POLICIES AND PROCEDURES
- Refusal of orders for penny Stocks/Derivatives - The client is aware and agrees that the stock broker may refuse or restrict a client in placing the order in certain securities depending on various conditions like volume / value / part of illiquid although a client may have credit balance or sufficient margin in the trading account. However, stock broker under exceptional circumstances may execute cliental order. The stock broker has the discretion to reject execution of such orders based on its risk perception.
- Refusal of orders for penny Stocks/Derivatives - The client is aware and agrees that the stock broker may refuse or restrict a client in placing the order in certain securities depending on various conditions like volume / value / part of illiquid although a client may have credit balance or sufficient margin in the trading account. However, stock broker under exceptional circumstances may execute cliental order. The stock broker has the discretion to reject execution of such orders based on its risk perception.
Applicable Brokerage Rate for Equity & Derivatives -by creating employment opportunities-through the following:
- The stock broker is eligible to charge brokerage with respect to transactions effected by it in various segment as mentioned herein below –
- For CapitalMarket Segment – The maximum brokerage in relation to trades effected in the securities admitted to dealings on the Capital Market Segment of the Exchange shall be 2.5% of the contract price exclusive of statutory levies.
- For Option Contracts of Equity and Currency Derivative - Brokerage for options contracts shall be charged on the premium amount at which the option contract was bought or sold and not on the strike price of the option contract. The brokerage on option contracts shall not exceed 2.5% of the premium amount.
- The stock broker may charge different Brokerage for Deliverable and Intraday transactions.
- The client is aware that any request for change in the brokerage rate has to send in writing to the Company. Acceptance / rejection of such request is at the discretion of the stock broker.
- Other Levies, charges,Goods and Service Tax (GST) e.t.c.will be charged on Brokerage as perRules prescribed by theGovernment /RegulatoryAgencies. All the above charges and levies debited to clients would be mentioned in the Contract Note send to client.
- The stock broker is eligible to charge brokerage with respect to transactions effected by it in various segment as mentioned herein below –
- Imposition of Penalties / Interest on outstanding debits & margins - The client is required to pay all amounts due to the stock broker on its due date. The amount due to broker shall include all type of Margin and Pay-in-obligation/Settlement Obligation on account of any other reason. Client is required to meet its dues to the Trading Member on account of various obligations like Margins & Settlement. These obligations if not paid in time, are met by the Trading Member to the Exchanges / Clearing Corporations / Clearing Members and is construed as funding on which interest would be applicable. In case the client does not pay the amount due on time, the stock broker shall charge Interest on outstanding debits & margins up to the rate of 2% per month on the daily outstanding value or at such rates as may be determined from time to time by the stock broker. Interest will be charged from the time it become due till the time obligation is cleared by the client, on the basis of clear credit available in the account. The objective of charging such a interest is to force a client to clear their dues on time. The client agrees that the stock broker may impose fines/penalties for any orders/trades of the client which are contrary to this agreement/rules/regulations of the Exchanges and is imposed by the Exchanges/Regulators. Further, under the instances where the stock broker has been penalized from any authority on account of/as a consequence of orders/trades of the client, the same shall be borne by the client.
- The right to sell client's securities or close client's positions, without giving notice to the client, on account of non-payment of client's dues - The Client shall provide timely funds/securities for the purchase/sale of securities to the stock broker for meeting his obligation to the Exchange. In case of client falling short of providing fund/securities, the stock broker has the right to close the positions. The Stock Broker has the right to sell client's securities or close clients position with or without giving prior notice to client on account of non payment of dues to the extent of Ledger debit and/or to the extent of Margin obligation(s). The broker can liquidate the securities bought or collaterals given or any other securities given in any other form for clearing the clients obligations. The Company may in its sole discretion, determine the time of sell and securities to be disposed off and or which open position is / are to be liquidated / closed as per RMS policy applicable from time to time. To avoid selling of shares / closing of positions, we request you to maintain sufficient margin in your trading account
- Conditions under which a client may not be allowed to take further position or the broker may close the existing position of a client - The Company is entitled in its sole discretion to restrict or refuse execution of any orders for transaction in any scrip if transaction in such scrip is not in accordance with its internal surveillance / risk management policy and/or in accordance with the directives and guidelines of the Exchanges and/or the Regulator issued from time to time. The Company may at its sole discretion decline to carry out the instructions for any reason whatsoever. In case overall position of client / clubbed position of client as per the IFSCA guidelines, and/or on the basis of criteria set by Exchanges, in a scrip / derivatives contracts has reached the Regulators prescribed Exchange limit / Market Wide Open Interest limit, then client may not be allowed to take further position, till such time Regulator prescribed limits comes down to create a new position. Further in Exchange / Segments where client positions are monitored at group level (i.e. entities are clubbed by Exchanges as per their guidelines), those set / group of customers together have to abide by position limits as mentioned above. Further, the stock broker may close the existing position of a client to the extent of Debit balances to release the Margin from the Exchange. In case if the stock broker has sufficient Margin cover on behalf of its client, it may still decide based on the market conditions and risk perception not to allow further position or may close the existing position of a client. The customers are also requested to refer detailed Risk Management policy uploaded under client portal on Company’s Website www.indmoney.com
- Temporary Suspension/Closure of Accounts -
- The client may request the stock broker for temporary suspension/closure of his trading account by sending a written request to the Company. This request will be further processed where after verification of the client details, the trading account of the client will be suspended.
- The client would be required to clear all his dues/settlement of obligations before his account is temporarily suspended. The client may also be required to fulfill other conditions, on a case to case basis.
- The stock broker can withhold the payouts of client and suspend/close his trading account due to any internal / regulatory action. The Customer will be intimated upon Suspension / closure of trading account within 15 days of suspension
- Deregistering a client-In addition to what the client has agreed in the agreement, the stock broker may terminate a client with immediate effect, but not limited to the following reasons
- If the client is debarred by SEBI/IFSCA or any other regulatory authority.
- As a part of surveillance measure, if a client appears to be indulging in manipulative practices.
- Under the circumstances when there is a reasonable ground to believe that the client is unable to clear its dues or has admitted its inability to pay its debt.
- If the client violates any of the terms of the agreement.
- Treatment of Inactive Clients
- The Company identifies such client codes / trading accounts that are inoperative for a minimum period of preceding 12 months i.e. no trades have been carried out since last 12 months across all Exchanges.
- Accordingly, such trading accounts are made inactive in the trading System and the client is informed about the status of his trading account maintained with the Company via email/letter/SMS or by way of any other mode. Such trading Accounts shall also be marked "inactive / dormant" in UCC database of Exchanges where such clients details are updated.
- For re-activation of such trading account, the client shall be required to submit all necessary information / documents with regard to updation of his / their KYC details.
- As per regulations, it is required to undertake the fresh documentation, due diligence and In person verification (IPV) where a client is coming for reactivation after a period of 1 year of being flagged as inactive. In case a client seeks re-activation before a period of 1 year of being flagged as inactive, Member shall, while reactivating the client, ensure that the basic details of such client like Address, Mobile number, Email ID, Bank/DP account are updated in records. In case of any changes, necessary documents shall be collected.
- However, in case a client has undertaken transaction through the Member, with respect to IPO/Mutual Fund subscription and DP operations during this period, the same can be considered and the requirement for fresh documentation, due diligence, and IPV may not be required. Further IPV of the client shall be conducted for any secondary market transactions after a period of 1 year of being flagged as inactive.
- The Company upon verifying / carrying out due diligence at its end may activate clients trading code in the Trading System
- Upon reactivation, the client is informed about the status of his trading account via email/letter/SMS or by way of any other mode. Upon re-activation the stock broker may execute the order on behalf and as per instructions of clients after updating the UCC status in Exchanges.
- Client acceptance of policies and procedures mentioned here in above –I / We have fully understood and agree to sign the same. Above policies and procedures may be amended / changed unilaterally by the stock broker provided the same is intimated via email / writing or reflected in the clients login/website.