M/s Chandrakala Broking Services Pvt Ltd is the Company registered under the Companies Act, having the Corporate Office at New Lane Choraria Chowk Gangashahar, Bikaner, Rajasthan 334401. MOLI is the online brand of Chandrakala Broking Services Pvt Ltd and it is together referred to as “CHANDRAKALA”

This page contains important information regarding the terms and conditions which apply to your Trading & Demat accounts with CHANDRAKALA, Member of BSE and CDSL with the Securities & Exchange Board of India (“SEBI”) as a Stock Broker with SEBI Registration No.INZ000240039, BSE Clearing No for CM: 6472 and CDSL DP ID: 12092300. Client’s access to the account and the use of the account is subject to the compliance with all the terms and conditions set forth herein.

The website is owned, operated and maintained by CHANDRAKALA, having the Corporate Office at New Lane, Choraira Chowk, Gangashahar, Bikaner, Rajasthan 334401.

Please note that the information contained herein is subject to change without notice.

By selecting and accepting the “Terms and conditions”, during the login process or while applying for any service, the client agrees to be legally bound by these Terms and Conditions. The client agrees that CHANDRAKALA may at its sole discretion may vary the terms and conditions from time to time and client agrees to abide by the same.

General terms and conditions

Before availing of the trading and depository services, the Client shall complete the registration process as may be prescribed from time to time. The Client shall follow the instruction given in the website for registering as a client with CHANDRAKALA.

The Client agrees that all investment and disinvestment decisions are based on the Client’s own evaluation of financial circumstances and investment objectives. This extends to any decisions made by the Client on the basis of any information that may be made available on the web site of CHANDRAKALA. The Client will not hold nor seek to hold CHANDRAKALA or any of its officers, directors, partners, employees, agents, subsidiaries, affiliates or business associates liable for any trading losses, cost of damage incurred by the Client consequent upon relying on investment information, research opinions or advice or any other material/information whatsoever on the web site, literature, brochure issued by CHANDRAKALA or any other agency appointed/authorised by CHANDRAKALA. The Client should seek independent professional advice regarding the suitability of any investment decisions. The Client also acknowledges that employees of CHANDRAKALA are not authorized to give any such advice and that the Client will not solicit or rely upon any such advice from CHANDRAKALA or any of its employees or business associates.

Online Account Opening

Online account opening using AADHAAR is currently available only for Individual resident. Joint Account, HUFs, corporate bodies, NRIs, etc. are not eligible for Online Aadhar based account opening.

The Client’s AADHAR number will be used to generate a temporary e-signature which will be used to e-sign the KYC document. The e-signature will be generated using an OTP which will be sent to the client’s mobile number registered with his AADHAR number.

Security precaution and password

CHANDRAKALA will provide the client with a username and password which will enable the client to avail of the facilities of Online Trading through the CHANDRAKALA website/ trading platform. Further CHANDRAKALA provides trading over the telephone through Call and Trade services using Telephone Personal Identification number (TPIN) or in any such other manner as may be permitted by CHANDRAKALA for availing of the services. CHANDRAKALA may also provide the client with the access to its back-office for various reports, etc. All terms regarding the use, reset and modification of such password/TPIN shall be governed by information on the website.

The Client agrees and undertakes to create a strong password immediately on first login. The Client is aware that these passwords are not known or available to CHANDRAKALA.

The Client shall be responsible for keeping the Username, Password and TPIN confidential and secure and shall be solely responsible for all orders entered and transactions done by any person whosoever, through CHANDRAKALA’s Online Trading System using the Client’s Username and Password or TPIN, whether or not such person was authorized to do so.

The Client shall immediately inform CHANDRAKALA of any unauthorized use of the Client’s Username or Password / TPIN with full details of such unauthorized use including the date of such unauthorized use, the manner in which it was unauthorizedly used, the transactions effected pursuant to such unauthorized use, etc.

The Client acknowledges that he is fully aware of and understands the risks associated with availing of online trading services through internet including the risk of misuse and unauthorized use of his Username and/or Password by a third party and the risk of a person hacking into the Client’s account on CHANDRAKALA’s Online Trading / Back-office System and unauthorizedly routing orders on behalf of the Client through the System. The Client agrees that he shall be fully liable and responsible for any and all unauthorized use and misuse of his Password and/or Username and also for any and all acts done by any person through CHANDRAKALA’s Online Trading / Back-office System on the Client’s Username in any manner whatsoever.

Without prejudice to the provisions mentioned herein, the Client shall immediately notify CHANDRAKALA in writing with full details if he discovers or suspects unauthorized access through his Username, Password or Account, he notices discrepancies that might be attributable to unauthorized access, he forgets his password or he discovers a security flaw in CHANDRAKALA’s Online Trading System.

Trading, Settlement and Accounts

Orders

All orders for purchase, sale or other dealings in securities and other instructions routed through the CHANDRAKALA’s Online Trading System via the Client’s Username shall be deemed to have been given by the Client.

The client agrees to provide information relating to customer user identification number (TPIN), and such other information as may be required while placing orders on the telephone (Centralized Dealing Desk) to determine the identity of the client.

The orders and instructions and all contracts and transactions entered into pursuant thereto and the settlement thereof will be in accordance with the Exchange Provisions.

CHANDRAKALA may from time to time impose and vary limits /leverage on the orders which the Client can place through CHANDRAKALA’s online trading System (including exposure limits, turnover limits, single order quantity and value, value and/or kind of securities in respect of which orders can be placed, the companies in respect of whose securities orders can be placed, etc.). The Client is aware and agrees that CHANDRAKALA may need to vary or reduce the limits/leverage or impose new limits urgently on the basis of the CHANDRAKALA’s risk perception and other factors considered relevant by CHANDRAKALA, and CHANDRAKALA may be unable to inform the Client of such variation, reduction or imposition in advance. The Client agrees that CHANDRAKALA shall not be responsible for such variation, reduction or imposition or the Client’s inability to route any order through CHANDRAKALA’s Online Trading System on account of any such variation, reduction or imposition of limits/leverages. The Client understands and agrees that CHANDRAKALA may at any time, at its sole discretion and without prior notice, prohibit or restrict the Client’s ability to place orders or trade in securities through CHANDRAKALA.

Though orders will generally be routed to the Exchange’s computer systems within a few seconds from the time the order is placed by the Client on CHANDRAKALA’s Online Trading System, CHANDRAKALA shall not be liable for any delay in the execution of any order or for any resultant loss on account of the delay.

The client agrees CHANDRAKALA may impose scrip wise surveillance or such other conditions as to scrip wise limits, etc. The client also understands that CHANDRAKALA may impose various surveillances which may differ from client to client on the basis of the CHANDRAKALA’s risk perception and other factors considered relevant by CHANDRAKALA.

In case of a market order, the Client agrees that he will receive the price at which his order is executed by the exchange’s computer system; and such price may be different from the price at which the security is trading when his order is entered into CHANDRAKALA’s Online Trading System.

The client agrees that all orders placed through the trading system shall be forwarded by the system to the Exchange. All orders placed otherwise than through the trading system shall be forwarded by the system to Exchange terminals or any other order execution mechanism at the discretion of CHANDRAKALA.

Trade confirmations will be sent to the client by the trading system, email or SMS after the execution of the order and this shall be deemed to be valid delivery thereof by CHANDRAKALA. It shall be the responsibility of the client to review immediately upon receipt, whether delivered to him by trading system, email, SMS or any other electronic means all confirmations of order, transactions, or cancellations. It shall be the responsibility of the client to follow up with CHANDRAKALA for all such confirmations that are not received by him within a stipulated time.

The client shall bring any errors in any report, confirmation or contract note of executed trades (including execution prices, scripts or quantities) to CHANDRAKALA’s notice in writing by an email to helpdesk@chandrakalabroking.com within twenty-four hours of receipt of the concerned report, confirmation or contract note. Any other discrepancy in the confirmation or account shall be notified by the client to CHANDRAKALA in writing via email within twenty-four hours from the time of receipt of the first notice. In all cases, CHANDRAKALA shall have a right to accept or reject the client’s objection.

There may be a delay in CHANDRAKALA receiving the reports of transaction, status, from the respective exchanges or other persons in respect of or in connection with which CHANDRAKALA has entered into contracts or transactions on behalf of the clients. Accordingly, CHANDRAKALA may forward to the client late reports in respect of such transactions that were previously unreported to him as been expired, cancelled or executed. The client shall not hold CHANDRAKALA responsible for any losses suffered by the client on account of any late reports, statements or any errors in the report / statements computed by or received from any exchange.

The client agrees that if, for any circumstance or for any reason, the markets close before the acceptance of the Order by the Exchange, the order may be rejected. The client agrees further, that CHANDRAKALA may reject Orders if the same are rejected by the Exchange for any reason. In case of rejection of an order due to rejection by the Exchange, the client agrees that the order shall remain declined and shall not be re-processed, in any event.

CHANDRAKALA may, at its sole discretion, reject any order placed on the trading system / website or in any other manner due to any reason, including but not limited to the non-availability of funds in the trading account of the client, non-availability of securities in the Demat account of the client with a designated depository participant, insufficiency of margin amount if the client opts for margin trading, suspension or blocking of specific security or contracts in any segments or circuit breaker to a scrip in which orders are placed.

The client agrees that, if the order is not accepted on the trading system / website for any reason, CHANDRAKALA shall have the right to treat the order as having lapsed or rejected from the trading system.

The client is aware that the electronic trading systems either at the Exchange or in the office of CHANDRAKALA offices are vulnerable to temporary disruptions, breakdowns or failures. In the event of non- execution of trade orders or trade cancellation due to the happening of such events or vulnerabilities due to failure / disruption / breakdown of system or link, CHANDRAKALA shall be entitled to cancel relative request/(s) with the Client and shall not be liable to execute the desired transactions of the client’s. In such event, CHANDRAKALA does not accept responsibility for any losses incurred / that may be incurred by the Client due to such eventualities which are beyond the control of CHANDRAKALA.

CHANDRAKALA may at its sole discretion partially / completely restrict execution of orders in respect of securities, irrespective of the amount in the balance of the account of the client. CHANDRAKALA may allow/disallow client from trading in any security or class of securities, or derivatives contracts or any other trading products and impose such conditions for trading as it may deem fit from time to time.

The client agrees to abide with and be bound by all the rules, regulations and bye-laws of the Exchange as are in force pertaining to the transactions on his behalf carried out by CHANDRAKALA and the orders placed by him on the trading system / website or any other manner.

CHANDRAKALA shall not be responsible for any order, that is made by the Client by mistake and every order that is entered by the Client through the use of the allotted user name and the security code(s) / password shall be deemed to be a valid order for which the Client shall be fully responsible.

Cancellation or modification of an order pursuant to the client’s request in that behalf is not guaranteed. The order will be cancelled or modified only if the client’s request for cancellation and modification is received and the order is successfully cancelled or modified before it is executed. Market orders are subject to immediate execution wherever possible. Product conversions are available online, and if at any time the client wants to convert the executed order from one product type to another product type for example INTRADAY to CNC or vice versa, it will be carried out, only if the client’s request for the product conversion is received before the stipulated time of intraday auto square off and if sufficient margins are available for product conversion.

The client shall not be entitled to presume an order having been executed, cancelled or modified/product converted until a confirmation from CHANDRAKALA is received by the client. However, due to technical other factors the confirmation may not be immediately transmitted to or received by the client and such a delay shall not entitle the client to presume that the order has not been executed cancelled or modified unless and until CHANDRAKALA has so confirmed in writing.

The pending orders shall be governed as per the exchange systems, after the market is closed for the day.

CHANDRAKALA shall issue contract notes in terms of the SEBI (Brokers and Sub-Brokers) Rules and Regulations, 1992, within 24 hours of the execution of the trade. Such a contract note, if issued in physical form shall be dispatched by CHANDRAKALA by post/courier, at the address mentioned in this agreement or at any other address expressly informed to CHANDRAKALA by the client. The client agrees that CHANDRAKALA to issue the contract note in digital form which shall be sent by way of email to the address provided by the client. CHANDRAKALA shall not be responsible for the non-receipt of the trade confirmation due to any change in the correspondence address of the Client not intimated to CHANDRAKALA in writing. Client is aware that it is his responsibility to review the trade confirmations, the contract notes, the bills or statements of account immediately upon their receipt. All such confirmations and statements shall be deemed to have been accepted as correct if the client does not object in writing to any of the contents of such trade confirmation/intimation within 24 hours to CHANDRAKALA.

Margins

Margin is the minimum amount required to buy/sell. Margins are always collected in advance. Various margins applicable are:

1.     Span Margin:

SPAN margin is the upfront Margin required by the exchanges in the derivatives segment. It is calculated on a portfolio (a collection of futures and option positions) based approach.

2.     Additional/ Exposure Margin:

‘Exposure Margin’ is the margin blocked over and above the SPAN to cushion for any MTM losses. Both the SPAN and Exposure margins are specified by the exchange. So at the time of initiating a futures trade, the client has to adhere to the initial margin requirement. The entire initial margin (SPAN + Exposure) is blocked by the exchange. Span + Exposure = Initial Margin (Total Margin)

3.     VAR Margin: (Value at risk margin):

The VaR Margin is a margin intended to cover the largest loss that can be encountered on 99% of the days (99% Value at Risk). For liquid stocks, the margin covers one-day losses while for illiquid stocks, it covers three-day losses so as to allow the Exchange to liquidate the position over three days. These Margins are collected upfront for the trading in the Equity segments (normal Equity and MTF).

4.     GSM / ASM Margin:

GSM stands for ‘Graded Surveillance Measure’ and ASM stands for ‘Additional Surveillance Measure’. In order to enhance market integrity and safeguard the interest of investors, Securities and Exchange Board of India (SEBI) and Exchanges, have been introducing various enhanced surveillance measures such as reduction in price band, periodic call auction and transfer of securities to Trade to Trade segment from time to time. This additional surveillance initiative is part of SEBI and the Exchanges initiative to enhance market integrity and safeguard the interest of investors.

The Client agrees and undertakes to immediately deposit with CHANDRAKALA such cash, securities or other acceptable security, which CHANDRAKALA may require as margin. The Client agrees that CHANDRAKALA shall be entitled to require the Client to deposit with CHANDRAKALA a higher margin than that prescribed by the Exchange.

The Margin will not be interest bearing. CHANDRAKALA shall have, at its sole discretion, the irrevocable right to set off a part or whole of the Margin i.e., by the way of appropriating of the relevant amount of cash or by sale or transfer of all or some of the Securities which form part of the Margin, against any dues of the Client or of a member of the group of the Client (for the purposes of these Terms, “Group” shall mean all the individuals, group companies, firms, entities and the persons as specified in the schedule to the Member Client Agreement) in the event of the failure of the Client or a member of the Group of the Client to meet any of their respective obligations under these Terms.

The client agrees and authorizes CHANDRAKALA to determine the market value of securities placed as margin after applying a haircut that CHANDRAKALA may deem appropriate. The client undertakes to monitor the market value of such securities on a continuous basis. The client further undertakes to replenish any shortfall in the value of the margin consequents to a fall in the market value of such securities placed as margin immediately whether or not CHANDRAKALA intimates such shortfall.

CHANDRAKALA may at its sole discretion prescribe the payment of Margin in the form of cash instead of or in addition to margin in form of securities. The Client accepts to comply with the requirement of CHANDRAKALA with regards to payment of Margin in the form of cash immediately. Without prejudice to the stock broker’s other rights (including the right to refer a matter to arbitration), 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 amount, 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.

The client agrees to abide by the exposure limits, if any, set by the stock broker or by the Exchange or Clearing Corporation or SEBI from time to time.

The client is also aware that CHANDRAKALA is required to deposit sufficient margin with the Exchange to enable all its eligible clients to trade subject to such limits as may be imposed by CHANDRAKALA on the basis of CHANDRAKALAs’ Risk perception and other factors considered relevant by CHANDRAKALA. However, there may be circumstances when the deposits made by CHANDRAKALA with the Exchange may not be sufficient in times of extreme volatility and trading terminals of CHANDRAKALA may get temporarily suspended because of the cumulative effect of non-meeting of obligation by various clients as per this agreement. In these circumstances, no client shall have the right to claim any damages from CHANDRAKALA for any loss that they might incur on account of such suspension of trading.

The Client agrees that any securities/cash placed by him/her/it as margin may in turn be placed as margin by CHANDRAKALA with the Exchanges, clearing corporation or banks or such other institution as CHANDRAKALA may deem fit. The Client authorizes CHANDRAKALA to do all such acts, deeds and things as may be necessary and expedient for placing such securities/cash with the Exchanges/clearing corporations/Banks/Institutions as margin.

Any reference in these terms to sales or transfer of Securities by CHANDRAKALA shall be deemed to include sale of the Securities which form part of the Margin maintained by the Client with CHANDRAKALA. In exercise of CHANDRAKALA’s right to sell securities under the Agreement, the Client agrees that the choice of specific securities to be sold shall be solely at the discretion of CHANDRAKALA.

Maintenance of Trading account

Money pay-in to CHANDRAKALA – The Client agrees that all payments due to CHANDRAKALA will be made within the specified time and in the event of any delay, CHANDRAKALA may refuse, at their discretion, to carry out transactions or closeout the position and the costs/losses if any, thereof shall be borne solely and completely by the client. All payments made to CHANDRAKALA shall be from the registered bank account of the client and shall not to be from any third party bank account.

The client can transfer funds from the instant payment gateway facility available on the trading platform. Client can also choose to transfer using NEFT/IMPS/UPI or by means of cheque. Such transfers will be charged a fee per transfer plus applicable taxes.

Money payout to CHANDRAKALA – Notwithstanding anything contained in any other agreement or arrangement, if any, between the parties hereto, the client hereby authorizes CHANDRAKALA to release all payments due to him from the trading account maintained with CHANDRAKALA, against specific request made by the client. All payout requests will be processed electronically and the credit shall come to the client’s primary bank account as per timelines mentioned in the support portal. If at any time the client wants to credit the amount to the Secondary bank, the client must select the same at the time of placing the payout request. If payout processed to Primary Account is rejected by the Bank, CHANDRAKALA shall re-initiate payment to the client’s Secondary Bank account. Payouts will not be processed on Holidays, Saturday and Sunday. Payout request need to be given before 3pm for same day processing subject to clear balance as on date.

Securities pay-in to CHANDRAKALA – All delivery to be effected to CHANDRAKALA for a trade, must be made within 24 hours from the execution of the sale order or one day before the pay-in date, whichever is earlier. Losses, if any, that may accrue in the event of a default in completing the delivery on the exchange by CHANDRAKALA as a result of any delay in the delivery by the client, shall be borne solely and completely by the client. Losses for the purposes of this clause shall include auction debits/ penalty charges/interest if any incurred as a result of non-delivery of securities on the settlement date on the exchange. No third-party shares will be sold through CHANDRAKALA or third-party payment should be made to CHANDRAKALA and client will be solely responsible for any violation. If the client has sold any securities from the exchange against purchase in previous settlements, such sale shall be at the sole risk as to costs and consequences thereof of the client.

Securities pay-out by CHANDRAKALA – CHANDRAKALA may directly credit the demat account of the client with the depository participant or maintain the securities in the client unpaid securities account (CUSA) of CHANDRAKALA until the client has paid for the securities in full. If the client fails to pay for the securities purchased in full then CHANDRAKALA reserves the right to sell the unpaid securities and related costs to recover its dues. The client is expected to monitor and pay for his securities purchased in full within settlement date.

Provided that if the order placed by the client through the trading system / website or otherwise is for securities which are in the no-delivery period, such securities shall be credited to the trading account of the client only at the time of settlement of trades, as per the schedule of the Exchange. However, if any sum due from the client, CHANDRAKALA may withholds the credit of securities to the demat account of the client. However, the client authorizes CHANDRAKALA to withhold the securities to meet liabilities of client to CHANDRAKALA under this agreement.

Time of Delivery of shares:

Client agrees to ensure that before selling of any shares, he has the same in the hand. Any loss arising of auction / close out on account of shares not cleared in CHANDRAKALA’s account will be borne by the client. The client also agrees to bear any loss arising out of auction due to incomplete/ illegible/ unclear/ instructions and instructions not received on time.

The client shall deliver shares to CHANDRAKALA for all sale trades due for settlement, on trade day or before the trade settlement day. The settlement day for all client sales will be the pay in day less one day, where the pay in day is specified by the Exchange /Clearing House, which will be passed on to the client.

CHANDRAKALA shall deliver shares purchased by the client on the trade settlement day, however CHANDRAKALA is not obliged to deliver any securities to the client unless and until the same has been received by CHANDRAKALA from the clearing corporation/ clearing house or other entity liable to deliver securities. The settlement day for all client purchases will be payout day, where the pay-out day is specified by the Exchange/Clearing House for the relevant settlement period.

CHANDRAKALA shall not be obliged to release any securities to the client until the Client has satisfactorily discharged all its payment obligations or other obligations under this Agreement.

Bad Delivery of Shares:

Exchange shortage quantities will be settled after the due auction buy-in process at the Exchange. All auction shortage closeout debits received from the Exchange will be borne by the client. The client shall reimburse CHANDRAKALA for all costs incurred in the auction procedure. CHANDRAKALA shall not be liable for any loss incurred by the client due to wrong transfer of shares. Shortages in obligations arising out of internal netting of trades:

CHANDRAKALA shall not be obliged to deliver any securities or pay any money to the client unless and until the same has been received by CHANDRAKALA from the exchange, the clearing corporation/clearing house or other company or entity liable to make the Payment and the client has fulfilled his/her/its obligations first.

These policies and procedures are for the settlement of shortages in obligations arising out of internal netting of trades as under.

The Short delivering client is provisionally debited 150% of selling value and closed out on auction date 1% higher than the buyer’s traded value. Further, necessary charges, penalties if any, debited by exchange due to short delivery will be pass on to the client at appropriate rates from time to time is debited to the short delivering seller client along with reversal entry of provisionally amount debited earlier.

In cases of securities having corporate actions all cases of short delivery of cum transactions which cannot be auctioned on cum basis or where the cum basis auction payout is after the book closure /record date, would be compulsory closed out on the highest traded price from first trading day of the settlement till the auction day.

Running Account settlement (RAS)

As per the SEBI guidelines, the settlement of funds in a client’s trading account has to be done within one working day of payout. However, the client can authorize the Broker to retain funds in his Trading Account and maintain it as Running Account. This is called Running Account Authorization. A client can give Running Account Authorization for 30 days or 90 days.

If you have given Running Account Authorization for 90 days:

If you have given Running Account Authorization for 90 days, the settlement will be done after considering the End of the day (EOD) obligation of funds as on the date of settlement across all the Exchanges on first Friday of the calendar Quarter (i.e., Apr-Jun, Jul-Sep, Oct-Dec, Jan–Mar) for all the clients i.e. the running account of funds shall be settled on first Friday of October 2022, January 2023, April 2023, July 2023 and so on. If first Friday is a trading holiday, then such settlement shall happen on the previous trading day.

If you have given Running Account Authorization for 30 days:

If you have opted for Monthly settlement, running account shall be settled on first Friday of each month. If first Friday is a trading holiday, then such settlement shall happen on the previous trading day.

IF you have not traded for 30 days:

If you have credit balance and not have done any transaction in the 30 calendar days since the last transaction, the credit balance shall be returned to your Bank Account, within next three working days irrespective of the date when the running account was previously settled. Further, after settlement, if the money is transferred back to your account and no trades are executed during this period, the 30 calendar days for the purpose of subsequent settlement from the day funds were received instead of the last transaction date will be considered.

Risk Management Policy

CHANDRAKALA’s right to change the margins under any conditions without any notice.

CHANDRAKALA shall increase the margins at any time, during the trading day or on any special day where CHANDRAKALA anticipates higher volatility in the market due to any of the following reasons without any notice:

·        Exchange policy changes or regulation

·        Government policy changes or regulation

·        Stock broker internal policy changes

·        Excessive or abnormal market movement / turnover / volatility in the domestic & Global markets.

·        Any upcoming election results/ any other political changes.

What are the terms for the squaring /close out the Positions/ Stocks etc by CHANDRAKALA ?

CHANDRAKALA reserves and retains the right to sell or square off the client’s open positions in any segment of any exchange and the Client Unpaid Securities Account (CUSA) stocks/ Pledged Securities / etc. under the following conditions listed below and CHANDRAKALA shall not be held responsible for any loss/charges due to the square off /non- square off positions as per this policy.

1) When there is a Margin Shortfall

It is the responsibility and onus of the client to continuously monitor his positions and bring in additional margin when required. Client may need to bring in additional margins due to MTM loss or margins being increased by the exchange. Client must ensure that there is no Margin shortfall in the account. The Account is said to have a Margin Shortfall if the Available Balance as reflected in the Trading Platform is negative, I.e , the Available Margin is Less than the Margin Required on the open positions.

In event of Margin Shortfall, CHANDRAKALA reserves the right to reduce or completely square off the client’s open positions. Margin Reports are also sent from the back office every day when client has open positions. It is possible for the margin to change after the client has taken the position. Clients are required to monitor the applicable margins on their positions at all times and ensure that there is no margin shortfall to prevent partial or complete liquidation of the open positions.

Since liquidation of positions is not a fully automated action in the system, CHANDRAKALA can only square off positions on a best effort basis. It is possible that due to extreme volatility / market freeze or any other conditions, the Margin Utilized may exceed much beyond the required capital / margin placed by the client before CHANDRAKALA can successfully square off / reduce the positions. In all / any events CHANDRAKALA cannot be held responsible for such losses or charges incurred. Under no circumstances can the client transfer his/her responsibility of Monitoring his/her positions to CHANDRAKALA.

In the Equity Future /Commodity Future there are possibilities of freezing of contracts at any time during the trading hours. During this freeze period of the contracts, CHANDRAKALA shall not be in a position to square off the positions as per the RMS policy. Similarly, even in Illiquid options there exists possibility that there are no counter parties available to square off the positions. Hence in this scenario, CHANDRAKALA shall not be held responsible for any losses due to the non-squaring off the positions.

2) MIS / Cover Order (CO) –time based Square off:

Any positions taken under MIS / Cover Order (CO) shall be automatically squared off, at any time within the last half an hour of market close for the respective exchanges and segments if the positions continue to be open at that time. Client has the option to convert a MIS position to normal position (NRML) if adequate margin is available in the trading account. CO positions cannot be converted but can be exited. This client should convert his MIS open positions or exit his/her CO open positions before the beginning of auto square off mode of the MIS/CO product. Since these are system-based actions and successful triggering of time based square off may depend variables which maybe beyond the control of CHANDRAKALA, CHANDRAKALA does not in any manner guarantee the successful triggering of time based square off under MIS/CO product. It is the responsibility and onus of the client to continuously monitor his positions taken under the intraday products and square them off well before the stipulated cut off time for time based square off. In the event of trading system failure during this time, CHANDRAKALA shall on a best effort basis square off clients MIS positions in alternate system, if available and possible. Due to thousands of such positions to be squared of manually it may not be possible for CHANDRAKALA to successfully square of clients MIS/CO positions due to system failure. Under such circumstances client cannot hold CHANDRAKALA responsible for any losses/charges.

3) Margin Call square off – Margin Trade Funding (MTF) account: NA

CLIENT UNPAID SECURITIES ACCOUNT (CUSA) Policy

CHANDRAKALA shall transfer the clients’ securities received in pay-out (T+1) to clients’ demat account within one working day. But in case if the securities received in pay-out are not paid fully by the client, then CHANDRAKALA may retain those securities in “CLIENT UNPAID SECURITIES ACCOUNT (CUSA)” and these securities will be transferred to the client’s respective demat account upon the fulfillment of funds obligation in the account. Further if at any time the client fails to meet the funds pay-in obligation within five trading days (5) from pay-out day(T+1) then CHANDRAKALA shall liquidate the securities in the market to recover the debits/dues in the account including the penalty/interest/ accrued interest/DP charges/ any other uncleared charges etc..

CHANDRAKALA shall liquidate these securities in the CUSA account based on various parameters including but not limited to liquidity, volatility, categorization, concentration, or any single stock or set of stocks that has value close to the amount Due, or based on any corporate action that is getting triggered in the stocks held or events that could trigger price fluctuation in any particular sector or a particular company. CHANDRAKALA may in its sole discretion, determine the time of sale and securities to be disposed off (Not FIFO Method) and or which open position is / are to be liquidated / closed. Further CHANDRAKALA shall not make any pre-order confirmation /margin calls prior to the liquidation of the securities and CHANDRAKALA shall not be held liable for any loss that arise due to the liquidation of securities.

CHANDRAKALA shall not allow the client to initiate any buy trade immediately after the liquidation of the securities due to debit balances in the client account on 5th day. It is because further exposure is disallowed as the old debit is not realized and it will be allowed only on the realization of the debits in the account. Further, CHANDRAKALA at its discretion ought to liquidate the securities, if any taken immediately after the liquidation of the unpaid securities on 5th day and shall not be held liable for any loss out of this liquidation.

Policy for Penny stock:

It is a stock that trades at a relatively low price and market capitalization. These types of stocks are generally considered to be highly speculative and high risk because of their lack of liquidity, large bid-ask spreads, small capitalization and limited following and disclosure. Depending on the market condition and Margin policy of the company, RMS desk reserves the right to refuse to provide the exposure / margin in penny stocks and losses if any, on account of such refusal shall be borne by the client only.

Setting up clients’ exposure limits:

Exposures are set in the trading terminal based on the margin deposited by the client to the trading account, and the client can trade based on the margins set in the system. CHANDRAKALA may from time to time introduce various margin exposures/Trading limit policies, including exposure limits, turnover limits, order quantity /Order value and/or any kind of order parameter checks in respect of which orders can be placed in the terminal. CHANDRAKALA may at its discretion vary or reduce the limits or impose new limits urgently on the basis of CHANDRAKALA’s risk perception and other factors considered relevant for the trading but not limited to limits on account of exchange / SEBI directions/limits, such as broker level/market level limits in security specific/ volume specific exposures etc. In such occasion, CHANDRAKALA may be unable to inform the client of such variation, reduction or imposition in advance and the client agrees that CHANDRAKALA shall not be responsible for such variation, reduction or imposition or the client’s inability to route any order through CHANDRAKALA’s trading system on account of any such variation, reduction or imposition of limits.

Further client agrees that CHANDRAKALA may at any time, at its sole discretion and without prior notice, prohibit or restrict the client’s ability to place orders or trade in securities through CHANDRAKALA, or it may subject any order placed by the client to review before its entry into the trading systems and may refuse to execute / allow execution of orders due to but not limited to the reason of lack of margin/securities or the order being outside the limits set by CHANDRAKALA / exchange / SEBI and any other reasons which CHANDRAKALA may deem appropriate in the circumstances. The client agrees that the losses, if any on account of such refusal or due to delay caused by such review, shall be borne exclusively by the client alone.

CHANDRAKALA has margin-based RMS system, and the exposure limits are set generally based on the availability of the Margin in the client account. This margin may be in the form of cash and or in the form of securities Pledged with CHANDRAKALA. On a daily basis, CHANDRAKALA shall upload the client’s base capital including ledger balance and the client’s collateral deposits through margin pledge after applying the appropriate haircut. The client can trade up to a pre-determined number of times of the margin (‘’the Multiple’’) for the respective securities as defined in the Risk management policy/FAQ.

Margin benefit based on the Credit For sale.

CHANDRAKALA shall provide the benefit of the “credit for sale” (CFS) after deducting the debits if any, to the Client, for taking the fresh positions. The CFS benefit can be availed on T+1.

Suspension of trading account.

The client is aware that, if there are no trades in the trading account for a period of twelve months, CHANDRAKALA shall suspend the trading account from further trading as per the rules and regulations of the Exchanges. Further, to reactivate the account within 1 year of having it suspended, the client has to send an email from the registered email id to cn@chandrakalabroking.com. To re activate it after a year of having it suspended, the client has to re-submit the KYC and re-activate the account. CHANDRAKALA upon receipt of updated KYC will activate the trading account within two workings days, and shall reset the password for the client to login and trading.

Blocking of the Debit accounts as per the Enhanced Supervision:

The following is the extract of SEBI circular No. SEBI/HO/MIRSD/MIRSD2/CIR/2016/95 dated 26th September 2016 Clause 2.6

“Stock brokers shall not grant further exposure to the clients when debit balances arise out of client’s failure to pay the required amount and such debit balances continues beyond the fifth trading day, as reckoned from date of pay-in.”

Based on the above it is inferred that when clients fail to clear their debit balance beyond 5 working days from the date of pay-in or in other words 6 working days from the date of trade i.e T+1+5 trading days (excluding Saturday /Sunday and Holidays), CHANDRAKALA shall block such client accounts and shall not grant any further exposure till the client clears the debit. Further, if the client sells the transfer the amount on the blocking day, CHANDRAKALA shall allow unblock the account for further trading on the next working day.

Exchange Margin shortfall Penalty/ Provisional margin Penalty:

If at any time, the Exchange impose margin penalty @ 1% or 5% (as per the number of days) on the total margin shortfall in the futures and Options segment trades, CHANDRAKALA shall pass this penalty amount to the client ‘s respective trading account. Further, CHANDRAKALA on a daily basis shall calculate the provisional margin penalty amount as per the exchange rates @ 1% or 5% respectively.

Surveillance Actions

1.     Regulatory conditions under which a client may not be allowed to take further position or CHANDRAKALA may close the existing position of the client:

In case overall position in a contract has reached the Regulators prescribed Exchange limit/ Market wide open interest limit / then client may not be allowed to take further positions, till such time Regulators prescribed limit comes down to create a new position

2.     PMLA Guidelines:

Client will be categorized as High, Medium and Low risk customer as per their risk appetite and their current profile as mentioned in Know your client form (KYC). The same will be reviewed at regular intervals.

3.     Exposure to client may also be governed by customer profiling mentioned above as well as client’s financial income made available to CHANDRAKALA from time to time.

4.     Suspending Client’s trading account:

CHANDRAKALA may withhold the payout of client and suspend his trading account due to any internal surveillance (if client indulges into manipulative trade practice) / regulatory orders (debarring orders).

5.     Dormant Account:

If the client has not traded in any particular segment for a period of 365 days, (not traded for 12 months), the account will be treated as dormant and client trading account shall be suspended from further trading. The client can activate the account by sending a request / re-submitting the KYC

6.     Additional Surveillance Margin ( ASM)

In order to enhance market integrity and safeguard the interest of the investors, SEBI has introduced additional surveillance margin (ASM) on securities that witness abnormal price rise, Which do not seem with the net worth and fundamentals of the company. CHANDRAKALA as a risk containment measure shall allow trading in these shares only on Cash & Carry product (CNC) i.e 100% margin. Exchange also levies Additional Surveillance Margin (ASM) in Equity Derivatives Segment on all gross open positions on Future Contracts and on Short Positions in Options Contract. The above mentioned ASM shall be added to the applicable exposure margin of the respective index/stock futures and options contracts.

7.Graded Surveillance Measures. (GSM)

In order to enhance market integrity and safeguard the interest of the investors, SEBI has introduced the Graded Surveillance Measures (GSM) on securities that witness abnormal price rise, Which does not Appear to be Commensurate with the net worth and fundamentals of the company. CHANDRAKALA as a measure, shall block all these Securities as per the GSM list on a regular basis, and shall not allow the clients to take fresh Positions but allow the clients to liquidate these securities if clients hold the same in their account.

8.     Stocks are blocked from trading based on the unsolicited SMS

CHANDRAKALA shall block the securities for which unsolicited messages are circulated and reported by Exchanges from trading.

9.     Expiry day Trading Policy

As a default process CHANDRAKALA shall block all the current month derivative contracts under product NRML on the day of expiry. CHANDRAKALA shall closely monitor any physical settlement of the derivative contracts in the future and options segment. CHANDRAKALA shall follow the below actions on the expiry day;

·        On the expiry day all overnight NRML positions would be uploaded as MIS positions which would be compulsorily auto squared off by the risk management system (RMS) upto 30 minutes prior to the market closing, if not closed by the client. Call N Trade charges would apply if the position is auto closed by the RMS

·        Such MIS positions cannot by default be converted to NRML for expiry day contracts. However, if the client so requires to take/give physical delivery and has the required funds/shares then CHANDRAKALA shall allow the Physical delivery. The client would need to contact the Customer support desk for this facility and confirm the intent atleast 2 hours prior to the closing of the equity derivative markets.

·        Since margins are applied and increased on a graded manner for In the money (ITM) contracts from 4 days prior to expiry, penalty and interest charged on margin shortfall, if any would be debited to client account.

·        Delivery margin imposed on the physical delivery of the contracts during the expiry period (4 days), will be debited to the client ledger and shall also be applied to the trading terminal during the trading day.

In the event of such square off/ close out of the contracts, the client agrees to indemnify and bear all the losses based on actual executed prices, and hold harmless CHANDRAKALA from any, and against all loss, damages claim, expenses and costs due to the squaring off the entire positions or non –squaring off the positions and resulting Physical delivery.

Policy on the Physical settlement of the derivative contracts in the Futures / Options segment.

The physical settlement of stock derivatives takes place by giving or taking delivery of the actual shares. Physical settlement of stock derivatives is allowed on expiry for the clients meeting below requirements:

·        Mandatory maintenance of Demat account for derivatives trading.

·        100% of the contract value should be made available in the ledger to meet the fund obligation

·        In the case of a stock delivery position, (short future, short call, long put), you will be allowed to carry the position to expiry only if the deliverable shares are in the Demat account.

In case the client fails to meet securities obligation, the given settlement would result in a short delivery. Appropriate penalties to the tune of 20% or more will be applicable. It is the responsibility of client to understand the physical settlement process well.

What are the Risk Parameters measured by the RMS for monitoring & squaring off the Positions?

·        CHANDRAKALA shall square off all intraday positions within the last half an hour session of the trading of the respective exchange segments, if not squared off by the clients.

·        CHANDRAKALA shall not allow carry forward of the positions taken under the MIS/CO/BO intraday products.

·        CHANDRAKALA shall not provide any intraday adhoc margin other than the credit balance uploaded as base capital.

·        Clients are permitted to convert the product from MIS to NRML with the available margin before the start of the time-based auto square of period of the respective segments of the exchanges.

·        CHANDRAKALA has set restrictions on single order quantity and single order value on various exchange segments. This is done to prevent “fat finger errors” and is also a mandatory exchange requirement. The values set by CHANDRAKALA are based on CHANDRAKALA’s assessment of risk/ CHANDRAKALA’s net worth /trading turnover of CHANDRAKALA in various exchange segments etc. It is possible for client orders to get rejected due to these limits getting hit. On the best effort basis CHANDRAKALA will review these limits and re-adjust them to allow client orders. However, this is at the sole discretion of CHANDRAKALA and CHANDRAKALA will not be responsible for any loss / opportunity loss as a result of orders being rejected by the trading terminal due to these limits being hit.

·        CHANDRAKALA shall square off the Client Unpaid Securities Account position on 6th day (on T+1+5 ) if debit in client account is not cleared by that time or the credit coverage ratio reduces Below 110%, whichever is earlier. Credit coverage ratio is Total value of stocks held with CHANDRAKALA in Client Unpaid Securities Account plus sale value of open and un-settled positions divided by total debit in client ledger.

·        CHANDRAKALA shall not allow trading in the illiquid scrips as specified by the exchange / or at its own discretion in the Options and futures segment.

·        CHANDRAKALA shall not allow the delivery of the commodities in the Commodity segment.

·        CHANDRAKALA shall not allow to devolve the commodity option contracts in the Commodity segment unless and until the clients specifically writes to CHANDRAKALA to devolve the contract and also should have the sufficient margins.

·        CHANDRAKALA shall not be responsible or held liable for the losses/ damages/ opportunity claims etc that arises due to the technical issues in the trading system / malfunction of the trading software during the trading hours or after the trading hours.

Conditions under which a client may not be allowed to take further/fresh position or the broker may close the existing position of a client:

We have margin-based RMS system. Client may take exposure up to the amount of margin available/shortage of margin as per our RMS policy of the company. The existing position of the client is also liable to square off/Close out without giving notice due to shortage of margin/non making of payment for their pay in obligation/outstanding debts. The following are the condition under which the client is not allowed to trade further

·        if the client’s debit on the T+1+5 days is not settled,

·        If the client is being debarred by the SEBI/ or any of the regulator.

·        If the client’s loss on open positions exceeds 60% of the ledger balance.

·        If the client’s transaction is reported as suspicious and identifies under PMLA.

CHANDRAKALA’s risk management Policy on Devolvement.

CHANDRAKALA shall follow the process below and shall square off the entire ITM and CTM contracts before devolving to the futures contract. The Process is given below.

·        Sensitivity Report provided by exchange prior 4 days from the expiry day.

·        Informing to the clients on best effort basis about the levy of devolvement margins and the shortfall in margins, if any after the levy.

·        Square off the all ITM, CTM & ATM option open position after auto square off execution at the option expiry day.

·        All the OTM contracts expire worthless and it will be zero

Good Till Trigger (GTT)

Features and Terms

This is a special order type where you can place a buy or sell order at any price and it will stay valid till the time it gets triggered subject to a maximum duration of one year for equities and 1day prior to contract expiry for derivatives

GTT order can be placed only as CNC in equity and NRML for Derivatives, which means that necessary margin/ holdings would be required for a GTT order to be sent to exchange when triggered. Also, GTT can be placed only as a limit order with a trigger price. For a buy order, the trigger price should be preferably lower than the limit price and for a sell order, the trigger price should be preferably higher than the limit price for better chance of GTT orders getting traded.

Special Features of GTT Orders

·        They are valid up-to 1 year for Equity and 1 day prior to expiry for Derivatives (if not triggered) and you need not repeat the order on a daily basis.

·        The trigger price can be anything and need not be within the DPR or Daily Price Range. This means that you may place an order for a scrip at Rs. 500 even if it trades at Rs. 1000 Rupees

·        GTT can be placed in Equity and Derivatives across various segments to a maximum of 20 orders per client.

·        GTT is an order maintained at our Servers and it gets pushed to the Exchange only when the LTP hits the trigger price

Verification of GTT Order

The orders once placed can be viewed only under GTT Order Book and it will not reflect in the normal Order Book. You can also modify or cancel your GTT orders until it gets triggered.

Validity of GTT

Good Till Trigger order, as the name suggests is valid only till the order gets triggered or for a period of 1 year for Equity and 1 day prior to expiry for Derivatives, whichever is earlier. The moment your GTT order gets triggered, it loses its validity beyond that day (i.e., the day of trigger)

Risks of GTT

·        GTT order does not check for available margin or stock at the time of placing order. It means that a GTT buy order will be accepted even if there is 0 margin and GTT Sell will be accepted even if there is no stock holding at the time of placing the order. It verifies the margin / availability of stock only when the GTT order gets triggered

·        GTT doesn’t guarantee execution of order. In a volatile market, there are lot of possibilities for the trigger price to be touched but the limit price is skipped. In such a case, the GTT order will be pushed to Exchange the moment the trigger price is hit but will stay pending if the market price jumps above the limit price in case of BUY order or below the limit price in case of SELL Order. The pending order, will eventually get cancelled once the market closes for the day like any other normal limit order that is not executed for the day.

·        It is your responsibility to check the pending GTT for a scrip before placing an order on the same scrip

·        GTT Orders may not be placed, rejected, cancelled, not executed, etc., due to various scenario which may include the below. These are just guidelines of scenario in which GTT may not work but are not exhaustive.

·        Corporate action– Chandrakala reserves the right to cancel GTT orders on stocks which involve a corporate action before the ex date though Chandrakala does not guarantee the same. It is your sole responsibility to modify or cancel the GTT order prior to corporate actions.

·        Series Change– If the series of the stocks changes

·        GTT Validity expiry– The orders will be cancelled after 365 days for equity and 1 day prior to expiry for Derivatives if not triggered.

·        ASM/GSM– Scrip Moves from one Graded Surveillance to another, like ASM to GSM

·        Blocked/Banned stocks– Scrip in which GTT is placed moves to any category in which Chandrakala generally does not allow trades according to internal RMS policy

·        Network Outages– Due to fluctuation in internet connection, broadcast, connectivity with Exchange or any other technical issues

·        Margin Shortfall– There is no sufficient margin at the time of pushing order to the Exchange

·        DPR limit– Order will also be rejected by the exchange after getting triggered, if the limit price is not within the circuit limit or DPR (daily price range)

·        Volatility/Flash Trade– If the trigger price gets hit but the order doesn’t get executed at a limit price due to volatility or due to reasons mentioned in (f) or flash trade or any other such reason

·        Blocked/ Illiquid Options– If a GTT is triggered for an option contract that isn’t allowed for trading by Chandrakala.

·        Derivative Expiry– GTTs for derivative contracts are only valid 1 day prior to series expiry. Pending GTTs for a contract will be cancelled one day prior to expiry.

·        RMS policies– There are various checks that the RMS at Chandrakala does on a pre-trade basis as and when GTT orders get triggered, but before orders are placed at the Exchanges. All such checks are done as per the rules of the Exchanges, SEBI, RBI & Chandrakala’s internal risk management policies and procedures.

GTT order does not assure execution of an order and includes/involves all risks with respect to Internet Based Trading and risks with respect to trading in the Capital Markets segments will extend for trading using the GTT orders as well. All rules and regulations prescribed by SEBI and the Exchanges would have to strictly be followed while placing instructions through Chandrakala. All other laws and regulations as per the Republic of India would be applicable.

No Liability for Any Non Execution or Any Lost Opportunity

Chandrakala, at all times, bears no liability towards clients for any reason whatsoever with respect to using the GTT Feature; including but not limited to, non execution of any order using the GTT Feature / either leg of the order, any opportunity loss for non execution of such orders/trades, any cancellation, rejection or non placement of any orders, and any such other claims which may arise from you with respect to using the GTT Feature.

Subject to Change

The terms and conditions of GTT is subject to change from time to time at the sole discretion of Chandrakala without prior intimation. It is your responsibility to review this Terms of Usage every time you use the GTT Feature.

Margin Trade Funding (MTF):

Margin Trade Funding (MTF) is a funding product currenly NOT offered by CHANDRAKALA.

Internal Control policy

Policy on the limit setting in the Exchange terminals.

CHANDRAKALA has set limits in Trading Terminals based on the risk mitigation and safe guard mechanism from “fat finger trades” on the following basis:

·        Quantity limit for each order

·        Value limit for each order

·        User value limit for each user ID

·        Branch value limit for each branch ID

·        Spread order Quantity and Value Limit.

Further, if at any time if the BOLT terminal set limits exceeds, CHANDRAKALA shall review and reset the limits as per the risk mechanism of the Company and shall allow the clients to trade. But in the meantime, if there are any order rejections or the trading down time, due to exceeding the various set limit, the client agrees that, CHANDRAKALA shall not able to be responsible or liable for any kind of damages / losses / opportunity losses arising out of exceeding the NEAT set limit.

Contract notes and margin statement

CHANDRAKALA will issue contract notes & margin statements to its clients within 24 hours of the close of trading. Along with the Contract Note, the client shall also be furnished with a copy of the daily margin status which is also available to be viewed on their respective Back office reports available online.

Policy on hedging the positions:

Client can hedge their open positions to minimize the loss, only if there is full margin available for the current positions. CHANDRAKALA shall allow these hedging, as per the margin policy of the Company.

Policy on the futures Contracts / products/shares/illiquid option contracts allowed for the trading:

CHANDRAKALA, reserves the right to add or remove any Contracts (Liquid /Illiquid) Commodity/ Equity products from the trading platform without giving any prior notice or by intimating the client in advance. CHANDRAKALA shall not provide the entire commodity products ( Non Agri) / certain Equity Futures & Option Contracts for trading.

Applicable brokerage rate:

The Client agrees to pay the brokerage charges, Exchanges related charges, statutory charges and any other charges (including but not limited to security handling charges on settlement) as it exists from time to time and as it applies to the Client’s account in respect of transactions and services that the Client receives from CHANDRAKALA. The brokerage shall be paid in the manner intimated by CHANDRAKALA to the Client from time to time, including as a percentage of the value or the trade or as a flat fee or otherwise, together with the tax as may be applicable from time to time on the same. Brokerage will be charged within the limits prescribed by SEBI/Exchange and other charges are chargeable / payable as per the Tariff Sheet provided by CHANDRAKALA to the client from time to time.

Deregistering a client:

Notwithstanding anything to the contrary stated in the agreement, CHANDRAKALA shall be entitled to terminate the agreement with immediate effect in any of the following circumstances.

·        SEBI or any regulatory body has passed an order against such client prohibiting or suspending such client from participating in the securities market or has levied any penalty on the client

·        Such client’s name appears in the UN list of prohibiting entities or SEBI debarred list

·        If the action of the client is prima facie illegal/improper or such as to manipulate the price of any securities or disturb the normal/proper functioning of securities or disturb the normal/proper functioning of the market, either alone or in conjunction with others.

·        If there is any commencement of a legal process against the client under any law in force;

·        On the death/lunacy or other disability of the client.

·        If the client being a partnership form, has any steps taken by the client and/or its partners for dissolution of the partnership.

·        If the client suffers any adverse material change in his/her/its financial position or defaults in any other agreement with the stock broker.

·        If there is reasonable apprehension that the client is unable to pay its debts or the client has admitted its inability to pay its debts as they become payable.

·        If the client is in breach of any term, condition or covenant of this agreement.

·        If the client has made any material misrepresentation of facts, including (Without limitation) in relation to the security;

·        If a receiver, administrator or liquidator has been appointed or allowed to be appointed of all or any part of the undertaking of the client;

·        If the client has taken or suffered to be taken any action for its reorganization, liquidation or dissolution;

·        If the client has voluntarily or compulsorily become the subject of proceedings under any bankruptcy or insolvency law or being a company, goes into liquidation or has a receiver appointed in respect of its assets or refers itself to the board for industrial and financial reconstruction or under any other law providing protection as a relief undertaking.

·        If any covenant or warranty of the client is incorrect or untrue in any Material respect;

Dormant or Inactive account:

CHANDRAKALA as a preventive method to protect the account of customers shall deactivate those accounts that have not traded in the given period of twelve months,( 365 days ). Once the account is deactivated customer will not be able to place any order in any trade segments. As a practice, CHANDRAKALA will exercise due diligence in verifying customer credentials before reactivating a dormant account. The above stated policy may be modified at any time in accordance to the various rules, regulations, byelaws and guidelines that may be prescribed by SEBI, Exchange or any other competent authority or as per the internal policy of the organization from time to time. This policy for dormant account is over and above the transaction monitoring in dormant account as per the Anti-Money laundering policy of the organization.

Recording of Conversations:

The Client agrees and authorizes CHANDRAKALA, at its sole discretion and without prior notice to the Client, to record any conversation between the Client and CHANDRAKALA. Such recording shall be accepted as conclusive and binding for all purpose s including resolving disputes regarding execution of orders subject to these Terms.

Physical /Digital contract note:

The contract notes are the details of the transactions done by the client on the given day, and as per the guide lines it has to be sent to the clients within 24 hours. If at any time the digital contract note sent to the client returns/bounces due to the various reasons , and the reasons provided by the client does not satisfy/clarify the bounced reasons, then CHANDRAKALA, shall deactivate the client trading account from further trading, until the client submits the fresh e-mail id.

Technical/ Communication issues:

Trading in exchange is in electronic mode based on VSAT, leased line, Broad Band, ISDN, combination of technologies and computer systems to place and route orders. The client understands and agrees that there exists a possibility of communication failure or system problem or slow or delayed response from the system or trading halt or any break down in our back office / front end system, or any such other problems/glitch whereby not being able to establish access to the trading system/network, which may be beyond the control of CHANDRAKALA . This issue may result in delay in processing or not processing buy or sell orders either in part or in full. The client further agrees that, client shall be fully liable and responsible for any such problem/ fault and CHANDRAKALA shall not be held liable on these technical issues and it is being agreed and covered under the internet and wireless based trading agreement.

Authorized Representative:

The instructions issued by an authorized representative of the Client shall be binding on the Client in accordance with the letter authorizing the said representative to deal on behalf of the Client. The Client is aware that authentication technologies and strict security measures are required from the Internet trading through order routed system and undertakes to ensure that the security code(s) of the Client and/or his/her/its authorized representative.

Broker’s Liability:

Under no circumstances shall CHANDRAKALA or anyone involved in creating, producing, delivering or managing the Member’s services be liable for any direct, incidental, special or consequential damages that result from the use of or inability to use the service, delay in transmission of any communication, in each case for any reason whatsoever (including on account of breakdown in systems/trading down time ) or out of any breach of any warranty or due to any fraud committed by any person whether in the employment of the member or otherwise.

Communication/Notices:

Client can view details of his ledger, margin, shortfall etc. through his secured login portal on CHANDRAKALA website or by logging to the Mobile App, and the client has to be aware about his position, outstanding balance and Risk on the holding positions. Further, CHANDRAKALA is under no legal obligation to send any separate communication other than the contract note and margin details and these shall be communicated through SMS / Email id’s registered with CHANDRAKALA.

Policy on the client’s default or non-settlement of dues:

The Client agrees and authorizes CHANDRAKALA, at its sole discretion and without prior notice to the Client, to record and report the client default status/non settlement of dues/disputes/civil/criminal case details to any agency/regulator/forum/ at any time as and CHANDRAKALA requires and feels.

Customer support:

CHANDRAKALA has provided client with a dedicated email ID and telephone numbers for various of its services as given below and as available on the contact us page of the website.
https://www.chandrakalabroking.com/contact-us/

Investor grievances

The Compliance Officer shall be the designated officer for handling the Investors Grievances and Client Complaints. The email ID you can write to in case you have any grievance is investorgrievance@chandrakalabroking.com and for the escalations cn@chandrakalabroking.com. The resolution of the Complaint shall be done at the earliest and the same shall be recorded in the register along with the date of resolution.

Notes:

·        Please be advised that a Call & Trade charge will be applied for all OFS, Buyback and Takeover orders placed through CHANDRAKALA.

·        During times of extreme volatility, the loss could be more than the funds available in your account before the position is squared off. All resulting charges or debts that might occur from such square offs will have to be borne by the client.

·        Fines levied by the exchange for short margin will be payable by the client.

·        CHANDRAKALA shall square off all intraday positions within the last half an hour session of the trading, if not squared off by the clients.

·        CHANDRAKALA shall not allow carrying forward the positions taken under the MIS intraday product.

·        Clients are permitted to convert the product from MIS to NRML with the available margin on or 30 minutes before the market closes.

·        CHANDRAKALA shall square off the Client Unpaid Securities Account position on 6th (T+1+5) day, if the payments are not received or the credit coverage reduces to 110%, whichever is earlier.

·        CHANDRAKALA shall make a margin call if the daily MTM loss is not paid by the client in the Margin Trading Funding account, and shall square off accordingly.

·        CHANDRAKALA shall not allow trading in the illiquid securities in the Options segment as specified by the Company’s RMS policy.

·        Payments will only be accepted from the client’s registered bank account, cash and DD payins are not accepted.

·        Instruments available for trading at CHANDRAKALA are subject to the discretion of the risk management team, and these may change from time to time for various reasons.

PMLA Policy

Anti-Money Laundering Measures

Background: The Prevention of Money Laundering Act, 2002 came into effect from 1st July 2005. Necessary Notifications / Rules under the said Act were published in the Gazette of India on 1st July 2005 by the Department of Revenue, Ministry of Finance, and Government of India.

SEBI vide circular dated 18th January 2006 required Market intermediaries to lay down policy framework for anti-money laundering measures to be followed. CHANDRAKALA being a Stock Broker needs to adhere to the same. SEBI has also issued a Master circular dated 19th December 2008, which consolidates all the requirements/obligations issued with regard to AML/CFT until December 15, 2008

Objective: The objective is to have a system in place for preventing any money laundering financial transaction through us and also to identify, monitor, report any such transaction to appropriate authorities.

“Know Your Customer “(KYC) is the guiding principle behind the Anti-Money Laundering (AML) measures. It incorporates the “Know Your Customer” Standards & “Anti Money Laundering” Measures, hereinafter to be referred as “KYC Standards” and “AML Measures “. KYC Standards and AML Measures are aimed to know/ understand the company’s customers, the beneficial owners, the principals behind customers who are acting as agents and their financial dealings better which in turn will help the Company to manage its risks prudently

CHANDRAKALA is fully committed to establish appropriate policies and procedures for ensuring effectiveness and compliance with respect to all relevant legal requirements.

The regulatory / statutory requirements

An officer of the company will be designated as “Principal Officer” who will ensure proper discharge of all legal requirements with respect to the same. For the purpose of monitoring the transaction and reporting the same to the FIU-IND, Mr. Sumati Kumar Surana is appointed as the principal officer and the same has been reported to the FIU-IND.

The Principal Officer will be responsible for

·        Compliance of the provisions of the PMLA and AML guidelines

·        Act as a central reference point and play and active role in identification & assessment of potential suspicious transactions

·        Ensure that CHANDRAKALA discharges its legal obligation to report suspicious transactions to concerned authorities.

The main aspect of this policy is Customer Due Diligence process which includes the following:

·        Obtaining sufficient information about the client in order to identify who is the actual beneficial owner of the securities or on whose behalf transaction is conducted

·        Verify the customers identity using reliable independent source document, data or information

·        Conduct on-going due diligence and scrutiny of the account/ client to ensure that the transaction conducted are consistent with the clients’ background/ financial status, its activities and risk profile.

Client Acceptance Policy:

·        The Customer Acceptance norms specified herein below shall be applicable to all clients of Chandrakala Broking Services Pvt Limited. All persons sourcing clients on behalf of Chandrakala Broking Services Pvt Limited shall be required to adhere to the requirements specified herein below that are aimed to identify the type of clients.

·        In normal circumstances, all prospective clients are accepted as client by the company except the clients as per the Debarred Clients.

·        In-person Verification: In-person verification (IPV) shall be mandatory for all clients. Accounts shall be opened only for those persons whose in-person verification has been done as per the SEBI/Stock Exchange/ Depository or other regulations in this regard.

·        KYC Procedures : Accept only clients in respect of whom complete KYC procedures have been completed. Accounts shall not be opened in case of client fails to submit any required documents as per Customer Identification Policy below:

·        Documents shall be accepted as per the checklists given from time to time

·        All details in the form shall be filled in by the clients without fail

·        There shall be no compromise on submission of mandatory information – Accounts should not be opened if the client refuses to provide information / documents.

·        Debarred Clients: Before opening of clients’ accounts, check should be done to verify whether the client’s name matches with names in any of the checklist.

·        SEBI Debarred list

·        UNSC, FATF list

·        Client being defaulter and have cases filed against him from NSE, BSE & MCX

·        Such other list that may be specified by the Regulators / Compliance Department from time to time

Clients of Special Category (CSC) shall be read as under:

We have maintained the internal management system which reflects the various categories of the clients who have registered and trading with the company. The client category segregation is automated in the system and system will allocate the category as follows:

Non-Resident Clients:

While opening NRI account utmost care is being exercised. Following documents are collected from the NRI clients:

·        Pan Card Copy

·        VISA Copy

·        Passport Copy

·        Overseas Address Proof

·        Cancelled Cheque copy

·        PIS Permission issued from RBI

·        Income proof for F&O Account Opening

All transactions of NRI clients are scrutinized before executing the transaction in the system for the source of funds and securities. Upon satisfying the origination of the funds and securities, the trading account of this category is allowed to trade

High Net worth clients:

High net worth clients could be classified if at the account opening stage or during the course of the relationship, it is realized that the client’s investments or the appetite for investment is high. The High-net-worth clients are basically categorized as the clients having Net worth of Rs.10 Crores or more.

Trust, Charities, NGOs and organizations receiving donations:

Both public as well private, registered as well non registered trust will have to be classified in the special category. Any Charitable or Non-governmental organization or a Non Profit Organization will be also classified herein.

Companies having close family shareholdings or beneficial ownership:

In case of close family shareholdings, the objective is to understand whether the beneficiaries of two or more accounts, which have been opened at different times, are same, if yes, then both need to be marked under this special category.

Politically exposed persons (PEP):

PEP are the individuals who are or have been entrusted with prominent public functions in a foreign country, e.g. Heads of States or of Governments, senior politicians, senior government/judicial/military officers, senior executives of state-owned corporations, important political party officials, etc. PEPs may be identified in below mentioned manner:

·        The client himself provides the details of being PEP

·        Through publicly available information

In case of PEPs an extra care is taken while opening the account. Such accounts are opened only after due approvals from Senior Management.

Further customers are categorized into the following risk categories based on the risk profile of the clients.

1.     High Risk Client

2.     Medium Risk Client

3.     Low Risk Client

High Risk Clients:

·        Clients who are refusing to provide/update their financial / KYC details

·        Clients against whom any action has been taken by SEBI/Stock Exchanges or any other regulatory authority in the past

·        Individual clients whose employer is a politician, Income tax / custom department or any other sensitive government department.

·        Clients residing in sensitive areas. For example, Naxalite region, areas where dealing in narcotic drugs, immoral traffic, corruption etc is highly prevalent.

Medium Risk Clients

·        Client whose account is operated by POA holder other than CHANDRAKALA.

·        Clients whose trading pattern is not in line with their declared Income.

·        Clients who have changed KYC details multiple times

Low Risk Clients: All clients who not falling into the above two criteria

Suspicious Transaction Reporting:

The surveillance department of CHANDRAKALA handles this part of the anti-money laundering policy, and surveillance is the one which gives or cuts the exposure or the limit for the purchase or sale of securities. The margin exposure is decided on the credit balances available in the client account and also as per the risk parameters set in the system.

The surveillance department monitors each and every transaction of the clients. If any heavy bulk or suspicious transaction is done by the client, then the same is reported to the Principal Officer of the company.

Special attention shall be paid to all complex unusually large transactions / patterns which appear to have no economic purpose. It should be ensured that there is no undue delay in analysis and arriving at a conclusion on suspicious transactions. Suspicious transactions include exchange generated alerts in addition to in-house offline alerts.

Suspicious transactions include the following

·        Substantial increase in activity without any apparent cause

·        Large numbers of accounts having common parameters such as common partners / directors / promoters / address / email address / telephone numbers / introducers or authorized signatories;

·        Sudden activity in dormant accounts;

·        Unusual and large cash deposits made by an individual or business exceeding client’s declared income

·        Large deals at prices away from the market.

Suspicious transactions will be monitored and the client will be asked to submit clarification. In case of client’s declared income is observed to be mismatch with client’s declared income, client will be required to update their KYC information accordingly in their records.

Retention of Records:

All the KYC documents will be indexed and will be sent to the Godown where the same will be packed in the polythene bag and stored in carton box which is fire proof. Further, the KYC forms and other requests and other requests submitted by the client towards updating/modification of the details also attached to the respective client’s KYC form are scanned and made available for verification at any point of time.

Dormant Accounts:

CHANDRAKALA as a preventive method to protect the account of customers shall deactivate those accounts that have not traded in the given period of twelve months, (365 days). Once the account is deactivated customer will not be able to place any order in any trade segments. As a practice, CHANDRAKALA will exercise due diligence in verifying customer credentials before reactivating a dormant account. The above stated policy may be modified at any time in accordance to the various rules, regulations, byelaws and guidelines that may be prescribed by SEBI, Exchange or any other competent authority or as per the internal policy of the organization from time to time. This policy for dormant account is over and above the transaction monitoring in dormant account as per the Anti-Money laundering policy of the organization.

Funds Pay-in & Pay-out to the Clients:

All funds pay-out made by the company to the clients only to the respective client’s name only with crossed cheque with bank account number in payee details or fund transfer to the respective client’s registered bank account only. All funds pay-in received from the clients are verified and validated with the registered bank details of the clients before crediting the amounts to the client account. Further, we have clear policy on not to entertain any cash transaction from/to the clients.

Employee Hiring and Training:

Employee hiring is processed through three modes. First mode is reference through the existing employees; second mode is through the Consultants and third mode of recruitment is from Job portals. All recruitments happen through minimum of two level of interviews one level through HR and second level is through the respective reporting manager. For manager and above positions, Top management also interviews before finalizing the candidate after necessary background checks are carried out.

CHANDRAKALA has an ongoing employee training program for its staff in relation to AML & CFT procedures. We focus on Frontline staff, back-office staff, compliance staff, risk management staff & staff dealing with new clients. Training is crucial for all staff members in order to fully understand the rationale behind these directives, obligations & requirements; and to implement them consistently and be sensitized to the risks of the systems which may be misused by unscrupulous elements.

Review of Policy

Principal Officer & Compliance officer shall be the authority to review the policy updated by the company with any amendment etc., as directed by SEBI / FIU-IND and all changes shall be deemed to be incorporated in this policy. This AML policy is designed to achieve and monitor our Company’s ongoing compliance with the requirements of the PMLA and implementing regulations under it. The policy is reviewed once in 6 months or as and when any important circulars are issued by any regulatory authority.

The principal officer shall report the nature, amount, date and all related details of any and all suspicious transactions recorded.

Amendment / Modification of the Terms:

CHANDRAKALA may at any time amend these Terms, by modifying or rescinding any of the existing provisions or conditions or by adding any amendment on the web site. CHANDRAKALA shall not be required to communicate any modification or rescission individually to the Client either through physical or electronic form, any separate notice of amendment or modification is deemed to be waived by the Client. The continued use of the services of the member after such notice will constitute acknowledgement and acceptance of such amendment.

Representations and warranties

The Client hereby warrants that he is capable of executing the present agreement and that the terms of the present are not in contravention of any rights of any party with whom such client has any agreements, at any time prior to the execution of this agreement.

The client agrees to provide and continue to provide all details about themselves as may be required by CHANDRAKALA, including but not restricted to PAN Number or Aadhar card or Unique Identification Number (issued by SEBI) , and states all details and facts represented to CHANDRAKALA are true.

The Client is aware and acknowledges that trading over the internet involves many uncertain factors and complex hardware, software, systems, communication lines, peripherals, etc., which are susceptible to interruptions and dislocations; and the Online Trading Service of CHANDRAKALA may at any time be unavailable without further notice. CHANDRAKALA and the Exchange do not make any representation or warranty that the Online Trading Service of CHANDRAKALA will be available to the Client at all times without any interruption. The Client agrees that he shall not have any claim against the Exchange or CHANDRAKALA on account of any suspension, interruption, non-availability or malfunctioning of the Online Trading System or Service of CHANDRAKALA or the Exchange’s service or systems for any reason whatsoever.

CHANDRAKALA states that it has complied with and will continuously comply and if not proposes to comply with all statutory and regulatory directions to offer the Internet Trading services through the website https://www.chandrakalabroking.com and sub domains of Chandrakalabroking.com for dealing in cash, Mutual Fund and derivatives segment of the exchange

The Client warrants that all or any of the securities deposited by him with CHANDRAKALA in respect of margin requirements or otherwise, are owned by him and the title thereof is clear and free of encumbrances

The Client warrants that all or any of the securities deposited by him with CHANDRAKALA in respect of margin requirements or otherwise, are owned by him and the title thereof is clear and free of encumbrances.

The Client/s agree to indemnify and hold CHANDRAKALA harmless against any loss that may be suffered by it, its customers or a third party or any claim or action that may be initiated by a third party which is in any way the result of improper use of user ID and password by the Client/s

The Client hereby confirms and warrants that the Client authorises CHANDRAKALA to take all such steps on the Client’s behalf as may be required for provisions or to complete or settle any transactions entered into through or with CHANDRAKALA or executed by CHANDRAKALA on behalf of the Client. However, nothing herein shall oblige CHANDRAKALA to take such steps.

Fees and brokerage

The Client agrees to pay to CHANDRAKALA brokerage, commission, fees, and the regulatory charges like, Exchange penalties, GST other taxes, stamp charges transaction expenses and clearing charges etc. as they exist from time to time and as they apply to the Client’s account and transactions, and for the services that he receives from CHANDRAKALA.

Investment or any other advice

The Client agrees that none of the services available on the website shall amount to investment advice on the part of CHANDRAKALA. The Client agrees that in the event of CHANDRAKALA or any employee or official of CHANDRAKALA, providing any information, recommendation or advice to the client, the client may act upon the same at the sole risk and cost of the client, and CHANDRAKALA shall not be liable or responsible for the same.

CHANDRAKALA, and its officers, directors, partners, employees, agents and affiliates will have no liability with respect to any investment decisions or transactions of the client

Miscellaneous

CHANDRAKALA does not warrant that the service will be uninterrupted or error-free. The service is provided in an “as is” and “as available” basis without warranties of any kind, either express or implied, including, without limitation, those of merchantability and fitness for a particular purpose. The client agrees that CHANDRAKALA shall not be held responsible for delays in transmission of orders due to breakdown of the system or failure of communication facilities either due to the fault of the systems of CHANDRAKALA or of the Exchanges or otherwise or for any other delay beyond the reasonable control of CHANDRAKALA due to a breakdown or failure of communication facilities or for any other delay beyond the reasonable control of CHANDRAKALA.

All modification to this Agreement shall be made solely at the discretion of CHANDRAKALA and shall be intimated to the client by a suitable modification to the terms and conditions or other applicable section on the website or in any other manner.

Indemnity

In the event of death or insolvency of the client, winding up or liquidation, or their otherwise becoming incapable of receiving and paying for or delivering or transferring securities which the client has ordered to be bought or sold, CHANDRAKALA may close out the transaction of the client and the client or his legal representative shall be liable for any losses, costs and be entitled to any surplus which may result therefrom.

The client is aware that authentication technologies and strict securities measures are required for internet trading through order routed system and undertake to ensure that the password of the client and /or their authorized representatives are not revealed to any third party. The client also agrees to indemnify CHANDRAKALA from any loss, injury, claim or any action instituted against CHANDRAKALA arising from the misuse of the password by any party.

Force majeure

CHANDRAKALA shall not be responsible for delay or default in the performance of their obligations due to contingencies beyond their control, such as (including but not limited to) losses caused directly or indirectly by exchange or market rulings, suspension of trading, fire, flood, civil commotion, earthquake, war, strikes, failure of the systems, failure of the internet links or government / regulatory action.

Severance

In the event of any one or more of the provisions contained in this Agreement becoming invalid, illegal or unenforceable in any respect under any law for the time being in force, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be prejudiced or affected thereto.

Jurisdiction

All trades, transaction and contracts are subject to the Rules and Regulations of the respective Exchange on which the trades have been executed and shall be deemed to be and shall take effect as wholly made, entered into and to be performed as per the rules and regulations of the exchanges and the parties to such trade shall be deemed to have submitted to the jurisdiction as per the exchange rules, byelaws and regulations.

Further if the client at any time during the period of trading with CHANDRAKALA or immediately after, any dispute or differences arises between the parties hereto in relation to or in connection with the terms and Conditions or policies and procedures of the Company, shall be referred to the Exchanges investor Grievance Redressal Mechanism. But, if at any time if there are any disputes or differences referred to the Courts, the Jurisdiction shall be the Courts of BIKANER only.

Notice

All notices, correspondences or communications issued under this agreement shall be served in any one or more of the following modes of communications and such notice or communication shall be served at the ordinary place of residence and/or last known web address / residing address and / or at the ordinary business address of the party to this agreement such as –

·        By hand

·        Delivery by post/courier

·        By registered post

·        By email

·        By affixing it on the door at the last known business or residential address.

·        By oral communication to the party or on the last known telephone number or on the recording machine of such number

·        By advertising in at least one prominent daily newspaper having circulation in the area where the last known business or residential address of the party is situated.

·        By notice posted on the notice board of the Exchange if no address is known. Any communication sent by CHANDRAKALA to the Client shall be deemed to have been properly delivered or served, if such communication is returned on CHANDRAKALA as unclaimed / refused / undelivered, if the same was sent in any one more of the above modes of communication to the ordinary place of residence and / or last known web address /residing address and / or at the ordinary business address of the party to this agreement

By selecting and accepting the “Terms and conditions”, during the login process or while applying for any service, the client agrees to be legally bound by these Terms and Conditions. The client agrees that CHANDRAKALA may at its sole discretion vary the terms and conditions from time to time and client agrees to abide by the same.

I/WE HAVE UNDERSTOOD THE ABOVE TERMS AND CONDITIONS AND INTENTIONALLY WISH TO OPEN A DEMAT AND TRADING ACCOUNT WITH CHANDRAKALA BROKING.