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INSP60147

The document discusses the most important terms and conditions for trading accounts that are non-custodial settled. It outlines 10 key points including assigning a unique client code, placing required collaterals as margins, receiving contract notes within 24 hours of trade, and procedures for raising grievances.

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rala.mitraji
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19 views3 pages

INSP60147

The document discusses the most important terms and conditions for trading accounts that are non-custodial settled. It outlines 10 key points including assigning a unique client code, placing required collaterals as margins, receiving contract notes within 24 hours of trade, and procedures for raising grievances.

Uploaded by

rala.mitraji
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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To All Members,

Sub: Most Important Terms and Conditions (MITC)

This is with reference to SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/180 dated


November 13, 2023 (Exchange Circular NSE/INSP/59367 dated November 15, 2023) on “Most Important
Terms & Conditions (MITC)”.

The standard Most Important Terms and Conditions as finalized in accordance with point no. 4 of the
aforesaid SEBI Circular is enclosed herewith as Annexure A.

With respect to new clients onboarded from April 01, 2024 onwards, the MITC shall required to be
acknowledged i.e. duly signed by the client.

Further, in accordance with aforesaid SEBI circular dated November 13, 2023, members are also requested
to note that the MITC shall be informed by members to their existing clients by June 01, 2024 via email or
any other suitable mechanism which can be preserved. In case if communication gets bounced/undelivered,
the same shall be communicated through alternate channels to such clients. Other suitable mechanism may
include physical delivery/SMS/electronic instant messaging services after adhering with the safeguards
prescribed under Exchange Circular NSE/INSP/52604 dated June 10, 2022 on Issuance of Electronic
Contract Notes (ECN) through SMS/electronic instant messaging services.

Members are advised to take note of the contents of the circular and comply.
For and on behalf of
National Stock Exchange of India Limited

Chirag Shah
Senior Manager – Inspection

In case of any clarifications, Members may contact our below offices:

Regional Office E MAIL ID CONTACT NO.


Ahmedabad (ARO) inspectionahm@nse.co.in 079- 49008632
Chennai (CRO) inspection_cro@nse.co.in 044- 66309915 / 17
Delhi (DRO) delhi_inspection@nse.co.in 011- 23459127 / 38 / 46
Kolkata (KRO) inspection_kolkata@nse.co.in 033- 40400455 / 459
Mumbai (WRO) compliance_wro@nse.co.in 022-26598200 / 022-61928200
Central Help Desk compliance_assistance@nse.co.in
Annexure A
Most Important Terms and Conditions (MITC)
(For non-custodial settled trading accounts)
1. Your trading account has a “Unique Client Code” (UCC), different from your demat account number.
Do not allow anyone (including your own stock broker, their representatives and dealers) to trade in your
trading account on their own without taking specific instruction from you for your trades. Do not share
your internet/ mobile trading login credentials with anyone else.
2. You are required to place collaterals as margins with the stock broker before you trade. The collateral
can either be in the form of funds transfer into specified stock broker bank accounts or margin pledge of
securities from your demat account. The bank accounts are listed on the stock broker website. Please do
not transfer funds into any other account. The stock broker is not permitted to accept any cash from you.
3. The stock broker’s Risk Management Policy provides details about how the trading limits will be given
to you, and the tariff sheet provides the charges that the stock broker will levy on you.
4. All securities purchased by you will be transferred to your demat account within one working day of the
payout. In case of securities purchased but not fully paid by you, the transfer of the same may be subject
to limited period pledge i.e. seven trading days after the pay-out (CUSPA pledge) created in favor of the
stock broker. You can view your demat account balances directly at the website of the Depositories after
creating a login.
5. The stock broker is obligated to deposit all funds received from you with any of the Clearing
Corporations duly allocated in your name. The stock broker is further mandated to return excess funds
as per applicable norms to you at the time of quarterly/ monthly settlement. You can view the amounts
allocated to you directly at the website of the Clearing Corporation(s).
6. You will get a contract note from the stock broker within 24 hours of the trade.
7. You may give a one-time Demat Debit and Pledge Instruction (DDPI) authority to your stock broker for
limited access to your demat account, including transferring securities, which are sold in your account
for pay-in.
8. The stock broker is expected to know your financial status and monitor your accounts accordingly. Do
share all financial information (e.g. income, networth, etc.) with the stock broker as and when requested
for. Kindly also keep your email Id and mobile phone details with the stock broker always updated.
9. In case of disputes with the stock broker, you can raise a grievance on the dedicated investor grievance
ID of the stock broker. You can also approach the stock exchanges and/or SEBI directly.
10. Any assured/guaranteed/fixed returns schemes or any other schemes of similar nature are prohibited by
law. You will not have any protection/recourse from SEBI/stock exchanges for participation in such
schemes.

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