TRADING & DEMAT ACCOUNT OPENING FORM - NJ PMS

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This document contains important information ontrading in Equities/Derivatives Segments of the stockexchanges. All prospective constituents should readthis document before trading on Capital Market/CashSegment or F&O or MF segment of the Exchanges.NSE/BSE/SEBI does, neither singly or jointly, andexpressly nor impliedly, guarantee nor make anyrepresentation concerning the completeness, theadequacy or accuracy of this disclosure document norhas NSE/BSE/SEBI endorsed or passed any merits ofparticipating in the trading segments. This briefstatement does not disclose all the risks and othersignificant aspects of trading.In the light of the risks involved, you should undertaketransactions only if you understand the nature of thecontractual relationship into which you are enteringand the extent of your exposure to risk.You must know and appreciate that investment inEquity shares, Mutual Funds, derivative or otherinstruments traded on the Stock Exchange(s), whichhave varying element of risk, is generally not anappropriate avenue for someone of limitedresources/limited investment and/or tradingexperience and low risk tolerance. You shouldtherefore carefully consider whether such trading issuitable for you in the light of your financial condition. Incase you trade on NSE or BSE and suffer adverseconsequences or loss, you shall be solely responsiblefor the same and NSE or BSE, its Clearing Corporation/Clearing House and/or SEBI shall not be responsible,in any manner whatsoever, for the same and it will notbe open for you to take a plea that no adequatedisclosure regarding the risks involved was made orthat you were not explained the full risk involved by theconcerned member. The constituent shall be solelyresponsible for the consequences and no contract canbe rescinded on that account. You must acknowledgeand accept that there can be no guarantee of profits orno exception from losses while executing orders forpurchase and/or sale of a security or derivative beingtraded on NSE/BSE.RISK DISCLOSURE DOCUMENTRISK DISCLOSURE DOCUMENT FOR CAPITAL MARKET/CASHSEGMENT AND FUTURES & OPTIONS SEGMENT(To be given by the broker to the client )It must be clearly understood by you that your dealingson NSE/BSE through a member, shall be subject to yourfulfilling certain formalities set out by the member, whichmay interalia include your filling the know your clientform, client registration form, execution of an agreement,etc., and are subject to the rules, bye-laws andregulations of NSE/BSE and its Clearing Corporation,guidelines prescribed by SEBI and in force from time totime and circulars as may be issued by NSE/BSE or itsClearing Corporation/Clearing House and in force fromtime to time.NSE/BSE does not provide or purport to provide anyadvice and shall not be liable to any person who entersinto any business relationship with any trading memberand/or sub-broker of NSE/BSE and/or any third partybased on any information contained in this document.Any information contained in this document must not beconstrued as business advice/investment advice. Noconsideration to trade should be made withoutthoroughly understanding and reviewing the risksinvolved in such trading. If you are unsure, you mustseek professional advice on the same.In considering whether to trade or authorize someone totrade for you, you should be aware of or must getacquainted with the following:1. Basic risks involved in trading on the StockExchange1.1 Risk of higher volatility: Volatility refers to thedynamic changes in price that securities undergo whentrading activity continues on the Stock Exchange.Generally, higher the volatility of a security/F&O contract,greater are its price swings. There may be normallygreater volatility in thinly traded securities/ F&O contractthan in active securities/F&O contract. As a result ofvolatility, your order may only be partially executed or notexecuted at all, or the price at which your order gotexecuted may be substantially different from the lasttraded price or change substantially thereafter, resultingin notional or real losses.1.2 Risk of lower liquidity: Liquidity refers to the ability23
RISK DISCLOSURE DOCUMENTof market participants to buy and/or sell securitiesexpeditiously at a competitive price and with minimalprice difference. Generally, it is assumed that more thenumbers of orders available in a market, greater is theliquidity. Liquidity is important because with greaterliquidity, it is easier for investors to buy and/or sellsecurities swiftly and with minimal price difference, andas a result, investors are more likely to pay or receive acompetitive price for securities purchased or sold.There may be a risk of lower liquidity in some securitiesas compared to active securities. As a result, yourorder may only be partially executed, or may beexecuted with relatively greater price difference or maynot be executed at all.a) Buying/selling without intention of giving and/ortaking delivery of a security, as part of a day tradingstrategy, may also result into losses, because in such asituation, stocks may have to be sold/purchased at alow/high prices, compared to the expected price levels,so as not to have any obligation to deliver/ receive asecurity.1.3 Risk of wider spreads: Spread refers to thedifference in best buy price and best sell price. Itrepresents the differential between the price of buyinga security and immediately selling it or vice versa.Lower liquidity and higher volatility may result in widerthan normal spreads for less liquid or illiquid securities.This in turn will hamper better price formation.1.4 Risk-reducing orders: Most Exchanges have afacility for investors to place "limit orders", "stop lossorders" etc". The placing of such orders (e.g., "stoploss" orders, or "limit" orders), which are intended tolimit losses to certain amounts may not be effectivemany a time because rapid movement in marketconditions may make it impossible to execute suchorders.a) A "market" order will be executed promptly, subjectto availability of orders on opposite side, withoutregard to price and that, while the customer mayreceive a prompt execution of a "market" order, theexecution may be at available prices of outstandingorders, which satisfy the order quantity, on price timepriority. It may be understood that these prices may besignificantly different from the last traded price or thebest price in that security.b) A "limit" order will be executed only at the "limit" pricespecified for the order or a better price. However, whilethe customer receives price protection, there is apossibility that the order may not be executed at all.c) A stop loss order is generally placed "away" from thecurrent price of a stock, and such order gets activated ifand when the stock reaches, or trades through, the stopprice. Sell stop orders are entered ordinarily below thecurrent price, and buy stop orders are entered ordinarilyabove the current price. When the stock contractreaches the pre-determined price, or trades throughsuch price, the stop loss order converts to a market limitorder and is executed at the limit or better. There is noassurance therefore that the limit order will beexecutable, since a stock might penetrate the predeterminedprice, in which case, the risk of such ordernot getting executed arises, just as with a regular limitorder.1.5 Risk of news announcements: Issuers make newsannouncements that may impact the price of thesecurities. These announcements may occur duringtrading, and when combined with lower liquidity andhigher volatility, may suddenly cause an unexpectedpositive or negative movement in the price of thesecurity.1.6 Risk of rumours : Rumours about companies attimes float in the market through word of mouth,newspapers, websites or news agencies, etc. Theinvestors should be wary of and should desist fromacting on rumours.1.7 System risk: High volume trading will frequentlyoccur at the market opening and before market close.Such high volumes may also occur at any point in theday. These may cause delays in order execution orconfirmation.a) During periods of volatility, on account of marketparticipants continuously modifying their order quantityor prices or placing fresh orders, there may be delays inorder execution and its confirmations.b) Under certain market conditions, it may be difficultor impossible to liquidate a position in the market at areasonable price or at all, when there are no outstanding24
Page 1: Application No.HCUCCDP Client No. 1
Page 4 and 5: INSTRUCTIONS FOR DEMAT ACCOUNTInstr
Page 6 and 7: DETAILS & CHECKLISTNJ INDIA INVEST
Page 8 and 9: ADDITIONAL DETAILS FOR OPENING DEMA
Page 10 and 11: ADDITIONAL DETAILS FOR OPENING TRAD
Page 12 and 13: COMMON DETAILS FOR OPENING TRADING
Page 14 and 15: ...................................
Page 16 and 17: TARIFFSHEETCapital MarketTransactio
Page 18 and 19: ANNEXURE ADetails of terms & condit
Page 20 and 21: ANNEXURE BDetails of terms & condit
Page 22 and 23: RIGHTS & OBLIGATIONS OF STOCK BROKE
Page 28 and 29: RISK DISCLOSURE DOCUMENTorders eith
Page 30 and 31: GUIDANCE NOTEDO's AND DON'Ts FOR TR
Page 32 and 33: MANDATORY DOCUMENTPOLICIES AND PROC
Page 34 and 35: VOLUNTARY DOCUMENT(CLIENT IS REQUES
Page 36 and 37: VOLUNTARY DOCUMENTmay be required b
Page 38 and 39: VOLUNTARY DOCUMENTDocument, stateme
Page 40 and 41: VOLUNTARY DECLARATIONAUTHORIZATION
Page 42 and 43: CLIENT DP AGREEMENTThis agreement i
Page 44 and 45: CLIENT DP AGREEMENT10. Service of n
Page 47 and 48: SMS ALERT FACILITYReference No.: __
Page 49 and 50: SMS ALERT FACILITYand its officials
Page 51: ANNEXURE DSr.No.Members Name Gender
Page 59: DEBIT CARD REGISTRATION REQUESTTo,N
Page 63: Bank Mandate - General Terms & Cond
Page 67 and 68: Bank Mandate - General Terms & Cond
Page 69: Call & Transact Specific Terms & Co

TRADING & DEMAT ACCOUNT OPENING FORM - NJ PMS

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