TRADING & DEMAT ACCOUNT OPENING FORM - NJ PMS

GUIDANCE NOTEDO's AND DON'Ts FOR TRADING ON THE EXCHANGE(S) FOR INVESTORSBEFORE YOU BEGIN TO TRADE1. Ensure that you deal with and through only SEBIregistered intermediaries. You may check their SEBIregistration certificate number from the list available onwww.nseindia.com, www.bseindia.com andwww.sebi.gov.in.2. Ensure that you fill the KYC form completely andstrike off the blank fields in the KYC form.3. Ensure that you have read all the mandatorydocuments viz. Rights and Obligations, RiskDisclosure Document, Policy and Proceduredocument of the stock broker.4. Ensure to read, understand and then sign thevoluntary clauses, if any, agreed between you and thestock broker. Note that the clauses as agreed betweenyou and the stock broker cannot be changed withoutyour consent.5. Get a clear idea about all brokerage, commissions,fees and other charges levied by the broker on you fortrading and the relevant provisions/ guidelinesspecified by SEBI/Stock exchanges.6. Obtain a copy of all the documents executed byyou from the stock broker free of charge.7. In case you wish to execute Power of Attorney(POA) in favour of the Stock broker, authorizing it tooperate your bank and demat account, please refer tothe guidelines issued by SEBI/Exchanges in thisregard.TRANSACTIONS AND SETTLEMENTS8. The stock broker may issue electronic contractnotes (ECN) if specifically authorized by you in writing.You should provide your email id to the stock broker forthe same. Don't opt for ECN if you are not familiar withcomputers.9. Don't share your internet trading account'spassword with anyone.10. Don't make any payment in cash to the stockbroker.11. Make the payments by account payee cheque infavour of the stock broker. Don't issue cheques in thename of subbroker. Ensure that you have adocumentary proof of your payment/deposit ofsecurities with the stock broker, stating date, scrip,quantity, towards which bank/ demat account suchmoney or securities deposited and from which bank/demat account.12. Note that facility of Trade Verification is available onstock exchanges' websites, where details of trade asmentioned in the contract note may be verified. Wheretrade details on the website do not tally with the detailsmentioned in the contract note, immediately get in touchwith the Investors Grievance Cell of the relevant Stockexchange.13. In case you have given specific authorization formaintaining running account, payout of funds ordelivery of securities (as the case may be), may not bemade to you within one working day from the receipt ofpayout from the Exchange. Thus, the stock broker shallmaintain running account for you subject to thefollowing conditions:a) Such authorization from you shall be dated, signedby you only and contains the clause that you may revokethe same at any time.b) The actual settlement of funds and securities shallbe done by the stock broker, at least once in a calendarquarter or month, depending on your preference. Whilesettling the account, the stock broker shall send to you a'estatement of accounts' containing an extract from theclient ledger for funds and an extract from the register ofsecurities displaying all the receipts/deliveries of fundsand securities. The statement shall also explain theretention of funds and securities and the details of thepledged shares, if any.c) On the date of settlement, the stock broker mayretain the requisite securities/funds towardsoutstanding obligations and may also retain the fundsexpected to be required to meet derivatives marginobligations for next 5 trading days, calculated in themanner specified by the exchanges. In respect of cashmarket transactions, the stock broker may retain entirepay-in obligation of funds and securities due from27