TRADING & DEMAT ACCOUNT OPENING FORM - NJ PMS

MANDATORY DOCUMENTPOLICIES AND PROCEDURESThis document is a mandatory document from member/broker (and not from SEBI/Exchange) and requiresyour utmost care, attention and understanding. This is an additional requirement from Member/Broker which ifcontravenes any rules, regulations, articles, bye-laws, circulars, directives and guidelines of SEBI andExchanges shall be null and void.1. Setting up of client’s exposure limit: The client'scombined limit for Capital and Derivatives market, isfixed as per the available Ledger balance and in linewith respective client's trade history/experience.Further, Client's Ledger Credit balance, Securities holdin Beneficiary Account, POA stock as well as marginaccount etc. shall also be considered. The limit can beincreased/decreased at broker's/members solediscretion.2. Refusal of orders for dealing in penny stocks:Generally, the broker warns clients to transact into anypenny stocks as trading in such scripts is very risky.The client is also required to adhere to exchange/members guidelines and take due diligence whiletrading in such scripts. As such, we the broker, dohereby warn the client not to deal in any penny stocks.However, we at our sole discretion may allow ordisallow the clients (on case to case basis) to deal inpenny stocks, subject to rules, regulation, articles, byelaws,circulars, directives and guidelines of SEBI andExchanges as well as considering the prevalent marketand other circumstances and RMS policy, at a relatedpoint of time.3. Applicable brokerage rate: I am/We are aware thatthe broker shall charge brokerage at the rate beingmutually agreed between us and the broker, or with anyof their authorised persons of branches or their subbrokers.I am/We are aware that the brokerage rates shall bebased on prevailing market circumstances and aresubject to change from time to time. The brokeragerate shall get documented under necessary annexureand stored into your system. However, it shall not bemore than the maximum permissible limit (presentlynot to exceed 2.5%) as may be prescribed bySEBI/Exchanges from time to time. (in case of anyupward revision of brokerage rate, member will give aprior notice of 15 days.)4. Imposition of penalty/delayed payment chargesby either party specifying the rate and period: Iam/We are aware and agree that pay-in of Securities orFunds are required to be delivered / made to you onT+2 days in case of shares and T+1 days in case ofunits, if mutual funds. In case of any default or if anyamount is overdue from me/us over such period as maybe allowed by you, either party may chargepenalty/delay payment charges @ 1.50% p.m. However,I am/ We are aware and specifically agree that this is justan additional/ ad-hoc facility and shall not be construed/resulted into permanent practice leading to funding bybroker in contravention of applicable laws.5. Right to sell off client's securities or close client'spositions, without giving notice to the client onaccount of non payment of clients dues: I/We alsoagree and confirm that in case of any delay (beyondpermissible time limit as per SEBI's or Exchange's rules,regulations, bye-laws, circulars and other applicablelaws/ provisions) or in-ordinate delay in making thepayment or clearance of or meeting up of my/ourobligations, dues, debit balances, margin, MTOM debitbalance etc. open positions might be squared-off,credit balances of securities or securities lying with youmight be sold off, credit balance of funds might beadjusted against my/our obligation, debit balances orliabilities WITHOUT ANY NOTICE from your side or asper your RMS policy from time to time.6. Shortages in obligation arising out of internalnetting of trades: Clients are required to makeSecurities/ Funds pay-in on T+2 day for shares andT+1 day in case of Mutual Fund units. In case of defaultin security pay-in by the client and the shortage is atmember level i.e. internal shortage, a penalty asapplicable from time to time, will be imposed on thedefaulting client and the benefit will be passed on to therespective beneficiary client. Rate of penalty will bedecided by member as applicable from time to time andpublished on our website.In case of default of securities, pay-in by the client andthe shortage is vis-a vis the Exchange, auction value ofthe respective exchanges and all levies, as applicable,shall be recovered from the defaulting client.Client hereby agrees that if he / she / it has shortdelivered any securities against his / her / its pay inobligation which resulted into internal shortage i.e.29