INSTRUCTIONS FOR FILLING UP THE FORM AND COMPLETING ACCOUNT OPENING FORMALITIES 1. Please fill all informations in BLOCK letters. Please ensure that the form is properly and legibly filled in and is complete in all respects. 2. Please strike out non relevant sections as 'NOT APPLICABLE' 3. Trading Account cannot be opened in Joint Names. Trading Account Applicant has to be the First account holder of Bank and Demat account. 4. Please affix (not staple) a passport size photograph on the space provided and sign across it. In case of Non- individuals, please provide photographs for each partner/director/I key management personnel. 5. Please ensure that copies of the required documents mentioned in the given check list are enclosed. 6. Please not that original documents will be required for verification at the time of the registration. 7. Please not that PIN Code and Telephone number and e-mail id are compulsory in the address. 8. Please affix a full signature wherever an (3) mark is found. CHECK LIST OF DOCUMENTS Please Tick (3) as applicable 1. PROOF OF IDENTITY (For Individual / Karta / Sole proprietor / Authorised Person(s) for Partnerships, Corporates and Trusts) + Photocopy of PAN Card 2. PROOF OF ADDRESS (For Individual / Karta / Sole Proprietor / Authorised Person(s) for Partnerships, Corporates and Trusts) Photocopy of Any one of the following : + Passport + Voter ID Card + Driving License + Bank Passbook + Rent Agreement + Ration Card + Current Telephone Bill + Current Electricity Bill + Flat Maintenance Bill + Insurance Policy. 3. BANK AND DP PROOF : + i. Letter from Client's banker certifying the account number and the period from which the account is in operation. + ii. Copy of a Pass book / Bank Statement containing name of the Client. + iii. Copy of Current Transaction Statement / Holding Statement / Certification by DP containing the name of DP and Client 4. PROOF OF INCOME AND ASSETS : + i. Copy of the Salary slip of the constituent for te last month + ii. Income Tax statement for the last 2 financial years + iii. Asset Liability Statement (Balance Sheet) + iv. Copy of the valuer's certificate in case of immovable property 5. ADDITIONAL DOCUMENTS FOR NON-INDIVIDUALs: + i. Copy of the Balance sheet for the last 2 financial years (copies of annual balance sheet to be submitted every year) + ii. Copy of latest share holding pattern including list of all those holding more than 5% in the share capital of the company, duly certified by the Company Secretary / Wholetime Director / MD. (Copy of updated shareholding pattern to be submitted every year) + iii. Copies of the Memorandum and Articles of Association in case of a company / body corporate or partnership deed in case of a partnership firm. + iv. Copy of the Resolution of Board of Director's approving participation in equity / derivateives- equity and currency / debt trading and naming authorized persons for dealing in securities. + v. Photographs of Partner/Whole Time Directors, individual promoters holding 5% or more, either directly or indirectly, in the shareholding of the company and of persons authorised to deal in securities. + vi. Net worth certified by Chartered Accountant. + vii. Declaration on letterhead of firm as pr prescribed format for Sole Proprietorship and Partnership Firms. + viii. In case the applicant is Karta of HUF, list of members of HUF and declaration by HUF is to be enclosed as per format provided. All Signatures of the Karta and the members must be accompaned by the stamp of the HUF.
Transcript
INSTRUCTIONS FOR FILLING UP THE FORM AND COMPLETING ACCOUNT OPENING FORMALITIES
1. Please fill all informations in BLOCK letters. Please ensure that the form is properly and legibly filled in and is complete in all respects.
2. Please strike out non relevant sections as 'NOT APPLICABLE'3. Trading Account cannot be opened in Joint Names. Trading Account Applicant has to be the First account
holder of Bank and Demat account.4. Please affix (not staple) a passport size photograph on the space provided and sign across it. In case of Non-
individuals, please provide photographs for each partner/director/I key management personnel.5. Please ensure that copies of the required documents mentioned in the given check list are enclosed.6. Please not that original documents will be required for verification at the time of the registration.7. Please not that PIN Code and Telephone number and e-mail id are compulsory in the address.8. Please affix a full signature wherever an (3) mark is found.
CHECK LIST OF DOCUMENTSPlease Tick (3) as applicable1. PROOF OF IDENTITY (For Individual / Karta / Sole proprietor / Authorised Person(s) for
Partnerships, Corporates and Trusts)+ Photocopy of PAN Card
2. PROOF OF ADDRESS (For Individual / Karta / Sole Proprietor / Authorised Person(s) for Partnerships, Corporates and Trusts)Photocopy of Any one of the following :+ Passport + Voter ID Card + Driving License + Bank Passbook + Rent Agreement + Ration Card + Current Telephone Bill + Current Electricity Bill + Flat Maintenance Bill + Insurance Policy.
3. BANK AND DP PROOF :+ i. Letter from Client's banker certifying the account number and the period from which the account is
in operation.+ ii. Copy of a Pass book / Bank Statement containing name of the Client.+ iii. Copy of Current Transaction Statement / Holding Statement / Certification by DP containing the
name of DP and Client4. PROOF OF INCOME AND ASSETS :
+ i. Copy of the Salary slip of the constituent for te last month+ ii. Income Tax statement for the last 2 financial years+ iii. Asset Liability Statement (Balance Sheet)+ iv. Copy of the valuer's certificate in case of immovable property
5. ADDITIONAL DOCUMENTS FOR NON-INDIVIDUALs:+ i. Copy of the Balance sheet for the last 2 financial years (copies of annual balance sheet to be
submitted every year)+ ii. Copy of latest share holding pattern including list of all those holding more than 5% in the share
capital of the company, duly certified by the Company Secretary / Wholetime Director / MD. (Copy of updated shareholding pattern to be submitted every year)
+ iii. Copies of the Memorandum and Articles of Association in case of a company / body corporate or partnership deed in case of a partnership firm.
+ iv. Copy of the Resolution of Board of Director's approving participation in equity / derivateives-equity and currency / debt trading and naming authorized persons for dealing in securities.
+ v. Photographs of Partner/Whole Time Directors, individual promoters holding 5% or more, either directly or indirectly, in the shareholding of the company and of persons authorised to deal in securities.
+ vi. Net worth certified by Chartered Accountant.+ vii. Declaration on letterhead of firm as pr prescribed format for Sole Proprietorship and Partnership
Firms.+ viii. In case the applicant is Karta of HUF, list of members of HUF and declaration by HUF is to be
enclosed as per format provided. All Signatures of the Karta and the members must be accompaned by the stamp of the HUF.
VOLUNTARY DOCUMENT: The documents in this section are voluntary and at the discretion of the client if intends to avail the special facilities offered by us. The client need not execute such documents if he / she does not wish to use the facility.
Document Description
Internet Trading Agreement
Running Account Authorisation
Authorization for Verbal Order Acceptance and Electronic Contract Notes and combined Ledger Principal
FORMAT OF ADDITIONAL DOCUMENTS –Applicable in Specific cases provided on Specific request/can be down loaded from www.nikunjonline.com/downloads/Formats
DECLARATION PURSUANT TO SEBI CIRCULAR BEARING REFERENCE NUMBER MIRSD/SE/CIR-19/2009 DATED 3RD DECMEBER, 2009
INDEX
S. No.
M-2
M-3
M-4
M-5
M-1
Document Description
Letter for dealing in the Units of Mutual Fund Schemes-NSE
Member Client Agreement Currency Derivatives-USE
Format for details of Partners/Directors
Format of Partnership Declaration
Format of HUF Declaration
Format of Board Resolution for Corporate
Format for change in demographic details with Nikunj
Format of NRI Client code application to be submitted by NRI to the Clearing Member
Format of Declaration by Proprietor on the Letterhead of the Firm
Tripartite Agreement Between Stock Broker, Sub-broker and Client (NSE)
MANDATORY DOCUMENTS
Document Description
Know Your Client (KYC) Form
Member Client Agreement-NSE
Combined Risk Disclosure Document (Cash, FO and Currency Derivatives)
Investor's Rights & Obligations
Policies & Procedures
Page No.
3 – 7
8 – 10
11 – 14
15 – 16
17 – 22
S. No.
V-2
V-3
V-1
S. No.
Format-2
Format-3
Format-4
Format-5
Format-6
Format-7
Format-8
Format-9
Format-10
Format-1
1
2
1
1
1
1
1
1
1
2
No. of Pages
Page No.
23 – 24
25
26 – 27
I/we have fully understood the distinction and the details regarding the Non Mandatory/Voluntary/Special Facility documents and do hereby enter in to agreement with Nikunj by signing the same and agree not to question the validity, enforceability and applicability of any voluntary/Optional agreement (s)/Document(s)/Clauses within any voluntary/optional agreement(s)/ document(s) under any circumstances what so ever.
Signature of the Client:
1 (3)
Employee Name :
Signature of Employee .................................................................................................................................
Date of verification : .....................................................................................................................................
Place of Verification : ..................................................................................................................................
Applicant/s Signature/s (In presence of TM Official) : ...............................................................................
CLIENT REGISTRATION FORM(This information is the sole property of the trading member/brokerage house and would not be disclosed to any one unless required by law or except with the express permission of client)
Copy of a current transaction statement/Holding Statement/Certification by DP containing name of the Client should be submitted. Please furnish details of all DP Accounts beginning with your preferred A/c.)
UNDERTAKING TO MEET ANNUAL REQUIREMENTS
We undertake that we will submit a certified copy of Annual Balance Sheet every before 30th November.
We further undertake to submit the updated share holding pattern every year before 30th November.
INCOME DETAILS OF THE CLIENT
Year I
Rs.
Year II
Rs.
Year III
Rs.
6
OTHER DETAILS : FOR ALL CLIENTS
BANK ACCOUNT DETAILS (through which transactions will generally be routed)
BANK NAME BRANCH A/C TYPE(Savings/Current/NRE)
ACCOUNT NO. MICR NO.
Copy of a passbook/Bank statement containing name of the Client should be submitted. Please furnish details of all Bank Accounts beginning with your preferred A/c.)
IFS CODE
(3)
OTHER BROKER'S / TRADING MEMBER'S (TM) DETAILS
(If registered with multiple members, provide details of all on a separate sheet in the above format)
Whether Registered with any other Broker-Member/Sub-Broker in India Yes No.
If Yes, Name of the Broker / TM
SEBI Registration No. of Broker / TM
Name of the Exchange
Client Code No.
If Yes,
If Yes,
If Yes,
Details of any action taken by SEBI/StockExchange/any other authority for violationof securities laws/other economic offence.
Signature of the Introducer :
Date : Place :
INTRODUCER'S DETAILS
Introducer (Mr./Mrs./Ms./Dr./Messrs)
Address of the introducer
Relationship of Introducerwith NIKUNJ
Director Employee
Other (Please specify)
Client (please mention Client code)
7
I/We request you to register me/us a Client/Constituent and enable me/us to trade in the Cash and/or Derivatives and/or Debt Segment pursuant to the Agreement entered with you. I/We have read the Rules, Bye-Laws and Regulations of the Exchange pertaining to these segment and agree to abide by them. I/We hereby declare that the details furnished above are true and correct to the best of my 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, untrue, misleading or misrepresenting I/We am/are aware that I/We am/are liable to be debarred from conducting business in the Cash and Derivatives segments. I/We also agree to furnish information as you or the Exchange may require from time to time, failing which, you shall have the right to cancel my/our registration and debar me/us from conducting business in the Cash and Derivatives segments. I/We confirm that the Demat beneficiary account declared above has been opened by me/us with the Depository and I/We authorise you to transfer the shares purchased by me/us to the said account. I/We further declare that the Policy on Prevention or of Anti Money Laundering Act. (PMLA) has been duly explained to me/us by the Trading Member and I/We have understood the contents there in and declare and confirm that I/We will able by the (PMLA) rules in our dealing with the member:
Signed and delivered by
Name of the Individual Client/Karta/Director .............................................................................................
Signature of the Individual Client/Karta/Director ........................................................................................
(Please Affix Company Rubber Stamp in Case of HUF and non-individual cases)
Initials....................................................... Place .................................... Date ...............................
DECLARATION
(3)
MANDATORY DOCUMENTSAgreement between Stock Broker and Client–NSE
This agreement is made and executed at ___________ this ______ day of _____ 20 ________ between :
M/s. Nikunj Stock Brokers Ltd. a body corporate, incorporated under the provisions of the the Companies Act, 1956, being a member of the National Stock Exchange (hereinafter called "the Exchange"), and having its registered office at (hereinafter called "the stock broker") of the one part;
And
Mr./Ms/M/s._______________, an individual/a sole proprietary concern/a partnership firm/a body corporate, registered/incorporated, under the provisions of the India Partnership Act. 1932/the Companies Act, 1956, having his/her/its residence/registered office at ______________________ (hereinafter called "the client") which expression shall, unless repugnant to the context or meaning thereof, be deemed to mean and include his/her heirs, executors, administrators and legal representatives/the partners for the time being of the said firm, the survivor or survivors of them and their respective heirs, executors, administrators and legal representatives/its successors, as the case may be, of the Other Part ;
WHEREAS the stock broker is registered as the Stock Broker of the Exchange with SEBI registration number INB23069133 in the Capital Market/Cash Segment and SEBI registration number INF23069133 in the futures Options Segment.
WHEREAS the client is desirous of investing/trading in those securities/contracts/other instruments admitted to dealings on the Exchange as defined in the Rules, Bye-laws and Regulations of the Exchange and circulars issued thereunder from time to time.
WHEREAS the client has satisfied itself of the capacity of the stock broker to deal in securities and/or deal in derivatives contracts and wishes to execute its orders through the stock broker and the client shall from time to time continue to satisfy itself of such capability of the stock broker before executing orders through the stock broker.
WHEREAS the stock broker has satisfied and shall continuously satisfy itself about the genuineness and financial soundness of the client and investment objectives relevant to the services to be provided; and
WHEREAS the stock broker has taken steps and shall take steps to make the client aware of the precise nature of the Stock broker's liability for business to be conducted, including any limitations, the liability and the capacity in which the stock broker acts.
WHEREAS the stock broker and the client agree to be bound by all the Rules, Bye-laws and Regulations of the Exchange and circulars issued thereunder and Rules and Regulations of SEBI and relevant notifications of Government authorities as may be in force from time to time.
Now, therefore, in consideration of the mutual understanding as set forth in this agreement, the parties thereto have agreed to the following terms and conditions :
1. The client agrees to immediately notify the stock broker in writing if there is any change in the information in the 'client registration form' provided by the client to the stock broker at the time of opening of the account or at any time thereafter.
2. The stock broker declares that it has brought the contents of the risk disclosure document to the notice of client and made him aware of the significance of the said document. The client agrees that :
a. He has read and understood the risks involved in trading on a stock exchange.
b. He shall be wholly responsible for all his investment decisions and trades.
c. The failure of the client to understand the risk involved shall not render a contract as void or voidable and the client shall be and shall continue to be responsible for all the risks and consequences for entering into trades in the segments in which the client chose to trade.
d. He is liable to pay applicable initial margins, withholding margins, special margins or such other margins as are considered necessary by the stock broker or the Exchange or as may be directed by SEBI from time to time as applicable to the segment(s) in which the client trades. The stock broker is permitted in its sole and absolute discretion to collect additional margins (even though not required by the Exchange, Clearing House/Clearing Corporation or SEBI) and the client shall be obliged to pay such margins within the stipulated time.
e. Payment of margins by the client does not necessarily imply complete satisfaction of all dues. In spite of
Bldg. No.-5, BN Block Central Market, Shalimar Bagh, Delhi-110088
8
M-2
(3)
(3)
consistently having paid margins, the client may, on the closing of its trade, be obliged to pay (or entitled to receive) such further sums as the contract may dictate/require.
3. The Client agrees to pay to the stock broker brokerage and statutory levies as are prevailing from time to time and as they apply to the Client's account, transactions and to the services that stock broker renders to the Client. The stock broker agrees that it shall not charge brokerage more than the maximum brokerage permissible as per the rules, regulations and bye-laws of the relevant stock exchange/SEBI.
4. The client agrees to abide by the exposure limits, if any, set by the stock broker or by the Exchange or Clearing Corporation or SEBI from time to time.
5. Without prejudice to the stock broker's other rights (including the right to refer a matter to arbitration), the stock broker shall be entitled to liquidate/close out all or any of the client's positions for non-payment of margins or other amounts, outstanding debts, etc. and adjust the proceeds of such liquidation/close out, if any, against the client's liabilities/obligations. Any and all losses and financial charges on account of such liquidation/closing-out shall be charged to and borne by the client.
6. The stock broker agrees that the money/securities deposited by the client shall be kept in a separate account, distinct from his/its own account or account of any other client and shall not be used by the stock broker for himself/itself or for any other client or for any purpose other than the purposes mentioned in SEBI Rules and Regulations circulars/guidelines/Exchanges Rules/Regulations/Byelaws and circulars.
7. The client agrees to immediately furnish information to the stock broker in writing, if any winding up petition or insolvency petition has been filed or any winding up or insolvency order or decree or award is passed against him or if any litigation which may have material bearing on his capacity has been filed against him.
8. The stock broker agrees to inform the client and keep him apprised about trading/settlement cycles, delivery/payment schedules, any changes therein from time to time, and it shall be the responsibility in turn of the client to comply with such schedules/procedures of the relevant stock exchange.
9. In the event of death or insolvency of the client or his/its otherwise becoming incapable of receiving and paying for or delivering or transferring securities which the client has ordered to be bought or sold, stock broker may close out the transaction of the client and claim losses, if any, against the estate of the client. The client or his successors, heirs and assigns shall be entitled to any surplus which may result there from.
10. The stock broker agrees that it shall co-operate in redressing grievances of the client in respect of transactions routed through it and in removing objections for bad delivery of shares, rectification of bad delivery, etc. in respect of shares and securities delivered/to be delivered or received/to be received by the client.
11. The stock broker shall continue to be responsible for replacing bad deliveries of the client in accordance with applicable "Good & bad delivery norms" even after termination of the agreement and shall be entitled to recover any loss incurred by him in such connection from the client.
12. The stock broker shall ensure due protection to the client regarding client's rights to dividends, rights or bonus shares, etc. in respect of transactions routed through it and it shall not do anything which is likely to harm the interest of the client with whom and for whom it may have had transactions in securities.
13. The client and the stock broker agreed to refer any claims and/or disputes to arbitration as per the Rules, Byelaws and Regulations of the Exchange and circulars issued thereunder as may be in force time to time.
14. The stock broker hereby agrees that he shall ensure faster settlement of any arbitration proceedings arising out of the transactions entered into between him and the client and that he is liable to implement the arbitration awards made in such proceedings.
15. Information about default in payment/delivery and related aspects by a client shall be brought to the notice of the relevant stock Exchange(s). In case where defaulting client is a corporate entity/partnership/proprietary firm or any other artificial legal entity, then the name(s) of director(s)/promoter(s)/Partner(s)/Proprietor as the case may be, shall also be communicated to the relevant stock exchange(s).
16. The stock broker and the client agree to reconcile their accounts at the end of each quarter with reference to all settlements where payouts have been declared during the quarter.
17. The stock broker and the client agree to abide by any award passed by the Ombudsman under the SEBI (Ombudsman) Regulations, 2003.
18. The stock broker and the client declare and agreed that the transactions executed on the Exchange are subject to Rules, Byelaws and Regulations and circulars issued thereunder of the Exchange and all parties to such trade shall have submitted to the jurisdiction of such court as may be specified by the Byelaws and Regulations of the Exchange for the purpose of giving effect to the provisions of the Rules, Byelaws and Regulations of the
9 (3)
Exchange and the circulars issued thereunder.
19. The instruction issued by an authorized representative. If any, of the client shall be binding on the client in accordance with the letter authorizing the said representative to deal on behalf of the said client.
20. Where the Exchange cancels trade(s) suo moto all such trades including the trade/s. done on behalf of the client shall ipso facto stand cancelled.
21. This agreement shall forthwith terminate; if the stock broker for any reason ceases to be a member of the stock exchange including cessation of membership by reason of the stock broker's default, death, resignation or expulsion or if the certificate issued by the Board is cancelled.
22. The Stock broker and the client shall be entitled to terminate this agreement without giving any reasons to the other party, after giving notice in writing of not less than one month to the other parties. Notwithstganding any such termination, all rights, liabilities and obligations of the parties arising out of or in respect of transactions entered into prior to the termination of this agreement shall continue to subsist and vest in/be binding on the respective parties or his/its respective heirs, executors, administrators, legal representatives or successors, as the case may be.
23. In addition to the specific rights set out in this Agreement, the stock broker and the client shall be entitled to exercise any other rights which the stock broker or the client may have under the Rules, Bye-laws and Regulations of the Exchange and circulars issued thereunder or Rules and Regulations of SEBI.
24. Words and expressions which are used in this Agreement, but which are not defined herein shall, unless the context otherwise requires, have the same meaning as assigned thereto in the Rules, Byelaws and Regulations of the Exchange and circulars issued thereunder.
25. The provisions of this agreement shall always be subject to Government notifications, any rules, regulations, guidelines and circulars issued by SEBI and Rules, Regulations and Bye laws of the relevant stock exchange that may be in force from time to time.
26. The stock broker hereby undertakes to maintain the details of the client as mentioned in the client registration from or any other information pertaining to the client in confidence and that it shall not disclose the same to any person/authority except as required under any law/regulatory requirements; Provided however that the stock broker may so disclose information about its his client to any person or authority with the express permission of the client.
This agreement can be altered, amended and/or modified by the parties mutually in writing without derogating from the contents of this Agreement. Provided however, if the rights and obligations of the parties hereto are altered by virtue of change in Rules and regulations of SEBI Bye-laws, Rules and Regulations of the relevant stock Exchange, such changes shall be deemed to have been incorporated in modification of the rights and obligations of the parties mentioned in this agreement.
IN WITNESS THEREOF the parties to the Agreement have caused these presents to be executed as of the day and year first above written
The client's Signature/Authorised Signatory : The stock broker's Signature/Authorised Signatory :
Signed by : Signed by :
Title : Title :
Name of the client : Name of the stock broker : Nikunj Stock Brokers Ltd.
Note : All references to the specific quantity/rate/fee mentioned in this agreement are subject to change from time to time, as so agreed to in writing between the parties.
10 (3)
COMBINED RISK DISCLOSURE DOCUMENT FOR CAPITAL MARKET/CASH SEGMENT CURRENCY DERIVATIVES AND FUTURES & OPTIONS SEGMENT
This document is issued by the member of the National Stock Exchange of India (hereinafter referred to as "NSE")/The United Stock Exchange of India (hereinafter referred to as "USE") which has been formulated by the Exchanges in coordination with the Securities and Exchange Board of India (hereinafter referred to as "SEBI") and contains important information on trading in Equities and Derivatives Segments of NSE/USE. All prospective constituents should read this document before trading on any segment of the Exchanges.
NSE/USE/SEBI does neither singly or jointly and expressly nor impliedly guarantee nor make any representation concerning the completeness, the adequacy or accuracy of this disclosure document nor has NSE/USE/SEBI endorsed or passed any merits of participating in the trading segments. This brief statement does not disclose all the risks and other significant aspects of trading.
In the light of the risks involved, you should undertake transactions only if you understand the nature of the contractual relationship into which you are entering and the extent of your exposure to risk.
You must know and appreciate that investment in Equity shares, derivative or other instruments traded on the Stock Exchange(s), which have varying element of risk, is generally not an appropriate avenue for someone of limited resources/limited investment and/or trading experience and low risk tolerance. You should therefore carefully consider whether such trading is suitable for you in the light of your financial condition. In cash you trade on NSE/USE and suffer adverse consequences or loss, you shall be solely responsible for the same and NSE/USE, its Cleaning Corporation/Clearing House and/or SEBI shall not be responsible, in any manner whatsoever, for the same and it will not be open for you to take a plea that no adequate disclosure regarding the risks involved was made or that you were not explained the full risk involved by the concerned member. The constituent shall be solely responsible for the consequences and no contract can be rescinded on that account. You must acknowledge and accept that there can be no guarantee of profits or no exception from losses while executing orders for purchase and/or sale of a security or derivatives being traded on NSE/USE.
It must be clearly understood by you that your dealings on NSE/USE through a member shall be subject to your fulfilling certain formalities set out by the member, which may interalia include your filling the know your client form, client registration form, execution of an agreement, etc., and are subject to the Rules, Byelaws and Regulations of NSE/USE and its Clearing Corporation, guidelines prescribed by SEBI and in force from time to time and Circulars as may be issued by NSE/USE or its Clearing Corporation/Clearing House and in force from time to time.
NSE/USE does not provide or purport to provide any advice and shall not be liable to any person who enters into any business relationship with any trading member and/or sub-broker of NSE/USE and/or any third party based on any information contained in this document. Any information contained in this document must not be construed as business advice/investment advice. No consideration to trade should be made without thoroughly understanding and reviewing the risks involved in such trading. If you are unsure, you must seek professional advice on the same.
In considering whether to trade or authorize someone to trade for you, you should be aware of or must get acquainted with the following :
1. BASIC RISKS INVOLVED IN TRADING ON THE STOCK EXCHANGE (EQUITY AND OTHER INSTRUMENTS)
1.1 Risk of Higher Volatility :
Volatility refers to the dynamic changes in price that securities undergo when trading activity continues on the Stock Exchange. Generally, higher the volatility of a security/contract, greater is its price swings. There may be normally greater volatility in thinly traded securities/contracts than in active securities/contracts. As a result of volatility, your order may only be partially executed or not executed at all, or the price at which your order got executed may be substantially different from the last traded price or change substantially thereafter, resulting in notional or real losses.
1.2 Risk of Lower Liquidity :
Liquidity refers to the ability of market participants to buy and/or sell securities/contracts expeditiously at a competitive price and with minimal price difference. Generally, it is assumed that more the numbers of orders
MANDATORY DOCUMENTS
11 (3)
M-3
available in a market, greater is the liquidity. Liquidity is important because with greater liquidity, it is easier for investors to buy and/or sell securities/contracts swiftly and with minimal price difference, and as a results, investors are more likely to pay or receive a competitive price for securities/contracts purchased or sold. There may be a risk of lower liquidity in some securities/contracts as compared to active securities/contracts. As a result, your order may only be partially executed, or may be executed with relatively greater price difference or may not be executed at all.
1.2.1 Buying/selling without intention of giving and/or taking delivery of a security, as part of a day trading strategy, may also result into losses, because in such a situation, security may have to be sold/purchased at a low/high prices, compared to the expected price levels, so as not to have any obligation to deliver/receive a security.
1.3 Risk of Wider Spreads :
Spread refers to the difference in best buy price and best sell price. It represents the differential between the price of buying a security and immediately selling it or vice versa. Lower liquidity and higher volatility may result in wider than normal spreads for less liquid or illiquid securities/contracts. This in turn will hamper better price formation.
1.4 Risk-reducing orders :
Most Exchanges have a facility for investors to place "limit orders", "stop loss orders etc.". The placing of such orders (e.g., "stop loss" orders, or "limit" orders) which are intended to limit losses to certain amounts may not be effective many a time because rapid movement in market conditions may make it impossible to execute such orders.
1.4.1 A "market" order will be executed promptly, subject to availability of orders on opposite side, without regards to price and that, while a customer may receive a prompt execution of a "market" order, the execution may be at available prices of outstanding orders, which satisfy the order quantity, on price time priority. It may be understood that these prices may be significantly different from the last traded price or the best price in that security.
1.4.2 A "limit" order will be executed only at the "limit" price specified for the order or a better price. However, while the customer receives price protection, there is a possibility that the order may not be executed at all.
1.4.3 A stop loss order is generally placed "away" from the current price of a stock/contract, and such order gets activated if and when the stock/contract reaches, or trades through, the stop price. Sell stop orders are entered ordinarily below the current price, and buy stop orders are entered ordinarily above the current price. When the stock reaches the pre-determined price, or trades through such price, the stop loss order converts to a market/limit order and is executed at the limit or better. There is no assurance therefore that time to limit order will be executable since a stock/contract might penetrate the pre-determined price, in which case, the risk of such order not getting executed arises, just as with a regular limit order.
1.5 Risk of News Announcements :
Issuers make news announcements that may impact the price of the securities/contracts. These announcements may occur during trading, and when combined with lower liquidity and higher volatility, may suddenly causes an unexpected positive or negative movement in the price of the security/contract.
1.6 Risk of Rumours :
Rumours about companies at times float in the market through word of mouth, newspapers, websites or news agencies, etc. The investors should be wary of and should desist from acting on rumours.
1.7 System Risk :
High volume trading will frequently occur at the market opening and before market close. Such high volumes may also occur at any point in the day. These may cause delays in orders execution or confirmation.
1.7.1 During periods of volatility, on account of market participants continuously modifying their order quantify or prices or placing fresh orders, there may be delays in order execution and its confirmations.
1.7.2 Under certain market conditions, it may be difficult or impossible to liquidate a position in the market at a reasonable price or at all, when there are no outstanding orders either on the buy side or the sell side, or if trading is halted in a security due to any action on account of unusual trading activity or stock hitting circuit filters or for any other reason.
12 (3)
1.8 System/Network Congestion :
Trading on NSE/USE is in electronic mode, based on satellite/leased line based communications, combination of technologies and computer systems to place and route orders. Thus, there exists a possibility of communication failure or system problems or slow or delayed response from system or trading halt, or any such other problem/glitch whereby not being able to establish access to the trading system/network, which may be beyond the control of and may result in delay in processing or not processing buy or sell orders either in part or in full. You are cautioned to note that although these problems may be temporary in nature, but when you have outstanding open positions or unexecuted orders, these represent a risk because of your obligations to settle all executed transactions.
2. As far as derivatives segment is concerned, please note and get yourself acquainted with the following additionalfeatures :
2.1 Effect of "Leverage" or "Gearing"
The amount of margin is small relative to the value of the derivatives contract so the transactions are 'leveraged' or 'geared'.
Derivatives trading, which is conducted with a relatively small amount of margin, provides the possibility of great profit or loss in comparison with the principal investment amount. Thus transactions in derivatives carry a high degree of risk. You should therefore completely understand the following statements before actually trading in derivatives and also trade with caution taking into account one's circumstances, financial resources, etc. If the prices move against you, you may lose a part of or whole margin equivalent to the principal investment amount in a relatively short period of time. Moreover, the loss may exceed the original margin amount.
1. Futures trading involves dally settlement of all positions. Every day the open positions are marked to market based on the closing level of the index. If the index stock has moved against you, you will be required to deposit the amount of loss (notional) resulting from such movement. This margin will have to be paid within a stipulated time frame, generally before commencement of trading next day.
2. If you fail to deposit the additional margin by the deadline or if an outstanding debt occurs in your account, the broker/member may liquidate a part of or the whole position or substitute securities. In this case, you will be liable for any losses incurred due to such close-outs.
3. Under certain market conditions, an investor may find it difficult or impossible to execute transactions. For example, this situation can occur due to factors such as illiquidity i.e. when there are insufficient bids or offers or suspension of trading due to price limit or circuit breakers etc.
4. In order to maintain market stability, the following steps may be adopted : changes in the margin rate, increases in the cash margin rate or others. These new measures may also be applied to the existing open interests. In such conditions, you will be required to put up additional margins or reduce your positions.
5. You must ask your broker to provide the full details of the derivatives contracts you plan to trade i.e. the contract specifications and the associated obligations.
2.2 Risk of Option holders
1. An option holder runs the risk of losing the entire amount paid for the option in a relatively short period of time. This risk reflects the nature of an option as a wasting asset which becomes worthless when it expires. An option holder who neither sells his option in the secondary market nor exercises it prior to its expiration will necessarily lose his entire investment in the option. If the price of the underlying does not change in the anticipated direction before the option expires to an extent sufficient to cover the cost of the option, the investor may lose all or a significant part of his investment in the option.
2. The Exchange may impose exercise restrictions and have absolute authority to restrict the exercise of options at certain times in specified circumstances.
2.3 Risks of Option Writers
1. If the price movement of the underlying is not in the anticipated direction, the option writer runs the risks of losing substantial amount.
13 (3)
2. The risk of being an option writer may be reduced by the purchase of other options on the same underlying interest and thereby assuming a spread position or by acquiring other types of hedging positions in the options markets or other markets. However, even where the writer has assumed a spread or other hedging position, the risks may still be significant. A spread position is not necessarily less risky than a simple 'long' or 'short' position.
3. Transactions that involve buying and writing multiple options in combination, or buying or writing options in combination with buying or selling short the underlying interests, present additional risks to investors. Combination transactions, such as option spreads, are more complex than buying or writing a single option. And it should be further noted that, as in any area of investing, a complexity not well understood is, in itself, a risk factor. While this is not to suggest that combination strategies should not be considered, it is advisable, as is the case with all investments in options, to consult with someone who is experienced and knowledgeable with respect to the risk and potential rewards of combination transactions under various market circumstances.
3. GENERAL
3.1 Commission and other charges
Before you begin to trade, you should obtain a clear explanation of all commission, fees and other charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss.
3.2 Deposited cash and property
You should familiarise yourself with the protections accorded to the money or other property you deposit particularly in the event of a firm insolvency or bankruptcy. The extent to which you may recover your money or property may be governed by specific legislation or local rules. In some jurisdictions, property which has been specifically identifiable as your own will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall. In cash of any dispute with the member, the same shall be subject to arbitration as per the byelaws/regulations of the Exchange.
3.3 For rights and obligations of the clients, please refer to Annexure-1 enclosed with this document.
3.4 The term 'constituent' shall mean and include a client, a customer or an investor, who deals with a member for the purpose of acquiring and/or selling of securities through the mechanism provided by NSE/USE.
3.5 The term 'member' shall mean and include a trading member, a broker or a stock broker, who has been admitted as such by NSE/USE and who holds a registration certificate as a stock broker from SEBI.
I hereby acknowledge that I have received and understood this risk disclosure statement and Annexure-1 containing my rights and obligations.
Customer Signature
(If Partner, Corporate, or other Signatory, then attest with company seal.)
Date : ____________________
14 (3)
INVESTORS' RIGHTS AND OBLIGATIONS 1.1 You should familiarise yourself with the protection accorded to the money or other property you may deposit
with your member, particularly in the event of a default in the stock market or the broking firm's insolvency or bankruptcy.
1.1.1 Please ensure that you have a documentary proof of your having made deposit of such money or property with the member, stating towards which account such money or property deposited.
1.1.2 Further, it may be noted that the extent to which you may recover such money or property may be governed by the By-laws and Regulations of NSE/USE and the scheme of the Investors' Protection Fund in force from time to time.
1.1.3 Any dispute with the member with respect to deposits, margin money, etc. and producing an appropriate proof thereof, shall be subject to arbitration as per the Rules, Byelaws / Regulations of NSE/USE or Clearing Corporation/Clearing House.
1.2 Before you begin to trade, you should obtain a clear idea from your member of all brokerage, commissions, fees and other charges which will be levied on you for trading. These charges will affect your net cash inflow or outflow.
1.3 You should exercise due diligence and comply with the following requirements of the NSE/USE and/or SEBI :
1.3.1 Please deal only with and through SEBI registered members of the Stock Exchange and are enabled to trade on the Exchange. All SEBI registered members are given a registration no., Which may be verified from SEBI. The details of all members of NSE/USE and whether they are enabled to trade may be verified from NSE/USE website (www.nseindia.com / ww.useindia.com).
1.3.2 Demand any such information, details and documents from the member, for the purpose of verification, as you may find it necessary to satisfy yourself about his credentials.
1.3.3 Furnish all such details in full as are required by the member as required in "Know Your Client' Form, which may also include details of PAN or Passport or Driving Licence or Voters Id, or Ration Card, bank account and depository account, or any such details made mandatory by SEBI/NSE at any time, as is available with the investor.
1.3.4 Execute a broker-client agreement in the form prescribed by SEBI and/or the Relevant Authority of NSE/USE or its Clearing Corporation / Clearing House from time to time, because this may be useful as a proof of your dealing arrangements with the member.
1.3.5 Give any order for buy or sell of a security in writing or in such form or manner, as may be mutually agreed. Giving instructions in writing ensures that you have proof of your intent, in case of disputes with the member.
1.3.6 Ensure that a contract note is issued to you by the member which contains minute records of every transaction. Verify that the contract note contains details of order no., trade number, trade time, trade price, trade quantity, name of security, client code allotted to you and showing the brokerage separately. Contract notes are required to be given/sent by the member to the investors latest on the next working day of the trade. Contract note can be issued by the member either in electronic form using digital signature as required, or in hard copy. In case you do not receive a contract note on the next working day or at a mutually agreed time, please get in touch with the Investors Grievance Cell of NSE/USE, without delaying.
1.3.7 Facility of Trade Verification is available on NSE/USE website (www.nseindia.com/ www.useindia.com), where details of trade as mentioned in the contract note may be verified from the trade date upto five trading days. Where trade details on the website, do not tally with the details mentioned in the contract note, immediately get in touch with the investors Grievance Cell of NSE/USE.
MANDATORY DOCUMENTS
15
M-4
Annexure-1
(3)
1.3.8 Ensure that payment/delivery of securities against settlement is given to the concerned member within one working day prior to the date of pay-in announced by NSE/USE or it's Clearing House. Payments should be made only by account payee cheque in favour of the firm/company of the trading member and a receipt or acknowledgement towards what such payment is made be obtained from the member. Delivery of securities is made to the pool account of the member rather than to the beneficiary account of the member.
1.3.9 In case pay-out of money and/or securities is not received on the next working day after date of pay-out announced by NSE/USE or its Clearing Corporation/Clearing House, please follow-up with the concerned member for its release. In case pay-out is not released as above from the member within five working days, ensure that you lodge a complaint immediately with the Investors' Grievance Cell of NSE/USE.
1.3.10 Every member is required to send a complete 'Statement of Accounts', for both funds and securities settlement to each of its constituents, at such periodicity as may be prescribed by time to time. You should report errors, if any, in the Statement immediately, but not later than 30 calendar days of receipt thereof, to the member. In case the error is not rectified or there is a dispute, ensure that you refer such matter to the investors Grievance Cell of NSE/USE, without delaying.
1.3.11 In case of a complaint against a member/registered sub-broker, you should address the complaint to the Office as may be specified by NSE/USE from time to time.
1.4 In case where a member surrenders his membership, NSE/USE gives a public notice inviting claims, if any, from investors. In case of a claim, relating to "transactions executed on the trading system" of NSE/USE, ensure that you lodge a claim with NSE/USE within the stipulated period and with the supporting documents.
1.5 In case where a member is expelled from trading membership or declared a defaulter, NSE/USE gives a public notice inviting claims, if any, from investors. In case of a claim, relating to "transactions executed on the trading system" of NSE/USE, ensure that you lodge a claim with NSE/USE within the stipulated period and with the supporting documents.
1.6 Claims against a defaulter/expelled member found to be valid as prescribed in the relevant Rules/Bye-laws and the scheme under the Investors' Protection Fund (IPF) may be payable first out of the amount vested in the Committee for Settlement of Claims against Defaulters, on pro-rata basis if the amount is inadequate. The balance amount of claims, if any, to a maximum amount of Rs. 10 lakhs per investor claim, per defaulter/expelled member may be payable subject to such claims being found payable under the scheme of the IPF.
16 (3)
MANDATORY DOCUMENTS
2A. Setting up client's exposure limits
The exposure limit of a client is the function of margin given by the client to broker in Exchange specified form. The correlation between the margin and limit will be defined by NSBL's assessment of market volatility/scrip volatility and the risk profiling of the client at that point of time.
2B. Sufficient Margin Maintenance for Placing Orders
The clients have to maintain sufficient margin before placing the order. The requirement of margin will be intimated by NSBL from time to time depending on the market condition, rules framed by the concerned Exchange or SEBI, and assessment of the clients risk profile by NSBL. This information would be communicated to the client orally or over the phone or in writing and decision of NSBL would be final in this regard. The margin would vary from 0% to 100% of the open position of the client. Open position would mean all pending orders and transactions, both purchase and sale, of the client which are either unpaid or undelivered, respectively. However, the client would be responsible for all of their orders including any order which exceeds the limit available based on their available margin. The client should on a regular basis enquire about the margin requirement to ensure smooth transaction.NSBL may require the client to immediately deposit funds or collateral into their account prior to any applicable settlement date in order to assure due performance of their open contractual commitments. If the client does not provide the additional collateral, the client hereby understands and acknowledges that NSBL has the right to sell any or all the securities and other properties available with it and can cancel any or all open orders and/or closes any or all outstanding contracts to raise the required margin. The client will be liable to bear any loss arising out of the same.
Clients have to pay margin for the open position they may have at any point of time in the following manner:
a. Margin in the form of money deposit. (Cash Margin)
b. Margin in the form of specified securities to be calculated at a specified percentage of value of the securities depending on the scrip as specified by NSBL from time to time. All deliveries against margin are to be made by transferring the shares from the notified DP account of the client to the designated Beneficiary Account of NSBL :
For NSE cash & FO Segment – DP Id 302994 Client Id- 10021243
c. Margin in the form of FD (as specified by NSBL)
Capital Market Segment1. Order Entry & Execution :
1. The order placed by the clients over the phone or orally from the office would be entered into the trading system and after due surveillance would be transmitted to concerned Exchange instantaneously within a few seconds. But some orders at the discretion of Nikunj Stock Brokers Ltd. (NSBL) may be subject to manual review and clearance which may cause delay in processing the order or rejection of the order. The client agrees that placing an order, including a market order does not guarantee execution of the order. It is understood by the client that with respect to market order, the order will be executed at a price which may be different from the price at which the security is traded when their order was entered into system The clients are required to take confirmation of their order immediately or at least once a day either in person or over telephone which would be deemed to have the same effect as given in person.
The orders placed by the clients would be their own investment decisions and the clients will not hold NSBL or any of its employees or associates, liable for any losses incurred by them. This extends to any decisions made by the client on the basis of any information that may be made available on the website of NSBL.
However NSBL shall not be liable for failure of the system or for any loss, damage or other costs arising in, out of:
(a) Telecom network or system failures including failure of ancillary or associated systems which forms or does not form part of trading workstation installation, or fluctuation of power, or other environmental conditions : or
(b) Act of god, fire, flood, war, act of violence, or any other similar occurrence: or
(c) Any incidental, special or consequential damages including without limitation of loss or profit.
1A. Cancellation or Modification of Orders
The execution or order cancellation or modification is not guaranteed. Cancellation of orders is possible only if the original order remains pending at the Exchange. Unless otherwise specified by NSBL, any order not executed at the end of the day shall stand cancelled.
1B. Refusal of orders for penny stocks
Order window for illiquid and Z category scrip can be locked centrally so that no order can be punched without specific manual approval from the Centralized RMS (Risk Management System). Sale orders for such scrips are allowed only against 100% upfront delivery by the concerned clients. Buy orders are allowed only against upfront deposit of full specified margin.
POLICIES AND PROCEDURES
17
M-5
(3)
obligations have to be honoured by transferring the shares from the declared DP account of the client to the Pool Account of NSBL :
For NSE cash segment –For NSE pay in – NSDL POOL- CMBP ID- IN 563229
DP ID-IN 302994 Client ID-10002949
CDSL A/c - 1201410000006487
If shares are transferred by client to any other DP account other than POOL account mentioned in 5A of Terms & Conditions, requiring retransfer / movement of stock to the POOL account to meet pay-in obligation, a charge of Rs.15/- per ISIN will be levied.
B. Redelivery From Purchase of Earlier Settlement: If a client has purchased some securities in an earlier settlement and has not taken delivery of the same/ the securities have remained undelivered to him/her and if he/she sells the same in the current settlement then the shares purchased in earlier settlements, the receipt of the same may be used to meet pay-in obligation for current settlement. The clients are cautioned that execution of a purchase order does not guarantee delivery of shares which may fail in case of short delivery from the concerned Exchange or the selling party. In all such cases clients are required to take a clear confirmation from NSBL about the delivery status of earlier purchase before proceeding with the sale of securities. NSBL will not be responsible for any losses if a short delivery takes place due to such short receipt in the earlier settlement.
C. Auction Of Securities : If the client fails to make delivery of deliverable shares as per the pay- in schedule of Exchange then the securities will be auctioned as per the rules of the concerned Exchange or as per Inter Client Auction rules mentioned in point 8, whichever is applicable. Consequently client will be responsible for any resulting losses and all associated costs including penalty as specified in point 10a.
6. Payment to Client against Sale of Securities : ( i.e. Payout of Funds)
Proceeds of the sale cannot be paid to client until securities have been delivered to the concerned Exchange Clearing House and payout of fund is received from the concerned Exchange. This precautionary measure is taken by NSBL to avoid inconvenience sometimes caused due to short delivery of shares. It is agreed by the client that he/she is aware of the different pay out dates of different types of settlement cycles followed by the concerned Exchange and payments would be released within the concerned Exchange specified time schedule, prevalent at the time.
The client agrees and authorizes NSBL to act at its discretion of merging balances kept under various accounts of different segments such as margin and settlement account of one exchange/segment to nullify the debit in any other account of the client of another exchange/segment held with NSBL without taking any further instructions from the client.
NSBL shall make payment to client only after adjusting the credit standing in his account in one stock exchange with, if any, debit standing in his account under another exchange.
3. Payment from Client against Purchase of Securities : Payment for purchase of security has to be made by account payee cheque only from the notified bank a/c of the client only favoring 'Nikunj Stock Brokers Ltd' by T+ 1 day but not later than the due date for paying of funds to the concerned Exchange and not to any employee or purported representative of NSBL. The client shall not make any payments to NSBL through any third party account or an account of any other client of NSBL. It is understood by the client that the date on which clear funds are available in the bank account of NSBL would be treated as the date of having received the payment although a receipt may be issued at an earlier date for the cheque given by the client. Therefore, the clients are required to give the cheque sufficiently in advance so that the amount is credited in NSBL account before the due date. NSBL would present the cheques in normal clearing and would not be responsible for any delay due to clearing in the banking system. The client further undertakes that in case he fails to make payment of consideration to NSBL in respect of any one or more securities purchased by him before the pay-in date notified by the Exchange from time to time, NSBL can sell the securities at any time on the exchange as per the existing regulation in this respect prevalent at that point of time.
4. Delivery to Client of Securities Purchased By Them: Securities purchased by the clients will be delivered to the DP account of the client (as specified in the registration form by the client) by NSBL only if all the money, on any account, due from the client till the date of delivery is realised in full. Part delivery of securities based on part payment will not be allowed. Any error in giving the details regarding default DP account will be clients responsibility and will not hold NSBL responsible for any loss due to transfer of shares into the account as mentioned above.
The instruction for delivery to client account will be issued within the time schedule specified by the concerned Exchange, prevalent at the time. If the delivery could not be made on the due date, due to non-payment of dues by the client then the delivery will be released periodically only after the payment of the dues is realised in NSBL's A/c. But, non- payment of dues on due date may result in sale of such purchased securities at the cost and penalty of the client. In case the securities are unpaid on the pay-out date, same will be taken/transferred into the designated beneficiary account of NSBL to avoid SEBI pool penalty charges. A charge of Rs.15/- per security will be recovered by NSBL from the client in such cases.
5. Delivery From Clients Of Securities Sold By Them : (i.e. Pay In of securities)
A. Dematerialised Shares : The client should instruct his Depository Participants, sufficiently in advance, to transfer shares into the pool account of NSBL preferably on the same day i.e. trading day itself or latest before 9 a.m. on the respective settlement day as specified by the exchange and shall not cause delivery of shares to NSBL through any third party account or an account of any other client of NSBL. All deliveries against pay-in
18 (3)
(a) The concerned Exchange Weighted Average Price (WAP) for that particular scrip in that particular auction settlement, taken from the concerned Exchange Download;
(b) Highest purchase price plus 1.00% delivery brokerage, paid for by the purchaser(s) who have not been delivered the shares due to corresponding short delivery for that scrip in that particular settlement.
(c) In case WAP is not available, then auction day high prices and trading day high prices are compared with the highest purchase price as mentioned in (b) above, and the highest is taken as auction price.
It may be noted that to the above auction price, a penalty @ 1.00% will be levied in pursuance to Clause 10(a) of the terms and conditions.
As stated above, inter-client auction trades envisage debiting the client delivering short with the auction amount and crediting the corresponding purchaser with the equal amount, no brokerage being charged for auction trades. Hence debit/ credit notes are issued for inter-client auction trades. Auction contract notes will not be issued for inter-client auction trades because they are not trades in true sense of the term, but merely involve debiting and crediting the respective client accounts.
9. Square Off of Open Position :
The client agrees that NSBL would have the discretion to square off the position of the client in the foll owing circumstances :
a) In case the open position is neither squared off nor converted to delivery by client within the stipulated time.
b) In case the Mark to Market loss on the open position has reached the stipulated percentage of the margin with it and the client has not taken any steps either to replenish the margin or reduce the Mark to Market loss.
c) In all other cases where the margin or security placed by the client falls short of the requirement or where the limit given to the client has been breached or the client has defaulted on his existing obligation.
Client agrees that although the auto square off trigger point is predefined subsequent to which NSBL could exercise its discretion to carry out the square off within a reasonable period of time, the actual execution could happen at a price different from the trigger point and the client agrees to bear the loss based on actual executed price.
10. Charges
10 a. BROKERAGE, COMMISSION, FEES AND STATUTORY CHARGES :
i) The client agrees to pay the member brokerage, commission, fees, service tax and the other taxes and transaction expenses as they exist from time to time and as they ap ply to th e Client's Account and transactions and to the services that the Member renders to the client. The Client also
7 . Confirmations, Statements, Notices and Other Communications :
NSBL shall send the trade confirmation to the client within 24 hours in form of contract note cum bill and otherwise via branch office, fax, courier, registered A.D. at the postal address, telephone/fax nos. intimated by the client to NSBL.
The client understands that it is their responsibility to review upon first receipts all confirmations, statements, notices and other communications contained therein and shall be binding upon the client unless clients do not object in writing within 24 hours of receiving such document(s).
7A. Issue Of Digitally Signed Contract Notes in Electronic Mode:
The client understands that contract notes will be deemed to have been delivered and acknowledged by the client when it is sent to the e-mail id as specified by the client in the contact details window of the KYC. For this purpose record available in the electronic mode in back up of the approved software of the trading member will be deemed to be conclusive evidence of the despatch and confirmation and no further proof will be required. Further, the contract notes in electronic mode would be made available in the members' website in a secured way, which can be viewed by clients by entering their respective password.
The client understands that all information contained therein shall be binding upon the client, if the client does not object in writing within 24 hours of the sending of the contract note in the electronic mode by the broker.
Further, the client understands that such contract notes being sent electronically will have “Digital Signature” the term having the meaning as given in
(i ) www.sebi.gov.in (ii ) www.nseindia .com
7B. Wherever the ECNS have not been delivered to the client or has been rejected (bouncing of mails) by the e-mail ID of the client, NSBL shall send a physical contract note to the client within the stipulated time under the extant regulations of SEBI/Stock Exchanges and maintain the proof of delivery of such physical contract notes at the cost of client.
8. Shortages in obligations arising out of internal netting of trades, Inter Client Auction
In case, in any settlement, where both the purchase and sale position for any scrip are limited between two or more of our i.e. NSBL's clients only, such that the net position to the concerned Exchange in that settlement and for that scrip is 'Adjusted Net” or “NIL”; in such a situation if there is any short delivery then the resultant auction position will be inter client since both the legs i.e. the party delivering short and the corresponding purchaser are both NSBL's clients.
The client will be asked to cover the position from open market next day/auction day and the securities will be adjusted by delivering to buying party on the payout day of the auction settlement.
If the client does not cover his position next day, then for determining the auction price, highest of the following prices will be considered, the guiding principle being “purchaser should not loose”:
19 (3)
11. Reserve Bank of India Guidelines (RBI)
The client is aware that as per the RBI guidelines Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) are allowed to invest in the secondary capital markets in India through the portfolio investment scheme (PIS). These investments are governed and monitored on daily basis by the Reserve Bank of India. On reaching the aggregate ceiling limit as fixed by RBI from time to time, the RBI advises all designated bank branches to stop purchases on behalf of their NRIs/PIOs clients. The client hereby agrees to keep abreast of the ceiling limits on investments as published by RBI and authorises NSBL to reverse the transaction immediately on his behalf if such transaction breaches the ceiling limit.
12. Authorisation for On-Going Account
The client agrees that he is desirous of regular trading transaction through NSBL on an ongoing basis. The client thus authorises NSBL to adjust/withhold his funds and /or securities payout from the concerned Exchange with future funds and /or securities pay-in obligation that the client may have towards NSBL before transferring the funds and/or securities to his account. It is understood that no interest will be payable to the client on the amounts or securities so retained by NSBL.
13. Severability:
In the event of any provisions of this agreement being held to be or becoming invalid, unenforceable or illegal for any reason, such invalidity, non-enforceability or illegality shall attach only to such provision or condition and this agreement shall remain otherwise in full force apart from the said provision, which will be deemed deleted. The validity of the remaining provisions and conditions shall not be affected thereby and this agreement shall be carried out as if any such invalid or unenforceable provision or condition was not contained herein.
14. Conditions under which a client may not be allowed to take further position or the broker may close the existing position of a client :
a. NSBL may suspend the client account based on action taken by regulators or being part of list of debarred entities published by SEBI or is under investigation by any regulatory body or on notices received from statutory, Government or Local authorities and Income Tax, Service Tax, a judicial or a Quasi Judicial authority, or where the client is inactive for more than 6 months or where it deems prudent by NSBL for any specific reasons.
b. Without prejudice to the generality of the aforesaid, NSBL may suspend or terminate the Services without prior notice to the Client if the Client has breached any terms or conditions or if NSBL learns of the death, disability, bankruptcy or lack of legal capacity of the Client, or where in the perception of NSBL, the continuation of the Service could increase the risks to NSBL.
agrees that the Member may deduct and appropriate any of the aforesaid amount from any amount payable by the Member to the client.
ii) A schedule of the current brokerage, fees and commissions, applicable service and other taxes and other transaction expenses shall be provided by the Member on the Member's Web Site, and the Client agrees to keep himself updated in respect thereof. Following is the base role and actual sales may be different.
10 b. FAILURE TO GIVE DELIVERY OF SECURITIES : A delayed delivery charge will be levied on the value of securities delivered short. The charge will be @1.00% on the auctioned value subject to minimum of Rs. 25.00.
10 c. FAILURE TO PAY FUNDS :
I) A Late Payment Penalty will be levied at a certain percentage at the discretion of NSBL with maximum rate of @ 0.1% per day on the amount outstanding from the date when the payment is due till the day when the payment is received either by squaring off the position or by selling of securities lying with NSBL or, when the fund actually paid by the client. For the purpose of ascertaining amount outstanding, any credit in cash margin a/c (only) will also be considered.
II) A charge of Rs. 15/- per ISIN will be levied for the following movement of stocks due to delay in payment of fund.
a) From NSBL Designated Client Beneficiary Account to NSBL Pool Account for sell in NSE Cash Segment..
b) For pay out of stock to client's Beneficiary Account.
Minimum brokerage per scrip 5 paisa and Rs25/- per scrip per day.
Minimum brokerage per scrip 5 paisa
2.5% of Gross Premium Amount or Rs. 100/- per lot whichever is higher
1. Maximum ceiling of 2.5% in Intraday & Delivery in both segment2. Minimum Brokerage of Rs.25/- per scrip per day will be charged.2. Other charges like Service Tax, STT, Transaction charges, SEBI Charge, Stamp duty etc. as applicable.
Minimum brokerage per scrip 10 paisa and Rs25/- per scrip per day.
CASH
FUTURE
OPTION
IntradaySegment Delivery
2.5% of Gross Premium Amount or Rs. 100/- per lot whichever is higher
20 (3)
the M2M pay-in on behalf of the client to the Exchange.
ix. If the client takes fresh position in any security that has entered the prohibited range (for MWPL violation i.e. Market wise position limit violation) and as a result of which any penalty is imposed on NSBL by the concerned exchange, then the same will be recovered from the client.
15A. Futures
i) Futures trading involve daily settlement of all positions. Everyday the open positions are marked to Market based on the closing level of the index and the individual stock prices. If the index or the individual stock prices have moved against the client, he will be required to deposit the amount of loss (notional) resulting from such movement within the stipulated time period.
ii) In the futures Market following settlement obligations are to be full filled–
• Brokerage- Any transaction entered into will attract brokerage which will be debited from the clients account at the end of the day
• Profit & Loss on end of day(EOD) MTM on open position
• Profit & Loss on squared off position
• Service tax on Brokerage , turnover Tax and Securities Transaction Tax
iii) All future obligations are settled by the exchange on T + 1 basis.
15B. Options
i) The following settlement obligations are to be full filled in the options segment–
• Brokerage- Any transaction entered into will attract brokerage which will be debited from the clients account at the end of the day
• Premium payable or receivable
• Profit on Exercise or Loss on assignment
• Service tax on Brokerage, turnover Tax and Securities Transaction Tax
ii) For options contract, in case a client has a sell position, the contract may be assigned to him i.e. the underlying will have to be bought in case of PUT and sold in case of Call. However since options are currently cash settled, the client would have to pay or receive the money.
iii) The Assignment process is initiated and completely decided by the exchange on a random basis. Hence it is not necessary that the assignment will take place even if the position is in-the-money.
i. In this segment, margin computation is done by the Exchange through an on line position monitoring and margining system called SPAN (Standard Portfolio Analysis of Risk).
ii. Margin percentage may differ from stock to stock depending on the risk involved in the stock which depends upon liquidity and volatility of the respective stock besides the general market conditions. Margin percentage can even be changed during the life of the contract depending on the volatility in the market.
iii. The client shall be required to pay an initial margin upfront on or before creating a position in any derivatives contract and further the client should provide additional margin money when called upon to do so as required in respect of position taken by him in this segment. NSBL has the right to reject orders if the required margin has not been deposited.
iv. The client shall pay the daily mark to market loss for all my/our open position in index and individual stock futures contract and pay the final settlement loss on expiry of the index and individual stock futures contract/ index option contracts as the case may be as charged by NSCCL to NSBL by 9.00 a.m. next day.
v. The client shall pay the daily premium payable for all my/our open positions in index and individual stock options contract as charged by NSCCL to NSBL before execution of the contracts.
vi. The client shall pay the interim as well as final exercise settlement value for all his/her short position on individual stock options contract which has been assigned against him, as charged by NSCCL to NSBL by end of next day.
vii. NSBL is authorised to retain with them the MTM profit, daily premium receivable, interim exercise settlement value receivable on Futures and options contracts and settle the same on monthly basis or on demand by the client after deducting dues, if any.
viii. If the client have been or may become unable to meet, satisfy, discharge or fulfill any obligation or liability or commitment or any part there of, then NSBL may at any time thereafter and without giving any notice to the client can close out any part or all of the Futures and options contracts held in his account with NSBL. Any or all such incidental expenses incurred by NSBL in this regards will be recovered from the client. If the clients after fulfilling his margin requirement fails to meet his/her M2M loss either in part or full then the company will charge penalty at appropriate rates for meeting
21 (3)
Client has been received by NSBL until NSBL has confirmed receipt of such order. However, due to technical or other factors, an order which has been
Client's Signature : _____________________
received by NSBL may not be immediately confirmed to the Client.
17. Prohibitory Clause
NSBL should not be held responsible for any incorrect information supplied by the client during the time of registration. The client is thus requested to take adequate care in providing correct details under all heads viz. bank account details, e-mail address etc. in the registration form. Any subsequent change in the information provided by the client should be intimated to NSBL by the client through written submission only.
18. Temporarily suspending or closing a client's account at the client's request :
In addition to the termination clauses in stock Broker–Client Agreement ,the client shall not be entitled to terminate this agreement so long as any amount is payable or securities are deliverable by the client to NSBL.
Further NSBL reserves the right to send the uncollected documents to the client's declared a dd re ss through U.C.P. / Courier / any other means of post and the resultant postal charges will be debited to the client's account.
19. Deregistering a Client :
The stock broker and the client shall be entitled to deregister the client trading account without giving any reasons to the other party, after giving notice in writing of not less than one month to the other parties. Notwithstanding any such termination, all rights, liabilities and obligations of the parties arising out of or inrespect of transactions entered into prior to the deregistering shall continue to subsist and vest in / be binding on the respective parties or his / its respective heirs, executors, administrators, legal representatives or successors, as the case may be.
NSBL may also initiate action for deregistering a client on basis of information found in websites of CIBIL, Watch out investors, world check or client having suspicious back ground, link with suspicious organization, etc.
16. Additional Conditions In Relation To Electronic Orders
a) The Client confirms that from time to time he would continue to read and understand the Exchange Provisions and the terms and conditions in relation to electronic orders to be placed through NSBL's Web Site.
b) The Client will be entitled to a User Name, Password or other identification or security code (by whatever name called) which will enable him to access NSBL's System or Service through NSBL's Web Site for availing of the Service.
c) The Client is aware that NSBL's System itself randomly generates the Initial Password, encrypts and passes on the Password to the Client, and that NSBL is not aware o f the same. The Client agrees and undertakes to immediately change his Initial Password upon receipt thereof. The Client is aware that subsequent Passwords also are not known or available to NSBL.
d) The Client shall log off from the www.nikunjonline.com Service at any time the Client is not accessing or using the www.nikunjonline.com Service and any liability incurred to the Client as a consequence of the Client not logging off the Service shall be borne solely by the Client.
e) The Client shall be responsible for keeping the Username and Password confidential and secure and shall be solely responsible for all orders entered and transactions done by any person whosoever through NSBL's System using the Client's Username, and Password whether or not such person was authorised to do so.
f) If the Client is unable to change his Password by reason of his having forgotten his Password or his Password having been unauthorisedly changed by some other person or for any other reason then the Client shall immediately request NSBL in writing to discontinue his old Password. NSBL's System shall generate a new Password for the Client which shall be communicated to the Client.
g) At no point in time shall NSBL be liable for any loss, whether notional or actual, that may be suffered by the Client on account of the misuse of the Password and the Client shall be liable and responsible for the same.
h) NSBL shall not be deemed to have received an order unless and until it has actually received the order in the order-receiving module of NSBL's System. The Client shall not be entitled to presume that any order transmitted by the
22 (3)
This agreement is made at ..................................... on this ........................... day of ..................... 2010 between NIKUNJ STOCK BROKER LTD. (Member of National Stock Exchange of India Ltd.) with SEBI Regn. No. INB/F230691333 hereinafter called MEMBER and having its regd. office at Building No. 5, 2nd Floor, B.N. Block Central Market, Shalimar Bagh, Delhi-110088
an individual/Company/Trust/Firm or any other Body duly formed and registered under the relevant Act, hereinafter called the CLIENT, having its residence/registered office at ............................................. ..........................................................................................................................................................................
WITNESSETH
Whereas the MEMBER is registered as TRADING MEMBER of National Stock Exchange of India Ltd. With SEBI Regn. No. INB/F230691333 and whereas the CLIENT is desirous of investing/trading in those securities admitted for dealing on the Exchange as defined in the Bye-Laws of the Exchange and
Whereas the CLIENT has satisfied itself of the capability of the MEMBER to deal in securities and wishes to execute his orders through him and the CLIENT shall continue to satisfy itself of such capability of the MEMBER before executing orders through him.
Whereas the MEMBER has satisfied and shall continue to satisfy himself about the genuineness and financial soundness of the CLIENT and about the investment objectives relevant to the services to be provided.
Whereas the MEMBER has taken steps and shall continue to take steps to make the CLIENT aware of the precise nature of the MEMBER'S liability for business to be conducted, including any limitations on that liability and the capacity in which it acts.
In consideration of the mutual understanding as set forth in this agreement, the parties thereto have agreed to the following terms and conditions.
1 The Client will be entitled to a username and password, which will enable him to access the Member's Website for availing of the Service.
2. The Client shall be responsible for keeping the Username and Pasword confidential and secure and shall be solely responsible for all orders entered and transactions done by any person whosoever through the Member's Website using the Client's Username and Password whether or not such person was authorised to do so.
3. The client shall immediately inform the Member of any unauthorized use of the Client's Username or Password with full details of such unauthorized use including the date of such unauthorized use, the manner in which it was unauthorizedly used, the transactions effected pursuant to such authorized use, etc.
4. The Client understands that, the Member may, at any time, at its sole discretion and without prior notice to the Client, prohibit or restrict the Client's access to the use of the website or related services and the Client's ability to trade. The Client will bear any loss (notional or actual) that he/she/it may face due to inability to execute further trades on account of such restriction.
5. The Client understands that the Exchange asserts a proprietary interest in all of the market data it furnishes, directly or through the Member or otherwise. The Client understands that the Exchange does not guarantee the timeliness, sequence, accuracy or completeness of market date or any other market information, or any messages disseminated by it. Neither the Member nor the Exchange shall be liable in any way for incorrect, misleading, incomplete data or information and, if the Client acts on the basis of the same, he/she/it shall do so at his/her/it's own risk and cost.
6. All orders for purchase, sale or other dealings in securities and other instructions routed through the Member's Website via the Client's User name shall be deemed to have been given by the Client.
7. When the Client places a request to cancel an order, the order will only be cancelled if the Client's request for cancellation is received before it is executed.
VOLUNTARY DOCUMENTSINTERNET TRADING AGREEMENT
23
8. The Client shall be entitled to presume an order as having been executed or cancelled only when a confirmation from the Member is received by the Client.
9. The provisions of this agreement shall always be subject to Government notifications, any rules, regulations and guidelines issued by SEBI, Stock Exchange rules, regulations and Bye-Laws that may be in force from time to time.
10. In the event of death or insolvency of the CLIENT or his otherwise becoming incapable of receiving and paying for or delivering or transferring securities which the Client has ordered to be bought or sold, the MEMBER may close the transaction of the CLIENT and the CLIENT or his legal representative shall be liable for any losses, costs and be entitled to any surplus which may result therefrom.
11. The agreement entered into between the MEMBER and the CLIENT shall stand terminated by mutual consent of the parties. Such cancellation or termination shall not have any effect on transaction executed before the date of such termination and the party shall enjoy the rights and shall have same obligations in respect of such transactions.
12. The instructions issued by an authorized representative of the CLIENT shall be binding on the CLIENT in accordance with the letter to authorize the said representative to deal on behalf of the CLIENT.
13. The CLIENT is aware that authentication technology and strict security measures are required for internet trading through order routed system and undertakes to ensure that the password of the CLIENT and/or his authorized representative are not revealed to any third party.
14. The CLIENT agrees that the MEMBER shall not be liable or responsible for non-execution of the orders of the CLIENT due to any link/system failure at the CLIENT/MEMBER/EXCHANGE end.
15. The stock Exchange may cancel a trade suo-moto without giving any reason thereof. In the event of such cancellation MEMBER shall be entitled to cancel relative contract(s) with CLIENT.
16. The member shall also send the Order/Trade confirmation slip through E-mail to the CLIENT on his request within ........................ (time period as specified by the CLIENT) from the time of execution of order/trade on the NEAT system as the case may be. The CLIENT agrees that the information sent by the MEMBER through E-mail is deemed to be a valid delivery of such information by the MEMBER.
17. the CLIENT is aware that the MEMBER has provided on web site a facility for reconfirmation of orders, which are larger than that specified by the MEMBER's risk management, by the MEMBER and is also aware that the MEMBER has the discretion to reject the execution of such orders based on his risk perception.
18. The MEMBER and the CLIENT are aware of the provisions by bye-Laws, Rules and Regulations at the Exchange relating the resolution of disputes/differences through the mechanism of arbitration provided by the Exchange and agree to abide by the said provisions.
19. All trades, transactions and contracts are subject to the bye-Laws Rules and Regulation of the Exchange and shall be deemed to be and shall take effect as wholly made, entered into and to be performed in the city of Mumbai and the parties to such trade shall be deemed to have submitted to the jurisdiction of the Courts for the purpose of giving effect to the provisions of the Rules and Regulations of the Exchange.
IN WITNESS THEREOF, the parties to the agreement have caused these present to be executed as of the day and year, first above written.
Signed and delivered by
Client ____________________________________ Member ___________________________________
I/We are dealing through you as a client in Capital Market and/or Future & Option segment and/or Currency Derivative segment and/or Interest Rate future Segment & in order to facilitate ease of operations and upfront requirement of margin for trade.
I/We authorize you as under:
1. I/We request you to maintain running balance in my account & retain the credit balance in any of my/our account and to use the unused funds towards my/our margin/pay-in/other future obligation(s) at any segment(s) of any or all the Exchange(s)/Clearing corporation unless I/we instruct you otherwise.
2. I/We request you to retain securities with you for my/our margin/pay-in/other-future obligation(s) at any segment(s) of any or all the Exchange(s)/Clearing Corporation, unless I/We instruct you to transfer the same to my/our account.
3. I/We request you not to carry out settlement of running account referred above for the funds given by me/.us towards collaterals/margin in form of Bank Guarantee and/or Fixed Deposit Receipt.
4. In case I/We have an outstanding obligation on the settlement date, you may retain the requisite securities/funds towards such obligations and may also retain the funds expected to be required to meet margin obligations for next 5 trading days, calculated in the manner specified by the exchanges.
5. I/We confirm you that I will bring to your notice any dispute arising from the statement of account or settlement so made in writing within 7 working days from the date of receipt of funds/securities or statement of account or statement related to it, as the case may be at your registered office. After that I/We shall have no right to dispute the transaction, funds and/or securities ever and agree that you shall not be liable for any incidental loss/damage caused due to retention of funds and/or securities.
6. I/We confirm you that I can revoke the above mentioned authority any time however such termination shall be subject to notice period of 15 working days from the date of physical delivery of revocation letter to your registered office.
7. This authorization shall be valid for one Year from the date placed under my/our signature below and may be renewed from time to time by another writing under my/our signature. I /We have the liberty to revoke this authorization at any time.
My/our preference for actual settlement of fund and securities is at least
Once in a Calendar Quarter or Once in a Calendar Month
I/we agree not to hold you responsible for late / non- receipt of contract notes sent in electronics form and any other
communication for any reason including but not limited to failure of email servers, loss of connectivity, email in
transit etc. I / we agree that the log reports of your dispatching software shall be a conclusive proof of dispatch of
contract proof of dispatch of contract notes to me / us and such dispatch shall be deemed to mean receipt by me / us and
shall not be disputed by me / us on account of any non-receipt for any reason what so ever.
I / We also agree that non-receipt of bounced mail notification by you shall amount to delivery at my / our email
account(s) / email id(s).
I / We understand that I am required to intimate any change in the email id / email account mentioned herein above
needs to be communicated by me through a physical letter to you, provided however that if I / We am / are an internet
client then in that event the request for change in email id / email account can be made by me / us through a secured
access using client specific user id and password. Please treat this authorization as written ratification of my / our
verbal directions / authorization given and carried out by you earlier. I/We shall be liable for all losses, damages and
actions which may arise as a consequence of your adhering to and carrying out my /our directions given above.
I / We agree and acknowledge that it is advisable and preferable that I / We give instructions for order placement /
modification and cancellation in writing and to avoid disputes, I/we must give instructions in prescribed format in
duplicate (carbon copy/photocopy only) and take signatures of authorized persons at the branch along with your
company stamp on the carbon/photocopy of the instructions in acknowledgment of receipt of my / our instructions.
However as I/we shall be dealing by ordering over phone and even if we visit the branch, the fluctuations in market so
rapid that it is not practical to give written instructions for order placement / modification and cancellation, I/we
hereby authorize you to honour my/my authorized representative's verbal instructions for order placement /
modification and cancellation in person or over phone (fixed line or mobile phone) and execute the same. I agree that
26 (3)
I/we shall not be entitled to disown orders and consequent trades (if any) under the plea that same were not under my
/our instructions. I/We agree that I/We will not have the right to shift the burden of proof by asking you to prove the
placement of orders through telephone recording or otherwise
I/We hereby authorize you to maintain my/our account with you under different exchanges/segments under combined Ledger Principal and not Exchange/Segment wise. Similarly you can use the funds/securities available with you to meet my/our obligation under different exchanges/segment. I/We agree that I/we will not dispute the same at any point of time.
I/We shall be liable for all losses, damages ad action which may arise as a consequence of your adhering to carry out my/our directions given above.
Thanking you,
Yours faithfully,
Sign _______________________
Name ___________________________________________
27 (3)
DOCUMENTS CHECKLISTChecklist Tick (P) For Office Use only
Copy of PAN Card (Mandatory)
Proof of Identity : (one of the following)
(1) Passport
(2) Driving License
(3) PAN Card
(4) Voter's ID Card
(5) Others
Proof of Residence : (One of the following)
(1) Passport
(2) Driving License
(3) Electricity Bill / Telephone Bill (Latest)
(4) Voter's ID Card
(5) Ration Card
(6) Others
Bank Account Proof
(1) Photocopy of Cheque / Cancelled Cheque
(2) Copy of latest Bank Statement / Passbook Clearly mentioning the Bank Account No. Branch Name and Client Name
I/We hereby acknowledge that I/we hae received the photo copy of application form and other related documents from Nikunj Stock Brokers, Limited. Further I/we hereby confirm that I/we have been informed that the account will be opened after verification by Nikunj Stock Brokers Limited, Discrepancies, if any, would be intimated to me/us.
Name :
Signature :
28
Demat Account Proof :
6. Financial detail Proof
(1) Client Master (2) Holding Statement
(3)
WARNINGDo's and Don'ts for investors for trading in Stock Market.
1. We do not accept cash except petty cash. Do not pay cash for your dealings and for petty cash payments, obtain proper receipt.
2. Do not indulge in any Market manipulation or fraudulent trade practice.
3. Do not depend on media reports / Company advertiement on approvals, or financial performance of co's without checking in details.
4. Don't fall prey to promises of guaranteed returns./pvt. Portfilio Management.
5. Don't leave the custody of your Delivery Instruction Slip (DIS) / Cheque book in the hands of any third party.
6. Avoid Off-market transaction of Securities especially with third party.
7. Do not share your Login ID, email id & Password with anybody, since this is highly sensitive and classified.
8. Don't hand over blank signed Delivery Instruction Slip (DIS) or cheques or any other documents to any person including staff of Nikunj Stock Brokers Ltd. Management of Nikunj Stock Brokers Ltd., will not held responsible for any financial loss arising from the violation of the said instruction.
1. Know your risk. It is critical to understand where you stand and where you want to be What level and amount of investment are you comfortable with, regardless of what market experts tell you? Therefore, take some time to evaluate your risk-bearing capacity. This is a golden rule that should be applied at all.
2. Please carry out due diligence before registering as client with any Intermediary. Further, to carefully read and understand the contents stated in the Risk Disclosure Document, Member-Client agreement which forms part of investor registration requirement for dealing through brokers in the stock market.
3. Before signing please read and understand all the points of KYC's.
4. Always update your correspondence address, bank account details.
5. Give clear and unambiguous instructions to your broker / agent / depository participant.
6. All the payment should be made by Cheque / DD drawn in favor of "Nikunj Stock Brokers Ltd." Such payment should originate from your notified accounts only. No third party cheques will be accepted and No cash will be accepted.
7. Check all the related information like Trade details Electronic contact note, margin call, etc in your email ID. If you do not receive the emails, inform us immediately.
8. Be cautions about stocks, which show a sudden spurt in price or trading activity, especially low price.
9. Please be informed that there are no guaranteed returns on investment in stock markets.
If you have any queries or have any confusion please contact our helpdest "[email protected]" , Phone No.: (011) 47031300 / 47031301 Fax : (011) 27489725.
(DISCLOSURE TO CLIENT)
To,
________________________________
Sir,
As per exchange notification, we hereby inform you that, We do trading on behalf of Client and on our own account also.
Thanks and best regards,
For Nikunj Stock Brokers Limited
(Authorised Signatory)
To,
Nikunj Stock Brokers Limited,
I/We acknowledge receipt of your information that you do client based trading and Pro account trading.
