RIGHTS AND OBLIGATIONS OF STOCK BROKERS, SUB-BROKERS AND CLIENTS AS PRESCRIBED

BY SEBI AND STOCK EXCHANGES

1. The client shall invest/trade in those securities/contracts/other MARGINS

instruments admitted to dealings on the Exchanges as defined
11. The client shall pay applicable initial margins, withholding margins,
in the Rules, Byelaws and Regulations of Exchanges/ special margins or such other margins as are considered
Securities and Exchange Board of India (SEBI) and necessary by the stock broker or the Exchange or as may be
circulars/notices issued there under from time to time. directed by SEBI from time to time as applicable to the segment(s)
2. The stock broker, sub-broker and the client shall be bound by all in which the client trades. The stock broker is permitted in its sole
the Rules, Byelaws and Regulations of the Exchange and and absolute discretion to collect additional margins (even though
circulars/notices issued there under and Rules and Regulations not required by the Exchange, Clearing House/Clearing
of SEBI and relevant notifications of Government authorities as Corporation or SEBI) and the client shall be obliged to pay such
may be in force from time to time. margins within the stipulated time.
12. The client understands that payment of margins by the client does
3. The client shall satisfy itself of the capacity of the stock broker to
not necessarily imply complete satisfaction of all dues. In spite of
deal in securities and/or deal in derivatives contracts and consistently having paid margins, the client may, on the settlement
wishes to execute its orders through the stock broker and the of its trade, be obliged to pay (or entitled to receive) such further
client shall from time to time continue to satisfy itself of such sums as the contract may dictate/require.
capability of the stock broker before executing orders through
the stock broker. TRANSACTIONS AND SETTLEMENTS
4. The stock broker shall continuously satisfy itself about the 13. The client shall give any order for buy or sell of a
genuineness and financial soundness of the client and security/derivatives contract in writing or in such form or
investment objectives relevant to the services to be provided. manner, as may be mutually agreed between the client and the
stock broker. The stock broker shall ensure to place orders and
5. The stock broker shall take steps to make the client aware of the execute the trades of the client, only in the Unique Client Code
precise nature of the Stock broker’s liability for business to be assigned to that client.
conducted, including any limitations, the liability and the
capacity in which the stock broker acts. 14. The stock broker shall inform the client and keep him apprised
about trading/settlement cycles, delivery/payment schedules,
6. The sub-broker shall provide necessary assistance and co- any changes therein from time to time, and it shall be the
operate with the stock broker in all its dealings with the client(s).
responsibility in turn of the client to comply with such
CLIENT INFORMATION schedules/procedures of the relevant stock exchange where
the trade is executed.
7. The client shall furnish all such details in full as are required by
the stock broker in “Account Opening Form” with supporting 15. The stock broker shall ensure that the money/securities
details, made mandatory by stock exchanges/SEBI from time to deposited by the client shall be kept in a separate account,
time. distinct from his/its own account or account of any other client
8. The client shall familiarize himself with all the mandatory and shall not be used by the stock broker for himself/itself or for
provisions in the Account Opening documents. Any additional any other client or for any purpose other than the purposes
clauses or documents specified by the stock broker shall be mentioned in Rules, Regulations, circulars, notices, guidelines
non-mandatory, as per terms & conditions accepted by the of SEBI and/or Rules, Regulations, Bye-laws, circulars and
client. notices of Exchange.
9. The client shall immediately notify the stock broker in writing if there 16. Where the Exchange(s) cancels trade(s) suo moto all such
is any change in the information in the ‘account opening form’ as trades including the trade/s done on behalf of the client shall
provided at the time of account opening and thereafter; including ipso facto stand cancelled, stock broker shall be entitled to
the information on winding up petition/insolvency petition or any cancel the respective contract(s) with client(s).
litigation which may have material bearing on his capacity. The
17. The transactions executed on the Exchange are subject to
client shall provide/update the financial information to the stock
broker on a periodic basis.
Rules, Byelaws and Regulations and circulars/notices issued
thereunder of the Exchanges where the trade is executed and
10. The stock broker and sub-broker shall maintain all the details of the all parties to such trade shall have submitted to the jurisdiction
client as mentioned in the account opening form or any other of such court as may be specified by the Byelaws and
information pertaining to the client, confidentially and that they Regulations of the Exchanges where the trade is executed for
shall not disclose the same to any person/authority except as the purpose of giving effect to the provisions of the Rules,
required under any law/regulatory requirements. Provided Byelaws and Regulations of the Exchanges and the
however that the stock broker may so disclose information circulars/notices issued thereunder.
about his client to any person or authority with the express
permission of the client.
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BROKERAGE 26. The client/stock-broker understands that the instructions issued by
an authorized representative for dispute resolution, if any, of the
18. The Client shall pay to the stock broker brokerage and statutory client/stock-broker shall be binding on the client/stock-broker in
levies as are prevailing from time to time and as they apply to the accordance with the letter authorizing the said representative to
Client’s account, transactions and to the services that stock broker deal on behalf of the said client/stock-broker.
renders to the Client. The stock broker shall not charge brokerage
more than the maximum brokerage permissible as per the rules, TERMINATION OF RELATIONSHIP
regulations and bye-laws of the relevant stock exchanges and/or
rules and regulations of SEBI. 27. This relationship between the stock broker and the client shall
be terminated; if the stock broker for any reason ceases to be a
LIQUIDATION AND CLOSE OUT OF POSITION member of the stock exchange including cessation of
19. Without prejudice to the stock broker’s other rights (including the membership by reason of the stock broker’s default, death,
right to refer a matter to arbitration), the client understands that the resignation or expulsion or if the certificate is cancelled by the
stock broker shall be entitled to liquidate/close out all or any of the Board.
client’s positions for nonpayment of margins or other amounts, 28. The stock broker, sub-broker and the client shall be entitled to
outstanding debts, etc. and adjust the proceeds of such terminate the relationship between them without giving any
liquidation/close out, if any, against the client’s reasons to the other party, after giving notice in writing of not
liabilities/obligations. Any and all losses and financial charges on
less than one month to the other parties. Notwithstanding any
account of such liquidation/closing-out shall be charged to and
such termination, all rights, liabilities and obligations of the
borne by the client.
parties arising out of or in respect of transactions entered into
20. In the event of death or insolvency of the client or his/its prior to the termination of this relationship shall continue to
otherwise becoming incapable of receiving and paying for or subsist and vest in / be binding on the respective parties or his /
delivering or transferring securities which the client has ordered its respective heirs, executors, administrators, legal
to be bought or sold, stock broker may close out the transaction representatives or successors, as the case may be.
of the client and claim losses, if any, against the estate of the
29. In the event of demise/insolvency of the sub-broker or the
client. The client or his nominees, successors, heirs and
cancellation of his/its registration with the Board or/withdrawal
assignee shall be entitled to any surplus which may result there
of recognition of the sub-broker by the stock exchange and/or
from. The client shall note that transfer of funds/securities in
termination of the agreement with the sub broker by the stock
favor of a Nominee shall be valid discharge by the stock broker
broker, for any reason whatsoever, the client shall be informed
against the legal heir.
of such termination and the client shall be deemed to be the
21. The stock broker shall bring to the notice of the relevant direct client of the stock broker and all clauses in the ‘Rights and
Exchange the information about default in payment / delivery Obligations’ document(s) governing the stock broker, sub-
and related aspects by a client. In case where defaulting client is broker and client shall continue to be in force as it is, unless the
a corporate entity/partnership/proprietary firm or any other client intimates to the stock broker his/its intention to terminate
artificial legal entity, then the name(s) of Director(s) / their relationship by giving a notice in writing of not less than one
Promoter(s) / Partner(s) / Proprietor as the case may be, shall month.
also be communicated by the stock broker to the relevant
ADDITIONAL RIGHTS AND OBLIGATIONS
Exchange(s).
30. The stock broker shall ensure due protection to the client
DISPUTE RESOLUTION regarding client’s rights to dividends, rights or bonus shares,
22. The stock broker shall provide the client with the relevant etc. in respect of transactions routed through it and it shall not
contact details of the concerned Exchanges and SEBI. do anything which is likely to harm the interest of the client with
whom and for whom they may have had transactions in
23. The stock broker shall co-operate in redressing grievances of securities.
the client in respect of all transactions routed through it and in
removing objections for bad delivery of shares, rectification of 31. The stock broker and client shall reconcile and settle their
bad delivery, etc. accounts from time to time as per the Rules, Regulations,
ByeLaws, Circulars, Notices and Guidelines issued by SEBI
24. The client and the stock broker shall refer any claims and/or and the relevant Exchanges where the trade is executed.
disputes with respect to deposits, margin money, etc., to
arbitration as per the Rules, Byelaws and Regulations of the 32. The stock broker shall issue a contract note to his constituents for
Exchanges where the trade is executed and circulars/notices trades executed in such format as may be prescribed by the
issued thereunder as may be in force from time to time. Exchange from time to time containing records of all transactions
including details of order number, trade number, trade time, trade
25. The stock broker shall ensure faster settlement of any price, trade quantity, details of the derivatives contract, client code,
arbitration proceedings arising out of the transactions entered brokerage, all charges levied etc. and with all other relevant details
into between him vis-à-vis the client and he shall be liable to as required therein to be filled in and issued in such manner and
implement the arbitration awards made in such proceedings. within such time as prescribed by the Exchange. The stock broker
shall send contract notes to the investors within one working day of

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 the execution of the trades in hard copy and/or in electronic form report generated by the system at the time of sending the
using digital signature. contract notes shall be maintained by the stock broker for the
33. The stock broker shall make pay out of funds or delivery of specified period under the extant regulations of SEBI / stock
securities, as the case may be, to the Client within one working exchanges. The log report shall provide the details of the
day of receipt of the payout from the relevant Exchange where contract notes that are not delivered to the client/e-mails
the trade is executed unless otherwise specified by the client rejected or bounced back. The stock broker shall take all
and subject to such terms and conditions as may be prescribed possible steps to ensure receipt of notification of bounced mails
by the relevant Exchange from time to time where the trade is by him at all times within the stipulated time period under the
executed. extant regulations of SEBI / stock exchanges.
41. The stock broker shall continue to send contract notes in the
34. The stock broker shall send a complete ‘Statement of Accounts’
physical mode to such clients who do not opt to receive the
for both funds and securities in respect of each of its clients in
contract notes in the electronic form. Wherever the ECNs have not
such periodicity and format within such time, as may be been delivered to the client or has been rejected (bouncing of
prescribed by the relevant Exchange, from time to time, where mails) by the e-mail ID of the client, the stock broker shall send a
the trade is executed. The Statement shall also state that the physical contract note to the client within the stipulated time under
client shall report errors, if any, in the Statement within such the extant regulations of SEBI/stock exchanges and maintain the
time as may be prescribed by the relevant Exchange from time proof of delivery of such physical contract notes.
to time where the trade was executed, from the receipt thereof
to the Stock broker. 42. In addition to the e-mail communication of the ECNs to the
client, the stock broker shall simultaneously publish the ECN on
35. The stock broker shall send daily margin statements to the his designated web-site, if any, in a secured way and enable
clients. Daily Margin statement should include, inter-alia, relevant access to the clients and for this purpose, shall allot a
details of collateral deposited, collateral utilized and collateral unique user name and password to the client, with an option to
status (available balance/due from client) with break up in terms the client to save the contract note electronically and/or take a
of cash, Fixed Deposit Receipts (FDRs), Bank Guarantee and print out of the same.
securities.
LAW AND JURISDICTION
36. The Client shall ensure that it has the required legal capacity to,
and is authorized to, enter into the relationship with stock broker 43. In addition to the specific rights set out in this document, the
and is capable of performing his obligations and undertakings stock broker, sub-broker and the client shall be entitled to
hereunder. All actions required to be taken to ensure exercise any other rights which the stock broker or the client
compliance of all the transactions, which the Client may enter may have under the Rules, Bye-laws and Regulations of the
into shall be completed by the Client prior to such transaction Exchanges in which the client chooses to trade and
being entered into. circulars/notices issued thereunder or Rules and Regulations
of SEBI.
ELECTRONIC CONTRACT NOTES (ECN)
44. The provisions of this document shall always be subject to
37. In case, client opts to receive the contract note in electronic Government notifications, any rules, regulations, guidelines
form, he shall provide an appropriate e-mail id to the stock and circulars/notices issued by SEBI and Rules, Regulations
broker. The client shall communicate to the stock broker any and Bye laws of the relevant stock exchanges, where the trade
change in the email-id through a physical letter. If the client has is executed, that may be in force from time to time.
opted for internet trading, the request for change of email id may
be made through the secured access by way of client specific 45. The stock broker and the client shall abide by any award passed
user id and password. by the Arbitrator(s) under the Arbitration and Conciliation Act,
1996. However, there is also a provision of appeal within the
38. The stock broker shall ensure that all ECNs sent through the e- stock exchanges, if either party is not satisfied with the
mail shall be digitally signed, encrypted, nontamper able and in arbitration award.
compliance with the provisions of the ITAct, 2000. In case, ECN
is sent through e-mail as an attachment, the attached file shall 46. Words and expressions which are used in this document but
also be secured with the digital signature, encrypted and non- which are not defined herein shall, unless the context otherwise
tamperable. requires, have the same meaning as assigned thereto in the
Rules, Byelaws and Regulations and circulars/notices issued
39. The client shall note that non-receipt of bounced mail thereunder of the Exchanges/SEBI.
notification by the stock broker shall amount to delivery of the
contract note at the e-mail ID of the client. 47. All additional voluntary clauses / document added by the stock
broker should not be in contravention with rules / regulations /
40. ThestockbrokershallretainECNand notices / circulars of Exchanges / SEBI. Any changes in such
acknowledgement of the e-mail in a soft and nontamperable voluntary clauses/document(s) need to be preceded by a notice
form in the manner prescribed by the exchange in compliance of 15 days. Any changes in the rights and obligations which are
with the provisions of the IT Act, 2000 and as per the extant specified by Exchanges/SEBI shall also be brought to the
rules / regulations / circulars / guidelines issued by SEBI / Stock notice of the clients.
Exchanges from time to time. The proof of delivery i.e., log
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48. If the rights and obligations of the parties hereto are altered by Client’s Username and / or Password whether or not such person
virtue of change in Rules and regulations of SEBI or Bye-laws, was authorized to do so.Also the client is aware that authentication
Rules and Regulations of the relevant stock Exchanges where technologies and strict security measures are required for the
the trade is executed, such changes shall be deemed to have internet trading / securities trading through wireless technology
been incorporated herein in modification of the rights and through order routed system and undertakes to ensure that the
obligations of the parties mentioned in this document. password of the client and/or his authorized representative are not
revealed to any third party including employees and dealers of the
INTERNET & WIRELESS TECHNOLOGY stock broker
BASED TRADING FACILITY PROVIDED BY STOCK BROKERS
TO CLIENT (All the clauses mentioned in the ‘Rights and Obligations’ 6. The Client shall immediately notify the Stock broker in writing if
document(s) shall be applicable. Additionally, the clauses mentioned he forgets his password, discovers security flaw in Stock
herein shall also be applicable.) Broker’s IBT System, discovers/suspects discrepancies/
unauthorized access through his username/password/account
1. Stock broker is eligible for providing Internet based trading (IBT)
with full details of such unauthorized use, the date, the manner
and securities trading through the use of wireless technology
and the transactions effected pursuant to such unauthorized
that shall include the use of devices such as mobile phone,
use, etc.
laptop with data card, etc. which use Internet Protocol (IP). The
stock broker shall comply with all requirements applicable to 7. The Client is fully aware of and understands the risks
internet based trading/securities trading using wireless associated with availing of a service for routing orders over the
technology as may be specified by SEBI & the Exchanges from internet/securities trading through wireless technology and
time to time. Client shall be fully liable and responsible for any and all acts
done in the Client’s Username/password in any manner
2. The client is desirous of investing/trading in securities and for this
purpose, the client is desirous of using either the internet based
whatsoever.
trading facility or the facility for securities trading through use of 8. The stock broker shall send the order/trade confirmation
wireless technology. The Stock broker shall provide the Stock through email to the client at his request. The client is aware that
broker’s IBT Service to the Client, and the Client shall avail of the the order/ trade confirmation is also provided on the web portal.
Stock broker’s IBT Service, on and subject to SEBI/Exchanges In case client is trading using wireless technology, the stock
Provisions and the terms and conditions specified on the Stock broker shall send the order/trade confirmation on the device of
broker’s IBT Web Site provided that they are in line with the norms the client.
prescribed by Exchanges/SEBI.
9. The client is aware that trading over the internet involves many
3. The stock broker shall bring to the notice of client the features,
uncertain factors and complex hardware, software, systems,
risks, responsibilities, obligations and liabilities associated with
communication lines, peripherals, etc. are susceptible to
securities trading through wireless technology/internet/smart
order routing or any other technology should be brought to the interruptions and dislocations. The Stock broker and the
notice of the client by the stock broker. Exchange do not make any representation or warranty that the
Stock broker’s IBT Service will be available to the Client at all
4. The stock broker shall make the client aware that the Stock times without any interruption.
Broker’s IBT system itself generates the initial password and its
password policy as stipulated in line with norms prescribed by 10. The Client shall not have any claim against the Exchange or the
Exchanges/SEBI. Stock broker on account of any suspension, interruption, non-
availability or malfunctioning of the Stock broker’s IBT System
5. The Client shall be responsible for keeping the Username and or Service or the Exchange’s service or systems or non-
Password confidential and secure and shall be solely responsible execution of his orders due to any link/system failure at the
for all orders entered and transactions done by any person Client/Stock brokers/Exchange end for any reason beyond the
whosoever through the Stock broker’s IBT System using the control of the stock broker/Exchanges.

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 RIGHTS AND OBLIGATIONS OF BENEFICIAL OWNER AND DEPOSITORY PARTICIPANT AS
PRESCRIBED BY SEBI AND DEPOSITORIES

General Clause be segregated and shall not be mixed up with the securities of
other beneficial owners and/or DP’s own securities held in
1. The Beneficial Owner and the Depository participant (DP) shall be
bound by the provisions of the Depositories Act, 1996, SEBI dematerialized form.
(Depositories and Participants) Regulations, 1996, Rules and 10. The DP shall not facilitate the Beneficial Owner to create or
Regulations of Securities and Exchange Board of India (SEBI), permit any pledge and /or hypothecation or any other interest or
Circulars/Notifications/Guidelines issued there under, Bye Laws encumbrance over all or any of such securities submitted for
and Business Rules/Operating Instructions issued by the dematerialization and/or held in demat account except in the
Depositories and relevant notifications of Government Authorities form and manner prescribed in the Depositories Act, 1996,
as may be in force from time to time. SEBI (Depositories and Participants) Regulations, 1996 and
2. The DP shall open/activate demat account of a beneficial owner Bye-Laws/Operating Instructions/Business Rules of the
in the depository system only after receipt of complete Account Depositories.
opening form, KYC and supporting documents as specified by Transfer of Securities
SEBI from time to time
11. The DP shall effect transfer to and from the demat accounts of
Beneficial Owner information the Beneficial Owner only on the basis of an order, instruction,
3. The DP shall maintain all the details of the beneficial owner(s) direction or mandate duly authorized by the Beneficial Owner
as mentioned in the account opening form, supporting and the DP shall maintain the original documents and the audit
documents submitted by them and/or any other information trail of such authorizations.
pertaining to the beneficial owner confidentially and shall not 12. The Beneficial Owner reserves the right to give standing
disclose the same to any person except as required by any instructions with regard to the crediting of securities in his demat
statutory, legal or regulatory authority in this regard. account and the DP shall act according to such instructions.
4. The Beneficial Owner shall immediately notify the DP in writing, if Statement of account
there is any change in details provided in the account opening form
as submitted to the DP at the time of opening the demat account or 13. The DP shall provide statements of accounts to the beneficial
furnished to the DP from time to time. owner in such form and manner and at such time as agreed with
the Beneficial Owner and as specified by SEBI/depository in
Fees/ Charges/Tariff this regard.
5. The Beneficial Owner shall pay such charges to the DP for the 14. However, if there is no transaction in the demat account, or if the
purpose of holding and transfer of securities in dematerialized balance has become Nil during the year, the DP shall send one
form and for availing depository services as may be agreed to physical statement of holding annually to such BOs and shall
from time to time between the DP and the Beneficial Owner as resume sending the transaction statement as and when there is
set out in the Tariff Sheet provided by the DP. It may be informed a transaction in the account.
to the Beneficial Owner that “no charges are payable for
opening of demat accounts” 15. The DP may provide the services of issuing the statement of
demat accounts in an electronic mode if the Beneficial Owner
6. In case of Basic Services Demat Accounts, the DP shall adhere so desires. The DP will furnish to the Beneficial Owner the
to the charge structure as laid down under the relevant SEBI statement of demat accounts under its digital signature, as
and/or Depository circulars/directions/notifications issued from governed under the Information Technology Act, 2000.
time to time. However if the DP does not have the facility of providing the
7. The DP shall not increase any charges/tariff agreed upon statement of demat account in the electronic mode, then the
unless it has given a notice in writing of not less than thirty days Participant shall be obliged to forward the statement of demat
to the Beneficial Owner regarding the same. accounts in physical form.
Dematerialization 16. In case of Basic Services Demat Accounts, the DP shall send
the transaction statements as mandated by SEBI and/or
8. The Beneficial Owner shall have the right to get the securities,
Depository from time to time
which have been admitted on the Depositories, dematerialized in
the form and manner laid down under the Bye Laws, Business Manner of Closure of Demat account
Rules and Operating Instructions of the depositories.
17. The DP shall have the right to close the demat account of the
Separate Accounts Beneficial Owner, for any reasons whatsoever, provided the DP
9. The DP shall open separate accounts in the name of each of the has given a notice in writing of not less than thirty days to the
beneficial owners and securities of each beneficial owner shall Beneficial Owner as well as to the Depository. Similarly, the

5
 Beneficial Owner shall have the right to close his/her demat 23. The DP or the Depository shall have the right to freeze/defreeze
account held with the DP provided no charges are payable by the accounts of the Beneficial Owners on receipt of instructions
him/her to the DP. In such an event, the Beneficial Owner shall received from any regulator or court or any statutory authority.
specify whether the balances in their demat account should be Redressal of Investor grievance
transferred to another demat account of the Beneficial Owner
held with another DP or to rematerialize the security balances 24. The DP shall redress all grievances of the Beneficial Owner
held. against the DP within a period of thirty days from the date of
receipt of the complaint.
18. Based on the instructions of the Beneficial Owner, the DP shall
initiate the procedure for transferring such security balances or Authorized representative
rematerialize such security balances within a period of thirty 25. If the Beneficial Owner is a body corporate or a legal entity, it
days as per procedure specified from time to time by the shall, along with the account opening form, furnish to the DP, a
depository. Provided further, closure of demat account shall not list of officials authorized by it, who shall represent and interact
affect the rights, liabilities and obligations of either the on its behalf with the Participant. Any change in such list
Beneficial Owner or the DP and shall continue to bind the including additions, deletions or alterations thereto shall be
parties to their satisfactory completion. forthwith communicated to the Participant.
Default in payment of charges Law and Jurisdiction
19. In event of Beneficial Owner committing a default in the payment of 26. In addition to the specific rights set out in this document, the DP and
any amount provided in Clause 5 & 6 within a period of thirty days the Beneficial owner shall be entitled to exercise any other rights
from the date of demand, without prejudice to the right of the DP to which the DP or the Beneficial Owner may have under the Rules,
close the demat account of the Beneficial Owner, the DP may Bye Laws and Regulations of the respective Depository in which
charge interest at a rate as specified by the Depository from time to the demat account is opened and circulars/notices issued there
time for the period of such default. under or Rules and Regulations of SEBI.
20. In case the Beneficial Owner has failed to make the payment of 27. The provisions of this document shall always be subject to
any of the amounts as provided in Clause 5&6 specified above, Government notification, any rules, regulations, guidelines and
the DP after giving two days notice to the Beneficial Owner shall circulars/ notices issued by SEBI and Rules, Regulations and
have the right to stop processing of instructions of the Beneficial Bye-laws of the relevant Depository, where the Beneficial
Owner till such time he makes the payment along with interest, if Owner maintains his/her account, that may be in force from time
any. to time.
Liability of the Depository 28. The Beneficial Owner and the DP shall abide by the arbitration and
21. As per Section 16 of DepositoriesAct, 1996, conciliation procedure prescribed under the Bye-laws of the
depository and that such procedure shall be applicable to any
1. Without prejudice to the provisions of any other law for disputes between the DP and the Beneficial Owner.
the time being in force, any loss caused to the beneficial
29. Words and expressions which are used in this document but which
owner due to the negligence of the depository or the
are not defined herein shall unless the context otherwise requires,
participant, the depository shall indemnify such have the same meanings as assigned thereto in the Rules, Bye-
beneficial owner. laws and Regulations and circulars/notices issued there under by
2. Where the loss due to the negligence of the participant the depository and /or SEBI
under Clause (1) above, is indemnified by the depository, 30. Any changes in the rights and obligations which are specified by
the depository shall have the right to recover the same SEBI/Depositories shall also be brought to the notice of the
from such participant. clients at once.
Freezing/ Defreezing of accounts 31. If the rights and obligations of the parties hereto are altered by
22. The Beneficial Owner may exercise the right to freeze/defreeze virtue of change in Rules and regulations of SEBI or Bye-laws,
his/her demat account maintained with the DP in accordance Rules and Regulations of the relevant Depository, where the
with the procedure and subject to the restrictions laid down Beneficial Owner maintains his/her account, such changes
under the Bye Laws and Business Rules/Operating shall be deemed to have been incorporated herein in
Instructions. modification of the rights and obligations of the parties
mentioned in this document.

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 RISK DISCLOSURE DOCUMENT FOR CAPITAL MARKET AND DERIVATIVES SEGMENTS

This document contains important information on trading in information contained in this document must not be construed as
Equities/Derivatives Segments of the stock exchanges. All prospective business advice. No consideration to trade should be made without
constituents should read this document before trading in Equities/ thoroughly understanding and reviewing the risks involved in such
Derivatives Segments of the Exchanges. Stock exchanges/ SEBI does trading. If you are unsure, you must seek professional advice on the
neither singly or jointly and expressly nor impliedly guarantee nor make same.
any representation concerning the completeness, the adequacy or
In considering whether to trade or authorize someone to trade for you,
accuracy of this disclosure document nor have Stock exchanges/ SEBI
you should be aware of or must get acquainted with the following:-
endorsed or passed any merits of participating in the trading segments.
This brief statement does not disclose all the risks and other significant 1. BASIC RISKS:
aspects of trading. 1.1 Risk of Higher Volatility:
In the light of the risks involved, you should undertake transactions only Volatility refers to the dynamic changes in price that a
if you understand the nature of the relationship into which you are security/derivatives contract undergoes when trading activity
continues on the Stock Exchanges. Generally, higher the
entering and the extent of your exposure to risk. volatility of a security/ derivatives contract, greater is its price
You must know and appreciate that trading in Equity shares, derivatives swings. There may be normally greater volatility in thinly traded
contracts or other instruments traded on the Stock Exchange, which have securities/ derivatives contracts than in active securities/
derivatives contracts. As a result of volatility, your order may
varying element of risk, is generally not an appropriate avenue for only be partially executed or not executed at all, or the price at
someone of limited resources/limited investment and/or trading which your order got executed may be substantially different
experience and low risk tolerance. You should therefore carefully consider from the last traded price or change substantially thereafter,
whether such trading is suitable for you in the light of your financial resulting in notional or real losses.
condition. In case you trade on Stock exchanges and suffer adverse 1.2 Risk of Lower Liquidity:
consequences or loss, you shall be solely responsible for the same and Liquidity refers to the ability of market participants to buy and/or
Stock exchanges/its Clearing Corporation and/or SEBI shall not be sell securities/ derivatives contracts expeditiously at a competitive
responsible, in any manner whatsoever, for the same and it will not be price and with minimal price difference. Generally, it is assumed
that more the numbers of orders available in a market, greater is
open for you to take a plea that no adequate disclosure regarding the risks
the liquidity. Liquidity is important because with greater liquidity, it
involved was made or that you were not explained the full risk involved by is easier for investors to buy and/or sell securities/ derivatives
the concerned stock broker. The constituent shall be solely responsible for contracts swiftly and with minimal price difference, and as a result,
the consequences and no contract can be rescinded on that account. You investors are more likely to pay or receive a competitive price for
securities/ derivatives contracts purchased or sold. There may be
must acknowledge and accept that there can be no guarantee of profits or a risk of lower liquidity in some securities/derivatives contracts as
no exception from losses while executing orders for purchase and/or sale compared to active securities/derivatives contracts. As a result,
of a derivative contract being traded on Stock exchanges. your order may only be partially executed, or may be executed with
relatively greater price difference or may not be executed at all.
It must be clearly understood by you that your dealings on Stock
1.2.1 Buying or selling securities/ derivatives contracts as part of a
exchanges through a stock broker shall be subject to your fulfilling
day trading strategy may also result into losses, because in
certain formalities set out by the stock broker, which may inter alia such a situation, securities/ derivatives contracts may have to
include your filling the know your client form, reading the rights and be sold/ purchased at low/ high prices, compared to the
obligations, do’s and don’ts, etc., and are subject to the Rules, Byelaws expected price levels, so as not to have any open position or
and Regulations of relevant Stock exchanges, its Clearing obligation to deliver or receive a security/ derivatives contract.
Corporation, guidelines prescribed by SEBI and in force from time to 1.3 Risk of Wider Spreads:
time and Circulars as may be issued by Stock exchanges or its Spread refers to the difference in best buy price and best sell
Clearing Corporation and in force from time to time. price. It represents the differential between the price of buying a
security/ derivatives contract and immediately selling it or vice
Stock exchanges does not provide or purport to provide any advice and versa. Lower liquidity and higher volatility may result in wider
shall not be liable to any person who enters into any business than normal spreads for less liquid or illiquid securities/
relationship with any stock broker of Stock exchanges and/or any third derivatives contracts. This in turn will hamper better price
party based on any information contained in this document. Any formation.

7
1.4 Risk-reducing orders: all, when there are no outstanding orders either on the buy side
or the sell side, or if trading is halted in a security/ derivatives
The placing of orders (e.g., “stop loss” orders, or “limit” orders)
which are intended to limit losses to certain amounts may not be contract due to any action on account of unusual trading activity
effective many a time because rapid movement in market or security/ derivatives contract hitting circuit filters or for any
conditions may make it impossible to execute such orders. other reason.

1.4.1 A “market” order will be executed promptly, subject to 1.8 System/Network Congestion:
availability of orders on opposite side, without regard to price Trading on exchanges is in electronic mode, based on
and that, while the customer may receive a prompt execution of satellite/leased line based communications, combination of
a “market” order, the execution may be at available prices of technologies and computer systems to place and route orders.
outstanding orders, which satisfy the order quantity, on price Thus, there exists a possibility of communication failure or system
time priority. It may be understood that these prices may be problems or slow or delayed response from system or trading halt,
significantly different from the last traded price or the best price or any such other problem/glitch whereby not being able to
in that security/ derivatives contract. establish access to the trading system/network, which may be
beyond control and may result in delay in processing or not
1.4.2 A “limit” order will be executed only at the “limit” price specified processing buy or sell orders either in part or in full. You are
for the order or a better price. However, while the customer cautioned to note that although these problems may be temporary
receives price protection, there is a possibility that the order in nature, but when you have outstanding open positions or
may not be executed at all. unexecuted orders, these represent a risk because of your
1.4.3 A stop loss order is generally placed “away” from the current price obligations to settle all executed transactions.
of a stock/ derivatives contract, and such order gets activated if 2. As far as Derivatives segments are concerned, please note and
and when the security/ derivatives contract reaches, or trades get yourself acquainted with the following additional features:-
through, the stop price. Sell stop orders are entered ordinarily
below the current price, and buy stop orders are entered ordinarily 2.1 Effect of “Leverage” or “Gearing”:
above the current price. When the security/ derivatives contract In the derivatives market, the amount of margin is small relative to
reaches the pre-determined price, or trades through such price, the value of the derivatives contract so the transactions are
the stop loss order converts to a market/limit order and is executed ‘leveraged’ or ‘geared’. Derivatives trading, which is conducted
at the limit or better. There is no assurance therefore that the limit with a relatively small amount of margin, provides the possibility of
order will be executable since a security/ derivatives contract might great profit or loss in comparison with the margin amount. But
penetrate the pre-determined price, in which case, the risk of such transactions in derivatives carry a high degree of risk.
order not getting executed arises, just as with a regular limit order.
You should therefore completely understand the following
1.5 Risk of News Announcements: statements before actually trading in derivatives and also trade
News announcements that may impact the price of stock/ with caution while taking into account one’s circumstances,
derivatives contract may occur during trading, and when financial resources, etc. If the prices move against you, you
combined with lower liquidity and higher volatility, may suddenly may lose a part of or whole margin amount in a relatively short
cause an unexpected positive or negative movement in the period of time. Moreover, the loss may exceed the original
price of the security/contract. margin amount.

1.6 Risk of Rumors: A. Futures trading involve daily settlement of all positions. Every
day the open positions are marked to market based on the
Rumors about companies/ currencies at times float in the closing level of the index/ derivatives contract. If the contract
market through word of mouth, newspapers, websites or news has moved against you, you will be required to deposit the
agencies, etc. The investors should be wary of and should amount of loss (notional) resulting from such movement. This
desist from acting on rumors. amount will have to be paid within a stipulated time frame,
1.7 System Risk: generally before commencement of trading on next day.

High volume trading will frequently occur at the market opening B. If you fail to deposit the additional amount by the deadline or if
and before market close. Such high volumes may also occur at an outstanding debt occurs in your account, the stock broker
any point in the day. These may cause delays in order execution may liquidate a part of or the whole position or substitute
or confirmation. securities. In this case, you will be liable for any losses incurred
due to such close-outs.
1.7.1 During periods of volatility, on account of market participants
continuously modifying their order quantity or prices or placing C. Under certain market conditions, an investor may find it difficult
fresh orders, there may be delays in order execution and its or impossible to execute transactions. For example, this
confirmations. situation can occur due to factors such as illiquidity i.e. when
there are insufficient bids or offers or suspension of trading due
1.7.2 Under certain market conditions, it may be difficult or impossible to price limit or circuit breakers etc.
to liquidate a position in the market at a reasonable price or at

8
D. In order to maintain market stability, the following steps may be 2. The Exchanges may impose exercise restrictions and have
adopted: changes in the margin rate, increases in the cash absolute authority to restrict the exercise of options at certain
margin rate or others. These new measures may also be times in specified circumstances.
applied to the existing open interests. In such conditions, you
2.4 Risks of Option Writers:
will be required to put up additional margins or reduce your
positions. 1. If the price movement of the underlying is not in the anticipated
direction, the option writer runs the risks of losing substantial
E. You must ask your broker to provide the full details of derivatives
amount.
contracts you plan to trade i.e. the contract specifications and
the associated obligations. 2. The risk of being an option writer may be reduced by the
purchase of other options on the same underlying interest and
2.2 Currency specific risks:
thereby assuming a spread position or by acquiring other types
1. The profit or loss in transactions in foreign currency of hedging positions in the options markets or other markets.
denominated contracts, whether they are traded in your own or However, even where the writer has assumed a spread or other
another jurisdiction, will be affected by fluctuations in currency hedging position, the risks may still be significant. A spread
rates where there is a need to convert from the currency position is not necessarily less risky than a simple ‘long’ or
denomination of the contract to another currency. ‘short’ position.
2. Under certain market conditions, you may find it difficult or 3. Transactions that involve buying and writing multiple options in
impossible to liquidate a position. This can occur, for example combination, or buying or writing options in combination with
when a currency is deregulated or fixed trading bands are buying or selling short the underlying interests, present
widened. additional risks to investors. Combination transactions, such as
option spreads, are more complex than buying or writing a
3. Currency prices are highly volatile. Price movements for
single option. And it should be further noted that, as in any area
currencies are influenced by, among other things: changing
of investing, a complexity not well understood is, in itself, a risk
supply-demand relationships; trade, fiscal, monetary,
factor. While this is not to suggest that combination strategies
exchange control programs and policies of governments;
should not be considered, it is advisable, as is the case with all
foreign political and economic events and policies; changes in
investments in options, to consult with someone who is
national and international interest rates and inflation; currency
experienced and knowledgeable with respect to the risks and
devaluation; and sentiment of the market place. None of these
potential rewards of combination transactions under various
factors can be controlled by any individual advisor and no
market circumstances.
assurance can be given that an advisor’s advice will result in
profitable trades for a participating customer or that a customer 3. TRADING THROUGH WIRELESS TECHNOLOGY/ SMART
will not incur losses from such events. ORDER ROUTING OR ANY OTHER TECHNOLOGY:
Any additional provisions defining the features, risks,
2.3 Risk of Option holders:
responsibilities, obligations and liabilities associated with
1. An option holder runs the risk of losing the entire amount paid for securities trading through wireless technology/smart order
the option in a relatively short period of time. This risk reflects the routing or any other technology should be brought to the notice
nature of an option as a wasting asset which becomes worthless of the client by the stock broker.
when it expires. An option holder who neither sells his option in the
secondary market nor exercises it prior to its expiration will 4. GENERAL
necessarily lose his entire investment in the option. If the price of 4.1 The term ‘constituent’ shall mean and include a client, a customer
the underlying does not change in the anticipated direction before or an investor, who deals with a stock broker for the purpose of
the option expires, to an extent sufficient to cover the cost of the acquiring and/or selling of securities/ derivatives contracts through
option, the investor may lose all or a significant part of his the mechanism provided by the Exchanges.
investment in the option.
4.2 The term ‘stock broker’ shall mean and include a stock broker, a
broker or a stock broker, who has been admitted as such by the
Exchanges and who holds a registration certificate from SEBI.

9
 GUIDANCE NOTE - DO’S AND DON’TS FOR TRADING ON THE EXCHANGE(S) FOR INVESTORS

BEFORE YOU BEGIN TO TRADE 13. In case you have given specific authorization for maintaining
running account, payout of funds or delivery of securities (as the
1. Ensure that you deal with and through only SEBI registered
case may be), may not be made to you within one working day
intermediaries. You may check their SEBI registration from the receipt of payout from the Exchange. Thus, the stock
certificate number from the list available on the Stock broker shall maintain running account for you subject to the
exchanges www.exchange. com and SEBI website following conditions:
www.sebi.gov.in.
a) Such authorization from you shall be dated, signed by you only
2. Ensure that you fill the KYC form completely and strike off the and contains the clause that you may revoke the same at any
blank fields in the KYC form. time.
3. Ensure that you have read all the mandatory documents viz. b) The actual settlement of funds and securities shall be done by
Rights and Obligations, Risk Disclosure Document, Policy the stock broker, at least once in a calendar quarter or month,
and Procedure document of the stock broker. depending on your preference. While settling the account, the
4. Ensure to read, understand and then sign the voluntary stock broker shall send to you a ‘statement of accounts’
clauses, if any, agreed between you and the stock broker. containing an extract from the client ledger for funds and an
Note that the clauses as agreed between you and the stock extract from the register of securities displaying all the
broker cannot be changed without your consent. receipts/deliveries of funds and securities. The statement shall
also explain the retention of funds and securities and the details
5. Get a clear idea about all brokerage, commissions, fees and of the pledged shares, if any.
other charges levied by the broker on you for trading and the
relevant provisions/ guidelines specified by SEBI/Stock c) On the date of settlement, the stock broker may retain the requisite
exchanges. securities/funds towards outstanding obligations and may also
retain the funds expected to be required to meet derivatives margin
6. Obtain a copy of all the documents executed by you from the obligations for next 5 trading days, calculated in the manner
stock broker free of charge. specified by the exchanges. In respect of cash market
transactions, the stock broker may retain entire payin obligation of
7. In case you wish to execute Power ofAttorney (POA) in favour of funds and securities due from clients as on date of settlement and
the Stock broker, authorizing it to operate your bank and demat for next day’s business, he may retain funds/securities/margin to
account, please refer to the guidelines issued by the extent of value of transactions executed on the day of such
SEBI/Exchanges in this regard. settlement in the cash market.
TRANSACTIONS AND SETTLEMENTS d) You need to bring any dispute arising from the statement of account
8. The stock broker may issue electronic contract notes (ECN) if or settlement so made to the notice of the stock broker in writing
preferably within 7 (seven) working days from the date of receipt of
specifically authorized by you in writing. You should provide
funds/securities or statement, as the case may be. In case of
your email id to the stock broker for the same. Don’t opt for ECN
dispute, refer the matter in writing to the Investors Grievance Cell
if you are not familiar with computers. of the relevant Stock exchanges without delay.
9. Don’t share your internet trading account’s password with 14. In case you have not opted for maintaining running account and
anyone. pay-out of funds/securities is not received on the next working day
10. Don’t make any payment in cash to the stock broker. of the receipt of payout from the exchanges, please refer the
matter to the stock broker. In case there is dispute, ensure that you
11. Make the payments by account payee cheque in favour of the lodge a complaint in writing immediately with the Investors
stock broker. Don’t issue cheques in the name of sub-broker. Grievance Cell of the relevant Stock exchange.
Ensure that you have a documentary proof of your
payment/deposit of securities with the stock broker, stating 15. Please register your mobile number and email id with the stock
date, scrip, quantity, towards which bank/ demat account such broker, to receive trade confirmation alerts/ details of the
money or securities deposited and from which bank/ demat transactions through SMS or email, by the end of the trading
account. day, from the stock exchanges.

12. Note that facility of Trade Verification is available on stock IN CASE OF TERMINATION OF TRADING MEMBERSHIP
exchanges’ websites, where details of trade as mentioned in 16. In case, a stock broker surrenders his membership, is expelled
the contract note may be verified. Where trade details on the from membership or declared a defaulter; Stock exchanges gives
website do not tally with the details mentioned in the contract a public notice inviting claims relating to only the “transactions
note, immediately get in touch with the Investors Grievance Cell executed on the trading system” of Stock exchange, from the
of the relevant Stock exchange. investors. Ensure that you lodge a claim with the relevant Stock
exchanges within the stipulated period and with the supporting
documents.

10
17. Familiarize yourself with the protection accorded to the money 19. In case your issue/problem/grievance is not being sorted out by
and/or securities you may deposit with your stock broker, concerned stock broker/sub-broker then you may take up the
particularly in the event of a default or the stock broker’s matter with the concerned Stock exchange. If you are not
insolvency or bankruptcy and the extent to which you may satisfied with the resolution of your complaint then you can
recover such money and/or securities may be governed by the escalate the matter to SEBI.
Bye-laws and Regulations of the relevant Stock exchange
20. Note that all the stock broker/sub-brokers have been mandated
where the trade was executed and the scheme of the Investors’
by SEBI to designate an e-mail ID of the grievance redressal
Protection Fund in force from time to time.
division/compliance officer exclusively for the purpose of
DISPUTES/ COMPLAINTS registering complaints.
18. Please note that the details of the arbitration proceedings, penal
action against the brokers and investor complaints against the
stock brokers are displayed on the website of the relevant Stock
exchange.

11
 POLICIES AND PROCEDURES APPLICABLE TO CLIENTS OF IIFL SECURITIES LIMITED

1. REFUSAL OF ORDERS FOR PENNY STOCKS

IIFL Securities Limited (“IIFL”) normally offers trading facility to its clients in all the compulsorily dematerialised stocks which are listed
on the Stock Exchanges. However IIFL discourages/ restricts trading in penny stocks by the clients as they are susceptible to
manipulation and risky for investors and in turn to IIFL.
“Penny Stocks” for this purpose shall include:
a. Stocks appearing in the list of illiquid securities issued by the Exchanges from time to time.
b. Stocks which are highly illiquid and have a low market capitalization and ‘Z’ Group Securities.
c. Any securities as may be restricted for trading by Exchanges.
d. Any other securities as may be restricted for trading by IIFL based on its internal evaluation.
As a part of Risk Management System, IIFL restricts clients to buy/ sell in penny stocks only on the basis of 100% upfront margin and
on delivery basis. Also IIFL have/may have in place further restrictions in terms of quantity/ value in each/all penny stocks together as
notified by its extant circulars. Further in case of Internet Trading clients, IIFL may at any time at its sole discretion block/ restrict the
client’s online trading terminal to prevent the client from placing orders in such penny stocks through the Online Trading Platform of
IIFL. Further in case the client is able to place an order for penny stocks which are restricted by IIFL through Online Trading Platform or
otherwise, IIFL may not accept such order.
IIFL shall not be held liable for restricting/ prohibiting trade in penny stocks at any time. Further IIFL shall not be held liable or
responsible in any manner whatsoever for any refusal/cancellation of orders for trading in penny stocks/other securities and the Client
shall indemnify IIFL in respect of any loss caused to IIFL by virtue of the Client trading in penny stocks.
2. SETTING UP OF CLIENT’S EXPOSURE LIMITS
As part of risk management, IIFL Securities Limited (“IIFL”) shall set client’s exposure limits depending on the type of securities provided as
Margin/ available funds in the client’s ledger plus Fixed Deposits/ Bank Guarantees provided by the client and the client profile/ financial
status. Exposure limits are also set based on categories of stocks/ position (derivatives) client can trade. Securities that are acceptable as
margin and their categorization may be changed by IIFL from time to time at its sole discretion. Further client categorization may also be
changed based on various factors including trading pattern of clients, profile/ residential status/ financial status of client.
IIFL from time to time shall apply such haircuts as may be decided by IIFL on the approved securities against which the Exposure limits
are given to the client. IIFL may from time to time change the applicable hair cut or apply a haircut higher than that specified by the
Regulators/Exchanges as part of its Risk Management System.
Subject to the client’s exposure limits, client may trade in securities and/ or take positions in the futures and options segment. Client
shall abide by the exposure limits, if any, set by IIFL or by the Exchange or Clearing Corporation or SEBI from time to time. Limits/
Exposure provided shall vary based on the intraday/ delivery/ carry forward positions made by the client.
The exposure limits set by IIFL does not by itself create any right for the Client and are liable to be withdrawn at any time without notice
and the client shall bear the loss on account of withdrawal of such limits. The client agrees to compensate IIFL in the event of IIFL
suffering any loss, harm or injury on account of exposure given and/or withdrawn.
In case of sale of Securities, such sale may at the discretion of IIFL be provided only to the extent of the availability of securities in the
account of the client (DP free Stock, DP lien/ hold marked securities, beneficiary and collateral stock). Further the credit received
against sale may be used for exposure as may be decided by IIFL from time to time.
In case of derivatives, Clients shall be allowed to trade only upto the applicable clientwise position limits set by the Exchanges/
Regulators from time to time. IIFL may from time to time demand additional margin from the client in the form of funds or securities if
there is a requirement for the same and the client shall be required to provide the same.
3. APPLICABLE BROKERAGE RATES
The Schedule of Brokerage and other charges leviable by IIFL on the clients are provide under the heading “Schedule of Brokerage
and Other Charges” in this Form. Within the mentioned scale, the brokerage and other charges as agreed by the client is indicated and
duly signed by the client in that section. If there is any upward revision of brokerage, the same will be informed to the client with 15
days prior notice. However all the brokerage and other charges are subject to the maximum limits as prescribed by SEBI/ Exchanges/
Government and other Regulatory authorities from time to time.

12
4. IMPOSITION OF PENALTY OR DELAYED PAYMENT CHARGES
The clients are required to settle the pay-in/ provide margin within the time limits provided by Exchanges/ SEBI/ IIFL risk management system. In
case the client fails to provide the same within the prescribed time, delayed payment charges shall be levied on the client’s account on any delayed
payments towards trading either in the cash or derivatives segments or on account of any other reason beyond the due date of payment as may be
prescribed by IIFL. Such delayed payment charges shall be directly debited to the account of the Client at the end of every month. This is only a
penal measure and brings in discipline in the clients to clear the dues in time as IIFL had to clear its obligations to the Exchange as per the time
limits set by the Exchanges. IIFL reserves the right of imposition of delayed payment charges on the client account and the client shall be liable for
payment of such charges at such rate as may be prescribed by IIFL from time to time.
5. RIGHT TO SELL CLIENTS SECURITIES OR CLOSE CLIENTS POSITIONS, WITHOUT GIVING NOTICE TO THE CLIENT ON
ACCOUNT OF NON PAYMENT OF DUES. (LIMITED TO SETTLEMENT/MARGIN OBLIGATIONS)
As a part of its Risk Management System, IIFL shall have the sole discretion to square off the open position of the Client and/ or sell clients’
securities (including securities maintained as margin with IIFL and securities lying in client’s beneficiary/ demat account) in case the client
fails to meet its settlement/ margin obligations in time. The specific securities to be sold and the positions to be squared off shall be decided
solely by IIFL. Further, the square off of client’s open position or the selling of securities may be executed on such Exchanges and at such
price as may be decided by IIFL. IIFL shall have no obligation of communicating the same to the Client. IIFL shall not be responsible for any
losses incurred by the client due to such squaring off of the open position of the client. IIFL reserves the right to square off client’s open
positions or sell clients’ securities under following circumstances:
a. where the limits given to the Client have been breached;
b. where the Client has defaulted on their existing obligation and / or have failed to make payments / deliver securities to IIFL within the
stipulated time period as may be prescribed by IIFL.
c. In addition to above, in case of equity and currency derivatives transactions,
I. where the margin or security placed by the Client with IIFL falls short of the applicable minimum margin as may be required to be
maintained by the client;
ii. where Mark to Market Loss on the open position has reached the stipulated % of the margins placed with IIFL and the Client(s)
have not taken any steps either to replenish the margin or reduce the Mark to Market Loss;
iii. if the open position is neither squared off nor converted to Delivery by Client(s) within the stipulated time.
IIFL reserves the right to square off the open position of client and/ or sell client’s securities under the prescribed circumstances, however
IIFL is not obligated and does not guarantee to square off the open positions and/ or sell client’s securities. The client shall be solely
responsible for the trading decisions taken by the client. It shall be the responsibility of the client to make payments towards outstanding
obligations and/ or applicable margins to IIFL in time irrespective of whether IIFL exercises its right to square off the positions of the client in
accordance with the provisions given herein above.
Client shall be solely responsible for any resultant losses incurred to client due to selling of client’s securities by IIFL or squaring off the
client’s open positions or for not doing so. All losses in this regard shall be borne by the CLIENT and IIFL shall be fully indemnified and held
harmless by the CLIENT in this behalf.
The CLIENT accepts to comply with IIFL’s requirement of payment of Margin/ settlement obligations of the Client, immediately failing which
IIFL may sell, dispose, transfer or deal in any other manner the securities already placed with it as Margin/lying in the beneficiary account of
IIFL or square-off all or some of the outstanding F&O positions of the CLIENT as it deems fit at its sole discretion without further reference to
the CLIENT and any resultant or associated losses that may occur due to such square-off/ sale shall be borne by the CLIENT and IIFL shall
be fully indemnified and held harmless by the CLIENT in this behalf at all times.
6. SHORTAGES IN OBLIGATIONS ARISING OUT OF INTERNAL NETTING OF TRADES
In case the client defaults on its existing obligation and in the event the trade has been internally netted off by IIFL, there could be internal
shortages. The internal shortages are marked against the client randomly at the sole discretion of IIFL taking into account the delivery
obligations through Exchanges. In case of failure of delivery marked for internal netting of trade, the same may be met through fresh market
purchases except during the corporate action period of the scrip. The securities to the corresponding buying client will be released
accordingly.
1. For securities having corporate actions and 'no-delivery period' for the corporate action, all cases of short delivery of cum transactions
which cannot be auctioned on cum basis or where the cum basis auction pay-out is after the book closure / record date, would be
compulsory closed out at higher of 10% {20% in BSE} above the official closing price on the auction day or the highest traded price
from first trading day of the settlement till the auction day.

13
 2. In case client has executed sale transaction in subsequent settlement on or before the receipt of pay-out for buy transaction in the
same scrip, the client to ensure the availability of securities through SLBM and/or otherwise in his demat account to meet pay-in
obligation for his sale transaction.
3. In all other cases including where the securities could not be bought in the market, the same shall be compulsory closed out at higher
of 10% {20% in BSE} above the official closing price on the auction day or the highest traded price from first trading day of the
settlement till the auction day.
The loss on account of the said purchases will be charged to the defaulting client's account, the defaulting client will not be eligible for any
profit on account of this. IIFL shall not be responsible for losses to the Client on account of such shortages. All losses to the client on this
account shall be borne solely by the client and the Client shall indemnify IIFL in this respect.
7. CONDITIONS UNDER WHICH CLIENT MAY NOT BE ALLOWED TO TAKE FURTHER POSITIONS OR BROKER MAY CLOSE
EXISTING POSITIONS OF CLIENT
In addition to the conditions as provided under the policy of right to sell securities and close out client’s open position as detailed in point 4
above, IIFL shall have the right to refuse to execute trades/ allow the client to take further positions and/ or close out the existing positions of
client under following circumstances:
a. As a result of any Regulatory directive/ restriction;
b. Non-receipt of funds/ securities and/ or bouncing of cheque received from the client towards the obligations/margin/ ledger balances;
c. Due to technical reasons;
d. securities breaching the limits specified by the Exchanges/ regulators from time to time
e. In case of failure to meet margin including mark to market margins by the client;
f. In case securities to be transacted by client are not in dematerialized form
g. Any other conditions as may be specified by IIFL from time to time in view of market conditions, regulatory requirements, internal
policies etc and risk management system;
h. Due to any force majeure event beyond the control of IIFL
IIFL shall not be responsible for any loss incurred and the client shall indemnify IIFL in this regard.

8. TEMPORARILY SUSPENDING OR CLOSING OF CLIENT’S ACCOUNT AT THE CLIENT’S REQUEST

IIFL may suspend or close the trading account of the client pursuant to SEBI or any other Regulatory directive for such period as may be
prescribed by the respective Regulator. IIFL may further at its sole discretion and with/without information to the CLIENT, prohibit or restrict
or block the CLIENT’s access to the use of the web site or related services and the CLIENT’s ability to trade due to market conditions and
other internal policies including policy with respect to prevention of money laundering.
Client can initiate temporary suspension/ closure of its account at any time by giving a request to IIFL in writing 15 days in advance.
However, such suspension/ closure will be effected subject to clearance of all dues and settlement obligations by the client.
Trades in the account of the client during the period of such temporary suspension shall not be permitted.
Notwithstanding any such suspension/ closure, all rights, liabilities and obligations of the parties arising out of or in respect of transactions
entered into prior to such closure/ suspension shall continue to subsist and binding on the client.
In case the account has been temporarily suspended at the request of the client, the account shall be reactivated only on submission of a
written request for reactivation by the client.
9. DEREGISTRATION OF A CLIENT
Deregistration of the client/ Termination shall be at the sole discretion of IIFL. IIFL may deregister the client if the client breaches the terms
and conditions of the member-client agreement or provides any false information or declarations. Further IIFL may deregister the client if the
client is suspected to be involved in any activities in violation of applicable Rules and Regulations. Further the client may be deregistered
due to any Regulatory directive, market conditions and other internal policies of IIFL including policy with respect to prevention of money
laundering. Such deregistration/termination shall not effect the rights and liabilities of the parties in respect of the transactions executed
before the date of such deregistration/ termination.

14
10. TREATMENT OF INACTIVE ACCOUNTS
Pursuant to SEBI and Exchange directive,Trading and/or demat account will be considered as 'Inactive account' if the client has not
operated the same for continuous period of one year. Such inactive account will be blocked for further transactions by the client. The client
will have to submit following documents / confirmation, for re-activation of such blocked account:
1. Call the customer care centre identifying himself (through validation questions) and requesting for activation of account for placing orders /
transacting in the account; OR
2. Client can give the duly signed request in writing at any Branch offices of IIFL Securities Limited; OR
3. By placing the request for re-activation of account through the Internet Trading portal.
During the blocked period if there is any debit / dues to IIFL Securities Limited in client's account, IIFL shall have the authority to liquidate the
client's position to the required extent during the blocked period.
During the blocked period if any corporate actions or pay-outs are due for return to the client, the same will be affected / returned by IIFL to
the client's account.
11. LIEN
All monies, securities and/ or other property in the Bank/ DPAccount or that may be held by the Stock Broker on the client’s account shall be held at
the sole risk and cost of the client and subject to a lien for the discharge of any and all indebtedness or any other obligation that the Client may have
to Stock Broker, irrespective of whether such obligation of the client is disputed by the client.All of the Client’s securities and/ or other property shall
be held by Stock Broker as security for the payment of any such obligation or indebtedness to Stock Broker.
In enforcing its lien, Stock Broker at its sole discretion may determine which securities and/ or other property are to be sold or which
contracts are to be enforced.
12. PAYMENT
12.1 Time of Payment
12.1.1 The Client shall make all remittances to Stock Broker (i.e. payment for all purchase transactions plus taxes, brokerage, handling charges and
depository related fees and transaction fees of Stock Broker) by the value date for each transaction. The value date for all purchases will be the
pay-in day less two days, where the pay-in day is specified by the Exchange Clearing House for the relevant settlement period. Provided that
subject to Clause 6.1.4 a notional debit may be made with respect to the Limit on the last day of the Settlement Cycle, notwithstanding that actual
payment is due on a later date and such notional debit shall be reversed on receipt of payment.
12.1.2 The Client will also have to make a margin payment for shares purchased and sold either for square-off or delivery or on derivative contracts.
The amount will be as charged by the relevant Exchange. However, in case the Exchange charges a margin amount over and above the
normal margins, Stock Broker can make a margin call to the Client who will need to have to pay the relevant margin as charged by the
Exchange.
12.1.3 Stock Broker shall remit funds to the Client (i.e. payment for all sale transactions less taxes, brokerage, handling charges and depository related
fees and transaction fees of Stock Broker), less any amounts deducted for shortages by the value date. The value date for all sales will be pay-out
day plus two days where the pay-out day is specified by the Exchange Clearing House for the relevant settlement period.
12.1.4 In the event of the Client having made both sales and purchases during a Settlement Cycle on the same Stock Exchange, the amount due
from and to the Client shall be netted off and only the difference shall be payable by or to the Client.Anotional debit or credit as the case may
be, may be made to the Limit at the end of day until the actual payment is made.
12.2 Mode of Payment
No cash payment will be received from/ made to the client as per the extract SEBI/ Exchange/ Income Tax/ PMLA Regulation, Guidelines,
Circulars, etc. Accordingly IIFL will not be responsible for any claim of receipt/ payment in cash by client from/ to IIFL. In the case of a
purchase transaction, the Client shall remit funds within the time period provided in subclause 6.1.1 above to Stock Broker in any of the
following ways:
12.2.1Acceptable credit or debit card, provided Stock Broker has agreed to receipt of payment in this manner, or
12.2.2 Authorized electronic transfer of funds from Client’s BankAccount to Stock Broker’s bank account in the same Designated Bank; or
12.2.3 Demand draft in favour of “IIFL Securities limited – (Client’s Login id) or account payee crossed cheques drawn on designated bank or any other
bank with which the Client maintains a regular account, proof of which is provided at the time of payment. In the case of sub-clauses (1) and
(2) credit will be given to the Client immediately on authentication of payment authorization, however Client has to intimate Stock Broker
immediately after making payment through option as mentioned in subclauses (1) and (2). In the case of (3) credit will be given only on
receipt of clear funds.

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12.2.4 Payment referred to in sub-clauses (1), (2) & (3) shall be accepted only from Client’s account.
12.2.5 Payment shall be made by the Client only as referred to in sub-clauses (1), (2) & (3) above. Stock Broker shall not accept/ acknowledge/ give
credit for any payment made in cash.
12.2.6 The client agrees to pay Rs.500/- to Stockbroker in case if the cheque deposited by client is bounced/ uncleared/rejected due to any reason.
The same shall be deducted from the client’ s ledger account held with the Stockbroker.
12.3 In the case of a sale transaction, Stock Broker shall remit funds to the Client within the time period provided in subclause 6.1.3 above,
provided the Client has delivered the securities sold to Stock Broker within the time prescribed in clause 8.1.1, in any of the following ways
as may be requested by the Client:
12.3.1 Electronic transfer of funds into the BankAccount of the Client opened with the Designated Bank.
12.3.2 Electronic transfer of funds into any other bank account of the Client as may be specified by the Client, and accepted by Stock Broker; or
12.3.3Account payee cheque.
12.3.4All payments shall be made only in the name of the client.
12.4 Please note that the mode of payment should be only by way of account payee crossed cheques or Demand draft in favour of “IIFL
Securities limited – (Client’s Login id). No cash receipts payments will be entertained for any transactions made by the client. IIFL will not be
responsible for any kind of claims raised by the clients regarding payment made in cash. Mobile number is compulsory for opening of
Demat/ Trading account with IIFL.
12.5 Interface with a payment gateway will be offered to the Client at the portal itself.
12.6 DEFAULT IN PAYMENT: The Client agrees that Stock Broker may set off his/ her credit balances on NSE and BSE, hereinafter referred to as
the “Exchanges” against the debit balances in one or more accounts of the Client in relation to the said Exchanges and segments of the
Exchanges.
Without prejudice to the Stock Broker’s other rights (including the right to refer a matter to arbitration), Stock Broker shall be entitled to liquidate/
close out all or any of the Client’s positions in cash segment or derivative segment on any Exchange for nonpayment 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.
On a default by the Client to remit any monies payable to Stock Broker, Stock Broker shall be entitled to appropriate the monies maintained
by the Client in the Minimum Margin Deposit towards its dues. The Minimum Margin Deposit with Stock Broker shall be subject to a lien for
the discharge of any and all indebtedness or any other obligation that the Client may have to Stock Broker. The Ebroking Services shall be
suspended to the Client until such time as the Client replenishes funds adequate to maintain the Minimum Margin Deposit at the stipulated
level.
Not with standing anything contained in these present, any amounts which are overdue from the Client towards trading either in the cash or
derivative segments or on account of any other reason the Client will be charged delayed payment charges at the rate of 2% per month or
such other rate as may be determined by the Stock Broker.
The Client hereby authorises the Stock Broker to directly debit the same to the account of the Client.
12.7 In the event the client makes the specific request to the stockbroker for the physical documents instead of electronic/digitally signed
documents including contract notes/ statement of accounts, etc and subject to the stockbroker being in a position to do so; the client agrees
to pay all such amounts that the stockbroker may charge to cover the operational cost that the stockbroker incurs in preparing and
delivering the said communications, documents, reports and alerts.
12.8 The Client hereby agrees and understands that in case of any noncompliance and/ or default by the Client such as cheque bouncing, trade
change, F&O short margin, UCC violation, price rigging or for any other matters as may be decided by Stock broker from time to time,
without prejudice to the Stock Broker’s other rights, Stock Broker may levy charges/ penalty(ies) on the Client and debit such charges/
penalty in the Client’s account.
12.9 The Client authorizes the Stock Broker to use his discretion to buy, sell or close out any part or all of the contracts held in the Clients account
with the Stock Broker for the protection of the Stock Broker, in case of any default by the Client. The Client agrees to reimburse any or all
such incidental expenses incurred by the Stock Broker.
All the above policies and procedures of IIFL as applicable to the client’s trading account are subject to change/ updation by IIFL from time
to time. The updated policies and procedures of IIFL shall be posted on the website of IIFL www.indiainfoline.com and communicated to
client through Circulars and e-mails.

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 TERMS AND CONDITIONS-CUM-REGISTRATION/ MODIFICATION FORM FOR RECEIVING SMS ALERTS FROM CDSL / NSDL

(*Registration for receiving SMS alerts from CDSL / NSDL is mandatory for the client who are executing the POA in favour of stock broker.)

ANNEXURE 4. In case of joint accounts and non-individual accounts the

service will be available, only to one mobile number i.e. to the
DEFINITIONS:
mobile number as submitted at the time of registration/
In these Terms and Conditions the terms shall have following meaning modification.
unless indicated otherwise: 5. The BO is responsible for promptly intimating to the depository in
1. “Depository” means Central Depository Services (India) Limited the prescribed manner any change in mobile number, or loss of
a company incorporated in India under the CompaniesAct 1956 handset, on which the BO wants to receive the alerts from the
and having its registered office at 17th Floor, P.J. Towers, Dalal depository. In case of change in mobile number not intimated to
Street, Fort, Mumbai 400001 OR National Security Depository the depository, the SMS alerts will continue to be sent to the last
Limited a company incorporated in India under the Companies registered mobile phone number. The BO agrees to indemnify
Act 1956 and having its registered office at 4th Floor, ‘A’ Wing, the depository for any loss or damage suffered by it on account
Trade World, Kamala Mill Compound, Senapati Bapat Marg, of SMS alerts sent on such mobile number.
Mumbai 400 013, and all its branch offices and includes its RECEIVING ALERTS:
successors and assigns.
1. The depository shall send the alerts to the mobile phone
2. ‘DP’ means Depository Participant of CDSL / NSDL. The term number provided by the BO while registering for the service or
covers all types of DPs who are allowed to open demat to any such number replaced and informed by the BO from time
accounts for investors. to time. Upon such registration/change, the depository shall
3. ‘BO’ means an entity that has opened a demat account with the make every effort to update the change in mobile number within
depository. The term covers all types of demat accounts, which a reasonable period of time. The depository shall not be
can be opened with a depository as specified by the depository responsible for any event of delay or loss of message in this
from time to time. regard.
4. SMS means “Short Messaging Service” 2. The BO acknowledges that the alerts will be received only if the
mobile phone is in ‘ON’ and in a mode to receive the SMS. If the
5. “Alerts” means a customized SMS sent to the BO over the said mobile phone is in ‘Off’’ mode i.e. unable to receive the alerts
mobile phone number. then the BO may not get/ get after delay any alerts sent during
6. “Service Provider” means a cellular service provider(s) with such period.
whom the depository has entered/ will be entering into an 3. The BO also acknowledges that the readability, accuracy and
arrangement for providing the SMS alerts to the BO. timeliness of providing the service depend on many factors
7. “Service” means the service of providing SMS alerts to the BO including the infrastructure, connectivity of the service provider.
The depository shall not be responsible for any non-delivery,
on best effort basis as per these terms and conditions.
delayed delivery or distortion of the alert in any way whatsoever.
AVAILABILITY:
4. The BO further acknowledges that the service provided to him is
1. The service will be provided to the BO at his/ her request and at an additional facility provided for his convenience and is
the discretion of the depository. The service will be available to susceptible to error, omission and/ or inaccuracy. In case the
those accountholders who have provided their mobile numbers BO observes any error in the information provided in the alert,
to the depository through their DP. The services may be the BO shall inform the depository and/ or the DP immediately in
discontinued for a specific period / indefinite period, with or writing and the depository will make best possible efforts to
without issuing any prior notice for the purpose of security rectify the error as early as possible. The BO shall not hold the
reasons or system maintenance or for such other reasons as depository liable for any loss, damages, etc. that may be
may be warranted. The depository may also discontinue the incurred/ suffered by the BO on account of opting to avail SMS
service at any time without giving prior notice for any reason alerts facility.
whatsoever. 5. The BO authorizes the depository to send any message such as
2. The service is currently available to the BOs who are residing in promotional, greeting or any other message that the depository
India. may consider appropriate, to the BO. The BO agrees to an
ongoing confirmation for use of name, email address and
3. The alerts will be provided to the BOs only if they remain within the mobile number for marketing offers between CDSL / NSDL and
range of the service provider’s service area or within the range
any other entity.
forming part of the roaming network of the service provider.

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6. The BO agrees to inform the depository and DP in writing of any their function or their performance or for any loss or damage whenever
unauthorized debit to his BO account/unauthorized transfer of and howsoever suffered or incurred by the BO or by any person resulting
securities from his BO account, immediately, which may come to from or in connection with availing of SMS alerts facility. The Depository
his knowledge on receiving SMS alerts. The BO may send an E- gives no warranty with respect to the quality of the service provided by the
mail to CDSL at [email protected]. OR NSDL at service provider. The Depository will not be liable for any unauthorized
[email protected]. The BO is advisednot to inform the service use or access to the information and/ or
provider about any such unauthorized debit to/transfer of
securities from his BO account by sending a SMS back to the SMS alert sent on the mobile phone number of the BO or for fraudulent,
service provider as there is no reverse communication between duplicate or erroneous use/ misuse of such information by any third
the service provider and the depository. person.

7. The information sent as an alert on the mobile phone number LIABILITYAND INDEMNITY:
shall be deemed to have been received by the BO and the The Depository shall not be liable for any breach of confidentiality by
depository shall not be under any obligation to confirm the the service provider or by any third person due to unauthorized access
authenticity of the person(s) receiving the alert. to the information meant for the BO. In consideration of the depository
8. The depository will make best efforts to provide the service. The providing the service, the BO agrees to indemnify and keep safe,
BO cannot hold the depository liable for nonavailability of the harmless and indemnified the depository and its officials from any
service in any manner whatsoever. damages, claims, demands, proceedings, loss, cost, charges and
expenses whatsoever which a depository may at any time incur,
9. If the BO finds that the information such as mobile number etc., has sustain, suffer or be put to as a consequence of or arising out of
been changed with out proper authorization, the BO should interference with or misuse, improper or fraudulent use of the service
immediately inform the DP in writing. by the BO.
FEES: AMENDMENTS:
Depository reserves the right to charge such fees from time to time as it The depository may amend the terms and conditions at any time with
deems fit for providing this service to the BO. or without giving any prior notice to the Bos. Any such amendments
DISCLAIMER: shall be binding on the BOs who are already registered as user of this
service.
The depository shall make reasonable efforts to ensure that the BO’s
personal information is kept confidential. The depository does not GOVERNING LAW AND JURISDICTION:
warranty the confidentiality or security of the SMS alerts transmitted
Providing the Service as outlined above shall be governed by the laws
through a service provider. Further, the depository makes no warranty or
of India and will be subject to the exclusive jurisdiction of the courts in
representation of any kind in relation to the system and the network or
Mumbai.

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 TERMS & CONDITIONS FOR DISTRIBUTION OF SECURITIES

The Stock broker is also engaged in marketing and distribution of IPOs of 5) The stock broker may refuse to act on any instructions unless they
Securities of Issuers and registered with the Association of Mutual Funds are given in the manner and form acceptable to the stock broker.
in India (AMFI) as a Mutual Fund Distributor. The Stock broker is providing However, the stock broker shall have no responsibility to
a facility through its ONLINE services to apply/purchase/redeem/sale/ determine the authenticity of any instructions given or
buyback or otherwise deal in the units of Mutual Funds and securities purported to be given by the client. The client shall not hold the
(hereinafter referred to as ‘transactions’) through its website (located at url stock broker liable on account of the stock broker acting in good
faith on instructions given by the client or its authorized
http://www.indiainfoline.com and such other internet sites that the stock
representative.
broker may launch).
6) The stock broker may at its discretion not carry out the client’s
The Client wishes to avail of the facility of the said transactions and such instruction where the stock broker has reasons to believe
other facilities offered through the stock broker’s website on the following (which discretion of the stock broker the client shall not question
terms and conditions set forth herein below. The terms and conditions or dispute) that the instructions are not genuine or are otherwise
contained herein are binding on the client. The client has agreed to obtain improper/ unclear/ raise a doubt. The stock broker shall not be
services from the Stock Broker after fully understanding the terms and liable if any instructions are not carried/ partly carried out for any
conditions. The terms and conditions shall be subject to modification from reason, whatsoever.
time to time and such modifications are binding on the client. For the 7) The client understands and agrees the mutual fund/RTA/ Issuer
purpose of this Agreement, National Stock Exchange of India Limited and Company may cancel, close or reject any contract suo-moto
the Bombay Stock Exchange Limited shall be known as the Stock without giving any reason thereof. In the event of such
Exchanges. cancellation, closure or rejection, the stock broker shall be
1) The client shall authorize the stock broker by executing a Power entitled to cancel relative contract(s) with Client.
of Attorney in the favour of the stock broker to execute 8) The client understands and agrees that the Stock Exchange
instructions of the client or its authorized representative with may cancel, close or reject any trade suomoto without giving
regard to the transactions including but not limited to acquire by any reason thereof. In the event of such cancellation, closure or
subscribing to or by purchase of securities and to sell, transfer, rejection, the stock broker shall be entitled to cancel relative
endorse the securities (including but not limited to Initial Public contract(s) with Client.
Offerings, Buy back offers, right issues etc.) or redeem the
same either through Internet (using the identification number 9) In case of Mutual Funds, the client agrees and acknowledges
issued by any Mutual Fund from time to time) or otherwise that the stock broker shall provide the facilities as provided in
and/or to sign and execute all transfer deeds whether as this agreement only in respect of the select Mutual Funds, with
transferor or transferee and such other instruments, application whom the stock broker has entered into a separate
and papers as may be necessary for the purpose of acquiring, arrangement/ agreement.
transferring/redeeming the same, marking pledge/ lien on such 10) The client undertakes to read all the relevant Offer Documents and
securities and/or for transferring the investments in the units of addendums thereto and terms and conditions of all schemes of all
Mutual Fund from one scheme to another or between mutual mutual funds and other issues of securities including but not limited
Funds, to make application for, or to renounce and sign to Initial Public Offerings/ Public Offers, Rights issue and Buy Back
renounciation forms in respect of bonds/ debentures, right offers, offered through stock broker’s website; before entering into
shares and additional shares of any company/ Body/ Authority any transactions through the website and agrees to abide by the
and to receive and hold such rights or additional shares, bonds terms, conditions, rules and regulations as applicable from time to
or debentures. time.

2) All instructions given by the client/ its authorized representative 11) The client shall ensure that the transactions through the stock
shall be binding on the client. The stock broker may furnish a broker are executed in accordance with the applicable laws,
certified copy of the Power of Attorney and other documents on byelaws, rules and regulations governing the specific
behalf of the client to the Company/ Registrar/ Mutual Fund or investment product. The stock broker may, from time to time,
any third party. impose and vary limits on the orders which the client may place,
including but not limited to exposure limits, turnover limits and
3) The client agrees that the instructions with regard to the limits as to numbers. The client agrees that the broker shall not
transactions may be in the client’s sole name or in the name of be responsible for any variation or reduction that may be
the client jointly with other persons. deemed necessary by the stock broker based on its risk
4) The instructions with regard to the transactions may be given perception and other relevant factors.
through internet or telephone or any other reasonable mode as 12) The stock broker shall not be under any duty to verify
permitted by the stock broker. compliance with any restriction on the client’s investment
powers.

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13) The client is responsible for the personal and bank related not be bound to) square up the transaction at any time at the
details provided by the client. Neither the stock broker nor any of client’s sole risk and cost. Any loss arising on such squaring up
the Mutual Funds/ Issuers or their respective Registrars shall will be borne solely by the client and the client shall pay to the
accept any liability which may arise as a consequence of the stock broker the additional amount that may be payable by the
erroneous information provided by the client. client, the stock broker’s demand being conclusive.
14) The client agrees that the stock broker is entitled to disclose to a 23) The client declares and confirms that the amount being invested
third party, all such information pertaining to the Client as may by the client either directly or through its Power of Attorney
be required from time to time, for the client to be able to avail of holders, in any schemes of all mutual funds or other securities
any or all of the services provided by the stock broker under this including but not limited to Initial Public Offerings/ Public Offers,
agreement. Rights issue and Buy Back offers is obtained through legitimate
15) In case of change of address and personal details of the client, sources and is not held or designed for the purpose of
the client shall send a letter duly signed by all the holders of the contravention of the provisions of any Act, Rules and
demat account to the stock broker giving intimation of the Regulations or any statue or legislation or any other applicable
change. Laws or any Notifications, directions issued by any
Governmental or StatutoryAuthority from time to time.
16) The client agrees and understands that the folio number of the
client in respect of the Mutual Fund schemes shall be received by 24) In case the client is a Non-resident Indian, the client confirms
the stock broker from theAsset Management Company. that the funds are remitted from abroad through approved
banking channels or from the NRE/NRO/ FCNR account.
17) The Client agrees that the client shall not, without prior
intimation and acknowledgement of the stock broker, deal/ 25) If for any reasons, the stock broker is unable to carry out the
liaise with the Issuer Company/ Mutual Fund/ Asset transactions as instructed by the client/ Client’s authorised
Management Company or its respective Registrars in respect representative to the extent of full quantity of units/ securities,
of the services availed under this agreement. the stock broker shall be entitled at its discretion and the client
hereby irrevocably authorizes the stock broker to carry out a
18) Further, any change in the details of the client including but not transaction of a lesser quantity of units/ securities. The stock
limited to the Demat account, Bank Account, Address, shall be first
broker shall not be responsible for the non-execution of the
intimated to the stock broker who may in turn liaise with the Issuer
client’s instructions for the entire quantity or the remaining
Company/ Mutual Fund/Asset Management Company or its
respective Registrars to update such changes. The Issuer quantity.
Company/ Mutual Fund/ Asset Management Company or its 26) The client agrees and acknowledges that any instruction given or
respective Registrars may reject such requests and in such an purported to be given by the client / its authorized representative
event the stock broker shall not be liable for any such rejection. before the cut off time as may be intimated by the stock broker to
the client from time to time, will be processed on the same day. Any
19) The client further agrees that the client shall not close/change
instruction received after the cut off time will be processed on the
the details of the Demat account/ Bank account without prior
next working day, if applicable.
notification to the Stock broker and the Client agrees that the
stock broker may instruct the Depository Participant/ Bank of 27) In case of Mutual Fund, applicable Net Asset Value (NAV) shall be
the Client to reject any such request received from the Client. as per the Offer Document and SEBI Rules and Regulations. The
units of scheme shall be allotted, redeemed or switched, as the
20) The Client shall provide the stock broker with its Permanent case may be, at the NAV prevalent on the date of the application, if
Account Number (PAN). In the event the Client has mentioned “Not the application for purchase, redemption or switch is received by
Applicable” against PAN in the Application Form, the client the Fund before the cut-off time as specified on the website and
confirms that the client is exempted from obtaining a PAN under consistent with the terms of the scheme. Any request falling due on
the provisions of the Income TaxAct, 1961. holiday would be processed on the next business day and
However, in the event the client’s bid /application is for Rs. respective NAV would be applicable as per Mutual Funds offer
50,000 or more and PAN is not provided, the client shall be documents.
required to submit Form 60 or Form 61 as the case may be 28) In case of other securities, the order for purchase, sell, offer
together with permissible documents as proof of address. under Buy Back etc. shall be accepted by the Stock Broker only
21) The client acknowledges that the purchase / application if the same is received by the cut off date as indicated on the
instructions shall be processed by the stock broker only after website and consistent with the terms of the offer.
sufficient funds to cover the purchase / application price and 29) The client agrees and acknowledges that after the first
other costs and charges are received by the stock broker. purchase transaction in any Mutual Fund, the client may not be
22) If after execution of any transaction it is for any reason found that permitted to transact till the folio number is allotted. The stock
the stock broker has not been provided with sufficient funds by the broker does not accept any liability for delay in processing time
client, the client shall pay the deficient amount to the stock broker at the Mutual Fund’s or Registrar’s end.
forthwith on demand, failing which the stock broker may (but shall 30) The stock broker shall credit the proceeds of the sale /

20
 redemption etc., if received by the stock broker, any of the Corporation or other body in registering or transferring units to
Investment Products only after the stock broker has received the names of the clients of for any interest, dividend or other
the same unless specifically agreed otherwise. loss caused to the client arising therefrom.
31) The Client acknowledges that the stock broker shall not be 40) The client agrees to provide the stock broker with any
under any obligation to provide him with any tax, legal, confirmation/ declaration or any other document that the
accounting, investment advice or advice regarding the concerned Issuer/ Asset Management Company or any other
suitability or profitability of investment of any kind, nor does the entity may from time to time require the stock broker to collect
stock broker, give any advice or offer any opinion with respect to from the client in respect of the services offered under this
the nature, potential value or suitability of any particular agreement.
transaction or investment strategy.
41) The stock broker shall not be responsible for any changes in the
32) It is explicitly stated herein that the Mutual Fund Schemes/ Offer data of any scheme as carried out in the Offer document or any
Documents/ other schemes offered by the stock broker, have other documents/ material issued by Asset Management
not been/ shall not be understood as recommended by the company/ Issuer Company/ Mutual Fund.
stock broker.
42) The stock broker does not accept any liability for delay in
33) The client can view his/ her/ its transactions on the website. A processing time at the Mutual Fund’s/ Issuer or Registrar’s end.
physical copy of the transactions statement or the account The client agrees that the stock broker shall not be liable or
statement shall be sent by the stock broker only on a written responsible for not executing any transactions for any reason,
request from the client. whatsoever.
34) In case an application is made for Initial Public Offer/Public 43) Neither the stock broker, nor any of the Mutual Funds/nor the
Offer/ Units of Mutual Fund through the stock broker, the client issuer shall be liable for any failure to perform its obligations, to
authorizes the stock broker to collect on client’s behalf, the the extent that such performance had been delayed, hindered
refund amount, if any, from the Issuer Company/ Registrar/ or prevented by systems failures network errors, delay or loss of
Asset Management Company/Mutual Fund and subsequently data due to the aforesaid, acts of God, floods, epidemics,
credit the same to client’s Bank account, after set-off/ quarantine, riot or civil commotion and war.
adjustment of dues payable by the Client on account of
44) The client agrees and understands that the application in
obligations incurred in connection with the application.
Mutual Fund/ Initial Public Offering shall be subject to the
35) The client further agrees that the stock broker shall not be held applicable Acts, Rules, Regulations, guidelines, circulars,
responsible for non-allotment of securities either fully or partly notifications, and directives issued by the Regulatory
to the client, for any reason whatsoever. The stock broker shall Authorities and Offer Document issued by the respective
not be held responsible in case due to some reason the Mutual Fund/ Issuer.
bid/application/ revision instructions sent by the client is not
45) The client further understands and agrees that he/ she shall not
received by it, or if the bid / application/revision could not be
place trades at unrealistic prices from current market price of
uploaded to the Stock Exchange, or could not be sent to the
the security or trade in illiquid securities which create artificial
Bankers/ Registrar to the issue.
liquidity or amounts to manipulation of prices or cross/
36) The stock broker shall not be held responsible for non –receipt/ synchronized trades.
delay in/ incorrect receipt of fund, if any, from the Registrar/
46) The stock broker shall provide its services on a best efforts
Company. The stock broker shall not be held responsible for
basis. However in respect of mutual funds, other securities,
incorrect Tax Deduction at Source (TDS) by the Registrar/
including but not limited to Initial Public Offering, Rights issue,
company, if applicable, or for nonreceipt or delay in/ incorrect
Buy Back Offers offered through its website the stock broker
receipt of TDS Certificate, if any from the Registrar/ Company/
shall not be liable for any failure or for any loss, damage or other
Mutual Fund.
costs arising in any way out of:
37) The stock broker shall not be liable for any loss or damage
a) System failure including failure of ancillary or associated
caused by reason of failure or delay of the mutual fund to deliver
systems, or fluctuation of power, or other acts of
any units purchased even though payment has been made for
God/force majeure;
the same or failure or delay in making payment in respect of any
sold though they may have been delivered. b) Accident, transportation, neglect, misuse, errors, frauds
on the part of the client or any agent of the Client or agents
38) The client understands that the corporate actions including but
or any third party, or
not limited to Dividends, declared by the Issuer Company/
Mutual Fund shall be directly paid by the Issuer Company/ c) Any fault in any attachments or associated equipments of
Mutual Fund to the client. the client
39) The stock broker shall also not be liable to the client for any delay, d) Any incidental, special or consequential damages
failure or refusal of the Mutual Fund/any Issuer Company / including without limitation of loss of profit.

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 Terms and Conditions for availing Mutual Fund Service System (MFSS) facility and BSE StAR MUTUAL FUND offered by NSE and
BSE respectively

1. Definition: 3.5 The client shall be wholly responsible for all his investment
decisions and instruction.
In these terms and conditions, the terms shall have following
meaning unless stated otherwise: 3.6 The client shall ensure continuous compliance with the
requirements of the NSE, BSE, SEBI andAMFI.
1. “BSE” shall mean Bombay Stock Exchange Limited
3.7 The Client shall pay to the Participant fees and statutory levies
2. “Exchanges” shall mean NSE and BSE jointly
as are prevailing from time to time and as they apply to the
3. “Investor/ Client” shall mean client of the Participant who have Client’s account, transactions and to the services that
requested for registration for Mutual Fund Trading facilities. Participant renders to the Client.
4. “Participant” shall mean IIFL Securities Limited 3.8 The client will furnish information to the Participant in writing, if
any winding up petition or insolvency petition has been filed or
5. “Mutual Fund Transaction Facilities” shall mean MFSS and
any winding up or insolvency order or decree or award is passed
BSE StAR MUTUAL FUND jointly
against him or if any litigation which may have material bearing
6. “NSE” shall mean National Stock Exchange of India Ltd. on his capacity has been filed against him.
2. Pre-requisities: 3.9 In the event of non-performance of the obligation by the
Participant, the client is not entitled to claim any compensation
Pre-requisites for becoming Investor/ Client for the Mutual Fund
either from the Investor Protection Fund or from any fund of
Transaction facilities
NSE or NSCCL or BSE.
2.1 The Client is desirous of investing in units of mutual fund
3.10 In case of any dispute between the Participants and the
schemes through Mutual Fund Transaction facilities.
investors arising out of the Mutual Fund Transaction facilities,
2.2 The Client intends to execute his/her instruction for the NSE and/or NSCCL and BSE agrees to extend the necessary
subscription/redemption of units of Mutual Fund Schemes support for the speedy redressal of the disputes.
through the Participant of the Mutual Fund Transaction facilities.
4. Additional Terms and conditions:
2.3 The client has satisfied itself of the capacity of the Participant to
4.1 The client understands and agrees that IIFL Securities Limited
deal in Mutual Fund units and wishes to execute its instruction
shall make available the Mutual Fund Transaction Facilities for the
through the Participant and the client shall from time to time
schemes of Mutual Funds which have entered into an agreement
continue to satisfy itself of such capability of the Participant before
with IIFL Securities Limited (“eligible schemes”).
executing transacting through the Participant.
2.4 The Client has approached to the Participant with the 4.2 Mutual fund Transaction Facilities provided by IIFL Securities
application for availing the Mutual Fund Transaction facilities. Limited shall be available for the units of the eligible schemes
which are in dematerialized form. The said facility shall not be
2.5 The client has submitted relevant KYC (Know Your Client) provided for the units of the schemes which are not available in
details to the Participants. dematerialized form.
3. Terms and Conditions: 4.3 Client agrees to provide the correct information with respect to
its account including information with regard to Bank and Demat
3.1 The client shall be bound by circulars issued by Exchanges,
account of the client. Any loss/ damages caused due to wrong
Rules, Regulations and circulars issued there under by SEBI
information being submitted by the client shall be sole
and relevant notifications of Government authorities as may be
responsibility of the client and the client shall keep the
in force from time to time.
Participant indemnified for the same.
3.2 The client shall notify the Participant in writing if there is any
4.4 Fees: Participant reserves the right to charge such fees from
change in the information in the ‘client registration form’
time to time as it deems fit for providing the services to the Client
provided by the client to the Participant at the time registering as
and the Client agrees and undertakes to pay fees / brokerage
a client for participating in the Mutual fund transaction facilities
and statutory levies/charges as may be levied by the Participant
or at any time thereafter.
from time to time.
3.3 The client shall submit to the Participant a completed
4.5 The Client agrees and understands that the Participant is only a
application form in the manner prescribed format for the
facilitator for the client for applying in the Mutual Fund units.
purpose of placing a subscription order with the Participant.
Allotment of units shall be at the sole discretion of the respective
3.4 The client has read and understood the risks involved in Asset Management Company (“AMC”) and the Participant shall
investing in Mutual Fund Schemes. not be held liable or responsible for any act/ deed/ non-action of
theAMC.

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4.6 The client agrees not to hold the Participant responsible for any 4.13 The Client agrees and understands that the terms and conditions
transactions rejected by the Exchanges/ AMC due to any as mentioned in the Member - Client agreement and Annexure
reasons. thereto, clauses pertaining to Internet Trading and DP - Client
agreement entered into with the Participant in its capacity as Stock
4.7 The Client agrees and undertakes to provide funds to the Broker and Depository Participant continues to remain applicable
Participant equivalent to the subscription amount and applicable for transacting in Mutual Fund units.
brokerage/ fees/ charges before applying for mutual fund units
through the Participant. The client further agrees and authorizes 4.14 The client agrees to receive all trade confirmations, statements
the Participant to utilize the surplus funds in the client’s Broking including statement of account, etc in electronic form at the e-mail
account held with the Participant in its capacity as a Stock Broker id provided by the client in the KYC form or as would be changed
and transfer funds to the extent of subscription amount and/ or and intimated to the Participant from time to time.
applicable brokerage, fees and charges (in case of both
4.15 The client agrees to indemnify and keep safe, harmless and
subscription and redemption) to meet the debit in the client’s
indemnified the Participant and its officials from any damages,
Mutual fund transaction account.
claims, demands, proceedings, loss, cost, charges, penalties and
4.8 The Client agrees and understands that in absence of sufficient expenses whatsoever which a Participant may at anytime incur,
funds in the client’s account, the Participant may not execute the sustain, suffer or be put to as a consequence of or arising out of
client’s instruction for applying in any Mutual fund scheme. interference with or misuse, improper or fraudulent use of the
mutual fund transaction facilities by the Client.
4.9 The client agrees and understands that in case physical
documents are being submitted for any transaction, the Client 4.16 The Client and the Participant agrees to refer any claims and/ or
shall be solely responsible for the timely submission of the disputes to the Arbitration under the Indian Arbitration and
same. Participant shall not be responsible for any lost profits or ConciliationAct, 1996.
charges levied by Exchanges/ AMC, etc due to non-submission 4.17 The Participant may amend the terms and conditions with a
of documents within the prescribed time limits. notice to the Client.
4.10 The client agrees that before giving any instruction for sale/ 4.18 Instructions issued by Authorised representatives, if any of the
redemption order of Mutual fund units, the client shall ensure that client shall be binding on the client in accordance with the letter
the required Mutual Fund units are transferred from the client’s
authorizing the said representative to deal on behalf of the said
demat account to such account as may be prescribed by the
client.
Participant. The Client agrees and understands that the Participant
shall check the availability of units prior to execution of sale/ 4.19 The Service as outlined above shall be governed by the laws of
redemption order and in case of non-availability of the same the India and will be subject to the exclusive jurisdiction of the courts
Participant shall have a right to reject/refuse the order. The in Mumbai
Participant shall not be held responsible for non execution of any
order in case the units are not available in the account as 4.20 The Client have read and understood the terms and conditions
prescribed by the Participant. mentioned above and agree to abide by them and any
amendments thereto made by the Participant from time to time.
4.11 The Client agrees that the Participant may refuse to execute any
buy/ sell order or allow any trade or reject any trade as per its Risk 4.21 The Client is aware that mere acceptance of the registration
Management Policy or for any other reason as it may deem fit, from form does not imply in any way that the request has been
time to time, without any obligation of prior intimation to client and accepted by the Participant for providing the mutual fund
the client agrees to abide by the same. transaction facilities.
4.12 In case of units wrongly/ erroneously subscribed and delivered
in my account, the Participant is authorised to automatically
transfer the units in its pool/ beneficiary or other account without
client’s consent.

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 Terms and Conditions for Systematic Investment in Mutual Fund and/or Securities

1. DEFINITIONS : • “SIP Due date” means the date on which the amount payable
In these Terms and Conditions the terms shall have following towards the SIP order becomes due which shall be two days
meaning unless indicated otherwise: prior to the SIP order date.

• “AMC” means Asset Management Company licensed by • “SIP Order date” means the date on which SIP order becomes
Securities and Exchange Board of India (“SEBI”) as an asset due for execution.
manager offering various mutual fund schemes.
• “SIP Execution Date” means the dates on which the order will
• “Bank(s)” means any bank or a financial institution or any service be executed in client’s account as per the SIP instruction.
provider operating in India with which IIFL has entered into an
agreement for offering various facilities through the Internet, which • “IIFL” means IIFL Securities Limited.
facilities and services including net banking facilities and providing
authorization (from third party clearing house networks) and • “SIP Installment No” means Serial Number of the purchase
settlement facilities in respect of payment instructions initiated by order that will be executed as per SIP instruction.
the Client on the IIFL Online MF Account and/or Website using
credit /debit card/online banking account. 2. INSTRUCTION:
• “IIFL Online MF Account” means an online account provided a) A client can give one or more SIP Instructions. Such instructions
by IIFL to the Client through which the Client undertakes may be given either in writing or through the online facility
transactions in mutual fund units provided by IIFL or through recorded telephone lines. Maximum
Number of scrips that may be selected in single STOCKSIP
• “ISC” means Investors Service Center managed and provided application is 10. In case of SIP in Mutual Fund units, only one
by the Mutual Funds or their Asset Management Companies to mutual fund scheme can be selected at a time.
service the investors.
b) Client shall provide all the details in the SIP Instruction including
• “SIP” means Systematic Investment Plan for investment in the SIP Debit Amount, SIP debit amount, SIP frequency and SIP
mutual fund units as offered by AMCs for various mutual fund period.
schemes launched by them and/or systematic investment in
securities. c) Client shall provide IIFL with a copy of valid Permanent Account
Number (“PAN”) and other details as required in the format as
• “SIP Instruction” means instructions given by the client for may be prescribed by IIFL, AMC and/or CDSL Ventures (India)
SIP. SIP instruction can be given only for purchase and not for Limited (CVL) or any other authority or body that may be
sale of securities/mutual fund units. appointed for providing KYC verification by the regulator from
• “SIP Period” means the total period of SIP as per the SIP time to time for all registered applicants.
Instruction. a) For execution of SIP transaction though IIFL Online MF
• “SIP Frequency” means the frequency of SIP as provided in Account, client has to subscribe for the said service by filling up
SIP Instruction. Such frequency can be fortnightly, monthly or the Subscription Form. Registration granted to the Client
quarterly as may be permitted by IIFL/AMC. comprises a non-transferable, revocable and non-exclusive
license to use the IIFL Online MFAccount for bonafide purposes
• “SIP Start Date” means the date specified in the SIP Instruction only.
to start the SIP
b) Client may cancel the SIP Instruction at any time by submitting
• “SIP Debit Amount” means the amount of SIP as specified by the request in writing or through the online facility provided by
client for execution of SIP instruction. In case of mutual fund IIFL. Such cancellation request should be received by IIFL
units, it shall be as specified byAMCs for respective mutual fund atleast 30 days prior to the next SIP Due Date. In case of any
schemes as selected by client and in case of SIP in securities, it SIP Due date falling during the notice period of such
shall comprise of SIP value and applicable taxes, charges and cancellation request, IIFL may at its sole discretion debit the SIP
brokerage. Debit Amount on such SIP Due date and execute the SIP order
• “SIP Value” means (SIP Quantity * Market price of security on on the SIP order date.

SIP Due date) + applicable taxes/brokerage/charges) c) The cancellation of the SIP instruction shall be effective from
such date as may be intimated by IIFL.
• “SIP Quantity” means the units of mutual fund and/or quantity of
d) The Client shall fulfill all the obligations arising in the client’s
securities that shall be purchased as per the ‘SIP Instruction’
account before the effective date of such cancellation of the SIP
• “SIP Order” means each transaction to be executed in the instruction.
client’s account as per SIP instruction.

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Transaction Process and Delivery Mechanism for Mutual Funds. to an off-line folio through a duly signed written request
submitted to IIFL in the format as specified on the website. The
In case of SIP through ledger : A user can start a SIP (first order)
only on the prospective START DATE selected from the list of AMC
request would be subsequently confirmed by the AMC and the
specified dates e.g. if Registration Date is July 16 and client opts for conversion of the online folio to an offline folio shall take place
ledger option and specified dates are 5,10,15,20,25 then first order within 15 business days from the date of submission of such
of SIP can go earliest only on July 20. If user registers a SIP on request to IIFL.
July 20, then the first order can be generated on July 20, itself. • Existing folios of clients can be converted to an online folio by
In case of SIP through Bank : Auser can start a SIP (first order) giving a duly signed written request to convert such existing
only on the prospective START DATE selected from the list of folios into online folios to AMCs in their specified format and to
AMC specified dates e.g. if Registration Date is July 16 and IIFL in format as specified on the website. The offline folios will
specified dates are 5,10,15,20,25 then first order of SIP can go be converted into online folios after the subsequent
earliest only on August 20. There will be a gap of 30 days in SIP confirmation of the same by theAMC to IIFL.
registration date and SIP START DATE. 3. PAYMENT:
However, after receiving SIP registration requests from • Client can make the payment towards execution of SIP either by
CLIENTS, IIFL Securities limited will register the SIP as per giving ECS mandate/Standing Instruction to its designated
client request on BSE STARMF/ MFSS, the subsequent orders bank for transfer of funds towards SIP Debit amount OR by
will be generated in the selected specified Date only. giving Authorisation to IIFL to debit clients ledger account for
Accordingly, the CLIENT will be required to maintain sufficient SIP DebitAmount.
balance in his ledger in case of SIP through LEDGER /BANK. • Mode of payment for SIP Debit Amount can not be modified
After matching the funds pay-in with the funds obligations of during the SIP period.
client, IIFL will process the subscription details and forward the • The client shall not revoke such ECS mandate / Standing
same to the BSE Star MF/ MFSS for necessary action at their Instruction/ Ledger Debit Authorization during the SIP period. In
end. case the same is revoked during the SIP period, IIFL at its sole
discretion may terminate the SIP Instruction given by the client.
The settlement will take as per the settlement calendar provide
by BSE/NSE from time to time. • IIFL shall execute the SIP order as per the SIP Instruction on the
SIP Execution date. Any excess SIP amount transferred through
Transactions executed through Online MF Account: the ECS mandate in client’s account shall be retained in the client’s
• Only client shall be permitted to access and use the IIFL Online MF trading account maintained with IIFL. No interest shall be payable
Account on the website on its behalf, and any Transaction that by IIFL on such excess amount retained in the client’s account.
takes place as a result of the same under such IIFL Online MF On written request of the client, IIFL may release such excess
Account shall be deemed to be authorized by the Client. The Client SIP amount in the client’s account.
shall execute a Power ofAttorney in favour of IIFL Securities limited
in the prescribed format. • In case of SIP in securities, SIP Debit Amount shall be arrived at
as below:
• The Client shall be provided a single login-id and password for
the IIFL Online MFAccount. For Payment Through bank (ECS/Standing Instruction):

• The Clients monies for any Transaction shall be collected in In case of ECS through bank, SIP instruction can be given
IIFL’s pool account and then transferred to the respective AMC specifying the SIP DebitAmount and not the SIP Quantity.
or may be directly transferred from the Clients account to the In case of ECS through bank, SIP Debit amount can be debited
respectiveAMCs account, as the case may be. from the investor’s bank account on or before two days prior to
• With respect to any Transaction pertaining to mutual funds, the the SIP order date.
Client will get the website account statement in electronic Minimum SIP DebitAmount in case of ECS shall be Rs. 3000/-or
format. value of 2 scrips as per previous closing price on the SIP
• All the purchase transactions pertaining to mutual funds, made Registration date whichever is higher. SIP Amount should be
through the IIFL Online MF Account and/or website shall be displayed on the basis of previous closing price of a particular
allotted an online folio number or will get added to an existing security in NSE/BSE plus 10% of the SIP amount as free
online folio no. balance.

• The client cannot execute any transaction of the mutual fund For Example if A wants to buy INFOSYS whose prev close
units falling under an online folio through the AMC or an ISC or market price is Rs. 2800. In such a case the SIP Debit Amount
any other entity or platform other than IIFL Online MF Account allowed for him Rs. 2800+ Rs. 280 (10%) = Rs. 3080
and / or the website. For executing transactions through anAMC For SIP Payment through Ledger:
or an ISC or any entity other than IIFL Online MF Account and/or
the website, the client requires to get the online folio converted The client can specify SIP instruction based on SIP Debit
Amount or SIP Quantity. In case, Client gives SIP instruction

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 based on SIP Quantity, the SIP Instruction shall be executed h) Subsequently, SIP instructions will be executed in an
only when the available clear balance in the ledger account is automated mode and client will not receive e-mail or sms
equal to (previous closing price of the selected security plus 5% confirmation prior to execution of order on SIP execution day.
of the SIP amount as free balance in his LedgerAccount.
i) If, on a SIP Execution Date, scrips selected by the customer
For Example: On SIP date 5th Apr,2012, the previous close reach upper or lower circuit, the SIP order will be kept live till
price of Infosys is Rs.1000, then IIFL will debit (Rs. 1000 + Rs.50 market ends. In this case the order may or may not get
(5% SIP amount as free balance) = Rs.1050 in his IIFL successfully executed depending upon the market scenario.
Securities limited Linked Ledger.
5. DEFAULT:
• In case Client gives SIP instruction based on SIP Debit Amount,
In case the client defaults in making payment towards the SIP
the SIP instruction shall be executed only when available clear
obligations, the SIP Instruction shall be terminated at the sole
balance in his ledger account is equal to previous closing of a
discretion of IIFL. Apart from such termination, client shall also
particular security in NSE/BSE plus 10% of the SIP amount as
comply with the terms & conditions, if any prescribed by
free balance.
AMC/IIFL from time to time in this regard.
For Example: On SIP date 5th Apr 2012, the previous close
6. TRADE CONFIRMATION:
price of Infosys is Rs.1000, then IIFL will debit (Rs. 1000 +
Rs.100 (10% SIP amount as free balance) = Rs.1100 in his IIFL a) IIFL shall send a trade confirmation/contract note to the client on its
Securities limited Linked Ledger registered mobile no./ E-mail id for the SIP Order executed on
behalf of the client at the client’s registered e-mail id. Such
Mode of payment for SIP Debit Amount cannot be modified confirmation/contract note shall be binding upon the client.
during the SIP period.
b) Client shall be required to access and review the contract
4. EXECUTION OF SIP ORDER: note/confirmation of the trades executed on its behalf. In case of
a) IIFL shall execute SIP Order subject to availability of clear funds any objection, client shall inform IIFL of the same within 48 hrs from
in client’s trading account/Bank account held with IIFL on the the date of receipt of the contract notes/ confirmations.
SIP Order Date. 7. FEES/ BROKERAGE:
b) Client shall be required to ensure that sufficient funds are IIFL shall charge brokerage / transaction charges towards each
available in client’s *ledger/Bank account (*applicable on the SIP order executed in the client’s account as per the SIP
basis of mode selected) on the SIP order date and SIP instruction. Such brokerage/transaction charges shall form part
execution date. In case of insufficient funds your SIP order will of the SIP Amount and shall be recovered by IIFL by debiting
not be executed which shall stand cancelled. There won’t be client’s trading account.
any partial execution of SIP orders.
Brokerage/fees will be charged as per policy of IIFL and same
c) Where Client has given Ledger DebitAuthorisation: will be intimated to client on time to time basis.
In case of insufficient funds in the client’s trading account on the 8. TERMS OF MAIN AGREEMENT:
SIP Execution date IIFL shall at its sole discretion may not to
execute the SIP order which shall stand cancelled. All the terms and conditions of the main agreement executed
between the client and IIFL shall be also applicable to the SIP
d) In case the SIP order date falls on a trading holiday/non-working instruction and the client shall abide by the same at all times.
day, the SIP order shall be executed on the immediate succeeding
trading day at market rate as on that date. 9. LIABILITYAND INDEMNITY:
e) In case of non-execution of SIP order on the SIP order date due • The Client shall be solely liable and responsible for making all
to any reasons beyond the control of IIFL, IIFL may at its sole the payments towards the SIP Order executed in the client’s
discretion execute the said order on immediately succeeding account. In case of execution of SIP order in absence of funds /
trading day at market rate as on that date. The Client shall not insufficient funds in client’s account, client shall immediately
hold IIFL or any of its officers / directors liable or responsible for make payment towards the trade obligation.
execution / non-execution of SIP instruction for any reasons • If the client defaults in making the payment due to IIFL /
beyond the control of IIFL. All other Stock Exchange conditions respective Exchanges towards its trade obligations, IIFL may at
viz. Shortages, Auction etc. as applicable to trading in securities its sole discretion recover such amount due from the client by
shall remain applicable. liquidating the client’s position without prejudice to IIFL’s right to
f) If the trading account is deactivated for any regulatory or other refer the matter to arbitration. Any and all losses and financial
reason, then the SIP instruction will not be executed. charges on account of such liquidation shall be charged to and
borne by client.
g) Client will receive e-mail and SMS to confirm the application
details before the first SIP execution date on registered contact • Client shall indemnify and keep indemnified IIFL and its
details with IIFL. directors / officers for all trades executed on behalf of the client
as per the SIP instructions.

26
• Client will be liable to pay charges on any debit amount which 12. AMENDEMENTS:
arises due to SHORTFALL in SIP at such rates as may be
IIFL may amend, add, vary, cancel any of the terms and conditions
decided by IIFL from time to time. either in whole or in part at any time with or without giving any prior
10. FORCE MAJEURE: notice to the Client. Any such amendment shall be binding on the
client from the date of such amendment.
IIFL shall not be responsible for any losses, cost or damages,
actual or notional, resulting directly or indirectly from any action / 13. GOVERNING LAW AND JURISDICTION:
omission / suspension of trading, decision or ruling of any
The SIP facility provided by IIFL to client shall be governed by
exchange or Regulatory, governmental or other body or of any
Laws of India and subject to jurisdiction of courts of Mumbai.
other person which is beyond IIFL’s control or any war, strike,
lockout, national disaster, act of terrorism, delay in postal service or 14. DISCLAIMER
any other delay or inaccuracy in the transmission of order or other
information or any break-down / failure or malfunction beyond the • The client undertakes to have read and understood the Risk
control of IIFL or any third party in-charge of the same. The above factors associated with the investment in commodities.
force majeure event so not exempt the client to fulfill the obligations • Client shall be solely responsible for any losses in the client’s
in his account with IIFL. account occurring due to such SIP instruction.
11. TERMINATION: • Investments in securities and mutual fund are subject to market
a) Upon revocation of the Authorisation given for Systematic risks and there can be no assurance or guarantee that the
Investment, all SIP Instructions given by the client shall stand objectives will be achieved. Clients are requested to read all the
cancelled. In case of SIP Due date of any SIP Instruction falling scheme related documents carefully before investing Each
during the notice period of revocation of the authorization, IIFL may client is advised to consult his/her own financial
at its sole discretion debit the SIP Amount on such SIP Due date advisor/professional tax advisors before availing of facility.
and execute the SIP order on the SIP order date.
b) Client shall fulfill all the obligations arising in the client’s account
before the effective date of such revocation of the authorisation.

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 Name of stock broker/ trading member/
clearing member/ Depository Participant IIFL Securities Limited

SEBI Registration No. and date: BSE, BSE (F&O) NSE, NSE (F&O), MCX & NCDEX
SEBI Registration No. INZ000164132 Dated 22 Feb. 2018
Depository: CDSL & NSDL
SEBI Registration No: IN - DP-185-2016

Name & SEBI Registration No. of Clearing Member ICICI Bank Limited
for F&O and Currency Derivative Segment ICICI Bank Towers, Race Course Road,
Vadodra, Gujarat - 390 007
NSE CURRENCY : INE231308631
MCX-SX: INE261313733
NSE (F&O): INF231134745

Registered office address & IIFL House, Sun Infotech Park, Road No.16V,
Correspondence address Plot No. B-23, MIDC, Thane Industrial Area,
Wagle Estate, Thane - 400 604
Tel.: 022 - 3929 4000/ 4103 5000
Fax: 022 - 4103 5290
Email: [email protected]
Website: www.indiainfoline.com

Compliance officer Name: For Equities, Currancy and Depository - Mr. Prasad Umarale
For Commodities - Mr. Vaibhav Satalkar
Phone No.: 022 - 4007 1000
Email id: [email protected]
CEO Name: Mr. Arindam Chanda

Phone No.: 022 - 4007 1000

[email protected]
Email id:

For any grievance/dispute please contact IIFL Securities Limited at the above address or Email ID- [email protected] and
Phone no. +91 22 4007 1000. In case not satisfied with the response, please contact the concerned exchange(s) at NSE: [email protected] and Phone
no. +91 22 2659 8190; BSE:[email protected] and Phone no. +91 22 2272 8097; MCX-SX: [email protected] and
Phone no. +91 22 6731 8933/ 9000; USE: [email protected] and Phone no. +91 22 4244 4904/ 4244 4932.

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