment Mechanism.
2.19 Voice Recordings (a) The Client hereby acknowledges and agrees
to the use of voice recording devices by the Member of any telephone conversation
between the Member and the Client and any of the Client’s authorized persons,
employees, officersor agents, without an automatic tone warning device in order
to permit the Member to verify data concerning any matters relating to the purchase
and/or sale of Securities. (b) The Client confirms that the Member may tape record
conversations with the Client in order to permit the Member to verify information
concerning any matter. The Client agrees to accept the contents of any such recording
as final and conclusive evidence of communications from the Client given by the
Client or on behalf of the Client in case of dispute.
2.20 Conclusiveness of Records The Member’s own records of
the trades/transaction maintained through computer systems or otherwise shall be
accepted as conclusive and binding of the Client for all purposes.
2.21 Set off across the Exchange In the case where the Client or
any members of the Clients group maintains separate accounts to which these facilities
may be extended by the Member to the Client or on any segment of the Exchange the
Client agrees that the Member may set off credit balances of securities and/or funds
in one or more of the accounts of the Client or any member of the Client’s
Group in relation to the said exchange and its segments against the debit balance
of securities and/or funds in one or more of the accounts of the Client or any member
of the Client’s Group in relation to the other exchange and segments of the
exchanges.
3. FREEZING OF THE ACCOUNTS The Client shall be entitled to exercise
the right to close/freeze/pledge the accounts with the depository participant and/or
the bank, as the case may be, only if there is no obligation pending to be met by
the Client to the Member and/or to, any member of the Client’s Group in the
form of cash and/or security.
4. MEMBER CLIENT COMMUNICATION
4.1 Form of Communication Documents which be sent by electronic
delivery the parties may be in the form of an electronic mail (including any auto
replies form the system of the Member) an electronic mail attachment, or in the
form of an available download from the website. The Member shall be deemed to have
fulfilled any legal obligation to deliver to the Client any such document if sent
via electronic delivery provided however that the notice of termination and physical
contract notes specified in the terms here in, shall be in writing.
4.2 Electronic Communication of Documents The Member shall send
to the Client by electronic means the trade confirmation of the trades executed
bill and account statement. The Client agrees that the Member fulfills its legal
obligation to deliver to the Client any such document if sent via electronic delivery.
The Client understands that it is his/her/its responsibility to review, upon first
receipt, whether delivered to Client by mail, E-mail (including any auto replies
from the system of the Member) or other electronic means, all confirmation, statements,
notices, bill and other communication or the contract notes via the physical modeAll
information contained therein shall be binding upon the Client. If the Client does
not object either in writing, within 3 days after any such document is sent to the
Client, the same shall be deemed to have been correct and the same would be binding
on the Client. However, the Member reserves the right, in its absolute discretion,
to determine the validity of the Client’s objection to the transaction, even
though such objection is received after the expiry of 24 hours. The Client agrees
that the Member will not be responsible for non-receipt of documents sent via electronic/physical
delivery due to change in email address of the Client . The Client also agrees that
the Member shall not take cognizance of out of-office/out-of-station auto replies
and the Client is deemed to have received such electronic mails.
4.3 Change of Address Unless the Client informs the Member of the
change of the address for communication in writing all notice circulars, communication
or mail sent to the existing address shall be deemed to have been received by the
Client irrespective of whether they are actually received or not.
4.4 Member’s Liability Under no circumstance shall the Member
or involved in creating, producing, delivering or managing the Member’s services
be liable for any direct, incidental, special or consequential damages that result
from the use of or inability to use the service, delay in transaction of any communication,
in each case for any reason whatsoever (including on account breakdown in systems)
or out of any breach of any warranty or due to any fraud committed by any person
whether in the employment of the member or otherwise.
4.5 Default Whenever the Member deems it necessary for its protection
in its sole and absolute discretion; or if, in the Member’s opinion, the Client
has breached any material term of this Agreement or defaulted in respect of any
transaction with the Member or any related companies to which it is a party; or
if any representation, warranty or undertaking made in this Agreement or in any
document delivered to the Member pursuant to or in connection with this Agreement
was when given or hereafter becomes incorrect in any material respect; or for compliance
with any rules or regulations of any relevant exchange or clearing house; or in
the event that a petition in bankruptcy is filed against the Client or an order
is made or resolution passed for the Client’s voluntary or compulsory winding
up or a meeting is convened for the purpose of considering a resolution that the
Client should be so wound up; or in the event that a judicial declaration of incompetence
is made in respect of the Client or the Client dies; or any warrant or order of
attachment or distress or equivalent order is issued against any of the Client’s
accounts with the Member or any related companies then all amounts owing by the
Client to the Member shall become forthwith payable on demand, and interest will
accrue at the rate specified herein. _ on the amounts outstanding from time to time,
and the Member shall be entitled at its absolute discretion, without further notice
or demand, forthwith to: satisfy any obligation the CLIENT may have to the Member
(either directly or by way of guarantee or other security) out of the sale or other
realization, in such manner and upon such terms as the Member may in its absolute
discretion decide, of all or any part of any property held by the Member and/or
any related companies for any purpose in any account of the Client; cancel any open
orders for the purchase and sale of Securities; sell any or all Securities long
in any account of the Client; buy any or all Securities which may be short in any
account of the Client and exercise its rights under any other provisions of this
Agreement. The Member may apply the net proceeds (after deduction of all fees, costs
and expenses (including legal costs) incurred in connection with the exercise of
any such action referred to in this Clause in reduction of the Client’s then
outstanding obligations or indebtedness to the Member and/or any related companies.
The Client shall at all times be liable for the payment upon demand of any debt
or negative balance whatsoever and howsoever arising on any account (including in
the event of any liquidation of any such account) together with any cost or expense
(including legal costs on a full indemnity basis) incurred by the Member related
to the exercise of its rights under this Agreement and for the payment upon demand
of any debt or negative balance that may exist after the Member has exercised any
of its rights under this Agreement. The Client hereby waives all claims and demands
(if any) against the Member in respect of any loss, involuntary or other wise, directly
arising from the exercise by the Member of the powers conferred by this clause,
howsoever such loss may have been caused (other than through the willful misfeasance
or negligence of the Member or the reckless disregard of the obligations of the
Member under this clause), whether in relation to the timing or manner of the exercise
of such powers or otherwise. The Member and/or any related companies may purchase
the Securities or other assets which are the subject of any sale made pursuant to
this clause free from any right of redemption and neither the Member nor any related
companies shall be accountable to the Client for any profits, charges or commissions
received by any of them or their nominees or agents as a result of the exercise
by the Member of powers conferred pursuant to this clause. Information about default
in payment /delivery and related aspects by a client shall be brought to the notice
of the relevant stock exchange (s). in case where defaulting client is a corporate
entity /partnership / proprietary firm or any other artificial legal entity, then
the name(s) of the director(s)/ promoter(s) / Partner(s) / proprietor as the case
may be, shall also be communicated to the relevant stock exchange(s).
4.6 Amendment/Modification of the Terms This Agreement can be altered,
amended and /or modified by the parties mutually in writing without derogating from
the contents of this Agreement. PROVIDED HOWEVER that if the rights and obligations
of the parties hereto are altered by virtue of change in Rules and regulation of
SEBI or bye law, Rules and Regulations of the stock exchanges or any of them, such
changes shall be deemed to have been incorporated herein in modification of the
rights and obligations of the parties mentioned in this Agreement.
4.7 Notice/Policies Certain policies and/or procedures may be further
outlined on the Member’s web site and material/literature and frequently asked
question (FAQ’s) provided to the Client. Through the use of the Member’s
web site and services the Client agrees to be bound by any and a such notices, polices
and terms of doing business.
5. SECURITY CODE (s) SECURITY PRECAUTION AND INFRASTRUCTURE
5.1 Use of Client-ID Password The Client confirms and agrees that
it will be the sole authorised user of the User name, Password, Client User Identification
Number, Telephone Personal Identification Number (T-Pin) or other identification
or security code by whatever name called, to be given to it by the Member to access
Member’s system or service through Member’s web site, over the telephone
or in such manner as may be permitted by the Member for availing of the service.
The Client accepts sole responsibility for use, confidentiality and protection of
the User name Password, Client User Identification Number, T-Pin or other security
code(s) as issued by the Member to the Client from time to time (hereinafter referred
to as “security codes” as for all orders and information changes entered
into the Client’s account using such security codes. The Client shall ensure
that such security code(s) is/are not revealed to any third party. If the Client
forgets the security code(s) a request change of such security code(s) should be
sent to the Member in writing. On receipt of such request the Member shall discontinue
the use of the old Security code (s) and shall generate new security code(s) for
the Client which shall be communicated to the Client. However theClient shall be
responsible and liable for all transactions that are carried out by the use of the
only Security code (s). Neither he Member nor any of its officers, directors, employees,
agents, affiliates or subsidiaries will have any responsibility or liability to
the Client or to any person whose claim may arise through the respect to any of
the circumstances described above.
5.2 Recording of Password The Client shall memorize the security
code(s) and not record it in written or electronic form. In the event that the Client
does record the security code(s) in written or electronic form he/she/it shall do
so at his/her/its sole risk and responsibility.
5.3 Responsibility for Use of Security Code(s) Any order entered
using the Client’s security code(s) either through the web site or through
telephone or otherwise shall be deemed to be that of the Client. If third parties
gain access to the Member’s services through the use of the Client’s
security code (s) the Client will be responsible for the same The Client shall indemnify
and keep the Member indemnified and harmless the Member liability, costs or damages
arising out of claims or suits by or against such third parties based upon or relating
to such access and use of security code since the primary responsibility for such
transaction shall be that of the Client. The use and storage of any information
including, without limitation, the password portfolio information, transaction activity,
account balances and other information or order on the Client’s personal computer
is at the Client’s own risk and is the Client’s sole responsibility.
5.4 Protection of Security Code(s) The Client shall immediately
notify the Member in writing, delivered via-e-mail and Registered AD, if the Client
becomes aware of any loss, theft or unauthorized use of the Client’s Security
code (s) and account number or any failure by the Client to receive the confirmation
of an execution including the contract note for the same; or any receipt by the
Client of confirmation of an order and/or execution which the Client did not place;
or any inaccurate information in the Client’s account balances, securities
position, or transaction history. In the case where the Client notifies such loss,
theft or unauthorized use of the Client’s Security code (s) password and account
number to the Member, it shall suspend the use of the account of the Client, however
the Client shall be responsible and liable for all transaction that are carried
out by using the Client’s password. When any of the above circumstances occur,
neither the Member nor any of its officers, directors, employees, agents or subsidiaries
will have any responsibility or liabiliy to the Client or to any other person whose
claim may arise through the Client with respect to any circumstances described above.
5.5 Communication Equipment of the Client The Client is responsible
for installing and maintaining the communication equipment (including personal computers
and modems) and telephone or alternative service required for accessing and using
the web site or related service. All communication costs, service charges, levies
and fees incurred by the Client in accessing the web site or related services will
be borne by the Client.
5.6 Client’s infrastructure For the purpose of these Terms,
it is presumed that the Client has all the necessary and compatible infrastructure
ready at its end for the purpose of accessing the web site of the Member or contacting
the phone broking executive of the Member prior to accessing the service provided
pursuant to these terms. The Member will not (and shall not be under any obligation
to) assist the Client in installing the required infrastructure or obtaining the
necessary equipment permits and clearances to establish connectivity or linkages
to the web site of the Member.
5.7 Prevention of Unauthorized Use The Client will install the
necessary safeguards and access restrictions to prevent unauthorized use of Client
computer systems or security code and ensure that no unauthorized person can gain
access to the computer systems or such security codes.
5.8 Liability for Incorrect Instructions The Client agrees to fully
indemnify and hold harmless the Member for any losses, expenses or other consequences
arising from the execution of incorrect/ambiguous or fraudulent instruction that
got entered through the system at the Client’s end.
5.9 Secure Electronic Records and Digital Signature In the event
that the certifying authority and other infrastructure contemplated under the Information
Technology Act, 2000 for ensuring secure electronic records and secure digital signatures
is notified by the concerned authorities and the infrastructure to enable the same
is in place the Member would have the right to require the Client to authorise the
various transaction on the web site by means of such secure electronic records and
secure digital signatures and discontinue the usage of the Client password.
6. MISCELLANEOUS PROVISIONS GOVERNING THE TERMS
6.1 Use of web content The Client agrees that each participating
Exchange or association or agency asserts a proprietary \interest in all of the
market data it furnishes to parties that disseminate the said data. The Client shall
use real-time quotes received on the web site of the Member only for the Client’s
individual use and shall not furnish such data to any other person or entity. The
Client is authorized to use materials which are made available by the Member’s
web site for the Client’s own needs only, and the client is not authorized
to resell access to any such materials or to make copies of any such materials for
sale or use to and by others. The Client shall not delete copyright or other intellectual
property rights notices from printouts of electronically accessed materials from
the Member’s web site.
6.2 Limitation of liability I. The Member does not guarantee, and
shall not be deemed to have guaranteed, the timeliness, sequence, accuracy, completeness,
reliability or content of market information, or messages disseminated to the Client.
The Member shall not be liable for any inaccuracy, error or delay in, or omission,
(1) any such data information or message, or (2) 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 any such data, information or message, due either to any act or
omission by the Member or to any “force majeure” event (e.g. flood,
extraordinary weather condition, earthquake or other act of God, fire, war, insurrection,
riot, labor dispute, accident, action of government, communications, power failure,
shut down of systems for any reason (including on account of computer viruses),
equipment of software malfunction), any fraud committed by any person whether in
the employment of the Member or otherwise or any other cause within or beyond the
reasonable control of the Member. II. The Member shall not be liable for any inaccuracy,
error, false statement, misrepresentation or fraud committed by any sales or other
associated/third parties engaged by the Member to promote the services offered by
it. The Client agrees that he/she/it places no reliance on such persons and will
exercise due care and diligence in relying on any statements made by such persons.
Further such persons are not and cannot be construed as agents of the Member.
6.3 Interruption in service The Member does not warrant that the
service will be uninterrupted or error free. The service is provided in an “as
in” and “as available” basis without warranties of any kind, either
express or implied, including, without limitation, those of merchantability and
fitness for a particular purpose. The client agrees that the Member shall not be
held responsible for delays in transmission of orders due to breakdown of the system
or failure of communication facilities either due to the fault of the systems of
the Member or of the Exchanges or otherwise or for any other delay beyond the reasonable
control of the Member due to a breakdown or failure of communication facilities
or for any other delay beyond the reasonable control of the Member.
6.4 Warranties of Client The Client hereby represents and warrants
that the terms and conditions of these terms have been clearly understood and that
the information furnished to the member is accurate and truthful. The Client confirms
that he/she is of legal age and he/she/it has obtained the necessary approvals from
the relevant regulatory/legal and compliance authorities to access the services
provided pursuant to these terms.
6.5 Indemnity (i) Though orders are generally routed to the market/place
immediately after the time the order is placed by the Client on the system there
may be a delay in execution of the order due to any link/system failure at the Client/Member
Exchange’s end. The Client hereby specifically indemnifies and holds the Member
harmless from any and all claims, and agrees that the Member shall not be liable
for any loss, actual or perceived, caused directly or indirectly by government restriction,
exchange or market regulation, suspension of trading, war, strike, equipment failure,
communication line failure, system failure, security failure on the internet, shut
down of systems for any reason (including on account of computer viruses), unauthorized
access, theft, any fraud committed by any per son whether in the employment of the
Member or otherwise or any problem, technological or otherwise that might prevent
the Client from contacting the phone broking services of the Member or entering
the Members system or from executing an order or in respect of other conditions.
(ii) The Client further agrees that he/she/it will not be compensated by the Member
for any “lost opportunity” viz. notional profits on buy/sell orders
which could not be executed due to any reason whatsoever, including but not limited
due to time lag in the execution of the order or the speed at which the system of
the Member or of the Exchanges is operating, any shutting down by the Member of
his/her/its system for any reason of the Member disabling the Client from trading
on its system for any reason whatsoever. (iii) The Client hereby indemnifies and
agrees to keep indemnified the Member and its employees, agents or representatives
from and against all sums of moneys, actions, proceedings, suits, claims, demands,
damages, costs, expenses and any other amounts whatsoever arising out of any default,
whether by actor omission, of the Client under the Agreement or anything lawfully
done by the Member in accordance with the Agreement or by reason of the Member complying
with any direction, request or requirement of the Stock Exchange or other regulatory
authority. (iv) The Client also agrees that the Member shall not be liable to the
Client for any losses, costs, expenses, or other damages sustained by the Client
in the event of any failure or delay by any exchange, market, clearing house, bank
or other depository institution where any of the Client’s funds or other assets
are maintained, or a failure or delay by any member, bank or agent of any of the
foregoing, or a failure or delay by any of the foregoing to enforce its rules, to
fulfill its obligations, or to make any payment, for any reason whatsoever. The
Client waives any claim, cause of action or right as against the Member its employees
or agents, which may arise or occur as result thereof. (v) The Client agrees that
he/she/it shall not pay any amount in cash to any Sales Representative of the Member’s
at any time for carrying out any transaction in the normal course of the business.
The Member shall not be responsible for any loss on account of cash payment by the
Client being contrary to instruction of Member.
6.6 Death or Insolvency or winding up (i) 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 her/it or if any litigation which may have material
bearing on his capacity has been filed against him/her/it. (ii) In the event of
death or insolvency or liquidation of the Client or of his/her/its otherwise becoming
incapable of receiving and/or paying for or delivering or transferring securities
which the Client has ordered to be bought or sold, the Member may close out the
transaction of the Client the Client or his her/its legal representative(s) shall
be liable for any losses, costs and can claim losses, if any, from the estate of
the deceased Client and/or the legal representatives who shall however be entitled
to any surplus which may result there from.
6.7 Severability If any provisions of these Terms are held invalid
or unenforceable by reason of any law, rule, administrative order or judicial decision
by any court, regulatory or self-regulatory agency or body, such invalidity or un
enforce ability shall attach only to such provision or terms held invalid. The validity
of the remaining provisions and terms shall not be affected thereby and these terms
shall be carried out as if any such invalid/unenforceable provisions or terms were
not contained herein. Words and expressions which are used this agreement, but which
are not defined herein shall, unless the context otherwise requires, have the same
meaning as assigned thereto in the Rules, Bylaws and Regulations of the exchange(s)
and circulars issued thereunder.
6.8 No Assignment The rights of the Client under these Terms are
not transferable under any circumstances and shall be used only by the Client.
6.9 Further Assurances In connection with this Agreement, as well
as all transactions contemplated by this Agreement as offered by the Member from
time to time each Party agrees to execute and deliver such additional documents
and to perform such additional actions as may be necessary, appropriate or reasonably
requested to carry out or evidence the transactions in respect of the Services availed
by the Client from time to time.
6.10 Dispute Resolution (a) The Member and the Client are aware
of the provisions of the bye- laws, rules and regulations of the Exchanges and circulars
issued thereunder as maybe in force from time to time relating to the resolution
of the disputes differences through the mechanism of arbitration provided by the
Exchanges and agree to abide by the said provisions in so far as any disputes under
these terms relate to transactions that are to be carried on the exchanges. (b)
The Member hereby agrees that it shall ensure faster settlement of any arbitration
proceedings arising out of the transaction entered into between him and the client
and that it shall be liable to implement the arbitration awards made in such proceedings.
(c) In so far as any other disputes or differences in connection with these Terms
or their performance (other than the disputes referred to in 6.10 (a) above) are
concerned such disputes shall, so far as it is possible, be settled amicably between
the Parties and in the case where after 30 days of consultation, the parties have
failed to reach an amicable settlement, such disputes shall be submitted to arbitration
and such arbitration shall be conducted in accordance with the Indian Arbitration
and Conciliation Act, 1996 (the “Arbitration Act”) by a panel consisting
of a sole arbitrator. (d) The Member and the client agree to abide by any award
passed by the Ombudsman under the SEBI (Ombudsman) Regulation, 2003
6.11 Termination (i) This agreement shall forthwith terminate:
if the Member for any reason ceases to be a member of the Stock Exchange including
cessation of membership by reason the Member’s default, death, resignation
or expulsion or if the certificate issued by the Board is cancelled. (ii) Either
party shall be entitled to terminate this Agreement without assigning any reason,
after giving notice in writing of not less than one month to the other party. (iii)
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 Agreement 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.
6.12 Jurisdiction All trades, transactions and contracts are subject
to the Rules and Regulations of the respective Exchange on which the trades have
been executed and shall be deemed to be and shall take effect as wholly made, entered
into and to be performed in the city of Mumbai and the parties to such trades shall
be deemed to have submitted to the jurisdiction of the Courts in Mumbai.
6.13 Authorised Representative The instructions issued by an authorized
representative of the Client shall be binding on the Client in accordance with the
letter authorizing the said representative to deal on behalf of the Client. The
Client is aware that authentication technologies and strict security measures are
required for the Internet trading through order routed system and undertakes to
ensure that the security code(s) of the Client and / or his/her/its authorised representative.
In the event of the authorized representative(s) being replaced, it shall be the
responsibility of the Client to inform the Member of the change in writing, failing
which the Client shall be responsible for the trade obligations arising out of the
actions of both the old representative as well as the new representative.
7. CLIENT’S COVENANTS
7.1 The Client hereby undertakes to: (i) Place the initial and
maintenance margin amounts as the Member may specify to the Client from time to
time, subject to requirements specified by SEBI. (ii) Authorize retention of the
shares with the Member upon the receipt of the same in the pay out from the Stock
exchange till the amount due in respect of the said transaction including the dues
to the Member is paid in full by the Client. (iii) To pay to the Member-Brokerage,
commission, fees, transaction costs, service tax, stamp duty and other taxes expenses
as are prevailing from time to time and as they apply to the Client’s account,
transactions and to the Services that the Member renders to the Client. (iv) Abide
by any revision in any of the terms of this agreement as may be agreed between the
parties
7.2 Client’s Warranties The Client warrants, represents and
assures the Member that he shall duly observe and perform the conditions and obligations
stated herein.
7.3 Member’s Representation The Member represents that on
entering into this agreement and deposit of initial margin by the Client the Member
undertakes to settle the obligation towards the Stock Exchange for and on behalf
of the Client. The Client hereby agrees and authorizes the Member to make such payments
on his behalf..
8. GENERAL
8.1 Mark to Market Margins in Derivatives For Derivatives contracts,
the Client agrees that the Member shall raise bills at suitable periodic intervals.
The Client also agrees to pay an up-front margin at the beginning of each week that
will be sufficient to cover the daily margins for the entire duration of the week.
If at any time during the week, the cumulative Mark to Market (MTM) margin falls
short Margin available in the Client’s account, the Client agrees to heed
the Member’s additional Margin calls. As the up-front weekly margin calls
are purely for operational convenience, the Client will ensure that the Margins
are adequate at all times and will immediately make good any short fall that the
Member may communicate.
8.2 Payment by Client through Cheque In case where the payment
by the Client towards the Margin is made through a cheque issued in favor of the
Member, the said cheque will be credited to the Client’s account only after
realization of funds in the Member’s bank account.
8.3 Credit inquiry The Client authorises the Member to conduct
at any time a credit inquiry or check on the Client for the purpose of ascertaining
the financial situation and investment objectives of the Client and the Client shall
provide such financial and other information to the Member as may be required by
the Member from time to time.
9. FOREIGN JURISDICTION This Agreement does not constitute an offer
to sell or a solicitation of an offer to buy any shares, securities or other instruments
to any person in any jurisdiction where it is unlawful to make such an offer or
solicitation. The services covered under this Agreement are not intended to be any
form of any investment advertisement investment advice or investment information
and has not been registered under any securities law of any foreign jurisdiction
and is only for the information of any person in any jurisdiction where it may be
lawful to offer such a service. Further, no information on WWW.KKSECURITIES.COM
is to be construed as a representation with respect to shares, securities or other
investment regarding the legality of an investment therein under the respective
applicable investment or similar laws or regulations of any person or entity accessing
WWW.KKSECURITIES.COM.
10. CONFIDENTIALITY The Member hereby undertakes to maintain the
details of the Client as mentioned in the Client registration form or any other
information pertaining to the Client, in confidence and that the Member shall not
disclose the same to any person/entity as required under the law/regulatory requirements.
AND provided however, that the Member shall be allowed to share the details of the
Client as mentioned in the Client registration form or any other information pertaining
to the Client with parties/entities other than required under law with the express
permission of the Client.
11. PROPRIETARY TRADING The Member discloses herewith that it undertakes
Proprietary trading in addition to Client based trading.
12. ELECTRONIC PAYMENT GATEWAY
12.1 In this clause : (i) “Electronic Payment Gateway for
Net banking Terms and Conditions” shall mean the terms and conditions as modified
from time to time applicable to Electronic Payment Gateway for Net banking offered
through the Member in the HDFC or other bank a/c and accepted by the Client; (ii)
“Confidential Information” refers to information obtained by the Client,
through the Member, for the effective availment of Services or Payment Instruction
Services” Electronic Payment Gateway for Net banking services. (iii) “Payment
Instruction” shall mean an instruction given by a Client to transfer funds
from the Account held by the Client to the account of the Member.
12.2 Internet Internet refers to the network of computers/mobile
phones/other electronic devices which share and exchange information. The Internet
is at once a worldwide broadcasting capability, mechanism for information dissemination,
and a medium for collaboration and interaction between individuals and their computers/mobile
phones/other electronic devices capable of accessing the Internet without regard
for geographic location.
12.3 Electronic Payment Gateway for Net banking Services Electronic
Payment Gateway for Netbanking Services is the Member’s Service which provides
access to account information, the Internet with the help of concerned bank. The
terms Electronic Payment Gateway for Net banking and Electronic Payment Gateway
for Net banking services/facility may be interchangeably used.
12.4 Client Client refers to any person who has an Member Account
and who has been authorised by the Member to avail of the said facility.
12.5 Account Account refers to the Client’s Savings and/or
Current Account to which access is to be obtained through Electronic Payment Gateway
for Net banking.
12.6 Personal Information Personal Information refers to the information
about the Client obtained in connection with Electronic Payment Gateway for Net
banking or otherwise.
12.7 Application for Electronic Payment Gateway for Net banking
The Member may offer Electronic Payment Gateway for Net banking to selected Clients
at its discretion in collaboration with the concerned bank. The Client agrees that
in order to be eligible for Electronic Payment Gateway for Net banking it/he/she
would need to be a current Internet user or have access to the Internet and knowledge
of how the Internet works and have Net Banking facility with its/his/her bank. The
Client accepts that the application for Electronic Payment Gateway for Net banking
does not automatically imply acceptance by the Member.
12.8 Software The Member or the concerned bank will advise from
time to time the Internet software such as Browsers, which are required for using
Electronic Payment Gateway for Net banking. There will be no obligation on the Member
to support all the versions of this Internet software. The Client agrees that the
Client shall be responsible for upgrading their software, hardware and the operating
system at their cost from time to time so as to be compatible with that of the Member.
The Member or the bank shall be at liberty to change, vary or upgrade its software,
hardware, operating systems, etc., from time to time and shall be under no obligation
to support the software, hardware, operating systems used by the Client and that
the same shall be their sole responsibility.
12.9 Electronic Payment Gateway for Net banking Service (a) The
Member shall endeavor to provide through Electronic Payment Gateway for Net banking,
such services as the Member may decide from time to time. The Member reserves the
right to decide the type of services which may be offered on each account and may
differ from Client to Client. These facilitiesshall be offered in a phased manner
at the discretion of the Member. The Member may also make additions/deletions to
the services offered through Electronic Payment Gateway for Net banking at its sole
discretion. The availability/non-availability of a particular service shall be advised
through e-mail or web page of the Member or written communication. (b) In case of
Joint accounts and accounts with two or more signatories, the Member will offer
such services as restricted by the terms and conditions governing the operation
of such accounts. (c) In case of Minor accounts, the natural guardian undertakes
to give all instructions relating to the operation of the account and further undertakes
not to reveal the Client ID and Password to the minor. (d) The Member shall take
reasonable care to ensure the security of and prevent unauthorized access to the
Electronic Payment Gateway for Net banking service using technology reasonably available
to the Member. (e) The Client agrees that it/he/her shall not use or permit to use
Electronic Payment Gateway for Net banking or any related service for any illegal
or improper purposes.
12.10 Electronic Payment Gateway for Net banking Access (a) The
Client understands that the Member would allot them a Client-ID and password for
their account, which will enable them to have excess to Electronic Payment Gateway
for Net banking to perform Net banking for bank account. The Client will be required
to change the password assigned by the Member on accessing Electronic Payment Gateway
for Net banking for the first time. As a safety measure the Client changes the password
as frequently thereafter as possible. In the absence of any specific re quest from
them for personally collecting the Password, the Password shall be sent to the Client
by courier at its/his/her risk and consequences to the address notified by them
for correspondence, and the Member shall be not liable or held responsible in any
manner whatsoever, if the Password falls in the hands of unauthorized person/s.
(b) In addition to Client-ID and Password the Member may, at its discretion, require
the Client to adopt such other means of authentication including but not limited
to digital certification and / or smart cards. The Client agrees that it/he/she
shall not attempt or permit others to attempt accessing the account information
stored in the computers of the Member through any means other than the Electronic
Payment Gateway for Net banking service. The Client is aware that the transaction
through Electronic Payment Gateway for Net banking can be effected by use of their
password for their Member account and passwords for Net Banking for the operation
of their bank account for Net Banking. The Client shall not request /demand any
evidence of proof for transactions undertaken through the Net and the audit trail
of the log-in would be conclusive proof to establish that the transactions are bonafide.
12.11 Password The Client understands and agrees that it/he/she must:
(a) Keep the password totally confidential and not reveal the password to any third
party (b) Choose a password that shall consist of a mix of alphabets, numbers and
special characters, which must not relate to any readily accessible personal data
such as it/his/her name, address, telephone number, driver license etc. or easily
guess able combination of letters and number (c) Commit the password to memory and
not record them in a written or electronic form, and (d) Not let any unauthorized
person have access to their computer or leave the computer unattended while accessing
Electronic Payment Gateway for Net banking. (e) In case the Client forgets the password
for their account in the Member, it/he/she can request for change of the password.
Such replacement shall not be construed/deemed as the commencement of a new contract.
12.12 Transaction Processing All the requests for instantaneous
transactions will be given effect to instantaneously. In case requests for effecting
any transactions are received on weekly offs/holiday/public holidays, with the member,
the Exchange & bank, they shall be effected on the immediately succeeding working
day on the terms and conditions prevailing on that day. The Client shall not hold
the Member or the bank responsible for not processing/effecting any transactions
in case the Member does not receive instruction to this effect even though they
have forwarded the same. The Client hereby agrees to abide by the following terms
and conditions in addition to the terms and conditions as applicable to
12.13 Electronic Payment Gateway for Net banking (a) The Client
shall be free to utilize the Payment Instruction Services through Electronic Payment
Gate way for Net banking for transfer of funds for such purpose, as they shall deem
fit. (b) The Client however agrees not to use or permit the use of the Payment Instruction
Services or any related services for any illegal or improper purposes. Whilst utilizing
the Payment Instruction Services for making any payments for any services obtained
whether on-line or otherwise, they shall ensure that. (c) The Client has the full
right and/or authority to access and avail of the services obtained and they shall
observe and comply with the applicable laws and regulations in each jurisdiction
in applicable territories. They shall not access to family/relatives/friends or
any other person’s account through this gate way facility for transfer of
funds and if done so then the Client shall be solely responsible for the said transfer
of funds. And further undertake if any such claim is made by the third party so
effected then they shall be solely responsible and not Member in any manner. (d)
The Client shall not involve the Member as a party to such transaction. (e) The
Client shall provide the Member with such information and/or assistance as is required
by the Member for the performance of the Services and/or any other obligations of
the Member under this Agreement. (f) The Client shall not at any time provide to
any person, with any details of the accounts held by me/us with the Member including,
the passwords, account number which may be assigned to me/us by the Member from
time to time.
12.14 Risks The Client hereby acknowledges that it/he/she is availing
the Payment Instruction Service at it/his/her risk. These risks would include but
not be limited to the following risks:
a) Misuse of Password: The Client acknowledges that if any third
person obtains access to their password of the Client, such third person would be
able to provide Payment Instructions to the Member. They shall ensure that the terms
and conditions applicable to the use of the password as contained in the Electronic
Payment Gateway for Net Banking Terms and Conditions are complied with at all times.
b) Internet Frauds: The Internet per se is susceptible to a number
of frauds, misuse, hacking and other actions, which could affect Payment Instructions
to the Member. Whilst the Member shall aim to provide security to prevent the same,
there cannot be any guarantee from such Internet frauds, hacking and other actions,
which could affect Payment Instructions to the Member. The Client shall separately
evolve/ evaluate all risks arising out of the same.
c) Mistakes and Errors: The filling in of applicable data for transfer
would require proper, accurate and complete details. For instance, the Client is
aware that they would be required to fill in the account number of the Member to
whom the funds are to be transferred. In the event of any inaccuracy in this regard,
the funds could be transferred to incorrect accounts and there is no guarantee of
recovery thereafter. The Client shall therefore take all care to ensure that there
are no mistakes and errors and that the information given by me/us to the Member
in this regard is error free, accurate, proper and complete at all points of time.
On the other hand in the event of my in this regard is error free, accurate, proper
and complete at all points of time. On the other hand in the event of my Account
receiving an incorrect credit by reason of a mistake committed by some other person,
the Member or the bank shall be entitled to reverse the incorrect credit at any
time whatsoever without the consent of the Client. I/we shall be liable and respon
sible to Member and accede to accept the Member’s instructions without questions
for any unfair or unjust gain obtained by me as a result of the same..
d) Transactions: The transactions, which the Client may require,
the transfer of the funds may not fructify The Member is merely providing it/him/her
services whereby the said funds would be transferred from there.
e) Technology Risks: The technology for enabling the transfer of
funds and the other services offered by could be affected by virus or other malicious,
destructive or corrupting code, program me or macro. It may also be possible that
the site of the Member or the bank may require maintenance and during such time
it may not be possible to process the request of theClients. This could result in
delays in the processing of instructions or failure in the processing of instructions
and other such failures and inability. The Client understands that the Member disclaims
all and any liability, whether direct or indirect, whether arising out of loss of
profit or otherwise arising out of any failure or inability by the Member to honor
any Client instruction for whatsoever reason. The Client understands and accepts
that the Member shall not be responsible for any of the aforesaid risks. Client
also accepts that the Member shall disclaim all liability} in respect of the said
f) Limits: The Client is aware that the Member may from time to
time impose maximum and minimum limits funds that may be transferred by virtue of
the payment transfer service given to it/him/her hereunder. The Client realizes
and accepts and agrees that the same is to reduce the risks on it/him/her. For instance,
the Member may impose transaction restrictions within particular periods or amount
restrictions within a particular period or even each transaction limits. The Client
shall be bound by such limits imposed and shall strictly comply with them.
g) Indemnity: The Client shall indemnify the Member from and against
all losses and damages that may be caused as a consequence of breach of any of the
Electronic Payment Gateway for Net banking Term and Conditions and the terms and
conditions mentioned herein above.
h) Withdrawal of Facility: The Member shall be entitled to withdraw
this service at any time whatsoever (i) Charges: The Client hereby agrees to bear
the charges as may be stipulated by the Member from time to time for availing of
these services. (ii) Binding nature of above terms and conditions: The Client agrees
that by use of this facility, the Client shall deemed to have agreed to all the
above terms and conditions and such terms and conditions shall be bound on it/him/her
in the same manner as if it/he/she has agreed to the same in writing.
13. AUTHORITY TO THE MEMBER (i) Electronic Payment Gateway for
Net banking transactions in the Client’s Account(s) are permitted only after
authentication of the Client-ID and Password. The Client agrees that they grant
express authority to the Member or the bank for carrying out transactions performed
by them through Electronic Payment Gateway for Net banking. The Member shall have
no obligation to verify the authenticity of any transaction received from the Client
through Electronic Payment Gateway for Net banking or purporting to have been sent
by them via Electronic Payment Gateway for Net banking other than by means of verification
of their Client-ID and the password. (ii) The display or printed output that is
produced by the Client at the time of operation of Electronic Payment Gateway for
Net banking is a record of the operation of the internet access and shall not be
construed as the Member’s record of the relative transactions. The Member’s
or bank own record of transactions maintained through computer systems or otherwise
shall be accepted as conclusive and binding for all purposes unless any discrepancy
is pointed out within one week from the date of access or from the date of sending
the periodical statement, whichever is earlier. (iii) All transactions arising from
the use of Electronic Payment Gateway for Net banking, to operate a joint account,
shall be binding on all the joint account holders, jointly and severally.
14. ACCURACY OF INFORMATION The Client agrees that it/he/she are
responsible for the correctness of information supplied to the Member through the
use of Electronic Payment Gateway for Net banking or through any other means such
as electronic mail or written communication. The Member accepts no liability for
the consequences arising out of erroneous information supplied by them. The Client
agrees that if it/he/she notices any error in the account information supplied to
it/him her through Electronic Payment Gateway for Net banking or by the use of any
of the Electronic Payment Gateway for Net banking services, the Client shall advise
the Member & bank as soon as possible. The Member will endeavor to correct the
error promptly.
15. LIABILITY The Client complies with the Terms and advise the
Member and the bank in writing under acknowledgment immediately after it/he/she
suspect that their Client-ID or password is known to a other person and/or notice
an unauthorized transaction in their Electronic Payment Gateway for Net banking
account. The Client agrees that it he/she shall be liable for some or all loss from
unauthorized transactions in the Electronic Payment Gateway for Net banking accounts
if it/he/she has breached the Terms or contributed or caused the loss by negligent
actions such as the following: (a) Keeping a written or electronic record of Electronic
Payment Gateway for Net banking password (b) Disclosing or failing to take all reasonable
steps to prevent disclosure of the Electronic Payment Gate way for Net banking password
to anyone including Member staff and/or failing to advise the Member of such disclosure
within reasonable time. (c) Not advising the Member and the bank in a reasonable
time about unauthorized access to or erroneous transactions in the Electronic Payment
Gateway for Net banking accounts. The Member shall in no circumstances be held liable
to the Client if Electronic Payment Gateway for Net banking access is not available
in the desired manner for reasons including but not limited to natural calamity,
floods, fire and other natural disasters, legal restraints, faults in the telecommunication
network or Internet or network failure, software or hardware error or any other
reason beyond the control of the Member. The Member shall under no circumstances
shall be liable for any damages whatsoever whether such damages are direct, indirect,
incidental, consequential and irrespective of whether any claim is based on loss
of revenue, investment, production, goodwill, profit, interruption of business or
any other loss of any character or nature whatsoever and whether sustained by the
Client.
16. DISCLOSURE OF PERSONAL INFORMATION The Client agrees that the
Member or its contractors may hold and process the Client’s Personal Infor
mation on computer or otherwise in connection with Electronic Payment Gateway for
Net banking services as well as for statistical analysis and credit scoring. The
Client also agrees that the Member 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 (a) For participation in any telecommunication
or electronic clearing network in compliance with a legal directive. (b) For credit
rating by recognized credit scoring agencies. (c) For fraud prevention purposes.
17. MEMBER’S LIEN The Member shall have the right of set-off
and lien, irrespective of any other lien or charge, present as well as future on
the deposits held in the Client accounts and stocks whether in single name or joint
name(s), group account to the extent of all outstanding dues, whatsoever, arising
as a result of the Electronic Payment Gateway for Netbanking service extended to
and/or used by them.
18. NON-TRANSFERABILITY The grant of facility of Electronic Payment
Gateway for Net banking to them is not transferable under any circumstance and shall
be used only by the Client .
19. TERMINATION OF ELECTRONIC PAYMENT GATEWAY FOR NET BANKING SERVICE
(a)The Client may request for termination of the Electronic Payment Gateway for
Net banking facility any time by giving a written notice of at least 15 days to
the Member. The Client agrees that he/she/it will remain responsible for any transactions
made on their Electronic Payment Gateway for Net banking account(s) through Electronic
Payment Gateway for Net banking prior to the time of such cancellation of the Electronic
Payment Gateway for Net banking Service.
(b) The closure of all the Accounts of the Client will automatically terminate the
Electronic Payment Gate way for Net banking service.
(c) The Member may suspend or terminate Electronic Payment Gateway for Net banking
facilities without prior notice.
GENERAL
(a) The Client shall from time to time upon the request of the Member promptly and
duly execute and deliver any and all such
furtherinstrumentsanddocuments that may be required by the Exchanges and/or regulatory
authorities or as the Member may deem desirable for the purpose of obtaining the
full benefit of this Agreement and of the rights and powers granted under it.
(b) The Client agrees to immediately notify the Member in writing if there is any
change in the information in the Client registration form provided by the Client
to the Member at the time of opening of the account or at any time thereafter.
(c) In addition to the specific rights set out in this Agreement, the Member and
the Client shall be entitled to exercise any other rights which the Member or the
Client may have under the Rules, Bylaws and Regulations of the ex change and circulars
issued there under or Rules and Regulations of SEBI.
(d) Words and expressions which are used in this Agreement, but which are not defined
herein shall, unless the context requires have the same meaning as assigned thereto
in the Rules, Bylaws and Regulations of the ex change and circulars issued thereunder.
(e) The provision of this agreement shall always be subject to Government notification,
any rules, regulations, guidelines and circulars issued by SEBI and Rules, Regulation
and Bye laws of the relevant stock exchange that may be in force from time to time.
IN WITNESS THEREOF, the parties to the agreement have caused these presents
to be executed of the day and year first above written. Signed and delivered by
Signed and Delivered by the
Constituent’s Signature ………………………………
Name………………………………………………...…...
For and on behalf of INDIABULLS SECURITIES LTD.
Name………………………………………………...
Signature……………………………………………
Designation …………………………………………
WITNESS WITNESS
Name ………………………………………………. Name …………………………………………….
Signature ………………………………………….. Signature ……………………………………….
Address ……………………………………………. Address ………………………………………...
COMBINED RISK DISCLOSURE DOCUMENT FOR CAPITAL MARKET/CASH SEGMENT AND
FUTURES & OPTIONS SEGMENT (TO BE GIVEN BY THE BROKER TO THE CLIENT)
This document is issued by the member of the National Stock Exchange of India Limited
(hereinafter referred to as “NSE”) which has been formulated by the
Exchanges in coordination with the Securities and Exchange Board of India (hereinafter
referred to as “SEBI”) and contains important information on trading
in Equities and F&O Segments of NSE. All prospective constituents should read
this document before trading on Capital Market/Cash Segment or F&O segment of
the Exchanges. NSE/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 has NSE/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 contractual relationship into which you are entering and the extent of your
exposure to risk. You must know and appreciate that investment in Equity shares,
derivative or other instruments traded on the Stock 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 NSE and suffer adverse consequences or
loss, you shall be solely responsible for the same and NSE, its Clearing Corporation
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 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 member. 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 security or derivative being\
traded on NSE. It must be clearly understood by you that your dealings on NSE through
a member shall be subject to your fulfilling certain formalities set out by the
member, which may entirely include your filling the know your client form, client
registration form, execution of an agreement, etc., and are subject to the Rules,
Bylaws and Regulations of NSE and its Clearing Corporation, guidelines prescribed
by SEBI and in force from time to time and Circulars as may be issued by NSE or
its Clearing Corporation/ Clearing House and in force from time to time. NSE 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 trading member and/or sub-broker
of NSE 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/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 or authorize someone
to trade for you, you should be aware of or must get acquainted with the following:
-
1.BASIC RISKS INVOLVED IN TRADING ON THE STOCK EXCHANGE (EQUITY AND OTHER INSTRUMENTS)
1.1 Risk of Higher Volatility: Volatility refers to the dynamic
changes in price that securities undergo when trading activity continues on the
Stock Exchange. Generally, higher the volatility of a security/contract, greater
is its price swings. There may be normally greater volatility in thinly traded securities/contracts
than in active securities 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 innotional or real losses.
1.2 Risk of Lower Liquidity: Liquidity refers to the ability of
market participants to buy and/or sell securities /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/contracts swiftly and with minimal price difference, and as a result,
investors are more likely to pay or receive a competitive price for securities/contracts
purchased or sold. There may be a risk of lower liquidity in some securities/contracts
as compared to active securities/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.
1.2.1 Buying/selling without intention of giving and/or taking
delivery of a security, as part of a day trading strategy, may also result into
losses, because in such a situation, stocks may have to be sold/purchased at a low/high
prices, compared to the expected price levels, so as not to have any obligation
to deliver receive a Security.
1.3 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 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/contracts. This in turn will hamper better price formation.
1.4 Risk-reducing orders; Most Exchanges have a facility for investors
to place “limit orders”, “stop loss orders” etc”.
The 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.
1.4.1 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 avail able 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.
1.4.2 A “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. A stop loss order is generally placed “away”
from the current price of a stock / contract, and such order gets activated if and
when the stock ^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 stock 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 assur ance therefore that the
limit order will be executable since a stock / 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.
1.5 Risk of News Announcements: Issuers make news announcements
that may impact the price of the securities /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
security / contract.
1.6 Risk of Rumors: Rumors about companies at times float in the
market through word of mouth, newspapers, website or news agencies, etc. The investors
should be wary of and should desist from acting on rumors.
1.7 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.
1.7.1 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.
1.7.2 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 due to any action on account of unusual trading activity
or stock hitting circuit filters or for any other reason.
1.8 System/Network Congestion: Trading on NSE 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 the control of and may
result in delay in processing or not pro cessing 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 order, these
represent a risk because of your obligations to settle all executed transactions.
2. As far as Futures and Options segment Is concerned, please note
and get yourself acquainted with the following additional features:-
2.1 Effect of “Leverage” or “Gearing” The
amount of margin is small relative to the value of the derivatives contract so the
transactions are ‘leveraged’ or ’geared’. A derivative 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 derivatives carry a high degree of risk. You should therefore completely
understand the following statements before actually trading in derivatives trading
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 equivalent to the principal investment amount in a relatively short
period of time. Moreover, the loss may exceed the original margin amount. a. 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. If the index 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 next day. b If you fail to deposit the
additional margin by the deadline or if an outstanding debt occurs in your account,
the broker/member 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 closeouts.
c. Under certain market conditions, an investor may find it difficult or impossible
to execute transactions. For ex ample, this situation can occur due to factors such
as liquidity i.e. when there are insufficient bids or offers or suspension of trading
due to price limit or circuit breakers etc. d. 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
the derivatives contracts you plan to trade i.e. the contract specifications and
the associated obligations.
2.2 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.
2. The Exchange may impose restrictions and have absolute authority
to restrict the exercise of options at certain times in specified circumstances.
2.3 Risks of Option Writers
1.If the price movement of the underlying is not in the anticipated
direction, the option writer runs the risks of losing substantial amount.
2.The risk of being an option writer may be reduced by the purchase
of other options on the same under lying 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.
3. 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.
3. GENERAL
3.1 Commission and overcharges Before you begin to trade, you should
obtain a clear explanation of all commission, fees and other charges for which you
will be liable. These charges will affect your net profit (if any) or increase your
loss.
3.2 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 insolvency or bankruptcy. 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, the same shall be
subject to arbitration as per the bylaws regulations of the Exchange.
3.3 For rights and obligations of the clients, please refer to
Annexure-1 enclosed with this document.
3.4 The term ‘constituent’ shall mean and include a
client, a customer or an investor, who deals with a member for the purpose of acquiring
and/or selling of securities through the mechanism provided by NSE.
3.5 The term ‘member’ shall mean and include a trading
member, a broker or a stock broker, who has been admitted as such by NSE and who
holds a registration certificate as a stock broker from SEBI.
I hereby acknowledge that I have received and understood this risk disclosure statement
and Annexure 1 containing my rights and obligations.
Name
Signature
Client - Name & Signature
Customer Signature X ...................................................
(If Partner, Corporate, or other Signatory, then attest with company seal.) ...................
................... ...................
DD MM YYYY.Name Signature Client - Name & Signature Indiabulls Official - Name
& Signature Name Address Signature Place Witness - Name - Address & Signature
Name Address Signature Witness - Name - Address & Signature Name Address Signature
Place
ANNEXURE-1 INVESTORS’ RIGHTS AND OBLIGATIONS:
1.1 You should familiarize yourself with the protection accorded
to the money or other property you may deposit with your member, particularly in
the event of a default in the stock market or the broking firm’s insolvency
or bankruptcy.
1.1.1Please ensure that you have a documentary proof of your having
made deposit pf such money or property with the member, stating towards which account
such money or property deposited.
1.1.2Further, it may be noted that the extent to which you may
recover such money of property may be governed by the Bye-laws and Regulations of
NSE and the scheme of the Investors’ Protection Fund in force from time to
time.
1.1.3Any dispute with the member with respect to deposits, margin
money, etc., and producing an appro-priate proof thereof, shall be subject to arbitration
as per the Rules, Bylaws of NSE or its Clearing Corporation / Clearing House.
1.2 Before you begin to trade, you should obtain a clear idea from
your member of all brokerage, commis-sions, fees and other charges which will be
levied on you for trading. These charges will affect your net cash inflow or outflow.
1.3 You should exercise due diligence and comply with the following
requirements of the NSE and/or SEBI:
1.3.1Please deal only with and through SEBI registered members
of the Stock Exchange and are enabled to trade on the Exchange. All SEBI registered
members are given a registration no., which may be verified from SEBI. The details
of all members of NSE and whether they are enabled to trade may be verified from
NSE website (http://www.nseindia.com/)
1.3.2Demand any such information, details and documents from the
member, for the purpose of verifica-tion, as you may find it necessary to satisfy
yourself about his credentials.
1.3.3Furnish all such details in full as are required by the member
as required in “Know Your Client” form, which may also include details
of PAN or Passport or Driving License or Voters ID, or Ration Card, Bank account
and Depository account, or any such details made mandatory by SEBI/NSE at any time,
as is available with the investor.
1.3.4Execute a broker-client agreement in the form prescribed by
SEBI and/or the Relevant Authority of NSE or its Clearing Corporation / Clearing
House from time to time, because this may be useful as a proof of your dealing arrangements
with the member.
1.3.5Give any order for buy or sell of a security in writing or
in such form or manner, as may be mutually agreed. Giving instructions in writing
ensures that you have proof of your intent, in case of disputes with the member.
1.3.6Ensure that a contract note is issued to you by the member,
which contains minute records of every transaction. Verify that the contract note
contains details of order no., trade number, trade time, trade price, trade quantity,
name of security, client code allotted to you and showing the brokerage sepa-rately.
Contract notes are required to be given/sent by the member to the investors latest
on the next working day of the trade. Contract note can be issued by the member
either in electronic form using digital signature as required, or in hard copy.
In case you do not receive a contract note on the next working day or at a mutually
agreed time, please get in touch with the Investors Grievance Cell of NSE, without
delaying.
1.3.7Facility of Trade Verification is available on NSE website
(http://www.nseindia.com/), where details of trade as mentioned in the contract
note may be verified from the trade date upto five trading days. 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 NSE.
1.3.8Ensure that payment/delivery of securities against settlement
is given to the concerned member within one working day prior to the date of pay-in
announced by NSE or ifs Clearing Corporation / Clearing House. Payments should be
made only by account payee cheque in favor of the firm/com-pany of the trading member
and a receipt or acknowledgment towards what such payment is made be obtained from
the member. Delivery of securities is made to the pool account of the member rather
than to the beneficiary account of the member.
1.3.9In case pay-out of money and/or securities is not received
on the next working day after date of pay-out announced by NSE or its Clearing Corporation/Clearing
House, please follow-up with the con-cerned member for its release. In case pay-out
is not released as above from the member within five working days, ensure that you
lodge a complaint immediately with the Investors’ Grievance Cell of NSE.
1.3.10 Every member is required to send a complete ‘Statement
of Accounts’, for both funds and securities settlement to each of its constituents,
at such periodicity as may be prescribed by time to time. You should report errors,
if any, in the Statement immediately, but not later than 30 calendar days of receipt
thereof, to the member. In case the error is not rectified or there is a dispute,
ensure that you refer such matter to the Investors Grievance Cell of NSE, without
delaying.
1.3.11 In case of a complaint against a member/registered sub-broker,
you should address the complaint to the Office as may be specified by NSE from time
to time.
1.4 In case where a member surrenders his membership, NSE gives
a public notice inviting claims, If any, from investors. In case of a claim, relating
to “transactions executed on the trading system” of NSE, ensure that
you lodge a claim with NSE Clearing House within the stipulated period and with
the supporting documents.
1.5 In case, where a member is expelled from trading membership
or declared a defaulter, NSE gives a public notice inviting claims, if any, from
investors. In case of a claim, relating to “transactions ex-ecuted on the
trading system” of NSE, ensure that you lodge a claim with NSE within the
stipulated period and with the supporting documents.
1.6 Claims against a defaulter/expelled member found to be valid
as prescribed in the relevant Rules/Bye laws and the scheme under the Investors’
Protection Fund (IPF) may be payable first out of the amount vested in the Committee
for Settlement of Claims against Defaulters, on pro-rata basis if the amount is
inadequate. The balance amount of claims, if any, to a maximum amount of Rs.10 lakhs
per investor claim, per defaulter/expelled member may be payable subject to such
claims being found payable under the scheme of the IPF.
Notes:
1.The term ‘constituent’ shall mean and include a client, a customer
or an Investor, who deals with a trading member of NSE for the purpose of acquiring
and / for selling of securities through the mecha-nism provided by NSE.
2. The term ‘member’ shall mean and include a member or a broker or
a stock broker, who has been admitted as such by NSE and who holds a registration
certificate as a stock broker from SEBI.
3. NSE may be substituted with names of the relevant exchanges, wherever applicable.
MEMBER-CLIENT AGREEMENT (“BSE”) THIS AGREEMENT (hereinafter referred
to as “this Agreement”) is entered on this the ___ day of _____________200__
between KK Securities Ltd., a company incorporated under the Companies Act, 1956
having its registered office at F- 60, Malhotra Building, IInd Floor, Connaught
Place, New Delhi - 110 001 (hereinafter referred to as “the Member”,
which expression shall unless repugnant to the meaning or context thereof, be deemed
to mean and include its successors and assigns) of the One Part. AND Mr./Ms/M/s.________________________,
son/wife/daughter of Mr.__________________ and residing at__________________________________/a
Company incorporated under the Companies Act 1956/ a partnership firm registered
under the Indian Partnership Act, 1932 and having its Registered Office/Office at
_______________________________________________ hereinafter referred to as “the
Client”, which expression shall, unless repugnant to the meaning or context
thereof, be mean and include (if the Clients is an individual) his/her heirs executors,
administrators, legal representatives and permitted assigns, (if the Clients is
a partnership firm), the partners for the time being of the said firm, the survivors,
of survivor of them and their respective heirs executors, administrators, legal
representatives (if the Client is a company or other body corporate) its successors
of the other part. WHEREAS: -( i) The Member is a member of Bombay Stock Exchange
Limited, (hereinafter Referred to as “ the Exchange”) and registered
as a stockbroker with Securities and Exchange Board of India (hereinafter referred
to as“SEBI”) under certificate of registration no. INB 010875632. (ii)
The Member is also registered as a Depository Participant of National Securities
Depositories Limited and Central Depositories Services (India) Limited. (iii) The
Client is desirous of investing/trading in those securities/contracts/other instruments
admitted to dealings on the Exchange as defined in the Rules, Bye-Laws and Regulations
of the Exchange (including the Bye-Laws, Rules and Regulations of the various segments
of the Exchange ) and circulars issued from time to time and other Securities and
also availing of various other services which may from time to time be offered to
the Client by the Member. (iv) The Member has offered to provide to the Client services
as hereinafter specified to the Client and the Client Desires to avail of the Member’s
services for, inter alia purchasing, selling or otherwise dealing in Securities.
(v) The Client has satisfied itself of the capability of the Member to deal in securities
and/or deal in derivatives contracts and wishes to execute his/her/its orders through
the Member, and the client shall from to time continue to satisfy himself/herself/itself
of such capability of the Member in providing the services before executing orders
through it. (vi) The Member has taken steps and shall takes steps to make the Client
aware of the precise nature of the Member’s Liability for business to be conducted,
including any limitation on that liability and the capacity in which it acts. (vii)
The Member and the Client agree to be bound by all the Rules Bye-laws and Regulations
of the Exchange and circulars issued thereunder and the Rules and Regulations of
SEBI and relevant Notifications of Government authorities as may be in force from
time to time. (viii) The Member has developed a Website under the name “HTTP://WWW.INDIABULLS.
COM” (hereinafter called “the website”). The website is owned,
operated and maintained by the Member. The Client has agreed to avail the services
rendered by the Member through the use of Website; NOW THEREFORE IN CONSIDERATION
OF THE MUTUAL UNDERSTANDING AS SET FORTH IN THIS AGREEMENT, AND SUBJECT TO THE TERMS
AND CONDITIONS SET OUT HEREIN AND ALSO IN THE MEMBER’S WEBSITE AND RELYING
ON THE REPRESENTATIONS AND WAR-RANTIES MENTIONED HEREIN, THE PARTIES HERETO HAVE
AGREED TO THE FOLLOWING TERMS AND CONDITIONS. 1. THE PARTIES HERE TO AGREE AS UNDER:
GENERAL TERMS AND CONDITIONS GOVERNING THE SERVICE 1.1. The Member hereby agrees
to provide to the Client services in respect of buying, selling and other-wise dealing
in securities which are admitted for dealings on the Exchange and the Client hereby
agrees to avail such services provided by the Member. 1.2. Transaction Order System
The Client shall transmit his/her/its orders to the Member through the internet
over the Member’s web site; or through telephone (as per the predefined procedure
of forwarding the order through a phone broking executive or in such other manner
as the Member may permit) or through any letter or other form of written or oral
communication. 1.3 The Client hereby authorises the Member to rely and act on, and
treat as fully authorised by and binding upon the Client, any order, instruction
or communication (by whatever means transmitted and whether or not in writing) which
purports to have been given and which the Member reasonably believes in good faith
to have been given by the Client or a person duly authorised to act on behalf of
the Client. The Client agrees that he/she/it shall be responsible to the Member
for all commitments and obligations made or entered into in the Client’s name
whether in writing or orally and howsoever communicated or purported to be given
as aforesaid. 1.4 The Client shall from time to time notify the Member in writing
of the names of the persons who are authorised to give instructions in relation
to this Agreement to the Member on behalf of the Client. Until the Member is notified
in writing to the contrary, the Member shall be entitled to assume that any of those
persons has full and unrestricted power to give such instructions on behalf of the
Client (by whatever means transmitted and whether or not in writing) which purports
to have emanated and which the Member believes to have emanated from the Client
or from any such authorised person and, if the Member acts in good faith on such
instructions, such instructions shall be binding on the Client without restriction
and the Member shall not be liable for doing so, whether or not the instructions
were given by the Client or such authorised persons or otherwise and the Member
shall not be under any duty to verify the authenticity of such instructions or the
identity of the person(s) giving them. 1.5 Dematerialized Securities : All orders
made by the Client shall only be in securities compulsorily traded in the dematerialized
form. All deliveries of securities made by or to the Client shall only be in the
dematerialized form. The Member shall notify the securities for which this facility
is made available from time to time on the web site. The Member shall have the right
to add or delete securities for which the facility is made available in its absolute
discretion and details of the same would be posted on the web site and no separate
intimation there of will be sent to the Client either physically or electronically.
1.6 Declarations by the Client The Client hereby confirms and warrants that: (i)
The Member has brought the contents of the risk disclosure document to the notice
of the Client and made the Client aware of the significance of the said document.
The Client confirms that he/she/it has read, understood, appreciated and signed
the Risk Disclosure Document and understands the risks involved in the purchasing,
selling and trading in securities (including entering into various Derivatives contracts)
on the Exchange, whether such risks are contained in the Risk Disclosure Document
or not. (ii) The failure of the Client to understand the risk involved shall not
render a contract as void or voidable and the Client shall be and shall continue
to be responsible for all the risks and consequences for entering into trades in
the segments in which the Client chose to trade. (iii) The Client is fully responsible
for all his/her/its investment decisions and trades. (iv) The Client undertakes
to be bound by the Risk Disclosure Document and all amendments thereto from time
to time and the Client undertakes to continuously remain aware of such amendments,
through the website or otherwise. (v) Acting as a Sub Broker ; The Client agrees
that he/she/it will not act as Sub-Broker without prior written permission of the
Member and without obtaining certificate of registration from Securities and Exchange
Board of India (SEBI) 1.7 Material Information on the web site The Client agrees
that all investment and disinvestments decisions are based on the Client’s
own evaluation of financial circumstances and investment objectives. This extends
to any decisions made by the Client on the basis of any information that may be
made available on the web site of the Member. The Client will not hold nor seek
to hold the Member or any of its officers, directors, employees, agents, subsidiaries,
affiliates or business associates liable for any trading losses, cost of damage
incurred by the Client consequent upon relying on investment information, research
opinions or advice or any other material/information whatsoever on the website whether
inserted by the Member or any other agency. The Member does not represent and shall
not be deemed to have represented that the investment information on the web site
is accurate or complete. The Client is aware that any information on the website
based on the research of the Member or other external sources is subject to normal
variations in the stock market and is merely an estimation of the viability or otherwise
of certain investments, and the Member shall not be deemed to have assumed any responsibility
for such information. The Client should seek independent professional advice regarding
the suitability of any investment decisions. The Client also acknowledges that the
Member’s employees are not authorised to give any such advice and that the
Client will not solicit or rely upon any such advice from the Member or any of its
employees. 1.8 Restrictions on Access to Web Site and Trading The Client understands
that the Member may at any time, at its sole discretion and without prior notice
to the Client, prohibit or restrict the Client’s access to the use of the
web site or related Services and the Client’s ability to trade. The Client
will bear any loss that he/she/it may be faced with due to inability to execute
further trades on account of such restriction 1.9 Phone Broking Services (a) The
Client is aware that the Member offers Phones broking services for placing the securities
dealing orders through phone broking executives over predesignated telephone numbers.
The Client can place securities dealing orders through telephone by confirming his
User ID allotted by the Member at the time of account opening and his personal details
as informed by the Client to the Member. The Client shall ensure proper safe guard
of the User ID allotted to him and keep his personal details confidential. The Client
shall immediately notify the Member in writing, delivered via e-mail and Registered
AD, if the Client becomes aware of any loss, theft or unauthorized use to the Client’s
account/User ID; or any failure by the Client to receive an accurate written confirmation
of any execution including the contract note for the same; or any receipt by the
Client of confirmation of an order and /or execution which the Client did not place;
or any inaccurate information in the Clients account balances, securities position,
or transaction history. In the case where the Client notifies such loss, theft or
unauthorized use of the Client’s User ID to the Member, the Member shall suspend
the use of the account of the Client. However the Client shall be responsible and
liable for all transaction that are carried out by the use of the Client’s
Use ID and personal details. When any of the above circumstances occur, neither
the Member nor any of its officers, directors, employees, agents, affiliates or
subsidiaries will have any responsibility or liability to the Client or to any other
person whose claim may arise through the Client with respect to any of the circumstances
described above. (b) In case of phone broking, the Client shall ensure the availability
of funds/securities in his/her/its account intimated to the Member, required for
meeting his/her/its pay in obligation, at the time of placing the order through
phone broking executive. The Member shall not be responsible for any claims, losses,
damages arising out of non availability/shortage of funds/securities in the Clients
account for meeting the pay in obligation. (c) The Client understands that placing
an order with the Member, including a market order does not guarantee execution
of the order. The Member has the absolute right to reject any order that may be
made by the Client for any reason whatsoever including for the breach of the requirement
of maintaining the prescribed Margin in the Client account or the bank account .
(d) The Client is required to ascertain the status of his/her/its order (including
any rejection of the same) which would be posted only on the relevant sections of
the web site. Further the exchange may cancel the trades without giving any reason
therefore. The Member shall be entitled to cancel relative contracts with the Client.
The Member shall not be liable for any losses, damages or claims on account of such
rejection or cancellation of any trade for any reason whatsoever. Further the Member
may at its sole discretion, subject any order placed by the Client to manual review
and entry which may cause delays in the execution of the Client’s orders.
In case of phone broking the Client is required to obtain the confirmation/status
of the order executed for the day by calling the phone broking executive with whom
he/she/it has placed the order. (e) The Member agrees to inform the client and keep
him/her/it apprized 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 Exchange. 2. CONDITIONS
GOVERNING TRADING TERMS AND CONDITIONS GOVERNING TRANSACTIONS IN SECURITIES (i)
The Member of the concerned or their respective registrars shall entertain online
transaction request and/or request made through telephone in the manner provided
under this agreement. (ii) For change of address or any personal details of the
Client, the Client shall send a letter or fax to the Member signed by all the co-holders.
(iii) The Client is requested to check up the personal and bank related details
provided by him/her. Neither the Member nor any of the employee shall accept any
liability which may arise as a consequence of erroneous information provided by
the Client. (iv) The Client can view the transaction on the web site. (v) The Member
does not accept any liability for delay in processing time at the Registrar’s
end. (vi) It is explicitly stated herein that the Offer Documents/other schemes
offered by the Member have not been recommended by the Member. (vii) Neither the
Member nor any of its employee/representative shall be liable for any failure to
perform its obligations, to the extent that such performance has been delayed, hindered
or prevented by systems failure, network, errors, delay or loss of data due to the
above and in circumstances of acts of God, floods, epidemics, quarantine, riot or
civil commotion and war. (viii) The Member shall provide its services on a best
effort basis. However the Member shall not be liable for failure of the system or
for any loss, damage or other costs arising in any way out of: (a) System failure
including failure of ancillary or associated systems, or fluctuation of power, or
other environmental conditions; or (b) Accident transportation, neglect, misuses,
errors, frauds of the Client or agents or any third party; or (c) Any incident,
special or consequential damages including without limitation of loss of Profit.
The Client further agrees to indemnify the Member for any loss that may arise as
a result of systems, failure accident or any of the reasons mentioned above. TERMS
AND CONDITIONS GOVERNING TRANSACTIONS IN DERIVATIVES The Client shall be bound by
the constitution, byelaws, rules, regulations, and the customs of the Exchange.
The failure of a Client to understand the risk involved or the failure of a Member
to explain the risk to the Client shall not render a contract as void or voidable
and the Client shall be and shall continue to be responsible for all the risks and
consequences for entering into trades in Derivatives. The Client shall not, acting
alone or in concert with others directly or indirectly, hold and control in excess
number of permitted futures contracts as fixed from time to time by the Stock Exchanges.
The Client shall not exercise a long or short position where, acting alone or in
concert with others, directly or indirectly the Client will have exercised in excess
of the number of permitted futures contracts as may be fixed from time to time by
the Exchange. The Clients hereby authorises the Member at its discretion and if
the Member deems fit for its protection to buy, sell, or close out any part or all
of the derivative contracts held in the Client’s accounts with the Member.
Any or all such incidental expenses incurred by the Member will be reimbursed by
the Client. 2.1 Margin (i) The Client shall make the prescribed initial margin in
the form of cash and/or in the form of Securities (“the Margin”) with
the Member simultaneously with the opening of the account. Margin shall be decided
at the sole discretion of the Member. The Margin will not be interest bearing. The
Member shall have, at its sole discretion, the irrevocable right to set off a part
or whole of the Margin i.e. by the way of appropriating of the relevant amount of
cash or by sale or transfer of all or some of the Securities which form part of
the Margin, against any dues of the Client in the event of the failure of the Client
to meet any of their respective obligations under these Terms. (ii) The Client is
liable to pay an initial margin up-front on or before creating a position in any
Derivatives contract. Such margin shall be decided upon by the Member or the Exchanges
from time to time. The Client may also be liable to pay withholding margin, special
margins or such other margins as are considered necessary by the Member or the Exchange
from time to time. The Member is permitted in its sole and absolute discretion to
collect additional margin (even though not imposed by the Exchange) and the Client
shall be obliged to pay the same. (iii) The Client agrees and authorises the Member
to determine the market value of securities placed as margin after applying a haircut
that the Member may deem appropriate. The client undertakes to monitor the market
value of such securities on a continuous basis. The client further undertakes to
replenish any shortfall in the value of the margin consequent to a fall in the market
value of such securities placed as margin immediately whether or not the member
intimates such shortfall. (iv) The Member may at its sole discretion prescribe the
payment of Margin in the form of cash instead of or in addition to margin in form
of securities. The Client accepts to comply with the Member’s requirement
of payment of Margin in the form of cash immediately. Without prejudice to the stock
broker’s other rights (including the right to refer a matter to arbitration),
the stock broker shall be entitled to liquidate / close out all or any of the client’s
positions for non- payment of margins or other amount, 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. (v)
The Client agrees to abide by the exposure limits. If any, set by the stockbroker
or by the Exchange or Clearing Corporate or SEBI from time to time. (vi) The Client
agrees that any securities/cash placed by him/her/it as margin may in turn be placed
as margin by the Member with the Exchanges or banks or such other institution as
the Member may deem fit. The Client authorises the Member to do all such acts, deeds
and things as may be necessary and expedient for placing such securities/cash with
the Exchanges/Banks/Institutions as margin (vii) Any reference in these terms to
sale or transfer of Securities by the Member shall be deemed to include sale of
the Securities, which form part of the Margin, maintained by the Client with the
Mem-ber. In exercise of the Member’s right to sell securities under the Agreement,
the Client agrees that the choice of specific securities to be sold shall be solely
at the Member’s discretion. (viii) The Member agrees 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 SEBI Rules and Regulations circulars /guidelines / Exchanges,
Rules / Regulations / Bye-laws and circulars. (ix) The Client agrees and empowers/authorize
the Member to act at its discretion of merging balances kept under various accounts
held with the Member such as, CM Trading Account , F&O Trading Account, margin
trading account etc., to nullify the debit in any other account of the Client held
with the Member without taking any further instructions from the Client. 2.2 Dealings
(a) The Client is responsible for all orders, including any orders that may be executed
without the required Margin (as stipulated by the Member from time to time) in the
Client&rsquorsquo;s account. If the Client’s order is executed despite a shortfall
in the available Margin, the Client shall, whether or not the Member intimates such
shortfall in the available Margin, instantaneously pay additional Margin. (b) The
Client’s positions are valued at the latest market price available (mark to
market) on a continuous basis by the Member. If on such mark to market, the loss
incurred by the Client is more than the Margin available with the.Member, the Client
shall instantaneously pay additional Margin. (c) If payment/securities towards the
margin or the shortfall in margin is not received instantaneously to enable restoration
of sufficient Margin in the Client’s account, all or some of the positions
of the Client may be squared off or the Securities placed as Margin by the Client
may be sold off by the Member at its sole discretion, without any further reference
to the Client and without prior notification, and any resultant or associated losses
that may occur due to such squaring off or sale or securities shall be borne by
the Client, and the Member is hereby fully indemnified and harmless by the Client
in this regard. (d) Prior to placing an order in connection with the sale/purchase
or transfer of any securities in which Client requires any form of regulatory or
other permission, the Client shall obtain such permission before placing of the
order and shall furnish necessary documents to the Member prior to the execution
of the order. The Client acknowledges and accepts that delays may occur in relation
to the processing of such orders despite the necessary documents being furnished
in a timely manner. The Member may at its sole discretion refuse to execute any
such order till it is satisfied of the legality of the transaction. The Client is
responsible for all costs associated with compliance or failure to comply with all
the regulatory requirements and hereby agrees to fully indemnify the Member from
any costs, losses, claims or other liability arising on account of such orders.
2.3 Execution of Orders; Confirmation (a) The Client understands that placing an
order with the Member including a market order does not guarantee execution of the
order. The Member has the absolute right to reject any order that may be made by
the Client for any reason whatsoever including for the breach of the requirement
of maintaining the prescribed margin in the Client account or the bank account.
(b) The Client is required to ascertain the status of his/her/its order (including
any rejection of the same) which would be posted only on the relevant sections of
the web site, and no separate confirmation of the execution rejection of the order
would be sent to the Client either physically or electronicallyFurther, the Exchange
may cancel the trade suomoto without giving any reason therefore and where the Exchanges
cancel trades suomoto, all such trades, including the trades done on behalf of the
Client shall ipso facto stand cancelled. The Member shall not be liable for any
losses, damage or claims on account of such rejection or cancellation of any trade
for any reason whatsoever. Further, the Member may at its sole discretion, subject
any order made by the Client to manual review and entry which may cause delays in
the execution of the Client’s order. (c) The Client is required to ascertain
all ledger balances of Securities in his/her/its accounts which would be posted
only on the relevant section of the website and no separate intimation of the ledger
balances of the Client in his her/its account would be sent to the Client either
physically or electronically. (d) In the event of the sale of any Securities by
the Member at the request of the Client and the inability of the Member to deliver
to the purchaser the securities so sold by reason of the failure of the Client to
supply the Member therewith then, and in such event, but subject to the provisions
of applicable laws, rules and regulations, the Client authorises the Member to borrow,
purchase or otherwise acquire any Securities necessary to make delivery thereof.
Further, the Client accepts liability for any premiums which the Member may be required
to pay, and for any losses, costs, charges, expenses or other liabilities whatsoever
which the Member may sustain or incur by reason of the Member’s inability
to deliver the Securities in question. (e) Without prejudice to any of the Member’s
other rights, the Member shall be entitled at any time (without liability on the
Member’s part and without assigning any reason therefor) to refuse to act
on any particular instructions (including any instructions countermanding other
instructions) from the Client. (f) Neither the Member nor any of its related companies
shall be liable for any loss sustained by the Client, directly or indirectly, if
it is prevented from acting as a direct or indirect result of government restrictions,
the imposition of emergency procedures or suspension of trading by any relevant
exchange, clearing house or other market, civil disorder, acts or threatened acts
of terrorism, natural disasters, war, strikes or other circumstances beyond its
control. (g) The Client confirms that the Client is aware that short selling is
not allowed in the Stock Exchanges and the Client undertakes not to short sell in
the Stock Exchanges. The Client confirms that every sell order the Client asks the
Member to execute on the Stock Exchanges will be a “long” sale. (h)
The Member agrees that it shall co-operate in redressing grievance of the client
in respect of transactions routed through it and in removing objections for bad
delivery of shares, rectification of bad delivery, etc. in respect of shares and
securities delivered / to be delivered or received / to be received by the client.
(i) The stock broker shall continue to be responsible for replacing bad delivering
of the client in accordance with applicable “Good & bad delivery norms”
even after termination of the agreement and shall be entitled to recover any loss
incurred by him in such connection form the client. 2.4 Price of Securities The
Client understands that with respect to any order, the Client will obtain the price
at which the order was actually executed in the Market, which may be different from
the price at which the Security was trading when the Client’s order was entered
into the Member’s System. By reason of physical restraints on the Stock Exchanges
and rapid changes in the prices to Securities that frequently takes place, there
may, on occasions, be a delay in making prices or in dealing. The Member may not
be able to trade at the prices quoted at any specific time or “at best”
or “at market” and the Client agrees to be bound by all transactions
executed by the Member in connection with any order. The Member is not liable for
any loss arising by reason of its failing, or being unable, to comply with the terms
of an order by or on behalf of the Client. Where the Member is unable to perform
any order in full,| it is entitled to effect partial performance, even without prior
reference to or confirmation of the Client. 2.5 Mistaken Orders The Member shall
not be responsible for any order, that is made by the Client by mistake and every
order that is entered by the Client through the use of the allotted user name and
the security code(s) shall be deemed to be a valid order for which the Client shall
be fully responsible. 2.6 Reconfirmation of Certain Orders The Client hereby confirms
that he/she/it is aware that the Member has provided on the web site a facility
for reconfirmation of order which are unusual and/or large and need to be executed
using the Member’s discretion. These orders are subject to manual review and
consequently execution of these orders may be delayed. The Member reserves the right
to reject any order based on risk perceptions. 2.7 Cancellation or Modification
of Orders (i) The execution or order cancellation or modification is not guaranteed.
Cancellation of orders is possible only if the original order remains pending at
the Exchange. Market orders are subject to immediate execution. The Client shall
not presume that an order has been executed or cancelled or modified and the Client
is required to verify the status of his/her/its orders on the website in accordance
with Clause above. (ii) Unless otherwise specified by the Member, any order not
executed at the end of the day shall stand cancelled. 2.8 Corporate Benefits; Settlement
Cycles The Client accepts responsibility for knowing the status of all corporate
benefits like rights and bonus issues, dividends and stock splits of shares he/she/it
intends to trade in or held on his/her/its account and the eligibility of the shares
to meet share pay in obligations to exchanges whether received by way of purchases,
right, bonuses, stock spilt, off market transfer otherwise. Member will pass to
the Client whatever corporate benefits are received from the companies directly
like dividends and bonus shares. For other corporate benefits/actions like Rights
issues/Open offers etc. where shareholders are required to apply to the company,
it is the Client’s responsibility to track announcements of such corporate
benefits and then apply to the company if Client so desires. The Member shall ensure
due protection to the client regarding client’s rights to dividends, rights
or bonus shares, etc. in respect of whom and for whom it may have had transaction
in securities. Member shall not be liable for any real/ notional loss suffered by
the Client, if Client fails to apply for such corporate benefits in time for the
shares held by the Member on behalf of the Client. In some cases, Member at the
Client’s request may apply on behalf of the Client for a Rights issue/Open
offer for the shares held by Member on behalf of Client. Member shall not be liable
for any loss/claim whatsoever in case such application is rejected by the Registrar/
Company/ Manager to the issue for any reason. 2.9 Brokerage and Other Charges (i)
The Client agrees to pay the brokerage charges, Exchange related charges, Statutory
levies, charges and any other charges (including but not limited to security handling
charges on settlement) as are prevailing from time to time and as they apply to
the Client’s account in respect of transactions and services that the Client
receives from the Member. The Member agrees that it shall not charge broker-age
more than the maximum permissible as per Rules, Regulations and bye laws of the
Exchanges/ SEBI. The brokerage shall be paid in the manner inti mated by the member
to the Client from time to time, including as a percentage of the value or the trade
or as a flat fee or otherwise, together with the service taxes as may be applicable
from time to time on the same. The Client further agrees to pay any applicable taxes
that may be levied on the transaction. (ii) The Member shall debit the charges of
the depository participant for the trades and the bank charges for the realization
of Cheques etc. to the Client’s account. 2.10 Unless otherwise agreed, the
Client agrees that when the Member has executed a purchase or sale transactionon
behalf of the Client, the Client will, by such time and at such place as may be
necessary for the Member to make delivery or payment as required by the Stock Exchange
(“due settlement date”), make payment to the Member against delivery
of (or credit to the Client’s account for) purchased Securities, or make good
delivery of sold Securities to the Member against payment, as the case may be 2.11
If the Client fails to make such payment or delivery of Securities by the due settlement
date the Member is, without prejudice to any other rights it may have pursuant to
this Agreement, hereby authorised to: in the case of a purchase transaction, to
transfer or sell any such purchased Securities to satisfy the Client’s obligations
to the Member; or in the case of a sale transaction, to borrow and/or purchase such
sold Securities to satisfy the Client’s obligations to the Member .check 2.12
The Client hereby acknowledges that it will be responsible to the Member for any
loss, costs, fees and expenses (including legal expenses on a full indemnity basis)
in connection with the Client’s failure to meet its obligations by the due
settlement dates as described in Clause 2.10. 2.13 The Member may in its absolute
discretion determine the priority in the execution of its clients’ orders,
having due regard to the sequence in which such orders were received and fairness
to all clients involved, and the Client shall not have any claim of priority to
another client in relation to the execution of any order received by the Member.
2.14 The Member and the client agree to reconcile their accounts at the end of each
quarter with reference to all the settlements where payouts have been declared during
the quarter. 2.15 Delayed Payment Charges Not with standing anything contained in
these Terms, any amounts which are overdue from the Client to the Member will be
charged delayed payment charges at the rate of 2% per month or such other rate as
may be determined by the Member and notified on the web site and the Client hereby
authorise the Member to directly debit the same to the account of the Client at
the end of each month. 2.16 Delayed Reporting of Transactions (a) If trades or transaction
are reported late to the Member on account of any problems at the Exchange or, for
whatever reason, the Client in turn will be subject to late reporting of transaction.
(b) In addition, any error reported to the Client for any reason whatsoever will
stand subsequently corrected to reflect the transaction that was effected in the
Market. 2.17 Pay Out The Client agrees that the Member shall not be obliged to deliver
any Securities or pay any Securities or pay any money to the Client unless and until
the same has been received by the Member from the Exchange, the Clearing Corporation/House.
Unless the member otherwise determines, and subject to the Member’s right
of set off and other rights, the Securities to be delivered by the Member to the
Client pursuant to the Client’s purchase transaction shall be credited to
the designated depository account of the Client and the sale proceeds by the Member
to the Client shall be deposited to the designated bank account of the Client. 2.18
Arrangements with Relationship Bank The Member has relationship with one or more
banks (“the relationship Bank”). The web site of the Member has a payment
window through a link to the web site of the relation bank, which provides the facility.
In such a case, the Client would make the payment for Securities purchased by him/her/it
by crediting the purchase amount (along with the indicated brokerage amount) directly
to the account of the Member with the relationship bank by means of a fund transfer
on the pay- in date of the relevant exchange or by means of a fund transfer on the
pay in date of the relevant Exchange on which the sale transaction is carried out.
The Member expressly states that the payment gateway mechanism is a service offered
by the Banks with whom the Member has established relation for facilitating the
transfer of funds between the Client’s account and the Member’s account.
The Member expressly excludes liability for consequential loss or damage or loss
of profit, business, revenue, good will or anticipated saving which may arise in
respect of (i) the payment gateway services offered by such bank (ii) the payment
Mechanism. 2.19 Voice Recordings (a) The Client hereby acknowledges and agrees to
the use of voice recording devices by the Member of any tele phone conversation
between the Member and the Client and any of the Client’s authorised persons,
employees, officers or agents, without an automatic tone warning device in order
to permit the Member to verify data concerning any matters relating to the purchase
and/or sale of Securities. (b) The Client confirms that the Member may tape record
conversations with the Client in order to permit the Member to verify information
concerning any matter. The Client agrees to accept the contents of any such recording
as final and conclusive evidence of communications from the Client given by the
Client or on behalf of the Client in case of dispute. 2.20 Conclusiveness of Records
The Member’s own records of the trades/transaction maintained through computer
systems or other-wise shall be accepted as conclusive and binding of the Client
for all purposes. 2.21 Set off across the Exchange In the case where the Client
or any members of the Clients group maintains separate accounts to which these facilities
may be extended by the Member to the Client or on any segment of the Exchange the
Client agrees that the Member may set off credit balances of securities and/or funds
in one or more of the accounts of the Client or any member of the Client’s
Group in relation to the said exchange and its segments against the debit balance
of securities and/or funds in one or more of the accounts of the Client or any member
of the Client’s Group in relation to the other exchange and segments of the
exchanges. 3 FREEZING OF THE ACCOUNTS The Client shall be entitled to exercise the
right to close/freeze/pledge the accounts with the depository partici pant and/or
the bank, as the case may be, only if there is no obligation pending to be met by
the Client to the Member and/or to, any member of the Client’s Group in the
form of cash and/ or security. 4 MEMBER CLIENT COMMUNICATION 4.1 Form of Communication
Documents which be sent by electronic delivery the parties may be in the form of
an electronic mail (including any auto replies form the system of the Member) an
electronic mail attachment, or in the form of an available download from the website.
The Member shall be deemed to have fulfilled any legal obligation to deliver to
the Client any such document if sent via electronic delivery provided however that
the notice of termination and physical contract notes specified in the terms here
in, shall be in writing. 4.2 Electronic Communication of Documents The Member shall
send to the Client by electronic means the trade confirmation of the trades executed
bill and account statement. The Client agrees that the Member fulfills its legal
obligation to deliver to the Client any such document if sent via electronic delivery.
The Client understands that it is his/her/its responsibility to review, upon first
receipt, whether delivered to Client by mail, E-mail (including any auto replies
from the system of the Member) or other electronic means, all confirmation, statements,
notices, bill and other communication or the contract notes via the physical mode
All information contained therein shall be binding upon the Client. If the Client
does not object either in writing, within 3 days after any such document is sent
to the Client, the same shall be deemed to have been correct and the same would
be binding on the Client. However, the Member reserves the right, in its absolute
discretion, to determine the validity of the Client’s objection to the transaction,
even though such objection is received after the expiry of 24 hours. The Client
agrees that the Member will not be responsible for non-receipt of documents sent
via electronic/physical delivery due to change in email address of the Client .
The Client also agrees that the Member shall not take cognizance of out of-office/out-of
station auto replies and the Client is deemed to have received such electronic mails.
4.3 Change of Address Unless the Client informs the Member of the change of the
address for communication in writing all notice circulars, communication or mail
sent to the existing address shall be deemed to have been received by the Client
irrespective of whether they are actually received or not. 4.4 Member’s Liability
Under no circumstance shall the Member or involved in creating, producing, delivering
or managing the Member’s services be liable for any direct, incidental, special
or consequential damages that result from the use of or inability to use the service,
delay in transaction of any communication, in each case for any reason whatsoever
(including on account breakdown in systems) or out of any breach of any warranty
or due to any fraud committed by any person whether in the employment of the member
or otherwise. 4.5 Default Whenever the Member deems it necessary for its protection
in its sole and absolute discretion; or if, in the Member’s opinion, the Client
has breached any material term of this Agreement or defaulted in respect of any
transaction with the Member or any related companies to which it is a party; or
if any representation, warranty or undertaking made in this Agreement or in any
document delivered to the Member pursuant to or in connection with this Agreement
was when given or hereafter becomes incorrect in any material respect; or for compliance
with any rules or regulations of any relevant exchange or clearing house; or in
the event that a petition in bankruptcy is filed against the Client or an order
is made or resolution passed for the Client’s voluntary or compulsory winding
up or a meeting is convened for the purpose of considering a resolution that the
Client should be so wound up; or in the event that a judicial declaration of incompetence
is made in respect of the Client or the Client dies; or any warrant or order of
attachment or distress or equivalent order is issued against any of the Client’s
accounts with the Member or any related companies then all amounts owing by the
Client to the Member shall become forthwith payable on demand, and interest will
accrue at the rate specified herein. on the amounts outstanding from time to time,
and the Member shall be entitled at its absolute discretion, without further notice
or demand, forthwith to: satisfy any obligation the CLIENT may have to the Member
(either directly or by way of guarantee or other security) out of the sale or other
realization, in such manner and upon such terms as the Member may in its absolute
discretion decide, of all or any part of any property held by the Member and/or
any related companies for any purpose in any account of the Client; cancel any open
orders for the purchase and sale of Securities; sell any or all Securities long
in any account of the Client; buy any or all Securities which may be short in any
account of the Client and exercise its rights under any other provisions of this
Agreement. The Member may apply the net proceeds (after deduction of all fees, costs
and expenses (including legal costs) incurred in connection with the exercise of
any such action referred to in this Clause in reduction of the Client’s then
outstanding obligations or indebtedness to the Member and/or any related companies.
The Client shall at all times be liable for the payment upon demand of any debt
or negative balance whatsoever and howsoever arising on any account (including in
the event of any liquidation of any such account) together with any cost or expense
(including legal costs on a full indemnity basis).upon demand of any debt or negative
balance that may exist after the Member has exercised any of its rights under this
Agreement. The Client hereby waives all claims and demands (if any) against the
Member in respect of any loss, involuntary or otherwise, directly arising from the
exercise by the Member of the powers conferred by this clause, howsoever such loss
may have been caused (other than through the willful misfeasance or negligence of
the Member or the reckless disregard of the obligations of the Member under this
clause), whether in relation to the timing or manner of the exercise of such powers
or otherwise. The Member and/or any related companies may purchase the Securities
or other assets which are the subject of any sale made pursuant to this clause free
from any right of redemption and neither the Member nor any related companies shall
be accountable to the Client for any profits, charges or commissions received by
any of them or their nominees or agents as a result of the exercise by the Member
of powers conferred pursuant to this clause. Information about default in payment
/delivery and related aspects by a client shall be brought to the notice of the
relevant stock exchange (s). in case where defaulting client is a corporate entity
/partnership / proprietary firm or any other artificial legal entity, then the name(s)
of the director(s)/ promoter(s) / Partner(s) / proprietor as the case may be, shall
also be communicated to the relevant stock exchange(s). 4.6 Amendment/Modification
of the Terms This Agreement can be altered, amended and /or modified by the parties
mutually in writing without derogating from the contents of this Agreement. PROVIDED
HOWEVER that if the rights and obligations of the parties here to are altered by
virtue of change in Rules and regulation of SEBI or bye law, Rules and Regulations
of the stock exchanges or any of them, such changes shall be deemed to have been
incorporated herein in modification of the rights and obligations of the parties
mentioned in this Agreement. 4.7 Notice/Policies Certain policies and/or procedures
may be further outlined on the Member’s web site and material/ literature
and frequently asked question (FAQ’s) provided to the Client. Through the
use of the Member’s web site and ser vices the Client agrees to be bound by
any and a such notices, polices and terms of doing business. 5. SECURITY CODE (s)
SECURITY PRECAUTION AND INFRASTRUCTURE 5.1 Use of Client-ID Password The Client
confirms and agrees that it will be the sole authorised user of the User name, Password,
Client User Identification Number, Telephone Personal Identification Number (T-Pin)
or other identification or security code by whatever name called, to be given to
it by the Member to access Member’s system or service through Member’s
web site, over the telephone or in such manner as may be permitted by the Member
for availing of the service. The Client accepts sole responsibility for use, confidentiality
and protection of the User name Pass word, Client User Identification Number, T-Pin
or other security code(s) as issued by the Member to the Client from time to time
(hereinafter referred to as “security codes” as for all orders and information
changes entered into the Client’s account using such security codes. The Client
shall ensure that such security code(s) is/are not revealed to any third party.
If the Client forgets the security code(s) a request change of such security code(s)
should be sent to the Member in writing. On receipt of such request the Member shall
discontinue the use of the old Security code (s) and shall generate new security
code(s) for the Client which shall be communicated to the Client. However the Client
shall be responsible and liable for all transactions that are carried out by the
use of the only Security code (s). Neither the Member nor any of its officers, directors,
employees, agents, affiliates or subsidiaries will have any responsibility or liability
to the Client or to any person whose claim may arise through the respect to any
of the circumstances described above. 5.2 Recording of Password The Client shall
memorize the security code(s) and not record it in written or electronic form. In
the event that the Client does record the security code(s) in written or electronic
form he/she/it shall do so at his/ her/its sole risk and responsibility. 5.3 Responsibility
for Use of Security Code(s) Any order entered using the Client’s security
code(s) either through the web site or through telephone or other wise shall be
deemed to be that of the Client. If third parties gain access to the Member’s
services through the use of the Client’s security code (s) the Client will
be responsible for the same The Client shall indemnify and keep the Member indemnified
and harmless the Member liability, costs or damages arising out of claims or suits
by or against such third parties based upon or relating to such access and use of
security code since the primary responsibility for such transaction shall be that
of the Client. The use and storage of any information including, without limitation,
the password portfolio information, transaction activity, account balances and other
information or order on the Client’s personal computer is at the Client’s
own risk and is the Client’s sole responsibility. 5.4 Protection of Security
Code(s) The Client shall immediately notify the Member in writing, delivered via-e-mail
and Registered AD, if the Client becomes aware of any loss, theft or unauthorized
use of the Client’s Security code (s) and account number or any failure by
the Client to receive the confirmation of an execution including the contract note
for the same; or any receipt by the Client of confirmation of an order and/or execution
which the Client did not place; or any inaccurate information in the Client’s
account balances, securities position, or transaction history. In the case where
the Client notifies such loss, theft or unauthorized use of the Client’s Security
code (s) password and account number to the Member, it shall suspend the use of
the account of the Client, however the Client shall be responsible and liable for
all transaction that are carried out by using the Client’s password. When
any of the above circumstances occur, neither the Member nor any of its officers,
directors, employees, agents or subsidiaries will have any responsibility or liability
to the Client or to any other person whose claim may arise through the Client with
respect to any circumstances described above. 5.5 Communication Equipment of the
Client The Client is responsible for installing and maintaining the communication
equipment (including personal computers and modems) and telephone or alternative
service required for accessing and using the web site or related service. All communication
costs, service charges, levies and fees incurred by the Client in accessing the
web site or related services will be borne by the Client. 5.6 Client’s infrastructure
For the purpose of these Terms, it is presumed that the Client has all the necessary
and compatible infrastructure ready at its end for the purpose of accessing the
web site of the Member or contacting the phone broking executive of the Member prior
to accessing the service provided pursuant to these terms. The Member will not (and
shall not be under any obligation to) assist the Client in installing the required
infrastructure or obtaining the necessary equipment permits and clearances to establish
connectivity or linkages to the web site of the Member. 5.7 Prevention of Unauthorized
Use The Client will install the necessary safeguards and access restrictions to
prevent unauthorized use of Client computer systems or security code and ensure
that no unauthorized person can gain access to the computer systems or such security
codes. 5.8 Liability for Incorrect Instructions The Client agrees to fully indemnify
and hold harmless the Member for any losses, expenses or other consequences arising
from the execution of incorrect/ambiguous or fraudulent instruction that got entered
through the system at the Client’s end. 5.9 Secure Electronic Records and
Digital Signature In the event that the certifying authority and other infrastructure
contemplated under the Information Technology Act, 2000 for ensuring secure electronic
records and secure digital signatures is notified by the concerned authorities and
the infrastructure to enable the same is in place the Member would have the right
to require the Client to authorise the various transaction on the web site by means
of such secure electronic records and secure digital signatures and discontinue
the usage of the Client password. 6. MISCELLANEOUS PROVISIONS GOVERNING THE TERMS
6.1 Use of web content The Client agrees that each participating Exchange or association
or agency asserts a proprietary interest in all of the market data it furnishes
to parties that disseminate the said data. The Client shall use real-time quotes
received on the web site of the Member only for the Client’s individual use
and shall not furnish such data to any other person or entity. The Client is authorized
to use materials which are made available by the Member’s website for the
Client’s own needs only, and the client is not authorized to resell access
to any such materials or to make copies of any such materials for sale or use to
and by others. The Client shall not delete copyright or other intellectual property
rights notices from printouts of electronically accessed materials from the Member’s
web site. 6.2 Limitation of liability I. The Member does not guarantee, and shall
not be deemed to have guaranteed, the timeliness, sequence, accuracy, completeness,
reliability or content of market information, or messages disseminated to the Client.
The Member shall not be liable for any inaccuracy, error or delay in, or omission,
(1) any such data information or message, or (2) 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 any such data, information or message, due either to any act or
omission by the Member or to any “force majeure” event (e.g. flood,
extraordinary weather condition, earthquake or other act of God, fire, war, insurrection,
riot, labor dispute, accident, action of government, communications, power failure,
shut down of systems for any reason (including on account of computer viruses),
equipment of software malfunction), any fraud committed by any person whether in
the employment of the Member or otherwise or any other cause within or beyond the
reasonable control of the Member. II. The Member shall not be liable for any inaccuracy,
error, false statement, misrepresentation or fraud committed by any sales or other
associated/third parties engaged by the Member to promote the services offered by
it. The Client agrees that he/she/it places no reliance on such persons and will
exercise due care and diligence in relying on any statements made by such persons.
Further such persons are not and cannot be construed as agents of the Member. 6.3
Interruption in service The Member does not warrant that the service will be uninterrupted
or error free. The service is provided in an “as in” and “as available”
basis without warranties of any kind, either express or implied, including, without
limitation, those of merchantability and fitness for a particular purpose. The client
agrees that the Member shall not be held responsible for delays in transmission
of orders due to breakdown of the system or failure of communication facilities
either due to the fault of the systems of the Member or of the Exchanges or otherwise
or for any other delay beyond the reasonable control of the Member due to a breakdown
or failure of communication facilities or for any other delay beyond the reasonable
control of the Member. 6.4 Warranties of Client The Client hereby represents and
warrants that the terms and conditions of these terms have been clearly understood
and that the information furnished to the member is accurate and truthful. The Client
confirms that he/she is of legal age and he/she/it has obtained the necessary approvals
from the relevant regulatory/legal and compliance authorities to access the services
provided pursuant to these terms. 6.5 Indemnity (i) Though orders are generally
routed to the market/place immediately after the time the order is placed by the
Client on the system there may be a delay in execution of the order due to any link/system
failure at the Client Member/ Exchange’s end. The Client hereby specifically
indemnifies and holds the Member harmless from any and all claims, and agrees that
the Member shall not be liable for any loss, actual or perceived, caused directly
or indirectly by government restriction, exchange or market regulation, suspension
of trading, war, strike, equipment failure, communication line failure, system failure,
security failure on the internet, shut down of systems for any reason (including
on account of computer viruses), unauthorized access, theft, any fraud committed
by any person whether in the employment of the Member or otherwise or any problem,
technological or otherwise that might prevent the Client from contacting the phone
broking services of the Member or entering the Members system or from executing
an order or in respect of other conditions. (ii) The Client further agrees that
he/she/it will not be compensated by the Member for any “lost opportunity”
viz. national profits on buy/sell orders which could not be executed due to any
reason whatsoever, including but not limited due to time lag in the execution of
the order or the speed at which the system of the Member or of the Exchanges is
operating, any shutting down by the Member of his/ her/its system for any reason
of the Member disabling the Client from trading on its system for any reason whatsoever.
(iii) The Client hereby indemnifies and agrees to keep indemnified the Member and
its employees, agents or representatives from and against all sums of moneys, actions,
proceedings, suits, claims, demands, damages, costs, expenses and any other amounts
whatsoever arising out of any default, whether by act or omission, of the Client
under the Agreement or anything lawfully done by the Member in accordance with the
Agreement or by reason of the Member complying with any direction, request or requirement
of the Stock Exchange or other regulatory authority. (iv) The Client also agrees
that the Member shall not be liable to the Client for any losses, costs, expenses,
or other damages sustained by the Client in the event of any failure or delay by
any exchange, market, clearing house, bank or other depository institution where
any of the Client’s funds or other assets are maintained, or a failure or
delay by any member, bank or agent of any of the foregoing, or a failure or delay
by any of the foregoing toenforce its rules, to fulfill its obligations, or to make
any payment, for any reason whatsoever. The Client waives any claim, cause of action
or right as against the Member its employees or agents, which may arise or occur
as result thereof. (v) The Client agrees that he/she/it shall not pay any amount
in cash to any Sales Representative of the Member’s at any time for carrying
out any transaction in the normal course of the business. The Member shall not be
responsible for any loss on account of cash payment by the Client being contrary
to instruction of Member. 6.6 Death or Insolvency or winding up (i) 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/her/it or if any litigation which may have material
bearing on his capacity has been filed against him/her/it. (ii) In the event of
death or insolvency or liquidation of the Client or of his/her/its otherwise becoming
incapable of receiving and/or paying for or delivering or transferring securities
which the Client has ordered to be bought or sold, the Member may close out the
transaction of the Client the Client or his/ her/its legal representative(s) shall
be liable for any losses, costs and can claim losses, if any, from the estate of
the deceased Client and/or the legal representatives who shall however be entitled
to any surplus which may result there from. 6.7 Severability If any provisions of
these Terms are held invalid or unenforceable by reason of any law, rule, administrative
order or judicial decision by any court, regulatory or self-regulatory agency or
body, such invalidity or un enforce ability shall attach only to such provision
or terms held invalid. The validity of the remaining provisions and terms shall
not be affected thereby and these terms shall be carried out as if any such invalid/unenforceable
provisions or terms were not contained herein. Words and expressions which are used
this agreement, but which are not defined herein shall, unless the context otherwise
requires, have the same meaning as assigned thereto in the Rules, Bylaws and Regulations
of the exchange(s) and circulars issued thereunder. 6.8 No Assignment The rights
of the Client under these Terms are not transferable under any circumstances and
shall be used only by the Client. 6.9 Further Assurances In connection with this
Agreement, as well as all transactions contemplated by this Agreement as offered
by the Member from time to time each Party agrees to execute and deliver such additional
documents and to perform such additional actions as may be necessary, appropriate
or reasonably requested to carry out or evidence the transactions in respect of
the Services availed by the Client from time to time. 6.10 Dispute Resolution (a)
The Member and the Client are aware of the provisions of the bye- laws, rules and
regulations of the Exchanges and circulars issued thereunder as maybe in force from
time to time relating to the resolu-tion of the disputes differences through the
mechanism of arbitration provided by the Exchanges and agree to abide by the said
provisions in so far as any disputes under these terms relate to transactions that
are to be carried on the exchanges. (b) The Member hereby agrees that it shall ensure
faster settlement of any arbitration proceedings arising out of the transaction
entered into between him and the client and that it shall be liable to implement
the arbitration awards made in such proceedings. (c) In so far as any other disputes
or differences in connection with these Terms or their performance (other than the
disputes referred to in 6.10 (a) above) are concerned such disputes shall, so far
as it is possible, be settled amicably between the Parties and in the case where
after 30 days of consultation, the parties have failed to reach an amicable settlement,
such disputes shall be submitted to arbitration and such arbitration shall be conducted
in accordance with the Indian Arbitration and Conciliation Act, 1996 (the “Arbitration
Act”) by a panel consisting of a sole arbitrator. (d) The Member and the client
agree to abide by any award passed by the Ombudsman under the SEBI (Ombudsman) Regulation,
2003 6.11 Termination (i) This agreement shall forthwith terminate: if the Member
for any reason ceases to be a member of the Stock Exchange including cessation of
membership by reason the Member’s default, death, resignation or expulsion
or if the certificate issued by the Board is cancelled. (ii) Either party shall
be entitled to terminate this Agreement without assigning any reason, after giving
notice in writing of not less than one month to the other party. (iii) Not with
standing 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 Agreement 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. 6.12 Jurisdiction All trades, transactions and
contracts are subject to the Rules and Regulations of the respective Exchange on
which the trades have been executed and shall be deemed to be and shall take effect
as wholly made, entered into and to be performed in the city of Mumbai and the parties
to such trades shall be deemed to have submitted to the jurisdiction of the Courts
in Mumbai. 6.13 Authorised Representative The instructions issued by an authorized
representative of the Client shall be binding on the Client in accordance with the
letter authorizing the said representative to deal on behalf of the Client. The
Client is aware that authetication technologies and strict security measures are
required for the Internet trading through order routed system and undertakes to
ensure that the security code(s) of the Client and / or his/her/its authorised representative.
In the event of the authorized representative(s) being replaced, it shall be the
responsibility of the Client to inform the Member of the change in writing, failing
which the Client shall be responsible for the trade obligations arising out of the
actions of both the old representative as well as the new representative. 7. CLIENT’S
COVENANTS 7.1 The Client hereby undertakes to:.(i) Place the initial and maintenance
margin amounts as the Member may specify to the Client from time to time, subject
to requirements specified by SEBI. (ii) Authorize retention of the shares with the
Member upon the receipt of the same in the pay out from the Stock exchange till
the amount due in respect of the said transaction including the dues to the Member
is paid in full by the Client. (iii) To pay to the Member-Brokerage, commission,
fees, transaction costs, service tax, stamp duty and other taxes expenses as are
prevailing from time to time and as they apply to the Client’s account, transactions
and to the Services that the Member renders to the Client. (iv) Abide by any revision
in any of the terms of this agreement as may be agreed between the parties 7.2.
Client’s Warranties The Client warrants, represents and assures the Member
that he shall duly observe and perform the conditions and obligations stated herein.
7.3 Member’s Representation The Member represents that on entering into this
agreement and deposit of initial margin by the Client the Member undertakes to settle
the obligation towards the Stock Exchange for and on behalf of the Client. The Client
hereby agrees and authorizes the Member to make such payments on his behalf. 8 GENERAL
8.1 Mark to Market Margins in Derivatives For Derivatives contracts, the Client
agrees that the Member shall raise bills at suitable periodic intervals. The Client
also agrees to pay an up-front margin at the beginning of each week that will be
sufficient to cover the daily margins for the entire duration of the week. If at
any time during the week, the cumulative Mark to Market (MTM) margin falls short
Margin available in the Client’s account, the Client agrees to heed the Member’s
additional Margin calls. As the up-front weekly margin calls are purely for operational
convenience, the Client will ensure that the Margins are adequate at all times and
will immediately make good any short fall that the Member may commu nicate. 8.2
Payment by Client through Cheque In case where the payment by the Client towards
the Margin is made through a cheque issued in favor of the Member, the said cheque
will be credited to the Client’s account only after realization of funds in
the Member’s bank account. 8.3 Credit inquiry The Client authorises the Member
to conduct at any time a credit inquiry or check on the Client for the purpose of
ascertaining the financial situation and investment objectives of the Client and
the Client shall provide such financial and other information to the Member as may
be required by the Member from time to time. 9. FOREIGN JURISDICTION This Agreement
does not constitute an offer to sell or a solicitation of an offer to buy any shares,
securities or other instruments to any person in any jurisdiction where it is unlawful
to make such an offer or solicitation. The services covered under this Agreement
are not intended to be any form of any investment advertisement investment advice
or investment information and has not been regis-tered under any securities law
of any foreign jurisdiction and is only for the information of any person in any
jurisdiction where it may be lawful to offer such a service. Further, no information
on WWW.KKSECURITIES.COM is to be construed as a representation with respect to shares,
securities or other investment regarding the legality of an investment therein under
the respective applicable investment or similar laws or regulations of any person
or entity accessing WWW.KKSECURITIES.COM. 10. CONFIDENTIALITY The Member hereby
undertakes to maintain the details of the Client as mentioned in the Client registration
form or any other information pertaining to the Client, in confidence and that the
Member shall not disclose the same to any person/entity as required under the law/regulatory
requirements. AND provided however, that the Member shall be allowed to share the
details of the Client as men-tioned in the Client registration form or any other
information pertaining to the Client with parties/ entities other than required
under law with the express permission of the Client. 11. PROPRIETARY TRADING The
Member discloses herewith that it undertakes Proprietary trading in addition to
Client based trad-ing. 12. ELECTRONIC PAYMENT GATEWAY 12.1 In this clause: (i) “Electronic
Payment Gateway for Net banking Terms and Conditions” shall mean the terms
and conditions as modified from time to time applicable to Electronic Payment Gateway
for Net banking offered through the Member in the HDFC or other bank a/c and accepted
by the Client; (ii) “Confidential Information” refers to information
obtained by the Client, through the Member, for the effective availment of Services
or Payment Instruction Services” Electronic Payment Gateway for Net banking
services. (iii) “Payment Instruction” shall mean an instruction given
by a Client to transfer funds from the Account held by the Client to the account
of the Member. 12.2 Internet Internet refers to the network of computers/mobile
phones/other electronic devices which share and exchange information. The Internet
is at once a worldwide broadcasting capability, mechanism for information dissemination,
and a medium for collaboration and interaction between individuals and their computers/mobile
phones other electronic devices capable of accessing the Internet without regard
for geographic location. 12.3 Electronic Payment Gateway for Net banking Services
Electronic Payment Gateway for Netbanking Services is the Member’s Service
which provides ac-cess to account information, the Internet with the help of concerned
bank. The terms Electronic Payment Gateway for Net banking and Electronic Payment
Gateway for Net banking services/facility may be interchangeably used. 12.4 Client
Client refers to any person who has an Member Account and who has been authorised
by the Mem-ber to avail of the said facility. 12.5 Account Account refers to the
Client’s Savings and/or Current Account to which access is to be obtained
through Electronic Payment Gateway for Net banking. 12.6 Personal Information Personal
Information refers to the information about the Client obtained in connection with
Electronic Payment Gateway for Net banking or otherwise. 12.7 Application for Electronic
Payment Gateway for Net banking The Member may offer Electronic Payment Gateway
for Net banking to selected Clients at its discre-tion in collaboration with the
concerned bank. The Client agrees that in order to be eligible for Elec-tronic Payment
Gateway for Net banking it/he/she would need to be a current Internet user or have
access to the Internet and knowledge of how the Internet works and have Net Banking
facility with its/ his/her bank. The Client accepts that the application for Electronic
Payment Gateway for Net banking does not automatically imply acceptance by the Member.
12.8 Software The Member or the concerned bank will advise from time to time the
Internet software such as Browsers, which are required for using Electronic Payment
Gateway for Net banking. There will be no obligation on the Member to support all
the versions of this Internet software. The Client agrees that the Client shall
be responsible for upgrading their software, hardware and the operating system at
their cost from time to time so as to be compatible with that of the Member. The
Member or the bank shall be at liberty to change, vary or upgrade its software,
hardware, operating systems, etc., from time to time and shall be under no obligation
to support the software, hardware, operating systems used by the Client and that
the same shall be their sole responsibility. 12.9 Electronic Payment Gateway for
Net banking Service (a) The Member shall endeavor to provide through Electronic
Payment Gateway for Net banking, such services as the Member may decide from time
to time. The Member reserves the right to decide the type of services which may
be offered on each account and may differ from Client to Client. These facilities
shall be offered in a phased manner at the discretion of the Member. The Member
may also make additions/deletions to the services offered through Electronic Payment
Gateway for Net bank-ing at its sole discretion. The availability/non-availability
of a particular service shall be advised through e-mail or web page of the Member
or written communication. (b) In case of Joint accounts and accounts with two or
more signatories, the Member will offer such services as restricted by the terms
and conditions governing the operation of such accounts. (c) In case of Minor accounts,
the natural guardian undertakes to give all instructions relating to the operation
of the account and further undertakes not to reveal the Client ID and Password to
the minor. (d) The Member shall take reasonable care to ensure the security of and
prevent unauthorized access to the Electronic Payment Gateway for Net banking service
using technology reasonably available to the Member. (e) The Client agrees that
it/he/her shall not use or permit to use Electronic Payment Gateway for Net banking
or any related service for any illegal or improper purposes. 12.10 Electronic Payment
Gateway for Net banking Access (a) The Client understands that the Member would
allot them a Client-ID and password for their account, which will enable them to
have excess to Electronic Payment Gateway for Net banking to perform Net banking
for bank account. The Client will be required to change the password assigned by
the Member on accessing Electronic Payment Gateway for Net banking for the first
time. As a safety measure the Client changes the password as frequently thereafter
as possible. In the absence of any specific request from them for personally collecting
the Password, the Password shall be sent to the Client by courier at its/his/her
risk and consequences to the address notified by them for correspondence, and the
Member shall be not liable or held responsible in any manner whatsoever, if the
Password falls in the hands of unauthorized persons. (b) In addition to Client-ID
and Password the Member may, at its discretion, require the Client to adopt such
other means of authentication including but not limited to digital certification
and / or smart cards. The Client agrees that it/he/she shall not attempt or permit
others to attempt accessing the account information stored in the computers of the
Member through any means other than the Electronic Payment Gateway for Net banking
service. The Client is aware that the transaction through Electronic Payment Gateway
for Net banking can be effected by use of their password for their Member account
and passwords for Net Banking for the operation of their bank account for Net Banking.
The Client shall not request /demand any evidence of proof for transactions undertaken
through the Net and the audit trail of the log-in would be conclusive proof to establish
that the transactions are bonafide. 12.11 Password The Client understands and agrees
that it/he/she must: (a) Keep the password totally confidential and not reveal the
password to any third party (b) Choose a password that shall consist of a mix of
alphabets, numbers and special characters, which must not relate to any readily
accessible personal data such as it/his/her name, address, telephone number, driver
license etc. or easily guess able combination of letters and number (c) Commit the
password to memory and not record them in a written or electronic form, and (d)
Not let any unauthorized person have access to their computer or leave the computer
unattended while accessing Electronic Payment Gateway for Net banking. (e) In case
the Client forgets the password for their account in the Member, it/he/she can request
for change of the password. Such replacement shall not be construed/deemed as the
commencement of a new contract. 12.12 Transaction Processing All the requests for
instantaneous transactions will be given effect to instantaneously. In case requests
for effecting any transactions are received on weekly offs/holiday/public holidays,
with the member, the Exchange & bank, they shall be effected on the immediately
succeeding working day on the terms and conditions prevailing on thatday. The Client
shall not hold the Member or the bank responsible for not processing/effecting any
transactions in case the Member does not receive instruction to this effect even
though they have forwarded the same. The Client hereby agrees to abide by the following
terms and conditions in addition to the terms and conditions as applicable to 12.13
Electronic Payment Gateway for Net banking (a) The Client shall be free to utilize
the Payment Instruction Services through Electronic Payment Gateway for Net banking
for transfer of funds for such purpose, as they shall deem fit. (b) The Client however
agrees not to use or permit the use of the Payment Instruction Services or any related
services for any illegal or improper purposes. Whilst utilizing the Payment Instruction
Services for making any payments for any services obtained whether on-line or otherwise,
they shall ensure that. (c) The Client has the full right and/or authority to access
and avail of the services obtained and they shall observe and comply with the applicable
laws and regulations in each jurisdiction in applicable territories. They shall
not access to family/relatives/friends or any other person’s account through
this gateway facility for transfer of funds and if done so then the Client shall
be solely responsible for the said transfer of funds. And further undertake if any
such claim is made by the third party so effected then they shall be solely responsible
and not Member in any manner. (d) The Client shall not involve the Member as a party
to such transaction. (e) The Client shall provide the Member with such information
and/or assistance as is required by the Member for the performance of the Services
and/or any other obligations of the Member under this Agreement. (f) The Client
shall not at any time provide to any person, with any details of the accounts held
by me/us with the Member including, the passwords, account number which may be assigned
to me/us by the Member from time to time. 12.14 Risks The Client hereby acknowledges
that it/he/she is availing the Payment Instruction Service at it/his/her risk. These
risks would include but not be limited to the following risks: (a) Misuse of Password:
The Client acknowledges that if any third person obtains access to their password
of the Client, such third person would be able to provide Payment Instructions to
the Member. They shall ensure that the terms and conditions applicable to the use
of the password as contained in the Electronic Payment Gateway for Net Banking Terms
and Conditions are complied with at all times. (b) Internet Frauds: The Internet
per se is susceptible to a number of frauds, misuse, hacking and other actions,
which could affect Payment Instructions to the Member. Whilst the Member shall aim
to provide security to prevent the same, there cannot be any guarantee from such
Internet frauds, hacking and other actions, which could affect Payment Instructions
to the Member. The Client shall separately evolve/ evaluate all risks arising out
of the same. (c) Mistakes and Errors: The filling in of applicable data for transfer
would require proper, accurate and complete details. For instance, the Client is
aware that they would be required to fill in the account number of the Member to
whom the funds are to be transferred. In the event of any inaccuracy in this regard,
the funds could be transferred to incorrect accounts and there is no guarantee of
recovery thereafter. The Client shall therefore take all care to ensure that there
are no mistakes and errors and that the information given by me/us to the Member
in this regard is error free, accurate, proper and complete at all points of time.
On the other hand in the event of my in this regard is error free, accurate, proper
and complete at all points of time. On the other hand in the event of my Account
receiving an incorrect credit by reason of a mistake committed by some other person,
the Member or the bank shall be entitled to reverse the incorrect credit at any
time whatsoever without the consent of the Client. I/we shall be liable and responsible
to Member and accede to accept the Member’s instructions without questions
for any unfair or unjust gain obtained by me as a result of the same. (d) Transactions:
The transactions, which the Client may require, the transfer of the funds may not
fructify The Member is merely providing it/him/her services whereby the said funds
would be transferred from there. (e) Technology Risks: The technology for enabling
the transfer of funds and the other services offered by could be affected by virus
or other malicious, destructive or corrupting code, program me or macro. It may
also be possible that the site of the Member or the bank may require maintenance
and during such time it may not be possible to process the request of the Clients.
This could result in delays in the processing of instruc-tions or failure in the
processing of instructions and other such failures and inability. The Client under-stands
that the Member disclaims all and any liability, whether direct or indirect, whether
arising out of loss of profit or otherwise arising out of any failure or inability
by the Member to honor any Client instruction for whatsoever reason. The Client
understands and accepts that the Member shall not be responsible for any of the
aforesaid risks. Client also accepts that the Member shall disclaim all liability
in respect of the said (f) Limits: The Client is aware that the Member may from
time to time impose maximum and minimum limits funds that may be transferred by
virtue of the payment transfer service given to it/him/her hereunder. The Client
realizes and accepts and agrees that the same is to reduce the risks on it/him/her.
For instance, the Member may impose transaction restrictions within particular periods
or amount restrictions within a particular period or even each transaction limits.
The Client shall be bound by such limits imposed and shall strictly comply with
them. (g) Indemnity: The Client shall indemnify the Member from and against all
losses and damages that may be caused as a consequence of breach of any of the Electronic
Payment Gateway for Net banking Term and Conditions and the terms and conditions
mentioned herein above. (h) Withdrawal of Facility: The Member shall be entitled
to withdraw this service at any time whatsoever (i) Charges: The Client hereby agrees
to bear the charges as may be stipulated by the Member from time to time for availing
of these services. (j) Binding nature of above terms and conditions: The Client
agrees that by use of this facility, the Client shall deemed to have agreed to all
the above terms and conditions and such terms and conditions shall be bound on it/him/her
in the same manner as if it/he/she has agreed to the same in writing. 13. AUTHORITY
TO THE MEMBER (i) Electronic Payment Gateway for Net banking transactions in the
Client’s Account(s) are permitted only after authentication of the Client-ID
and Password. The Client agrees that they grant express authority to the Member
or the bank for carrying out transactions performed by them through Electronic Payment
Gateway for Net banking. The Member shall have no obligation to verify the au-thenticity
of any transaction received from the Client through Electronic Payment Gateway for
Net banking or purporting to have been sent by them via Electronic Payment Gateway
for Net banking other than by means of verification of their Client-ID and the password..(ii)
The display or printed output that is produced by the Client at the time of operation
of Electronic Payment Gateway for Net banking is a record of the operation of the
internet access and shall not be construed as the Member’s record of the relative
transactions. The Member’s or bank own record of transactions maintained through
computer systems or otherwise shall be accepted as conclusive and binding for all
purposes unless any discrepancy is pointed out within one week from the date of
access or from the date of sending the periodical statement, whichever is earlier.
(iii) All transactions arising from the use of Electronic Payment Gateway for Net
banking, to operate a joint account, shall be binding on all the joint account holders,
jointly and severally. 14. ACCURACY OF INFORMATION The Client agrees that it/he/she
are responsible for the correctness of information supplied to the Member through
the use of Electronic Payment Gateway for Net banking or through any other means
such as electronic mail or written communication. The Member accepts no liability
for the consequences arising out of erroneous information supplied by them. The
Client agrees that if it/he/ she notices any error in the account information supplied
to it/him/her through Electronic Payment Gateway for Net banking or by the use of
any of the Electronic Payment Gateway for Net banking services, the Client shall
advise the Member & bank as soon as possible. The Member will endeavor to correct
the error promptly. 15. LIABILITY The Client complies with the Terms and advise
the Member and the bank in writing under acknowledgment immediately after it/he/she
suspect that their Client-ID or password is known to another person and/or notice
an unauthorized transaction in their Electronic Payment Gateway for Net banking
account. The Client agrees that it he/she shall be liable for some or all loss from
unauthorized transactions in the Electronic Payment Gateway for Net banking accounts
if it/he/she has breached the Terms or contributed or caused the loss by negligent
actions such as the following: (a) Keeping a written or electronic record of Electronic
Payment Gateway for Net banking password. (b) Disclosing or failing to take all
reasonable steps to prevent disclosure of the Electronic Payment Gateway for Net
banking password to anyone including Member staff and/or failing to advise the Member
of such disclosure within reasonable time. (c) Not advising the Member and the bank
in a reasonable time about unauthorized access to or erroneous transactions in the
Electronic Payment Gateway for Net banking accounts. The Member shall in no circumstances
be held liable to the Client if Electronic Payment Gateway for Net banking access
is not available in the desired manner for reasons including but not limited to
natural calamity, floods, fire and other natural disasters, legal restraints, faults
in the telecommunication network or Internet or network failure, software or hardware
error or any other reason beyond the control of the Member. The Member shall under
no circumstances shall be liable for any damages whatsoever whether such damages
are direct, indirect, incidental, consequential and irrespective of whether any
claim is based on loss of revenue, investment, production, good will, profit, interruption
of business or any other loss of any character or nature whatsoever and whether
sustained by the Client. 16. DISCLOSURE OF PERSONAL INFORMATION The Client agrees
that the Member or its contractors may hold and process the Client’s Personal
Information on computer or otherwise in connection with Electronic Payment Gateway
for Net banking services as well as for statistical analysis and credit scoring.
The Client also agrees that the Member 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 (a) For participation in any telecommunication
or electronic clearing network in compliance with a legal directive. (b) For credit
rating by recognized credit scoring agencies. (c) For fraud prevention purposes.
17. MEMBER’S LIEN The Member shall have the right of set-off and lien, irrespective
of any other lien or charge, present as well as future on the deposits held in the
Client accounts and stocks whether in single name or joint name(s), group account
to the extent of all outstanding dues, whatsoever, arising as a result of the Electronic
Payment Gateway for Netbanking service extended to and/or used by them. 18. NON-TRANSFERABILITY
The grant of facility of Electronic Payment Gateway for Net banking to them is not
transferable under any circumstance and shall be used only by the Client . 19. TERMINATION
OF ELECTRONIC PAYMENT GATEWAY FOR NET BANKING SERVICE (a) The Client may request
for termination of the Electronic Payment Gateway for Net banking facility any time
by giving a written notice of at least 15 days to the Member. The Client agrees
that he/she/it will remain responsible for any transactions made on their Electronic
Payment Gateway for Net banking account(s) through Electronic Payment Gateway for
Net banking prior to the time of such cancellation of the Electronic Payment Gateway
for Net banking Service. (b) The closure of all the Accounts of the Client will
automatically terminate the Electronic Payment Gateway for Net banking service.
(c) The Member may suspend or terminate Electronic Payment Gateway for Net banking
facilities without prior notice. GENERAL (a) The Client shall from time to time
upon the request of the Member promptly and duly execute and deliver any and all
such further instruments and documents that may be required by the Exchanges and/or
regulatory authorities or as the Member may deem desirable for the purpose of obtaining
the full benefit of this Agreement and of the rights and powers granted under it.
(b) The Client agrees to immediately notify the Member in writing if there is any
change in the information in the Client registration form provided by the Client
to the Member at the time of opening of the account or at any time thereafter. (c)
In addition to the specific rights set out in this Agreement, the Member and the
Client shall be entitled to exercise any other rights which the Member or the Client
may have under the Rules, Bylaws and Regulations of the exchange and circulars issued
there under or Rules and Regulations of SEBI. (d) Words and expressions which are
used in this Agreement, but which are not defined herein shall, unless the context
requires have the same meaning as assigned thereto in the Rules, Bylaws and Regulations
of the exchange and circulars issued thereunder. (e) The provision of this agreement
shall always be subject to Government notification, any rules, regulations, guidelines
and circulars issued by SEBI and Rules, Regulation and Bye laws of the relevant
stock exchange that may be in force from time to time. IN WITNESS THEREOF, the parties
to the agreement have caused these presents to be ex-ecuted as of the day and year
first above written. Signed and delivered by Signed and Delivered by the Constituent’s
Signature…………………………… Name……………………………………………….. For and on behalf of INDIABULLS SECURITIES
LTD. Name………………………………………………... Signature…………………………………………… Designation …………………………………………
WITNESS WITNESS Name ………………………………………………. Name ……………………………………………. Signature …………………………………………..
Signature ………………………………………. Address ……………………………………………. Address ………………………………………..
RISK DISCLOSURE DOCUMENT FOR CAPITAL MARKET/CASH SEGMENT AND FUTURES & OPTIONS
SEGMENT (TO BE GIVEN BY THE BROKER TO THE CLIENT) This document is issued by the
member of the Bombay Stock Exchange Limited (hereinafter referred to as “BSE”)
which has been formulated by the Exchanges in coordination with the Securities and
Exchange Board of India (hereinafter referred to as “SEBI”) and contains
important information on trading in Equities and F&O Segments of BSE. All prospective
constituents should read this document before trading on Capital Market Cash Segment
or F&O segment of the Exchanges. BSE/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 has BSE/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 contractual relationship into which you are entering and the extent
of your exposure to risk. You must know and appreciate that investment in Equity
shares, derivative or other instruments traded on the Stock 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 BSE and suffer adverse
consequences or loss, you shall be solely responsible for the same and BSE, its
Clearing Corporation/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 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 member. 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
security or derivative being\ traded on BSE. It must be clearly understood by you
that your dealings on BSE through a member shall be subject to your fulfilling certain
formalities set out by the member, which may entirely include your filling the know
your client form, client registration form, execution of an agreement, etc., and
are subject to the Rules, Bylaws and Regulations of BSE and its Clearing Corporation,
guidelines prescribed by SEBI and in force from time to time and Circulars as may
be issued by BSE or its Clearing Corporation/Clearing House and in force from time
to time. BSE 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 trading
member and/or sub-broker of BSE 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/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 or authorize someone to trade for you, you should be aware of or
must get acquainted with the following: -1. BASIC RISKS INVOLVED IN TRADING ON THE
STOCK EXCHANGE (EQUITY AND OTHER INSTRUMENTS) 1.1 Risk of Higher Volatility: Volatility
refers to the dynamic changes in price that securities undergo when trading activity
continues on the Stock Exchange. Generally, higher the volatility of a security/contract,
greater is its price swings. There may be normally greater volatility in thinly
traded securities/contracts than in active securities/ 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 notional or real
losses. 1.2 Risk of Lower Liquidity: Liquidity refers to the ability of market participants
to buy and/or sell securities /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/contracts
swiftly and with minimal price difference, and as a result, investors are more likely
to pay or receive a competitive price for securities/contracts purchased or sold.
There may be a risk of lower liquidity in some securities contracts as compared
to active securities/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. 1.2.1 Buying/selling without intention of giving and/or taking delivery
of a security, as part of a day trading strategy, may also result into losses, because
in such a situation, stocks may have to be sold/ purchased at a low/high prices,
compared to the expected price levels, so as not to have any obligation to deliver/receive
a Security. 1.3 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 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/contracts.
This in turn will hamper better price formation. 1.4 Risk-reducing orders; Most
Exchanges have a facility for investors to place “limit orders”, “stop
loss orders” etc”. The 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. 1.4.1 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 unde
stood that these prices may be significantly different from the last traded price
or the best price in that security. 1.4.2 A “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. A stop loss order is generally placed “away”
from the current price of a stock / contract, and such order gets activated if and
when the stock ^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 stock 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 stock / 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. 1.5 Risk of News Announcements: Issuers make news announcements
that may impact the price of the securities /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
security / contract. 1.6 Risk of Rumors: Rumors about companies at times float in
the market through word of mouth, newspapers, website or news agencies, etc. The
investors should be wary of and should desist from acting on rumors. 1.7 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. 1.7.1 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.
1.7.2 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
due to any action on account of unusual trading activity or stock hitting circuit
filters or for any other reason. 1.8 System/Network Congestion: Trading on BSE is
in electronic mode, based on satellite/leased line based communications, combina-tion
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
order, these represent a risk because of your obligations to settle all executed
transactions. 2. As far as Futures and Options segment Is concerned, please note
and get yourself acquainted with the following additional features:-2.1 Effect of
“Leverage” or “Gearing” The amount of margin is small relative
to the value of the derivatives contract so the transactions are ‘leveraged’
or ’geared’. A derivative 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 derivatives carry a high
degree of risk. You should therefore completely understand the following statements
before actually trading in derivatives trading 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 equivalent to the
principal investment amount in a relatively short period of time. Moreover, the
loss may exceed the original margin amount. a. 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. If the index 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 next day. b. If you fail to deposit the additional margin by the deadline
or if an outstanding debt occurs in your account, the broker/member 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 closeouts. c. 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 liquidity i.e. when
there are insufficient bids or offers or suspension of trading due to price limit
or circuit breakers etc. d. 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 the derivatives
contracts you plan to trade i.e. the contract specifications and the associated
obligations. 2.2 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. 2. The Exchange may impose exercise restrictions and have absolute
authority to restrict the exercise of options at certain times in specified circumstances..2.3
Risks of Option Writers 1. If the price movement of the underlying is not in the
anticipated direction, the option writer runs the risks of losing substantial amount.
2. 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. 3. 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 consid-ered, 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 transac-tions under various market
circumstances. 3. GENERAL 3.1 Commission and overcharges Before you begin to trade,
you should obtain a clear explanation of all commission, fees and other charges
for which you will be liable. These charges will affect your net profit (if any)
or increase your loss. 3.2 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 insolvency or bankruptcy. 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, the same shall be
subject to arbitration as per the bylaws regulations of the Exchange. 3.3 For rights
and obligations of the clients, please refer to Annexure-1 enclosed with this document.
3.4 The term ‘constituent’ shall mean and include a client, a customer
or an investor, who deals with a member for the purpose of acquiring and/or selling
of securities through the mechanism provided by BSE. 3.5 The term ‘member’
shall mean and include a trading member, a broker or a stock broker, who has been
admitted as such by BSE and who holds a registration certificate as a stock broker
from SEBI. I hereby acknowledge that I have received and understood this risk disclosure
statement and Annexure-1 con-taining my rights and obligations. Name Signature Client
- Name & Signature Customer Signature X ...................................................
(If Partner, Corporate, or other Signatory, then attest with company seal.) ...................
................... ................... DD MM YYYY ANNEXURE-1 INVESTORS’ RIGHTS
AND OBLIGATIONS: 1.1 You should familiarize yourself with the protection accorded
to the money or other property you may deposit with your member, particularly in
the event of a default in the stock market or the broking firm’s insolvency
or bankruptcy. 1.1.1 Please ensure that you have a documentary proof of your having
made deposit pf such money or property with the member, stating towards which account
such money or property deposited. 1.1.2 Further, it may be noted that the extent
to which you may recover such money of property may be governed by the Bye-laws
and Regulations of BSE and the scheme of the Investors’ Protection Fund in
force from time to time. 1.3 Any dispute with the member with respect to deposits,
margin money, etc., and producing an appropri-ate proof thereof, shall be subject
to arbitration as per the Rules, Bylaws of BSE or its Clearing Corporation / Clearing
House. 1.2 Before you begin to trade, you should obtain a clear idea from your member
of all brokerage, commissions, fees and other charges which will be levied on you
for trading. These charges will affect your net cash inflow or outflow. 1.3 You
should exercise due diligence and comply with the following requirements of the
BSE and/or SEBI: 1.3.1 Please deal only with and through SEBI registered members
of the Stock Exchange and are enabled to trade on the Exchange. All SEBI registered
members are given a registration no., which may be verified from SEBI. The details
of all members of BSE and whether they are enabled to trade may be verified from
BSE website (http://www.bseindia.com/) 1.3.5 Demand any such information, details
and documents from the member, for the purpose of verification, as you may find
it necessary to satisfy yourself about his credentials. 1.3.3 Furnish all such details
in full as are required by the member as required in “Know Your Client”
form, which may also include details of PAN or Passport or Driving License or Voters
ID, or Ration Card, Bank account and Depository account, or any such details made
mandatory by SEBI/BSE at any time, as is available with the investor. 1.3.4 Execute
a broker-client agreement in the form prescribed by SEBI and/or the Relevant Authority
of BSE or its Clearing Corporation / Clearing House from time to time, because this
may be useful as a proof of your dealing arrangements with the member. 1.3.5 Give
any order for buy or sell of a security in writing or in such form or manner, as
may be mutually agreed. Giving instructions in writing ensures that you have proof
of your intent, in case of disputes with the member. 1.3.6 Ensure that a contract
note is issued to you by the member, which contains minute records of every transaction.
Verify that the contract note contains details of order no., trade number, trade
time, trade price, trade quantity, name of security, client code allotted to you
and showing the brokerage separately. Contract notes are required to be given/sent
by the member to the investors latest on the next working day of the trade. Contract
note can be issued by the member either in electronic form using digital signature
as required, or in hard copy. In case you do not receive a contract note on the
next working day or at a mutually agreed time, please get in touch with the Investors
Grievance Cell of BSE, without delaying. 1.3.7 Facility of Trade Verification is
available on BSE website (http://www.bseindia.com/), where details of trade as mentioned
in the contract note may be verified from the trade date upto five trading days.
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 BSE. 1.3.3 Ensure that payment/delivery of securities against settlement is given
to the concerned member within one working day prior to the date of pay-in announced
by BSE or ifs Clearing Corporation / Clearing House. Payments should be made only
by account payee cheque in favor of the firm/company of the trading member and a
receipt or acknowledgment towards what such payment is made be obtained from the
member. Delivery of securities is made to the pool account of the member rather
than to the beneficiary account of the member. 1.3.9 In case pay-out of money and/or
securities is not received on the next working day after date of pay-out announced
by BSE or its Clearing Corporation/Clearing House, please follow-up with the concerned
member for its release. In case pay-out is not released as above from the member
within five working days, ensure that you lodge a complaint immediately with the
Investors’ Grievance Cell of BSE. 1.3.10 Every member is required to send
a complete ‘Statement of Accounts’, for both funds and securities-settlement
to each of its constituents, at such periodicity as may be prescribed by time to
time. You should report errors, if any, in theStatement immediately, but not later
than 30 calendar days of receipt thereof, to the member. In case the error is not
rectified or there is a dispute, ensure that you refer such matter to the Investors
Grievance Cell of BSE, without delaying. 1.3.11 In case of a complaint against a
member/registered sub-broker, you should address the complaint to the Office as
may be specified by BSE from time to time. 1.4 In case where a member surrenders
his membership, BSE gives a public notice inviting claims, If any, from investors.
In case of a claim, relating to “transactions executed on the trading system”
of BSE, ensure that you lodge a claim with BSE Clearing House within the stipulated
period and with the supporting documents. 1.5 In case, where a member is expelled
from trading membership or declared a defaulter, BSE gives a public notice inviting
claims, if any, from investors. In case of a claim, relating to “transactions
executed on the trading system” of BSE, ensure that you lodge a claim with
BSE within the stipulated period and with the supporting documents. 1.6 Claims against
a defaulter/expelled member found to be valid as prescribed in the relevant Rules/
Bye-laws and the scheme under the Investors’ Protection Fund (IPF) may be
payable first out of the amount vested in the Committee for Settlement of Claims
against Defaulters, on pro-rata basis if the amount is inadequate. The balance amount
of claims, if any, to a maximum amount of Rs.10 lakhs per investor claim, per defaulter/expelled
member may be payable subject to such claims being found payable under the scheme
of the IPF. Notes: 1. The term ‘constituent’ shall mean and include
a client, a customer or an Investor, who deals with a trading member of BSE for
the purpose of acquiring and / for selling of securities through the mechanism provided
by BSE. 2. The term ‘member’ shall mean and include a member or a broker
or a stock broker, who has been admitted as such by BSE and who holds a registration
certificate as a stock broker from SEBI. 3. BSE may be substituted with names of
the relevant exchanges, wherever applicable. Name Signature Client - Name &
Signature Indiabulls Official - Name & Signature Name Address Signature Place
Witness - Name - Address & Signature Name Address Signature Witness - Name -
Address & Signature Name Address Signature Place
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