Trading Member : Bombay Stock Exchange Limited

SEBI Regn. No. : INF011451731





No.583, Federal House

Siddapura, Whitefield-Varthur Road, Bengaluru 560066

080-69999212 |

F e d e r a l C a p i t a l . i n

Annexure - 1



Sl. No.

Name of the Document

Brief Significance of the Document

Page No







Account Opening Form

A. KYC form - Document captures the basic information about the




constituent and an instruction/check list.






B. Document captures the additional information about the constituent




relevant to trading account and an instruction/check list.







Rights and Obligations

Document stating the Rights & Obligations of stock broker/trading




member, sub-broker and client for trading on exchanges (including




additional rights & obligations in case of internet/wireless technology




based trading).







Risk Disclosure Document (RDD)

Document detailing risks associated with dealing in the




securities market.







Guidance note

Document detailing do’s and don’ts for trading on exchange,




for the education of the investors.







Policies and Procedures

Document describing significant policies and procedures of




the stock broker (to be added by the stock broker).







Tariff sheet

Document detailing the rate/amount of brokerage and other




charges levied on the client for trading on the stock




exchange(s) (to be added by the stock broker).










Undertaking for Direct Payin-in of securities

Required for direct pay-in of securities to pool account of BSE.










Running Account Authorisation.

Required for maintaining clients account on a running account basis.










PMLA declaration

Client’s declaration in relation to prevention of money laundering act.










Member : BSE

SEBI Registration No : INF011451731 Date : 30 January 2012

Registered office address : Federal Capital Markets Ltd, No.583, Federal House, Siddapura Whitefield-Varthur Road, Bangalore 560066

Ph : 080 69999212 Website :

CIN : U65910KA2011PLC059562 PAN : AABCF7686F


Compliance officer name, phone no. & email id: Joseph Sebastian Ph: 080 69999212 CEO name: Sherry Zacharias

For any grievance/dispute please contact Federal Capital Markets Limited at the above address or

email id- and Phone no. 91-80-69999212. In case not satisfied with the response, please contact the concerned exchange at and Phone no: 022 22728097

Annexure - 2





Application No.:

No.583, Federal House, Siddapura Whitefield-Varthur Rd, Bengaluru 560066


Client Code:

Ph: 080 69999212

Please fill this form in ENGLISH and in BLOCK LETTERS.

For Individuals


1.Name of the Applicant:

2.Father’s/ Spouse Name:


a. Gender: b. Marital status: c. Date of birth: (dd/mm/yyyy)


a. Nationality: b. Status:

Please affix your recent passport size photograph and sign across it


5.a. PAN: b. Unique Identification Number (UID) /Aadhaar, if any:

6.Specify the proof of Identity submitted:


1.Address for correspondence:

City/town/village: Pin Code: State: Country:

2.Contact Details: Ph (O) Ph (R) Mob.: Email id:

3.Specify the proof of address submitted for correspondence address:

4.Permanent Address (if different from above or overseas address, mandatory for Non-Resident Applicant):

City/town/village: Pin Code: State:Country:

5.Specify the proof of address submitted for permanent address:


1.GrossAnnual Income Details (please specify): Income Range per annum: Below Rs 1 Lac / 1-5 Lac / 5-10 Lac / 10-25 Lac / > 25 Lac or

Net-worth as on (date)…………………. (………………….........) (Net worth should not be older than 1 year)

2.Occupation (please tick any one and give brief details): Private Sector / Public Sector / Government Service / Business / Professional /

Agriculturist / Retired / Housewife / Student / Others ______________________________________________________________________

3.Please tick, if applicable: Politically Exposed Person (PEP) / Related to a Politically Exposed Person (PEP)

4.Any other information: ___________________________________________________________________________________________


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











Signature of the Applicant


Date: _________________ (dd/mm/yyyy)



















Staff Name: _____________________________________

For FederalCapitalMarketsLimited

on ___________________________(DD/MM/YYYY)

Staff Designation: ________________________________








(Originals verified) True copies of documents received

Signature of the Staff: _____________________________









(Self-Attested) Self Certified Document copies received

Date ______________


Signature of the Authorised Signatory




Main intermediary











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

2.Copies of all the documents submitted by the applicant should be self-attested and accom- panied by originals for verification. In case the original of any document is not produced for verification, then the copies should be properly attested by entities authorized for attesting the documents, as per the below mentioned list.

3.If any proof of identity or address is in a foreign language, then translation into English is required.

4.Name & address of the applicant mentioned on the KYC form, should match with the docu- mentary proof submitted.

5.If correspondence & permanent address are different, then proofs for both have to be submitted.

6.Sole proprietor must make the application in his individual name & capacity.

7.For non-residents and foreign nationals, (allowed to trade subject to RBI and FEMA guide- lines), copy of passport/PIO Card/OCI Card and overseas address proof is mandatory.

8.For foreign entities, CIN is optional; and in the absence of DIN no. for the directors, their passport copy should be given.

9.In case of Merchant Navy NRI’s, Mariner’s declaration or certified copy of CDC (Continu- ous Discharge Certificate) is to be submitted.

10.For opening an account with Depository participant or Mutual Fund, for a minor, photocopy of the School Leaving Certificate/Mark sheet issued by Higher Secondary Board/Passport of Minor/Birth Certificate must be provided.

11.Politically Exposed Persons (PEP) are defined as individuals who are or have been en- trustedwith prominent public functionsin aforeigncountry, e.g., Heads of States or ofGov- ernments, senior politicians, senior Government/judicial/ military officers, senior executives of state owned corporations, important political party officials, etc.

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

1.Unique Identification Number (UID) (Aadhaar)/ Passport/ Voter ID card/ Driving license.

2.PAN card with photograph.

3.Identity card/ document with applicant’s Photo, issued by any of the following: Central/ State Government and its Departments, Statutory/Regulatory Authorities, Public Sector

Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affili- ated to Universities, Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members; and Credit cards/Debit cards issued by Banks.

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

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

1.Passport/ Voters Identity Card/ Ration Card/ Registered Lease or SaleAgreement of Resi- dence/ Driving License/ Flat Maintenance bill/ Insurance Copy.

2.Utility bills like Telephone Bill (only land line), Electricity bill or Gas bill - Not more than 3 months old.

3.Bank Account Statement/Passbook -- Not more than 3 months old.

4.Self-declaration by High Court and Supreme Court judges, giving the new address in re- spect of their own accounts.

5.Proof of address issued by any of the following: Bank Managers of Scheduled Commercial Banks/Scheduled Co-Operative Bank/Multinational Foreign Banks/Gazet- ted Officer/Notary public/Elected representatives to the Legislative Assembly/Parliament/

Documents issued by any Govt. or Statutory Authority.

6.Identity card/document with address, issued by any of the following: Central/State Govern- ment and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings,

Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universi- ties and Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members.

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

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

D. Exemptions/clarifications to PAN

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

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

2.Investors residing in the state of Sikkim.

3.UN entities/multilateral agencies exempt from paying taxes/filing tax returns in India.

4.SIP of Mutual Funds up to Rs 50, 000/- p.a.

5.In case of institutional clients, namely, FIIs, MFs, VCFs, FVCIs, Scheduled Commercial

Banks, Multilateral and Bilateral Development Financial Institutions, State Industrial De- velopment Corporations, Insurance Companies registered with IRDA and Public Financial

Institution as defined under section 4Aof the CompaniesAct, 1956, Custodians shall verify the PAN card details with the original PAN card and provide duly certified copies of such verified PAN details to the intermediary.

E. List of people authorized to attest the documents:

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

2.IncaseofNRIs,authorizedofficialsofoverseasbranchesofScheduledCommercialBanks registered in India, Notary Public, Court Magistrate, Judge, Indian Embassy /Consulate General in the country where the client resides are permitted to attest the documents.

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

Types of entity

Documentary requirements


Copy of the balance sheets for the last 2 financial years (to be



submitted every year).


• Copy of latest share holding pattern including list of all those



holding control, either directly or indirectly, in the company



in terms of SEBI takeover Regulations, duly certified by the



company secretary/Whole time director/MD (to be submitted



every year).


• Photograph, POI, POA, PAN and DIN numbers of whole time



directors/two directors in charge of day to day operations.


• Photograph, POI, POA, PAN of individual promoters holding



control - either directly or indirectly.


• Copies of the Memorandum andArticles ofAssociation and



certificate of incorporation.


• Copy of the Board Resolution for investment in securities





• Authorised signatories list with specimen signatures.




Partnership firm

Copy of the balance sheets for the last 2 financial years (to be



submitted every year).


• Certificate of registration (for registered partnership firms only).


• Copy of partnership deed.


• Authorised signatories list with specimen signatures.


• Photograph, POI, POA, PAN of Partners.





Copy of the balance sheets for the last 2 financial years (to be



submitted every year).


• Certificate of registration (for registered trust only).


• Copy of Trust deed.


• List of trustees certified by managing trustees/CA.


• Photograph, POI, POA, PAN of Trustees.







• Deed of declaration of HUF/ List of coparceners.


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


• Photograph, POI, POA, PAN of Karta.





Proof of Existence/Constitution document.

association or a

Resolution of the managing body & Power ofAttorney granted

body of individu-


to transact business on its behalf.


Authorized signatories list with specimen signatures.





Copy of the constitution/registration or annual report/balance

tional Investors


sheet for the last 2 financial years.


• Authorized signatories list with specimen signatures.





Copy of SEBI registration certificate.


Authorized signatories list with specimen signatures.

Investors (FII)



Army/ Govern-

Self-certification on letterhead.

ment Bodies

Authorized signatories list with specimen signatures.





Copy of Registration Certificate under Societies RegistrationAct.


• List of Managing Committee members.



Committee resolution for persons authorised to act as



authorised signatories with specimen signatures.


True copy of Society Rules and Bye Laws certified by the Chair-








Annexure - 3








For Individuals & Non-individuals






















Bank Name













BankAccount Type

Saving / Current
















Others-In case of NRI / NRE / NRO

BankAccount No.

































































































MICR Number


















































Depository Participant Name


Depository Name (NSDL/CDSL)


Beneficiary name






Beneficiary ID (BO ID)








































*Please sign in the relevant boxes where you wish to trade. The segment not chosen should be struck off by the client.







Name of the segment



Signature of the client




















































































# If, in future, the client wants to trade on any new segment/new exchange, separate authorization/letter should be taken from the client by the stock broker.


Details of any action/proceedings initiated/pending/ taken by SEBI/ Stock exchange/any other authority against the



applicant/constituent or its Partners/promoters/whole time directors/authorized persons in charge of dealing in securi-



ties during the last 3 years:







If client is dealing through the sub-broker, provide the following details:

Sub Broker Name

SEBI Registration No.

Registered OfficeAddress

Phone / Fax details





Whether dealing with any other stock broker/sub-broker




(in case dealing with multiple stock brokers/sub-brokers, provide details of all)




Stock Broker Name

Sub Broker Name




Client Code







Details of disputes/dues pending from/to such stock broker/sub- broker:


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

Physical contract note



Electronic Contract Note



Specify your Email id, if applicable:






Whether you wish to avail of the facility of internet trading / wireless technology (please specify):

Internet trading facility




Wireless technology facility







Investment Experience

No Prior Experience________

In Stocks________ years

In Derivatives________ years

In other Investment related field ________ years



In case of non-individuals, name, designation, PAN, UID, signature, residential address and photographs of persons authorized to deal in securities on behalf of company/firm/others:

Please fillAnnexure B

Any other information


Name of the Introducer






Status of the Introducer




Authorised person

Exixting client



Others, please sepcify:



Address and phone no. of the Introducer












Signature of the Introducer






H. NOMINATION DETAILS (for individuals only)








Name of the Nominee






Relationship with the Nominee






PAN of Nominee




D.O.B. of Nominee


Address and phone no. of the Nominee













Name of the Guardian

Address and phone no. of the Guardian

Signature of the Guardian

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



: ___________________________________________


: __________________________________________

Signature : ___________________________________________

Signature : __________________________________________


: ___________________________________________


: __________________________________________






1.I/We hereby declare that the details furnished above are true and correct to the best of my/our knowledge and belief and I/we undertake to inform you of any changes therein, immediately. In case any of the above information is found to be false or untrue or misleading or misrepre- senting, I am/we are aware that I/we may be held liable for it.

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

3.I/We further confirm having read and understood the contents of the ‘Rights and Obligations’ document(s) and ‘Risk Disclosure Document’. I/

We do hereby agree to be bound by such provisions as outlined in these documents. I/We have also been informed that the standard set of documents has been displayed for Information on stock broker’s designated website, if any.

Place :__________________________

( S5





Date :__________________________

Signature of Client / (all) Authorised Signatory(ies)



UCC Code allotted to the Client:

Documents verified with

Client Interviewed by

In-Person Verification



done by

Name of the Employee

Employee Code

Designation of the employee



I / We undertake that we have made the client aware of ‘Policy and Procedures’, tariff sheet and all the non-mandatory documents. I/ We have also made the client aware of ‘Rights and Obligations’document (s), RDD and Guidance Note. I/We have given/sent him a copy ofalltheKYCdocuments.I/Weundertakethatanychangeinthe‘PolicyandProcedures’,tariffsheetandall thenon-mandatory documentswouldbedulyintimatedtotheclients.I/Wealsoundertakethatanychangeinthe‘RightsandObligations’andRDDwould be made available on my/our website, if any, for the information of the clients.

Signature of the Authorised Signatory


Date :________________________

Seal/Stamp of the stock broker


1.Additional documents in case of trading in derivatives segments - illustrative list:

Copy of ITR Acknowledgement

Copy of Annual Accounts

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

Net worth certificate

Copy of demat account holding statement.

Bank account statement for last 6 months

Any other relevant documents substantiating ownership of assets.

Self declaration with relevant supporting documents.

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

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

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

4.For individuals:

a.Stock broker has an option of doing ‘in-person’ verification through web camera at the branch office of the stock broker/ sub-broker’s office.

b.In case of non-resident clients, employees at the stock broker’s local office, overseas can do in-person’ verification. Further, considering the infeasibility of carrying out ‘In-person’ verification of the non-resident clients by the stock bro- ker’s staff, attestation of KYC documents by Notary Public, Court, Magistrate, Judge, Local Banker, Indian Embassy / Consulate General in the country where the client resides may be permitted.

5.For non-individuals:

a.Form need to be initialized by all the authorized signatories.

b.Copy of Board Resolution or declaration (on the letterhead) naming the persons authorized to deal in securities on behalf of company/firm/others and their specimen signatures.


Annexure – 4


1.The client shall invest/trade in those securities/contracts/other instruments admitted to dealings on the Exchanges as defined in the Rules, Byelaws and Regulations of Ex- changes/ Securities and Exchange Board of India (SEBI) and circulars/notices issued there under from time to time.

2.The stock broker, sub-broker and the client shall be bound by all the Rules, Byelaws and Regulations of the Exchange and circulars/notices issued there under and Rules and

Regulations of SEBI and relevant notifications of Government authorities as may be in force from time to time.

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

4.The stock broker shall continuously satisfy itself about the genuineness and financial soundness of the client and investment objectives relevant to the services to be pro- vided.

5.The stock broker shall take steps to make the client aware of the precise nature of the Stock broker’s liability for business to be conducted, including any limitations, the liability and the capacity in which the stock broker acts.


7.The client shall furnish all such details in full as are required by the stock broker in “Ac- count Opening Form” with supporting details, made mandatory by stock exchanges/ SEBI from time to time.

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

9.The client shall immediately notify the stock broker in writing if there is any change in the information in the ‘account opening form’as provided at the time of account opening and thereafter; including the information on winding up petition/insolvency petition or any litigation which may have material bearing on his capacity. The client shall provide/ update the financial information to the stock broker on a periodic basis.

10.The stock broker and sub-broker shall maintain all the details of the client as mentioned in the account opening form or any other information pertaining to the client, confiden- tially and that they shall not disclose the same to any person/authority except as required under any law/regulatory requirements. Provided however that the stock broker may so disclose information about his client to any person or authority with the express permis- sion of the client.


11.The client shall pay applicable initial margins, withholding margins, special margins or such other margins as are considered necessary by the stock broker or the Exchange or as may be directed by SEBI from time to time as applicable to the segment(s) in which the client trades. The stock broker is permitted in its sole and absolute discretion to collect additional margins (even though not required by the Exchange, Clearing House/

Clearing Corporation or SEBI) and the client shall be obliged to pay such margins within the stipulated time.

12.The client understands that payment of margins by the client does not necessarily imply complete satisfaction of all dues. In spite of consistently having paid margins, the client may, on the settlement of its trade, be obliged to pay (or entitled to receive) such further sums as the contract may dictate/require.


13.The client shall give any order for buy or sell of a security/derivatives contract in writing or in such form or manner, as may be mutually agreed between the client and the stock broker. The stock broker shall ensure to place orders and execute the trades of the cli- ent, only in the Unique Client Code assigned to that client.

14.The stock broker shall inform the client and keep him apprised about trading/settlement cycles, delivery/payment schedules, any changes therein from time to time, and it shall be the responsibility in turn of the client to comply with such schedules/procedures of the relevant stock exchange where the trade is executed.

15.The stock broker shall ensure that the money/securities deposited by the client shall be kept in a separate account, distinct from his/its own account or account of any other client and shall not be used by the stock broker for himself/itself or for any other client or for any purpose other than the purposes mentioned in Rules, Regulations, circulars, notices, guidelines of SEBI and/or Rules, Regulations, Bye-laws, circulars and notices of Exchange.

16.Where the Exchange(s) cancels trade(s) suo moto all such trades including the trade/s done on behalf of the client shall ipso facto stand cancelled, stock broker shall be entitled to cancel the respective contract(s) with client(s).

17.The transactions executed on the Exchange are subject to Rules, Byelaws and Regu- lations and circulars/notices issued thereunder of the Exchanges where the trade is

executed and all parties to such trade shall have submitted to the jurisdiction of such court as may be specified by the Byelaws and Regulations of the Exchanges where the trade is executed for the purpose of giving effect to the provisions of the Rules, Byelaws and Regulations of the Exchanges and the circulars/notices issued thereunder.


18.The Client shall pay to the stock broker brokerage and statutory levies as are prevail- ing from time to time and as they apply to the Client’s account, transactions and to the services that stock broker renders to the Client. The stock broker shall not charge brokerage more than the maximum brokerage permissible as per the rules, regulations and bye-laws of the relevant stock exchanges and/or rules and regulations of SEBI.


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

20.In the event of death or insolvency of the client or his/its otherwise becoming incapable of receiving and paying for or delivering or transferring securities which the client has ordered to be bought or sold, stock broker may close out the transaction of the client and claim losses, if any, against the estate of the client. The client or his nominees, succes- sors, heirs and assignee shall be entitled to any surplus which may result there from. The client shall note that transfer of funds/securities in favor of a Nominee shall be valid discharge by the stock broker against the legal heir.

21.The stock broker shall bring to the notice of the relevant Exchange the informa- tion about default in payment/delivery and related aspects by a client. In case where defaulting client is a corporate entity/partnership/proprietary firm or any other artificial legal entity, then the name(s) of Director(s)/Promoter(s)/Partner(s)/Proprietor as the case may be, shall also be communicated by the stock broker to the relevant Exchange(s).


22.The stock broker shall provide the client with the relevant contact details of the con- cerned Exchanges and SEBI.

23.The stock broker shall co-operate in redressing grievances of the client in respect of all transactions routed through it and in removing objections for bad delivery of shares, rectification of bad delivery, etc.

24.The client and the stock broker shall refer any claims and/or disputes with respect to deposits, margin money, etc., to arbitration as per the Rules, Byelaws and Regulations of the Exchanges where the trade is executed and circulars/notices issued thereunder as may be in force from time to time.

25.The stock broker shall ensure faster settlement of any arbitration proceedings arising out of the transactions entered into between him vis-à-vis the client and he shall be liable to implement the arbitration awards made in such proceedings.

26.The client/stock-broker understands that the instructions issued by an authorized repre- sentative for dispute resolution, if any, of the client/stock-broker shall be binding on the client/stock-broker in accordance with the letter authorizing the said representative to deal on behalf of the said client/stock-broker.


27.This relationship between the stock broker and the client shall be terminated; if the stock broker for any reason ceases to be a member of the stock exchange including cessation of membership by reason of the stock broker’s default, death, resignation or expulsion or if the certificate is cancelled by the Board.

28.The stock broker, sub-broker and the client shall be entitled to terminate the relationship between them without giving any reasons to the other party, after giving notice in writing of not less than one month to the other parties. Notwithstanding any such termination, all rights, liabilities and obligations of the parties arising out of or in respect of transactions entered into prior to the termination of this relationship shall continue to subsist and vest in/be binding on the respective parties or his/its respective heirs, executors, administra- tors, legal representatives or successors, as the case may be.

29.In the event of demise/insolvency of the sub-broker or the cancellation of his/its registra- tion with the Board or/withdrawal of recognition of the sub-broker by the stock exchange and/or termination of the agreement with the sub broker by the stock broker, for any reason whatsoever, the client shall be informed of such termination and the client shall be deemed to be the direct client of the stock broker and all clauses in the ‘Rights and

Obligations’ document(s) governing the stock broker, sub-broker and client shall con- tinue to be in force as it is, unless the client intimates to the stock broker his/its intention to terminate their relationship by giving a notice in writing of not less than one month.



30.The stock broker shall ensure due protection to the client regarding client’s rights to dividends, rights or bonus shares, etc. in respect of transactions routed through it and it shall not do anything which is likely to harm the interest of the client with whom and for whom they may have had transactions in securities.

31.The stock broker and client shall reconcile and settle their accounts from time to time as per the Rules, Regulations, Bye Laws, Circulars, Notices and Guidelines issued by SEBI and the relevant Exchanges where the trade is executed.

32.The stock broker shall issue a contract note to his constituents for trades executed in such format as may be prescribed by the Exchange from time to time containing re- cords of all transactions including details of order number, trade number, trade time, trade price, trade quantity, details of the derivatives contract, client code, brokerage, all charges levied etc. and with all other relevant details as required therein to be filled in and issued in such manner and within such time as prescribed by the Exchange. The stock broker shall send contract notes to the investors within one working day of the execution of the trades in hard copy and/or in electronic form using digital signature.

33.The stock broker shall make pay out of funds or delivery of securities, as the case may be, to the Client within one working day of receipt of the payout from the relevant Ex- change where the trade is executed unless otherwise specified by the client and subject to such terms and conditions as may be prescribed by the relevant Exchange from time to time where the trade is executed.

34.The stock broker shall send a complete `Statement of Accounts’ for both funds and securities in respect of each of its clients in such periodicity and format within such time, as may be prescribed by the relevant Exchange, from time to time, where the trade is executed. The Statement shall also state that the client shall report errors, if any, in the Statement within such time as may be prescribed by the relevant Exchange from time to time where the trade was executed, from the receipt thereof to the Stock broker.

35.The stock broker shall send daily margin statements to the clients. Daily Margin state- ment should include, inter-alia, details of collateral deposited, collateral utilized and col- lateral status (available balance/due from client) with break up in terms of cash, Fixed Deposit Receipts (FDRs), Bank Guarantee and securities.

36.The Client shall ensure that it has the required legal capacity to, and is authorized to, enter into the relationship with stock broker and is capable of performing his obligations and undertakings hereunder. All actions required to be taken to ensure compliance of all the transactions, which the Client may enter into shall be completed by the Client prior to such transaction being entered into.


37.In case, client opts to receive the contract note in electronic form, he shall provide an ap- propriate e-mail id to the stock broker. The client shall communicate to the stock broker any change in the email-id through a physical letter. If the client has opted for internet trading, the request for change of email id may be made through the secured access by way of client specific user id and password.

38.The stock broker shall ensure that all ECNs sent through the e-mail shall be digitally signed, encrypted, non-tamper able and in compliance with the provisions of the IT Act,

2000. In case, ECN is sent through e-mail as an attachment, the attached file shall also be secured with the digital signature, encrypted and non-tamperable.

39.The client shall note that non-receipt of bounced mail notification by the stock broker shall amount to delivery of the contract note at the e-mail ID of the client.

40.The stock broker shall retain ECN and acknowledgement of the e-mail in a soft and non-tamperable form in the manner prescribed by the exchange in compliance with the provisions of the IT Act, 2000 and as per the extant rules/regulations/circulars/guidelines issued by SEBI/Stock Exchanges from time to time. The proof of delivery i.e., log report generated by the system at the time of sending the contract notes shall be maintained by the stock broker for the specified period under the extant regulations of SEBI/stock exchanges. The log report shall provide the details of the contract notes that are not delivered to the client/e-mails rejected or bounced back. The stock broker shall take all possible steps to ensure receipt of notification of bounced mails by him at all times within the stipulated time period under the extant regulations of SEBI/stock exchanges.

41.The stock broker shall continue to send contract notes in the physical mode to such clients who do not opt to receive the contract notes in the electronic form. Wherever the ECNs have not been delivered to the client or has been rejected (bouncing of mails) by the e-mail ID of the client, the stock broker shall send a physical contract note to the cli- ent within the stipulated time under the extant regulations of SEBI/stock exchanges and maintain the proof of delivery of such physical contract notes.

42.In addition to the e-mail communication of the ECNs to the client, the stock broker shall simultaneously publish the ECN on his designated web-site, if any, in a secured way and enable relevant access to the clients and for this purpose, shall allot a unique user name and password to the client, with an option to the client to save the contract note electronically and/or take a print out of the same.


43.Inadditiontothespecificrightssetoutinthisdocument,thestockbroker,sub-brokerand the client shall be entitled to exercise any other rights which the stock broker or the client may have under the Rules, Bye-laws and Regulations of the Exchanges in which the cli- ent chooses to trade and circulars/notices issued thereunder or Rules and Regulations of SEBI.


rules, regulations, guidelines and circulars/notices issued by SEBI and Rules, Regula- tions and Bye laws of the relevant stock exchanges, where the trade is executed, that may be in force from time to time.

45.The stock broker and the client shall abide by any award passed by the Arbitrator(s) under theArbitration and ConciliationAct, 1996. However, there is also a provision of ap- peal within the stock exchanges, if either party is not satisfied with the arbitration award.

46.Words and expressions which are used in this document but which are not defined herein shall, unless the context otherwise requires, have the same meaning as assigned thereto in the Rules, Byelaws and Regulations and circulars/notices issued thereunder of the Exchanges/SEBI.

47.All additional voluntary clauses/document added by the stock broker should not be in contravention with rules/regulations/notices/circulars of Exchanges/SEBI. Any changes in such voluntary clauses/document(s) need to be preceded by a notice of 15 days. Any changes in the rights and obligations which are specified by Exchanges/SEBI shall also be brought to the notice of the clients.

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, Rules and Regulations of the relevant stock Ex- changes where the trade is executed, such changes shall be deemed to have been incorporated herein in modification of the rights and obligations of the parties mentioned in this document.

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 for providing Internet based trading (IBT) and securities trading through the use of wireless technology that shall include the use of devices such as mo- bile phone, laptop with data card, etc. which use Internet Protocol (IP). The stock broker shall comply with all requirements applicable to internet based trading/securities trading using wireless technology as may be specified by SEBI & the Exchanges from time to time.

2.The client is desirous of investing/trading in securities and for this purpose, the client is desirous of using either the internet based trading facility or the facility for securities trad- ing through use of wireless technology. The Stock broker shall provide the Stock broker’s IBT Service to the Client, and the Client shall avail of the Stock broker’s IBT Service, on andsubjecttoSEBI/ExchangesProvisionsandthetermsandconditionsspecifiedonthe

Stock broker’s IBT Web Site provided that they are in line with the norms prescribed by Exchanges/SEBI.

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

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

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

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

7.The Client is fully aware of and understands the risks associated with availing of a ser- vice for routing orders over the internet/securities trading through wireless technology and Client shall be fully liable and responsible for any and all acts done in the Client’s Username/password in any manner whatsoever.

8.The stock broker shall send the order/trade confirmation through email to the client at his request.Theclientisawarethattheorder/tradeconfirmationisalsoprovidedontheweb portal. In case client is trading using wireless technology, the stock broker shall send the order/trade confirmation on the device of the client.

9.The client is aware that trading over the internet involves many uncertain factors and complex hardware, software, systems, communication lines, peripherals, etc. are sus- ceptible to interruptions and dislocations. The Stock broker and the Exchange 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 interruption.

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


Annexure – 5


This document contains important information on trading in Equities/Derivatives Segments of the stock exchanges. All prospective constituents should read this document before trading in Equities/Derivatives Segments of the Exchanges.

Stock exchanges/SEBI does neither singly or jointly and expressly nor impliedly guarantee nor make any representation concerning the completeness, the ade- quacy or accuracy of this disclosure document nor have Stock exchanges /SEBI endorsed or passed any merits of participating in the trading segments. This brief statement does not disclose all the risks and other significant aspects of trading.

In the light of the risks involved, you should undertake transactions only if you understand the nature of the relationship into which you are entering and the extent of your exposure to risk.

You must know and appreciate that trading in Equity shares, derivatives contracts or other instruments traded on the Stock Exchange, which have varying element of risk, is generally not an appropriate avenue for someone of limited resources/ limited investment and/or trading experience and low risk tolerance. You should therefore carefully consider whether such trading is suitable for you in the light of your financial condition. In case you trade on Stock exchanges and suffer adverse consequences or loss, you shall be solely responsible for the same and Stock exchanges/its Clearing Corporation and/or SEBI shall not be responsible, in any manner whatsoever, for the same and it will not be open for you to take a plea that no adequate disclosure regarding the risks involved was made or that you were not explained the full risk involved by the concerned stock broker. The constituent shall be solely responsible for the consequences and no contract can be rescinded on that account. You must acknowledge and accept that there can be no guarantee of profits or no exception from losses while executing orders for purchase and/or sale of a derivative contract being traded on Stock exchanges.

It must be clearly understood by you that your dealings on Stock exchanges through a stock broker shall be subject to your fulfilling certain formalities set out by the stock broker, which may inter alia include your filling the know your client form, reading the rights and obligations, do’s and don’ts, etc., and are subject to the Rules, Byelaws and Regulations of relevant Stock exchanges, its Clearing Corpo- ration, guidelines prescribed by SEBI and in force from time to time and Circulars as may be issued by Stock exchanges or its Clearing Corporation and in force from time to time.

Stock exchanges does not provide or purport to provide any advice and shall not be liable to any person who enters into any business relationship with any stock broker of Stock exchanges and/or any third party based on any information contained in this document. Any information contained in this document must not be construed as business advice. No consideration to trade should be made without thoroughly understanding and reviewing the risks involved in such trading. If you are unsure, you must seek professional advice on the same.

In considering whether to trade or authorize someone to trade for you, you should be aware of or must get acquainted with the following:-


1.1Risk of Higher Volatility: Volatility refers to the dynamic changes in price that a security/derivatives contract undergoes when trading activity contin- ues on the Stock Exchanges. Generally, higher the volatility of a security/ derivatives contract, greater is its price swings. There may be normally greater volatility in thinly traded securities / derivatives contracts than in active securities /derivatives contracts. As a result of volatility, your order may only be partially executed or not executed at all, or the price at which your order got executed may be substantially different from the last traded price or change substantially thereafter, resulting in notional or real losses.

1.2Risk of Lower Liquidity: Liquidity refers to the ability of market partici- pants to buy and/or sell securities / derivatives contracts expeditiously at a competitive price and with minimal price difference. Generally, it is as-

sumed that more the numbers of orders available in a market, greater is the liquidity. Liquidity is important because with greater liquidity, it is easier

for investors to buy and/or sell securities / derivatives contracts swiftly and with minimal price difference, and as a result, investors are more likely to pay or receive a competitive price for securities / derivatives contracts purchased or sold. There may be a risk of lower liquidity in some securi- ties / derivatives contracts as compared to active securities / derivatives contracts. As a result, your order may only be partially executed, or may be executed with relatively greater price difference or may not be executed at all.

1.2.1Buying or selling securities / derivatives contracts as part of a day trading strategy may also result into losses, because in such a situation, securities / derivatives contracts may have to be sold / purchased at low / high prices, compared to the expected price levels, so as not to have any open position or obligation to deliver or receive a security / derivatives contract.

1.3Risk of Wider Spreads: Spread refers to the difference in best buy price and best sell price. It represents the differential between the price of buy- ing a security / derivatives contract and immediately selling it or vice versa. Lower liquidity and higher volatility may result in wider than normal spreads for less liquid or illiquid securities / derivatives contracts. This in turn will hamper better price formation.

1.4Risk-reducing orders: The placing of orders (e.g., “stop loss” orders, or “limit” orders) which are intended to limit losses to certain amounts may not be effective many a time because rapid movement in market conditions may make it impossible to execute such orders.

1.4.1A “market” order will be executed promptly, subject to availability of orders on opposite side, without regard to price and that, while the customer may receive a prompt execution of a “market” order, the execution may be at available prices of outstanding orders, which satisfy the order quantity, on price time priority. It may be understood that these prices may be signifi- cantly different from the last traded price or the best price in that security / derivatives contract.

1.4.2A“limit”orderwillbeexecutedonlyatthe“limit”pricespecifiedfortheorder or a better price. However, while the customer receives price protection, there is a possibility that the order may not be executed at all.

1.4.3A stop loss order is generally placed “away” from the current price of a stock / derivatives contract, and such order gets activated if and when the security / derivatives contract reaches, or trades through, the stop price. Sell stop orders are entered ordinarily below the current price, and buy stop orders are entered ordinarily above the current price. When the se- curity / derivatives contract reaches the pre -determined price, or trades through such price, the stop loss order converts to a market/limit order and is executed at the limit or better. There is no assurance therefore that the limit order will be executable since a security / derivatives contract might penetrate the pre-determined price, in which case, the risk of such order not getting executed arises, just as with a regular limit order.

1.5Risk of News Announcements: News announcements that may impact the price of stock / derivatives contract may occur during trading, and when combined with lower liquidity and higher volatility, may suddenly cause an unexpected positive or negative movement in the price of the security / contract.

1.6Risk of Rumors: Rumors about companies / currencies at times float in the market through word of mouth, newspapers, websites or news agen- cies, etc. The investors should be wary of and should desist from acting on rumors.

1.7System Risk: High volume trading will frequently occur at the market opening and before market close. Such high volumes may also occur at any point in the day. These may cause delays in order execution or confir- mation.

1.7.1During periods of volatility, on account of market participants continuously modifying their order quantity or prices or placing fresh orders, there may


be delays in order execution and its confirmations.

1.7.2Under certain market conditions, it may be difficult or impossible to liqui- date a position in the market at a reasonable price or at all, when there are no outstanding orders either on the buy side or the sell side, or if trading is halted in a security / derivatives contract due to any action on account of unusual trading activity orsecurity / derivatives contract hitting circuit filters or for any other reason.

1.8System/Network Congestion: Trading on exchanges is in electronic mode, based on satellite/leased line based communications, combination of technologies and computer systems to place and route orders. Thus, there exists a possibility of communication failure or system problems or slow or delayed response from system or trading halt, or any such other problem/glitch whereby not being able to establish access to the trading system/network, which may be beyond control and may result in delay in processing or not processing buy or sell orders either in part or in full. You are cautioned to note that although these problems may be temporary in nature, but when you have outstanding open positions or unexecuted orders, these represent a risk because of your obligations to settle all ex- ecuted transactions.

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

2.1Effect of “Leverage” or “Gearing”: In the derivatives market, the amount of margin is small relative to the value of the derivatives contract so the transactions are ‘leveraged’ or ‘geared’. Derivatives trading, which is con- ducted with a relatively small amount of margin, provides the possibility of great profit or loss in comparison with the margin amount. But transactions in derivatives carry a high degree of risk.

You should therefore completely understand the following statements be- fore actually trading in derivatives and also trade with caution while tak- ing into account one’s circumstances, financial resources, etc. If the prices move against you, you may lose a part of or whole margin amount in a relatively short period of time. Moreover, the loss may exceed the original margin amount.

A.Futures trading involve daily settlement of all positions. Every day the open positions are marked to market based on the closing level of the index / derivatives contract. If the contract has moved against you, you will be re- quired to deposit the amount of loss (notional) resulting from such move- ment. This amount will have to be paid within a stipulated time frame, gener- ally before commencement of trading on next day.

B.If you fail to deposit the additional amount by the deadline or if an outstand- ing debt occurs in your account, the stock broker may liquidate a part of or the whole position or substitute securities. In this case, you will be liable for any losses incurred due to such close-outs.

C.Under certain market conditions, an investor may find it difficult or impos- sible to execute transactions. For example, this situation can occur due to factors such as illiquidity i.e. when there are insufficient bids or offers or suspension of trading due to price limit or circuit breakers etc.

D.In order to maintain market stability, the following steps may be adopted: changes in the margin rate, increases in the cash margin rate or others. These new measures may also be applied to the existing open interests. In such conditions, you will be required to put up additional margins or reduce your positions.

E.You must ask your broker to provide the full details of derivatives contracts you plan to trade i.e. the contract specifications and the associated obliga- tions.

2.2Currency specific risks:

1.Theprofitorloss intransactions inforeign currency-denominated contracts, whether they are traded in your own or another jurisdiction, will be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency.

2.Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example when a currency is deregu- lated or fixed trading bands are widened.

3.Currency prices are highly volatile. Price movements for currencies are in- fluenced by, among other things: changing supply-demand relationships; trade, fiscal, monetary, exchange control programs and policies of govern- ments; foreign political and economic events and policies; changes in na- tional and international interest rates and inflation; currency devaluation; and sentiment of the market place. None of these factors can be controlled by any individual advisor and no assurance can be given that an advisor’s advice will result in profitable trades for a participating customer or that a customer will not incur losses from such events.

2.3 Risk of Option holders:

1.An option holder runs the risk of losing the entire amount paid for the option in a relatively short period of time. This risk reflects the nature of an option as a wasting asset which becomes worthless when it expires. An option holder who neither sells his option in the secondary market nor exercises it prior to its expiration will necessarily lose his entire investment in the option. If the price of the underlying does not change in the anticipated direction before the option expires, to an extent sufficient to cover the cost of the option, the investor may lose all or a significant part of his investment in the option.

2.The Exchanges may impose exercise restrictions and have absolute au- thority to restrict the exercise of options at certain times in specified circum- stances.

2.4 Risks of Option Writers:

1.If the price movement of the underlying is not in the anticipated direction, the option writer runs the risks of losing substantial amount.

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 a spread po- sition or by acquiring other types of hedging positions in the options markets or other markets. However, even where the writer has assumed a spread or other hedging position, the risks may still be significant.Aspread position is not necessarily less risky than a simple ‘long’ or ‘short’ position.

3.Transactions that involve buying and writing multiple options in combina- tion, or buying or writing options in combination with buying or selling short the underlying interests, present additional risks to investors. Combination transactions, such as option spreads, are more complex than buying or writing a single option. And it should be further noted that, as in any area of investing, a complexity not well understood is, in itself, a risk factor. While this is not to suggest that combination strategies should not be considered, it is advisable, as is the case with all investments in options, to consult with someone who is experienced and knowledgeable with respect to the risks and potential rewards of combination transactions under various market circumstances.

3.TRADING THROUGH WIRELESS TECHNOLOGY/ SMART ORDER ROUTING OR ANY OTHER TECHNOLOGY: Any additional provisions defining the features, risks, responsibilities, obligations and liabilities as- sociated with securities trading through wireless technology/ smart order routing or any other technology should be brought to the notice of the client by the stock broker.


4.1The term ‘constituent’ shall mean and include a client, a customer or an investor, who deals with a stock broker for the purpose of acquiring and/or selling of securities / derivatives contracts through the mechanism provided by the Exchanges.

4.2The term ‘stock broker’ shall mean and include a stock broker, a broker or a stock broker, who has been admitted as such by the Exchanges and who holds a registration certificate from SEBI.


Annexure – 6



1.Ensure that you deal with and through only SEBI registered intermediaries. You may check their SEBI registration certificate number from the list available on the Stock ex- changes and SEBI website

2.Ensure that you fill the KYC form completely and strike off the blank fields in the KYC form.

3.Ensure that you have read all the mandatory documents viz. Rights and Obligations, Risk Disclosure Document, Policy and Procedure document of the stock broker.

4.Ensure to read, understand and then sign the voluntary clauses, if any, agreed be- tween you and the stock broker. Note that the clauses as agreed between you and the stock broker cannot be changed without your consent.

5.Get a clear idea about all brokerage, commissions, fees and other charges levied by the broker on you for trading and the relevant provisions/ guidelines specified by SEBI/

Stock exchanges.

6.Obtain a copy of all the documents executed by you from the stock broker free of charge.

7.In case you wish to execute Power of Attorney (POA) in favour of the Stock broker, authorizing it to operate your bank and demat account, please refer to the guidelines issued by SEBI/Exchanges in this regard.


8.The stock broker may issue electronic contract notes (ECN) if specifically authorized by you in writing. You should provide your email id to the stock broker for the same. Don’t opt for ECN if you are not familiar with computers.

9.Don’t share your internet trading account’s password with anyone.

10.Don’t make any payment in cash to the stock broker.

11.Make the payments by account payee cheque in favour of the stock broker. Don’t is- sue cheques in the name of sub-broker. Ensure that you have a documentary proof of your payment/deposit of securities with the stock broker, stating date, scrip, quan- tity, towards which bank/ demat account such money or securities deposited and from which bank/ demat account.

12.Note that facility of Trade Verification is available on stock exchanges’ websites, where details of trade as mentioned in the contract note may be verified. Where trade details on the website do not tally with the details mentioned in the contract note, immediately get in touch with the Investors Grievance Cell of the relevant Stock exchange.

13.In case you have given specific authorization for maintaining running account, payout of funds or delivery of securities (as the case may be), may not be made to you within one working day from the receipt of payout from the Exchange. Thus, the stock broker shall maintain running account for you subject to the following conditions:

a)Such authorization from you shall be dated, signed by you only and contains the clause that you may revoke the same at any time.

b)The actual settlement of funds and securities shall be done by the stock bro- ker, at least once in a calendar quarter or month, depending on your prefer- ence. While settling the account, the stock broker shall send to you a ‘state-

ment of accounts’ containing an extract from the client ledger for funds and an extract from the register of securities displaying all the receipts/ deliveries of funds and securities. The statement shall also explain the

retention of funds and securities and the details of the pledged shares, if any.

c)On the date of settlement, the stock broker may retain the requisite securities/funds towards outstanding obligations and may also retain the funds expected to be re- quired to meet derivatives margin obligations for next 5 trading days, calculated in the manner specified by the exchanges. In respect of cash market transactions, the stock broker may retain entire pay-in obligation of funds and securities due from clients as on date of settlement and for next day’s business, he may retain funds/ securities/margin to the extent of value of transactions executed on the day of such settlement in the cash market.

d)You need to bring any dispute arising from the statement of account or settlement so made to the notice of the stock broker in writing preferably within 7 (seven) working days from the date of receipt of funds/securities or statement, as the case may be. In case of dispute, refer the matter in writing to the Investors Grievance Cell of the relevant Stock exchanges without delay.

14.In case you have not opted for maintaining running account and pay-out of funds/se- curities is not received on the next working day of the receipt of payout from the ex- changes, please refer the matter to the stock broker. In case there is dispute, ensure that you lodge a complaint in writing immediately with the Investors Grievance Cell of the relevant Stock exchange.

15.Please register your mobile number and email id with the stock broker, to receive trade confirmation alerts/ details of the transactions through SMS or email, by the end of the trading day, from the stock exchanges.


16.In case, a stock broker surrenders his membership, is expelled from membership or declared a defaulter; Stock exchanges gives a public notice inviting claims relating to only the “transactions executed on the trading system” of Stock exchange, from the investors. Ensure that you lodge a claim with the relevant Stock exchanges within the stipulated period and with the supporting documents.

17.Familiarize yourself with the protection accorded to the money and/or securities you may deposit with your stock broker, particularly in the event of a default or the stock broker’s insolvency or bankruptcy and the extent to which you may recover such mon- ey and/or securities may be governed by the Bye-laws and Regulations of the relevant Stock exchange where the trade was executed and the scheme of the Investors’ Pro- tection Fund in force from time to time.


18.Please note that the details of the arbitration proceedings, penal action against the brokers and investor complaints against the stock brokers are displayed on the web- site of the relevant Stock exchange.

19.In case your issue/problem/grievance is not being sorted out by concerned stock bro- ker/sub-broker then you may take up the matter with the concerned Stock exchange.

If you are not satisfied with the resolution of your complaint then you can escalate the matter to SEBI.

20.Note that all the stock broker/sub-brokers have been mandated by SEBI to designate an e-mail ID of the grievance redressal division/compliance officer exclusively for the purpose of registering complaints.


This document contains the policies and procedures of Federal Capital Markets Limited Ltd. for Cash and F&O segment as are presently in force in relation to :

1.Refusal of orders for Penny/illiquid Stock

2.Applicable Brokerage limit

3.Setting up of exposure limits

4.Delayed payment charges

5.Squaring off of market positions, collaterals and other securities,

6.Market and internal shortages

7.Refusal of Client requests for fresh positions

8.Suspension of Client’s account and deregistering of the Client.

1.Penny / illiquid securities: Federal Capital reserves the right to refuse execution of any transaction requests of the Client on such illiquid securities or to reduce the open market interests of the Client in such securities. Federal Capital also reserves the right not to allow any trades or transactions in respect of certain securities or segments or orders/requests which may be below / above certain value / quantity as may be de- cided by Federal Capital from time to time.

2.Applicable Brokerage:

2.1Federal Capital shall levy brokerage for the Client’s transactions as per the brokerage slabs mutually agreed with the Client in writing in the Client Registration Form subject to the maximum rate prescribed by the Stock Exchanges / SEBI. The Client shall pay such fees, charges, and commissions as may be notified by Federal Capital.

2.2Subject to such maximum prescribed rates, Federal Capital may revise the rates from time to time after advance intimation to the Client of the revised rates and the date on and from which the revised rates shall take effect. Federal Capital may intimate the revised rates either in writing addressed to the Client or by publishing the rate on its

back-office website or by both means. The Client shall intimate its objection(s) if any to the revised brokerage in writing within 15 (fifteen) days of receipt of intimation of the change in brokerage. The Client shall be deemed to have agreed to the change in bro- kerage rates if he does not intimate any objection thereto within the time prescribed.

2.3Brokerage shall be paid in the manner intimated by Federal Capital to the Client from time to time together with the service tax and statutory levies and duties as may be ap- plicable from time to time on the same.

2.4Without prejudice to the absolute obligation of the Client to pay/reimburse monies to Federal Capital as set-out above, we shall also be entitled to set-off and appropriate any monies that may be placed with or available with Federal Capital for and/or on be- half of the Client towards any dues of the Client to Federal Capital, arising howsoever.

3. Setting up of Exposure limits:

3.1Federal Capital shall be entitled to sanction trading limits to the Client based on the margin lying to the credit of the Client in the form of funds / securities / bank guaran- tees / fixed deposit receipts. Federal Capital at its sole discretion may refuse to accept any security as collateral/margin.

3.2Neither Federal Capital, nor any affiliate of Federal Capital nor their respective direc- tors, officers, employees, agents shall in any circumstances be liable for any direct or indirect loss, cost, liability, expense or damage (including without limitation all legal fees and expenses) arising from any variation or reduction of exposure or turnover limits by Federal Capital.

4. Delayed payment and consequences:

4.1Notwithstanding anything contained in these presents and without prejudice to margin funding guidelines issued by SEBI, any amounts which are overdue from the Client in any trading segments shall be liable to delayed payment charges at the rate of 1.5% per month or part thereof or such other rate as may be determined and communicated


by Federal Capital. Federal Capital is authorised to debit the delayed payment charg- es to the account of the Client at the end of each month/such other interval as may be decided by Federal Capital.

4.2Without prejudice to Federal Capital’s other rights and to the extent permissible under Applicable Laws, Federal Capital shall be entitled to liquidate / close out all or any of the Client’s positions for nonpayment of margin or other amounts, outstanding debts, etc, and adjust the proceeds of such liquidation/close out, if any, against the Client’s liabilities / obligations. Any and all losses and financial charges on account of such liquidation/ closing-out shall be charged to and borne by the Client.

4.3Federal Capital shall be entitled to suspend or terminate the member client relation- ship without prior notice if the Client fails to fulfil his/its payment obligations hereunder, under the Agreement or otherwise due to Federal Capital.

4.4Federal Capital shall not be obliged to return any money, margin or otherwise to the Client until the Client has satisfactorily discharged all its payment obligations or other obligations under this Agreement.

5.Federal Capital’s right to square off: Without prejudice to Federal Capital’s other rights (including the right to refer a matter to arbitration), in the event of the Client failing to maintain/supply applicable margin money required to sustain the outstanding market positions of the Client, Federal Capital shall be entitled, at its option and liberty, to liquidate/close out all outstanding market positions or any part thereof such that the outstanding market positions are either zeroed out or reduced to an extent where available margin covers the market positions remaining after such square off. The Cli- ent understands and accepts that authority of Federal Capital to square off outstand- ing market interests of the Client in the event of the Client failing to furnish margin money immediately on demand is carte blanche qua the entire outstanding position and the Client shall not, as a matter of right, be entitled to reduction of the outstanding positions in stages in order that positions to the extent of available margin are retained in the Client’s account. Federal Capital may also sell off all or any securities of the Client lying with Federal Capital as collateral or otherwise, for any amounts due by the Client and adjust the proceeds of such liquidation/close out against the client’s liabili- ties/obligations to Federal Capital. Any and all losses and financial charges on account of such liquidation/closing-out shall be charged to and borne by the client. Client shall keep and hold Federal Capital indemnified and harmless from any loss arising out of such closing out/squaring off. Such liquidation or close out of positions shall apply to any segment in which the Client does business with Federal Capital.

6.Market and internal shortages: The Client hereby agrees that if he/she/it has short- delivered any securities against his/her/its pay-in obligation towards a counter party who is a Client of Federal Capital and delivery of the securities was also not effected through auction in the market (self-auction) for any reason including that self-auction is not permitted on the Exchange, then the contract shall be closed out and the close out price will be fixed as per the rules of the exchange. The amount so determined shall be debited to the account of the Client who defaulted to deliver.

7.Refusal of Client requests for trades/transactions:

7.1Federal Capital is entitled in its sole discretion to: Restrict or refuse execution of any orders for transaction in any scrip if transaction in such scrip is not in accordance with its internal due diligence policy and/or the directives and guidelines of the Exchange.

7.2Refuse to accept or act upon any request/order which in Federal Capital’s sole opin- ion, amounts to manipulating trades or price manipulation or artificial trade(s) and/or fraudulent trade(s) or otherwise in breach of applicable laws and/or Federal Capital’s internal policies, without obligation to give the Client its reasons for doing so;

7.3Close out any transaction which may have been executed but which Federal Capital was entitled to refuse to execute being contrary to its internal due diligence policies or by reason of any other factors including but not limited to trades being manipulative in nature;

7.4Disallow any trades or transactions in respect of certain securities or segments which may be below/above certain value/quantity as may be decided by Federal Capital from time to time;

7.5Federal Capital may at its sole discretion decline to carry out the instructions for any reason whatsoever

8. Suspension and deregistering of Client’s Account:

8.1If the Client apprehends that security of his account has been breached, the Client shall by writing to Federal Capital, request suspension of transactions in the Client’s account and Federal Capital may on receipt of such request suspend transactions in the account. The Client shall ensure pay in of funds and securities in respect of all transactions pending to be settled on or before the respective settlement date(s) and shall compulsorily square off all open derivative positions, failing which Federal Capi- tal without further reference to the Client shall square off all open derivative positions prior to suspending the account. The account of the Client shall, if suspended, remain so suspended until such time as the Client’s request in writing for reactivation of the account is not received by Federal Capital. Provided always that Federal Capital may, without prejudice to its other rights to effect recovery of its dues, sell all or any collat- eral and other securities of the Client lying with it in the Client’s account towards full or part recovery of the dues owing by the Client without prior notice or consent.

8.2Federal Capital may at any time, as it considers necessary in its sole discretion and without prior notice to the Client, prohibit or suspend the Client’s access to or use of the Services provided to the Client under this Agreement, whether in part or entirely.

8.3Federal Capital reserves the right to suspend or terminate this Agreement and deregister the client without prior notice in the event of:

a.Any breach of the terms of this agreement.

b.In the event of infraction of any Rules, Bye-Laws, Regulations of SEBI or the Stock Exchange or of the provisions of any law for the time being in force governing deal- ings in the securities market without prior notice or on the directions of SEBI and/or the Exchanges.

c.Upon the death, winding up, bankruptcy, liquidation or lack of legal capacity of the Client.

d.The Client being designated as a defaulter by any credit rating agency or any ac- tion or proceedings have been initiated by the relevant regulator/Authority including without limitation SEBI.

e.Bank account, demat account, securities account of the client being frozen or at- tached by any court of law or any other competent authority for whatever reason.

f.The Client having misrepresented facts at the time of entering into this Agreement or at the time of giving instructions or otherwise.

g.Any proceedings or investigations that involve the Client or his/its properties having been initiated (or is/are ongoing).

h.The Client fails to fulfil his/its payment obligations under this Agreement or other- wise due to Federal Capital or

i.If the Client migrates to a jurisdiction which prohibits trading in Indian Securities or otherwise subjects Federal Capital or any of its employees to any licensing or registration requirements.

I agree and understand that Federal Capital may from time to time at its sole discre- tion amend or modify the policies and procedures under intimation to me / us.

I/we have read and understood the above mentioned policies and procedures.



Client Signature


Unique Client code






Cash Segment












F& O Segment








Instrument Name

First Leg

Second Leg









Currency Derivatives


Other Charges:

A)Statutory charges such as Security Transaction Tax (STT) exchanges transaction charges stamp duty service tax education Cess, higher education Cess, contribution to investor protection fund, contribution to settlement guarentee fund will be charged to the client as applicable rates prescribed by the appropriate authorities.

B)DP transaction charges, POA transaction charges and inter settlement transaction charges as applicable.

C)KYC application form charges, POA, Penalties as imposed by the exchanges and depositories.



Client Signature




I / We, ........................………………………..................................resident of / having offiice at ……………………………………............................... is a client with client code No ……………......................................................... registered with M/s. Federal Capital Markets Limited, Stock Broker of Bombay Stock Exchange Limited (BSE).

I / We have to deliver securities for the sales effected by me / us through the above Stock Broker, in terms of the Stock Broker-Client agreement entered into between me and the said Stock Broker.

Whereas I / We would be transferring the shares towards the pay-in of securities against the sale position of the transactions done by me/us to the Federal Capital Markets Limited Pool account.

Now, therefore in consideration of such transfer of securities for meeting my / our pay-in obligations of securities for the sales effected, I / We hereby undertake and agree that:

1.The securities that will be transferred by me / us to the Federal Capital Markets Limited Pool account, be considered towards my / our obligation to deliver the securities

2.For the trades done by me / us through the Stock Broker for which the delivery of securities is transferred to the Federal Capital Markets Limited Pool account, the contractual obligations solely rests on me.

3.I / We understand and agree that the pay-out of funds against my / our sales for which security is directly transferred to the Federal Capital Markets Limited Pool account has to be received from the Stock Broker only through whom I / we have executed the trade,

4.I/We understand and agree that shares held in the names of third parties cannot be delivered against my/our trades and the same will not be accepted towards my pay-in obligations. I / We undertake not to transfer any third party shares to the Pool Account.

Place : ____________________________ I/We Accept

Date : ____________________________

Seal & Signature of the TM



Signature of the Client






Federal Capital Markets Limited

No.583, Federal House, Siddapura

Whitefield-Varthur Road, Bengaluru 560066

I/We are dealing through you as a client in Capital Market and /or Derivatives segment in order to facilitate ease of operations and upfront requirement of margin for trade. I/We authorise you as under:

1.I/We request you to maintain running balance in my account & retain the credit balance in any of my/our account and to use the unused funds towards my/our margin/ pay-in/other future obligations(s) at any segment(s) of any or all the Exchange(s)/Clearing corporayion, unless I/we instruct you otherwise.

2.I/We request you to retain securities with you for my/our account and to use the unused funds towards my/our margin/pay-in/other future obligations(s) at any segment(s) of any or all the Exchange(s)/Clearing corporayion, unless I/we instruct you to transfer the same to my/our account.

3.I/We request you to settle my fund and securities account

Once in every calendar Quarter or


Once in calendar Month or


Such other higher period as allowed by SEBI / Stock Exchange from time to time except the





funds given towards collaterals/margin in from of Bank Guarentee and/or Fixed Deposit Receipt.

4.In case I/We have an outstanding obligation on the settlement date, you may retain the requsite securities/funds towards such obligations and may also retain the funds expected to be required to meet margin obligations for the next 5 trading days, calculated in the manner specified by the exchanges.

5.I/We confirm that I will bring to your notice any dispute arising from the statement of account or settlement so made in writing 7 working days form the date of receipt of funds/securities or statement of account or statement related to it, as the case may be at your registered office.After theta I/We shall have no right to dispute the transaction, funds and/or securities ever and agree that you shall not be liable for any incidental loss/damage caused due to retention of funds and/or securities.

6.I/We confirm you that that I/We can revoke the above mentioned authority any time by giving notice in writing to you.

Thank you

Yours faithfully

(Client Signature)










Client Name

: ____________________________________

Client Code : ______________________________________




I/We,having PAN No

do hereby declare that my Mobile no.




. Further, I authorize Federal Capital Markets Limited, that the same may be used for giving me any information/

alert / sms / call.





I further declare the above mentioned statement is true and correct.


(Signature of Client)

: S10








Client Name


Client Code: ______________________________________


: _____________________________________________________________________________________________________________

Verified by

: Name of the Employee ____________________________________

Signature: _______________________________________









I/We, having PAN No

do hereby declare that I have not been

involved in any terrorist activity and I have not been declared as defaulter or my name is not appearing in defaulter as per SEBI/Various Exchanges/Regulatory bodies/CIBIL (Credit Information Bureau of India Ltd.) etc.

I further declare that the above mentioned declaration/statement is true and correct.

(Signature of Client)

: S11








Client Name


Client Code: ______________________________________

(Note: To be signed by person himself/herself not to be signed by his/her attorney/authorised person etc.)


I/We,having the trading code no. ..................................................................

with Federal Capital Markets

Limited confirm and declare that I/We had read anad understood the contents and the provisions of PMLAAct, 2002 and it was also explained by (Federal Capi- tal markets Limited) official. I/We further declare that I/We shall adhere to the rules and regulations and requirements mentioned in the PMLA Act, 2002.

Yours faithfully,

(Signature of Client)

: S12





Client Name



Federal Capital Markets Limited

No.583, Federal House, Siddapura Whitefield-Varthur Road, Bengaluru 560066

Dear Sir,

I/We hereby acknowledge the receipt of duly executed copy of KYC inclusive of Rights & Obligations, RDD, Guidance Note, Policies & Procedure, Tariff sheet and all other documents as executed by me/us.

Yours faithfully,

(Signature of Client)

: S13






: ____________________________________

Client Name


Client Code

: ____________________________________