This is a mandatory / compulsory document from member and requires your utmost care, attention and understanding.
[Refer SEBI Circular No. MIRSD/ SE/Cir-19/2009]
POLICIES AND PROCEDURES
01.Refusal of orders for Penny Stocks
Definition of penny stock : 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.
In order to control risk and avoid compliance violations the member at its own discretion may disable trading in certain penny stocks for all its clients or a particular client or a group of clients without assigning any reasons for the same. However where a general ban on certain scrips is put by the member, for the convenience of the clients, requests for orders in such scrips may be accepted by the member on receipt of formal request for the same. The member may allow or reject such request at its own discretion looking into the need of the client, trading pattern of the client, price & volume pattern in the scrip, market conditions etc. In case the member has allowed the client to trade in a particular scrip it shall not amount to absolving the client from following the various rules and regulations governing trading in those scrips and the client shall continue to be responsible for any legal or punitive action taken by the regulator or any other body for trading in such scrips. The grant of approval to the client for trading in such scrips shall be given subject to the client undertaking to continue to abide by the rules and regulations for trading in securities and shall at all times keep the member indemnified against any legal or punitive action taken by the regulator or any other authority
02.Clients Exposure Limits
For clients dealing in cash segment & F&O segment exposure limits will be set up as per the following policies :-
For clients dealing in F&O segment exposure limit will be equal to the credit balance in client’s margin account. The margins will be calculated as per the rules prescribed by the stock exchange. Different scrips attracts different margin and list of scrips along with their applicable margins is available on our website www.premiumglobal.in .In Future & Option Segment, we collect the necessary initial margin, span margins, exposure margins and other margins as considered necessary from all our constituents and also report them on a daily basis to the exchange. Client is also required to pay/receive M to M losses on daily basis on open position. We may accept approved securities, as per list given by the exchange for this purpose towards initial margin to the extent of 50% of initial margin. Securities deposited towards margin must be delivered to us from client depository account and no third party securities will be accepted by us. Shares will be valued after considering proper haircuts as prescribed by the exchange and valuation will be done on daily basis. The client must ensure that margins are adequate at all times and should immediately make good any shortfall whether or not member intimates such shortfall.
In case of cash market any order/ request for purchase of securities shall be subject to the Client's account containing sufficient buying power prior to the execution of the order/ request. However in exceptional circumstances in case of insufficient balances in clients account request of the orders for purchase of securities will be accepted if the client takes prior permission from the member specifying the time for the payment of shortfall amount. The member may give permission based on respective clients trading history/experience, financial capacity, credit worthiness and referrals. The client must ensure that payment of funds must be made to the member prior to the settlement date or within the time approved by the member. The client will not be allowed to take any further position till the receipt of funds by the member. In case of non- receipt of funds by the member within the stipulated time the member has sole discretion to square off the trade without any prior notice to the client. In case member does not exercise his discretion, the client shall continue to be responsible for all his order/ requests, which exceeds the available limits in his account.
For cash segment in case of intraday dealings initial exposure limit will be set at five times of credit balance in ledger account and any margin balance provided that no request for payout of credit balance from ledger account is pending from the client. Intra day trading limits will also be allowed against approved shares kept with us for margin purpose after considering proper haircuts as prescribed by the exchange. In case the client doesn’t square off the position on or before 3.15 p.m. on the same day or doesn’t make payment of the scrips purchased till that time, the member may at his sole discretion close out the existing position without giving any notice to the client. Not exercising of discretion by the member does not relieve the client of its liabilities & obligations.
03.Applicable Brokerage Rate
The brokerage rate will be charged as per the rate specified in the KYC form. Rate charged will not exceed the maximum rate permissible as per the rules regulations and bye laws of the relevant stock exchange/ SEBI. Brokerage charged in the contract note shall be binding and final on the client. It is the duty of the client to revert to the member within 24 hours of receipt of the contract note if he finds any discrepancy in the brokerage being charged. In case the brokerage rates chargeable to the client is linked to the volume of the client the brokerage may vary from time to time with increase or decrease in volume of the client.
04.Imposition of Penalty/ Delayed Payment Charges
It is hereby declared that the member does not provide funding to its clients. In order to discourage debit balances/delayed payments, penalty charges will be recovered from the client if the payment is outstanding and dues are not received in time. The penalty charges will be debited to the client account at the end of every month or at the time of termination of the agreement between member and client and will be adjusted from any amount due to the client from the member . The charges will be levied @21% on outstanding daily balances during the whole month. However in order to avoid inconvenience to our clients, in case of minor outstandings where the amount of penalty charges calculated in a month in accordance with above is less than or equal to Rs.200/- , such amount will be waived and will not be charged to the client
05. Right to sell clients securities/ close clients positions
In case of any delay (beyond permissible time limit as per SEBI’s or Exchange’s rules regulations byelaws circulars and other applicable laws/provisions) or inordinate delay in making the payment or clearance of or meeting up of any obligations, dues, debit balances, margin etc. by client then clients open positions might be squared off or securities lying with the member might be sold off without giving any notice to the client. The member shall have full lien on cash and securities balances lying with them in trading / depository account of client and may exercise the right to sell such securities in case of default by client. In exercise of member’s right to sell securities, the choice of specific securities to be sold shall be solely at the members discretion. However, this will be limited to the extent of the settlement and margin obligation Any and all losses and financial charges on account of such liquidation/ closing out shall be charged to and borne by the client.
06. Shortages in obligations arising out of internal netting of trades
Sometimes it may happen that clients buying/selling obligation result in internal obligation because of the exchange method of settling trades on net obligation at the broker level. In such case internal netting of trades will be done and there will be no pay in or payout to stock exchange for such scrip . If any selling client fails to deliver the required securities and due to this buyer does not get the security in pay out then we may buy such short shares at the earliest. Such shares will be delivered to the buying client and the selling client will be debited by the purchase price (together with brokerage and other costs there on). No prior intimation or permission will be seeked from the client for buying shares from the open market which he has failed to deliver.
07. Conditions under which client may not be allowed to take further position or closing the existing position of client
The member may at his sole discretion without giving any notice to the client close out the existing position of client or not allow the client to take further positions including but not limited to the following conditions :
1) On the failure of the client to pay the settlement dues the member may close out the transaction or sell the securities not paid for to the extent of such unpaid amount or shortage. Any losses or damages sustained on such closing out will be borne by the client. If the client fails to pay such losses or damages the member may at his discretion close the clients account either forthwith or at any time thereafter during the time such client is in default.
2) In the event of death or insolvency of the client or his otherwise becoming incapable of receiving and paying for or delivering or transferring securities which the client has ordered to be bought or sold, the member may close out the transaction of the client and the client or his legal representative shall be liable for any losses, costs etc or any surplus resulting therefrom.
3) The member may reject any order placed by the client on account of non – availability of securities in the clients demat a/c, insufficient margin amount, suspension of scrip specific trading activities by or on an exchange and the applicability of a circuit breaker to a scrip in which orders are placed .
4) In case of non-payment of margin or other amounts, outstanding debts etc the client will not be allowed to take any fresh position till the time all dues are settled or till the time as may deem fit by the member.
5) In case of market being very volatile or high risk being perceived by the member, the member reserves the right of refusing to execute any transaction placed by client.
6) Under such other circumstances as the member might think just and proper on case to case basis.
08. Temporarily Suspending/closing client’s account at the client’s request
The client should make a formal request if he wishes to temporarily suspend or close the account. The request for the closure of account will be accepted only if all the outstanding obligations are cleared by the client. If there is any credit balance in the ledger account and margin account the same will first be utilized towards any outstanding obligations and balance amount, if any would be refunded to the client. The closing of the clients account will not affect any rights and/or obligations of either the member or the client incurred prior to the date the account is closed. Upon satisfaction that there is no amount due from the client confirmation of the closure will be sent to the respective client. For reactivation of any transaction in such accounts in future, the client will have to inform us about financial details, bank details ,recent address proof, contact no, email id etc and any other changes in the information specified in the KYC form and then client will be allowed to do trade in their account.
09. Deregistering a client
Any client wishing to deregister should make a formal request to the member. The registration of the client would cease only after all the outstanding obligations ,debts, other charges etc are recovered from the client
10. Inactive Client’s accounts
Inactive client account would be the one who has not executed any trade for the period of 6 months. In case the member treats the account of client as dormant/inactive, the funds or securities lying with the member shall be refunded/returned to the clients immediately on demand by the client ,subject to clearance of entire outstanding/obligations by the client. The account will be reactivated and any trade will be executed in such inactive account only after receipt of written request from the client and fulfillment of requirement of KYC form viz, latest bank details, demat proof, fianancial details, recent address proof, phone no., email id etc. The trade will be executed with the same client code allotted to the client earlier.
Protection of Security Code(s)
The Client shall immediately notify the Member in writing, delivered by email and Registered AD, if the Client becomes aware of any loss, theft or unauthorized use of the Client's Security code (s) and account number or any failure by the Client to receive the confirmation of an execution including the contract note for the same; or any receipt by the Client of confirmation of an order and/or execution which the Client did not place; or any inaccurate information in the Client's account balances, securities position, or transaction history. In the case where the Client notifies such loss, theft or unauthorized use of the Client's Security code (s) password and account number to the Member, it shall suspend the use of the account of the Client, however the Client shall be responsible and liable for all transaction that are carried out by using the Client password. When any of the above circumstances occur, neither the Member nor any of its officers, directors, employees, agents or subsidiaries will have any responsibility or liability to the Client or to any other person whose claim may arise through the Client with respect to any circumstance described above.
You will be given unique user id and password. You are requested to change your password at the time of first login. You are also suggested to regularly change your password. In any case you should not give your password to anyone including our employees. You will be solely responsible for any theft of passwords and any misuse thereof.
Please do not reply/respond to any communication, including email, SMS or phone call informing you that your accounts will be closed unless you provide your personal information by responding to such communication or other email address/website/mobile number/phone number, or any communication requiring furnishing of any information personal or otherwise, and representing to be from Premium Global.
Avoid sending or furnishing personal and financial information on email. Also prior to providing any information (financial or personal) on a website, verify the bonafides of the website, its address and of the owners/operators of such websites. Make sure that the URL (Uniform Resource Locator) that appears in the "address" or "location" box on your browser window is the one you wish to access.
If you do not agree to any of the terms mentioned in this agreement, you should exit the site.