Print KYC Form

4/18/2015 Print KYC Form

http://onlinekyc.trustline.in/UserFormStatus/ViewKYCFormFrontEquity?UserId=2584&FormtypeId=1&FormtypeNameId=2 1/75

Client Code ________________________ BO ID ________________________

Client Name PRADEEP SHARMA

Branch Code ________________________ Branch Name ________________________



INSTRUCTIONS/CHECK LIST FOR FILLING KYC FORM

A. IMPORTANT POINTS:

1. Self attested copy of PAN card is mandatory for all clients, including Promoters/Partners /Karta/Trusteesand whole time directors and persons authorized to deal in securities on behalf of company/firm/others.

2. Copies of all the documents submitted by the applicant should be self-attested and accompanied byoriginals for verification. In case the original of any document is not produced for verification, then thecopies should be properlyattested by entities authorized for attesting the documents, as per the belowmentioned list.

3. If any proof of identity or address is in a foreign language, then translation into English is required.4. Name & address of the applicant mentioned on the KYC form, should match with the documentary proof

submitted.5. If correspondence & permanent address are different, then proofs for both have to be submitted.6. Sole proprietor must make the application in his individual name & capacity.7. For non-residents and foreign nationals, (allowed to trade subject to RBI and FEMA guidelines), copy of

passport/PIO Card/OCI Card and overseas address proof is mandatory.8. For foreign entities, CIN is optional; and in the absence of DIN no. for the directors, their passport copy

should be given.9. In case of Merchant Navy NRI's, Mariner's declaration or certified copy of CDC (Continuous Discharge

Certificate) is to be submitted.10. For opening an account with Depository participant or Mutual Fund, for a minor, photocopy of the School

Leaving Certificate/Mark sheet issued by Higher Secondary Board/Passport of Minor/Birth Certificatemust be provided.

11. Politically Exposed Persons (PEP) are defined as individuals who are or have been entrusted withprominent public functions in a foreign country, e.g., Heads of States or of Governments, seniorpoliticians, senior Government/judicial/ military officers, senior executives of state owned corporations,important political party officials, etc.

B. Proof of Identity (POI): List of documents admissible as Proof of Identity:

1. Unique Identification Number (UID) (Aadhaar)/ Passport/ Voter ID card/ Driving license.2. PAN card with photograph.3. Identity card/ document with applicant's Photo, issued by any of the following: Central/State Government

and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, ScheduledCommercial Banks, Public FinancialInstitutions, Colleges affiliated to Universities, Professional Bodies suchas ICAI, ICWAI, ICSI, Bar Council etc., to their Members; and Credit cards/Debit cards issued by Banks.

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

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

1. Passport/ Voters Identity Card/ Ration Card/ Registered Lease or Sale Agreement of Residence/ DrivingLicense/ Flat Maintenance bill/ Insurance Copy.

2. Utility bills like Telephone Bill (only land line), Electricity bill or Gas bill - Not more than 3 months old.3. Bank Account Statement/Passbook -- Not more than 3 months old.4. Self-declaration by High Court and Supreme Court judges, giving the new address in respect of their own

accounts.5. Proof of address issued by any of the following: Bank Managers of Scheduled Commercial

Banks/Scheduled Co-Operative Bank/Multinational Foreign Banks/ Gazetted Officer/Notary.public/Elected representatives to the Legislative Assembly/Parliament/Documents issued by any Govt. orStatutory Authority.

6. Identity card/ document with address, issued by any of the following: Central/State Government and itsDepartments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled CommercialBanks, Public Financial Institutions,Colleges affiliated to Universities and Professional Bodies such asICAI, ICWAI, ICSI, Bar Council etc., to their Members.

7. For FII/sub account, Power of Attorney given by FII/sub-account to the Custodians (which are dulynotarized and/or apostiled or consularised) that gives the registered address should be taken.

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



D. Exemptions/clarifications to PAN

(Sufficient documentary evidence in support of such claims to be collected.)

1. In case of transactions undertaken on behalf of Central Government and/or State Government and byofficials appointed by Courts e.g. Official liquidator, Court receiver etc.

2. Investors residing in the state of Sikkim.3. UN entities/multilateral agencies exempt from Pay-ing taxes/filing tax returns in India.4. SIP of Mutual Funds upto Rs 50, 000/- p.a.5. In case of institutional clients, namely, FIIs, MFs, VCFs, FVCIs, Scheduled Commercial Banks, Multilateral

and Bilateral Development Financial Institutions, State Industrial Development Corporations, InsuranceCompanies registered with IRDA and Public Financial Institution as defined under section 4A of theCompanies Act, 1956, Custodians shall verify the PAN card details with the original PAN card and provideduly certified copies of such verified PAN details to the intermediary.

E. List of people authorized to attest the documents:

1. Notary Public, Gazetted Officer, Manager of a Scheduled Commercial/ Co-operative Bank or MultinationalForeign Banks (Name, Designation & Seal should be affixed on the copy).

2. In case of NRIs, authorized officials of overseas branches of Scheduled Commercial Banks registered inIndia, Notary Public, Court Magistrate, Judge, Indian Embassy /Consulate General in the country wherethe client resides are permitted to attest the documents



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

Types of Entity Documentary requirements

Corporate

Copy of the balance sheets for the last 2 financial years (to be submitted every year).Copy of latest share holding pattern including list of all those holding control, eitherdirectly or indirectly, in the company in terms of SEBI takeover Regulations, dulycertified by the company secretary/Whole time director/MD (to be submitted everyyear).Photograph, POI, POA, PAN and DIN numbers of whole time directors/two directors incharge of day to day operations.Photograph, POI, POA, PAN of individual promoters holding control - either directly orindirectly.Copies of the Memorandum and Articles of Association and certificate of incorporation.Copy of the Board Resolution for investment in securities market.Authorised signatories list with specimen signatures.

Partnership Firm

Copy of the balance sheets for the last 2 financialyears (to be submitted every year)Copy of partnership deed.Photograph, POI, POA, PAN of Partners.

Certificate of registration (forregistered partnership firmsonly).Authorised signatories list withspecimen signatures.

Trust

Copy of the balance sheets for the last 2 financialyears (to be submitted every year)Copy of Trust deed.Photograph, POI, POA, PAN of Trustees.

Certificate of registration (forregistered trust only).List of trustees certified bymanaging trustees/CA.

HUF

PAN of HUF.Bank pass-book/bank statement in the name ofHUF.

Deed of declaration of HUF/ Listof coparceners.Photograph, POI, POA, PAN ofKarta.

Unincorporatedassociation or abody of individuals

Proof of Existence/Constitution document.Resolution of the managing body & Power of Attorney granted to transact business onits behalf.Authorized signatories list with specimen signatures.

Banks/InstitutionalInvestors

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

Foreign institutionalInvestors (FII) Army/Government Bodies

Copy of SEBI registration certificate.Authorized signatories list with specimen signaturesSelf-certification on letterhead.Authorized signatories list with specimen signatures

Registered Society

Copy of Registration Certificate under SocietiesRegistration Act.Committee resolution for persons authorised to actas authorised signatories with specimen signatures.

List of Managing Committeemembers.True copy of Society Rules andBye Laws certified by the



INSTRUCTIONS/ CHECK LIST (for filling additional information related to trading

1. Additional documents in case of trading in derivatives segments - illustrative list:Copy of ITR Acknowledgement Copy of Annual Accounts

In case of salary income - Salary Slip, Copy of Form 16 Net worth certificate

Copy of demat account holding statement. Bank account statement for last 6 months

Any other relevant documents substantiating ownership ofassets.

Self declaration with relevant supportingdocuments.

*In respect of other clients, documents as per risk management policy of the stock broker need to be provided by theclient from time to time.

2. Copy of cancelled cheque leaf/ pass book/bankstatement specifying name of the constituent,MICR Code or/and IFSC Code of the bank should besubmitted.

3. Demat master or recent holding statement issuedby DP bearing name of the client.

4. For individuals:a. Stock broker has an option of doing 'in-person'

verification through web camera at the branchoffice of the stock broker/sub-broker's office.

b. b. In case of non-resident clients, employees atthe stock broker's local office, overseas can doin-person'

verification. Further, considering the infeasibility ofcarrying out 'In-person' verification of the non-residentclients by the stock broker's staff, attestation of KYCdocuments by Notary Public, Court, Magistrate, Judge,Local banker Indian Embassy / Consulate General in thecountry where the client resides may be permitted.

5. For non-individuals:a. Form need to be initialized by all the authorized

signatories.b. Copy of Board Resolution or declaration (on the

letterhead) naming the persons authorized to deal insecurities on behalf of company/firm/others and theirspecimen signatures.



__________________

1 __________________

2 __________________

__________________

3 __________________

To,

Trustline Securities Ltd.Corp. Office: Trustline Tower, B-3, Sector-3, Noida-201301Tel.: +91-120-4663333, 4663300 Fax: +91-120-4663388

IN PERSON VERIFICATION

Name of Employee _______________

Employee Code ____________ Signautre of Employee

Branch Office Code _______________ Date _______________ Place ______________

Name of Client PRADEEP SHARMA Signature of Client

Mode of Trading (Please tick any one & Sign below)

1. Internet Base Trading (Online) (Rs 200/-+DP AMC as applicable)Signature of Client

2. Non Internet Base Trading(Offline) (NIL+DP AMC as applicable)

INTRODUCER'S DETAIL

Introduction : Introduced by another constituent/director or employee or trading member/anyother person (please specify)

Name of Introducer : SARVESH PRIYA SRIVASTAVA

Address of Introducer* : 91,2ND FLOOR AMBEDKAR ROAD

City : GHAZIABAD Pin Code : 201001

Contact No. of the Introducer : 9811953358

Signature of Introducer :

Identity Proof Submitted* : ______________ Identity No. ______________ Validity: ____________

I hereby declare that all the details furnished above are true and correct to thebest of my knowledge and belief and I undertake to inform you of any changes therein immediately. In caseany of the above information is found to be false or untrueor misleading or misrepresenting I am aware that I may be held liable for it

*Note: Please attach self attested copy of Identity Proof and Address Proof of the Introducer.

(Relationship Manager/Remisier's Details)

Name & Designation ofRM/Remisier

: ________________________ Client Name : PRADEEP SHARMA

who interviewed the client : ________________________

Employee Code/RemisierCode

: KA01331 Client'sSignature

:

Signature of RM/Remisier : ________________________ Dated : ________________________



Name of Stock Broker/Trading Member/Clearing Member:

Trustline Securities Ltd.

EXCHANGE NAME SEGMENT SEBI REGISTRATION NO. DATE

NSE Cash INB230753634 26/07/1995NSE F&O INF230753634 23/05/2000NSE Currency INE230753634 25/08/2008

BSE Cash INB010753631 30/09/2004BSE F&O INF010753631 08/05/2007

BSE Currency INE010753631 29/11/2013MCX-SX Currency Derivatives INE260753634 13/07/2009

USE Currency Derivatives INE270753634 01/04/2010

Registered Office Address

C-633, New Friends Colony, New Delhi-110025 | Phone: +91-11-26832111Email : [email protected] | Website : www.trustline.in

Corporate Office

Trustline Tower, B-3, Sector-3, Noida-201301 Phone: +91-120-4663333, 4663300 | Fax +91-120-4663388

Compliance Officer Details :

Name : Surabhi Sangal

Phone No. : +91-120-4663333

E-mail Id : [email protected]

CEO Details

Name : Dr. Mukesh Kansal

Phone No. : +91-120-4663333

E-mail Id : [email protected]

For any grievance/dispute please contact Trustline Securities Ltd. at the above address or email id:[email protected] and Phone No. +91-120-4663333. In case not satisfied with the response, please contact theconcerned exchange(s) at :

Exchange Name E-mail ID Phone No.National Stock Exchange of India Ltd. [email protected] 1800-2200-58Bombay Stock Exchange Ltd. [email protected] 022-22728097MCX Stock Exchange Ltd. [email protected] 022-67319000 Ext. 8883United Stock Exchange Ltd. [email protected] 022-42444999CDSL [email protected] 022-22723333

You can also lodge your grievances with SEBI at http:// scores.gov.in

For any queries, feedback or assistance, please contact SEBI office or toll free Helpline at 1800-22-7575 /1800-266-7575



SOLE/FIRST HOLDER

4 __________________

FOR OFFICE USE ONLY

1

KNOW YOUR CLIENT (KYC)

Application Form (For Individuals Only) Applicaiton No.

TRUSTLINE SECURITIES LTD.SEBI Regn. : NSE Cash-INB/F/E230753634, BSE Cash-INB/F010753631, MCX-SX-INE260753634, USE-INE270753634, IN-DP-CDSL-154-2001

Regd. Office : C-633, New Friends Colony, New Delhi-110025 Email : [email protected] Website : www.trustline.in

Corporate Office : Trustline Tower, B-3, Sector-3, Noida-201301 Phone: +91-120-4663333, 4663300 Fax +91-120-4663388

Please fill in ENGLISH and in BLOCK LETTERS with black ink

A. IDENTITY DETAILS (please see guidelines overleaf)

1. Name of Applicant (As appearing in supporting identification document).

Name PRADEEP SHARMA

2. Father's/Spouse Name. NETRAPAL SHARMA

3. A.Gender MALE B. Marital Status MARRIED C.Date of Birth 08-08-1981

4. A. Nationality INDIAN

B. Status (Please tick)

5. A. PAN FMLPS6981L Please enclose a duly attested copy of your PAN Card

B. Aadhaar Number,if any

6. Specify the proof of identity submitted

(Please see guideline 'D' overleaf)

B. Address Details (please see guidelines overleaf)1.Residence Address :

192,DHOOM MANIKPUR,DHOOM MANIKPURR,TEHSIL-DADRI City/Town/Village GAUTAM BUDH NAGAR Pin Code 203207

State UTTAR PRADESH Country INDIA2.Contact Details Tel. (Off.) Tel.(Res.)

Mobile 9350781187 Fax E-mail Id : (in BLOCK LETTER) [email protected]

3.Proof of address to be provided by Applicant.

Passport Ratio Card Registered Lease/Sale Agreement of Residence Driving License Voter Identity Card Latest Bank A/c Statement/Passbook

Latest Telephone Bill(only Landline) Latest Electricity Bill Latest Gas bill Others______________

* Not more than 3 Months old.Validity/Expiry date of proof of address submitted

4.Permanent Address of Resident Applicant if different from above B 1 OR Overseas Address (Mandatory) forNon-Resident Application

192,DHOOM MANIKPUR,DHOOM MANIKPURR,TEHSIL-DADRI City/Town/Village GAUTAM BUDH NAGAR Pin Code 203207

State UTTAR PRADESH Country INDIA5.Proof of address to be provided by Applicant.




DECLARATION SIGNATURE OF APPLICANT

I hereby dec lare that the details furnished above are true and correc t to the bes t of my/our knowledge and beliefand I undertake to inform you

of any changes therein, immediately. In case any of the above information is foundto be false or untrue or mis leading or mis representing, I

am/we are aware that I /we may be held liable for it.

Place GHAZIABAD Date 15-04-2015

A MC /Intermediary name or code

TRUSTLINE SECURITIES LTD

(O riginal V erified) Self C ertified Document copies received

(A ttes ted) T rue copies of document received Main Intermediary

DOCUMENTS VERIFICATIONStaff Name

Des ignation

Name of the O rganization

Signature

Date

IN-PERSON VERIFICATIONStaff Name

Des ignation


Signature

Date



3











SOLE/SECOND HOLDER

4 __________________

FOR OFFICE USE ONLY

4









Name

2. Father's/Spouse Name.

3. A.Gender B. Marital Status C.Date of Birth

4. A. Nationality


5. A. PAN Please enclose a duly attested copy of your PAN Card





City/Town/Village Pin Code State Country2.Contact Details

Tel. (Off.) Tel.(Res.) Mobile Fax

E-mail Id : (in BLOCK LETTER)3.Proof of address to be provided by Applicant.





City/Town/Village Pin Code State Country

5.Proof of address to be provided by Applicant.














Des ignation


Signature

Date


Des ignation


Signature

Date



6











SOLE/THIRD HOLDER

4 __________________

FOR OFFICE USE ONLY

7









Name

2. Father's/Spouse Name.

3. A.Gender B. Marital Status C.Date of Birth

4. A. Nationality


5. A. PAN Please enclose a duly attested copy of your PAN Card





City/Town/Village Pin Code State Country2.Contact Details Tel. (Off.) Tel.(Res.) Mobile Fax

E-mail Id : (in BLOCK LETTER)3.Proof of address to be provided by Applicant.





City/Town/Village Pin Code State Country5.Proof of address to be provided by Applicant.














Des ignation


Signature

Date


Des ignation


Signature

Date



9











__________________

__________________

__________________

__________________

__________________

10

DECLARATION BY HUF

Please fill in for a HUF

As our HUF firm wishes to open an account with you DP in the said name __________ we beg to say that the firstsignatory to this letter, ie __________ is the Karta of the Joint Family and other signatories are the audit co-parceners of the said family.

We further confirm that the business of the said joint family is carried on mainly by the said Karta as also by theother signatories hereto in the interest and for the benefit of the entire body to co-parceners of the joint family. Weall undertake that claims due to the DP from the said family shall be recoverable personally from all or any of us andalso for the entire family properties of which the first signatories is the Karta including the share of minor co-parceners.

In view of the fact that ours is not a firm governed by the Indian Partnership Act of 1952, we have not got our saidfirm registered under the said Act.

We hereby under take to inform the DP of the death or birth of a co-parcener of any change occurring at any time inthe membership of our joint family during the currency of the account.

S.No.

Name Date of Birth Sex Relation Signature

1.

2.

3.

4.

5.

SIGN of Karta



11

FOR INDIVIDUAL & NON-INDIVIDUALADDITIONAL INFORMATION RELATED TO TRADING ACCOUNT

A. BANK ACCOUNT(S) DETAILS

Bank Name Branch Address Bank Account No. Account Type MICR Number IFSC CodeHDFC BANK PLOT NO-114,GT ROAD 09271530016575 SAVING 110240126 HDFC0000927

B. DEPOSITORY ACCOUNT(S) DETAILS

Depository Participant Name Depository Name (NSDL/CDSL) Beneficiary Name DP ID Beneficiary ID (BO ID)

NSDL

CDSL

C. OTHER DETAILS

Gross Annual Income Details(please specify)

Income Range per annum Below Rs 1 Lac Rs 1-5 Lac Rs 5-10 Lac Rs 10-25 Lac Rs 25 Lac -1 Crore

More than Rs 1CroreNet- worth* Amount (Rs) ________________________ As on (date)________________________ (Net worth should not be older than 1 year)

Occupation (please tick any oneand give brief details):

Private Sector Public Sector Government Service Business Professional Agriculturist Retired Housewife Student Others

Please tick, if applicable Politically Exposed Person (PEP) Related to a Politically Exposed Person (PEP)Any other information

* For Individual Client 'Net-worth' is Optional, In case of Non-Invididual client 'Net-worth' will be mandatory.C. TRADING PREFERENCES* Please sign in the relevant boxes where you wish to trade. The segment not chosen should be struck off by the client.

Exchange Segments

NSE Cash

Currency Derivative F & O

BSE Cash

Currency Derivative F & O

MCX-SX Currency Derivative

USE Currency Derivative

# If, in future, the client wants to trade on any new segment/new exchange, separate authorization/letter should betaken from the client by the stock broker. **Currency derivative segment include interest rate future.D. PAST ACTIONSDetails of any action/proceedings initiated/pending/ taken by SEBI/ Stock Exchange/any other authority against theapplicant/constituent or its Partners/promoters/whole time directors/authorized persons in charge of dealing insecurities during the last 3 years, give details (attach annexure if required)_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________



____________________

12

E. DEALINGS THROUGH SUB-BROKERS AND OTHER STOCK BROKERSIf client is dealing through the sub-broker, provide the following details:

Sub-broker's Name _________________SEBI Registration Number _______________

Registered office address______________

______________ PIN Code _______________Website ________________ Phone ________________ Fax ______________Whether dealing with any other stock broker/sub-broker (if case dealing with multiple stockbrokers/sub-brokers, provide details of all)

______________

Name of stock broker ______________Name of Sub-Broker (if any) _______________

Client Code _________________ Exchange _________________Details of disputes/dues pending from/to such stock broker/sub- broker _________________

F. ADDITIONAL DETAILS

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

Physical Contract Note ElectronicContract Note

I/We wish to avail facility provided by the exchange SMS Alert E-mail Alert BothIn case of ECN / E-mail Alert Pls. Specify your Email id [email protected] case of SMS Alert Pls. Specify your Mobile No ________________________Whether you wish to avail of the facility of internet trading/ wirelesstechnology (please specify)

Yes No

Number of years of Investment/Trading Experience 0

Any other information ________________________

G. INTRODUCER DETAILS (optional)

Name of the Introducer SARVESH PRIYA SRIVASTAVAStatus of the Introducer RELATIONSHIP MANAGERAddress of the Introducer 91,2ND FLOOR AMBEDKAR ROAD

Phone No. of Introducer 9811953358 Signature of the Introducer



____________________

___________________

________________________________________

13

H. NOMINATION DETAILS (for individuals only)

I/WE WISH TO NOMINATE I/WE DO NOT WISH TO

NOMINATEName of the Nominee GEETA DEVIRelationship with theNominee

WIFE PAN of Nominee

Date of Birth of Nominee 08-09-1982Phone No. ofNominee

9350781187

Address of the Nominee192,DHOOM MANIKPUR,TEHSILDADRI

Signature of Nominee

If Nominee is a minor, details of guardian:Name of Guardian:Address of the Guardian:

________________________Signature of the Guardian:

Phone No. of Guardian:

Photograph ofNominee

Photograph ofGuardian (in

case of minor)

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

Name BAL BAHADUR SINGH

Signature

Address188,DHOOM,MANIKPUR,TEHSIL-DADRI

Name DILIP KUMAR

Signature

Address C-78, SUDESH PLAZA,RDC RAJNAGAR,GHAZIABAD



5 ____________________

____________________

____________________

14Signature of the Authorised Signatory Date: ________________________ Seal/Stamp of the stock broker

DISCLOSUREDear Client, This is to inform you that we do client based trading and pro-account trading in National Stock Exchange ofIndia limited (NSE), MCX Stock Exchange Limited (MCX-SX) and United Stock Exchange (USE).For, Trustline Securities Ltd.Authorized Signatory

DECLARATION

1. I/We hereby declare that the details furnished above are true and correct to the best of my/our knowledge andbelief and I/we undertake to inform you of any changes therein, immediately. In case any of the above informationis found to be false or untrue or misleading or misrepresenting, I am/we are aware that I/we may be held liable forit.

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

3. I/We further confirm having read and understood the contents of the 'Rights and Obligations' document(s) and 'RiskDisclosure Document'. I/We do hereby agree to be bound by such provisions as outlined in these documents. I/Wehave also been informed that the standard set of documents has been displayed for Information on stock broker'sdesignated website, if any.

4. I/We declare that Trustline Securities Ltd. , the brokers, has put me/us on notice that it is engaged in not onlyclient based trading but also in pro-account trading.

Name(s) of the Authorised Signatory Signature of the Authorised Signatory

1.

2.

3.

Date: 15-04-2015

FOR OFFICE USE ONLYUCC Code allotted to the Client: ________________________I / We undertake that we have made the client aware of 'Policy and Procedures', tariff sheet and all the non-mandatorydocuments. I/We have also made the client aware of 'Rights and Obligations' document (s), RDD and Guidance Note.I/We have given/sent him a copy of all the KYC documents. I/We undertake that any change in the 'Policy andProcedures', tariff sheet and all the non-mandatory documents would be duly intimated to the clients. I/We alsoundertake that any change in the 'Rights and Obligations' and RDD would be made available on my/our website, if any,for the information of the clients



RIGHTS AND OBLIGATIONS OF STOCK BROKERS, SUB-BROKERS AND CLIENTS ANNEXURE-4

15

As prescribed by SEBI and Stock Exchanges

1. The client shall invest/trade in those securities/contracts/other instruments admitted to dealings onthe Exchanges as definedn the Rules, Byelaws andRegulations of Exchanges/Securities and ExchangeBoard of India (SEBI) and circulars/notices issuedthere under from time to time.

2. The stock broker, sub-broker and the client shall bebound by all the Rules, Byelaws and Regulations ofthe Exchange and circulars/notices issued there underand Rules and Regulations of SEBI and relevantnotifications of Government authorities as may be inforce from time to time.

3. The client shall satisfy itself of the capacity of thestock broker to deal in securities and/or deal inderivatives contracts and wishes to execute its ordersthrough the stock broker and the client shall from timeto time continue to satisfy itself of such capability ofthe stock broker before executing orders through thestock broker.

4. The stock broker shall continuously satisfy itself aboutthe genuineness and financial soundness of the clientand investment objectives relevant to the services tobe provided.

5. The stock broker shall take steps to make the clientaware of the precise nature of the Stock broker'sliability for business to be conducted, including anylimitations, the liability and the capacity in which thestock broker acts.

6. The sub-broker shall provide necessary assistance andcooperate with the stock broker in all its dealings withthe client(s).

CLIENT INFORMATION

7. The client shall furnish all such details in full as arerequired by the stock broker in "Account OpeningForm" with supporting details, made mandatory bystock exchanges/SEBI from time to time.

8. The client shall familiarize himself with all themandatory provisions in the Account Openingdocuments. Any additional clauses or documentsspecified by the stock broker shall be non-mandatory,as per terms & conditions accepted by the client.

9. The clie shall immediately notify the stock broker inwriting if there is any change in the information in the'account opening

form' as provided at the time of account opening andthereafter; including the information on winding uppetition/insolvency petition or any litigation whichmay have material bearing on his capacity. The clientshall provide/update the financial information to thestock broker on a periodic basis.

10. The stock broker and sub-broker shall maintain all thedetails of the client as mentioned in the accountopening form or any other information pertaining tothe client, confidentially and that they shall notdisclose the same to any person/authority except asrequired under any law/regulatory requirements.Provided however that the stock broker may sodisclose information about his client to any person orauthority with the express permission of the client.

MARGINS

11. The client shall pay applicable initial margins,withholding margins, special margins or such othermargins as are considered necessary by the stockbroker or the Exchange or as may be directed by SEBIfrom time to time as applicable to the segment(s) inwhich the client trades. The stock broker is permittedin its sole and absolute discretion to collect additionalmargins (even though not required by the Exchange,Clearing House/Clearing Corporation or SEBI) and theclient shall be obliged to pay such margins within thestipulated time.

12. The client understands that payment of margins bythe client does not necessarily imply completesatisfaction of all dues. In spite of consistently havingpaid margins, the client may, on the settlement of itstrade, be obliged to pay (or entitled to receive) suchfurther sums as the contract may dictate/require.

TRANSACTIONS AND SETTLEMENTS

13. The client shall give any order for buy or sell of asecurity/ derivatives contract in writing or in such formor manner, as may be mutually agreed between theclient and the stock broker. The stock broker shallensure to place orders and execute the trades of theclient, only in the Unique Client Code assigned to thatclient.

14. The stock broker shall inform the client and keep himapprised about trading/settlement cycles,delivery/payment schedules, any changes therein fromtime to time, and it shall be the



16

responsibility in turn of the client to comply withsuch schedules/procedures of the relevant stockexchange where the trade is executed.

15. The stock broker shall ensure that themoney/securities deposited by the client shall bekept in a separate account, distinct from his/its ownaccount or account of any other client and shall notbe used by the stock broker for himself/itself or forany other client or for any purpose other than thepurposes mentioned in Rules, Regulations, circulars,notices, guidelines of SEBI and/or Rules,Regulations, Bye-laws, circulars and notices ofExchange.

16. Where the Exchange(s) cancels trade(s) suo motoall such trades including the trade/s done on behalfof the client shall ipso facto stand cancelled, stockbroker shall be entitled to cancel the respectivecontract(s) with client(s).

17. The transactions executed on the Exchange aresubject to Rules, Byelaws and Regulations andcirculars/notices issued thereunder of the Exchangeswhere the trade is executed and all parties to suchtrade shall have submitted to the jurisdiction ofsuch court as may be specified by the Byelaws andRegulations of the Exchanges where the trade isexecuted for the purpose of giving effect to theprovisions of the Rules, Byelaws and Regulations ofthe Exchanges and the circulars/ notices issuedthereunder.

BROKERAGE

18. The Client shall pay to the stock broker brokerageand statutory levies as are prevailing from time totime and as they apply to the Client's account,transactions and to the services that stock brokerrenders to the Client. The stock broker shall notcharge brokerage more than the maximum brokeragepermissible as per the rules, regulations and bye-laws of the relevant stock exchanges and/or rulesand regulations of SEBI.

LIQUIDATION AND CLOSE OUT OF POSITION

19. Without prejudice to the stock broker's other rights(including the right to refer a matter to arbitration),the client understands that the stock broker shall beentitled to liquidate/close out all or any of theclient's positions for non-payment of margins orother amounts, outstanding debts, etc. and adjustthe proceeds of such liquidation/close out, if any,against the client's liabilities/ obligations. Any andall losses and financial charges on account of suchliquidation/closing-out shall be charged to

and borne by the client.

20. In the event of death or insolvency of the client orhis/its otherwise becoming incapable of receivingand paying for or delivering or transferring securitieswhich the client has ordered to be bought or sold,stock broker may close out the transaction of theclient and claim losses, if any, against the estate ofthe client. The client or his nominees, successors,heirs and assignee shall be entitled to any surpluswhich may result there from. The client shall notethat transfer of funds/ securities in favor of aNominee shall be valid discharge by the stock brokeragainst the legal heir.

21. The stock broker shall bring to the notice of therelevant Exchange the information about default inpayment/delivery and related aspects by a client. Incase where defaulting client is a corporateentity/partnership/proprietary firm or any otherartificial legal entity, then the name(s) ofDirector(s)/ Promoter(s)/Partner(s)/Proprietor as thecase may be, shall also be communicated by thestock broker to the relevant Exchange(s).

DISPUTE RESOLUTION

22. The stock broker shall provide the client with therelevant contact details of the concerned Exchangesand SEBI.

23. The stock broker shall co-operate in redressinggrievances of the client in respect of all transactionsrouted through it and in removing objections for baddelivery of shares, rectification of bad delivery, etc.

24. The client and the stock broker shall refer any claimsand/or disputes with respect to deposits, marginmoney, etc., to arbitration as per the Rules, Byelawsand Regulations of the Exchanges where the trade isexecuted and circulars/notices issued thereunder asmay be in force from time to time.

25. The stock broker shall ensure faster settlement ofany arbitration proceedings arising out of thetransactions entered into between him vis--vis theclient and he shall be liable to implement thearbitration awards made in such proceedings.

26. The client/stock-broker understands that theinstructions issued by an authorized representativefor dispute resolution, if any, of the client/stock-broker shall be binding on the client/ stock-broker inaccordance with the letter authorizing the saidrepresentative to deal on behalf of the saidclient/stock-broker.



17

TERMINATION OF RELATIONSHIP

27. This relationship between the stock broker and theclient shall be terminated; if the stock broker for anyreason ceases to be a member of the stock exchangeincluding cessation of membership by reason of thestock broker's default, death, resignation orexpulsion or if the certificate is cancelled by theBoard.

28. The stock broker, sub-broker and the client shall beentitled to terminate the relationship between themwithout giving any reasons to the other party, aftergiving notice in writing of not less than one month tothe other parties. Notwithstanding any suchtermination, all rights, liabilities and obligations ofthe parties arising out of or in respect of transactionsentered into prior to the termination of thisrelationship shall continue to subsist and vest in/bebinding on the respective parties or his/ itsrespective heirs, executors, administrators, legalrepresentatives or successors, as the case may be.

29. In the event of demise/insolvency of the sub-brokeror the cancellation of his/its registration with theBoard or/withdrawal of recognition of the sub-brokerby the stock exchange and/or termination of theagreement with the sub broker by the stock broker,for any reason whatsoever, the client shall beinformed of such termination and the client shall bedeemed to be the direct client of the stock brokerand all clauses in the 'Rights and Obligations'document(s) governing the stock broker, subbrokerand client shall continue to be in force as it is,unless the client intimates to the stock broker his/itsintention to terminate their relationship by giving anotice in writing of not less than one month.

ADDITIONAL RIGHTS AND OBLIGATIONS

30. The stock broker shall ensure due protection to theclient regarding client's rights to dividends, rights orbonus shares, etc. in respect of transactions routedthrough it and it shall not do anything which is likelyto harm the interest of the client with whom and forwhom they may have had transactions in securities.

31. The stock broker and client shall reconcile and settletheir accounts from time to time as per the Rules,Regulations, Bye Laws, Circulars, Notices andGuidelines issued by SEBI and the relevantExchanges where the trade is executed.

32. The stock broker shall issue a contract note to hisconstituents for trades executed in such format asmay be prescribed by the Exchange from time to timecontaining records of all transactions includingdetails of order number, trade number, trade time,trade price, trade quantity, details of the derivativescontract, client code, brokerage, all charges leviedetc. and with all other relevant details as requiredtherein to be filled in and issued in such manner andwithin such time as prescribed by the Exchange. Thestock broker shall send contract notes to theinvestors within one working day of the execution ofthe trades in hard copy and/or in electronic formusing digital signature.

33. The stock broker shall make pay out of funds ordelivery of securities, as the case may be, to theClient within one working day of receipt of the payoutfrom the relevant Exchange where the trade isexecuted unless otherwise specified by the client andsubject to such terms and conditions as may beprescribed by the relevant Exchange from time totime where the trade is executed.

34. The stock broker shall send a complete `Statementof Accounts' for both funds and securities in respectof each of its clients in such periodicity and formatwithin such time, as may be prescribed by therelevant Exchange, from time to time, where thetrade is executed. The Statement shall also statethat the client shall report errors, if any, in theStatement within such time as may be prescribed bythe relevant Exchange from time to time where thetrade was executed, from the receipt thereof to theStock broker.

35. The stock broker shall send daily margin statementsto the clients. Daily Margin statement should include,inter-alia, details of collateral deposited, collateralutilized and collateral status (available balance/duefrom client) with break up in terms of cash, FixedDeposit Receipts (FDRs), Bank Guarantee andsecurities.

36. The Client shall ensure that it has the required legalcapacity to, and is authorized to, enter into therelationship with stock broker and is capable ofperforming his obligations and undertakingshereunder. All actions required to be taken to ensurecompliance of all the transactions, which the Clientmay enter into shall be completed by the Client priorto such transaction being entered into.



18

ELECTRONIC CONTRACT NOTES (ECN)

37. In case, client opts to receive the contract note inelectronic form, he shall provide an appropriate e-mail id to the stock broker. The client shallcommunicate to the stock broker any change in theemail-id through a physical letter. If the client hasopted for internet trading, the request for change ofemail id may be made through the secured access byway of client specific user id and password

38. The stock broker shall ensure that all ECNs sentthrough the e-mail shall be digitally signed,encrypted, non-tamper able and in compliance withthe provisions of the IT Act, 2000. In case, ECN issent through e-mail as an attachment, the attachedfile shall also be secured with the digital signature,encrypted and non-tamperable.

39. The client shall note that non-receipt of bounced mailnotification by the stock broker shall amount todelivery of the contract note at the e-mail ID of theclient.

40. The stock broker shall retain ECN andacknowledgement of the e-mail in a soft and non-tamperable form in the manner prescribed by theexchange in compliance with the provisions of the ITAct, 2000 and as per the extant rules/regulations/circulars/guidelines issued by SEBI/Stock Exchangesfrom time to time. The proof of delivery i.e., logreport generated by the system at the time ofsending the contract notes shall be maintained bythe stock broker for the specified period under theextant regulations of SEBI/stock exchanges. The logreport shall provide the details of the contract notesthat are not delivered to the client/e-mails rejectedor bounced back. The stock broker shall take allpossible steps to ensure receipt of notification ofbounced mails by him at all times within thestipulated time period under the extant regulationsof SEBI/ stock exchanges.

41. The stock broker shall continue to send contractnotes in the physical mode to such clients who donot opt to receive the contract notes in the electronicform. Wherever the ECNs have not been delivered tothe client or has been rejected (bouncing of mails) bythe e-mail ID of the client, the stock broker shallsend a physical contract note to the client within thestipulated time under the extant regulations ofSEBI/stock exchanges and maintain the proof ofdelivery of such physical contract notes.

42. In addition to the e-mail communication of the ECNsto the

client, the stock broker shall simultaneously publishthe ECN on his designated web-site, if any, in asecured way and enable relevant access to theclients and for this purpose, shall allot a unique username and password to the client, with an option tothe client to save the contract note electronicallyand/or take a print out of the same.

LAW AND JURISDICTION

43. In addition to the specific rights set out in thisdocument, the stock broker, sub-broker and the clientshall be entitled to exercise any other rights whichthe stock broker or the client may have under theRules, Bye-laws and Regulations of the Exchanges inwhich the client chooses to trade and circulars/notices issued thereunder or Rules and Regulationsof SEBI.

44. The provisions of this document shall always besubject to Government notifications, any rules,regulations, guidelines and circulars/notices issuedby SEBI and Rules, Regulations and Bye laws of therelevant stock exchanges, where the trade isexecuted, that may be in force from time to time.

45. The stock broker and the client shall abide by anyaward passed by the Arbitrator(s) under theArbitration and Conciliation Act, 1996. However,there is also a provision of appeal within the stockexchanges, if either party is not satisfied with thearbitration award.

46. Words and expressions which are used in thisdocument but which are not defined herein shall,unless the context otherwise requires, have the samemeaning as assigned thereto in the Rules, Byelawsand Regulations and circulars/ notices issuedthereunder of the Exchanges/SEBI.

47. All additional voluntary clauses/document added bythe stock broker should not be in contravention withrules/regulations/ notices/circulars ofExchanges/SEBI. Any changes in such voluntaryclauses/document(s) need to be preceded by a noticeof 15 days. Any changes in the rights and obligationswhich are specified by Exchanges/SEBI shall also bebrought to the notice of the clients.

48. If the rights and obligations of the parties hereto arealtered by virtue of change in Rules and regulationsof SEBI or Byelaws, Rules and Regulations of therelevant stock Exchanges where the trade isexecuted, such changes shall be deemed to havebeen incorporated herein in modification of the rightsand obligations of the parties mentioned in thisdocumen.



19

INTERNET & WIRELESS TECHNOLOGY BASED TRADING FACILITY PROVIDED BY STOCK BROKERS TO CLIENT

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

1. Stock broker is eligible for providing Internet based trading (IBT) and securities trading through the use ofwireless technology that shall include the use of devices such as mobile phone, laptop with data card, etc.which use Internet Protocol (IP). The stock broker shall comply with all requirements applicable to internetbased trading/securities trading using wireless technology as may be specified by SEBI & the Exchanges fromtime to time.

2. The client is desirous of investing/trading in securities and for this purpose, the client is desirous of using eitherthe internet based trading facility or the facility for securities trading through use of wireless technology. TheStock broker shall provide the Stock broker's IBT Service to the Client, and the Client shall avail of the Stockbroker's IBT Service, on and subject to SEBI/Exchanges Provisions and the terms and conditions specified on theStock broker's IBT Web Site provided that they are in line with the norms prescribed by Exchanges/SEBI.

3. The stock broker shall bring to the notice of client the features, risks, responsibilities, obligations and liabilitiesassociated with securities trading through wireless technology/internet/smart order routing or any othertechnology should be brought to the notice of the client by the stock broker.

4. The stock broker shall make the client aware that the Stock Broker's IBT system itself generates the initialpassword and its password policy as stipulated in line with norms prescribed by Exchanges/SEBI.

5. The Client shall be responsible for keeping the Username and Password confidential and secure and shall besolely responsible for all orders entered and transactions done by any person whosoever through the Stockbroker's IBT System using the Client's Username and/or Password whether or not such person was authorized todo so. Also the client is aware that authentication technologies and strict security measures are required for theinternet trading/securities trading through wireless technology through order routed system and undertakes toensure that the password of the client and/or his authorized representative are not revealed to any third partyincluding employees and dealers of the stock broker.

6. The Client shall immediately notify the Stock broker in writing if he forgets his password, discovers security flawin Stock Broker's IBT System, discovers/suspects discrepancies/ unauthorized access through hisusername/password/account with full details of such unauthorized use, the date, the manner and thetransactions effected pursuant to such unauthorized use, etc.

7. The Client is fully aware of and understands the risks associated with availing of a service for routing ordersover the internet/ securities trading through wireless technology and Client shall be fully liable and responsiblefor any and all acts done in the Client's Username/password in any manner whatsoever.

8. The stock broker shall send the order/trade confirmation through email to the client at his request. The client isaware that the order/ trade confirmation is also provided on the web portal. In case client is trading usingwireless technology, the stock broker shall send the order/trade confirmation on the device of the client.

9. The client is aware that trading over the internet involves many uncertain factors and complex hardware,software, systems, communication lines, peripherals, etc. are susceptible to interruptions and dislocations. TheStock broker and the Exchange do not make any representation or warranty that the Stock broker's IBT Servicewill be available to the Client at all times without any interruption.

10. The Client shall not have any claim against the Exchange or the Stock broker on account of any suspension,interruption, nonavailability or malfunctioning of the Stock broker's IBT System or Service or the Exchange'sservice or systems or non-execution of his orders due to any link/system failure at the Client/Stockbrokers/Exchange end for any reason beyond the control of the stock broker/ Exchanges.



RISK DISCLOSURE DOCUMENT FOR CAPITAL MARKET AND DERIVATIVES SEGMENTS ANNEXURE-5

20

This document contains important information on tradingin Equities/Derivatives Segments of the stock exchanges.All prospective constituents should read this documentbefore trading in Equities/Derivatives Segments of theExchanges.Stock exchanges/SEBI does neither singly or jointly andexpressly nor impliedly guarantee nor make anyrepresentation concerning the completeness, theadequacy or accuracy of this disclosure document nor haveStock exchanges /SEBI endorsed or passed any merits ofparticipating in the trading segments. This briefstatement does not disclose all the risks and othersignificant aspects of trading.In the light of the risks involved, you should undertaketransactions only if you understand the nature of therelationship into which you are entering and the extent ofyour exposure to risk.You must know and appreciate that trading in Equityshares, derivatives contracts or other instruments tradedon the Stock Exchange, which have varying element ofrisk, is generally not an appropriate avenue for someoneof limited resources/limited investment and/or tradingexperience and low risk tolerance. You should thereforecarefully consider whether such trading is suitable for youin the light of your financial condition. In case you tradeon Stock exchanges and suffer adverse consequences orloss, you shall be solely responsible for the same andStock exchanges/its Clearing Corporation and/or SEBIshall not be responsible, in any manner whatsoever, forthe same and it will not be open for you to take a pleathat no adequate disclosure regarding the risks involvedwas made or that you were not explained the full riskinvolved by the concerned stock broker. The constituentshall be solely responsible for the consequences and nocontract can be rescinded on that account. You mustacknowledge and accept that there can be no guaranteeof profits or no exception from losses while executingorders for purchase and/or sale of a derivative contractbeing traded on Stock exchanges.It must be clearly understood by you that your dealingson Stock exchanges through a stock broker shall besubject to your fulfilling certain formalities set out by thestock broker, which may inter alia include your filling theknow your client form, reading the rights and obligations,do's and don'ts, etc., and are subject to the Rules,Byelaws and Regulations of relevant Stock exchanges, itsClearing Corporation, guidelines prescribed by SEBI and inforce from time to time and Circulars as may be issued byStock exchanges or its Clearing Corporation and in forcefrom time to time.Stock exchanges does not provide or purport to provideany advice and shall not be liable to any person whoenters into any business relationship with any stockbroker of Stock exchanges and/or any third party based onany information contained in this document. Anyinformation contained in this document must not beconstrued as business advice. No consideration to tradeshould be made without thoroughly understanding andreviewing the risks involved in such trading.

If you are unsure, you must seek professional adviceon the same.In considering whether to trade orauthorize someone to trade for you, you should beaware of or must get acquainted with the following:-

BASIC RISKS:1.1 Risk of Higher Volatility

Volatility refers to the dynamic changes in pricethat a security/derivatives contract undergoeswhen trading activity continues on the StockExchanges. Generally, higher the volatility of asecurity/derivatives contract, greater is its priceswings. There may be normally greater volatilityin thinly traded securities / derivatives contractsthan in active securities /derivatives contracts.As a result of volatility, your order may only bepartially executed or not executed at all, or theprice at which your order got executed may besubstantially different from the last traded priceor change substantially thereafter, resulting innotional or real losses.

1.2 Risk of Lower LiquidityLiquidity refers to the ability of marketparticipants to buy and/or sell securities /derivatives contracts expeditiously at acompetitive price and with minimal pricedifference. Generally, it is assumed that morethe numbers of orders available in a market,greater is the liquidity. Liquidity is importantbecause with greater liquidity, it is easier forinvestors to buy and/or sell securities /derivatives contracts swiftly and with minimalprice difference, and as a result, investors aremore likely to pay or receive a competitive pricefor securities / derivatives contracts purchasedor sold. There may be a risk of lower liquidity insome securities / derivatives contracts ascompared to active securities / derivativescontracts. As a result, your order may only bepartially executed, or may be executed withrelatively greater price difference or may not beexecuted at all.1.2.1 Buying or selling securities / derivativescontracts as part of a day trading strategy mayalso result into losses, because in such asituation, securities / derivatives contracts mayhave to be sold / purchased at low / high prices,compared to the expected price levels, so as notto have any open position or obligation todeliver or receive a security / derivativescontract.

1.3 Risk of Wider SpreadsSpread refers to the difference in best buy priceand best sell price. It represents the differentialbetween the price of buying a security /derivatives contract and immediately selling it orvice versa. Lower liquidity and higher volatilitymay result in wider than normal spreads for lessliquid or illiquid securities / derivativescontracts. This in turn will hamper better priceformation.



21

1.4 Risk-reducing ordersThe placing of orders (e.g., "stop loss" orders, or "limit"orders) which are intended to limit losses to certainamounts may not be effective many a time becauserapid movement in market conditions may make itimpossible to execute such orders.1.4.1 A "market" order will be executed promptly,subject to availability of orders on opposite side,without regard to price and that, while the customermay receive a prompt execution of a "market" order, theexecution may be at available prices of outstandingorders, which satisfy the order quantity, on price timepriority. It may be understood that these prices may besignificantly different from the last traded price or thebest price in that security / derivatives contract.1.4.2 A "limit" order will be executed only at the "limit"price specified for the order or a better price. However,while the customer receives price protection, there is apossibility that the order may not be executed at all.1.4.3 A stop loss order is generally placed "away" fromthe current price of a stock / derivatives contract, andsuch order gets activated if and when the security /derivatives contract reaches, or trades through, thestop price. Sell stop orders are entered ordinarily belowthe current price, and buy stop orders are enteredordinarily above the current price. When the security /derivatives contract reaches the pre -determined price,or trades through such price, the stop loss orderconverts to a market/limit order and is executed at thelimit or better. There is no assurance therefore that thelimit order will be executable since a security /derivatives contract might penetrate the pre-determined price, in which case, the risk of such ordernot getting executed arises, just as with a regular limitorder.

1.5 Risk of News Announcements

News announcements that may impact the price ofstock / derivatives contract may occur during trading,and when combined with lower liquidity and highervolatility, may suddenly cause an unexpected positiveor negative movement in the price of the security /contract.

1.6 Risk of Rumors

Rumors about companies / currencies at times float inthe market through word of mouth, newspapers,websites or news agencies, etc. The investors shouldbe wary of and should desist from acting on rumors.

1.7 System Risk

High volume trading will frequently occur at the marketopening and before market close. Such high volumesmay also occur at any point in the day. These maycause delays in order execution or confirmation.

1.7.1 During periods of volatility, on account of marketparticipants continuously modifying their order quantityor prices or placing fresh orders, there may be delays inorder execution and its confirmations.

1.7.2 Under certain market conditions, it may bedifficult or impossible to liquidate a position in themarket at a reasonable price or at all, when there areno outstanding orders either on the buy side or thesell side, or if trading is halted in a security /derivatives contract due to any action on account ofunusual trading activity or security / derivativescontract hitting circuit filters or for any other reason.

1.8 System/Network Congestion:

Trading on exchanges is in electronic mode, based onsatellite/leased line based communications,combination of technologies and computer systemsto place and route orders. Thus, there exists apossibility of communication failure or systemproblems or slow or delayed response from system ortrading halt, or any such other problem/ glitchwhereby not being able to establish access to thetrading system/network, which may be beyondcontrol and may result in delay in processing or notprocessing buy or sell orders either in part or in full.You are cautioned to note that although theseproblems may be temporary in nature, but when youhave outstanding open positions or unexecutedorders, these represent a risk because of yourobligations to settle all executed transactions.

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

2.1 Effect of "Leverage" or "Gearing":

In the derivatives market, the amount of margin issmall relative to the value of the derivatives contractso the transactions are 'leveraged' or 'geared'.Derivatives trading, which is conducted with arelatively small amount of margin, provides thepossibility of great profit or loss in comparison withthe margin amount. But transactions in derivativescarry a high degree of risk.You should therefore completely understand thefollowing statements before actually trading inderivatives and also trade with caution while takinginto account one's circumstances, financial resources,etc. If the prices move against you, you may lose apart of or whole margin amount in a relatively shortperiod of time. Moreover, the loss may exceed theoriginal margin amount.

A. Futures trading involve daily settlement of allpositions. Every day the open positions are markedto market based on the closing level of the index /derivatives contract. If the contract has movedagainst you, you will be required to deposit theamount of loss (notional) resulting from suchmovement. This amount will have to be paid within astipulated time frame, generally beforecommencement of trading on next day.



22

B. If you fail to deposit the additional amount by thedeadline or if an outstanding debt occurs in youraccount, the stock broker may liquidate a part of orthe whole position or substitute securities. In thiscase, you will be liable for any losses incurred due tosuch close-outs.

C. Under certain market conditions, an investor may findit difficult or impossible to execute transactions. Forexample, this situation can occur due to factors suchas illiquidity i.e. when there are insufficient bids oroffers or suspension of trading due to price limit orcircuit breakers etc.

Print KYC Form

Documents

Transcript of Print KYC Form