Policies and Procedures
1.Refusal of orders for penny stocks:
The Stock broker hereby advises the clients to refrain from dealing in penny securities since they may be subject to manipulation or suffer from lack of liquidity and depth. Should the client deal in penny stocks, margin upto 100% may be claimed from the client (to be paid immediately, failing which order may not be executed, and in case order has already been executed, the position may be squared off at the discretion of the Member), and also, these shares will not be taken as Margin deposit.
The stock broker shall have authority from time to time to limit quantity/ value of order(s) or refuse order(s) in one or more securities due to various reasons including market liquidity, value of security(ies) or to require compulsory settlement / advance payment of expected settlement value or delivery of securities for settlement prior to acceptance / placement of order(s), where the order is for securities which are not in the permitted list of the stock broker / exchange(s) / SEBI or where the risk/exposure is not commensurate with the risk profile of the client as assessed by the broker. Decision of Broker will be binding on the client and will be final.
2.Setting Up Client.s Exposure Limits:
The client agrees to abide by the exposure limits, if any, set by the stock broker or by the Exchange or Clearing Corporation or by SEBI from time to time. The client is aware and agrees that the stock broker may need to vary or reduce or impose new limits urgently on the basis of the stock broker.s risk perception, risk profile of the client and other factors considered relevant by the stock broker including but not limited to limits on account of exchange/ SEBI directions/ limits (such as broker level/ market level limits in security specific / volume specific exposures etc.).
The stock broker may be unable to inform the client of such variation, reduction or imposition in advance. The client agrees that the stock broker shall not be responsible for such variation, reduction or imposition or the client.s inability to route any order through the stock broker.s trading system on account of any such variation, reduction or imposition of limits. Sometimes client.s order may go to IOC (Immediate or Cancel) instead of normal bidding if broker terminal is on square off mode.
The Stock Broker at its sole discretion can give extra exposure or intraday limit to the client, such extra exposure will automatically be squared off by trading mechanism without any further reference to the client approximately 15 minutes before the scheduled closing or whenever any risk is perceived by the stock broker at his discretion.
3.Applicable Brokerage Rate
- a. For Cash Market Segment: The maximum brokerage chargeable for trades effected in the securities admitted to dealings on the Capital Market segment of the Exchange shall be 2.5 % of the contract price exclusive of exchange transaction charges and statutory levies. It is hereby further clarified that where the sale / purchase value of a share is Rs.10/- or less, a maximum brokerage of 25 paise per share may be collected.
- b. For Option contracts: Brokerage for option contracts would not exceed Rs.100/- per lot single side or such other rates as provided by the exchange.
4.Imposition of penalty/delayed payment charges by either party, specifying the rate and the period (This must not result in funding by the broker in contravention of the applicable laws)
Client shall be liable to penalty and other charges in case of non-payment of margin money, short selling of securities or units, failure on payment of auction, cheque bouncing, non-delivery or short delivery of shares, increase in open position(s) or place any orders / trades / deals / actions of the client which are contrary to this agreement / rules / regulations / bye laws of the exchange or any other law for the time being in force as per Rules, Regulations, Guidelines and Circulars issued by SEBI and stock exchange. From time to time the client will be kept informed about the rate of such penalties & fines. Similarly in case of non-receipt of full payment of value of delivery purchased, or non-receipt of margin imposed (initial + MTM + additional margins + ad hoc exchange margins) penalty will be charged at 0.1% per day calculated on daily basis on shortfall amount till the date of actual realization of money.
All fines/penalties and charges levied upon the Client due to his acts / deeds or transactions will be recovered by the Stock Broker directly from the client.s account or debited to the Client.s account at the rate of 0.1% per day on the outstanding balance each day. Where the Stock Broker fails to make payment to the Client as specified by the Exchange / SEBI or upon demand for payment by the client in case of his maintaining a running account.
5. The right to sell clients. securities or close clients. positions, without giving notice to the client, on account of non-payment of client.s dues (This shall be limited to the extent of settlement/margin obligation) shall be available to the stockbroker
- 1. If payment/securities towards the Margin or shortfall in Margin is not received instantaneously to enable restoration of sufficient Margin in the Client.s account or where benefit of margin is pending realization of instrument.
- 2. If the client gives orders / trades in the anticipation of the required securities being available subsequently for pay in through anticipated payout from the exchange or through borrowings or any off market delivery(s) and if such anticipated availability does not materialize in actual availability of securities / funds for pay in for any reason before the close of market.
- 3. The stock broker has the right but not the obligation, to cancel all pending orders and to sell/close/ liquidate all open positions/ securities / shares at the pre-defined square off time or when Mark to Market (M-T-M) percentage reaches or crosses stipulated margin percentage mentioned on the website, whichever is earlier. Similarly all transactions outstanding beyond the limit by whatsoever name called may be closed out at specified time if not squared off by the client.
- 4. In case open position gets converted into delivery due to non square off because of any reason whatsoever, the client agrees to provide securities/funds to fulfill the pay-in obligation failing which the client will have to face auctions or internal close outs; in addition to this the client will have to pay penalties and charges levied by exchange in actual and losses, if any.
- 5. Any reference in these terms to sale or transfer of securities by the Stock Broker shall be deemed to include sale of the securities which form part of the Margin maintained by the Client with the Stock Broker.
6. Shortages in obligations arising out of internal netting of trades
The policy and procedure for settlement of shortages in obligations arising out of internal netting of trades is as under:
REFLECTION INVESTMENTS will close out the position at 10% higher than the closing rate on the day of Exchange auction for the relevant trading day or at the rate/percentage/formula determined by the Exchange from time to time. REFLECTION INVESTMENTS will debit the defaulting Client at this rate and credit the buying Client for the same amount. In case of short/no delivery by Client, Exchange penalty charges and other costs will be levied at actuals.
7. Conditions under which a client may not be allowed to take further position or the broker may close the existing position of a client.
The stock broker may refuse to execute / allow execution of orders due to but not limited to the reason of lack of margin / securities or the order being outside the limits set by stock broker / exchange/ SEBI and/or any other reasons which the stock broker may deem appropriate in the circumstances.
- 1. for non-payment or erosion of margins or other amounts, outstanding debts, etc. and adjust the proceeds of such liquidation / close out, if any, against the client.s liabilities/ obligations.
- 2. Any order which is executed without the required Margin in the Client.s account or where the brokers exposure is more than limit considered prudent by the broker no fresh order will be accepted or trade will be executed.
- 3. The client hereby authorizes the Stock Broker to square up all his outstanding positions at the discretion of the Stock Broker, which are not marked for delivery 15 minutes before the closing time of the normal market or if the client.s mark to market loss exceeds 90% of the margin available for the client in any of exchanges, the Stock Broker reserves the right to square off positions.
- 4. 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 as prescribed or instructed by the Exchange / SEBI.
- 5. The stock broker is entitled to disable / freeze the account or trading facility / any other service if, in the opinion of the stock broker, the client has committed a crime, fraud or has acted in contradiction of this agreement or / evade / violate any laws, rules, regulations, directions of a lawful authority whether Indian or foreign or if the stock broker so apprehends. Any profit/loss arising out of these transactions shall be at the risk of and borne by the client.
8. Temporarily suspending or closing a client.s account at the client.s request : Client may instruct the member to close out the account or suspend the trading through client.s account for the period as specified in his written request duly signed by him.
The stock broker can at his discretion withhold the payouts of the client and/or suspend his trading account due to any change in risk perception or any surveillance action or judicial or / and regulatory order/action requiring client suspension.
9. Deregistering a client
A client is at liberty to deregister himself / itself from the member. For that purpose client will be liable first to settle his account in full. In case of any shortfall or any dues or payment remaining after adjusting the margin / account balance, the client will be liable to make payment of the same. And in case of surplus arising after netting of the account, the client shall be entitled to receive the same. The member shall also have power to deregister the client after settling his account at the member.s discretion.
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