ACCOUNT OPENING KIT ---- INDEX OF DOCUMENTS S.No. Name …

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S.No. Name of the Document Brief Significance of the Document Page No.

MANDATORY DOCUMENTS AS PRESCRIBED BY SEBI & EXCHANGES

1 Account Opening Form A. KYC Form – Document captures 1the basic information about the constituentand an instruction/check listB. Document captures the additionalinformation about the constituentrelevant to trading account and aninstruction/check list.

2 Rights and Obligations Document stating the Rights & Obligations 14of stock broker/trading member, sub-brokerand client for trading on exchanges(including additional rights & obligationsin case of internet/wireless technologybased trading).

3 Risk Disclosure Document (RDD) Document detailing risks associated 19with dealing in the securities market.

4 Guidance note Document detailing do’s and don’ts for 23trading on exchange, for the educationof investors.

5 Policies and Procedures Document describing significant policies 25and procedures of the Stock Broker

6 Tariff Sheet Document detailing the rate/amount 28of brokerage and other charges leviedon the client for trading on thestock exchange(s)

VOLUNTARY DOCUMENTS AS PROVIDED BY THE STOCK BROKER

7 Running Account Authorization For smooth operation of accounts 29

8 Document for Trading For trading on NSE MFSS segment / 30in Mutual Fund BSE star MFSS

ACCOUNT OPENING KIT ---- INDEX OF DOCUMENTS

Name of Stock broker : SHREE KANHA STOCK BROKING PVT. LTD.Sebi Regn. No. CM FO CDSL

N S E INB 231216236 (20/12/2004) INF 231216236 (17/12/2004) IN-DP-CDSL-445-2008 (30/01/2008)B S E INB 011216232 (04/03/2011) INF 011216232 (04/03/2011)

For any grievance/dispute please contact Shree Kanha Stock Broking Pvt Ltd on above address oremail id [email protected] / [email protected] and Phone no.:079-26464548.In case not satisfied with the response, please contact the concerned exchange(s) atBombay Stock Exchange : Investor Services Email Id: [email protected] , Tel. : 022-22728097.National Stock Exchange : Investor Grievance cell/Arbitration: [email protected] Tel. : 022-26598190

MD Details : Name : DUSHYANT M. SHAHPhone No.: 079 - 2646 0775Email Id : [email protected] / [email protected]

Compliance Officer Name : Lalit V. Agrawal (NSE)Compliance Officer Name : Saloni D. Shah (BSE)Phone No.: 079 - 2646 0775Email Id : [email protected] /

[email protected]

Registered and Correspondence Off ice Address :

406, Shail, Opp. Navrangpura Tel. Exchange,Nr. Madhusudan House,Ahmedabad - 380009.Phone Nos.: 079 - 26464548 / 49Fax No. : 079 - 30023551Website : www.shreekanha.com

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Dear Sir,

We request you to register me / us as your client and in this regard the following information is furnished :

A. IDENTITY DETAILS

Regd. Office : 406, Shail, Opp. Navrangpura Tel. Exchange,Nr. Madhusudan House, Ahmedabad - 380 009 • Ph.: 079-26464548 / 49

Please sign across thephotograph

INDIVIDUAL CLIENT REGISTRATION APPLICATION FORM - NSE/BSE

X

1. Name of the Applicant :

2. Father’s / Spouse Name :

3. a. Gender : Male / Female b. Marital Status: Single / Married

c. Date of birth: _____________ (dd/mm/yyyy)

4. a. Nationality :

b. Status : Resident Individual / Non-Resident / Foreign National

5. a. PAN :

b. Unique Identification Number (UID) / Aadhaar, if any :

6. Specify the proof of identity submitted :

B. ADDRESS DETAILS

1. Address for Correspondence: ____________________________________________________

________________________________________________________________________________

City / town / Village : ______________________________ Pin Code : _______________________

State : _____________________ Country: _____________________________________________

2. Contact Details: Tel.(Off.)______________ Tel.(Res.)______________ Fax No.:_____________

Mobile No:______________________ Email Id:__________________________________________

3. Specify the proof of address submitted for correspondence address : _____________________

4. Permanent Address (if different from above or overseas address, mandatory for Non-Resident

Applicant) : ______________________________________________________________________

________________________________________________________________________________


State : _____________________ Country: _____________________________________________

5. Specify the proof of address submitted for permanent address __________________________

Where truth and trust

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2. Occupation (please tick any one and give brief details :

Private Sector Public Sector Government Service Business Professional

Agriculturist Retired House Wife Student Others

3. Please tick if applicable : Politically Exposed Person (PEP) / Related to a Politically Exposed

Person (PEP)

4. Any Other Information : ___________________________________________________________

1. Gross Annual Income details (please specify) : Income Range (Per Annum) : (Tick where applicable)

Below Rs. 1,00,000 Rs. 1,00,000 To Rs. 5,00,000

Rs. 5,00,000 To Rs. 10,00,000 Rs. 10,00,000 To Rs. 25,00,000 Above Rs.25,00,000

Net Worth as on (date) ____________ (DD/MM/YYYY) : (Net Worth should not be older than 1 year)

C. OTHER DETAILS

Declaration

I hereby declare that the details furnished above are true and correct to the best of my knowledge and

belief and I undertake to inform you of any changes therein, immediately. In case any of the above

information is found to be false or untrue or misleading or misrepresenting, I am aware that I may be

held liable for it.

Date: ____________________________

(Signature of the Applicant)

X

FOR OFFICE USE ONLY

� (Original verified) True copies of documents received

� (Self-Attested) Self Certified Document copies received

(__________________________________)Signature of the Authorised Signatory Seal / Stamp of the Intermediary

Date : _____________________


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Dear Sir,

We request you to register me / us as your client and in this regard the following information is furnished :

A. IDENTITY DETAILS

NON - INDIVIDUAL CLIENT REGISTRATION APPLICATION FORM - NSE/BSE

1. Name of the Applicant :

2. Date of Incorporation : __________________ (dd/mm/yyyy) Place of Incoration : ____________

3. Date of Commencement of Burisness : _________________________________ (dd/mm/yyyy)

5. a. PAN :

b. Registration No. (e.g. CIN) :

6. Status : (please tick any one) :

Private Limited Co. / Public Ltd. Co. / Body Corporate / Partnership / Trust / Charities / NGO’s

/ FI / FII / HUF / AOP / Bank / Government Body / Non-Government Organization / Defense

Establishment / BOI / Society / LLP / Others (please specify) ______________________________

B. ADDRESS DETAILS

1. Address for Correspondence: ____________________________________________________

________________________________________________________________________________


State : _____________________ Country: _____________________________________________

2. Contact Details: Tel.(Off.)______________ Tel.(Res.)______________ Fax No.:_____________

Mobile No:______________________ Email Id:__________________________________________

3. Specify the proof of address submitted for correspondence address : _____________________

4. Registered Address (if different from above or overseas address, mandatory for Non-Resident

Applicant) : ______________________________________________________________________

________________________________________________________________________________


State : _____________________ Country: _____________________________________________

5. Specify the proof of address submitted for permanent address __________________________

Regd. Office : 406, Shail, Opp. Navrangpura Tel. Exchange,Nr. Madhusudan House, Ahmedabad - 380 009 • Ph.: 079-26464548 / 49


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1. Gross Annual Income details (please specify) : Income Range (Per Annum) : (Tick where applicable)

Below Rs. 1,00,000 Rs. 1,00,000 To Rs. 5,00,000

Rs. 5,00,000 To Rs. 10,00,000 Rs. 10,00,000 To Rs. 25,00,000

Rs. 25,00,000 Rs.1 Crore > 1 Crore

2. Net Worth as on (date) ____________ (DD/MM/YYYY) : (* Net Worth should not be older than 1 year)

3. Details of Promoters / Partners / Karta / Trustees and Whole Time Directors :

C. OTHER DETAILS

Name :

PAN :

Residential Address :

Name :

PAN :


Name :

PAN :


Name :

PAN :



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� (Original verified) True copies of documents received

� (Self-Attested) Self Certified Document copies received

(__________________________________)Signature of the Authorised Signatory Seal / Stamp of the Intermediary

Date : _____________________

FOR OFFICE USE ONLY

4. DIN / UID of Promoters / Partners / Karta and whole time directors:

Name DIN/UID of Promoters/Partners/Karta and whole time directors

5. Please tick, if applicable, for any of your authorized signatories / Promoters / Partners / Karta /

Trustees / whole time directors: Politically Exposed Person (PEP) / Related to a Politically Exposed

Person (PEP)

6. Any Other Information ___________________________________________________________

Declaration

I hereby declare that the details furnished above are true and correct to the best of my knowledge and

belief and I undertake to inform you of any changes therein, immediately. In case any of the above

information is found to be false or untrue or misleading or misrepresenting, I am aware that I may be

held liable for it.

Date: ____________________________

(Signature of the Applicant)

X


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INSTRUCTIONS / CHECK LIST FOR FILLING KYC FORM

A. IMPORTANT POINTS:

1. Self attested copy of PAN card is manda-tory for all clients, including Promoters/Partners/Karta/Trustees and whole timedirectors and persons authorized to dealin securities on behalf of company/firm/others.

2. Copies of all the documents submitted bythe applicant should be self-attested andaccompanied by originals for verification.In case the original of any document isnot produced for verification, then thecopies should be properly attested byentities authorized for attesting the docu-ments, as per the below mentioned list.

3. If any proof of identity or address is in aforeign language, then translation intoEnglish is required.

4. Name & address of the applicant mentionedon the KYC form, should match with thedocumentary proof submitted.

5. If correspondence & permanent addressare different, then proofs for both haveto be submitted.

6. Sole proprietor must make the applicationin his individual name & capacity.

7. For non-residents and foreign nationals,(allowed to trade subject to RBI and FEMAguidelines), copy of passport/PIO Card/OCICard and overseas address proof is man-datory.

8. For foreign entities, CIN is optional; andin the absence of DIN no. for the direc-tors, their passport copy should be given.

9. In case of Merchant Navy NRI’s, Mariner’sdeclaration or certified copy of CDC (Con-tinuous Discharge Certificate) is to besubmitted.

10. For opening an account with Depositoryparticipant or Mutual Fund, for a minor,photocopy of the School Leaving Certifi-cate/Mark sheet issued by Higher Second-ary Board/Passport of Minor/Birth Certifi-cate must be provided.

11. Politically Exposed Persons (PEP) aredefined as individuals who are or havebeen entrusted with prominent public func-tions in a foreign country, e.g., Heads ofStates or of Governments, senior politicians,senior Government/judicial/ military offic-ers, senior executives of state owned cor-porations, important political party officials,etc.

B. Proof of Identity (POI): - List of documents ad-missible as Proof of Identity:

1. Unique Identification Number (UID)(Aadhaar)/ Passport/ Voter ID card/ Driv-ing license.

2. PAN card with photograph.

3. Identity card/ document with applicant’sPhoto, issued by any of the following:Central/State Government and its Depart-ments, Statutory/Regulatory Authorities,Public Sector Undertakings, ScheduledCommercial Banks, Public Financial Insti-tutions, Colleges affiliated to Universities,Professional Bodies such as ICAI, ICWAI,ICSI, Bar Council etc., to their Members;and Credit cards/Debit cards issued byBanks.

C. Proof of Address (POA): - List of documentsadmissible as Proof of Address:

(*Documents having an expiry date should bevalid on the date of submission.)

1. Passport/ Voters Identity Card/ Ration Card/Registered Lease or Sale Agreement ofResidence/ Driving License/ Flat Main-tenance bill/ Insurance Copy.

2. Utility bills like Telephone Bill (only landline), Electricity bill or Gas bill - Not morethan 3 months old.

3. Bank Account Statement/Passbook — Notmore than 3 months old.

4. Self-declaration by High Court and SupremeCourt judges, giving the new address inrespect of their own accounts.

5. Proof of address issued by any of the fol-lowing: Bank Managers of Scheduled Com-


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mercial Banks/Scheduled Co-OperativeBank/Multinational Foreign Banks/GazettedOfficer/Notary public/Elected representativesto the Legislative Assembly/Parliament/Documents issued by any Govt. or Statu-tory Authority.

6. Identity card/document with address, is-sued by any of the following: Central/StateGovernment and its Departments, Statu-tory/Regulatory Authorities, Public SectorUndertakings, Scheduled CommercialBanks, Public Financial Institutions, Col-leges affiliated to Universities and Profes-sional Bodies such as ICAI, ICWAI, ICSI,Bar Council etc., to their Members.

7. For FII/sub account, Power of Attorney givenby FII/sub-account to the Custodians(which are duly notarized and/or apostiledor consularised) that gives the registeredaddress should be taken.

8. The proof of address in the name of thespouse may be accepted.

D. Exemptions/clarifications to PAN

(*Sufficient documentary evidence in support ofsuch claims to be collected.)

1. In case of transactions undertaken onbehalf of Central Government and/or StateGovernment and by officials appointed byCourts e.g. Official liquidator, Court receiveretc.

2. Investors residing in the state of Sikkim.

3. UN entities/multilateral agencies exemptfrom paying taxes/fil ing tax returns inIndia.

4. SIP of Mutual Funds upto Rs 50, 000/-p.a.

5. In case of institutional clients, namely, FIIs,MFs, VCFs, FVCIs, Scheduled CommercialBanks, Multilateral and Bilateral Develop-ment Financial Institutions, State IndustrialDevelopment Corporations, InsuranceCompanies registered with IRDA and PublicFinancial Institution as defined under sec-tion 4A of the Companies Act, 1956, Cus-todians shall verify the PAN card detailswith the original PAN card and provide dulycertified copies of such verified PAN de-tails to the intermediary.

E. List of people authorized to attest the documents:

1. Notary Public, Gazetted Officer, Managerof a Scheduled Commercial/ Co-operativeBank or Multinational Foreign Banks (Name,Designation & Seal should be affixed onthe copy).

2. In case of NRIs, authorized officials ofoverseas branches of Scheduled Commer-cial Banks registered in India, Notary Pub-lic, Court Magistrate, Judge, Indian Em-bassy /Consulate General in the countrywhere the client resides are permitted toattest the documents.


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F. In case of Non-Individuals, additional documents to be obtained from non-individuals, over & above the POI & POA, as mentioned below :

Types of Entity & Documentary requirements

Corporate• Copy of the balance sheets for the last 2 financial years (to be submitted every year)• Copy of latest share holding pattern including list of all those holding control, either directly or

indirectly, in the company in terms of SEBI takeover Regulations, duly certified by the companysecretary/Whole time director/MD (to be submitted)

• Photograph, POI, POA, PAN and DIN numbers of whole time directors/two directors in charge ofday to day operations.

• Photograph, POI, POA, PAN of individual promoters holding control – either directly or indirectly.• Copies of the Memorandum and Articles of Association and certificate of incorporation.• Copy of the Board Resolution for investment in securities market.• Authorised signatories list with specimen signatories.

Partnership• Copy of the balance sheets for the last 2 financial years (to be submitted every year)• Certificate of registration (for registered partnership firms only).• Copy of partnership deed• Authorised signatories list with specimen signatures.• Photograph, POI, POA, PAN of Partners.

Trust• Copy of the balance sheets for the last 2 financial years (to be submitted every year)• Certificate of registration (for registered trust only)• Copy of Trust Deed• List of Trustees certified by managing trustees / CA• Photograph, POI, POA, PAN of Trustees

HUF• PAN of HUF• Deed of Declaration of HUF/ List of coparceners• Bank pass-book/ bank statement in the name of HUF• Photograph, POI, POA, PAN of Karta

Unincorporated association or a body of individuals• Proof of Existence/ Constitution document.• Resolution of the managing body & Power of Attorney granted to transact business on its behalf.• Authorized signatories list with specimen signatures.

Banks/Institutional Investors• Copy of the constitution/registration or annual report/balance sheet for last 2 financial years.• Authorized signatories list with specimen signatures.

Foreign Institutional Investors (FII)• Coy of SEBI registration certificate• Authorized signatories list with specimen signatures

Army/ Government Bodies• Self-certification on letterhead• Authorized signatories list with specimen signatures

Registered Society• Copy of Registration Certificate under Societies Registration Act• List of Managing Committee members.• Committee resolution for persons authorised to act as authorised signatories with specimen

signatures.• True copy of Society Rules and Bye Laws certified by the Chairman / Secretary


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Annexure – 3

TRADING ACCOUNT RELATED DETAILS

For Individuals and Non-Individuals

C. TRADING PREFERENCES

*Please sign in the relevant boxes where you wish to trade. The segment not chosen shouldbe struck off by the client.

B. DEPOSITORY ACCOUNT(S) DETAILS

Depository Participant Name __________________________ Depository Name (NSDL / CDSL)

Beneficiary name : ______________________________________________________________

DP ID : ______________________ Beneficiary ID : ______________________

A. BANK ACCOUNT(S) DETAILS

Bank Name : ______________________________ Bank Account no. _____________________

Branch address : ________________________________________________________________

Account Type: Saving / Current / Others-In case of NRI/NRE/NRO

MICR Number : ________________________ IFSC Code : _____________________________

# if, in future, the client wants to trade on any new segment/new exchange, separate authorisation/letter should be taken from the client by the stock broker.

Exchanges Segments

National Stock Cash Name of other Segments, if any

Exchange of India Limited

F&O Currency Derivatives

Bombay Stock Exchange Limited Cash F&O

D. PAST ACTIONS

• Details of any action/proceedings initiated/pending/ taken by SEBI/ Stock exchange/any otherauthority against the applicant/constituent or its Partners/promoters/whole time directors/autho-rized persons in charge of dealing in securities during the last 3 years : __________________

X X

X X

X X


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F. ADDITIONAL DETAILS

• Whether you wish to receive physical contract note or Electronic Contract Note (ECN)

(please specify) _________________________________________________________________

Specify your Email id, if applicable: _________________________________________________

• Whether you wish to avail of the facility of internet trading/ wireless technology

(please specify) : ______________________________________________________________

• Number of years of Investment/Trading Experience : __________________________________

• In case of non-individuals, name, designation, PAN, UID, signature, residential address and

phtographs of persons authorized to deal in securities on behalf of company/firm/others :

_____________________________________________________________________________

• Any other information : __________________________________________________________

E. DEALINGS THROUGH SUB-BROKERS AND OTHER STOCK BROKERS

• In case client is dealing through the sub-broker, provide the following details :

Sub-broker’s Name :______________________ SEBI Registration number : _______________

Registered office address : _______________________________________________________

______________________________________________________________________________

Ph : ________________ Fax : ________________ Website : ___________________________

• Whether dealing with any other stock broker/sub-broker (if case dealing with multiple stock

brokers/sub-brokers, provide details of all)

Name of stock broker :__________________ Name of Sub-Broker, if any:__________________

Client Code: ___________________ Exchange : ______________________________________

Details of disputes/dues pending from/to such stock broker/sub- broker : __________________

________________________________________________________________________________

G. INTRODUCER DETAILS (optional)

Name of the Introducer : _________________________________________________________

(Surname) (Name) (Middle Name)

Status of the Introducer : Sub-broker/Remisier/Authorized Person/Existing Client / Others,

please specify ____________________

Address and phone no. of the Introducer : ___________________________________________

Signature of the Introducer : ______________________________________________________


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DECLARATION

1. I/We hereby declare that the details furnished above are true and correct to the best of my/our knowledge and belief and I/we undertake to inform you of any changes therein, immediately.In case any of the above information is found to be false or untrue or misleading or misrepre-senting, I am/we are aware that I/we may be held liable for it.

2. I/We confirm having read/been explained and understood the contents of the document onpolicy and procedures of the stock broker and the tariff sheet.

3. I/We further confirm having read and understood the contents of the ‘Rights and Obligations’document(s) and ‘Risk Disclosure Document’. I/We do hereby agree to be bound by such provi-sions as outlined in these documents. I/We have also been informed that the standard set ofdocuments has been displayed for Information on stock broker’s designated website, if any.

Place : __________________________ _______________________________________

_______________________________________

Date : ___________________________ _______________________________________

Signature of Client/ (all) Authorized Signatory (ies)

WITNESSES (Only applicable in case the account holder has made nomination)

Name_________________________________ Name __________________________________

Signature _____________________________ Signature _______________________________

Address ______________________________ Address ________________________________

_____________________________________ _______________________________________

_____________________________________ _______________________________________

H. NOMINATION DETAILS (for individuals only)

I/We wish to nominate I/We do not wish to nominate

Name of the Nominee: ______________________________________________________________

Relationship with the Nominee : ______________________________________________________

PAN of Nominee : __________________________________________________________________

Date of Birth of Nominee : _____________________________________________________________

Address and phone no. of the Nomineeee : _______________________________________________

If Nominee is a minor, details of guardian :

Name of guardian : _________________________________________________________________

Address and phone no. of Guardian : ____________________________________________________

Signature of guardian : ______________________________________________________________

X


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INSTRUCTIONS / CHECK LIST

1. Additional documents in case of trading in derivatives segments – illustrative list• Copy of ITR Acknowledgment• Copy of Annual Accounts• In case of salary income – Salary Slip, Copy of Form 16 • Net Worth Certificate• Copy of demat account holding statement• Bank account statement for last 6 months• Any other relevant documents substantiating ownership of assets• Self declaration with relevant supporting documents

*In respect of other clients, documents as per risk management policy of the stock broker need tobe provided by the client from time to time.2. Copy of cancelled cheque leaf/ pass book/bank statement specifying name of the constituent,

MICR Code or/and IFSC Code of the bank should be submitted.3. Demat master or recent holding statement issued by DP bearing name of the client.4. For individuals:

a. Stock broker has an option of doing ‘in-person’ verification through web camera at the branchoffice of the stock broker/sub-broker’s office.

b. In case of non-resident clients, employees at the stock broker’s local office, overseas can doin-person’ verification.Further, considering the infeasibility of carrying out ‘In-person’ verification of the non-residentclients by the stock broker’s staff, attestation of KYC documents by Notary Public, Court,Magistrate, Judge, Local Banker, Indian Embassy / Consulate General in the country wherethe client resides may be permitted.

5. For non-individuals:a. Form need to be initialized by all the authorized signatories.b. Copy of Board Resolution or declaration (on the letterhead) naming the persons authorized to

deal in securities on behalf of company/firm/others and their specimen signatures.

FOR OFFICE USE ONLY

UCC Code allotted to Client: ___________________________

Documents verified Client Interviewed By In-Person Verifica-with Originals tion done by

Name of the Employee

Employee Code

Designation of the employee

Date

Signature

I / We undertake that we have made the client aware of ‘Policy and Procedures’, tariff sheet and allthe non-mandatory documents. I/We have also made the client aware of ‘Rights and Obligations’document (s), RDD and Guidance Note. I/We have given/sent him a copy of all the KYC documents.I/We undertake that any change in the ‘Policy and Procedures’, tariff sheet and all the non-manda-tory documents would be duly intimated to the clients. I/We also undertake that any change in the‘Rights and Obligations’ and RDD would be made available on my/our website, if any, for the infor-mation of the clients.

__________________________Signature of Authorised Signatory Seal/Stamp of the Stock Broker

Date:.............................................


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Annexure – 4

RIGHTS AND OBLIGATIONS OF STOCK BROKERS, SUB-BROKERS AND CLIENTSas prescribed by SEBI and Stock Exchanges

1. The client shall invest/trade in those securi-ties/contracts/other instruments admitted todealings on the Exchanges as defined inthe Rules, Byelaws and Regulations of Ex-changes/ Securities and Exchange Board ofIndia (SEBI) and circulars/notices issuedthere under from time to time.

2. The stock broker, sub-broker and the clientshall be bound by all the Rules, Byelawsand Regulations of the Exchange andcirculars/notices issued there under andRules and Regulations of SEBI and relevantnotifications of Government authorities asmay be in force from time to time.

3. The client shall satisfy itself of the capacityof the stock broker to deal in securities and/or deal in derivatives contracts and wishesto execute its orders through the stock brokerand the client shall from time to time con-tinue to satisfy itself of such capability ofthe stock broker before executing ordersthrough the stock broker.

4. The stock broker shall continuously satisfy itselfabout the genuineness and financial sound-ness of the client and investment objectivesrelevant to the services to be provided.

5. The stock broker shall take steps to makethe client aware of the precise nature ofthe Stock broker’s liability for business tobe conducted, including any limitations, theliability and the capacity in which the stockbroker acts.

6. The sub-broker shall provide necessary as-sistance and co-operate with the stock bro-ker in all its dealings with the client(s).

CLIENT INFORMATION

7. The client shall furnish all such details in fullas are required by the stock broker in “Ac-count Opening Form” with supporting de-tails, made mandatory by stock exchanges/SEBI from time to time.

8. The client shall familiarize himself with all themandatory provisions in the Account Open-ing documents. Any additional clauses or

documents specified by the stock broker shallbe non-mandatory, as per terms & condi-tions accepted by the client.

9. The client shall immediately notify the stockbroker in writing if there is any change inthe information in the ‘account opening form’as provided at the time of account openingand thereafter; including the information onwinding up petition/insolvency petition or anylitigation which may have material bearingon his capacity. The client shall provide /update the financial information to the stockbroker on a periodic basis.

10. The stock broker and sub-broker shall main-tain all the details of the client as mentionedin the account opening form or any otherinformation pertaining to the client, confiden-tially and that they shall not disclose thesame to any person/ authority except asrequired under any law/regulatory require-ments. Provided however that the stock bro-ker may so disclose information about hisclient to any person or authority with theexpress permission of the client.

MARGINS

11. The client shall pay applicable initial mar-gins, withholding margins, special marginsor such other margins as are considerednecessary by the stock broker or the Ex-change or as may be directed by SEBI fromtime to time as applicable to the segment(s)in which the client trades. The stock brokeris permitted in its sole and absolute discre-tion to collect additional margins (even thoughnot required by the Exchange, ClearingHouse/Clearing Corporation or SEBI) and theclient shall be obliged to pay such marginswithin the stipulated time.

12. The client understands that payment of mar-gins by the client does not necessarily im-ply complete satisfaction of all dues. In spiteof consistently having paid margins, the cli-ent may, on the settlement of its trade, beobliged to pay (or entitled to receive) suchfurther sums as the contract may dictate/require.


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TRANSACTIONS AND SETTLEMENTS

13. The client shall give any order for buy orsell of a security/derivatives contract in writingor in such form or manner, as may be mu-tually agreed between the client and thestock broker. The stock broker shall ensureto place orders and execute the trades ofthe client, only in the Unique Client Codeassigned to that client.

14. The stock broker shall inform the client andkeep him apprised about trading/settlementcycles, delivery/payment schedules, anychanges therein from time to time, and itshall be the responsibility in turn of the cli-ent to comply with such schedules/proce-dures of the relevant stock exchange wherethe trade is executed.

15. The stock broker shall ensure that the money/securities deposited by the client shall bekept in a separate account, distinct from his/its own account or account of any other clientand shall not be used by the stock brokerfor himself/itself or for any other client orfor any purpose other than the purposesmentioned in Rules, Regulations, circulars,notices, guidelines of SEBI and/or Rules,Regulations, Bye-laws, circulars and noticesof Exchange.

16. Where the Exchange(s) cancels trade(s) suomoto all such trades including the trade/sdone on behalf of the client shall ipso factostand cancelled, stock broker shall be en-titled to cancel the respective contract(s) withclient(s).

17. The transactions executed on the Exchangeare subject to Rules, Byelaws and Regula-tions and circulars/notices issued thereun-der of the Exchanges where the trade isexecuted and all parties to such trade shallhave submitted to the jurisdiction of suchcourt as may be specified by the Byelawsand Regulations of the Exchanges wherethe trade is executed for the purpose ofgiving effect to the provisions of the Rules,Byelaws and Regulations of the Exchangesand the circulars/notices issued thereunder.

BROKERAGE

18. The Client shall pay to the stock broker bro-kerage and statutory levies as are prevail-ing from time to time and as they apply to

the Client’s account, transactions and to theservices that stock broker renders to theClient. The stock broker shall not chargebrokerage more than the maximum broker-age permissible as per the rules, regula-tions and bye-laws of the relevant stockexchanges and/or rules and regulations ofSEBI.

LIQUIDATION AND CLOSE OUT OF POSITION

19. Without prejudice to the stock broker’s otherrights (including the right to refer a matterto arbitration), the client understands thatthe stock broker shall be entitled to liqui-date/close out all or any of the client’s po-sitions for non-payment of margins or otheramounts, outstanding debts, etc. and ad-just the proceeds of such liquidation/closeout, if any, against the client’s liabilities/ob-ligations. Any and all losses and financialcharges on account of such liquidation/clos-ing-out shall be charged to and borne bythe client.

20. In the event of death or insolvency of theclient or his/its otherwise becoming incapableof receiving and paying for or delivering ortransferring securities which the client hasordered to be bought or sold, stock brokermay close out the transaction of the clientand claim losses, if any, against the estateof the client. The client or his nominees, suc-cessors, heirs and assignee shall be en-titled to any surplus which may result therefrom. The client shall note that transfer offunds/securities in favor of a Nominee shallbe valid discharge by the stock brokeragainst the legal heir.

21. The stock broker shall bring to the notice ofthe relevant Exchange the information aboutdefault in payment/delivery and related as-pects by a client. In case where defaultingclient is a entity/partnership/proprietary firmor any other artificial legal entity, then thename(s) of Director(s)/Promoter(s)/Partner(s)/Proprietor as the case may be, shall alsobe communicated by the stock broker to therelevant Exchange(s).

DISPUTE RESOLUTION

22. The stock broker shall provide the client withthe relevant contact details of the concernedExchanges and SEBI.


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23. The stock broker shall co-operate in redress-ing grievances of the client in respect of alltransactions routed through it and in removingobjections for bad delivery of shares, recti-fication of bad delivery, etc.

24. The client and the stock broker shall referany claims and/or disputes with respect todeposits, margin money, etc., to arbitrationas per the Rules, Byelaws and Regulationsof the Exchanges where the trade is ex-ecuted and circulars/notices issued there-under as may be in force from time to time.

25. The stock broker shall ensure faster settle-ment of any arbitration proceedings arisingout of the transactions entered into betweenhim vis-à-vis the client and he shall be li-able to implement the arbitration awardsmade in such proceedings.

26. The client/stock-broker understands that theinstructions issued by an authorized repre-sentative for dispute resolution, if any, ofthe client/stock-broker shall be binding onthe client/stock-broker in accordance with theletter authorizing the said representative todeal on behalf of the said client/stock-bro-ker.

TERMINATION OF RELATIONSHIP

27. This relationship between the stock brokerand the client shall be terminated; if the stockbroker for any reason ceases to be a mem-ber of the stock exchange including cessa-tion of membership by reason of the stockbroker’s default, death, resignation or ex-pulsion or if the certificate is cancelled bythe Board.

28. The stock broker, sub-broker and the clientshall be entitled to terminate the relation-ship between them without giving any rea-sons to the other party, after giving noticein writing of not less than one month to theother parties. Notwithstanding any such ter-mination, all rights, liabilities and obligationsof the parties arising out of or in respect oftransactions entered into prior to the termi-nation of this relationship shall continue tosubsist and vest in/be binding on the re-spective parties or his/its respective heirs,executors, administrators, legal representa-tives or successors, as the case may be.

29. In the event of demise/insolvency of the sub-broker or the cancellation of his/its regis-tration with the Board or/ withdrawal of rec-ognition of the sub-broker by the stock ex-change and/or termination of the agreementwith the sub broker by the stock broker, forany reason whatsoever, the client shall beinformed of such termination and the clientshall be deemed to be the direct client ofthe stock broker and all clauses in the ‘Rightsand Obligations’ document(s) governing thestock broker, sub-broker and client shallcontinue to be in force as it is, unless theclient intimates to the stock broker his/itsintention to terminate their relationship bygiving a notice in writing of not less thanone month.

ADDITIONAL RIGHTS AND OBLIGATIONS

30. The stock broker shall ensure due protec-tion to the client regarding client’s rights todividends, rights or bonus shares, etc. inrespect of transactions routed through it andit shall not do anything which is likely toharm the interest of the client with whomand for whom they may have had transac-tions in securities.

31. The stock broker and client shall reconcileand settle their accounts from time to timeas per the Rules, Regulations, Bye Laws,Circulars, Notices and Guidelines issued bySEBI and the relevant Exchanges where thetrade is executed.

32. The stock broker shall issue a contract noteto his constituents for trades executed insuch format as may be prescribed by theExchange from time to time containingrecords of all transactions including detailsof order number, trade number, trade time,trade price, trade quantity, details of thederivatives contract, client code, brokerage,all charges levied etc. and with all otherrelevant details as required therein to befilled in and issued in such manner andwithin such time as prescribed by the Ex-change. The stock broker shall send con-tract notes to the investors within one work-ing day of the execution of the trades inhard copy and/or in electronic form usingdigital signature.

33. The stock broker shall make pay out of funds


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or delivery of securities, as the case maybe, to the Client within one working day ofreceipt of the payout from the relevant Ex-change where the trade is executed unlessotherwise specified by the client and sub-ject to such terms and conditions as maybe prescribed by the relevant Exchange fromtime to time where the trade is executed.

34. The stock broker shall send a complete‘Statement of Accounts’ for both funds andsecurities in respect of each of its clientsin such periodicity and format within suchtime, as may be prescribed by the relevantExchange, from time to time, where the tradeis executed. The Statement shall also statethat the client shall report errors, if any, inthe Statement within such time as may beprescribed by the relevant Exchange fromtime to time where the trade was executed,from the receipt thereof to the Stock bro-ker.

35. The stock broker shall send daily marginstatements to the clients. Daily Margin state-ment should include, inter-alia, details of col-lateral deposited, collateral utilized and col-lateral status (available balance/due from cli-ent) with break up in terms of cash, FixedDeposit Receipts (FDRs), Bank Guaranteeand securities.

36. The Client shall ensure that it has the re-quired legal capacity to, and is authorizedto, enter into the relationship with stockbroker and is capable of performing hisobligations and undertakings hereunder. Allactions required to be taken to ensure com-pliance of all the transactions, which theClient may enter into shall be completed bythe Client prior to such transaction beingentered into.

ELECTRONIC CONTRACT NOTES (ECN)

37. In case, client opts to receive the contractnote in electronic form, he shall provide anappropriate e-mail id to the stock broker.The client shall communicate to the stockbroker any change in the email-id througha physical letter. If the client has opted forinternet trading, the request for change ofemail id may be made through the securedaccess by way of client specific user id andpassword.

38. The stock broker shall ensure that all ECNssent through the e-mail shall be digitallysigned, encrypted, non-tamper able and incompliance with the provisions of the IT Act,2000. In case, ECN is sent through e-mailas an attachment, the attached file shall alsobe secured with the digital signature, en-crypted and non-tamperable.

39. The client shall note that non-receipt ofbounced mail notification by the stock bro-ker shall amount to delivery of the contractnote at the e-mail ID of the client.

40. The stock broker shall retain ECN andacknowledgement of the e-mail in a soft andnon-tamperable form in the manner pre-scribed by the exchange in compliance withthe provisions of the IT Act, 2000 and asper the extant rules/regulations/circulars/guidelines issued by SEBI/Stock Exchangesfrom time to time. The proof of delivery i.e.,log report generated by the system at thetime of sending the contract notes shall bemaintained by the stock broker for the speci-fied period under the extant regulations ofSEBI/stock exchanges. The log report shallprovide the details of the contract notes thatare not delivered to the client/e-mails re-jected or bounced back. The stock brokershall take all possible steps to ensure re-ceipt of notification of bounced mails by himat all times within the stipulated time periodunder the extant regulations of SEBI/stockexchanges.

41. The stock broker shall continue to send con-tract notes in the physical mode to such cli-ents who do not opt to receive the con-tract notes in the electronic form. Whereverthe ECNs have not been delivered to theclient or has been rejected (bouncing ofmails) by the e-mail ID of the client, the stockbroker shall send a physical contract noteto the client within the stipulated time un-der the extant regulations of SEBI/stockexchanges and maintain the proof of deliv-ery of such physical contract notes.

42. In addition to the e-mail communication ofthe ECNs to the client, the stock broker shallsimultaneously publish the ECN on his des-ignated web-site, if any, in a secured wayand enable relevant access to the clients


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and for this purpose, shall allot a uniqueuser name and password to the client, withan option to the client to save the contractnote electronically and/or take a print outof the same.

LAW AND JURISDICTION

43. In addition to the specific rights set out inthis document, the stock broker, sub-bro-ker and the client shall be entitled to exer-cise any other rights which the stock bro-ker or the client may have under the Rules,Bye-laws and Regulations of the Exchangesin which the client chooses to trade andcirculars/notices issued thereunder or Rulesand Regulations of SEBI.

44. The provisions of this document shall alwaysbe subject to Government notifications, anyrules, regulations, guidelines and circulars/notices issued by SEBI and Rules, Regula-tions and Bye laws of the relevant stock ex-changes, where the trade is executed, thatmay be in force from time to time.

45. The stock broker and the client shall abideby any award passed by the Arbitrator(s)under the Arbitration and Conciliation Act,1996. However, there is also a provision ofappeal within the stock exchanges, if eitherparty is not satisfied with the arbitrationaward.

46. Words and expressions which are used inthis document but which are not definedherein shall, unless the context otherwiserequires, have the same meaning as as-signed thereto in the Rules, Byelaws andRegulations and circulars/notices issuedthereunder of the Exchanges/SEBI.

47. All additional voluntary clauses/documentadded by the stock broker should not be incontravention with rules/regulations/notices/circulars of Exchanges/SEBI. Any changesin such voluntary clauses/document(s) needto be preceded by a notice of 15 days. Anychanges in the rights and obligations whichare specified by Exchanges/SEBI shall alsobe brought to the notice of the clients.

48. If the rights and obligations of the partieshereto are altered by virtue of change inRules and regulations of SEBI or Bye-laws,Rules and Regulations of the relevant stockExchanges where the trade is executed, suchchanges shall be deemed to have been in-corporated herein in modification of the rightsand obligations of the parties mentioned inthis document.

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INTERNET & WIRELESS TECHNOLOGY BASED TRADING FACILITY PROVIDED BYSTOCK BROKERS TO CLIENT

(All the clauses mentioned in the ‘Rights and Obligations’ document(s) shall beapplicable. Additionally, the clauses mentioned herein shall also be applicable.)

1. Stock broker is eligible for providing Internetbased trading (IBT) and securities tradingthrough the use of wireless technology thatshall include the use of devices such as mo-bile phone, laptop with data card, etc. whichuse Internet Protocol (IP). The stock brokershall comply with all requirements applicableto internet based trading/securities trading us-ing wireless technology as may be specifiedby SEBI & the Exchanges from time to time.

2. The client is desirous of investing/trading insecurities and for this purpose, the client isdesirous of using either the internet basedtrading facility or the facility for securities trad-ing through use of wireless technology. TheStock broker shall provide the Stock broker’sIBT Service to the Client, and the Client shallavail of the Stock broker’s IBT Service, on andsubject to SEBI/Exchanges Provisions and theterms and conditions specified on the Stockbroker’s IBT Web Site provided that they arein line with the norms prescribed by Exchanges/SEBI.

3. The stock broker shall bring to the notice ofclient the features, risks, responsibilities, ob-ligations and liabilities associated with secu-rities trading through wireless technology/internet/smart order routing or any other tech-nology should be brought to the notice of theclient by the stock broker.

4. The stock broker shall make the client awarethat the Stock Broker’s IBT system itself gen-erates the initial password and its passwordpolicy as stipulated in line with norms pre-scribed by Exchanges/SEBI.

5. The Client shall be responsible for keeping theUsername and Password confidential andsecure and shall be solely responsible for allorders entered and transactions done by anyperson whosoever through the Stock broker’sIBT System using the Client’s Username and/or Password whether or not such person wasauthorized to do so. Also the client is awarethat authentication technologies and strictsecurity measures are required for the internettrading/securities trading through wirelesstechnology through order routed system and

undertakes to ensure that the password of theclient and/or his authorized representative arenot revealed to any third party including em-ployees and dealers of the stock broker

6. The Client shall immediately notify the Stockbroker in writing if he forgets his password,discovers security flaw in Stock Broker’s IBTSystem, discovers/suspects discrepancies/ un-authorized access through his username/pass-word/account with full details of such unau-thorized use, the date, the manner and thetransactions effected pursuant to such unau-thorized use, etc.

7. The Client is fully aware of and understandsthe risks associated with availing of a servicefor routing orders over the internet/securitiestrading through wireless technology and Cli-ent shall be fully liable and responsible for anyand all acts done in the Client’s Username/password in any manner whatsoever.

8. The stock broker shall send the order/tradeconfirmation through email to the client at hisrequest. The client is aware that the order/trade confirmation is also provided on the webportal. In case client is trading using wirelesstechnology, the stock broker shall send theorder/trade confirmation on the device of theclient.

9. The client is aware that trading over the internetinvolves many uncertain factors and complexhardware, software, systems, communicationlines, peripherals, etc. are susceptible to in-terruptions and dislocations. The Stock bro-ker and the Exchange do not make any rep-resentation or warranty that the Stock broker’sIBT Service will be available to the Client atall times without any interruption.

10. The Client shall not have any claim against theExchange or the Stock broker on account ofany suspension, interruption, non-availabilityor malfunctioning of the Stock broker’s IBT Sys-tem or Service or the Exchange’s service orsystems or non-execution of his orders dueto any link/system failure at the Client/Stockbrokers/Exchange end for any reason beyondthe control of the stock broker/Exchanges.


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Annexure – 5

RISK DISCLOSURE DOCUMENT FOR CAPITAL MARKET AND DERIVATIVES SEGMENTS

This document contains important information on trading in Equities/Derivatives Segments of thestock exchanges. All prospective constituents should read this document before trading in Equities/Derivatives Segments of the Exchanges.

Stock exchanges/SEBI does neither singly or jointly and expressly nor impliedly guarantee nor makeany representation concerning the completeness, the adequacy or accuracy of this disclosure docu-ment nor have Stock exchanges /SEBI endorsed or passed any merits of participating in the tradingsegments. This brief statement does not disclose all the risks and other significant aspects of trad-ing.

In the light of the risks involved, you should undertake transactions only if you understand thenature of the relationship into which you are entering and the extent of your exposure to risk.

You must know and appreciate that trading in Equity shares, derivatives contracts or other instru-ments traded on the Stock Exchange, which have varying element of risk, is generally not an appro-priate avenue for someone of limited resources/limited investment and/or trading experience and lowrisk tolerance. You should therefore carefully consider whether such trading is suitable for you inthe light of your financial condition. In case you trade on Stock exchanges and suffer adverseconsequences or loss, you shall be solely responsible for the same and Stock exchanges/its Clear-ing Corporation and/or SEBI shall not be responsible, in any manner whatsoever, for the same andit will not be open for you to take a plea that no adequate disclosure regarding the risks involvedwas made or that you were not explained the full risk involved by the concerned stock broker. Theconstituent shall be solely responsible for the consequences and no contract can be rescinded onthat account. You must acknowledge and accept that there can be no guarantee of profits or noexception from losses while executing orders for purchase and/or sale of a derivative contract beingtraded on Stock exchanges.

It must be clearly understood by you that your dealings on Stock exchanges through a stock brokershall be subject to your fulfilling certain formalities set out by the stock broker, which may inter aliainclude your filling the know your client form, reading the rights and obligations, do’s and don’ts,etc., and are subject to the Rules, Byelaws and Regulations of relevant Stock exchanges, its Clear-ing Corporation, guidelines prescribed by SEBI and in force from time to time and Circulars as maybe issued by Stock exchanges or its Clearing Corporation and in force from time to time.

Stock exchanges does not provide or purport to provide any advice and shall not be liable to anyperson who enters into any business relationship with any stock broker of Stock exchanges and/orany third party based on any information contained in this document. Any information contained inthis document must not be construed as business advice. No consideration to trade should be madewithout thoroughly understanding and reviewing the risks involved in such trading. If you are un-sure, 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 ormust get acquainted with the following:-

1. BASIC RISKS:

1.1 Risk of Higher Volatility:

Volatility refers to the dynamic changes inprice that a security/derivatives contract un-dergoes when trading activity continues onthe Stock Exchanges. Generally, higher thevolatility of a security/derivatives contract,greater is its price swings. There may benormally greater volatility in thinly traded

securities / derivatives contracts than in activesecurities /derivatives contracts. As aresult of volatility, your order may only bepartially executed or not executed at all,or the price at which your order got ex-ecuted may be substantially different fromthe last traded price or change substan-tially thereafter, resulting in notional or reallosses.


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1.2 Risk of Lower Liquidity:

Liquidity refers to the ability of marketparticipants to buy and/or sell securities /derivatives contracts expeditiously at a com-petitive price and with minimal price differ-ence. Generally, it is assumed that morethe numbers of orders available in a mar-ket, greater is the liquidity. Liquidity is im-portant because with greater liquidity, it iseasier for investors to buy and/or sell se-curities / derivatives contracts swiftly andwith minimal price difference, and as a re-sult, investors are more likely to pay orreceive a competitive price for securities /derivatives contracts purchased or sold.There may be a risk of lower liquidity insome securities / derivatives contracts ascompared to active securities / derivativescontracts. As a result, your order may onlybe partially executed, or may be executedwith relatively greater price difference or maynot be executed at all.

1.2.1 Buying or selling securities / derivativescontracts as part of a day trading strategymay also result into losses, because in sucha situation, securities / derivatives contractsmay have to be sold / purchased at low /high prices, compared to the expected pricelevels, so as not to have any open posi-tion or obligation to deliver or receive asecurity / derivatives contract.

1.3 Risk of Wider Spreads:

Spread refers to the difference in best buyprice and best sell price. It represents thedifferential between the price of buying asecurity / derivatives contract and immedi-ately selling it or vice versa. Lower liquid-ity and higher volatility may result in widerthan normal spreads for less liquid or illiq-uid securities / derivatives contracts. Thisin turn will hamper better price formation.

1.4 Risk-reducing orders:

The placing of orders (e.g., “stop loss” or-ders, or “limit” orders) which are intendedto limit losses to certain amounts may notbe effective many a time because rapid move-ment in market conditions may make it im-possible to execute such orders.

1.4.1 A “market” order will be executed promptly,subject to availability of orders on oppo-

site side, without regard to price and that,while the customer may receive a promptexecution of a “market” order, the execu-tion may be at available prices of outstandingorders, which satisfy the order quantity, onprice time priority. It may be understood thatthese prices may be significantly differentfrom the last traded price or the best pricein that security / derivatives contract.

1.4.2 A “limit” order will be executed only at the“limit” price specified for the order or a betterprice. However, while the customer receivesprice protection, there is a possibility thatthe order may not be executed at all.

1.4.3 A stop loss order is generally placed “away”from the current price of a stock / deriva-tives contract, and such order gets activatedif and when the security / derivatives con-tract reaches, or trades through, the stopprice. Sell stop orders are entered ordinarilybelow the current price, and buy stop or-ders are entered ordinarily above the cur-rent price. When the security / derivativescontract reaches the pre -determined price,or trades through such price, the stop lossorder converts to a market/limit order andis executed at the limit or better. There isno assurance therefore that the limit orderwill be executable since a security / deriva-tives contract might penetrate the pre-de-termined price, in which case, the risk ofsuch order not getting executed arises, justas with a regular limit order.

1.5 Risk of News Announcements:

News announcements that may impact theprice of stock / derivatives contract mayoccur during trading, and when combinedwith lower liquidity and higher volatility, maysuddenly cause an unexpected positive ornegative movement in the price of the se-curity / contract.

1.6 Risk of Rumors:

Rumors about companies / currencies attimes float in the market through word ofmouth, newspapers, websites or news agen-cies, etc. The investors should be wary ofand should desist from acting on rumors.

1.7 System Risk:

High volume trading will frequently occur at


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the market opening and before market close.Such high volumes may also occur at anypoint in the day. These may cause delaysin order execution or confirmation.

1.7.1 During periods of volatility, on account ofmarket participants continuously modifyingtheir order quantity or prices or placing freshorders, there may be delays in order ex-ecution and its confirmations.

1.7.2 Under certain market conditions, it may bedifficult or impossible to liquidate a posi-tion in the market at a reasonable price orat all, when there are no outstanding or-ders either on the buy side or the sell side,or if trading is halted in a security / de-rivatives contract due to any action on ac-count of unusual trading activity or secu-rity / derivatives contract hitting circuit fil-ters or for any other reason.

1.8 System/Network Congestion:

Trading on exchanges is in electronic mode,based on satellite/leased line based com-munications, combination of technologies andcomputer systems to place and route or-ders. Thus, there exists a possibility of com-munication failure or system problems orslow or delayed response from system ortrading halt, or any such other problem/glitchwhereby not being able to establish accessto the trading system/network, which maybe beyond control and may result in delayin processing or not processing buy or sellorders either in part or in full. You are cau-tioned to note that although these problemsmay be temporary in nature, but when youhave outstanding open positions or unex-ecuted orders, these represent a risk be-cause of your obligations to settle all ex-ecuted transactions.

2. As far as Derivatives segments are concerned,please note and get yourself acquainted withthe following additional features:-

2.1 Effect of “Leverage” or “Gearing”:

In the derivatives market, the amount ofmargin is small relative to the value of thederivatives contract so the transactions are‘leveraged’ or ‘geared’. Derivatives trading,which is conducted with a relatively smallamount of margin, provides the possibilityof great profit or loss in comparison with

the margin amount. But transactions in de-rivatives carry a high degree of risk.

You should therefore completely understandthe following statements before actually trad-ing in derivatives and also trade with cau-tion while taking into account one’s circum-stances, financial resources, etc. If the pricesmove against you, you may lose a part ofor whole margin amount in a relatively shortperiod of time. Moreover, the loss may ex-ceed the original margin amount.

A. Futures trading involve daily settlementof all positions. Every day the open posi-tions are marked to market based on theclosing level of the index / derivatives con-tract. If the contract has moved against you,you will be required to deposit the amountof loss (notional) resulting from such move-ment. This amount will have to be paid withina stipulated time frame, generally beforecommencement of trading on next day.

B. If you fail to deposit the additional amountby the deadline or if an outstanding debtoccurs in your account, the stock brokermay liquidate a part of or the whole posi-tion or substitute securities. In this case,you will be liable for any losses incurreddue to such close-outs.

C. Under certain market conditions, an in-vestor may find it difficult or impossible toexecute transactions. For example, this situ-ation can occur due to factors such as illi-quidity i.e. when there are insufficient bidsor offers or suspension of trading due toprice limit or circuit breakers etc.

D. In order to maintain market stability, thefollowing steps may be adopted: changesin the margin rate, increases in the cashmargin rate or others. These new measuresmay also be applied to the existing openinterests. In such conditions, you will be re-quired to put up additional margins or re-duce your positions.

E. You must ask your broker to provide thefull details of derivatives contracts you planto trade i.e. the contract specifications andthe associated obligations.

2.2 Currency specific risks:

1. The profit or loss in transactions in foreign


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currency-denominated contracts, whetherthey are traded in your own or another ju-risdiction, will be affected by fluctuations incurrency rates where there is a need toconvert from the currency denomination ofthe contract to another currency.

2. Under certain market conditions, you mayfind it difficult or impossible to liquidate aposition. This can occur, for example whena currency is deregulated or fixed tradingbands are widened.

3. Currency prices are highly volatile. Pricemovements for currencies are influenced by,among other things: changing supply-de-mand relationships; trade, fiscal, monetary,exchange control programs and policies ofgovernments; foreign political and economicevents and policies; changes in national andinternational interest rates and inflation;currency devaluation; and sentiment of themarket place. None of these factors can becontrolled by any individual advisor and noassurance can be given that an advisor’sadvice will result in profitable trades for aparticipating customer or that a customerwill not incur losses from such events.

2.3 Risk of Option holders:

1. An option holder runs the risk of losing theentire amount paid for the option in a rela-tively short period of time. This risk reflectsthe nature of an option as a wasting assetwhich becomes worthless when it expires.An option holder who neither sells his op-tion in the secondary market nor exercisesit prior to its expiration will necessarily losehis entire investment in the option. If theprice of the underlying does not change inthe anticipated direction before the optionexpires, to an extent sufficient to cover thecost of the option, the investor may loseall or a significant part of his investment inthe option.

2. The Exchanges may impose exercise restric-tions and have absolute authority to restrictthe exercise of options at certain times inspecified circumstances.

2.4 Risks of Option Writers:

1. If the price movement of the underlying isnot in the anticipated direction, the optionwriter runs the risks of losing substantialamount.

2. The risk of being an option writer may bereduced by the purchase of other optionson the same underlying interest and therebyassuming a spread position or by acquir-ing other types of hedging positions in theoptions markets or other markets. However,even where the writer has assumed a spreador other hedging position, the risks may stillbe significant. A spread position is not nec-essarily less risky than a simple ‘long’ or‘short’ position.

3. Transactions that involve buying and writ-ing multiple options in combination, or buyingor writing options in combination with buy-ing or selling short the underlying interests,present additional risks to investors. Com-bination transactions, such as optionspreads, are more complex than buying orwriting a single option. And it should befurther noted that, as in any area of in-vesting, a complexity not well understoodis, in itself, a risk factor. While this is notto suggest that combination strategies shouldnot be considered, it is advisable, as is thecase with all investments in options, to con-sult with someone who is experienced andknowledgeable with respect to the risks andpotential rewards of combination transac-tions under various market circumstances.

3. TRADING THROUGH WIRELESS TECHNOLOGY/SMART ORDER ROUTING OR ANY OTHERTECHNOLOGY:

Any additional provisions defining the fea-tures, risks, responsibilities, obligations andliabilities associated with securities tradingthrough wireless technology/ smart orderrouting or any other technology should bebrought to the notice of the client by thestock broker.

4. GENERAL

4.1 The term ‘constituent’ shall mean and in-clude a client, a customer or an investor,who deals with a stock broker for the pur-pose of acquiring and/or selling of securi-ties / derivatives contracts through themechanism provided by the Exchanges.

4.2 The term ‘stock broker’ shall mean and in-clude a stock broker, a broker or a stockbroker, who has been admitted as such bythe Exchanges and who holds a registra-tion certificate from SEBI.


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Annexure-6

GUIDANCE NOTE - DO’s AND DON’Ts FOR TRADING ON THE EXCHANGE(S)

FOR INVESTORS BEFORE YOU BEGIN TO TRADE

1. Ensure that you deal with and through onlySEBI registered intermediaries. You may checktheir SEBI registration certificate number fromthe list available on the Stock exchangeswww.exchange.com and SEBI websitewww.sebi.gov.in.

2. Ensure that you fill the KYC form completelyand strike off the blank fields in the KYCform.

3. Ensure that you have read all the manda-tory documents viz. Rights and Obligations,Risk Disclosure Document, Policy and Pro-cedure document of the stock broker.

4. Ensure to read, understand and then signthe voluntary clauses, if any, agreed betweenyou and the stock broker. Note that theclauses as agreed between you and the stockbroker cannot be changed without your con-sent.

5. Get a clear idea about all brokerage, com-missions, fees and other charges levied bythe broker on you for trading and the rel-evant provisions/ guidelines specified by SEBI/Stock exchanges.

6. Obtain a copy of all the documents executedby you from the stock broker free of charge.

7. In case you wish to execute Power of Attor-ney (POA) in favour of the Stock broker, au-thorizing it to operate your bank and demataccount, please refer to the guidelines is-sued by SEBI/Exchanges in this regard.

TRANSACTIONS AND SETTLEMENTS

8. The stock broker may issue electronic con-tract notes (ECN) if specifically authorizedby you in writing. You should provide youremail id to the stock broker for the same.Don’t opt for ECN if you are not familiar withcomputers.

9. Don’t share your internet trading account’spassword with anyone.

10. Don’t make any payment in cash to the stockbroker.

11. Make the payments by account payee chequein favour of the stock broker. Don’t issuecheques in the name of sub-broker. Ensurethat you have documentary proof of yourpayment/deposit with the stockbroker, stat-ing date, scrip, quantity, towards which bank/demat account such money or securitiesdepositd and from which bank/ demat ac-count.

12. Note that facility of Trade Verification is avail-able on stock exchanges’ websites, wheredetails of trade as mentioned in the contractnote may be verified. Where trade detailson the website do not tally with the detailsmentioned in the contract note, immediatelyget in touch with the Investors Grievance Cellof the relevant Stock exchange.

13. In case you have given specific authoriza-tion for maintaining running account, payoutof funds or delivery of securities (as the casemay be), may not be made to you within oneworking day from the receipt of payout fromthe Exchange. Thus, the stock broker shallmaintain running account for you subject tothe following conditions:

a) Such authorization from you shall be dated,signed by you only and contains the clausethat you may revoke the same at any time.

b) The actual settlement of funds and securi-ties shall be done by the stock broker, atleast once in a calendar quarter or month,depending on your preference. While settlingthe account, the stock broker shall send toyou a ‘statement of accounts’ containing anextract from the client ledger for funds andan extract from the register of securities dis-playing all the receipts/deliveries of funds andsecurities. The statement shall also explainthe retention of funds and securities and thedetails of the pledged shares, if any.

c. On the date of settlement, the stock brokermay retain the requisite securities/funds to-wards outstanding obligations and may alsoretain the funds expected to be required tomeet derivatives margin obligations for next


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5 trading days, calculated in the mannerspecified by the exchanges. In respect of cashmarket transactions, the stock broker mayretain entire pay-in obligation of funds andsecurities due from clients as on date ofsettlement and for next day’s business, hemay retain funds/securities/margin to the ex-tent of value of transactions executed on theday of such settlement in the cash market.

d. You need to bring any dispute arising fromthe statement of account or settlement somade to the notice of the stock broker inwriting preferably within 7 (seven) workingdays from the date of receipt of funds/secu-rities or statement, as the case may be. Incase of dispute, refer the matter in writingto the Investors Grievance Cell of the rel-evant Stock exchanges without delay.

14. In case you have not opted for maintainingrunning account and pay-out of funds/secu-rities is not received on the next working dayof the receipt of payout from the exchanges,please refer the matter to the stock broker.In case there is dispute, ensure that you lodgea complaint in writing immediately with theInvestors Grievance Cell of the relevant Stockexchange.

15. Please register your mobile number and emailid with the stock broker, to receive tradeconfirmation alerts/ details of the transactionsthrough SMS or email, by the end of the trad-ing day, from the stock exchanges.

IN CASE OF TERMINATION OF TRADINGMEMBERSHIP

16. In case, a stock broker surrenders his mem-bership, is expelled from membership or de-clared a defaulter; Stock exchanges gives a

public notice inviting claims relating to onlythe “transactions executed on the tradingsystem” of Stock exchange, from the inves-tors. Ensure that you lodge a claim with therelevant Stock exchanges within the stipu-lated period and with the supporting docu-ments.

17. Familiarize yourself with the protection ac-corded to the money and/or securities youmay deposit with your stock broker, particu-larly in the event of a default or the stockbroker’s insolvency or bankruptcy and theextent to which you may recover such moneyand/or securities may be governed by theBye-laws and Regulations of the relevantStock exchange where the trade was executedand the scheme of the Investors’ ProtectionFund in force from time to time.

DISPUTES/ COMPLAINTS

18. Please note that the details of the arbitra-tion proceedings, penal action against thebrokers and investor complaints against thestock brokers are displayed on the websiteof the relevant Stock exchange.

19. In case your issue/problem/grievance is notbeing sorted out by concerned stock bro-ker/sub-broker then you may take up thematter with the concerned Stock exchange.If you are not satisfied with the resolutionof your complaint then you can escalate thematter to SEBI.

20. Note that all the stock broker/sub-brokershave been mandated by SEBI to designatean e-mail ID of the grievance redressal divi-sion/compliance officer exclusively for thepurpose of registering complaints.


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POLICIES & PROCEDURES

Refusal of orders for penny stocksSKSBPL shall have the absolute discretion to accept, refuse or partially accept any buy or sell order forexecution from a client in respect of penny stocks, illiquid stocks as per the perception of SKSBPLwhich are extremely volatile or subject to Market manipulation

Setting up client’s exposure limitsPuchase Limit : SKSBPL may provide a exposure limit for intraday and delivery based purchases by aclient which would be on real time basis of the clear ledger balance in the account of the client plusvalue of paid up collaterals computed after appropriate haircut as decided by SKSBPL based on MarketVolatility and quality of collaterals.

Sell limit : SKSBPL may provide a sell limit to the client equivalent to the value of securities held by theclient in his POA enabled Demat account plus the collateral held by SKSBPL on behalf of the client in itsBeneficiary and Margin pool account after making appropriate adjustments for the unsettled deliverypositions of the client

Exposure for F&O : SKSBPL may provide exposure for F&O based on availability of initialmargin(SPAN+Exposure) in the form of cash and approved securities (with appropriate hair cut)Client-wise differential Limits : SKSBPL shall have the prerogative to allow differential purchase limitsand sell limits varying from client to client , depending upon credit worthiness,integrity and past conductof each client.

Applicable brokerage rateBrokerage shall be applied as per the rates agreed upon with the client in the KYC at the time of regis-tration of the client. The rate of Brokerage shall not exceed the maximum permissible under ExchangeBye-laws. On the option segment , it is hereby disclosed that brokerage shall not exceed 2.5% of thepremium amount or Rs.100(per lot) whichever is higher.

Imposition of penalty/delayed payment charges by either party, specifying the rate and theperiod(This must not result in funding by the broker in contravention of the applicable laws)Pursuant to Exchange Bye-laws, the Member broker is currently required to make pay-in of funds to theExchange by T+2 morning and arrange delivery of securities to the Exchange latest by T+2morning.Further member broker is also required to maintain adequate upfront margins with the Ex-change to avail exposure for trading.SKSBPL may therefore charge a delayed payment penalty onweekly basis on account of delays/failure by the client in meeting the pay-in obligations on the sched-uled date @ 18% p.a.

Right to sell clients’ securities or close clients’ positions, without giving notice to the client, onaccount of non-payment of client’s duesSKSBPL shall have the right to sell client’s securities, both unpaid securities as well as collateralsdeposited towards margins, or close out client’s open positions, without giving notice to the client wherethere is a delay/failure of the client to meet the pay-in obligations and/or there is a failure of the client tobring additional margins to cover the increase in risk

Shortages in obligations arising out of internal netting of tradesSKSBPL shall have the right to adopt a policy of its choice for internal auctions arising out of internalnetting of trades.At present the benefit is calculated at 5% on the Auction day’s Market rate at 3.00 p.m.

Conditions under which a client may not be allowed to take further position or the broker mayclose the existing position of a clientWhere client is not having adequate margins as per conditions defined in Risk Management PolicyWhere the client has not able to meet his pay-in obligation in cash by the schedule date. Proceeds ofthe cheque deposited by the client to meet the pay-in obligations has not yet been cleared.Where theclient has not met Market to Market loss in cash in the F&O segment


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Temporarily suspending or closing a client’s account at the client’s requestSKSBPL may carry a periodic review of the client accounts and may suspend the accounts from Trad-ing in the following circumstances.Where the client is inactive beyond a specific period as prescribed by the broker.On notices receivedfrom statutory, Government or Local authorities and Income Tax. Where a client is reported to or knownto have expired

Deregistering a clientSKSBPL may de-register the client based on action taken by SEBI/NSE/BSE or being part of list ofdebarred entities published by SEBI.

Policy regarding treatment of inactive accountsSKSBPL prescribes the following policy regarding treatment of inactive accounts. If there is no transac-tion by the Client in its trading account opened and maintained with SKSBPL, for a period of one yearand more.Such account may be classified as “inactive” in the SKSBPL systems. It may be noted thatsystem generated debits(journal voucher entries) like charges, debit interest etc. are not considered as‘transaction’ for classifying an account as active or inactive. If the client account goes into the “inactive”state, client needs to follow the below mentioned procedure to reactive it

1. A letter for activation of the account signed by each account holder at least 2 days in advance at itsAhmedabad , R.O. Such written request duly signed by the client may also be sent by way of FAX on079-30023551 to Mr.Janak /Ms. Saloni (Trading account Dept.) or by e-mail on [email protected] fromclient’s own e-mail account registered with broker.

2. Updated details as per KYC norms


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Segment INTRADAY DELIVERY MIN.BROKERAGE MIN.BROKERAGEINTRADAY DELIVERY

BUY SELL (PER SHARE) (PER SHARE)

NSE-CAPITALMARKET

NSE-F&O

NSE-CDS

BSE-CASH

BSE-F&O

* Above mentioned Statutory Charges, Exchange Charges, Demat Charges are subject to change fromtime to time.

Turnover Charges 0.0033 % of total Turnover

SEBI Fees 0.0001 % of total Turnover

STT (Security Transaction Tax) 0.125% on Delivery(Buy & Sell) , 0.025% forIntraday(only on Sell)

Stamp Duty 0.01 % on intraday and 0.002 % ondeliverybase turnover.

Service Tax 10.30%

Demat Section Charges (on sale) Rs. 15/- per Instruction + Service Tax

Following charges are levied by the stock exchanges/relevant authorities :

TARIFF SHEET


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This Document is Voluntary

LETTER FOR OPERATION OF ACCOUNT

ToSHREE KANHA STOCK BROKING PVT. LTD.406, Shail, Opp. Navrangpura Tel. Exchange,Nr. Madhusudan House, Ahmedabad - 380009

Dear Sir,You are requested to kindly register me/us as aClient for the Capital Market Segment and/orFutures and Options Segment of the NSE / BSE ofwhich you are a member.

My/our details are annexed herewith

Further, with reference to above I/We request youto kindly note the following points for smooth con-duct of business operations:

1. You are requested to kindly accept my/our ver-bal instructions to place, modify and cancel theorders and not insist for the same in writing.

2. You are requested to kindly not give me/us anyorder confirmation / modification / cancellationsslips or trade confirmations slips as generatedby the Trading system.

3. Please note that my/our account to be main-tained with you shall be a running account, andthe funds and securities due to me/us are notto paid immediately on payout but is to be re-tained by you in your demat / bank account /beneficiary account until unless specificallydemanded by me/us and may be used for my/our future settlement obligations, margin liabili-ties, etc.

4. You are free to adjust debits/credits in betweenor my various accounts, viz. (a) F&O Initial Mar-

gin a/c. (b) F&O MtoM a/c, (c) Capital Marketa/c. (d) Capital Market Margin a/c or (e) anyother account maintained by me/us in any nameor form with your selves. These adjustmentsmentioned in the accounts (a) to (e) above maybe done by passing a Journal Entry, bank entryor any other manner or fashion that you deemfit without our specific confirmation.

5. I/We have authorized you to deduct the out-standing balance of my demant Account withyour DP from my NSE / BSE trading account.

6. I am / We are aware and have noted that youdo proprietory trading/may start in futures and Iacknowledge to have the knowledge of thesame.

7. I / We shall not indulge in any sub-broking ac-tivities not issue bills/ contracts / confirmationnotes / to anyone else for the trades done onthe BSE.

8. All fines/ penalties and charges levied on youdue to my / our transactions / deeds / actionsare recoverable by you from my / ouraccount(s).

9. We will submit copies of I.T. Return & AnnualReports of our entity, every year, (if applicable)

10. I/We understand and agree that you can debitmy/our account(s) for any additional ServicesProvided by you for which you incurr any addi-tional expenses as per my/ our oral/written re-quest.

11. I/We have noted your designated email id forcomplain grievences.

12. I/We request you to settle my accounts.

❑ Monthly ❑ Quarterly


CLIENT SIGNATURE :

X

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ADDITIONAL CLAUSE FOR MUTUAL FUNDS-VOLUNTARY

(Kindly note that these additional clause(s)/ documentation(s) are voluntary and at the discretion of thestock broker/trading member and the client. The same are required in order to ensure smooth communi-cation between the stock broker/trading member and the client. The client need not execute this documentif he/she does not wish to. The client has the right to terminate the document)

Sir(s),

Sub : NSE MFSS Segment BSE STAR MF/BSE New Mutual Fund Service System (MFSS) facility

I / We am / are / registered as your client / applied to be your client and have executed the TradingMember and Client Agreement for the purpose of trading in the Equity of NSE / BSE.

I/We am/are interested in availing the trading facility of NSE / BSE for the purpose of dealing in the units ofMutual Funds Schemes permitted to be dealt with on the NSE MFSS / BSE STAR MF.

For the purpose of availing this facility, I/we state that Know Your Client details as submitted by me/us forthe stock broking may be considered for the purpose of NSE MFSS / BSE StAR MF and I/we furtherconfirm that the details contained in same remain unchanged as on date.

I / We are willing to abide by the terms and conditions as mentioned in the NSE circular dated November24,2009 and BSE Notice dated December 2,2009 and as may be specified by NSE / BSE from time totime in this regard.

I / We shall ensure also compliance with the requirements as may be specified from time by Securitiesand Exchange Board on India and Association of Mutual Funds of India (AMFI).

I/We shall read and understand the contents of the Scheme Information Document and Key InformationMemorandum, addenda issued regarding each Mutual Fund Schemes with respect to which I/wechoose to Subscribe/redeem. I/We further agree to abide by the terms and conditions,rules and regula-tions of the Mutual Fund Schemes.

I / we therefore request you to register me / us as your client for participating in NSE MFSS / BSE StARMF.

Name : CLIENT SIGNATURE :

X

PLACE :

DATE :

This Document is Voluntary


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Details of Terms & Conditions for the Investor / Client for using NSE MFSS / BSE STAR MF platform.

1 Pre-requisites for becoming Investor / Client for the NSE MFSS / BSE STAR MF

1.1. The client who is desirous of investing in units of mutual fund schemes through the NSE MFSS / BSESTAR MF

1.2 The Client intends to execute his instruction for the subscription/redemption of units of Mutual FundSchemes through the broker who is a Participant / Mutual fund Intermediary (MFI) of the NSE MFSSPlatform / BSE STAR MF Platform

1.3 The client has satisfied itself of the capacity of the Participant/MFI to deal in Mutual Fund units andwishes to execute its instruction through the PARTICIPANT/MFI and the client shall from time to timecontinue to satisfy itself of such capability of the PARTICIPANT/ MFI before executing transactingthrough the PARTICIPANT/ MFI.

1.4 The Client has approached to the PARTICIPANT/MFI with the application for availing the BSE STAR MF1.5 The client has submitted relevant KYC (Know Your Client) details to the PARTICIPANT/MFI

2 Terms and Conditions

2.1 The client shall be bound by circulars issued by NSE’s / BSE’s Rules, Regulations and Notices/circulars issued there under by SEBI and relevant notifications of Government authorities as may bein force from time to time.

2.2 The client shall notify the PARTICIPANT/MFI in writing if there is any change in the information in the‘client registration form’ provided by the client to the PARTICIPANT/MFI at the time of registering as aclient for participating in the NSE MFSS Platform / BSE STAR MF platform or at any time thereafter.

2.3 The client shall submit to the PARTICIPANT/MFI a completed application form in the manner prescribedformat for the purpose of placing a subscription order with the PARTICIPANT/MFI.

2.4 The client has read and understood the risks involved in investing in Mutual Fund Schemes.2.5 The client shall be wholly responsible for all his investment decisions and instruction.2.6 The client shall ensure continuous compliance with the requirements of the NSE, BSE,SEBI and AMFI.2.7 The Client shall pay to the PARTICIPANT/MFI fees and statutory levies as are prevailing from time to

time and as they apply to the Client’s account,transactions and to the services that PARTICIPANT/MFIrenders to the Client.

2.8 The client will furnish information to the PARTICIPANT/MFI in writing , if any winding up petition or insol-vency petition has been filed or any winding up or insolvency order or decree or award is passedagainst him or if any litigation which may have material bearing on his capacity has been filed againsthim.

2.9 In the event of non-performance of the obligation by the PARTICIPANT/MFI, the client is not entitled toclaim any compensation either from the Investor Protection Fund or from any fund of NSE / BSE or itsClearing Corporation – Indian Clearing Corporation Ltd. (ICCL) or from any fund of NSEIL or NSCCL.

2.10 In case of any dispute between the PARTICIPANT/MFIs and the investors arising put of the NSE MFSSPlatform / BSE STAR MF, NSE / BSE and / or ICCL and/or NSEIL and/or NSCCL agrees to extend thenecessary Support for the speedy redressal of the disputes.


CLIENT SIGNATURE :

X

DATE :

I have received KYC kit for my trading account with you.

CLIENT NAME

CLIENT CODE

ACCOUNT OPENING KIT ---- INDEX OF DOCUMENTS S.No. Name …

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