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Broking Norms

Authorisation For Transactions And Responsibility

  1. The CLIENT agrees to provide and continue to provide all details/ documents about themselves as may be required by the MEMBER for opening account with the MEMBER. The CLIENT agrees to immediately notify the MEMBER in writing of any changes in the information provided by the CLIENT to the MEMBER at the time of opening of the Account or at any other time.
  2. The CLIENT hereby authorise the MEMBER to act as his/ her/ its principal for buying and selling of Securities in the Exchange and the MEMBER's acting on the order, oral or written will be binding on the CLIENT.
  3. The CLIENT agree that the MEMBER shall not be liable or responsible for non execution of orders placed through the trading terminal/ web site or through any other mode due to failure of any system or link or due to any other reason whatsoever. The MEMBER also reserves right of refusing to execute any particular transaction without assigning any reason.
  4. In case of refusal by the Depository Participant to honour any instruction on account of any dues to D. P or lien etc. the resultant loss if any occurred will be recovered from the CLIENT’s account.

Margin

  1. The MEMBER may insist the CLIENT to deposit interest-free margin money as a percentage of the price of securities proposed to be purchased, unless the CLIENT already has an equivalent credit with the MEMBER.
  2. The MEMBER may insist the CLIENT to deposit interest-free margin money as a percentage on the price of securities proposed to be sold, unless the MEMBER has received from the CLIENT the securities in its pool account prior to such sale or has received the securities with valid transfer documents to the MEMBER’s satisfaction prior to such sale.
  3. The CLIENT authorises the MEMBER to set off a part or whole of the Margin i.e by way of appropriation of the relevant amount of cash or by sale or transfer or pledge 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 his obligations.
  4. In case where the payment by the CLIENT towards the margin is made through a Cheque issued in favour of the MEMBER, any trade(s) would be executed by the MEMBER only upon realisation of the funds of the said Cheque or at the discretion of the MEMBER
  5. The CLIENT agrees and authorises the MEMBER to determine the market value of securities placed as Margin. 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.
  6. The MEMBER may at its sole discretion prescribe the payment of margin in the form of cash instead of securities. The CLIENT accepts to comply with the MEMBER’s requirement of payment of Margin, failing which the MEMBER may sell, dispose, transfer or deal in any other manner the securities already placed with it as Margin or square off all or some of the positions of the CLIENT as it deems fit in its discretion without further reference to the CLIENT and any resultant or associated losses that may occur due to such square off/sale shall be borne by the CLIENT, and the MEMBER is hereby fully indemnified and held harmless by the CLIENT in this behalf.
  7. The CLIENT is responsible for all orders, including any orders that may be executed without the required margin in the CLIENT’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 Margin to the CLIENT, instantaneously make up the shortfall either through delivery of shares in the event of a sale or credit the required funds in the bank account via wire or personal cheque, cashier’s cheque or money order or account transfer or any other mode.
  8. 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 the additional Margin.

Brokerage

  1. In consideration of providing brokerage and other services, the CLIENT shall pay brokerage fees and other charges and levies to the MEMBER at rates as may be mutually agreed upon by the parties, in writing or otherwise, from time to time. Statutory charges like Turnover fees, service tax etc. will be extra over and above such rates as may be decided from time to time unless otherwise specified

  1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 01, 2020.
  2. Update your email id and mobile number with your stock broker / depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
  3. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.
  4. Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
  5. Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.
  6. Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: https://www.nseindia.com/invest/about-defaulter-section.
  7. Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ́margin pledge', created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.
  8. Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.
  9. Don't ignore any emails/SMSS received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.
  10. Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.
  11. Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker."

Member having websites have prominently displayed a message on their websites informing their clients to update their Email Ids & Mobile numbers with the member.

Prevent Unauthorized transactions in your account Update your mobile numbers/Email-Ids with your stock-brokers/DP. Receive information of your transactions directly from Exchange/DP on your registered mobile/email for all debit and other important transactions directly from CDSL/Exchanges on the same day ---Issued in the interest of investors.

KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary

No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remain in investor's account