We as a SEBI registered intermediary is mandated to follow the rules regulations circulars of the exchanges and SEBI issued from time and operates through well defined procedures and policies. The following policies have been mandated by SEBI to be made available to the clients. It should not be construed that these are the only policies followed by us.
A. Refusal of orders for Penny Stocks
Penny stocks are scrips which have a very low value and may or may not be illiquid. Most times there would be very few buyers /sellers for such scrips. The exchange (NSE and BSE) releases a list of such scrips and they are termed as illiquid securities. We retain the right to term a particular scrip as illiquid/penny stock based on the parameters it deems fit. These parameters may include, the past volume of the scrip, the volatility in the scrip among others, whether trading in a particular scrip falls within the purview of fraudulent trades or trades deemed to be fraudulent under the SEBI - prohibition of fraudulent and unfair trade practices relating to securities market regulation 2003.
We reserve the right to facilitate clients for placing orders with regards to the penny stocks or illiquid scrips as described above. We are not under any obligation to push orders which are in the nature of penny stocks/ illiquid scrips. We does not encourage trades in penny stock.
We may permit trades in a penny or illiquid scrip subject to certain conditions, such conditions may include
- Submission of a declaration, by the client, such declaration would include the reasons for entering into the said transaction and also whether the client has abided by the all the relevant regulations.
- In case of a buy transaction the client may be asked to deposit the full value of scrip which the clients intends to purchase, in case of sale transaction, the scrip will necessarily be transferred to our margin account prior to placing the sale order.
- Assessment of the past trading pattern or records of the client prior to giving permission - Conducting in person verification of the said client to establish the genuineness of the intended trade.
We reserve the right to refuse to place such orders whether or not the client fulfills the aforementioned conditions.
B. Setting Up Client’s exposure Limits
Exposure is allowed to the clients based on the margin available in form of funds or approved securities valued after deducting an appropriate haircut. Client is liable to pay applicable initial margins, withholding margins, special margins or such other margins as are considered necessary by the Exchange. Further we at our discretion may collect additional margin or may even reduce the margin even though not required by the Exchange. Clients are supposed to maintain sufficient balance with us pre trade depending on the channel through which they trade. We may levy additional margins or relax the margins earlier imposed based on factors such as, client level positions, volatility in a particular stock or the market in general. Though it shall be our endeavor to ensure that a proper notice is sent to the clients, this may not always be possible taking into consideration the market scenario. Exposure allowed to clients may wary, basis the clients past trading performance, quality of collateral, market circumstances and dynamics and other such factors.
Clients may trade themselves through the internet or may trade through the sub-broker or branch. For clients who trade through the internet, the exposure limit may be ascertained by them on the trading portal. Clients executing trades through subbroker or branches may check their exposure positions with the sub-broker/ Branch.
We shall not be responsible for any variation, reduction or imposition or the Client's inability to route any order through the Stock broker's website on account of any such variation, reduction or imposition of limits. We 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 based on certain risk parameters.
C. Applicable Brokerage
The brokerage applicable shall be as agreed upon from time to time. In case of any modification in the brokerage rate, the client shall confirm the same as required by us. The client agrees to pay to us, brokerage, Exchange related charges, statutory levies and any other charges (including but not limited to security handling charges on settlement) as are prevailing from time to time and as they apply to the client’s account, transactions and to the services that member renders to the client. We does not charge brokerage more than the maximum brokerage permissible as per the rules and regulations and bye laws of the Exchanges/SEBI. However the minimum brokerage as stipulated by the exchanges will be levied. The brokerage shall be charged as a percentage of the value of the trade or as a flat fee or otherwise, together with the statutory levies as may be applicable from time to time on the same. In addition to the brokerage charged the following charges will also be levied.
Schedule of charges
1. Account opening fees
2. SEBI turnover fees as applicable
3. Exchange Transaction charges as applicable
4. Securities Transaction Tax (STT)* :- The STT rates will vary with regards to trades done on delivery basis, non delivery basis and trades done in the derivative segment.
5. Service tax *
6. Stamp duty :- Statewise stamp duty as applicable will be levied.
7. Education Cess and higher Education Cess *
8. In addition to the above we shall debit the demat charges to the trading account.
9. In case there are any bank charges or any other charges levied by the exchange or any other authority on account of any violation done by the client, the same shall be charged.
10. DP charges of Rs 16/- per scrip will be applicable when the total traded value is Rs 3200/- or less in case of sell transaction also refer the applicable DP scheme
11. In case where the brokerage levied as a percentage on the value of the shares/ contract is less than the minimum brokerage payable per share/contract. The client will be charged such minimum rate of brokerage per share instead of the percentage
*These are government levies and are subject to change from time to time and will be charged in addition to the brokerage as applicable
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