Registered Office: Level -9, Centrum House, C.S.T. Road, Vidyanagari Marg, Kalina, Santacruz (East) Mumbai - 400098.

1. Rights and Obligations

2. Risk Disclosure Document
3. Guidance Note – Do’s Dont’s
4. Policies & Procedures & PMLA Policy
5. Rights and Obligations (DP Account)
6. Dos and Don’ts and best practices to be followed for CDSL demat account
holders
7. Addendum pursuant to SEBI circular June 20, 2019 & April 04, 2022
8. Rights and Obligations – SLBS
9. Investor Charter
10. Risk Disclosures on Derivatives
 RIGHTS AND OBLIGATIONS OF STOCK BROKERS, SUB-BROKERS AND CLIENTS
As Prescribed by SEBI and Stock Exchanges

1. The client shall invest/trade in those securities/contracts/other shall not disclose the same to any person/authority except as
instruments admitted to dealings on the Exchanges as defined in required under any law/regulatory requirements. Provided
the Rules. Byelaws and Regulations of Exchanges/ Securities and however that the stock broker may so disclose information about
Exchange Board of India (SEBI) and circulars/notices issued there his client to any person or authority with the express permission of
under from time to time. the client.
2. The stock broker, sub-broker and the client shall be bound by all MARGINS
the Rules, Byelaws and Regulations of the Exchange and
11. The client shall pay applicable initial margins, withholding
circulars/notices issued there under and Rules and Regulations of
margins, special margins or such other margins as are considered
SEBI and relevant notifications of Government authorities as may
necessary by the stock broker or the Exchange or as may be
be in force from time to time.
directed by SEBI from time to time as applicable to the segment(s)
3. The client shall satisfy itself of the capacity of the stock broker to in which the client trades. The stock broker is permitted in its sole
deal in securities and/or deal in derivatives contracts and wishes and absolute discretion to collect additional margins (even though
to execute its orders through the stock broker and the client shall not required by the Exchange, Clearing House/Clearing
from time to time continue to satisfy itself of such capability of the Corporation or SEBI) and the client shall be obliged to pay such
stock broker before executing orders through the stock broker. margins within the stipulated time.
4. The stock broker shall continuously satisfy itself about the 12. The client understands that payment of margins by the client does
genuineness and financial soundness of the client and investment not necessarily imply complete satisfaction of all dues, In spite of
objectives relevant to the services to be provided. consistently having paid margins, the client may, on the
settlement of its trade, be obliged to pay (or entitled to receive)
5. The stock broker shall take steps to make the client aware of the
such further sums as the contract may dictate/require.
precise nature of the Stock broker’s liability for business to be
conducted, including any limitations, the liability and the capacity TRANSACTIONS AND SETTLEMENTS
in which the stock broker acts.
13. The client shall give any order for buy or sell of a security /
6. The sub-broker shall provide necessary assistance and co-operate derivatives contract in writing or in such form or manner, as may
with the stock broker in all its dealings with the client(s). be mutually agreed between the client and the stock broker, The
stock broker shall ensure to place orders and execute the trades of
CLIENT INFORMATION
the client, only in the Unique Client Code assigned to that client.
7. The client shall furnish all such details in full as are required by the
14. The stock broker shall inform the client and keep him apprised
stock broker in “Account Opening Form” with supporting details,
about trading / settlement cycles, delivery/payment schedules,
made mandatory by stock exchanges/SEBI from time to time.
any changes therein from time to time, and it shall be the
8. The client shall familiarize himself with all the mandatory responsibility in turn of the client to comply with such
provisions in the Account Opening documents. Any additional schedules / procedures of the relevant stock exchange where the
clauses or documents specified by the stock broker shall be non- trade is executed.
mandatory, as per terms & conditions accepted by the client
15. The stock broker shall ensure that the money/securities deposited
9. The client shall immediately notify the stock broker in writing if by the client shall be kept in a separate account, distinct from
there is any change in the information in the account opening his/its own account or account of any other client and shall not be
form’ as provided at the time of account opening and thereafter; used by the stock broker for himself/itself or for any other client or
including the information on winding up petition/insolvency for any purpose other than the purposes mentioned in Rules,
petition or any litigation which may have material bearing on his Regulations, circulars, notices, guidelines of SEBI and/or Rules,
capacity. The client shall provide / update the financial information Regulations, Bye-laws, circulars and notices of Exchange.
to the stock broker on a periodic basis.
16. Where the Exchange(s) cancels trade(s) suo moto all such trades
10. The stock broker and sub-boroker shall maintain all the details of including the trade/s done on behalf of the client shall ipso facto
the client as mentioned in the account opening form or any other stand cancelled, stock broker shall be entitled to cancel the
information pertaining to the client, confidentially and that they respective contract(s) with client(s).
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17. The transactions executed on the Exchange are subject to Rules, 23. The stock broker shall co-operate in redressing grievances of the
Byelaws and Regulations and circulars/notices issued thereunder client in respect of all transactions routed through it and in
of the Exchanges where the trade is executed and all parties to removing objections for bad delivery of shares, rectification of bad
such trade shall have submitted to the jurisdiction of such court as delivery, etc.
may be specified by the Byelaws and Regulations of the 24. The client and the stock broker shall refer any claims and/or
Exchanges where the trade is executed for the purpose of giving disputes with respect to deposits, margin money, etc., to
effect to the provisions of the Rules, Byelaws and Regulations of arbitration as per the Rules, Byelaws and Regulations of the
the Exchanges and the circulars/notices issued thereunder. Exchanges where the trade is executed and circulars/notices
BROKERAGE issued (Hereunder as may be in force from time to time.

18. The Client shall pay to the stock broker brokerage and statutory 25. The stock broker shall ensure faster settlement of any arbitration
levies as are prevailing from time to time and as they apply to the proceedings arising out of the transactions entered into between
Clients account, transactions and to the services that stock broker him vis-a-vis the client and he shall be liable to implement the
renders to the Client. The stock broker shall not charge brokerage arbitration awards made in such proceedings.
more than the maximum brokerage permissible as per the rules, 26. The client/stock-broker understands that the instructions issued
regulations and bye-laws of the relevant stock exchanges and/or by an authorized representative for dispute resolution, if any, of the
rules and regulations of SEBI. client/stock-broker shall be binding on the client/stock-broker in
accordance with the letter authorizing the said representative to
LIQUIDATION AND CLOSE OUT OF POSITION
deal on behalf of the said client/stock-broker,
19. Without prejudice to the stock broker’s other rights (including the
TERMINATION OF RELATIONSHIP
right to refer a matter to arbitration), the client understands that the
stock broker shall be entitled to liquidate/close out all or any of the 27. This relationship between the stock broker and the client shall be
client’s positions for nonpayment of margins or other amounts, terminated; if the stock broker for any reason ceases to be a
outstanding debts, etc. and adjust the proceeds of such member of the stock exchange including cessation of
liquidation/close out, if any, against the client’s membership by reason of the stock broker’s default, death,
liabilities/obligations, Any and all losses and financial charges on resignation or expulsion or if the certificate is cancelled by the
account of such liquidation/closing-out shall be charged to and Board.
borne by the client. 28. The stock broker, sub-broker and the client shall be entitled to
20. In the event of death or insolvency of the client or his/its otherwise terminate the relationship between them without giving any
becoming incapable of receiving and paying for or delivering or reasons to the other party, after giving notice in writing of not less
than one month to the other parties. Notwithstanding any such
transferring securities which the client has ordered to be bought or
termination, all rights, liabilities and obligations of the parties
sold, stock broker may close out the transaction of the client and
arising out of or in respect of transactions entered into prior to the
claim losses, if any, against the estate of the client. The client or
termination of this relationship shall continue to subsist and vest
his nominees, successors, heirs and assignee shall be entitled to
i n / b e b i n d i n g o n t h e re s p e c t i v e p a r t i e s o r
any surplus which may result there from. The client shall note that
his / its respective heirs, executors, administrators, legal
transfer of funds/securities in favour of a Nominee shall be valid
representatives or successors, as the case may be.
discharge by the stock broker against the legal heir.
29. In the event of demise/insolvency of the sub-broker or the
21. The stock broker shall bring to the notice of the relevant Exchange cancellation of his/its registration with the Board or/withdrawal of
the information about default in payment / delivery and related recognition of the sub-broker by the stock exchange and/or
aspects by a client. In case where defaulting client is a corporate termination of the agreement with the sub broker by the stock
entity / partnership/proprietary firm or any other artificial legal broker, for any reason whatsoever, the client shall be informed of
entity, then the name(s) of Director(s) / Promoter(s) / Partner(s) / such termination and the client shall be deemed to be the direct
Proprietor as the case may be, shall also be communicated by the client of the stock broker and all clauses in the ‘Rights and
stock broker to the relevant Exchange(s). Obligations’ document(s) governing the stock broker, sub-broker
DISPUTE RESOLUTION and client shall continue to be in force as it is, unless the client
intimates to the stock broker his/its intention to terminate their
22. The stock broker shall provide the client with the relevant contact relationship by giving a notice in writing of not less than one
details of the concerned Exchanges and SEBI. month.
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ADDITIONAL RIGHTS AND OBLIGATIONS ELECTRONIC CONTRACT NOTES (ECN)
30. The stock broker shall ensure due protection to the client regarding 37. In case, client opts to receive the contract note in electronic form,
client’s rights to dividends, rights or bonus shares, etc. in respect he shall provide an appropriate e-mail id to the stock broker. The
of transactions routed through it and it shall not do anything which client shall communicate to the stock broker any change in the
is likely to harm the interest of the client with whom and for whom email-id through a physical letter. If the client has opted for
they may have had transactions in securities. internet trading, the request for change of email id may be made
31. The stock broker and client shall reconcile and settle their through the secured access by way of client specific user id and
accounts from time to time as per the Rules, Regulations, Bye password.
Laws, Circulars, Notices and Guidelines issued by SEBI and the 38. The stock broker shall ensure that all ECNs sent through the
relevant Exchanges where the trade is executed. e-mail shall be digitally signed, encrypted, non-tamper able and
32. The stock broker shall issue a contract note to his constituents for in compliance with the provisions of the IT Act, 2000. In case, ECN
trades executed in such format as may be prescribed by the is sent through e-mail as an attachment, the attached file shall also
Exchange from time to time containing records of all transactions be secured with the digital signature, encrypted and non-
including details of order number, trade number trade time, trade tamperable.
price, trade quantity, details of the derivatives contract, client
39. The client shall note that non-receipt of bounce mail notification by
code, brokerage, all charges levied etc. and with all other relevant
the stock broker shall amount to delivery of the contract note at the
details as required therein to be filled in and issued in such manner
e-mail ID of the client.
and within such time as prescribed by the Exchange. The stock
broker shall send contract notes to the investors within one 40. The stock broker shall retain ECN and acknowledgement of the
working day of the execution of the trades in hard copy and/or in e-mail in a soft and non-tamperable form in the manner prescribed
electronic form using digital signature. by the exchange in compliance with the provisions of the IT Act,
33. The stock broker shall make pay out of funds or delivery of 2000 and as per the extant rules / regulations / circulars /
securities, as the case may be, to the Client within one working day guidelines issued by SEBI / Stock Exchanges from time to time.
of receipt of the payout from the relevant Exchange where the trade The proof of delivery i.e. log report generated by the system at the
is executed unless otherwise specified by the client and subject to time of sending the contract notes shall be maintained by the stock
such terms and conditions as may be prescribed by the relevant broker for the specified period under the extant regulations
Exchange from time to time where the trade is executed. SEBI/stock exchanges. The log report shall provide the details of
the contract notes that are not delivered to the client/e-mails
34. The stock broker shall send a complete ‘Statement of Accounts’ for
rejected or bounced back. The stock broker shall take all possible
both funds and securities in respect of each of its clients in such
steps to ensure receipt of notification of bounced mails by him at
periodicity and format within such time, as may be prescribed by
all times within the stipulated time period under the extant
the relevant Exchange, from time to time, where the trade is
regulations of SEBI/stock exchanges.
executed. The Statement shall also state that the client shall report
errors, if any, in the Statement within such time as may be 41. The stock broker shall continue to send contract notes in the
prescribed by the relevant Exchange from time to time where the physical mode to such clients who do not opt to receive the
trade was executed, from the receipt thereof to the Stock broker. contract notes in the electronic form. Wherever the ECNs have not
been delivered to the client or has been rejected (bouncing of
35. The stock broker shall send daily margin statements to the clients.
Daily Margin statement should include, inter-alia, details of mails) by the e-mail ID of the-client, the stock broker shall send a
collateral deposited, collateral utilized and collateral status physical contract note to the client within the stipulated time under
(available balance/due from client) with break up in terms of cash, the extant regulations of SEBI / stock exchanges and maintain the
Fixed Deposit Receipts (FDRs), Bank Guarantee and securities. proof of delivery of such physical contract notes.

36. The Client shall ensure that it has the required legal capacity to, 42. In addition to the e-mail communication of the ECNs to the client,
and is authorized to, enter into the relationship with stock broker the stock broker shall simultaneously publish the ECN on his
and is capable of performing his obligations and undertakings designated web-site, if any, in a secured way and enable relevant
hereunder. All actions required to be taken to ensure compliance access to the clients and for this purpose, shall allot a unique user
of all the transactions, which the Client may enter into shall be name and password to the client, with an option to the client to
completed by the Client prior to such transaction being entered save the contract note electronically and/or take a print out of the
into. same.
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LAW AND JURISDICTION 46. Words and expressions which are used in this document but which
are not defined herein shall, unless the context otherwise requires,
43. In addition to the specific rights set out in this document, the stock
have the same meaning as assigned thereto in the Rules, Byelaws
broker, sub-broker and the client shall be entitled to exercise any
and Regulations and circulars/notices issued thereunder of the
other rights which the stock broker or the client may have under the Exchanges/SEBI.
Rules, Bye-laws and Regulations of the Excnanges in which the
47. All additional voluntary clauses/document added by the stock
client chooses to trade and circulars/notices issued thereunder or
broker should not be in contravention with rules / regulations /
Rules and Regulations of SEBI.
notices / circulars of Exchanges / SEBI. Any changes in such
44. The provisions of this document shall always be subject to voluntary clauses / document(s) need to be preceded by a notice
Government notifications, any rules, regulations, guidelines and of 15 days. Any changes in the rights and obligations which are
specified by Exchanges / SEBI shall also be brought to the notice
circulars/notices issued by SEBI and Rules, Regulations and Bye
of the client.
laws of the relevant stock exchanges, where the trade is executed,
that may be in force from time to time. 48. If the rights and obligations of the parties hereto are altered by
virtue of change in Rules and regulations of SEBI or Bye-laws,
45. The stock broker and the client shall abide by any award passed by Rules and Regulations of the relevant stock Exchanges where the
the Arbitrator(s) under the Arbitration and Conciliation Act, 1996. trade is executed, such changes shall be deemed to have been
However, there is also a provision of appeal within the stock incorporated herein in modification of the rights and obligations of
exchanges, if either party is not satisfied with the arbitration award. the parties mentioned in this document.

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 INTERNET & WIRELESS TECHNOLOGY BASED TRADING FACILITY PROVIDED BY STOCK BROKERS TO CLIENT
(All the clauses mentioned in the ‘Rights and Obligations’ document(s) shall be applicable. Additionally,
the clauses mentioned herein shall also be applicable.)

1. Stock broker is eligible or providing Internet based trading (IBT) through order routed system and undertakes to ensure that the
and securities trading through the use of wireless technology that password of the client and/or his authorized representative are not
shall include the use of devices such as mobile phone, laptop with revealed to any third party including employees and dealers of the
data card, etc. which use Internet Protocol (IP). stock broker
The stock broker shall comply with all requirements applicable to
internet based trading / securities trading using wireless 6. The Client shall immediately notify the Stock broker in writing if he
technology as may be specified by SEBI & the Exchanges from forgets his password, discovers security flaw in Stock Broker’s IB’
time to time. System, discovers/suspects discrepancies/ unauthorized access
through his usemame/password/account with full,details of such
2. The client is desirous of investing/trading in securities and for this unauthorized use, the date, the manner and the transactions
purpose, the client is desirous of using either the internet based effected pursuant to such unauthorized use, etc.
trading facility or the facility for securities trading through use of
wireless technology. The Stock broker shall provide the Stock 7. The Client is fully aware of and understands the risks associated
broker’s IBT Service to the Client, and the Client shall avail of the with availing of a service for routing orders over the
Stock broker’s IBT Service, on and subject to SEBI/Exchanges internet/securities trading through wireless technology and Client
Provisions and the terms and conditions specified on the Stock shall be fully liable and responsible for any and all acts done in the
broker’s IBT Web Site provided that they are in line with the norms Client’s Usemame/password in any manner whatsoever.
prescribed by Exchanges/SEBI. 8. The stock broker shall send the order/trade confirmation through
3. The stock broker shall bring to the notice of client the features, email to the client at his request. The client is aware that the order/
risks, responsibilities, obligations and liabilities associated with trade confirmation is also provided on the web portal. In case
securities trading through wireless technology / internet / smart client is trading using wireless technology, the stock broker shall
order routing or any other technology should be brought to the send the order/trade confirmation on the device of the client.
notice of the client by the stock broker. 9. The client is aware that trading over the internet involves many
4. The stock broker shall make the client aware that the Stock Brokers uncertain factors and complex hardware, software, systems,
IBT system it self generates the initial password and its password communication lines, peripherals, etc. are susceptible to
policy as stipulated in line with norms prescribed by interruptions and dislocations. The Stock broker and the Exchange
Exchanges/SEBI. do not make any representation or warranty that the Stock broker’s
IBT Service will be available to the Client at all times without any
5. The Client shall be responsible for keeping the Username and interruption.
Password confidential and secure and shall be solely responsible
for all orders entered and transactions done by the person 10. The Client shall not have any claim against the Exchange or the
whosoever through the Stock brokers IBT System using the Stock broker on account of any suspension, interruption, non-
Client’s Username and/or Password whether or not such person availability or malfunctioning of the Stock broker’s IBT System or
was authorized to do so Also the client is aware that authentication Service or the Exchange’s service or systems or non-execution of
technologies and strict security measures are required for the his orders due to any link/system failure at the Client/Stock
internet trading/securities trading through wireless technology brokers/Exchange end for any reason beyond the control of the
stock broker/Exchanges.

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 RISK DISCLOSURE DOCUMENT FOR CAPITAL MARKET AND DERIVATIVES SEGMENTS
This document contains important information on trading in In considering whether to trade or authorize someone to trade for you,
Equities/Derivatives Segments of the stock exchanges. All prospective you should be aware of or must get acquainted with the following:-
constituents should read this document before trading in
Equities/Derivatives Segments of the Exchanges. 1. BASIC RISKS:

Stock exchanges/SEBI does neither singly or jointly and expressly nor 1.1 Risk of Higher Volatility:
impliedly guarantee nor make any representation concerning the Volatility refers to the dynamic changes in price that a
completeness, the adequacy or accuracy of this disclosure document security/derivatives contract undergoes when trading activity
nor have Stock exchanges /SEBI endorsed or passed any merits of continues /on the Stock Exchanges. Generally, higher the volatility of a
participating in the trading segments. This brief statement does not security/derivatives contract, greater is its price swings. There may be
disclose all the risks and other significant aspects of trading. normally greater volatility in thinly traded securities / derivatives
In the light of the risks involved you should undertake transactions only contracts than in active securities /derivatives contracts. As a result of
if you understand the nature of the relationship into which you are volatility your order may only be partially executed or not executed at
entering and the extent of your exposure to risk. all, or the price at which your order got executed may be substantially
different from the last traded price or change substantially thereafter,
You must know and appreciate that trading in Equity shares, derivatives resulting in notional or real losses.
contracts or other instruments traded on the Stock Exchange, which
have varying element of risk, is generally not an appropriate avenue for 1.2 Risk of Lower Liquidity:
someone of limited resources/limited investment and/or trading Liquidity refers to the ability of market participants to buy and/or sell
experience and low risk tolerance. You should therefore carefully securities / derivatives contracts expeditiously at a competitive price
consider whether such trading is suitable for you in the light of your and with minimal price difference. Generally, it is assumed that more
financial condition. In case you trade on Stock exchanges and suffer the numbers of orders available in a market, greater is the liquidity.
adverse consequences or loss, you shall be solely responsible for the Liquidity is important because with greater liquidity, it is easier for
same and Stock exchanges/its Clearing Corporation and/or SEBI shall investors to buy and/or sell securities / derivatives contracts swiftly and
not be responsible, in any manner whatsoever, for the same and it will with minimal price difference, and as a result, investors are more likely
not be open for you to take a plea that no adequate disclosure regarding to pay or receive a competitive price for securities / derivatives
the risks involved was made or that you were not explained the full risk contracts purchased or sold. There may be a risk of lower liquidity in
involved by the concerned stock broker. The constituent shall be solely some securities / derivatives contracts as compared to active securities
responsible for the consequences and no contract can be rescinded on / derivatives contracts. As a result, your order may only be partially
that account. You must acknowledge and accept that there can be no executed, or may be executed with relatively greater price difference or
guarantee of profits or no exception from losses while executing orders may not be executed at all.
for purchase and/or sale of a derivative contract being traded on Stock
exchanges. 1.2.1 Buying or selling securities / derivatives contracts as part of a day
trading strategy may also result into losses, because in such a
It must be clearly understood by you that your dealings on Stock situation, securities / derivatives contracts may have to be sold /
exchanges through a stock broker shall be subject to your fulfilling purchased at low / high prices, compared to the expected price levels,
certain formalities set out by the stock broker, which may inter alia so as not to have any open position or obligation to deliver or receive a
include your filling the know your client form, reading the rights and security / derivatives contract.
obligations do’s and don’ts, etc., and are subject to the Rules, Byelaws
and Regulations of relevant Stock exchanges, its Clearing Corporation, 1.3 Risk of Wider Spreads:
guidelines prescribed by SEBI and in force from time to time and Spread refers to the difference in best buy price and best sell price. It
Circulars as may be issued by Stock exchanges or its Clearing represents the differential between the price of buying a security /
Corporation and in force from time to time. derivatives contract and immediately selling it or vice versa. Lower
Stock exchanges does not provide or purport to provide any advice and liquidity and higher volatility may result in wider than normal spreads
shall not be liable to any person who enters into any business for less liquid or illiquid securities / derivatives contracts. This in turn
relationship with any stock broker of Stock exchanges and/or any third will hamper better price formation.
party based on any information contained in this document. Any 1.4 Risk-reducing orders:
information contained in this document must not be construed as
business advice. No consideration to trade should be made without The placing of orders (e.g., “stop loss" orders or “limit” orders) which
thoroughly understanding and reviewing the risks involved in such are intended to limit losses to certain amounts may not be effective
trading. If you are unsure, you must seek professional advice on the many a time because rapid movement in market conditions may make
same. it impossible to execute such orders.

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1.4.1 A “market” order will be executed promptly, subject to 1.8 System/Network Congestion:
availability of orders on opposite side, without regard to price and that,
Trading on exchanges is in electronic mode, based on satellite / leased
while the customer may receive a prompt execution of a “market” order,
line based communications, combination of technologies and
the execution may be at available prices of outstanding orders, which
computer systems to place and route orders. Thus, there exists a
satisfy the order quantity, on price time priority. It may be understood
possibility of communication failure or system problems or slow or
that these prices may be significantly different from the last traded price
delayed response from system or trading halt, or any such other
or the best price in that security / derivatives contract.
problem/glitch whereby not being able to establish access to the
1.4.2 A “limit” order will be executed only at the “limit” price specified trading system/network, which may be beyond control and may result
for the order or a better price. However, while the customer receives in delay in processing or not processing buy or sell orders either in part
price protection, there is a possibility that the order may not be or in full. You are cautioned to note that although these problems may
executed at all. be temporary in nature, but when you have outstanding open positions
or unexecuted orders, these represent a risk because of your
1.4.3 A stop loss order is generally placed “away” from the current obligations to settle all executed transactions.
price of a stock / derivatives contract, and such order gets activated if
and when the security / derivatives contract reaches, or trades through, 2. As far as Derivatives segments are concerned, please note
the stop price. Sell stop orders are entered ordinarily below the current and get yourself acquainted with the following additional
price, and buy stop orders are entered ordinarily above the current features:-
price. When the security / derivatives contract reaches the pre .- 2.1 Effect of “Leverage” or “Gearing”:
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. In the derivatives market, the amount of margin is small relative to the
There is no assurance therefore that the limit order will be executable value of the derivatives contract so the transactions are ‘leveraged’ or
since a security / derivatives contract might penetrate the pre- ‘geared’. Derivatives trading, which is conducted with a relatively small
determined price, in which case, the risk of such order not getting amount of margin, provides the possibility of great profit or loss in
executed arises just as with a regular limit order. comparison with the margin amount. But transactions in derivatives
carry a high degree of risk.
1.5 Risk of News Announcements:
You should therefore completely understand the following statements
News announcements that may impact the price of stock / derivatives before actually trading in derivatives and also trade with caution while
contract may occur during trading, and when combined ‘’with lower taking into account one’s circumstances, financial resources, etc. If the
liquidity and higher volatility, may suddenly cause an unexpected prices move against you, you may lose a part of or whole margin
positive or negative movement in the price of the security / contract. amount in a relatively short period of time. Moreover, the loss may
exceed the original margin amount.
1.6 Risk of Rumors:
A. Futures trading involve daily settlement of all positions. Every day
Rumors about companies / currencies at times float in the market
the open positions are marked to market based on the ‘closing level of
through word of mouth, newspapers, websites or news agencies, etc.
the index / derivatives contract. If the contract has moved against you,
The investors should be wary of and should desist from acting on you will be required to deposit the amount of loss (notional) resulting
rumors. from such movement. This amount will have to be paid within a
1.7 System Risk: stipulated time frame, generally before commencement of trading on
next day.
High volume trading will frequently occur at the market opening and
before market close. Such high volumes may also occur at any point in B. If you fail to deposit the additional amount by the deadline or if an
the day. These may cause delays in order execution or confirmation. outstanding debt occurs in your account, the stock broker may
liquidate a part of or the whole position or substitute securities. In this
1.7.1 During periods of volatility on account of market participants case, you will be liable for any losses incurred due to such close-outs
continuously modifying their order quantity or prices or placing fresh
orders, there may be delays in order execution and its confirmations. C. Under certain market conditions, an investor may find it difficult or
impossible to execute transactions. For example, this situation can
1.7.2 Under certain market conditions, it may be difficult or impossible occur due to factors such as illiquidity i.e. when there are insufficient
to liquidate a position in the market at a reasonable price or-at all, when bids or offers or suspension of trading due to price limit or circuit
there are no outstanding orders either on the buy side or the sell side, or breakers etc
if trading is halted in a security / derivatives contract due to any action
D. In order to maintain market stability, the following steps may be
on account of unusual trading activity or security / derivatives contract
adopted: changes in the margin rate, increases in the cash margin rate
hitting circuit filters or for any other reason
or others. These new measures may also be applied to the existing open

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

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

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

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IN CASE OF TERMINATION OF TRADING MEMBERSHIP DISPUTES/ COMPLAINTS
16. In case, a stock broker surrenders his membership, is expelled 18. Please note that the details of the arbitration proceedings, penal
from membership or declared a defaulter; Stock exchanges gives a action against the brokers and investor complaints against the
public notice inviting claims relating to only the “transactions stock brokers are displayed on the website of the relevant Stock
executed on the trading system” of Stock exchange, from the exchange.
investors Ensure that you lodge a claim with the relevant Stock
19. In case your issue/problem/grievance is not being sorted out by
exchanges within the stipulated period and with the supporting
concern stock broker/sub-broker then you may take up the matter
documents
with the concerned Stock exchange. If you are not satisfied with the
17. Familiarize yourself with the protection accorded to the money resolution of your complaint then you can escalate the matter to
and/or securities you may deposit with your stock broker, SEBI
particularly in the event of a default or the stock broker’s insolvency
20. Note that all the stock broker/sub-brokers have been mandated by
or bankruptcy and the extent to which you may recover such money
SEBI to designate an e-mail ID of the grievance redressal
and/or securities may be governed by the Bye-laws and
division/compliance officer exclusively for the purpose of
Regulations of the relevant Stock exchange where the trade was
registering complaints.
executed and the scheme of the Investors’ Protection Fund in force
from time to time.

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 MANDATORY DOCUMENT DEALING WITH POLICIES AND PROCEDURES

1. Refusal of order for Penny stocks: CBL in its sole and absolute discretion have the right to
collect margins whether imposed by Exchange, Clearing
• Centrum Broking Limited (“CBL”) shall have the House or SEBI. The margin can be demanded by the CBL
absolute discretion to accept, refuse or partially in the form of cash, securities or any other form as may
accept any buy or sell order for execution from a Client be deemed fit by the CBL. CBL may impose haircut on the
in respect of penny stocks, illiquid stocks, stocks securities at its own discretion which may be more than
having low liquidity, illiquid “options”, far month what is prescribed by the above mentioned regulatory
“options”, writing of “options”, stocks in T, Z, SMS and authorities. CBL can have its own list of securities which
TS category and any other contracts which as per the is acceptable by it for the purpose of margin. CBL may at
perception of CBL are extremely volatile or where any time amend the margin requirements, the list of
the order by the Client is quite large compared to the approved securities accepted as margin, and intimate the
volume in the market and where CBL feels that it is same by conspicuously posting notice of such
subject to Market manipulation. amendment on its web site or may communicate the
same individually to the Client either through Physical or
• CBL may permit restrictive acceptance of orders in such electronic form. The communication of said amendment
scrip’s/contracts in controlled environments like orders through such mode and continued use of the services CBL
received from clients being forwarded by branches to a by the Client after such notice will constitute valid
centralized desk instead of allowing trading in such acknowledgement and acceptance of such amendment.
scrip’s/Contracts at branch level or through Online
trading platform. CBL shall not be responsible for delay Collateral includes
in execution of such orders and consequential
opportunity loss or financial loss to the client. • Account balances adjusted for F&O margins, as maybe
applicable
• CBL may cancel orders in such scrip’s received from
clients before execution or after partial execution • Adjustments for open unsettled positions, if any
without assigning any reasons thereof. CBL may take
appropriate declarations from the clients before • "Approved Securities" pledged with CBL as collateral
accepting such orders. that the Client has authorized the company to pledge/
Re-Pledge as Collateral with itself or the Clearing
• CBL shall have the prerogative to place such
Corporation/Clearing Member (Received or due from
restrictions, notwithstanding the fact that the Client
exchange) valued after a haircut and / or margin as
has adequate credit balance or margin available in his
determined by the company from time to time
account and/or the Client had previously purchased or
sold such securities / contracts through CBL itself.
Account balances shall include
2. Setting up Client’s Exposure limits:
• All daily billing effects for all segments
Exposures and margins shall be regularly monitored by the
• All charges and fees that are incidental to carrying out
company for all clients. Each client also needs to
the securities business like DP charges, Delayed
constantly monitor his/her positions, margins etc. and it
Payment charges, auctions, penalties, any other fees
shall be the Client's responsibility to maintain adequate
etc.
margins against exposures taken / proposed to be taken.
Exposure limits shall be made available to clients based on • All money receipts realized by the company before the
collateral available. trading session / day
Margin collection and requirements • Derivative margins collected / realized based on the
billing policy adopted by the company from time to
This would be in line with the Risk Management policy of
time
the CBL and various rules and regulations of the concerned
"Approved Securities" is the list of securities that CBL
Stock Exchange. The policy is duly explained by the CBL to
Accepts as collateral. Typically the list is revised on a
the CLIENT and as amended from time to time.

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monthly basis, but maybe modified anytime at the sole absolute right to reject any order that may be made by the
discretion of CBL based on market volatility, any material CLIENT for any reason whatsoever including for the breach
impact on price or volatility of any security. This list shall be of the requirement of maintaining the prescribed Upfront
made available on demand. The haircut on securities for Margin in the CLIENT account or the Bank account as
valuation shall be defined by CBL and typically varies from applicable from time to time.
25%-100%.
Under any circumstances or for any reason, the market
Exposure limits shall be allocated to clients at the closes before the acceptance of the order by the Exchange,
company's absolute discretion and may vary from client to the order may be rejected. In case of rejection of an order
client based on risk profiles, trading patterns, qualitative due to rejection by the Exchange, the order shall remain
assessments, track record, underlying Securities, declined and shall not be reprocessed, in any event.
Exchange segments etc. The company may at its discretion
allow exposures based on various other factors like market CBL may, at its sole discretion, reject any order placed on
/ stock volatility and any other client related factors as the website, through phone, or in any other manner for
above. any reason including, but not limited to, the non
availability of funds in the trading account of the CLIENT,
All shares held in DP Beneficiary of the Client maintained non availability of the securities in the Demat account of
with CBL at beginning of trading day shall be available for the CLIENT with the designated Depository Participant
sale in case the Client has authorized CBL to use the shares which is available for pledging for margin purpose,
by way of pledge for margins and/ or settlement of insufficiency of margin amount if the CLIENT opts for lntra-
exchange obligations and undertakes not to transfer such Day margin trading, suspension of scrip for trading
securities out of the account directly without CBL's activities by or on the Exchange, or applicability of circuit
consent (such consent not to be unreasonably withheld); breaker to a scrip in which orders are placed or insufficient
bids or offers in any particular security. CBL shall have right
Exposure limits are dynamic throughout the day and are to reject the orders placed by the Client and/or put circuit
constantly adjusted for M to M profits / losses, market breakers to discourage trades getting executed at
conditions, individual security exposure caps and all other unrealistic prices from the current market price of the
factors affecting risk to security prices, collateral and security or prohibit the Client from trading in illiquid
liquidity; securities which creates artificial liquidity or manipulates
prices or to discourage Client from cross/ synchronised
CBL may change the procedure for exposure allocation trading and CBL shall not be liable for any loss arising out of
depending upon the market conditions and change in non acceptance or rejection of the Client orders by CBL for
internal policies. The same may be put up / updated on the any such reason..
website regularly. A copy of the same can be obtained from
the offices of CBL. PRICE OF SECURITIES
PLACING of ORDERS The CLIENT should be aware that with respect to any order,
the CLIENT will obtain the price at which the order was
CBL will rely upon and act in accordance with any
actually executed in the market, which may be different
directions, Instructions and/ or other communication
from the price at which the security was trading when the
given by the Client or person(s) authorised by the Client to
CLIENT'S order was entered into the CBL'S system.
act on the Client's behalf via telephone/ Fax/ email. CBL is
agreeing to act on the basis of instructions only by reason CANCELLATION OR MODIFICATION OF ORDERS
of/ relying upon the Client agreeing, confirming, declaring
and indemnifying CBL at all times, from and against, all The execution of order cancellations or modifications is
actions, suits, proceedings., costs, claims, demands, not guaranteed. Cancellation of orders is possible only if
charges, expenses, losses and liabilities howsoever arising the original order remains pending at the Exchanges.
in consequence of or in any way related to CBL having Market orders are subject to immediate execution. The
acted or omitted to act in accordance with and/or CLIENT shall not presume that an order once placed has
pursuant to any such Instructions. been executed or cancelled or modified and the CLIENT is
required to verify the status of his/its orders with the trade
EXECUTION OF ORDERS confirmations by the CBL
The placing an order with the CBL including a market order, Unless otherwise specified by the CBL, any order not
does not guarantee execution of the order. CBL has the executed at the end of the day shall stand cancelled.
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 At times, due to unforeseen circumstances CBL may not be 4. Imposition of Penalty / delayed payment charges
able to execute the desired transactions (either the CLIENTS
own transactions or transactions for enforcing margins as The delayed Payment charges would levied to the Client ifthe
provided in this agreement) on a timely basis.CBL does not payment is not received in time for meeting theobligations
accept responsibility for any losses that the CLIENT may incur of the exchange. The rate of the charges would be up to @
on such eventualities beyond the control of CBL. 24% p.a.

CBL shall have the right to reject any order based on its risk 50% of the margin required for any trade/position are to be
perception. maintained in the form of cash and the balance 50% in the
form of approved collateral.
CORPORATE BENEFITS; SETTLEMENT CYCLES Interest would be levied on shortfall of 50% Cash for
margins. Further, interest may be levied on not maintaining
The CLIENT should ensure and being aware of the status ofall the collateral in the form of CBL approved securities.
corporate benefits like rights and bonus issues, dividends and
stock splits of shares that he/it intends to trade or which are 5. Right to sell Client's securities or close Client's positions,
held in his/its account. The CLIENT should also be knowing without giving notice to the Client, on account of non-
the correct ISIN Numbers of the shares in his/her/its payment of Client’s dues
account and the eligibility of theshares to meet share pay
in obligations to the Exchange/Clearing Corporation whether The Client shall ensure that before trading adequate upfront
received by wayof purchase, rights, bonuses, stock split, off margins are maintained with the company against exposures
market transfers or otherwise. taken / proposed to be taken. In case there is a shortfall in
margin through pledge & re-pledge mechanism) or other
For the CLIENTS having outstanding obligations on the methods of funding the shortfall of collaterals, CBL shall
settlement date CBL may retain the requisite securities/funds make an earnest attempt to contact the customer over
towards such obligations and may also retain the funds phone or any other means before initiating any close out of
expected to be required to meet marginobligations for next positions, however it is the Client's responsibility to ensure
5 trading days, calculated in the manner specified by the adequacy of margins failing which CBL shall, at its discretion,
relevant exchanges. execute the closeout of positions as it deems fit.

The actual settlement of funds shall be done by CBL, at least Closing out of positions may include positions initiated
once in a calendar quarter or month or in the scenario if there during the trading session/ day, positions carried forward
is inactivity for the last 30 days from the date of settlement/ from previous days/ sessions and liquidation of collateral /
receipt of funds whichever is earlier, depending on the securities held by the Client with Company (that may / maynot
preference of the CLIENT. While settlingthe account, the CBL be kept with the exchange) and liquidation against any
shall send to the CLIENT a 'statementof accounts' containing pending payout obligations expected from the exchange on
an extract from the CLIENT ledger for funds and an extract account of previous transactions. CBL, shall at its discretion,
from the register of securities displaying all execute such close outs in any order of priorityit deems fit to
receipts/deliveries of funds/securities. The statement shall bring back margin adequacy for residual exposures.
also explain the retention of funds/securities and the
details of the pledge, if any. CBL shall not hold any cash delivery position if full payments
are not received by due date. In such events thecompany may
3. Applicable Brokerage rates: sell off such deliveries to the extent of funds shortfall in the
account without reference to the Client even if margins are
Brokerage shall be applied as per the rates agreed upon with maintained as per regular exposure limits offered to the
the Client. The rate of Brokerage shall not exceed the Client.
maximum brokerage permissible under Exchange bye-laws.
CBL shall insist upto 100% of margin in cash and may not
The slab rates of brokerage fixed by CBL are functional ofthe consider the value of securities for the purpose of calculating
quality and cost of services provided to the Client and the margin shortfall and many close the position incase of short
volume and revenue expected from an account. It shall be fall. CBL shall have the right to sell Client's securities or close
reviewed by CBL from time to time and may be increased out Client's open positions but it shall not be under any
with prospective effect at a notice of 15 days sent to the E- obligation to undertake this exercise under any
mail address or postal address of the Client registered with circumstances CBL shall not be under any obligation to
CBL.

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 compensate/ or provide reasons of any delay or omission 7. Conditions under which a Client may not be allowed to
on its part to sell Client's securities or close open positions take further position
of the Client. This option will be exercised solely at the
discretion of CBL. In case the Client does not have adequate margins or scrip-
wise exposure of CBL is breached CBL shall not, at its own
CBL shall also be entitled to sell all or some of the Client’s discretion, allow the Client to take further position.
securities or close out the Client’s open position for Notwithstanding anything specified above, CBL shall
recovery of amounts due and payable by the Client to CBL reserve the right to deny incremental exposure partly or
towards the brokerage fees of CBL. fully across any security owing to various situations
including market dynamics, technology disruptions or any
CBL may, in its sole discretion, square off any outstanding other circumstance beyond the direct control of CBL.
position of the CLIENT due to any restrictionsin relation to
volume of trading/ outstanding business or margins 8. Temporarily suspending or closing a Client’s account at
stipulated by the Exchange, Clearing Corporation/Clearing the Client’s request
House and/or the CBL and/or any other extraordinary
event warranting such square off. • Suspension

CBL to set off credit balances of securities and / or funds, CBL may also suspend the account based on a request
receivables, margins of the CLIENT lying with the CBL or received from the Client provided the Client has given
have lien on such credit balances/ securities, margins, a notice of at least 7 trading days and there is no open
receivables, in or from the accounts of the CLIENT in any of position in all the segments/exchanges and there is no
the segments or exchanges where the CLIENT is registered obligation/debit balance in the account. The account
with CBL, against the debit balances of securities and /or would be settled with the Client before suspending
funds and receivables in one or more of the accounts ofthe the same.
CLIENT in any of the said segments or exchanges, by way
• Closure
of appropriation of the relevant amount of cash or bysale
or transfer of all or some of the securities, and / or any CBL may close the account based on a request
credit in any said accounts of the CLIENT. received from the Client provided the Client has given
a notice of at least 7 trading days, and there is no open
All securities and monies belonging to the CLIENT which
position in any segments/exchanges and there is no
are under the control or possession of CBL shall be subject
obligation/debit balance in the account. The account
to a general lien and / or set off, for discharge of any
would be settled with the Client before closing the
obligation or indebtedness of the CLIENT to CBL. In
same.
enforcing the lien and / or the right to set off, CBL shall
have the sole discretion of determining the manner in 9. Deregistering a Client
which the securities or assets are to be appropriated /
liquidated. CBL may de-register the Client account based on action
taken by SEBI/NSE/BSE or being part of list of debarred
6. Shortages in obligations arising out of internal netting of entities published by SEBI. CBL may also initiate action for
trades deregistering a Client on basis of information found in
sites of CIBIL, Watch out investors, world check or Client
CBL shall have the right to adopt a policy of its choice for
having suspicious back ground, link with suspicious
internal auctions arising out of internal netting of trades
organization, as enumerated in the PMLA guidelines,
and charge to defaulter seller and compensate the
FATF or any other regulator or statutory authority. CBL
impacted purchaser as per the policy. The current
shall have right to close out the existing positions, sell the
procedure for internal auction is displayed on the website,
collaterals to recover its dues, if any, before de-registering
which may be amended from time to time with
the Client. CBL shall have the right to deregister a Client
prospective effect after publishing the same on the
after serving a written notice of one month without
corporate website. This document can be obtained from
assigning any reason thereof.
the office of CBL on demand by the Client.

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 PREVENTION OF MONEY LAUNDERING POLICY (PMLA)

Money Laundering in India The basic objective of the Act is three fold, viz.:

With the growing financial sector, India is vulnerable to • To prevent, combat and control money laundering.
money laundering activities. Some common sources of
illegal proceeds in India are narcotics trafficking, illegal • To confiscate and seize the property obtained from
trade in gems, smuggling, corruption and income tax the laundered money.
evasion. Large portions of illegal proceeds are laundered
through the alternative remittance system called “hawala”. • To deal with any other issue connected with money
Under this system, individuals transfer funds from one laundering in India.
country to another or from one state to another, often Policy on PMLA at Centrum:
without the actual movement of currency.
Centrum has framed a stringent policy with respect to the
Prevention of Money Laundering Act, 2002(PMLA) PMLA wherein adequate checks are made at the time of
To combat money-laundering activities, the Government of acquisition of clients as well as monitoring of day to day
India enacted the Prevention of Money Laundering Act, transactions of clients.
2002 (hereinafter referred to as the “Act”) on January 17, As a part of our endeavor to comply with the provisions of
2003. PMLA we classify the clients into three categories i.e. high,
Securities and Exchange Board of India (hereinafter referred medium and low based on the certain parameters. We have
to as SEBI) vide its Circular Ref No.: ISD/CIR/RR/AML/1/06 appended a Client suitability sheet which enables us to
dated January 18, 2006 laid down broad guidelines on Anti classify the clients which inturn would be beneficial for
Money Laundering Standards. As per the Circular, all the better monitoring of the transactions in your account.
intermediaries registered with SEBI under Section 12 of the Further, we have displayed the policy on the website which
SEBI Act were advised to ensure that a proper policy will enable the clients for better understanding of
framework on anti-money laundering measures was put in provisions of PMLA. We request you to familiarize yourself
place. This was essentially in conformity with the with the same.
Prevention of Money Laundering Act, 2002 and the Rules
framed there under by SEBI.

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 RIGHTS AND OBLIGATIONS OF BENEFICIAL OWNER AND DEPOSITORY PARTICIPANT

General Clause Separate Accounts

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

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

17
 Dos and Don'ts and best practices to be followed for CDSL Demat account holders
In CDSL's endeavor towards making the Indian Securities Market - Transparent, Efficient, & Investor friendly by
providing a safe, reliable, transparent, and trusted record-keeping platform for investors to hold and transfer
securities in dematerialized form, the following are the simple Dos and Don'ts and best practices to be followed by
the investors to protect themselves from fraudulent practices.

1. Verify your transaction statement carefully for all debits and credits in your account. In case of any
unauthorized debit or credit, inform your DP or CDSL.
2. While accepting the Delivery Instruction Slip (DIS) book from your DP, ensure that your BO ID is pre-stamped
on all the pages along with the serial numbers.
3. Keep your DIS book safely and do not sign or issue blank or incomplete DIS slips.
4. Strike out the empty space, if any, in the DIS, before submitting to DP.
5. For market transactions, submit the DIS ahead of the deadline time. DIS can be issued with a future execution
date.
6. The Demat account has a nomination facility and it is advisable to appoint a nominee to facilitate your heirs
in obtaining the securities in your Demat account, on completion of the necessary procedures.
7. To open and operate your Demat account, a copy of the PAN card of all account holders is to be submitted
to the DP along with the original PAN card, for verification.
8. Register for CDSL's SMART (SMS Alerts Related to Transactions) facility. If any unauthorized debit is noticed,
the BO should immediately inform CDSL and the Main DP, in writing. An email may be sent to CDSL
at complaints@cdslindia.com.
9. Register for CDSL's Internet-based facility "easi" to monitor your Demat account yourself: Login
to https://web.cdslindia.com/myeasinew/Registration/EasiRegistration. Contact your DP or visit CDSL's
website: www.cdslindia.com
10. In order to receive all the credits coming to your Demat account automatically, you can give a one-time,
standing instruction to your DP.
11. Before granting Power of Attorney to anyone, to operate your Demat account, carefully examine the scope
and implications of the powers being granted.
12. CDSL sends alerts to investors on their registered mobile number through SMS and e-mail for any
modification done in their master details, debit in Demat account, pledge creation, change in nominee, etc.
13. Pay attention to SMS's and emails regularly sent by CDSL. If you receive an SMS for a transaction not executed
by you, inform your DP/CDSL immediately.
14. Inform your DP of any change in your Personal Information (for example address or Bank Account details,
email ID, Mobile number) linked to your Demat account in the prescribed format and obtain confirmation of
updation in the system.
15. Protect your login details and do not share login credentials with anyone. The password should be unique.
Keep strong and complex passwords and change the password at regular intervals.
16. Do not share the One Time Password (OTP) received from your DP/ CDSL. These are meant to be used by you
only.
17. Do not share login credentials of e-facilities provided by CDSL such as e-DIS, easiest, etc. with anyone else.
18. Do not download any unknown application on your phone/device. The application may access your
confidential data secretly.
19. Exercise the option to freeze the Demat account if not being used for a long duration.
20. Ensure that your holding and transaction statements are received periodically as instructed to your DP. You
are entitled to receive a transaction statement every month if you have any transactions.
21. Check your Demat account statement on receipt. In case you notice any unauthorized debits or credits,
contact your DP for clarification. If not resolved, you may lodge your complaint by
visiting www.cdslindia.com Post Your Grievances (https://www.cdslindia.com/Footer/grievances.aspx)

18
Addendum to the Rights and Obliga ons of Stock Brokers, Sub-Brokers and Clients (as prescribed by SEBI and Stock
Exchanges), Do’s and Don’ts & Policy, Procedure pursuant to SEBI’S circular & Running Account Authorisa on clauses
with respect to Se lement of Securi es with effect from October 1, 2019

In compliance with the provisions of SEBI circular CIR/HO/MIRSD/DOP/CIR/P/2019/75 dated June 20, 2019 on
Handling of Clients Securi es by Trading Members/Clearing Members and subsequent FAQs issued by Exchanges
thereto, the following documents:

I. Rights and Obliga ons applicable to Stock Brokers, Sub-Brokers and Clients (R&O),

II. Do’s and Don’ts,

III. Policy and Procedures

Shall be modified by inser ng the following clauses:

1. In terms of extant regula ons of SEBI and Stock Exchanges Trading Member are required to transfer the clients
securi es received in pay-out to clients demat account within one working day. In case the client does not pay for
such securi es received in pay-out, then the TM/CM shall be en tled to retain those securi es up to five trading days
a er pay-out. Further if the Client fails to meet its funds pay-in obliga on (i.e. clear funds to be received) within 5
trading days (i.e. T+2+5 = 7 days) from the pay-out date in such circumstances CBL shall liquidate the securi es in the
market to recover the dues and in such trades client`s pre-trade confirma on is not required.
a) Under no circumstances, shall the securi es of the clients received in pay-out be retained by the TM/CM beyond five
trading days and be used for any other purpose.

b) The securi es received in pay-out against which payment has been made by clients, shall be transferred to the demat
account of the respec ve clients within one working day of the pay-out. Such securi es shall be transferred directly
from the pool account of the TM/CM to the demat account of the respec ve client.

c) With regard to securi es that have not been paid for in full by the clients (unpaid securi es), Such Unpaid securi es
shall be transferred to “client unpaid securi es account” from the pool account.

d) The securi es kept in the ‘client unpaid securi es account’ shall either be transferred to the demat account of the
respec ve client upon fulfilment of client’s funds obliga on or shall be disposed of in the market by TM/CM within
five trading days a er the pay-out.

e) The unpaid securi es shall be sold from the Unique Client Code (UCC) of the respec ve client. Profit/loss on the sale
transac on of the unpaid securi es, if any, shall be transferred to/adjusted from the respec ve client account.

f) In case the clients’ securi es are kept in the ‘client unpaid securi es account’ beyond seven trading days a er the
pay-out, the depositories shall under their bye-laws levy appropriate penal es upon the broker(CBL) which shall not
be permi ed to be recovered from the client.
2. Further The Running Account Authorisa on authorisa on given by the Clients along with KYC documents or
st
otherwise with respect to Se lement of Securi es & funds stands automa cally modified and from 1 October 2019
onwards such authorisa on shall be applicable only for “funds” of the clients.

However in terms of FAQs released by exchanges CBL is allowed to retain securi es up to 225% of T Day Margin
Requirement in Deriva ves segment for se lement of client accounts so held in “Client Collateral/Collateral”
account. Provided excess securi es if any are released to the clients along with their funds at the me of quarterly
/monthly se lement of the funds to the client.

This document form an integral part of the R & O, Do's and Don'ts, Policy & Procedures and RAA as addendum.

Sd/-

19
19
Addendum to the Rights and Obligations Documents (Annexure-4 of SEBI circular no. CIR/MIRSD/16/2011 dated
August 22, 2011), pursuant to SEBI’S circular with respect to Execution of “Demat Debit and Pledge Instructions (DDPI)
with effect from September 1, 2022
“The stock broker / stock broker and depository participant shall not directly / indirectly compel the clients to execute
Power of Attorney (PoA) or Demat Debit and Pledge Instruction (DDPI) or deny services to the client if the client
refuses to execute PoA or DDPI.”

20
 DOCUMENT OF RIGHTS AND OBLIGATIONS OF THE CLEARING MEMBER/PARTICIPANT AND ITS CLIENT IN
RELATION TO THE SECURITIES LENDING AND BORROWING SCHEME

1.
The Securi es and Exchange Board of India (“SEBI”) has formulated and issued the Securi es Lending Scheme, 1997
(“SEBI Scheme”) and SEBI Circular No MRD/DoP/SE/Dep/Cir-14/2007 dated 20th December 2007 for facilita ng
lending and borrowing of securi es through an “Approved Intermediary" registered with SEBI.

2.
The Na onal Securi es Clearing Corpora on is an Approved Intermediary (“AI”) registered under the SEBI Scheme
and is, therefore, authorised to facilitate lending and borrowing of securi es in accordance with the SEBI Scheme
and Circulars of SEBI issued from me to me. Accordingly, the AI has framed the Securi es Lending and Borrowing
Scheme (hereina er referred to as “SLBS”) for facilita ng lending and borrowing of securi es through persons
registered as “Par cipants”.

3.
SEBI, therea er, vide its Circular No. CIR/NRD/DP/19/2014 dated June 3, 2014 (“SEBI Circular”) has modified the
framework of Securi es Lending and Borrowing. Under the said SEBI Circular, AI shall enter into an agreement with
its Clearing Member/Par cipant (“Agreement”) for the purpose of facilita ng Securi es Lending and Borrowing and
which shall specify the rights, responsibili es and obliga ons of the AI and the Clearing Member/Par cipant
(“Par cipant”). The said Agreement shall also define the exact role of AI/Par cipant vis-à-vis the Client of
Par cipant. As per the said SEBI Circular, AI is also required to frame rights and obliga ons document laying down the
rights and obliga ons of the Par cipant and its Client for the purpose of Securi es Lending and Borrowing. The said
rights and obliga ons document shall be mandatory and binding on the Par cipant. Accordingly, the AI has framed
this rights and obliga ons document laying down the rights and obliga ons of Par cipant as well as of its Client
(“Rights & Obliga ons Document”).

4.
Securi es Lending and Borrowing can be undertaken by the Par cipant either on their own account or on account of
its Client registered with them. Any person(s) who meets the eligibility criteria as may be specified by the AI for the
Clients under the SLBS, shall be eligible to par cipate in the SLBS by submi ng duly signed relevant
documenta on/s to the Par cipant that it is desirous of par cipa ng in the SLBS. The Par cipant on the receipt of
said relevant documenta on/s from its Client, shall provide this Rights & Obliga ons Document to its Client which
will be duly acknowledged by the Client of having read, understood and to agreeing to abide by the same prior to the
execu on of trade in the SLBS. The terms and condi ons of this Rights & Obliga ons Document shall be binding on
the Par cipant as well as on its Client.

5.
All the transac ons under the SLBS by the Client shall be strictly in accordance with SEBI Scheme, Circulars of SEBI,
SLBS and the Circulars issued thereunder and the Rules, Byelaws, Regula ons of the AI as a Clearing Corpora on as
applicable and the terms and condi ons of the said Agreement. In the event of any conflict or contradic on between
the provisions of the SEBI Scheme, Circulars of SEBI, SLBS and the Circulars issued thereunder and the Rules,
Byelaws, Regula ons of the AI as a Clearing Corpora on as applicable and the terms and condi ons of the said
Agreement and this Rights & Obliga ons Document, the provisions of the SEBI Scheme, Circulars of SEBI, SLBS and
the Circulars issued thereunder, the Rules, Byelaws and Regula ons of the AI as a Clearing Corpora on and the terms
and condi ons of the said Agreement shall prevail over this Rights & Obliga ons Document. The provisions of this
Rights & Obliga ons Document are in addi on thereto and not in deroga on thereof.

6.
The Par cipant has made the Client aware of and the Client has understood the precise nature of the Par cipant's
liability towards the Client under SLBS including any limita ons on the liability and the capacity in which the
Par cipant acts.

7.
Subject to the SEBI Scheme, Circulars of SEBI, SLBS and Circulars issued thereunder, and/or the Rules, Byelaws,
Regula ons of the AI as a Clearing Corpora on as applicable and as in force from me to me, the rights and
obliga ons of the Par cipant as well as its Client shall be hereto as under.

8.
Unless the context otherwise requires, the words and expressions used herein shall have the same meaning as
defined in Securi es Contracts (Regula on) Act, 1956 or Securi es and Exchange Board of India Act, 1992 or
Securi es Lending Scheme, 1997 or Depositories Act, 1996 or the rules and regula ons made thereunder
respec vely or Circulars of SEBI or SLBS and the Circulars issued thereunder and the Rules, Byelaws and Regula ons

21
 of the AI as a Clearing Corpora on.
RIGHTS OF THE PARTICIPANT

9.
In considera on of the Par cipant providing full-fledged securi es lending and borrowing under the SLBS,
the Par cipant shall be en tled for charges, fees, other levies and /or any such other charges, subject to
such limits as may be permi ed by the AI in its Circulars from me to me.

10.
Margins

The Par cipant is empowered to call upon its Client to pay such margins as may be specified by the AI from
me to me.

11.
Recovery
The Par cipant shall be en tled to recover from the Client the loss or charges, fees, other levies and /or any
such other charges that has been paid by the Par cipant to the AI or imposed by the AI on account of its
Client arising out of default or transac ons under the SLBS whether current or past that are effected by the
Client in mee ng its obliga ons by adjus ng margins and other deposits, if any, available with the
Par cipant against the Client's liabili es / obliga ons.

OBLIGATIONS OF THE PARTICIPANT

12.
The Par cipant has sa sfied itself about the genuineness and financial soundness of the Client and the
objec ves relevant to the services to be provided and is therefore, agreeable to facilita ng such
par cipa on subject to the terms and condi ons contained herein.

13.
Issue of Confirma on Memo

The Par cipant shall, upon execu on of the Client's transac on on the order matching pla orm of the AI,
issue the confirma on memo in the specified format or such other documents to the Client within such
me as may be prescribed by the AI from me to me.

14.
Money / Securi es to be kept in separate account

The Par cipant agrees that the money / securi es deposited by the Client shall be kept in a separate bank
account / se lement demat account, dis nct from its own account or accounts of any other Clients, and
shall not be used by the Par cipant for itself or for any other Clients or for any purpose other than the
purposes men oned in the SEBI Scheme, Circulars of SEBI, SLBS and Circulars issued thereunder and/or the
Rules, Byelaws, Regula ons of the AI as a Clearing Corpora on and as in force from me to me.

15.
Update on Se lement Process

The Par cipant agrees to inform and keep the Client apprised about securi es lending and borrowing
se lement cycles, delivery/payment schedules and any changes therein from me to me.

16.
Compliance with Know Your Client Norms

The Par cipant undertakes to maintain the “Know Your Client” details of the Client as men oned in the
Client Registra on Form or any other informa on pertaining to the Client in confidence and that it shall not
disclose the same to any person / authority except to the AI or as required under any law / regulatory
requirements or in compliance with any decree, order or direc on of any Court, Tribunal, SEBI or other
authority duly empowered in law; Provided however that the Par cipant may so disclose informa on
about its Client to any person or authority with the express permission of the Client.

17.
Reconcilia on of Account

The Par cipant and the Client shall agree to reconcile their accounts regularly with reference to the
transac ons under the SLBS.

18.
Return of Securi es and Lending Fees

Where the Client is a lender unless otherwise agreed upon between the Par cipant and the Client -
a)



The Par cipant shall ensure the return of securi es to the Client by transferring the same to the Client's
account within such me as may be prescribed by the AI.
b) The Par cipant shall ensure the return of the lending fees to the Client within such me as may be

22
 prescribed by the AI.

19.
Delivery of Securi es

Where Client is a borrower unless otherwise agreed upon between the Par cipant and the Client –The
Par cipant shall ensure the delivery of securi es to the Client by transferring the same to the Client's
account within such me as may be prescribed by the AI.

RIGHTS OF THE CLIENT

20.
Where the Client is the lender unless otherwise agreed upon between the Par cipant and the Client -
a)
The Client shall be en tled to receive the securi es lent or financial compensa on in lieu thereof,
computed in such manner as may be specified by the AI from me to me.
b)
The Client shall be en tled to receive lender's fee for the securi es lent.

21.
Where the Client is the borrower unless otherwise agreed upon between the Par cipant and the Client -
a)
The Client shall be en tled to receive securi es borrowed or financial compensa on in lieu thereof,
computed in such manner as may be specified by the AI from me to me.
b)
The Client shall be en tled to receive from the Par cipant, the collateral in case the Client has
deposited securi es approved by the AI as collateral.

22.
Notwithstanding any other provisions of the said Agreement and this Rights & Obliga ons Document, the
Client shall be en tled to have all the rights that are conferred on it from me to me under the SEBI
Scheme, Circulars of SEBI, SLBS and the Circulars issued thereunder.

OBLIGATION OF THE CLIENT

23.
Abide by Law & Acquaintance to Law
The Par cipant declares that it has brought the contents of the SEBI Scheme, Circulars of SEBI, SLBS and the
Circulars issued thereunder from me to me, and the terms and condi ons of the said Agreement to the
no ce of the Client and the Client agrees to comply with and adhere to the same.

24.
Update & Comply with the Se lement Process

Notwithstanding anything contained in Clause 15 hereto, the Client shall at all mes make its own inquiries
and keep itself updated on all se lement cycles, delivery/payment schedules and changes therein, and it
shall be the responsibility of the Client to comply with such schedules/procedures of the AI.

25.
Processing Charges

The Client agrees to pay the Par cipant, processing charges and statutory levies prevailing from me to
me or any other charges for the services provided by the Par cipant. The Par cipant agrees that it shall
not charge processing charges / fees beyond the maximum limit permissible under the SEBI Scheme,
Circulars of SEBI, SLBS and the Circulars issued thereunder from me to me.

26.
Change in Client Registra on Form

The Client agrees to immediately no fy the Par cipant in wri ng whenever there is any change of
informa on in the details provided by the Client to the Par cipant at the me of its registra on with the
Par cipant and also as provided in the said relevant documenta on/s required for par cipa ng in SLBS.

27.
Authorised Representa ve

The Client agrees to be bound by the instruc ons issued by its authorised representa ve, if any, in
accordance with the le er authorising the said representa ve to deal on its behalf.

28.
Return of Securi es

The Client shall return the equivalent number of securi es of the same type and class borrowed by it within
the me specified by the AI in the Circulars issued from me to me.

23
29.
Payment of Margins
The Client agrees to pay such margins as may be specified by the Par cipant in accordance with the
requirement of AI or SEBI from me to me.

30.
Exposure / Posi on Limits

The Client agrees to abide by the exposure / posi on limits, if any, set by the Par cipant or the AI or SEBI
from me to me.

31.
Securi es lent to be Unencumbered

The Client agrees and warrants that the securi es lent are free from lien, charge, pledge or any
encumbrance(s) of whatsoever nature.

32.
Collateral
At the discre on of the Par cipant, where the Client deposits the required collateral with the
Par cipant, the same shall be free from any encumbrance(s) of whatsoever nature or defect in the tle.
If any encumbrance(s) or defect in the tle is found subsequently, such collateral shall be immediately
replaced by the Client.

33.
Insolvency
The Client agrees to immediately furnish informa on to the Par cipant in wri ng, if any winding up
pe on or insolvency pe on has been filed or any winding up or insolvency order or decree or award is
passed against it or if any li ga on which may have material adverse bearing on its net worth has been
filed against it.

34.
Cancella on of Transac ons

Notwithstanding anything contained in the said Agreement, the AI shall be en tled to cancel
transac ons under the SLBS, either on an applica on by a Par cipant or suo moto or under regulatory
direc ons, and in such event, the transac ons done on behalf of the Client shall ipso facto stand
cancelled, and neither the AI nor the Par cipant shall be liable to compensate the Client for any loss
whatsoever (including opportunity loss) arising out of such cancella on.

35.
Discon nua on of SLBS and Par cipa on in SLBS

The AI shall be en tled to discon nue the SLBS or the par cipa on of the Par cipant in the SLBS at any
me at its discre on. Such discon nua on may be subject to such terms and condi ons as may be
specified by the AI from me to me.

ARBITRATION
36.
The Par cipant and the Client shall co-operate with each other and / or the AI in redressing their
grievances in respect of transac ons under the SLBS.

37.
All disputes and differences or ques ons arising out of or in rela on to this agreement including
obliga ons, failure or breach thereof by any of the par es and/or of any ma er whatsoever arising out
of this agreement shall in the first instance be resolved mutually by the par es. If the par es fail to
resolve the same mutually, then the same shall be referred to and decided by arbitra on in accordance
with the procedures as prescribed by the AI under the SLBS and the Circulars issued thereunder.

GOVERNING LAW AND JURISDICTION

38.
In rela on to any legal ac on or proceedings to which the AI is a party, the Par cipant as well as the
Client irrevocably submit to the exclusive jurisdic on of the courts of Mumbai, India and waive any
objec on to such proceedings on grounds of venue or on the grounds that the proceedings have been
brought in an inconvenient forum.

39.
In rela on to any legal ac on or proceedings to which AI is not a party, the par es irrevocably submit to
the jurisdic on of any competent court of law where the Client ordinarily resides at the me of

24
 Investor Charter – Stock Brokers
VISION
To follow the highest standards of ethics and compliances while facilitating the trading by clients in
securitiesin a fair and transparent manner, so as to contribute in creation of wealth for investors.

MISSION

i) To provide high quality and dependable service through innovation, capacity

enhancementand use of technology.
ii) To establish and maintain a relationship of trust and ethics with the investors.
iii) To observe highest standard of compliances and transparency.
iv) To always keep ‘protection of investors’ interest’ as goal while providing service.

Services provided to Investors

• Execution of trades on behalf of investors.
• Issuance of Contract Notes.
• Issuance of intimations regarding margin due payments.
• Facilitate execution of early pay-in obligation instructions.
• Settlement of client’s funds.
• Intimation of securities held in Client Unpaid Securities Account (CUSA) Account.
• Issuance of retention statement of funds.
• Risk management systems to mitigate operational and market risk.
• Facilitate client profile changes in the system as instructed by the client.
• Information sharing with the client w.r.t. exchange circulars.
• Redressal of Investor’s grievances.

Rights of Investors
• Ask for and receive information from a firm about the work history and background of the
personhandling your account, as well as information about the firm itself.
• Receive complete information about the risks, obligations, and costs of any
investmentbefore investing.
• Receive recommendations consistent with your financial needs and investment objectives.
• Receive a copy of all completed account forms and agreements.
• Receive account statements that are accurate and understandable.
• Understand the terms and conditions of transactions you undertake.
• Access your funds in a timely manner and receive information about any restrictions
orlimitations on access.

25
 • Receive complete information about maintenance or service charges, transaction or
redemption fees, and penalties.
• Discuss your grievances with compliance officer of the firm and receive prompt attention
to and fair consideration of your concerns.

Various activities of Stock Brokers with timelines

S. No. Activities Expected Timelines
1. KYC entered into KRA System and CKYCR 10 days of account opening

2. Client Onboarding Immediate, but not later than one week

3. Order execution Immediate on receipt of order, but not
later than the same day
4. Allocation of Unique Client Code Before trading
5. Copy of duly completed Client 7 days from the date of upload of Unique
Registration Documents to clients ClientCode to the Exchange by the trading
member
6. Issuance of contract notes 24 hours of execution of trades
7. Collection of upfront margin from Before initiation of trade
client
8. Issuance of intimations regarding At the end of the T day
othermargin due payments
9. Settlement of client funds 30 days / 90 days for running account settlement
(RAS) as per the preference of client.
If consent not given for RAS – within 24hours
of pay-out

10. ‘Statement of Accounts’ for Funds, Weekly basis (Within four trading days of
Securities and Commodities following week)
11. Issuance of retention statement of 5 days from the date of settlement
funds/commodities
12. Issuance of Annual Global 30 days from the end of the financial year
Statement
13. Investor grievances redressal 30 days from the receipt of the complaint

DOs and DON’Ts for Investors

DOs DON’Ts
1. Read all documents and conditions being agreed 1. Do not deal with unregistered
before signing the account opening form. stockbroker.
2. Receive a copy of KYC, copy of account opening 2. Do not forget to strike off blanks in
documents and Unique Client Code. your account opening and KYC.
3. Read the product / operational framework / timelines 3. Do not submit an incomplete
related to various Trading and Clearing & Settlement account opening and KYC form.
processes.

26
 4. Receive all information about brokerage, fees and 4. Do not forget to inform any change
other charges levied. in information linked to trading
5. Register your mobile number and email ID in your account and obtain confirmation of
trading, demat and bank accounts to get regular alerts updation in the system.
on your transactions. 5. Do not transfer funds, for the
6. If executed, receive a copy of Power of Attorney. purposes of trading to anyone other
However, Power of Attorney is not a mandatory than a stock broker. No payment
requirement as per SEBI / Stock Exchanges. Before should be made in name of
granting Power of Attorney, carefully examine the employee of stockbroker.
scope and implications of powers being granted. 6. Do not ignore any emails / SMSs
received with regards to trades
7. Receive contract notes for trades executed, showing
done, from the Stock Exchange and
transaction price, brokerage, GST and STT etc. as
raise a concern, if discrepancy is
applicable, separately, within24 hours of execution of
observed.
trades.
7. Do not opt for digital contracts, if not
8. Receive funds and securities / commodities on time familiar with computers.
within 24 hours from pay-out.
8. Do not share trading password.
9. Verify details of trades, contract notes and statement 9. Do not fall prey to fixed /
of account and approach relevant authority for any guaranteed returns schemes.
discrepancies. Verify trade details on the Exchange 10. Do not fall prey to fraudsters
websites from the trade verification facility provided by sending emails and SMSs luring to
the Exchanges. trade in stocks / securities
10. Receive statement of accounts periodically. If opted for promising huge profits.
running account settlement, account has to be settled 11. Do not follow herd mentality for
by the stock broker as per the option given by the client investments. Seek expert and
(30 or 90 days). professional advice for your
11. In case of any grievances, approach stock broker or investments.
Stock Exchange or SEBI for getting the same resolved
within prescribed timelines.

Grievance Redressal Mechanism

Level 1 – Approach the Stock Broker at the designated Investor Grievance e-mail ID of the stock broker.
The Stock Broker will strive to redress the grievance immediately, but not later than 30 days of the receipt
of the grievance.
Level 2 – Approach the Stock Exchange using the grievance mechanism mentioned at the website of the
respective exchange.
Complaints Resolution Process at Stock Exchange explained graphically:

27
 Complaint Lodged by Client

Client not satisfied with

GRC Order
• Shared with broker • File for Arbitration
• Broker Explanation • Arbitration Award
shared with client • Place before GRC passed • File for Appellate
• Amicable resolution • GRC order acceptable Arbitration
attempted by client, the complaint • Appellate Award
stands resolved passed

Client not satisfied with Client not satisfied with Client not satisfied with
explanation from Broker Arbitration Award Appellate Arbitration Award

Client may file suit before

appropriate Court

Timelines for complaint resolution process at Stock Exchanges against stock brokers
S. No. Type of Activity Timelines for activity
1. Receipt of Complaint Day of complaint (C Day).
2. Additional information sought from the C + 7 Working days.
investor, if any, and provisionally forwarded
to stock broker.
3. Registration of the complaint and C+8 Working Days i.e. T day.
forwarding to the stock broker.
4. Amicable Resolution. T+15 Working Days.
5. Refer to Grievance Redressal Committee T+16 Working Days.
(GRC), in case of no amicable resolution.

6. Complete resolution process post T + 30 Working Days.

GRC.
7. In case where the GRC Member requires T + 45 Working Days.
additional information, GRC order shall be
completed within.
8. Implementation of GRC Order. On receipt of GRC Order, if the order is in favour of
the investor, debit the funds of the stock broker.
Order for debit is issued immediately or as per the
directions given Ingra order.

9. In case the stock broker is aggrieved by the

GRC order, will provide intention to avail
arbitration Within 7 days from receipt of order

28
 S. No. Type of Activity Timelines for activity
10. Investor is eligible for interim relief from Investor
Protection Fund (IPF).The interim relief will be 50%
of the GRC order amount or Rs.2 lakhs whichever is
If intention from stock broker is received and less. The same shall be provided after obtaining an
the GRC order amount is upto Rs.20 lakhs Undertaking from the investor.

11. Within 6 months from the date of GRC

Stock Broker shall file for arbitration recommendation
12. The GRC order amount shall be released to the
In case the stock broker does not file investor after adjusting the amount released as
forarbitration within 6 months interim relief, if any.

Handling of Investor’s claims / complaints in case of default of a Trading Member /Clearing Member
(TM/CM)

Default of TM/CM
Following steps are carried out by Stock Exchange for benefit of investor, in case stock broker defaults:
• Circular is issued to inform about declaration of Stock Broker as Defaulter.
• Information of defaulter stock broker is disseminated on Stock Exchange website.
• Public Notice is issued informing declaration of a stock broker as defaulter and inviting claims
withinspecified period.
• Intimation to clients of defaulter stock brokers via emails and SMS for facilitating lodging
ofclaims within the specified period.

Following information is available on Stock Exchange website for information of investors:

• Norms for eligibility of claims for compensation from IPF.
• Claim form for lodging claim against defaulter stock broker.
• FAQ on processing of investors’ claims against Defaulter stock broker.
• Provision to check online status of client’s claim.

Level 3 – The complaint not redressed at Stock Broker / Stock Exchange level, may be lodged with SEBI on
SCORES (a web based centralized grievance redressal system of SEBI) @
https://scores.gov.in/scores/Welcome.html
Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints
on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal
of the grievances.

29
INVESTOR CHARTER FOR DEPOSITORIES AND DEPOSITORY PARTICIPANTS ANNEXURE A

1. Vision
Towards making Indian Securities Market - Transparent, Efficient, & Investor friendly by providing safe,
reliable, transparent and trusted record keeping platform for investors to hold and transfer securities
in dematerialized form.

2. Mission
 To hold securities of investors in dematerialized form and facilitate its transfer, while ensuring
safekeeping of securities and protecting interest of investors.

 To provide timely and accurate information to investors with regard to their holding and transfer of
securities held by them.

 To provide the highest standards of investor education, investor awareness and timely services so
as to enhance Investor Protection and create awareness about Investor Rights.

3. Details of business transacted by the Depository and Depository Participant (DP)

A Depository is an organization which holds securities of investors in electronic form. Depositories

provide services to various market participants - Exchanges, Clearing Corporations, Depository
Participants (DPs), Issuers and Investors in both primary as well as secondary markets. The depository
carries out its activities through its agents which are known as Depository Participants (DP). Details
available on the link [https://www.cdslindia.com/DP/dplist.aspx].

4. Description of services provided by the Depository through Depository Participants (DPs) to

investors

(1) Basic Services

Sr. Brief about the Activity /Service Expected Timelines for processing by the
no. DPafter receipt of proper documents
1. Dematerialization of securities 7 days

2. Rematerialization of securities 7 days

3. Mutual Fund Conversion 5 days

/Destatementization

30
 Brief about the Activity /Service Expected Timelines for processing by the
Sr. DPafter receipt of proper documents
no.
4. Re-conversion / 7 days
Restatementisation of Mutual
fundunits

5. Transmission of securities 7 days

6. Registering pledge request 15 days

7. Closure of demat account 30 days

8. Settlement Instruction Depositories to accept physical DIS for pay-in of

securities up to 4 p.m. and DIS in electronic form
up to 6 p.m. on T+1 day

(2) Depositories provide special services like pledge, hypothecation, internet-based services etc.
inaddition to their core services and these include

Sr. Type of Activity /Service Brief about the Activity / Service

no.
1. Value Added Services Depositories also provide value added
servicessuch as

a. Basic Services Demat Account (BSDA)

b. Transposition cum dematerialization
c. Linkages with Clearing System
d. Distribution of cash and non-cash corporate
benefits (Bonus, Rights, IPOs etc.), stock
lending, demat of NSC / KVP,
demat of warehouse receipts etc.

2. Consolidated Account CAS is issued 10 days from the end of the month
statement (CAS) (if there were transactions in the previous
month) or half yearly (if no transactions).

3. Digitalization of services Depositories offer below technology solutions

provided by the depositories and e-facilities to their demat account holders
through DPs:

31
 Sr. Type of Activity /Service Brief about the Activity / Service
no.
a. E-account opening: Details available on the link
b. Online instructions for execution: Details
available on the link
c. e-DIS / Demat Gateway: Details available
on the link
d. e-CAS facility: Details available on the link
e. Miscellaneous services: Details available on
the link

4. Details of Grievance Redressal Mechanism

(1) The Process of investor grievance redressal

1. Investor Complaint/ Investor can lodge complaint/ grievance against the

Grievances Depository/DP in the following ways:

a. Electronic mode -
(i) SCORES (a web based centralized grievance
redressal system of SEBI)
[https://www.scores.gov.in/scores/Welcome.h
tml]
(ii) Respective Depository’s web portal dedicated
forthe filing of compliant
[https://www.cdslindia.com/Footer/grievances.
aspx]
(iii) Emails to designated email IDs of Depository
[complaints@cdslindia.com]
b. Offline mode

The complaints/ grievances lodged directly with the

Depository shall be resolved within 30 days.

Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing
complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication,
Speedy redressal of the grievances.

32
 2. Investor Grievance If no amicable resolution is arrived, then the Investor has
Redressal Committee of the option to refer the complaint/ grievance to the
Depository Grievance Redressal Committee (GRC) of the Depository.
Upon receipt of reference, the GRC will endeavor to
resolve the complaint/ grievance by hearing the parties
and examining the necessaryinformation and documents.

3. Arbitration The Investor may also avail the arbitration mechanism set
proceedings out in the Byelaws and Business Rules/Operating
Instructions of the Depository in relation to any grievance,
or dispute relating to depository services. The arbitration
reference shall be concluded by way of issue of an arbitral
award within 4 months from the date of appointment of
arbitrator(s).

(2) For the Multi-level complaint resolution mechanism available at the Depositories please
referto link

5. Guidance pertaining to special circumstances related to market activities: Termination of

theDepository Participant

Sl Type of special circumstances Timelines for the Activity/ Service

No.
1.  Depositories to terminate the Client will have a right to transfer all its
participation in case a participant nolonger securities to any other Participant of its
meets the eligibility criteria and/or any choice without any charges for the transfer
other grounds as mentioned in the bye within 30 days from the date of intimation
laws like suspension of trading member by by way of letter/email.
the Stock Exchanges.

 Participant surrenders the participation by

its own wish.

6. Dos and Don’ts for Investors

For Do’s and Don’ts please refer to the link

7. Rights of investors

For rights, please refer to the link

33
8. Responsibilities of Investors
For responsibilities, please refer to the link

34
 Annexure- A
Investor Charter in respect of Research Analyst (RA)

A. Vision and Mission Statements for investors.

 Vision

Invest with knowledge & safety.

 Mission

Every investor should be able to invest in right investment products based on their
needs, manage and monitor them to meet their goals, access reports and enjoy
financial wellness.

B. Details of business transacted by the Research Analyst with respect to the investors.
 To publish research report based on the research activities of the RA.
 To provide an independent unbiased view on securities.
 To offer unbiased recommendation, disclosing the financial interests in
recommended securities.
 To provide research recommendation, based on analysis of publicly
availableinformation and known observations.
 To conduct audit annually.

C. Details of services provided to investors (No Indicative Timelines)

 Onboarding of Clients.
 Disclosure to Clients
o To distribute research reports and recommendations to the clients
without discrimination.

 To maintain confidentiality w.r.t publication of the research report until made

available in the public domain.

35
D. Details of grievance redressal mechanism and how to access it

In case of any grievance / complaint, an investor should approach the concerned research
analyst and shall ensure that the grievance is resolved within 30 days.

If the investor’s complaint is not redressed satisfactorily, one may lodge a complaint with SEBI
on SEBI’s SCORES portal which is a centralized web based complaints redressal system. SEBI
takes up the complaints registered via SCORES with the concerned intermediary for timely
redressal. SCORES facilitates tracking the status of the complaint.

With regard to physical complaints, investors may send their complaints to: Office of Investor
Assistance and Education, Securities and Exchange Board of India, SEBI Bhavan. Plot No. C4-
A, ‘G’ Block, Bandra-Kurla Complex, Bandra (E),Mumbai - 400 051.
E. Expectations from the investors (Responsibilities of investors).
 Do’s
i. Always deal with SEBI registered Research Analyst.
ii. Ensure that the Research Analyst has a valid registration certificate.
iii. Check for SEBI registration number.
iv. Please refer to the list of all SEBI registered Research Analysts which is available on
SEBI website in the following link:
(https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes
&intmId=14)

v. Always pay attention towards disclosures made in the research reports before
investing.
vi. Pay your Research Analyst through banking channels only and maintain duly
signedreceipts mentioning the details of your payments.
vii. Before buying securities or applying in public offer, check for the research
recommendation provided by your research Analyst.
viii. Ask all relevant questions and clear your doubts with your Research Analyst
beforeacting on the recommendation.

36
ix. Inform SEBI about Research Analyst offering assured or guaranteed returns.
 Don’ts
i. Do not provide funds for investment to the Research Analyst.
ii. Don’t fall prey to luring advertisements or market rumours.
iii. Do not get attracted to limited period discount or other incentive, gifts, etc.
offered by Research Analyst.
iv. Do not share login credentials and password of your trading and demat Accounts
withthe Research Analyst.

37
 Annexure-I: Risk disclosures

RISK DISCLOSURES ON DERIVATIVES

 9 out of 10 individual traders in equity Futures and Options Segment, incurred net
losses.

 On an average, loss makers registered net trading loss close to ₹ 50,000.

 Over and above the net trading losses incurred, loss makers expended an
additional 28% of net trading losses as transaction costs.

 Those making net trading profits, incurred between 15% to 50% of such profits as
transaction cost.

Source:

SEBI study dated January 25, 2023 on “Analysis of Profit and Loss of Individual Traders dealing in
equity Futures and Options (F&O) Segment”, wherein Aggregate Level findings are based on annual
Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.

38
 Correspondence Address: Centrum House, CST Road, Vidya Nagari Marg, Kalina, Santacruz (East), Mumbai - 400 098.
SEBI Single Registration No.:- INZ000205331
CDSL DP ID: 12200. SEBI REGISTRATION NO.: IN-DP-537-2020
PMS REGISTRATION NO.: INP000004383
SEBI Registered Research Analyst INH000001469
Investor Grievance Email ID: investor.grievances@centrum.co.in Website: www.centrumbroking.com

Version : 6/2022