TERMS & CONDITIONS GOVERNING WEB BASED BROKERAGE TRANSACTION ON sumedhafiscal.com
This document contains important information regarding the terms and conditions which apply to your account with Sumedha Fiscal Services Ltd. (herein after referred to as Sumedha), a member of National Stock Exchange and The Bombay Stock Exchange, Mumbai, Sumedha Fiscal Services Ltd. (hereinafter referred to as SUMEDHA CUSTODIAL), a Company incorporated under the Companies Act, 1956, licensed as a trading company under the Trading Regulation Act, 1949 and registered as a Depository Participant. (Collectively referred to as Sumedha). Your access to and use of your account and Sumedha services are subject to your compliance with all the terms and conditions set forth herein.
A. TERMS & CONDITIONS GOVERNING SUMEDHA FISCAL SERVICES LIMITED
1. The transactions of Sumedha shall be executed in accordance with the applicable laws, byelaws, rules and regulations governing the specific Investment Product. Sumedha may from time to time impose and vary buying power on the orders which the Client/s may place, including exposure buying power, turnover buying power, buying power as to numbers etc. The Client/s agrees that Sumedha shall not be responsible for any variation or reduction that may be deemed necessary by Sumedha based on its risk perception and other relevant factors.
2. Sumedha shall cause to display the Terms and Conditions governing the purchase, sale or any other transaction in each of these Investment Products as and when they are introduced. Provided that Sumedha shall be entitled to modify/alter the said Terms and Conditions and such a change shall be displayed on sumedhafiscal.com so as intimate the modification/alteration to the Client/s. The continued use of the website by the Client/s shall be deemed to be an acceptance by the Client/s of the modified/altered Terms and Conditions.
3. Sumedha has satisfied itself and shall continue to satisfy itself about the genuineness and financial soundness of the Client/s and investment objectives relevant to the services. Provided that the Client/s shall ensure that any material change which may have an impact on the Client/s capacity to transact through Sumedha shall be intimated to it within reasonable time in writing.
4. In the event of an order being annulled by the Exchange(s), Sumedha shall have the right to cancel any/all relative order(s) placed by the Client/s. Sumedha shall take all reasonable steps to make the Client/s aware of the nature of Sumedha �s liability for business that it conducts, including any limitations on that liability and its capacity as the Client/s agent.
5.ORDER EXECUTION
Though orders are usually routed through the marketplace within seconds, certain orders, at Sumedha ‘s sole discretion, may be subject to manual review and entry, which may cause delays in the processing of their orders. Client/s also understand that with respect to market order, Client/s will receive the price at which their order was actually executed in the marketplace, which may be different from the price at which the security is traded when their order is entered into Sumedha’s system.
6.PURCHASE OF SECURITIES
To process orders to purchase securities, it is necessary that the client�s account contain buying power before the execution of order. Any order inadvertently accepted and executed without sufficient buying power will be subject to cancellation or liquidation at Sumedha ‘s discretion. However, Client/s are responsible for all of their orders, including any orders, which exceed available limit in their account. If buying power is not available in the account and an order is processed, Client/s should credit the required fund in their Trading Account with Sumedha via wire or personal cheque, cashier’s cheque or money order or account transfer or by any other mode (except Cash Deposits), promptly to assure that such payment will be received and processed on or prior to settlement date or intimated date, whichever is earlier. If payment is not received by settlement date or intimated date, whichever is earlier, the client�s position may be squared off, without prior notification. In the event their account is liquidated, Client/s will be liable for any resulting losses and all associated costs incurred by Sumedha .
7.SALES OF SECURITIES – IN CASH PRODUCT
To process orders to sell securities, it is necessary that their accounts contain sufficient Free Securities Balance in the Security Demat Account with Sumedha prior to the acceptance of a sell order. Proceeds of the sale cannot be paid to Client/s until securities have been delivered to the Exchange/clearing house & pay out is received from the Exchange/Clearing House. The proceeds of all sales will be credited to their account on request from the Client/s. If the securities are not received on or before settlement date or securities received are not in deliverable state or due to any other reason whatsoever, Client/s are not able to deliver securities, the securities will be Auctioned or closed out as per the rules of the concerned Exchange. Consequently, Client/s will be responsible for any resulting losses and all associated costs including penalty levied by the Exchange. However, if due to internal netting of Client�s obligations at Sumedha itself, a Client receives short delivery, then Sumedha may buy in the required quantity and deliver the shares to the Client or it may credit the buying Client who received short delivery with an amount calculated at the rate of the Exchange�s weighted average auction price for that scrip on the relevant auction date or any other rate as may be decided by Sumedha, and the equivalent amount will be debited to the concerned selling Client, who delivered short. As this being the normal market practice adopted, no further queries/claims will be entertained by Sumedha in this regard.
8. CONFIRMATIONS, STATEMENTS, NOTICES AND OTHER COMMUNICATIONS:
Sumedha shall send the Client/s electronically the Contract Note/Trade Confirmation of the trades executed on their behalf on the trade date. Client/s understand that it is their responsibility to review, upon first receipt, whether delivered to Client/s by mail, by e-mail, or other electronic means, all confirmations, statements, notices and other communications, including but not limited to, margin, maintenance calls, and prospectuses. All information contained therein shall be binding upon Client/s, if Client/s do not object, either in writing or via electronic mail, within Twenty Four hours after any such document is sent to Client/s. In all cases, Sumedha reserves the right to determine the validity of their objection to the transaction. Notices and other communications may also be provided to Client/s verbally. Client/s agrees that Sumedha fulfils its legal obligation to deliver to Client/s any such document if sent via electronic delivery. Documents sent by electronic delivery will contain all the information as it appears in the printed hardcopy version as prepared and distributed by the originator, with the possible exception of graphic insertions such as photographs or logotypes. Electronic delivery may be in the form of an email, an electronic mail attachment, or in the form of an available download from the web site. Client/s represent that Client/s will download the relevant document promptly after receiving notice of its availability. Should Client/s experience any difficulty in opening a document electronically delivered by Sumedha , Client/s will promptly advise Sumedha in order to allow it to make the required delivery by other means. Failure to advise Sumedha of such difficulty within Forty eight hours after delivery shall serve as an affirmation that Client/s were able to receive and open said document.
9. SALES OF SECURITIES AND PURCHASE OF SECURITIES � In Margin Product
Short Sales: Before executing any sell order Client/s should have funds in their Trading account with Sumedha equal to or greater than margin money. Any order accepted without free stock balance in the account would be deemed a short sale. Short Sales can be settled by squaring off the trade within same trade cycle. Client/s agree and understand that if Client/s does not square off the position by the stipulated time before the close of market hours on the last day of the trading cycle, Sumedha has all the rights to square off the position on the same day or on any later date. Any such purchases may be made at any time at Sumedha ‘s discretion on any exchange or other market where such business is usually transacted, or at public auction, or Sumedha may be the purchaser for Sumedha ‘s own account. Client/s are responsible for any losses or expenses incurred by Sumedha ‘s as a result of their failure to make such delivery/Square off the trade. As and when SEBI and its Regulatory bodies come up with new circulars, notifications or guidelines with respect to operations, trading and other related matters Sumedha will be modifying these terms and conditions to meet the requirements.
Long Buys:Before executing any buy order Client/s should either have funds in their Trading account with Sumedha equal to or greater than the required margin money. Any long buys can be settled by squaring off the trade within same trade cycle. Client/s agree and understand that if Client/s do not square off the position by the stipulated time before the close of market hours on the last day of the trading cycle, Sumedha have all rights to square off the position on the same day or on any later date. Any such sales may be made at any time at Sumedha ‘s discretion on any exchange or other market where such business is usually transacted or private sale or Sumedha may be the seller for Sumedha ‘s own account. Client/s are responsible for any losses or expenses incurred by Sumedha ‘s as a result of their failure to make payment/Square off the trade.
10.CALLS FOR ADDITIONAL COLLATERAL AND LIQUIDATION
If it is considered necessary for its own protection, Sumedha may require the Client/s to immediately deposit cash or collateral into their account prior to any applicable settlement date in order to assure due performance of their open contractual commitments. If Client/s do not provide the additional cash or collateral, Client/s hereby understand and acknowledge that Sumedha has the right to sell any or all securities and other property in their account, buy any or all securities and other property which may be short in their account, cancel any or all open orders and/or close any or all outstanding contracts. In addition, Client/s understand and agree that Sumedha may exercise any or all of the above rights without demand for additional cash or collateral, or notice of sale or purchase, or other notice or advertisement. Any such sales or purchases may be made at any time at Sumedha ‘s discretion on any exchange or other market where such business is usually transacted, or at public auction or private sale, or Sumedha may be the purchaser/seller for its own account. It is understood that giving of any prior demand or call or prior notice of the time and place of such sale or purchase shall not be considered as a waiver of Sumedha ‘s legal right to sell or buy without any such demand, call or notice.
11.AUTO SQUARE OFF
Client/s agree that Sumedha would have the discretion to square off the position of Client/s in following circumstances: In case of Margin Trades, if the open position is neither squared off nor converted to Delivery by Client/s within the stipulated time. In case of Margin Trades, where Mark to Market Loss on the open position has reached the stipulated percent of the margins placed with Sumedha ‘s and the Client/s have not taken any steps either to replenish the margin or reduce the Mark to Market Loss. In all other cases where the margin or security placed by the Client/s falls short of the requirement or where the buying power given to the Client/s have been breached or where the Client/s have defaulted on their existing obligation, Client/s agree that although the auto square off trigger point is pre-defined, subsequent to which Sumedha could exercise its discretion to carry out the square off within a reasonable period of time, the actual execution could happen at a price different from the trigger point and the Client/s agree to bear the loss based on actual executed price. Sumedha shall also have the right to cancel any or all open orders and/or close any or all outstanding contracts. Client/s understand that in case the Auto Square off does not take place due to certain reasons like price band, etc. then Sumedha shall exercise the option of CTD (Convert to Delivery). If CTD also fails due to non-availability/shortage of Demat shares, then for the open sale position, the Client/s will have to face auction or close out as per the rules of the concerned Exchange. Consequently, Client/s will be responsible for any resulting losses and all associated costs including penalty levied by the Exchange. If CTD also fails due to insufficient funds/no funds, then for the open buy position, the shares will not be delivered to the Client/s and Sumedha will liquidate the shares anytime and the Client/s will be liable for any resulting losses, brokerage and all associated costs incurred by Sumedha . Sumedha reserves the right to square off any open margin positions, if the current market price breaches a specified percentage when compared with the previous day�s closing price for that scrip. This specified percentage(s) is currently 16% and shall be modified by Sumedha from time to time.
12.TERMINATION OF SERVICE
The facility may be withdrawn anytime by Sumedha provided the Client/s are given reasonable notice under the circumstances. If the service is withdrawn for a reason other than the breach of the terms and conditions by the Client/s, Sumedha �s liability shall be restricted to the return of the annual charges, if any, recovered from the Client/s for the period in question. The closure of all accounts of the Client/s will automatically terminate the sumedhafiscal.com service. Sumedha may suspend or terminate trading facilities without prior notice if the Client/s have breached these terms and conditions or Sumedha learns of the death, bankruptcy or lack of legal capacity of the Client/s.
13. OTHERS
1.The provisions of the agreement signed between the client and Sumedha shall always be subject to Government notifications, any rules, regulations and guidelines issued by SEBI and Stock Exchange rules, regulations and bye-laws that may be in force from time to time.
2.In the event of death or insolvency of the client of his otherwise becoming incapable of receiving and paying for or delivering or transferring securities which the client has ordered to be bought or sold, Sumedha may close out the transaction of the client and the client or his legal representative shall be liable for any losses, costs and be entitled to any surplus which may result there from.
3.The agreement entered into between Sumedha and the CLIENT shall stand terminated by mutual consent of the parties by giving at least one month written notice. Such cancellation or termination shall not have any effect on transaction executed before the date of such notice of termination and the parties shall enjoy the same rights and shall have same obligations in respect of such transactions.
4.The instructions issued by an authorized representative of the client shall be binding on the client in accordance with the letter authorizing the said representative to deal on behalf of the client.
5.The Stock Exchange may cancel a trade suo-moto without giving any reason thereof. In the event of such cancellation, Sumedha shall be entitled to cancel relative contract(s) with CLIENT.
6.All trades, transactions and contracts are subject to the Rules and Regulations of the Exchange and shall be deemed to be and shall take effect as wholly made, entered into and to be performed in the city of Mumbai and the parties to such trade shall be deemed to have submitted to the jurisdiction of the Courts in Mumbai for the purpose of giving effect to the provisions of the Rules and Regulations of the Exchange.
B. TERMS AND CONDITIONS GOVERNING THE USE OF PAYMENT GATEWAY SERVICE
The MEMBER has relationship with one or more banks (the “Relationship Banks”). The website of the MEMBER has a payment window through a link to the web site of the Relationship Bank which provides the facility. In such a case, the CLIENT would make the payment for securities purchased by him/her/it by crediting the purchase amount (along with the indicated brokerage amount) directly to the account of the MEMBER with the Relationship Bank by means of a fund transfer. Similarly in the case where the CLIENT makes an order for sale of securities, the MEMBER would credit the account of the CLIENT with the Relationship Bank by means of a fund transfer on request from the CLIENT. The MEMBER expressly states that the payment gateway mechanism is a service offered by the Banks with whom the MEMBER has established relations for facilitating the transfer of funds between the CLIENT’s account and the MEMBER’s account. The MEMBER expressly excludes liability for consequential loss or damage or loss of profit, business, revenue, goodwill or anticipated savings which may arise in respect of (i) the payment gateway services offered by such Banks (ii) the Payment Mechanism
C. TERMS & CONDITIONS GOVERNING DEPOSITORY TRANSACTIONS
1. The Client/s shall have the right to create a pledge of the securities held in a dematerialised form with SUMEDHA CUSTODIAL only in accordance with the procedure and subject to the restrictions laid down under the bye laws and business rules of the Depository. Provided that nothing contained herein shall be deemed to permit the Client/s to pledge or otherwise use any security that has been blocked by the Client/s or by their power of attorney holders at any time, and SUMEDHA CUSTODIAL shall be deemed to have reserved all rights to dishonour any such instruction by the Client/s.
2.The Client/s shall cause to be submitted, all necessary documents including the status of the securities, that may be necessary for the legal transfer of securities, which require regulatory permissions for their transfer to Sumedha and SUMEDHA CUSTODIAL. The transfer of these securities shall be subject to a clear legal title and such other delays as may be occasioned due to the processing of such securities. All costs associated with the compliance or failure to comply with the necessary regulatory requirements shall be the sole responsibility of the Client/s.
3.SUMEDHA CUSTODIAL shall at no time be under an obligation to notify the Client/s of any upcoming expiration or redemption date or to take any action in relation to certain securities including but not limited to options, warrants, stock purchase rights, convertible securities, bonds and securities subject to a tender or exchange offer, which grant the holder thereof valuable rights that may expire unless the holder thereof takes a particular action. The Client/s shall be deemed to be aware of the rights, obligations and terms of all the securities in their account. Provided that nothing in the foregoing shall be deemed to absolve SUMEDHA CUSTODIAL from any statutory requirements, legal requirements and/or applicable rules of regulatory authorities.
4.SUMEDHA CUSTODIAL shall not be liable to the Client/s for any loss caused to the Client/s due to any reorganization in the securities which the Client/s hold, including, but not limited to, stock splits and reverse stock splits. SUMEDHA CUSTODIAL shall also be under no obligation to notify the Client/s of any such reorganization SUMEDHA CUSTODIAL will also not be responsible for the title, validity or genuineness of any securities, which have been dematerialised and notified subsequently by the registrar of any defects in its title/validity, which has resulted in a reduction of the dematerialised holdings in their account.
5. CONTROL” OR “RESTRICTED” SECURITIES:
Even if the necessary documents are furnished in a timely manner, there may be delays with the processing of such securities. Sumedha , at its sole discretion, may require that such securities not be sold/bought or transferred until they clear legal transfer. Client/s are responsible for all costs associated with compliance or failure to comply with all the regulatory requirements.
6. CLIENT�S RESPONSIBILITY REGARDING CERTAIN SECURITIES
Certain securities may grant the holder thereof valuable rights that may expire unless the holder takes action. These securities include, but are not limited to, options, warrants, stock purchase rights, convertible securities, bonds and securities subject to a tender or exchange offer. Client/s are responsible for knowing the rights and terms of all securities in their account. If, due to a reorganisation or bookkeeping or data entry error, Client/s sell more shares of a security than Client�s own, then SUMEDHA CUSTODIAL/Sumedha will not be responsible for any losses Client/s may incur.
D. GENERAL TERMS AND CONDITIONS/REPRESENTATIONS AND WARRANTIES.
1. Sumedha shall credit the proceeds of the sale/redemption etc. of any of the Investment Products only after Sumedha has received the same. The proceeds of all sales will be credited to the Client�s trading account directly on the settlement date.
2. If the securities are not received on or before settlement date or securities received are not in deliverable state or due to any other reason whatsoever, Client/s are not able to deliver securities, the securities will be auctioned or closed out as per the rules of the concerned Exchange. Consequently, Client/s will be responsible for any resulting losses and all associated costs including penalty levied by the Exchange.
3. The Client/s also acknowledge that the employees of Sumedha and/or SUMEDHA CUSTODIAL are not authorized to give out any advice and the Client/s shall at all times be responsible and liable for their own actions/inactions. The Client/s may be able to access investment research reports through the Internet from the web-site, including computerized on-line services. The availability of such information does not constitute a recommendation to buy or sell any of the Investment Products. Any investment decisions will be based solely on the Client�s own evaluation of financial circumstances and investment objectives. Any real-time quotes provided are only for the Client�s individual use and the Client/s shall not furnish such data to any other person or entity.
4. The Client/s agree to indemnify and hold Sumedha and SUMEDHA CUSTODIAL harmless against any loss that may be suffered by them, its customers or a third party or any claim or action that may be initiated by a third party which is in any way the result of improper use of the digital signatures, user ID and password by the Client/s.
5. The Client/s hereby agree to indemnify Sumedha Fiscal Services Ltd. and SUMEDHA CUSTODIAL for any loss, liability, costs or damages that may be incurred by all or any of them due to a breach of any of the client�s obligations under the Client�s Agreement.
6.The Client/s affirm and shall continue to affirm every time an order is placed though Sumedha or an application preferred, as the case may be, that all information provided and the statements made in the Account Opening Form are true and are not misleading (whether by reason of an omission to state a particular fact or otherwise as at the time of completing the Account Opening Form or any time thereafter). The Client/s agree that Sumedha and SUMEDHA CUSTODIAL have agreed to provide to the Client/s services at sumedhafiscal.com based on the representations contained therein and in this Agreement.
7. The Client/s affirm that they have the required legal capacity to enter into this Agreement and are capable of performing their obligations and undertakings hereunder.
8. The Client/s shall at all times be liable to pay Sumedha the brokerage, commission, service tax and other taxes and transaction expenses as applicable/notified by Sumedha on the Website from time to time. The Client/s agree that any request for cancellation/modification of an order or an application shall be subject to the order or application not having been acted upon or already being executed or it being outside the control of Sumedha to make any cancellation or modification to such order or application. An order or application shall be deemed to have been executed or cancelled only after the Client/s have received a statement from Sumedha intimating them of the status of their order.
9.The Client/s hereby agree that Sumedha or the Exchanges shall not be liable for the non-execution of any order caused due to any suspension, interruption, non-availability or malfunctioning of the online trading service or the Exchange system or service for any reasons whatsoever.
10. The Client/s agree that Sumedha and SUMEDHA CUSTODIAL may enforce any of the rights, duties and obligations arising under this Agreement or any related document including the power of attorney either jointly or independently and nothing in this Agreement shall be construed in a manner so as to restrict the right of Sumedha and SUMEDHA CUSTODIAL to initiate any action jointly.
11. The Client/s agree & authorise SUMEDHA CUSTODIAL to block any security sold from the designated security account against their order or the order of their power of attorney holders’ order to sell securities. If their order gets executed either fully or partially then the securities sold would be transferred to the Sumedha Pool Account on designated date & the balance securities, if any, would be unblocked on the trade date.
12. The Client/s agree to and undertake to deposit with Sumedha such cash, securities or other acceptable securities as may be required as a margin, in addition to the permanent margin, which may be higher than the margin as prescribed by the Exchange.
13. The Client/s shall choose a password that shall be at least 6 characters long and shall at all times keep the Client-Identification and password confidential. Further, at such time and within such period as Sumedha may require, the Client/s shall obtain and maintain during the term of this Agreement, digital signatures, which would aid and assist the Parties and the Client/s to authenticate all or any electronic transactions made at sumedhafiscal.com. The Client/s shall be responsible for keeping the Client-Id and password and/or digital signature confidential and secure and shall be solely responsible for all orders and transaction that are entered and executed using the password and/or digital signature whether or not such person was authorized to do so. In the event of an apprehension of unauthorized access, the Client/s shall immediately cause the password and/or digital signature to be changed. The Client/s shall at no time allow any unauthorized person access to their account and shall ensure that the client logs off every time they are not using the service. The Client/s shall forthwith intimate Sumedha of any unauthorized usage of the same with full details of the date, the manner and the transactions executed after the unauthorized use.
14. The Client/s acknowledge that they are fully aware of the risks involved in online trading activities, including the risk involved due to unauthorized access or any technical difficulties.
15. The Client/s shall at all times continue to be responsible for any transaction ordered on their accounts prior to the cancellation of the services. If the service is withdrawn for a reason other than the breach of the terms and conditions by the Client/s, the liability of Sumedha and SUMEDHA CUSTODIAL shall be restricted to the return of the annual charges, if any, recovered from the Client/s for the period in question. The closure of the accounts of the Client/s shall automatically terminate the web based brokerage service facilitated by sumedhafiscal.com and SUMEDHA CUSTODIAL may suspend or terminate trading facilities without prior notice if the Client/s have breached these terms and conditions or it learns of the death, bankruptcy or lack of legal capacity of the Client/s.
16. No forbearance, relaxation, failure or delay by any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.
17. SUMEDHA and SUMEDHA CUSTODIAL may in their sole discretion close the accounts of the Client/s in the event of death or insolvency of the Client/s.
18. Sumedha may send the order/trade confirmation slip/online intimation of successful/unsuccessful applications through e-mail to the Client/s at their request, within such period as prescribed or reasonably possible/practicable for Sumedha to do so from the time of execution of order/trade on the National Exchange for Automated Trading (NEAT)/ BSE on-line Trading (BOLT) system or such other third party as the case may be for effecting purchase/sale or preferring an application for an investment product, as the case may be or by means of electronic record, duly authenticated by Sumedha . The Client/s agree that the information sent by Sumedha by e-mail is deemed to be a valid delivery of such information by Sumedha
RISK DISCLOSURE DOCUMENT
COMBINED RISK DISCLOSURE DOCUMENT FOR CAPITAL MARKET/CASH SEGMENT AND FUTURES & OPTIONS SEGMENT
This document is issued by the member of the National Stock Exchange of India (hereinafter referred to as �NSE�) / The Bombay Stock Exchange, (hereinafter referred to as �BSE�) which has been formulated by the Exchanges in coordination with the Securities and Exchange Board of India (hereinafter referred to as �SEBI�) and contains important information on trading in Equities and F&O Segments of NSE / BSE. All prospective constituents should read this document before trading on Capital Market/Cash Segment or F&O segment of the Exchanges.
NSE/BSE/SEBI does neither singly or jointly and expressly nor impliedly guarantee nor make any representation concerning the completeness, the adequacy or accuracy of this disclosure document nor has NSE/BSE/SEBI endorsed or passed any merits of participating in the trading segments. This brief statement does not disclose all the risks and other significant aspects of trading.
In the light of the risks involved, you should undertake transactions only if you understand the nature of the contractual relationship into which you are entering and the extent of your exposure to risk.
You must know and appreciate that investment in Equity Shares, Derivatives or other instruments traded on the Stock Exchange(s), which have varying element of risk, is generally not an appropriate avenue for someone of limited resources/limited investment and/or trading experience and low risk tolerance. You should therefore carefully consider whether such trading is suitable for you in the light of your financial condition. In case you trade on NSE/BSE and suffer adverse consequences or loss, you shall be solely responsible for the same and NSE/BSE, its Clearing Corporation/ Clearing House and/or SEBI shall not be responsible, in any manner whatsoever, for the same and it will not be open for you to take a plea that no adequate disclosure regarding the risks involved was made or that you were not explained the full risk involved by the concerned member. The constituent shall be solely responsible for the consequences and no contract can be rescinded on that account. You must acknowledge and accept that there can be no guarantee of profits or no exception from losses while executing orders for purchase and/or sale of a security or derivative being traded on NSE/BSE.
It must be clearly understood by you that your dealings on NSE/BSE through a member shall be subject to your fulfilling certain formalities set out by the member, which may inter alia include your filling the know your client form, client registration form, execution of an agreement, etc. and are subject to the Rules, Byelaws and Regulations of NSE/BSE and its Clearing Corporation, guidelines prescribed by SEBI and in force from time to time and Circulars as may be issued by NSE/BSE or its Clearing Corporation/Clearing House and in force from time to time.
NSE/BSE does not provide or purport to provide any advice and shall not be liable to any person who enters into any business relationship with any trading member and/or sub-broker of NSE/BSE and/or any third party based on any information contained in this document. Any information contained in this document must not be construed as business advice/investment advice. No consideration to trade should be made without thoroughly understanding and reviewing the risks involved in such trading. If you are unsure, you must seek professional advice on the same.
In considering whether to trade or authorize someone to trade for you, you should be aware of or must get acquainted with the following:-
1. BASIC RISKS INVOVLED IN TRADING ON THE STOCK EXCHANGE (EQUITY AND OTHER INSTRUMENTS)
1.1 Risk of Higher Volatility:
Volatility refers to the dynamic changes in price that securities undergo when trading activity continues on the Stock Exchange. Generally, higher the volatility of a security/contract, greater is its price swings. There may be normally greater volatility in thinly traded securities /contracts than in active securities /contracts. As a result of volatility, your order may only be partially executed or not executed at all, or the price at which your order got executed may be substantially different from the last traded price or change substantially thereafter, resulting in notional or real losses.
1.2 Risk of Lower Liquidity:
Liquidity refers to the ability of market participants to buy and/or sell securities / contracts expeditiously at a competitive price and with minimal price difference. Generally, it is assumed that more the numbers of orders available in a market, greater is the liquidity. Liquidity is important because with greater liquidity, it is easier for investors to buy and/or sell securities / contracts swiftly and with minimal price difference, and as a result, investors are more likely to pay or receive a competitive price for securities / contracts purchased or sold. There may be a risk of lower liquidity in some securities / contracts as compared to active securities / contracts . As a result, your order may only be partially executed or may be executed with relatively greater price difference or may not be executed at all.
1.2.1 Buying/selling without intention of giving and/or taking delivery of a security, as part of a day trading strategy, may also result into losses because in such a situation, stocks may have to be sold/purchased at a low/high prices, compared to the expected price levels, so as not to have any obligation to deliver/receive a security.
1.3 Risk of Wider Spreads:
Spread refers to the difference in best buy price and best sell price. It represents the differential between the price of buying a security and immediately selling it or vice versa. Lower liquidity and higher volatility may result in wider than normal spreads for less liquid or illiquid securities / contracts. This in turn will hamper better price formation.
1.4 Risk-reducing orders:
Most Exchanges have a facility for investors to place �limit orders�, �stop loss orders� etc. The placing of such orders (e.g., �stop loss� orders, or �limit� orders) which are intended to limit losses to certain amounts may not be effective many a time because rapid movement in market conditions may make it impossible to execute such orders.
1.4.1 A �market� order will be executed promptly, subject to availability of orders on
opposite side, without regard to price and that, while the customer may receive a prompt execution of a �market� order, the execution may be at available prices of outstanding orders, which satisfy the order quantity, on price time priority. It may be understood that these prices may be significantly different from the last traded price or the best price in that security.
1.4.2 A �limit� order will be executed only at the �limit� price specified for the order or a better price. However, while the customer receives price protection, there is a possibility that the order may not be executed at all.
1.4.3 A stop loss order is generally placed �away� from the current price of a stock / contract, and such order gets activated if and when the stock / contract reaches, or trades through, the stop price. Sell stop orders are entered ordinarily below the current price, and buy stop orders are entered ordinarily above the current price. When the stock reaches the pre-determined price, or trades through such price, the stop loss order converts to a market/limit order and is executed at the limit or better. There is no assurance therefore that the limit order will be executable since a stock / contract might penetrate the pre-determined price, in which case, the risk of such order not getting executed arises, just as with a regular limit order.
1.5 Risk of News Announcements:
Issuers make news announcements that may impact the price of the securities / contracts. These announcements may occur during trading, and when combined with lower liquidity and higher volatility, may suddenly cause an unexpected positive or negative movement in the price of the security / contract.
1.6 Risk of Rumours:
Rumours about companies at times float in the market through word of mouth, newspapers, websites or news agencies, etc. The investors should be wary of and should desist from acting on rumours.
1.7 System Risk:
High volume trading will frequently occur at the market opening and before market close. Such high volumes may also occur at any point in the day. These may cause delays in order execution or confirmation.
1.7.1 During periods of volatility, on account of market participants continuously modifying their order quantity or prices or placing fresh orders, there may be delays in order execution and its confirmations.
1.7.2 Under certain market conditions, it may be difficult or impossible to liquidate a position in the market at a reasonable price or at all, when there are no outstanding orders either on the buy side or the sell side, or if trading is halted in a security due to any action on account of unusual trading activity or stock hitting circuit filters or for any other reason.
1.8 System/Network Congestion:
Trading on NSE is in electronic mode, based on satellite/leased line based communications, combination of technologies and computer systems to place and route orders. Thus, there exists a possibility of communication failure or system problems or slow or delayed response from system or trading halt, or any such other problem/glitch whereby not being able to establish access to the trading system/network, which may be beyond the control of and may result in delay in processing or not processing buy or sell orders either in part or in full. You are cautioned to note that although these problems may be temporary in nature, but when you have outstanding open positions or unexecuted orders, these represent a risk because of your obligations to settle all executed transactions.
2. GENERAL
2.1 For rights and obligations of the clients, please refer to Annexure-1 enclosed with this document.
2.2 The term �constituent� shall mean and include a client, a customer or an investor, who deals with a trading member for the purpose of acquiring and/or selling of securities through the mechanism provided by NSE.
2.3 The term �trading member� shall mean and include a member, a broker or a stock broker, who has been admitted as such by NSE and who holds a registration certificate as a stock broker from SEBI.
I/We hereby acknowledge that I/we have received and understood this risk disclosure statement.
ANNEXURE-1
INVESTORS� RIGHTS AND OBLIGATIONS:
1.1 You should familiarise yourself with the protection accorded to the money or other property you may deposit with your trading member, particularly in the event of a default in the stock market or the broking firm�s insolvency or bankruptcy.
1.1.1 Please ensure that you have a documentary proof of your having made deposit of such money or property with the trading member, stating towards which account such money or property deposited.
1.1.2 Further, it may be noted that the extent to which you may recover such money or property may be governed by the Bye-laws and Regulations of NSE and the scheme of the Investors� Protection Fund in force from time to time.
1.1.3 Any dispute with the trading member with respect to deposits, margin money, etc. and producing an appropriate proof thereof, shall be subject to arbitration as per the Rules, Byelaws/ Regulations of NSE or its Clearing Corporation.
1.2 Before you begin to trade, you should obtain a clear idea from your trading member of all brokerage, commissions, fees and other charges which will be levied on you for trading. These charges will affect your net cash inflow or outflow.
1.3 You should exercise due diligence and comply with the following requirements of the NSE and/or SEBI:
1.3.1 Please deal only with and through SEBI registered trading members who are members of the Stock Exchange and are enabled to trade on the Exchange. All SEBI registered trading members are given a registration no. which may be verified from SEBI. The details of all members of NSE and whether they are enabled to trade may be verified from NSE website (www.nseindia.com> Home > Members > Member Directory).
1.3.2 Demand any such information, details and documents from the trading member, for the purpose of verification, as you may find it necessary to satisfy yourself about his credentials.
1.3.3 Furnish all such details in full as are required by the trading member as required in “Know your client” form, which may also include details of PAN or Passport or Driving License or Voters Id, or Ration Card, trading account and depository account, as is available with the investor.
1.3.4 Execute a broker-client agreement in the form prescribed by SEBI and/or the Relevant Authority of NSE or its Clearing Corporation from time to time, because this may be useful as a proof of your dealing arrangements with the trading member.
1.3.5 Give any order for buy or sell of a security in writing or in such form or manner, as may be mutually agreed. Giving instructions in writing ensures that you have proof of your intent, in case of disputes with the trading member.
1.3.6 Ensure that a contract note is issued to you by the trading member which contains minute records of every transaction. Verify that the contract note contains details of order no., trade number, trade time, trade price, trade quantity, name of security, client code allotted to you and showing the brokerage separately. Contract notes are required to be given/sent by the trading member to the investors latest on the next working day of the trade. Contract note can be issued by the trading members either in electronic form using digital signature as required, or in hard copy. In case you do not receive a contract note on the next working day or at a mutually agreed time, please get in touch with the Investors Grievance Cell of NSE.
1.3.7 Facility of Trade Verification is available on NSE website (www.nse-india.com), where details of trade as mentioned in the contract note may be verified from the trade date upto five trading days. Where trade details on the website, do not tally with the details mentioned in the contract note, immediately get in touch with the Investors Grievance Cell of NSE.
1.3.8 Ensure that payment/delivery of securities against settlement is given to the concerned trading member within one working day prior to the date of pay-in announced by NSE or it�s Clearing Corporation. Payments should be made only by account payee cheque in favour of the firm/company of the trading member and a receipt or acknowledgement towards what such payment is made be obtained from the trading member. Delivery of securities is made to the pool account of the trading member rather than to the beneficiary account of the trading member.
1.3.9 In case pay-out of money and/or securities is not received on the next working day after date of pay-out announced by NSE or its Clearing Corporation, please follow-up with the concerned trading member for its release. In case pay-out is not released as above from the trading member within five working days, ensure that you lodge a complaint with the Investors� Grievance Cell of NSE.
1.3.10 Every Trading Member is required to send a complete ‘Statement of Accounts’, for both funds and securities settlement to each of its constituents, at such periodicity as may be prescribed by the NSE from time to time. You should report errors, if any, in the Statement immediately, but not later than 30 calendar days of receipt thereof, to the Trading Member. In case the error is not rectified or there is a dispute, ensure that you refer such matter to the Investors Grievance Cell of NSE.
1.3.11 In case of a complaint against a trading member/registered sub-broker, you should address the complaint to the Office as may be specified by NSE from time to time.
1.4 In case where a trading member surrenders his trading membership, NSE gives a public notice inviting claims, if any, from investors. In case of a claim, relating to “transactions executed on the trading system” of NSE, ensure that you lodge a claim with NSE/NSCCL within the stipulated period and with the supporting documents.
1.5 In case where a trading member is expelled from trading membership or declared a defaulter, NSE gives a public notice inviting claims, if any, from investors. In case of a claim, relating to “transactions executed on the trading system” of NSE, ensure that you lodge a claim with NSE within the stipulated period and with the supporting documents.
1.6 Claims against a defaulter/expelled member found to be valid as prescribed in the relevant Rules/ Bye-laws and the scheme under the Investors� Protection Fund (IPF) may be payable first out of the amount vested in the Committee for Settlement of Claims against Defaulters, on pro-rata basis if the amount is inadequate. The balance amount of claims, if any, to a maximum amount of Rs.10 lakhs per investor claim, per defaulter/expelled member may be payable subject to such claims being found payable under the scheme of the IPF.
Notes:
1. The term �constituent� shall mean and include a client, a customer or an investor, who deals with a trading member of NSE for the purpose of acquiring and / or selling of securities through the mechanism provided by NSE.
2. The term �trading member� shall mean and include a member or a broker or a stock broker, who has been admitted as such by NSE and who holds a registration certificate as a stock broker from SEBI.
Acceptance & acknowledgement of the enclosed Risk Disclosure Document is mandatory.
Derivatives (Futures & Options)
TERMS AND CONDITIONS GOVERNING TRADING IN FUTURES AND OPTIONS THROUGH SUMEDHA FISCAL SERVICES LIMITED
The following are the specific terms and conditions governing trading in Futures & Options by the Client through SUMEDHA FISCAL SERVICES LTD. In case the same are not acceptable, please do not trade in Futures & Options through SUMEDHA FISCAL SERVICES LTD. Acceptance of all the Terms and Conditions contained herein are a prerequisite for trading in Futures & Options through Sumedha Fiscal Services Ltd.
Definitions:
In these terms and conditions (hereinafter referred to as the �Terms and Conditions�), the following words and phrases have the meaning stated hereunder unless indicated otherwise:
�Account� shall mean the brokerage account of the Client with Sumedha Fiscal Services Limited.
“American Option” gives the holder of the option the right, but not the obligation, to buy or sell the underlying instrument on or before the expiry date.
“Calendar spread” means risk offsetting positions in contracts expiring on different dates in the same underlying.
“Call” is the Right but not the obligation to purchase the underlying Asset at the specified strike price by paying a premium. The Buyer of a Call has the Right but not the Obligation to Purchase the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Call has the obligation of selling the Underlying Asset at the specified Strike price.
“Client” shall mean any person who has executed the Client Agreement with Sumedha Fiscal Services Ltd and executed a Power of Attorney in favour of Sumedha Fiscal Services and has an existing and valid Account.
“European option” gives the holder of the option the right, but not the obligation, to buy or sell the underlying instrument only on the expiry date. This means that the option cannot be exercised early. Settlement in European Option is based on a particular strike price at expiration.
“Facility” shall mean the facility offered by Sumedha Fiscal Services to enable the Client to trade in Futures and Options against the margin, which may be in form of cash or securities, as a security to meet Client�s obligations arising from Transactions in Futures and Options.
�Initial margin� means the amount of margin (either in the form of cash or eligible securities) required by Sumedha Fiscal Services Ltd to be deposited with it the Client before undertaking Transactions in Futures and Options.
�Limit� means the amount (primarily arising from the funds / securities allocated or furnished) available with the Client to submit as Margin required against positions that the Client has already taken or proposes to take.
�Margin� is the security offered/provided by the Client, whether in form of cash or securities, for due settlement of all the obligations of the Client arising out of or in connection with the Transactions.
�Minimum Margin� is the margin amount that the Client is required to maintain with Sumedha Fiscal Services Ltd at all times to keep the clients positions in Futures and Options intact and without getting it squared off.
�Positions� are long or short positions in any Transactions.
“Premium” is the down payment that the Buyer of Call or Put is required to make for entering into the Options Transaction.
“Put” is the Right but not the obligation to sell the underlying Asset at the specified strike price by paying a premium. The Buyer of a Put has the Right but not the Obligation to Sell the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Put has the obligation of buying the Underlying Asset at the specified Strike price.
“Strike Price” is the price at which the underlying asset is agreed to be bought or sold.
�Transactions� is conduct of Futures or Options trading by the Client through the website.
“Underlying” is an index or stock enabled for trading on Futures /Options.
�In-the-money�: A Call Option is said to be “In-the-Money” if the strike price is less than the market price of the underlying stock. A Put Option is In-The-Money when the strike price is greater than the market price.
�Out-of-the-Money�: A Call Option is said to be “Out-of-the-Money” if the strike price is greater than the market price of the underlying stock. A Put option is Out-of-Money if the strike price is less than the market price.
“Website” refers to the website at the URL www.sumedhafiscal.com.
� The singular includes the plural (and vice versa).
� The index to and the headings in these Terms and Conditions are inserted for convenience of reference only and are to be ignored in construing and interpreting these Terms and Conditions.
� Reference to the words �include� or �including� shall be construed without limitation.
� Reference to a gender shall include references to the female, male and neuter genders.
Applicability:
These Terms and Conditions, along with the Client Agreement and the Power of Attorney executed by the Client in favour of Sumedha Fiscal Services Ltd form the contract between the Client and Sumedha Fiscal Services Ltd for availing of the Facility. Nothing contained herein shall be construed as derogatory to the terms of the Client Agreement and the Power of Attorney executed by the Client. By availing of the Facility, the Client acknowledges as having read, understood and accepted these Terms and Conditions.
Terms & Conditions pertaining to trading in Options:
The Client agrees that Sumedha Fiscal Services Ltd may require the Client to provide such margin (in such form and manner as acceptable to Sumedha Fiscal Services Ltd) depending on the Stock and market volatility on different contracts as it deems fit in its sole discretion as necessary for Risk mitigation. This margin requirement may be more than the margin prescribed by the Stock Exchange. The margin may be taken in cash or in form of securities as may be acceptable to Sumedha Fiscal Services Ltd. In event the Client offers securities as margin to Sumedha Fiscal Services Ltd., then the Terms and conditions as hereunder shall apply.
The Client agrees that Sumedha Fiscal Services Ltd. may, in its sole discretion, change the margin requirement on Transactions where the Client has taken or proposes to take a position, depending on its own risk mitigation measures and without intimating or consulting the Client.
In case of upward revision of the margin requirement, the Client agrees to allocate additional margin (in form of cash or securities as may be acceptable to Sumedha Fiscal Services Ltd.) to continue with open position taken in connection with the Transaction. The Client agrees that Sumedha Fiscal Services Ltd. shall have the discretion to select stocks that will be enabled for trading in the Options.
In-the-Money or Out-of-Money would be considered while calculating the Margin requirement on Sell orders. In case of In-the-Money, the seller of the option would be required to bring in additional Margin based on the difference between Current market price (CMP) and the Strike price in case of Call, and difference between Strike price and the CMP in case of Put. In case of Out of money, the seller of the Option may be given the benefit and may be permitted to provide lesser Margin depending upon the difference between Strike price and the CMP in case of Call and difference between CMP and the Strike price in case of Put. The Margin so arrived at shall be compared with the Short Option Margin Percentage (SOMC) and the higher of the two percentages shall be charged.
The Client agrees that Sumedha Fiscal Services Ltd. may, in its sole discretion, require the Client to provide additional / further margin depending upon the Client�s positions, in form and manner acceptable to Sumedha Fiscal Services Ltd. If the limit is not sufficient to meet the demand for additional Margin, Sumedha Fiscal Services Ltd. may close out any or all open positions. Sumedha Fiscal Services Ltd. shall not be required to make a margin call or otherwise inform the Client that the margin as furnished by the Client has fallen below the required level and it shall be the responsibility of the Client to regularly monitor and review the Margin availability and furnish the additional Margin to Sumedha Fiscal Services Ltd. Sumedha Fiscal Services Ltd. has the right to close out the open position at any time (without consulting or notifying the Client) in case the Client does not satisfy the additional margin requirements. The Client undertakes to maintain sufficient free limit to provide for additional margin as and when required by Sumedha Fiscal Services Ltd.
Exercise: In case of an American option, the Client can place an exercise request up to the Open (Call/Put) buy position anytime except on the last date of the contract. The Client may place an exercise request for less than the open positions in market lots. The exercise request can be placed only at specified time intervals when the exercise market is open. Exercise request cannot be placed on the last day of the Contract. On the Expiry day of the Contract, the exchange would automatically exercise the (Call/Put) Buy position in case the Position is In-the-Money. In case of exercise request placed by the Client or exercised by the Stock Exchange, the exercise request is accepted only if the Position is In-the-Money. The exercised request is reduced from the open positions in the Marginable sell order position. Hence the sell order position would be subject to Margin requirement, if the quantity of sell order exceeds the difference between the buy position and the exercise request quantity. If the Exercise Request is not accepted by the exchange at the end of the day, the Exercise Request is marked as rejected at the end of the day, so that the Client can place a fresh Exercise Request the next day.
Assignment: In case the Client has a Sell position, the Contract may be assigned to the Client and in such an event the Client undertakes to Buy the Underlying in case of Put and sell the Underlying in case of Call. However, if the Contracts are settled in cash, the Client would have to pay or receive the cash in case of an assignment. The Client understands that there can be part Assignment as may be decided by the Stock Exchange in its sole discretion.
Mark-to-Market process: In case of Short Positions taken by the Client i.e. the Client is the Seller of a Call or Put, Mark to Market process (MTM) will be run on a regular basis. As soon as the Client places an order, which results in a position, a Trigger price would be indicated to the Client. Whenever the Underlying price of the Shares goes above the Trigger Price in case of Call, the Contract would be in the MTM loop. In such event, additional Margin shall be re-calculated based on the increase in price and if the Limit is found to be insufficient or the Client fails to make available the additional Margin, then the orders in the same contract shall be cancelled. Sumedha Fiscal Services Ltd. may, at its sole discretion, square off the position taken by the Client.
As soon as the Client places a Sell Put order, which results in a position, a Trigger price would be indicated to the Client. Whenever the Underlying price of the shares goes below the Trigger price in case of Sell Put, the Contract would be in the MTM loop. In such event, additional Margin shall be re-calculated based on the decrease in price and if the Limit is found to be insufficient or the Client fails to make available the additional Margin, then the orders in the same contract shall be cancelled. Sumedha Fiscal Services Ltd. may, at its sole discretion, square off the position taken by the Client.
If the Client does not square off the transaction till the last day of the contract, the position will be marked as closed off and the same cannot be exercised or assigned.
Brokerage on Options Transactions shall be calculated as a percentage of the Strike price plus the premium of the order value.
Terms & Conditions pertaining to trading in Futures:
The Client agrees that the Client�s positions are continuously monitored and the Client agrees to provide Margin (including additional Margin) as may be determined by Sumedha Fiscal Services Ltd. from time to time. If the available Limit is not sufficient to meet the demand for additional Margin, Sumedha Fiscal Services Ltd. may close out the open position taken by the Client and the Client shall be solely responsible for any losses arising out on account of the same. Sumedha Fiscal Services Ltd. shall not be liable for making a demand for Margin or otherwise inform the Client that the Margin has fallen below the required level and it shall be the responsibility of the Client to regularly monitor and review the Margin availability and furnish the additional Margin to Sumedha Fiscal Services Ltd. Sumedha Fiscal Services Ltd. reserves the right to close out the open position at any time (without consulting the Client) in case the Client does not satisfy the additional Margin requirements. The Client shall maintain sufficient Limit to provide Margin as and when required by Sumedha Fiscal Services Ltd.
The Client agrees that Sumedha Fiscal Services Ltd. shall have the discretion to select contracts that will be enabled for trading in Futures and the individual margin percentage, both Minimum margin and Initial margin, in the futures segment. The Margin may be taken in cash or in form of securities as may be acceptable to Sumedha Fiscal Services Ltd. In event the Client offers securities as margin, then the Terms and conditions as hereunder shall apply.
The Client agrees that in case of an order in Futures, initially, Margin shall be blocked at the applicable Margin requirement of the order value. For market orders, margin shall be blocked considering the order price as the last traded price of the contract. On execution of the order, the same shall be suitably adjusted as per the actual execution price of the market order.
Margin requirement may be changed by Sumedha Fiscal Services Ltd. during the life of the contract. If due to the increased volatility in the prices, the margin requirement may be increased and in such event the Client undertakes to allocate additional funds/securities to continue with open position. If such Margin requirement is not met, the contract may come in MTM loop and may be squared off by Sumedha Fiscal Services Ltd. due to insufficient Margin. The Client undertakes to maintain sufficient Limit to safeguard the open position from being squared off or pending orders cancelled.
The Client agrees that Margin is blocked only on those new future orders, which may result into increased risk exposure. For calculating the margin at order level, values of all buy orders and sell orders (in the same underlying-group as may be determined by Sumedha Fiscal Services Ltd.) is arrived at. Margin is levied on the higher of two i.e. if buy order value is higher than sell order value, only buy orders will require Margin being furnished and vice versa.
Spread position: Spread position would attract Spread Initial Margin Percentage (SIM) and Spread Minimum Margin Percentage (SMM) in connection with margin calculation instead of Initial Margin Percentage and Minimum Margin Percentage. Spread position value is calculated by multiplying the weighted average price of position in far month contract and spread position quantity. Spread margin percentage is then applied to spread position value to arrive at spread margin. Sumedha Fiscal Services Ltd. shall in its sole discretion, determine the contracts which can form spread positions against each other.
Margin is blocked only on orders that result in an increased Risk exposure. Margin may not be recovered from an order, which is cover in nature. If a Position of opposite nature is present then the Order is reduced by the opposite position, if the opposite position is greater than the order, then the order may not require Margin. However, Sumedha Fiscal Services Ltd. shall have the sole discretion to determine the Margin Requirement.
Available margin: Available margin is calculated by deducting MTM loss from Margin blocked with respect to a position. When the available margin is below the Minimum Margin required, Margin required on executed position is re-calculated by taking Current Market Price (CMP) of respective position and Initial Margin Percentage and spread margin Percentage, as the case may be. Available Margin is then compared with the required Margin and amount for additional Margin requirement is arrived at.
When the Intra-day MTM process is run and if it is observed that the available Margin has fallen below the Minimum Margin required, Sumedha Fiscal Services Ltd. would block additional Margin required out of the Buying power available. In case Buying power is not sufficient to meet the additional Margin requirements then Sumedha Fiscal Services Ltd. may place a square off order at market rate to close the position. However, before placing the square off order all pending futures orders in that underlying-group (contracts having same underlying and recognized in the same group for spread recognition at the discretion of Sumedha Fiscal Services Ltd.) may be cancelled by Sumedha Fiscal Services Ltd.
The Client hereby undertakes to allocate additional Margin, suo moto, on any open position, to make available sufficient Margin against the same in order to avoid square off by Sumedha Fiscal Services Ltd. due to insufficient Margin.
The Client agrees that in case of insufficient Buying power, to safeguard its interest Sumedha Fiscal Services Ltd. may block and debit funds lying in Client�s Trading Account and /or debit securities lying in Client�s demat account integrated with the Account towards dues recoverable from the client.
In case of profit on a future position or where the available Margin is in excess of the Margin required, the Margin in excess of required Margin (in profitable position) may be released when Sumedha Fiscal Services Ltd. runs its End of Day (EOD) MTM process or when the Client squares off the open position completely before EOD.
Every day the settlement of open futures position will take place at the closing price of the day. In case of profit at EOD MTM Process run, Buying power shall be increased by the amount of profit and in case of loss; Buying power shall be reduced to that extent. Next day the position would be carried forward at the previous trading day closing price at which last EOD MTM Process was run. Closing price for all the contracts is provided by the exchange at the end of the day. Margin is re-calculated at the closing price at which EOD MTM process is run and differential Margin is blocked or released, as the case may be. For Margin calculation, the specified Initial Margin Percentage and specified spread margin Percentage is taken into consideration.
Due to daily MTM and pay-in/pay-out, Buying power may become lesser over a period of time and because of the same, open position may fall in MTM loop and may get squared off unless the Client provides fresh Buying power. Pay-in amount shall be debited from the Client�s Trading account (first from the amount allocated for the Transactions and then from the free unallocated balance) and pay-out amount shall be credited to the Client�s Trading Account.
All MTM losses will be recovered by Sumedha Fiscal Services Ltd. on a daily basis by debiting the clients trading account.
Split of Contract: In case of contracts which fall under Spread Position, four (4) calendar days (or such other number of days as determined by Sumedha Fiscal Services Ltd. from time to time) prior to the expiry of a contract, open position of that contract would be taken out of Spread Position and subjected to normal Initial Margin requirement. Position in such separated contracts would be shown separately. Buying power would be reduced appropriately to apply Initial Margin on near month contract. If Buying power is insufficient for application towards the Initial Margin requirement, the Margin available in a group from which the near month contract was moved will also be utilized to make good the short fall. After moving the near month contract from the existing group to separate group, Margin requirement for the existing group will be re-calculated and Buying power would be reduced appropriately.
In case the contract remains open till the contract expires, Sumedha Fiscal Services Ltd. as well as the Exchange would expire the position on the last day of contract after running EOD MTM Process and the position would be closed at the closing price of the spot (equity) market. Margin blocked on such expired position will also be released and the Buying power would be appropriately increased after adjusting profit/loss on close out.
Brokerage shall be calculated as a percentage of the order value.
Margin Requirement:
The Client agrees that Sumedha Fiscal Services Ltd. may at its sole discretion, change the margin requirement on the Transactions, in which the Client has taken or proposes to take positions. In case of upward revision of the margin requirement, the Client agrees to allocate additional funds/securities as margin to continue with open positions taken in connection with the Transactions.
Margin Offered In Form of Securities by The Client:
On acceptance of these terms and conditions, the Client may offer securities as Margin to meet margin requirement and for due performance of the Client�s obligations in conduct of Transactions by the Client.
Such margin may be in the form of demat securities as determined by Sumedha Fiscal Services Ltd. from time to time for the due performance and fulfillment by the Client of his/her/its engagements, operations, commitments, obligations or liabilities in connection with the Transactions conducted by the Client, including repayment of any amounts due by the Client to Sumedha Fiscal Services Ltd. or any third party arising out of or incidental to the Transactions. Such securities offered as Margin by the Client are hereinafter referred to as �Margin Securities�.
Sumedha Fiscal Services Ltd. shall have the sole discretion to accept or reject any securities offered as margin by the Client under this Facility or require the Client to furnish any additional securities as margin.
The Client, if so determined by Sumedha Fiscal Services Ltd., shall place the Margin Securities at the absolute possession/ disposition of Sumedha Fiscal Services Ltd. or such custodian/depository participant/Clearing Member as may be determined by Sumedha Fiscal Services Ltd. at its sole discretion and such possession/disposition shall not be disputed by the Client. Provided however that the Client may be permitted to have access to the Margin Securities in the manner and subject to such terms and conditions as determined by Sumedha Fiscal Services Ltd. from time to time and provided further that the Client confirms, affirms and covenants with Sumedha Fiscal Services Ltd. that the Client shall do all such acts and things, sign such documents and pay and incur such costs, debts and expenses as may be necessary in respect of the possession/ disposition.
Margin Securities:
The Margin Securities would constitute the security towards due performance of the Client�s obligations, commitments, operations, obligations and liabilities arising out of or incidental to any Transactions made, executed, undertaken, carried out or entered into by the Client.
The Client undertakes that the Margin Securities shall be owned by the Client and shall be free of any charge, lien or other encumbrances at the time of offering the same towards margin to Sumedha Fiscal Services Ltd.
The Client agrees that the Client shall create furnish additional Margin Securities as may be required by Sumedha Fiscal Services Ltd. from time to time.
The Client agrees that the Client shall not without Sumedha’s prior written permission create any charge, lien or encumbrance of any kind over the Margin Securities offered to Sumedha Fiscal Services Ltd. and further that the Client shall not do or allow anything to be done that may prejudice the interest of Sumedha Fiscal Services Ltd. in respect of the Margin Securities while the Client remains liable to Sumedha Fiscal Services Ltd., in any manner whatsoever, without the prior written permission of Sumedha Fiscal Services Ltd.
Power of Attorney:
The Client agrees and acknowledges that pursuant to the Power of Attorney executed by the Client in favour of Sumedha Fiscal Services Ltd., Sumedha Fiscal Services Ltd. shall be entitled to submit necessary documents on behalf of the Client to Sumedha acting as the Depository Participant for enabling the Depository to mark a pledge in favour of Sumedha Fiscal Services Ltd. in respect of the Margin Securities and also submit further documents on behalf of the Client to request the Depository to remove the pledge created with in respect of the Margin Securities.
Sumedha Fiscal Services Ltd. shall also be entitled to give such instructions to Sumedha acting as the Depository Participant to block/mark a lien on the Margin Securities offered by the Client and upon such instructions the Client shall not be able to deal or trade in such Margin Securities without consent of Sumedha Fiscal Services Ltd.
Enforcement of Security:
If in the opinion of Sumedha Fiscal Services Ltd., the Client has failed to perform and/or failed to fulfill any of its engagements, commitments, operations, obligations or liabilities as a Client of Sumedha Fiscal Services Ltd. including for any sums being due by him to Sumedha Fiscal Services Ltd. or to any other party arising out of or incidental to any Transactions made, executed, undertaken, carried out or entered into by it or in terms of regulations, laws, rules governing Sumedha Fiscal Services Ltd. or the Client in this behalf, then the Client agrees that Sumedha Fiscal Services Ltd. without giving any notice to the Client, shall be empowered/entitled to invoke pledge, sell, dispose of or otherwise effect any transfer of any or all of the Margin Securities in such manner and subject to such terms and conditions as it may deem fit and that the money realized, if any, from such sale/disposal/transfer subject to brokerage payable to Sumedha Fiscal Services Ltd. for such sale/ disposal/or other transfer shall be utilized/disbursed by Sumedha Fiscal Services Ltd. in such manner and subject to terms and conditions as it may deem fit. Further the Client shall do all such things, deeds, acts and execute all such documents as are necessary to enable Sumedha Fiscal Services Ltd. to effect such sale/disposal/ transfer. All decisions by Sumedha Fiscal Services Ltd. in respect of the obligations or liabilities or commitments of the Client and the amount claimed in respect thereof shall be binding on the Client. The Client agrees that Sumedha Fiscal Services Ltd. shall not be under any liability whatsoever to the Client or any other person for any loss, damage, expenses, costs etc, either actual or notional, consequent to such sale/disposal/ transfer.
If the total amounts realized from such sale/disposal/transfer is insufficient to fulfill the Client�s engagements, commitments, operations, obligations or liabilities in entirety, the Client shall, forthwith and without demur, upon being requested by Sumedha Fiscal Services Ltd., furnish the balance amount together with interest at such rate as decided by Sumedha Fiscal Services Ltd. and for costs and expenses from time to time. Sumedha Fiscal Services Ltd. shall also have the right to sell/dispose/ transfer any other securities of the Client, at the cost of the Client and without intimation to the Client.
The Margin Securities shall be at the disposal of Sumedha Fiscal Services Ltd. and remain available in respect of the obligations, liabilities or commitments of the Client and may be utilized in the discretion of Sumedha Fiscal Services Ltd.
The Client agrees that Sumedha Fiscal Services Ltd. shall be entitled to sell, pledge, deal with or otherwise transfer the Margin Securities to any third party, including National Securities Clearing Corporation Limited, and declare to the third party that all the Margin Securities are being provided to such parties as securities owned by Sumedha Fiscal Services Ltd. and being the unencumbered, absolute and disposable property of Sumedha Fiscal Services Ltd. and free from any prior charge, lien or encumbrance, and to execute transfer documents and/or any other necessary documents, wherever applicable or other endorsements for this purpose. Sumedha Fiscal Services Ltd. shall be entitled to receive from the Client all costs, charges, expenses incurred by Sumedha Fiscal Services Ltd. for the aforesaid purposes as well as any consent, ratification or the like which shall not be withheld or delayed for any reason and in case of failure of which Sumedha Fiscal Services Ltd. is hereby permitted and authorized to provide the same for and on behalf of the Client.
Further that it is hereby agreed that benefits such as dividends, bonus, redemption benefits, interest accruing on the Margin Securities during the period of transfer except post invocation of the pledge in favour of Sumedha Fiscal Services Ltd. or selling or disposing or otherwise effecting any transfer of the Margin Securities above shall accrue to the Client and the Client shall be entitled to receive the same from Sumedha Fiscal Services Ltd.
The Client agrees the Margin Securities shall continue to be available to Sumedha Fiscal Services Ltd. under the facility and the same shall not be affected in any manner whatsoever by any action by Sumedha Fiscal Services Ltd. against the Client including suspension or termination of any of the Account with Sumedha Fiscal Services Ltd. or of the facility.
The Client agrees to execute such further documents whether of any nature whatsoever as may be required by Sumedha Fiscal Services Ltd. for the purpose of giving effect to the provisions hereof.
Representations and Warranties:
The Client makes the following representations, declarations, warranties and agreements and confirms that they are, true, correct, valid and subsisting in every respect as of the date of availing of the Facility:
(i) All acts, conditions and things required to be done, fulfilled or performed, and all authorizations required or essential for availing of the Facility and /or for the performance of the Client�s obligations in terms hereof have been done, fulfilled, obtained, effected and performed and are in full force and effect and no such authorization has been, or is threatened to be, revoked or cancelled;
(ii) The Client is in compliance in all respects with all laws and regulations for availing of the Facility and conducting transactions in securities pursuant to the same. There are no circumstances that may at any time prevent or interfere with such compliance.
(iii) The Client has complied in all material respects with all taxation laws in all jurisdictions in which it is subject to taxation and has filed all tax returns and paid all taxes and statutory dues due and payable by it and, to the extent any taxes are not due, has established reserves that are adequate for the payment of those taxes and statutory dues. The Client shall continue to comply with all taxation laws as applicable.
(iv) Except to the extent disclosed to Sumedha Fiscal Services Ltd., the Client has not taken any action and no other steps have been taken or legal proceedings started by or against it in any court of law / other authorities for its insolvency, bankruptcy, winding up, dissolution, administration or re-organization or for the appointment of a receiver, administrator, administrative receiver, trustee or similar officer of the Client or of any or all if its assets.
(v) All amounts payable by the Client in respect of the Facility will be made free and clear of and without deduction / withholding for or on account of any tax or levy.
Indemnity:
The Client shall, at its own expense, indemnify, defend and hold harmless Sumedha Fiscal Services Ltd. and its officers, directors, employees, representatives, agents respective directors, Affiliates and assigns from and against any and all liability (including but not limited to liabilities, judgments, damages, losses, claims, costs and expenses, including attorneys fees and expenses) any other loss that may occur, arising from or relating to:
a) a breach, non-performance or inadequate performance by the Client of any of the terms, conditions, covenants, representations, undertakings, obligations or warranties hereunder; or
b) the acts, errors, representations, misrepresentations, misconduct or negligence of the Client, its employees and agents in performance of its obligations hereunder.
Limitation of Liability
Under no circumstances shall Sumedha Fiscal Services Ltd. be liable to the Client for indirect, incidental, consequential, special or exemplary damages arising from or in connection with the Facility provided to the Client, even if Sumedha Fiscal Services Ltd. have been advised of the possibility of such damages, such as, but not limited to, loss of revenue or anticipated profits or lost business.
Force Majeure:
Sumedha Fiscal Services Ltd. shall not be liable for any failure to perform any of its obligations under this Agreement if the performance is prevented, hindered or delayed by a Force Majeure event (defined below) and in such case its obligations shall be suspended for so long as the Force Majeure Event continues (provided that this shall not prevent the accrual of interest on a principal amount which would have been payable but for this provision).
�Force Majeure Event� means any event due to any cause beyond the reasonable control of Sumedha Fiscal Services Ltd., including, without limitation, unavailability of any communication system, equipment or software malfunction, accident, power failure, breakdown or interruption or delay or any technical flaw in the Website or computer systems or communication lines or equipment, sabotage, fire, flood, explosion, acts of God, civil commotion, strikes or industrial action of any kind, riots, insurrection, war or acts of government.
Waiver:
No delay in exercising or omission to exercise any right, power or remedy accruing to Sumedha Fiscal Services Ltd. upon any default by the Client or otherwise under this Agreement or the Client Agreement shall impair any such right, power or remedy or shall be construed to be a waiver thereof or any acquiescence in such default, nor shall the action or inaction of Sumedha Fiscal Services Ltd. in respect of any default or any acquiescence by it in any default, affect or impair any right, power or remedy of Sumedha Fiscal Services Ltd. in respect of any other default. The rights of Sumedha Fiscal Services Ltd. under these Terms and Conditions and the Client Agreement are cumulative and not exclusive of their rights under the general law and may be waived only in writing and specifically and at the sole discretion of Sumedha Fiscal Services Ltd.
Notices:
All notices or other communications to be given by the Client under or in connection with the Facility shall be given in writing at the office of Sumedha Fiscal Services Ltd. Provided, however, that no notice or communication to Sumedha Fiscal Services Ltd. shall be effective unless actually received and acknowledged by Sumedha Fiscal Services Ltd.
The Client agrees that all notices and communications to be sent by Sumedha Fiscal Services Ltd. under or in connection with the Facility may be given at the address of the Client as per the records of Sumedha Fiscal Services Ltd. or by sending an email or posting the notice or communication on the Website as may be deemed expedient by Sumedha Fiscal Services Ltd..
Suspension or Withdrawal of the Facility:
Sumedha Fiscal Services Ltd., at its sole discretion, reserves the right to either temporarily or permanently, withdraw or suspend the Facility at any time without giving any notice or assigning any reason for the same, whether in respect of one or more Clients. In case of a temporary withdrawal, the privileges may be reinstated by Sumedha Fiscal Services Ltd. at its sole discretion.
Amendment to the Terms:
Sumedha Fiscal Services Ltd. has the absolute discretion to amend or supplement any of the terms and conditions at any time and that Sumedha Fiscal Services Ltd. will endeavor to give prior notice of the same by email or by displaying the amended Terms and Conditions on the Website or in any manner, it may deem fit, and such amended terms and conditions will thereupon apply to and be binding on the Client.
Governing Law:
Any legal action or proceedings arising out of these terms and conditions shall be brought in the courts or tribunals at Mumbai in India and the Client irrevocably submits to the exclusive jurisdiction of such courts and tribunals. Sumedha Fiscal Services Ltd. may, however, in its absolute discretion commence any legal action or proceedings arising out of these terms and conditions in any other court, tribunal or other appropriate forum, and the Client hereby consents to that jurisdiction.
Severability:
Any provision of these terms and conditions which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of prohibition or unenforceability but shall not invalidate the remaining provisions of these terms and conditions or affect such provision in any other jurisdiction.
Non-Transferability:
The Facility is not assignable/transferable under any circumstance and shall be used only by the Client.
Disclaimer:
Sumedha Fiscal Services Ltd. makes no express or implied warranty with respect to the Website including, without limitation, any warranties of non-infringement of third party rights, title, merchantability, satisfactory quality or fitness for a particular purpose.
Sumedha Fiscal Services Ltd. makes no warranty that (i) the Facility will meet all the requirements of the Client, (ii) the Facility will be uninterrupted, timely, secure, or error-free, (iii) any errors in the Website will be corrected.
The Client shall not hold Sumedha Fiscal Services Ltd. responsible for any breakdown/interruption/delay/failure or any technical flaw in the Website, Internet or the related services provided by Internet service providers or other telecommunication service providers and / or any consequent delay or failure in completion of any request / instruction submitted by the Client.
I/WE have read and accepted all the above terms and conditions
Mutual Funds
Terms and Conditions For Online Investing in Mutual Funds.
These terms and conditions are in addition to and binding on the existing Power of Attorney and the Client Agreement that has been signed by you at the time of your becoming our client.
Definitions :
�Unit� shall mean the interest of an investor, which consists of one undivided share in the Net Assets of the Scheme.
�Net Asset Value (NAV)� of the Units of the Scheme will be computed by dividing the net assets of the Scheme by the number of Units outstanding on the valuation date.
�Purchase� shall mean subscription to the units of the various schemes of the Mutual Fund.
�Redemption� shall mean sale of the units of the various schemes of the Mutual Fund.
�Switch� shall mean an option to the investor to shift his existing investment in any of the schemes of the Mutual Fund to another scheme of the Mutual Fund.
�Systematic Investment Plan (SIP)� or �Automatic Investment Plan (AIP)� shall mean an option available to the investor for investing in a specified frequency of months in a specified scheme of the Mutual Fund for a constant sum of investment.
�Systematic Withdrawal Plan (SWP)� or �Automatic Withdrawal Plan (AWP)� shall mean a facility provided to the investor to withdraw a pre-determined amount in a specified frequency of months from a specified scheme of the Mutual Fund.
�Load� shall mean a charge, which the Asset Management Company (AMC) may collect on entry and/or exit from a scheme.
1.The client is requested to check up the personal and trading related details provided by him/her. Neither Sumedha nor any of the Mutual Funds chosen shall accept any liability which may arise as a consequence of the erroneous information provided by the client.
2.The units of the schemes shall be allotted, redeemed or switched, as the case may be, at the Net Asset Value (NAV) prevalent on the date of the application, if the application for purchase, redemption or switch is received by the Fund before the cut-off time as specified on the website and consistent with the terms of the Scheme.
3. Sumedha shall take all necessary action to ensure that the NAV allotted is the NAV applicable on the date of the transaction. However Sumedha shall not be liable for any loss that may arise to the client as a result of the correct NAV not being allotted to the client�s transactions on the website.
4. Any request falling due on a holiday would be processed on the next business day and respective NAV would be applicable as per the Mutual Fund�s offer document.
5. Sumedha or the concerned Mutual Fund or their respective registrars shall not entertain any offline transaction requests.
6. In the case of Automatic Investment Plan, in the absence of sufficient allocated funds, unallocated funds to the extent available shall also be utilised. In the absence of sufficient funds, both allocated and unallocated, no investment shall be made for that particular period.
7. For change of address or any personal details of the client, the client shall send a letter or fax to Sumedha signed by all the co-holders.
8. Sumedha shall not send a physical copy of the transaction statement or the accounts statement to the customer. The customer can view the same on the website.
9. The client service team of Sumedha shall handle all Mutual Fund related queries of the client.
10. The client undertakes to read all the relevant offer documents and terms and conditions of all schemes of all mutual funds offered through Sumedha, BEFORE entering into any transactions through Sumedha.
11.After the first purchase transaction, the client will not be permitted to transact for a period of 4 to 7 business days, depending upon the processing time of the Mutual Fund�s Registrar. Sumedha does not accept any liability for delay in processing time at the Mutual Fund�s or Registrar�s end.
12. It is explicitly stated herein that the Mutual Fund schemes offered online, have not been recommended by Sumedha, nor have been sponsored by Sumedha Fiscal Services Ltd., or its affiliates or its sponsors.
13.Neither Sumedha, nor any of the Mutual Funds shall be liable for any failure to perform its obligations, to the extent that such performance has been delayed, hindered or prevented by systems failures, network errors, delay or loss of data due to the above and in circumstances of acts of God, floods, epidemics, quarantine, riot or civil commotion and war.
14. Sumedha shall provide its services on a best effort basis. However Sumedha shall not be liable for failure of the system or for any loss, damage or other costs arising in any way out of:
a) System failure including failure of ancillary or associated systems, or fluctuation of power, or other environmental conditions; or
b) Accident, transportation, neglect, misuse, errors, frauds of the clients or agents or any third party; or
c) Any fault in any attachments or associated equipment of the clients; or
d) Any incidental, special or consequential damages including without limitation of loss of profit. The client further agrees to indemnify Sumedha for any loss that may arise as a result of system failure, accident or any of the reasons mentioned above.
15. For all correspondences with Sumedha, the client shall quote his e-broking account no. � The Terms and Conditions set herein above may be modified by Sumedha without any prior notice to the client and the client�s continued usage of the services shall be deemed to be an acceptance of the modified terms.� I/we have gone through the offer document/key information memorandum before deciding to make this investment in the mutual fund scheme.
Acquire Now Sell Tomorrow (ANST)
‘Acquire now sell tomorrow’ hereinafter referred to as “ANST”, is a facility offered by Sumedha Fiscal Services Limited. (hereinafter referred to as Sumedha ) which allows the Client to sell the securities which the Client had purchased through Sumedha , before the same are credited to the Client�s demat account, and hence the Client need not wait to sell the securities till the actual credit of the purchased securities into his demat account.
ANST facility is offered to the Resident individual Indian clients of Sumedha . Notwithstanding the above, Sumedha reserves the right to refuse this facility to any Client or group of Clients at its sole discretion and without assigning any reason.
Sumedha shall decide upon the list of securities, which shall be eligible for this facility. This list would be subject to change at the sole discretion of Sumedha from time to time. Sumedha may also at its sole discretion decide to withdraw a particular security from the list without notice to the clients and without assigning any reasons whatsoever. Currently all S&P, CNX NIFTY and CNX NIFTY JUNIOR scrips are available under ANST facility.
Under ANST facility the quantity of securities available for sale shall be only such percentage of the quantity of securities bought by the Client, as may be permitted by Sumedha from time to time. Sumedha may at its sole discretion vary the percentage, if it deems fit, without notice to the clients and without assigning any reasons whatsoever and the Client will at all times be required to abide by such decision. The Client shall be permitted to sell the previously bought security under ANST within such number of days as prescribed by Sumedha Fiscal Services Ltd. from time to time. Securities bought on a particular day (i.e. day T) can be sold by the Client within the period commencing on T+1 day and ending on T + 2 day (or by an earlier day if so specified by Sumedha ). The Client will not be allowed to sell the securities on T + 3 day under this facility. The purchase and sale transactions of the securities under the ANST facility will be on the same Exchange i.e. securities purchased from NSE, wil be allowed to be sold only on the NSE, and not on the BSE. However in case of securities under no-delivery period, the T+1 day will start from the day on which the scrip comes out of no delivery.
Securities purchased by the Client which are pending to be credited to the client�s demat account can be viewed by the Client after logging in for trading on the �Security Projections� page of the Website and the Client may place order to sell the eligible securities upto the permitted percentage under the ANST facility by clicking on the ANST Sell Hyperlink. The client can see the maximum number of shares which can be sold under ANST under the column Maximum Sell Quantity Permitted against the corresponding settlement number. This is being calculated by Sumedha after considering the client�s buy position in the corresponding settlement and also on Sumedha �s internal risk profile of that particular stock. The rest of the details which are required to be filled up are similar to that of a normal sell order. On the placement of a ANST sell order, the order quantity is added to the existing blocked quantity, if any, and is shown as the blocked quantity in the security projections. The available quantity now gets reduced by the blocked quantity. The client can then place further ANST order/normal sell order for the available quantity. The brokerage rates will be the same as that are applicable for delivery trades.
Pursuant to the Client availing of this facility the securities bought by the client in one settlement shall be retained either partly or fully by Sumedha in its demat account for the purpose of meeting the pay in obligation of the client towards the securities sold by the client in the subsequent settlement(s).
In case there is a short delivery from the Exchange for the earlier buy transaction, then the client will also be giving short delivery for his sell transaction. The Exchange would either give delivery of shares bought earlier through market auction or shall closeout the buy transactions as per the Exchange Regulations. However, this would not help the client in meeting his sale delivery obligation already committed by him as even if he receives the shares bought earlier through auction settlement, by that time the securities pay-in date for his sell transaction would be over. In such case, the client will have to face auction proceedings against his sale transaction and will have to bear the auction losses, auction penalties, cost of funding and any other incidental charges etc. All costs and consequences of any auction arising out of such ANST sell transactions shall be fully borne by the client and Sumedha would not be held responsible for any such short delivery received by the client and the consequential impact thereof.
In case of short delivery, Sumedha will reduce the trading buying power of the client to the extent of the likely auction amount. On receiving the actual auction amount from the Exchange the buying power will be adjusted to reflect the same and the auction amount will be recovered from the customer. In order to recover any pending dues from the client pursuant to the client availing of the ANST facility, Sumedha may transfer any funds/securities pertaining to the client or may sell the client�s securities.
The use of this facility is entirely voluntary and the facility has to be used in accordance with the applicable rules/ regulations/ guidelines specified by the Securities and Exchange Board of India and other competent authorities from time to time. Sumedha disclaims all liability for any loss caused to the Client out of the purchase or sale of securities through use of this facility.
This facility is offered by Sumedha in accordance with the rules/regulations/ guidelines specified by the Securities and Exchange Board of India and other competent authorities from time to time pertaining to secondary market for securities. Sumedha reserves the rights to change these terms and conditions at any time in accordance with the regulations specified.
These Terms and Conditions will be applicable for all the ANST trades executed by the client through Sumedha .
I/We have read and accepted the above Terms and Conditions.
8% Savings (taxable) Bonds, 2003
TERMS AND CONDITIONS GOVERNING INVESTMENT IN 8% SAVINGS (TAXABLE) BONDS, 2003
The following terms and conditions relating to investment in 8% Savings Bond, 2003 (hereinafter referred to as �Savings Bond�) through Sumedha Fiscal Services Limited�s website located at the URL www.sumedhafiscal.com. The acceptance of all the Terms & Conditions mentioned herein as well as contained in the Client Agreement are a prerequisite for investing in Savings Bond through sumedhafiscal.com. In case the same are not acceptable, please do not use this facility.
1. Definitions:
�Standard Interest Date� shall mean the date on which interest is payable by the Government or the date on which interest falls due.
�Website� shall mean www.sumedhafiscal.com and other sites maintained by Sumedha Fiscal Services Ltd. (hereinafter referred to as “Sumedha “) to offer on-line investment and trading in various financial products to its present and prospective clients, through different media including but not limited to the Internet, IVR, Phone-2-Trade, WAP, physical outlets, kiosks etc.
�Value Date� shall mean the date on which Sumedha TRADING receives the funds from the Client, or on the Client�s behalf, for the purposes of investment in the particular scheme of Savings Bond irrespective of the date of transaction instruction.
2. The Client may purchase the Savings Bond using the facilities offered by Sumedha on the Website. The Client�s transaction instruction for an investment in any Savings Bond scheme shall, at all times, be subject to the same being processed by SUMEDHA TRADING and Sumedha .
3. The Client hereby expressly authorises and permits Sumedha to deal on the Client�s behalf with the issuer of Savings Bond and represent the Client for the purposes of grievance redressal, if required and wherever possible, as a holder of valid power of attorney executed in favour of Sumedha by the Client.
4. The Client hereby specifically confirms and affirms that the power of attorney as executed by the Client in favour of Sumedha entitles and authorises Sumedha to apply and deal in Savings Bond on Client’s behalf, and hereby authorises Sumedha to provide all necessary confirmations and representations to this effect, and the Client further agrees to execute or provide all further deeds, documents, instruments or confirmations, in such form, substance or manner, as desired to confirm and affirm the entitlement and authority to apply and deal in Savings Bond on Client�s behalf.
5. For the purpose of investing in Savings Bond on the Website, the Client shall select the appropriate Savings Bond scheme in which investment is to be made, and the transaction instruction may be provided electronically, telephonically or through such other facility as may be made available to the Client by Sumedha from time to time. Execution of a transaction instruction for a particular scheme of Savings Bond shall be contingent upon the availability of that particular scheme of Savings Bond at the time of investment. Sumedha , and /or any of its affiliates shall not be responsible for the non-availability of a particular scheme of Savings Bond at the time of Client placing an order for investment.
6. It shall be the Client�s responsibility to ensure that any information made available by the Client to Sumedha is true, accurate and free from error. Sumedha and/or their affiliates shall not be responsible for any loss or damage that may result from any erroneous information, or any omission in the information that is provided by the Client to Sumedha . Sumedha shall not accept any liability that may arise as a consequence of the incomplete /incorrect data or information provided by the Client and/or any error in the execution of an order due to such incomplete/incorrect data.
7. All orders placed by Sumedha on behalf of the Client shall be deemed to have been placed by the Client himself. Sumedha shall not be liable for any loss that may be incurred by the Client due to a third party placing orders regarding Savings Bond through the Website after getting hold of the Client’s personal identification details.
8. The Client agrees that any transaction instruction falling due on a public holiday or a Saturday would be processed on the next business day. In case the Client wishes to have the Value Date of the Savings Bond as the date of investment, the Client would have to ensure that the investment is made within the processing time for each business day as may be specified by Sumedha .
9. The Client agrees that the Savings Bond shall be held in the name of sole holder only and that no joint-holding is permitted for applying for Savings Bond through the Website.
10. The funds of the Client allocated for investment in Saving Bonds shall be transferred back to the Client�s trading account in case the Client�s instruction for application for Savings Bond is not executed for any reasons whatsoever. Sumedha would have the right to reject all or any of the investment instructions regarding Savings Bond received from the Client and the Client agrees that Sumedha shall not be held liable, in any manner whatsoever, for the same. No interest shall be payable by Sumedha on the amount refunded due to rejection for any reason whatsoever.
11. Sumedha would credit the interest proceeds net of Tax and/or any principal amounts directly to the trading account of the Client. The Client agrees that Sumedha would not be responsible for any delay in the crediting of these amounts to the Client. Tax would be deducted at Source while making payment of interest on the non-cumulative bonds from time to time and credited to the Government account as per the TDS rates applicable . In case of non-cumulative bonds, tax on the interest portion of the maturity value will be deducted at source at the time of payment of the maturity proceeds and credited to the Government account as per the TDS rates applicable
12. The Client hereby authorizes Sumedha to make available to Sumedha and/or the Government all such information as may be required to facilitate the Client�s transacting in Saving Bonds herein. Sumedha shall ensure that all correspondence or communication relating to the Savings Bond which is meant for the Client is either delivered to the Client or displayed on the Website.
13. The Client agrees to directly contact the nearest Sumedha branch in case he/she wishes to redeem/ transfer the Savings Bond. The client also agrees to duly discharge the Certificate of Holding at the time of redemption.
14. Sumedha shall be the sole contact point for the Client till the time the Certificate of Holding is received by the Client, for the purposes of transactions in Savings Bond conducted on the Website and Sumedha shall not be liable in any manner whatsoever in respect of any transactions or correspondence relating to the Savings Bond conducted directly between the Client and any third party.
15. The Client hereby agrees to hold Sumedha harmless against all actions, claims and liabilities that may be incurred by it due to any action initiated or threatened that may be initiated against it due to the performance of any of their obligations herein and agrees that Sumedha and/or its Affiliates shall not be liable for any loss suffered by the Client on account of non-execution of the order placed due to any reason whatsoever.
16. If the Client wishes to appoint or change a nominee, the Client will be required to download the applicable nomination form from the Website, and send the duly completed form to Sumedha .
17. In case of the Client Agreement entered inter-alia with Sumedha being terminated for any reason whatsoever, the Client shall intimate Sumedha in writing of the said termination and Sumedha shall take the necessary steps to ensure that the Client may transact directly in the Savings Bond. Subsequent to such termination, Sumedha shall have no further responsibility or obligation in respect of the Client�s transactions in the Savings Bond.
18. The Client shall cause to be sent by fax or hand delivery, to Sumedha a letter duly signed by the Client, intimating Sumedha of any changes in the address/ personal details of the Client. Such intimation through the Website in the prescribed manner shall also constitute effective notice of the same to Sumedha .
19. Sumedha does not undertake any responsibility to provide any additional benefits or products that are advertised and provided by Sumedha as a part of any promotional schemes. The same shall at all times be regulated by such terms and conditions as may be stipulated by Sumedha from time to time.
20. For all correspondences with Sumedha the Client shall be required to quote the Client�s e-broking account number.
21. The terms and conditions herein contained are subject otherwise to the terms and conditions of the Client Agreement.
22. All transactions in Savings Bond shall, at all times, be subject to the rules, regulations and conditions laid down by the Government of India, RBI or any other regulatory authority, from time to time governing the issue of Savings Bond.
23. The Client hereby declares that the Client has read, understood and accepted the contents of the terms and conditions contained herein and agrees and undertakes not to hold Sumedha and/ or their affiliates liable for any transaction instruction processed on the basis of information provided by the Client.
H.U.F. Declaration
(Only if applicant is Karta of HUF)
I, the First applicant, do solemnly affirm that I am the Karta of the Hindu Undivided Family in whose name this application for 8% SAVINGS (TAXABLE) BONDS, 2003 is being made And as such have full powers to sell, endorse, transfer or otherwise deal in 8% SAVINGS (TAXABLE) BONDS, 2003 standing in the name of the said HUF.
I hereby authorize Sumedha Fiscal Services Ltd. Limited to submit this declaration , duly certified by an official of Sumedha Fiscal Services Ltd. Limited, to Sumedha / RBI/ relevant authority on my behalf, as a holder of valid Power of Attorney executed in its favour by me as the Karta of the said HUF.
I/WE have read and accepted the above terms and conditions.
Initial Public Offering (IPOs)
Terms & Conditions for applying through Sumedha Fiscal Services Ltd. Limited in IPOs
Pursuant to I/we being the client of Sumedha Fiscal Services Ltd. (herewith referred to as Sumedha ) and the Power of Attorney executed by me/us in favour of Sumedha with respect to the same, and the applicable rights and obligations & the terms and conditions thereof, I/we instruct Sumedha (through the Website www.sumedhafiscal.com or Call Center) to make a Bid/Application (details being intimated separately to Sumedha or as already provided and available with Sumedha ) for application and subsequent allotment to me/us in any public issue offered online through www.sumedhafiscal.com, as per the following additional terms and conditions:
I/we hereby agree that only customers of Sumedha who are registered with it for online trading & investment transactions and who are in the category of Resident Indians or HUFs or Non- Resident Indians through their Non-PINS NRO account and Non-PINS NRE account, are allowed to bid/apply for the Issue through Sumedha . Other categories of registered customers of Sumedha may be allowed to apply for the issue through Sumedha only at the sole discretion of Sumedha .
I/we hereby confirm that I/we have read and understood the Company�s prospectus, Form 2A and other relevant documents issued in this regard, the Issue Bid-cum-application form and the Risk factors and voluntarily instruct Sumedha to make the above Bid/ application on my/our behalf. I/we hereby authorize Sumedha to do all such acts, deeds and things, as may be necessary for or incidental to make the above Bid/Application.
I/we hereby authorize Sumedha to collect on my/our behalf the refund amount, if any, from the Company/registrar and subsequently credit the same to my/our trading account.
I/we hereby agree that I/we will abide by all the terms and conditions of the Issue.
I/we hereby agree that I/we will abide by all the terms and conditions of the Issue. I/we hereby agree that I/we shall not make multiple application(s) for the Issue.
I/we hereby agree that Sumedha shall debit my/our trading account maintained for the purpose of executing transactions through sumedhafiscal.com, with the full amount of the option demanded. This amount will be the highest of options demanded (Number of shares multiplied by the bid price per share and in case of Bid at Cut-off price, number of shares multiplied by the Cap price per share).
In case the application is made for and on behalf of two or more people (not more than three people) together as per the instructions provided by me/us, I/we hereby agree that for the purpose of application to the Issue, the First applicant name will be the name of the First holder in whose name the e-brokerage account was opened with Sumedha and whose name appear as the First holder on the depository account linked to the above e-brokerage account and selected for the above bid/application. The other joint names for the purpose of the application will be in the same sequence in which the above depository account is held.
I/we hereby agree that Sumedha may in its discretion send any document that is obligatory to be sent to the applicant, by means of an electronic communication, with the possible exception of graphic insertions such as photographs or logotypes. This electronic communication may be in the form of e-mail, an e-mail attachment or in the form of download or display available on www.sumedhafiscal.com. Every document so sent shall contain all such information as is mandated by the concerned statutory and/or regulatory authority. Sumedha would be deemed to have fulfilled its legal obligation to deliver a document to the applicant, if it is sent by the electronic mode.
I/we hereby agree that the Company reserves the right to accept or reject any Bid/Application in whole or in part and without assigning any reason thereof.
I/we hereby agree that Sumedha shall not be held responsible for non-allotment of equity shares either fully or partly to me/us, for any reason whatsoever. Sumedha shall not be held responsible in case due to some reason the bid/application/revision instruction sent by me/us is not received by it, or if the bid/application/revision could not be uploaded to the Stock Exchange, or could not be sent to the Tradinger / Registrar to the issue. Sumedha shall not be held responsible for non-receipt or delay in/incorrect receipt of refund, if any, from the Registrar/Company.
I/we hereby agree that Sumedha shall not be liable for any loss that may arise from insufficient balance in trading account or due to trading holiday or failure/inability on the part of the trading to make available the requisite funds for any reason whatsoever.
I/we hereby agree that in the event of my/our death or insolvency or otherwise I/we becoming incapable of receiving and paying for securities applied for the above issue, Sumedha may close out the transaction and I/we or my/our legal representative shall be liable for any loss, costs which may arise there from.
I/we hereby agree that Sumedha shall not be responsible if the performance of their obligations is prevented, hindered or delayed by a Force Majeure event (defined below).
�Force Majeure Event� means any event due to any cause beyond the reasonable control of Sumedha , including, without limitation, unavailability of any communication system including failure of internet links, Exchange links, sabotage, fire, flood, explosion, earthquake, acts of God, civil commotion, strikes or industrial action of any kind, riots, insurrection, war, or acts of government/regulatory bodies.
I/we agree that the aforesaid Power of Attorney executed by me/us in favour of Sumedha and the instructions provided by me/us shall be treated as extending to making of the application on my/our behalf, and further that Sumedha may furnish certified copy of the Power of Attorney and other documents on my/our behalf to the Company/Registrar/any third party.
I/we agree to indemnify and hold Sumedha and Sumedha (Depository Participant), and their affiliates and associates, harmless against any loss (actual or notional), costs, expenses etc., which may be suffered by Sumedha or Sumedha (Depository Participant), or against any claim, demand, action, proceeding that may be initiated against either Sumedha or Sumedha (Depository Participant), which is in any way the result of my/our instruction to Sumedha to apply/revise the bid, for and on my/our behalf, for the Issue including but not limited to any improper use of the web trading, power of attorney, electronic communication, application, digital signatures, user ID and password.
I/we have read and accepted the above terms & conditions and hereby agree to bid and apply to the Issue through Sumedha.
Phone-2-Trade (P2T)
TERMS AND CONDITIONS GOVERNING PHONE-2-TRADE FACILITY.
The following are the specific terms and conditions relating to the Phone-2-Trade facility (hereinafter referred to as “Phone-2-Trade”) being offered to the Clients by Sumedha. In case the same are not acceptable, please do not use this facility. The acceptance of the terms as mentioned below and the terms and conditions displayed on the Website and contained in the Client Agreement are a prerequisite for availing of this facility.
Definitions.
“Phone-2-Trade” shall mean the facility provided by Sumedha to the Clients, whereby the Client can place order(s) over the phone for transactions in securities, to be executed by Sumedha, in those securities that are made available to the Client for trading by Sumedha.
“CCE” shall mean the Customer Care Executive appointed by the call centre(s) for the purpose of providing the Phone-2-Trade facility.
“Website” shall refer to sumedhafiscal.com or to such other website as may be maintained by Sumedha from time to time.
1.For the purpose of availing of Phone-2-Trade, the Client will be required to call on the specific numbers intimated or notified from time to time by Sumedha for the said purpose by means of an email and/or by putting up such numbers on the Website or otherwise. Such numbers will be subject to changes at Sumedha �s sole discretion, which change shall be intimated/notified to the Client within reasonable time of such a change.
2. Client will need to provide accurate answers to the questions asked by the CCE, including the Clients user id, for ascertaining the genuineness of the caller. Sumedha shall place the order for the Client only after the Client�s credentials have been verified by the CCE in the above manner.
3.The Client hereby authorises Sumedha to use the user-id made available by him for the purpose of executing the orders placed by the Client over the phone and agrees to hold Sumedha harmless for any such usage. All orders placed by Sumedha on behalf of the Client using the Client�s user id shall be deemed to have been placed by the Client himself.
4.The orders placed by the Client with the CCE for execution shall be orders for execution on the National Stock Exchange or such other stock exchanges notified from time to time by Sumedha , for this purpose.
5.The Client shall place the orders during market hours with the CCE for execution on the same trading day. All orders placed by the Client after market hours shall be entered for execution by Sumedha on the next trading day of the National Stock Exchange or such other stock exchanges notified from time to time by Sumedha , for this purpose.
6.The Client understands, agrees and authorises Sumedha at its discretion and without further prior notice to the Client, to monitor and record any or all telephone conversations between the Client on one hand and the CCE on the other so as to ensure the maintenance of an audit trail of the transactions placed through this facility.
7.The Client must note that for security reasons, the Client himself will be required to call and place the required orders over the phone in accordance with the terms hereof.
8.Neither Sumedha nor the CCE shall accept any liability that may arise as a consequence of the incomplete /incorrect data or information provided to the CCE over the phone and/or any error in the execution of an order due to such incomplete/incorrect data. Further neither Sumedha nor the CCE shall be liable for any loss that may be incurred by the Client due to a third party placing orders through Phone-2-Trade after getting hold of the Client�s personal identification details.
9.The Client will be required to pay an amount of Rs 15/- (Rupees Fifteen only), per call made towards Phone-2-Trade, being the service charges, for this facility payable to the Service Provider. Sumedha shall recover this amount from the client on behalf of the Service Provider, by means of a direct debit to the Client�s Trading account maintained by the Client with Sumedha for online share trading. The Client agrees to permit Sumedha to debit the Client�s Trading account for the payment of the above mentioned charges on his behalf. The said charges would be payable irrespective of whether an order is placed over the phone or the order placed, if any, was executed. Sumedha shall, recover the money on a monthly basis for the Phone-2-Trade facility from the Client.
10.The abovementioned service charges for the Phone-2-Trade facility are exclusive of the applicable brokerage charges payable to Sumedha for the executed orders of the Client that have been placed by the Client over the phone using Phone-2-Trade. The Client is required to check the Fee schedule on the Website for the purposes of knowing the applicable brokerage charges.
11.Once the orders are placed by the Client over phone and are sent by Sumedha to the Exchange for execution, the Client may check the status of such orders, online on the website, in the same manner as in the case of online share transactions placed by the Client through the Website.
12.The Client hereby agrees to hold Sumedha and the CCE harmless against all actions, claims and liabilities that may be incurred by them due to any action initiated or threatened that may be initiated against them due to the performance of any of their obligations herein and agrees that Sumedha and the CCE shall not be liable for any loss suffered by the Client on account of non execution of the order placed over the phone due to any reason whatsoever.
Insurance
TERMS AND CONDITIONS GOVERNING INSURANCE REFERRAL FACILITY.
SBI Life Insurance Company Ltd. (Terms & Conditions/Disclaimer)
The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of the fund and influencing the capital market and the insured is responsible for his or her decision.
SBI Life is only the name of the Insurance Company and does not in any way indicate the quality of the contract, its future prospects or returns. Insurance is the subject matter of the solicitation. Investment risk in the investment portfolio is borne by the policy holder
Sumedha Fiscal Services Ltd. (Terms & Conditions/Disclaimer)
Nothing contained on the Website (www.sumedhafiscal.com) shall constitute or be deemed to constitute an advice, an offer to purchase or an invitation or solicitation to undertake any activity or enter into any transaction relating to the Insurance Products of SBI Life Insurance Company Ltd. Sumedha Fiscal Services Ltd. has entered into referral arrangement with SBI Life Insurance Company Ltd. Sumedha Fiscal Services Ltd., clients have issued a Power of Attorney(POA) in favour of Sumedha Fiscal Services Ltd. As per the POA issued Sumedha Fiscal Services Ltd. shall have the authority to take referral information from its clients and take all necessary contact information of clients received from them and submit the same to the Insurance Company pursuant to the online instructions submitted by the Customer
