part - a form.pdf · 2 disclosure pursuant to nse circular no.nse/insp/2006/52 dated 5th july, 2006...

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PART - AMANDATORY DOCUMENTS

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Disclosure pursuant to NSE Circular No.NSE/INSP/2006/52 dated 5th July, 2006& BSE Circular No. 20060704-6 dated 4th July 2006Documents required as per SEBI Circular No.SEBI/MIRSD/DPS- I/CIR -3 l/2004 dated 26-8-2004Read wih SEBI Circular bearing Reference No. MIRSTD/SE/CIR-19/2009 dated 3-12-2009

MANDATORY DOCUMENTS - PART AS.No. Document Description ................................................................................................................................................. Page No.

(i) Know Your Client form for Broking & Demat (Individual)............................................................................................. 03-06

(ii) Know Your Client Form for Broking & Demat (Non Individual) ........................................................................................ 07-09

(iii) Prop Trading Disclosure....... ............................................................................................................................................ 10-10

(iv) Agreement between a Participant and a Person Seeking - To Open a Beneficial Owner’s Account (CDSL.)...................11-11

(v) Tariff applicable to Beneficiary Account opened with CDSL....................... .................................................................... ..12-12

(vi) Terms and Conditions-Cum-Registration / Modification Form for receiving SMS Alerts form CDSL...... ....................... 13-13

(vii) Nomination Form ............................................................................................................................................................. 14-14

(viii) Member and Constituent Agreement-NSE (Cash, F&O and Currency Derivatives Segments)...... ............................ 15-16

(ix) Member and Constituent Agreement (BSE) (Cash Segment) ........................................................................................ 17-18

(x) Tripartite Agreement between Stock Broker, Sub-broker and client-NSE ............................................................. 19-21

(xi) Tripartite Agreement between Stock Broker, Sub-broker and client-BSE ............................................................. 22-24

(xii) Combined Risk Disclosure Document (NSE/BSE) ................................................................................................... 25-26

(xiii) Investor’s Rights and Obligations ............................................................................................................................... 27-27

(xiv) Member Constituent Agreement (MCX-SX Currency Derivative Segment) ........................................................... 28-29

(xv) Risk Disclosure Document for MCX-SX Currency Derivatives Segment .............................................................. 30-31

(xvi) Investor’s Rights and Obligations Annexure-1 ........................................................................................................... 32-32

(xvii) Policies & Procedures .................................................................................................................................................... 33-34

NON-MANDATORY DOCUMENTS - PART BS.No. Document Description ................................................................................................................................................. Page No.

(xviii) Internet Trading Letter ................................................................................................................................................... 36-36

(xix) Supplementary Member Client Agreement (ITORS Trading) for Internet ...................................................................Trading Client-BSE ......................................................................................................................................................... 37-40

(xx) Supplementary Member Client Agreement (ITORS Trading) for Internet ...................................................................Trading Client-NSE ........................................................................................................................................................ 41-44

(xxi) Running Account Authorisation .................................................................................................................................... 45-45

xxii) Request Letter Electrionic Communication ...................................................................................................................... 46-46

(xxi) Running Account Authorisation .................................................................................................................................... 45-45

(xxii) Request Letter Electrionic Communication ...................................................................................................................... 46-46

(xxiii) Letter of Authority ........................................................................................................................................................... 47-47

(xxiv) Anti Money Laundering ..................................................................................................................................................... 48-48

(xxv) Additional Clauses to “Agreement Between Stock Broker And Client” Executed For NSE/BSE/MCX-SX .................... 48-48

(xxvi) Letter of Authority / Request ............................................................................................................................................. 49-49

(xxvii) Authorisation ..................................................................................................................................................................... 49-49

(xxviii) PAN Card Undertaking - Declaration for Name Difference in PAN Card ......................................................................... 50-50

(xxix) Authorisation Letter for Debiting P.P. Charges ................................................................................................................ 50-50

(xxx) Client Defaulter Declaration .............................................................................................................................................. 50-50

(xxxi) Power of Attorney ............................................................................................................................................................. 51-52

(xxxii) Do’s and Don’ts while dealing in securities market .......................................................................................................... 53-54

(xxxiii) Account Closure Request Form ....................................................................................................................................... 55-55

Signature of Client

I/We have fully understood the distinction and details regarding the Mandatory/Non-Mandatory and do hereby enter and sign thesame and agree notto call into question the validity, enforce ability and applicability of any voluntary agreement(s)/ document(s) orclauses within anyvoluntary/optional agreement(s)/document(s) under any circumstances what so ever.

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To,B.N.RATHI SECURITIES LIMITED6-3-652, “Kautilya”, 4th Floor, Amrutha Estate,Somajiguda, Hyderabad – 500 082

(Before filling and executing this document, please read the instructions given overleaf)

I request you to register myself as your client and enable me to trade in the Cash/F&O/Currency Derivatives Segment of National StockExchange of India Ltd./ Bombay Stock Exchange Ltd./MCX-SX Stock Exchange and CDSL pursuant to the Agreement entered into with you.I have read Rules, Bye-laws and Regulations of the Cash, F&O&Currency Derivatives Segment of N ational Stock Exchange Ltd./BombayStock Exchange Ltd./MCX Stock Exchange (“the Exchanges”) and CDSL agree to abide by them. In this regard, I give the following information:

1. CLIENT’S PERSONAL DETAILS

Name Mr./Mrs./Ms. : __________________________________________________________________________________

Date of Birth :___________________Sex : � Male � Female Marital Status : � Married � Unmarried

Nationality :� lndian � Other Residential Status: � Rl � NRI � Other

Father’s / Husband’s Name : ____________________________________________________________________________

Name of the Firm (in case of Proprietorship Firm) _____________________________________________________________

2. CORRESPONDENCE ADDRESS : _____________________________________________________________________

________________________________________________________________________________________________

City/VPO/Town : _____________________________________________ Distt. : _______________________________

Pin:_________________________State:________________________________Country : __________________________

Phone (with STD Code) : __________________________Mobile :______________________SMS Facility : � Yes � No

PAN NO. : _________________________________________________ IT CIRCLE/WARD_______________________

E-mail ID : _____________________________________________Fax: _______________________________________

3. PERMANENT ADDRESS : ____________________________________________________________________________

City/VPO/Town : _____________________________________________ Dist.: ________________________________

Pin: _____________________________State :________________________________Country : ______________________

4. EDUCATIONAL QUALIFICATION : � Graduate � Post Graduate � Professional � Others

Please affixyour recent

passport sizephotographduly signed

across

Clearing Member for Derivatives Segment: IL & FS Securities Services Limited , SEBI Registration No. INF261313337 MCX: INF 231133630IL&FS House, Raheja Vihar, Chandivali, Andheri (E), Mumbai – 400 072. Phone No. 2857 0982 / 2857 7731 Fax: 29857 0983 / 2857 6134

B.N. RATHI SECURITIES LIMITEDCorporate Member: NSE (CM, F&O and CD), BSE (CM), MCX-SX (CD)SEBI Reg Nos :NSE -INB 230714134, INF 230714134,INE 230714134SEBI Reg No: BSE -INB010714138SEBI Reg No: MCX-SX -INE 260714138SEBI Reg No: IN -DP -CDSL -414-2007Regd Office: 6-3-652, “Kautilya”, 4th Floor, Amrutha Estate, Somajiguda, Hyderabad – 500082Tel.: 040-30527777 / 30727777 Fax : 040-30526283E-mail Id: [email protected] Website : www.bnrsecurities.com

Sign across it2

(i) KNOW YOUR CLIENT FORM FOR BROKING & DEMAT (INDIVIDUAL)

(This information is the sole property of the Trading Member / Brokerage House and would not be disclosed to anyone unlessrequired by Law or except with the express permission of clients)

DP ID 1 2 0 5 1 4 0 0 Client ID

DateDP InternalReference No.

Type of Account (Please tick whichever is applicable)

Status Sub - Status

� Individual � Individual Resident � Individual-Director � Individual Director’s Relative� Individual HUF /AOP � Individual Promoter � Others (specify)� Individual Margin Trading A/C (Mantra)

� NRI � NRI Repatriable � NRI Non-Repatriable � NRI - Depository Receipts� NRI Repatriable Promoter � NRI Non-Repatriable � Others (specify)

� Foreign National � Foreign National � Foreign National-Depository Receipts � Others (specify)

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6. BANK ACCOUNT DETAILS “(Through which transactions would be routed. Details & proof of bank account(s) is required)

Bank Name* Branch Address & Pin Code Bank Account No.* A/c Type* 9 Digit MICR Code No.

7. FINANCIAL DETAILS � Below Rs.1 lakh � Rs.1-5 lakhs � Rs.5-10 lakhs � Rs.10-25 lakhs � Above Rs.25 lakhs

Annual lncome __________________________________ NetWorth____________________________________

Documentary Evidence self Certified_______________________________________________________________________

8. INVESTMENT/TRADING EXPERIENCE investment related fields � No Prior Experience � Years in Stocks

� Years in Derivatives � Years in otherMarket Value of your Current Portfolio As on ______________________________ Rs._______________________ Lacs

9. OTHER BROKER’S / SUB-BROKER’S DETAILS

Whether registered w ith any other broker/su b-broker in India � Yes � No

If Yes. Name of the broker______________________________________________________________________________________

Name of the exchange ______________________________________________Client C ode No. ________________________________

Name of Sub-Broker _____________________________________________________________________________________________

Broker’s/ Su b-Broker’s Address ____________________________________________________________________________________

Broker’s / Sub-Broker’s Phone No. __________________________________________________________________________________

Details if any, of any taken by SEBI/Stock Exchange / any other regulatory authority for violation of any securities law or other economicoffences against Individual; Incase of Non Individual against the constituent or its partners / promoter / whole time directors / authorisedpersons / in charge of dealing in securities

10. INTRODUCER DETAILS

Name _____________________________________________________________________________________________________

Father’s Name________________________________________________________________________________________________

Address____________________________________________________________________________________________________

Signature ________________________________________________________________________________________________

Relationship with Applicant _______________________________Relationship with TM _____________________________________

PAN of introducer, if any __________________________________________________________________________________________

Identity of Introducer ________________________________________________ Date of Issue _________________________________

Place of Issue _______________________________________________________________________________________________

11. CLIENT INTERVIEWED BY EMPLOYEE/AUTHORISED PERSON/SUB BROKER

Name _____________________________________________________Designation_______________________________________

Signature_________________________________________________________________________Date _________________________

Original Documents Verified By ____________________________________ Authorised By _____________________________________

12. DEPOSITORY ACCOUNT DETAILS (Through which transactions will generally be routed.)

I. Type of Depository:� CDSL � NSDL

Name of Depository:________________________________________________________________________________________

Beneficiary Name: _________________________________________________________________________________________

DPID: _____________________________________________Beneficiary l D: _________________________________________

5. OCCUPATIONAL DETAILS: � Employed � Self Employed � Business � Service

� Professional � House Wife � Others

Name of Employer/ Establishment: _________________________________________________________________________________

Office Address : ________________________________________________________________________________________________

City/VPO/Town : _____________________________________________________Dist. : ______________________________________

Pin: _________________________State:_________________________________Country:____________________________________

Phone (with STD Code) : _____________________________________________ Mobile: ___________________________________

Fax: _____________________________________ E-mail :___________________________________________________________

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Foreign Address: __________________________________________________________________________________

City: ______________________________________________ Pin: __________________________________________

State: _______________________________________________________ Country: _____________________________

Documents Furnished: � Copy of Passport/ Visa � Proof of Foreign Address

IT Circle/ Ward District________________________________________________________________________________________

15. TRADING PREFERENCE

Stock Exchange on which you wish in trade: (Please tic k in the relevant boxes)

� NSE � BSE � MCX-SX � ALL

Market Segment on which you w ish in trade: ( Please tick in the relevant b oxes)

� Cash M arket � Derivative Market � Currency Derivatives � ALL

I/We here by declared that the details furnished above are true and correct to the best of my knowledge & belief & l /Weundertake to inform you of any changes there in immediately. In case any of the above information is found to be false oruntrue or misleading or misrepresenting, I/We am aware that I/We may be held liable for it.

(Signature)

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13. DECLARATION

I authorize you to transfer the shares purchased by me to the above demat beneficiary account. I am agreeable to enterinto an agreement and to do abide by your terms & conditions.

14. NRI DETAILS : � NRO � NRE � Other NRI REPATRIABLE/ NRI NON-REPATRIABLE

RBI Approval Reference N o. : ________________________RBI Approval Date: ________________________________

The Personal Information required to register for DP has already been provided in the application. The additional informationrequired is as under):

First Name : _______________________________________________________________________________________

Middle Name :______________________________________________________________________________________

Last Name : _______________________________________________________________________________________

Father / Husband Name : ______________________________________________Date of Birth__________________

Permanent Address : _____________________________________________________________________________

_______________________________________________________Pin Code:_____________

Telephone: _________________Fax:______________Mobile:____________________SMS Facility :� Yes � No

Occupation :______________________________________________Gender : � Male � Female

PAN No.:

Second Applicant Details:

E-mail :____________________________________________

Third Applicant Details:

3rdFirst Name : _______________________________________________________________________________________

Middle Name :______________________________________________________________________________________

Last Name : _______________________________________________________________________________________



_______________________________________________________Pin Code:_____________



PAN No.: E-mail :____________________________________________

2nd

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Details of Guardian ( If First Holder or Third Holder is minor

First Name : _______________________________________________________________________________________

Middle Name :______________________________________________________________________________________

Last Name : _______________________________________________________________________________________



_______________________________________________________Pin Code:_____________



PAN No.: E-mail :____________________________________________

For NRIs

Foreign Address: _________________________________________________________________________________

______________________________________________________Pin Code____________________

I /We authorise you to receive credits automatically in to my / our account in accordance withRegulation 42(b) of SEBI (D&P) Regulations (Default is Yes-Resident Indian & Non for NRIs

Account StatementRequirement � Daily � Weekly � Fortnightly � Monthly

� Daily � Weekl

(Automatic Credit)

Do you wish to receive dividend / interest Directly in to your bank accountgiven in Bank Account Details through ECS?

� Yes � No

I/ we have read the terms and conditions DP-BO agreement and agree to abide by and be bound by the same and by the bye lawsas are in force from time. I/We declare that the particulars give by me / us above are true and to the best of my/our knowledge ason the date of making this application. I/We agree and undertake to intimate the DP any change(s) in the details / misleadinginformation given by me/us or suppression of any material information will render my account liable of termination and suitableaction.



acrossSign across it



acrossSign across it

First/Sole Holder Second Holder Third HolderName

Signature

DP ID Client ID1 2 0 5 1 4 0 0

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(Signature Card)

1st 2nd 3rd

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(ii) KNOW YOUR CLIENT FORM FOR BROKING & DEMAT (NON INDIVIDUAL)

(This information is the sole property of the Trading Member / Brokerage House and would not be disclosed to anyone unlessrequired by Law or except with the express permission of clients)

1. CLIENT INFORMATION:

Name of the Company/Firm : _______________________________________________________________________

Unique Identification Number : _______________________________________________________________________

Registered Office Address : _______________________________________________________________________

________________________________________________________________________________________________

City: ___________________________________Pin Code: ___________________ State : ______________________

Contact No(s).Office.:______________________________________________Fax No.: __________________________

Correspondence Address :________________________________________________________________________

________________________________________________________________________________________________

City: _______________________________Pin Code: ___________________State : ___________________________

Contact No(s).Office.:_____________________ Fax No.: ________________E-mail :____________________________

Nature of Business : ______________________________________________________________________________

PAN :

B.N. RATHI SECURITIES LIMITEDCorporate Member: NSE (CM ,F&O and CD), BSE (CM), MCX-SX (CD)SEBI Reg Nos :NSE -INB 230714134, INF 230714134,INE 230714134SEBI Reg No: BSE -INB010714138SEBI Reg No: MCX-SX -INE 260714138SEBI Reg No: IN -DP -CDSL -414-2007Regd Office: 6-3-652, “Kautilya”, 4th Floor, Amrutha Estate, Somajiguda, Hyderabad – 500082Tel.: 040-30527777 / 30727777 Fax : 040-30526283E-mail Id: [email protected] Website : www.bnrsecurities.com

Clearing Member for Derivatives Segment: IL & FS Securities Services Limited , SEBI Registration No. INF261313337 MCX: INF 231133630IL&FS House, Raheja Vihar, Chandivali, Andheri (E), Mumbai – 400 072. Phone No. 2857 0982 / 2857 7731 Fax: 29857 0983 / 2857 6134

2. Type of Account (Please tick whichever is applicable)

DP ID 1 2 0 5 1 4 0 0 Client ID

DateDP InternalReference No.

Status Sub - Status

To be filled by the DP� Body Corporate � Banks � Trust � Mutual Fund � OCB � FII

� CM � FI � Trust � Clearing House � Other (Specify)

Date of incorporation

SEBI Registration No.(ifApplicable) SEBI Registration Date

ROC Registration No.(If applicaable) ROC Registration Date

RBIRegistration No. (If applicaable) RBI Approval date

Nationality � Indian � Other (specify)

I/We authorize you to receive credits in my / our account (Automatic Credit)

without any instruction from me /us. � Yes � No

Account Statement Requirement � Daily � Weekly � Fortnightly � Monthly

Do you wish to receive dividend / interest in to your bank account � Yes � Nogivin below through ECS?

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3. DEPOSITORY ACCOUNT DETAILS (through which transactions will generally be routed):

DP Name :

DP Address:

DP ID

Client Id / Demat A/c No. :

(Please submit copy of Demat A/c Transaction Statement or any other document containing the DP Id, Client Id & Beneficial Ownername in support of details given above)

4. INVESTMENT/TRADING EXPERIENCE : (tick whichever is applicable)

______No Prior Experience______ Years in stocks _______ Years in Derivatives ______ Years in other Investment Fields

5. TRADING PREFERENCE : Stock Exchange on which you wish in trade: (Please tick in the relevant boxes)

� NSE � BSE � MCX-SX � ALLMarket Segment on which you w ish in trade: ( Please tick in the relevant b oxes)

� Cash M arket � Derivative Market � Currency Derivatives � ALL

6. WHETHER REGISTERED WITH ANY OTHER BROKER – MEMBER(If registered with multiple members, kindly provide details of all)

Name of the Broker :___________________Name of the Exchange:____________________ Client Code No.:__________________

Name of the Broker :___________________ Name of the Exchange:_____________________Client Code No.:_________________

7. REFERENCES: Introduction (introduced by another constituent / director or employee of trading member)

Name of the Introducer: _______________________________________________________________________________________

Client Code of the Introducer : __________________________________Signature of the Introducer: __________________________

Name, designation of the employee who interviewed the client :

Name:________________________________ Designation: ________________________Signature : _________________________

8. DECLARATION:I/We hereby declare that the details furnished above are true and correct to the best of my/our knowledge and belief & I/we undertake tonform you of any changes therein immediately. In case any of the above information is found to be false or untrue or misleading ormisrepre senting I/we am/are aware that I/we may be held liable for it.

Place: ______________________________ Name: ___________________________________

Date: _____________________________ Authorized Signatory: ______________________________(With Company Seal)

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Bank Name* Branch Address & Pin Code Bank Account No.* A/c Type* 9 Digit MICR Code No.

2. BANK ACCOUNT DETAILS (through which transactions will generally be routed):

Names and residential Address of the Promoters / Partners / Karta / Whole Time Directors:

1. ______________________________________________________________________________________________

2. ______________________________________________________________________________________________

Names and residential Address of the person authorized to deal securities on behalf of the Company / Firm

1. ______________________________________________________________________________________________

2. ______________________________________________________________________________________________

Details of any action taken by SEBI/Stock Exchange/any other authority against the constituent or its partners / whole timeDirectors/ authorized persons in charge of dealing in securities for violation of securities laws/ other economic offences.

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Affix your recentpassport size

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6Sign across it

First / Sole AuthorisedSignatory Second Authorised Signatory Third Authorised Signatory

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DP ID Client ID

Documents Required :1. Copy of latest Annual Report / Balance Sheet (For last two Financial Years)2. Copy of Latest Shareholding pattern and list of all those holding more than 5% in the share capital of the company.3. Copy of Memorandum of Association & Articles of Association. (Applicable to Corporate Entity)4. Copy of Board Resolution approving participation in equity/derivatives/debt trading and naming authorized persons for dealing in securities on

behalf of the company5. Photographs of Whole time directors, individual promoters holding 5% or more, either directly or indirectly in the share holding of the Company

and of persons authorized to deal in securities.

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To,_______________________________________________

_______________________________________________

Sir,

This is to inform you that we do client based trading and Pro-account trading in National Stock Exchange of lndia Ltd. (NSE)/Bombay Stock Exchange Ltd. (BSE) /MCX Stock Exchange Ltd. (MCX-SX)

Thanks and best regards.

For B.N. Rathi Securities Limited

Hari Narayan RathiManaging Director

l acknowledge the receipt of information given above by B.N. Rathi Securities Limited that they do Client base trading andPro-account trading.

Client Code : __________________________

Client Name : __________________________

Signature of Client : __________________________

B.N. RATHI SECURITIES LIMITEDCorporate Member: NSE (CM ,F&O and CD), BSE (CM), MCX-SX (CD)SEBI Reg Nos :NSE -INB 230714134, INF 230714134,INE 230714134SEBI Reg No: BSE -INB010714138SEBI Reg No: MCX-SX -INE 260714138SEBI Reg No: IN -DP -CDSL -414-2007Regd Office: 6-3-652, “Kautilya”, 4th Floor, Amrutha Estate, Somajiguda, Hyderabad – 500082Tel.: 040-30527777 / 30727777 Fax : 040-30526283E-mail Id: [email protected] Website : www.bnrsecurities.com

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(iii) PROP TRADING DISCLOSURE

Note: lncase of Physical Contact note are being dispatched to client, a difference of Rs.25/- per in total brokerage booked on aparticular date would be charged toward minimum processing fee.

Cash Market

DeliveryIntradayFutures Options Currency

BROKERAGE STRUCTURE

BROKERAGE Code :_________________________________________

CLASSIFICATION OF CLIENT _RISK FACT

� Low � Medium � High � Special Category

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Statement of Account

3.1 The Participant shall furnish to the Beneficial Owner a statement of his/its account at theend of every month if there has been even a single entry or transaction during thatmonth, and in any event once at the end of each quarter. The statement of accounts tobe provided to the beneficial Owner under this agreement shall be in the form specifiedin Operating instructions or as communicated by CDSL from time to time. The partici-pant shall furnish such statements at such shorter periods as may be required by theBeneficial Owner on payment of such charges by the Beneficial Owner as may be speci-fied by the Participant.

3.2 It is agreed that if a participant is providing the services of issuing the statement ofaccounts in an electronic mode and if the Beneficial Owner is desirous of availing suchservices from the Participant, then the Participant will furnish to the Beneficial Owner thestatement of accounts under the digital signature, as governed under the InformationTechnology Act, 2000. Provided however that in the event of the Beneficial Owner re-quiring a physical copy of the statement of accounts, despite receiving the same in theelectronic mode, then irrespective of having forwarded the same via electronic mode,the Participant shall be obliged to provide a physical copy thereof to the BO.

3.3 It is agreed and understood between the parties that if the Participant does not have thefacility of providing the statement of account in the electronic mode, then the Participantshall be obliged to forward the statement of account only in physical form.

Beneficial Owner shall intimate change of particulars

4. The Participant shall not be liable or responsible for any loss that may be caused to theBeneficial Owner by reason of his/its failure to intimate change in the particulars fur-nished to the Participant from time to time, unless notified by the Beneficial Owner.

Participant is not liable for claims against Beneficial Owner

5. CDSL shall not be liable to the Beneficial Owner in any manner towards losses, liabilitiesand/or expenses arising from the claims of third parties or for any fees, charges, taxes,duties, levies or penalties levied, imposed or demanded by any Central, State, statutoryor revenue authority in respect of securities credited to the Beneficial Owner’s account.

(IV) AGREEMENT BETWEEN A PARTICIPANT AND A PERSON SEEKING

TO OPEN A BENEFICIAL OWNER’S ACCOUNT

This Agreement made and entered into at Hyderabad this ________ day of _________ 200______ between B.N. RATHI Securities Limited having its

Regd. office at 6-3-652, IV Floor, “Kautilya” Amrutha Estates Somajiguda, Hyderabad - 500 082. hereinafter called “the Participant” of the One Part;

AND________________________________________________________________________________having his / its office / registered office / address

at _______________________________________________________________________________________________________________________

herin after called “the Beneficial Owner” of the Other Part.

WHEREAS the Beneficial Owner is desirous of opening a beneficial owner’s account with the Participant and the Particiapnt has agreed to open an account inthe name of the Beneficial Owner and render service to the Beneficial Owner as a participant, on the terms and conditions recorded here in below :NOW THIS AGREEMENT WITNESSETH AND IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS :

Authorised Representative

6. Where the Beneficial Owner is a body corporate or a legal entity, it shall, simultaneouslywith the execution of the Agreement furnish to the Participant, a list of officials autho-rized by it, who shall represent and interact on its behalf with the Participant. Any changein such list including additions, deletions or alterations thereto shall be forth with com-municated to the Participant.

Closure of Account

7. The Beneficial Owner, may, at any time terminate this Agreement by calling upon theParticipant to close his/its account with the Participant in the manner and on the termsand conditions set out in the By Laws and the procedure laid down in the OperatingInstructions. In the event of termination of this Agreement the Beneficial Owner shalleither get the securities transferred to some other account or get the same rematerialised.

Stamp Duty

8. Any stamp duty (including interest or penalty levied thereon) payable on the Agreementand/or on any deed, document or writing executed in pursuance hereof between theparties hereto shall be borne and paid by the Beneficial Owner.

Force Majeure

9. Not with standing anything contained herein or in the Bye Laws, neither party heretoshall be liable to indenify or compensate the other for any breach, non-performance ordelay in performance of any obligations under the Agreement or for any harm, loss,damage or injury caused to the other due to causes reasonably beyond its control in-cluding but not limited to tide, storm, cyclone, flood, lightning, earthquake, fire, blast,explosion or ay other act of God, war, rebellion, revolution, insurrection, embargo orsanction, blockade, riot, civil commotion, labour action or unrest including strike, lock-out or boycott, interruption or failure of any utility service, enemy action, criminal con-spiracy, act of terrrorism or vandalism, sabotage, or intrusion, or any other irresitibleforce or compulsion.

Service of Notice

10. Any notice or communication required to be given under the Agreement shall not bebinding unless the same is in writing and shall have been served by delivering the sameat the address set out here in above against a written acknowledgement of receipt thereofor by sending the same by pre-paid registered post at the aforesaid address or transmit-ting the same by facsimile transmission electronic mail or electronic data transfer atnumber or address that shall have been previously specified by the party to be notified.Notice given by personal delivery shall be deemed to be given at the time of delivery.Notice given by post in accordance with this clause shall be deemed to be given at thecommencement of business of the recipient of the notice on the third working day nextfollowing its posing. Notice sent by facsimile transmission, electronic mail or electronicdata transfer shall be deemed to be given at the time of its actual transmission.

Arbitration

11. The parties hereto shall, in respect of all disputes and differences that may arise be-tween them, abide by the provisions relating to arbitration and conciliation specifiedunder the Bye Laws.

Jurisdiction

12. The parties hereto agree to submit to the exclusive jurisdiction of the courts in Hyderabad.

Governing Law

13. The Agreement shall be governed by and constructed with the laws in force in India.

IN WITNESS WHEREOF the parties hereto have hereunto set and subscribed their respective hands/seals to this Agreement in duplicate on theday, month, year and place first hereinabove mentioned.

SIGNED AND DELIVEREDby the within named heBeneficial owner

BBBBB

WitnessWitnessWitnessWitnessWitness

11111ststststst

First Holder

22222ndndndndnd

Second Holder

33333rdrdrdrdrd

Third HolderIn the presence of

SIGNED AND DELIVEREDby the within named the Participant

by the hands of its authorised representative

B.N. RATHI SECURITIES LIMITEDAddress : 6-3-652, IV Floor, “Kautilya” Amrutha Estates,Somajiguda, Hyderabad - 500 082.

In the presence of

Name :______________________________________Name :______________________________________WitnessWitnessWitnessWitnessWitness

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1111 1stststst st //// / 2222 2

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General Clause

1. The parties hereto agree to abide by the provisions of the Depositories Act, 1996,SEBI (Depositories and Participants) Regulations, 1996, Bye Laws and OperatingInstructions issued by CDSL from time to time in the same manner and to thesame extent as if the same were set out here in and formed part of this Agree-ment.

Fees, Charges and deposits

2. The Participant shall be entitled to change or revise the fees, charges or depositsfrom time to time provided however that no increase there in shall be effected bythe Participant unless the Participant shall have given at least one month’s noticein writing to the Beneficial Owner in that behalf. In case the Beneficial Ownercommitting a default in the payment of any such amount payable to the Partici-pant on their respective due dates or within fifteen days of the same being de-manded (where no such due date is specified), the Participant shall be entitled tocharge interest on the amount remaining outstanding or unpaid (not exceeding18%) per annum or part thereof. On such continued default, the Participant aftergiving two days notice to the Beneficial Owner shall have a right to stop process-ing of instructions of Beneficial Owners till such time he makes the payment alongwith interest if any.

8

CDSL

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13

Definitions:

In these Terms and Conditions the terms shall have following meaning unless indicated otherwise:1. “Depository” means Central Depository Services (India) Limited a company incorporated in India under the Companies Act 1956 and having its registered office at 17th Floor,

P.J. Towers,DalalStreet, Fort, Mumbai 400001 and all its branch offices and includes its successors and assigns.2. ‘DP’ means Depository Participant of CDSL. The term covers all types of DPs who are allowed to open demat accounts for investors.3. ‘BO’ means an entity that has opened a demat account with the depository. The term covers all types of demat accounts, which can be opened with a depository as

specified by the depository from time to time.4. SMS means “Short Messaging Service”5. “Alerts” means a customized SMS sent to the BO over the said mobile phone number.6. “Service Provider” means a cellular service provider(s) with whom the depository has entered / will be entering into an arrangement for providing the SMS alerts to the BO.7. “Service” means the service of providing SMS alerts to the BO on best effort basis as per these terms and conditions.

Availability:

1. The service will be provided to the BO at his / her request and at the discretion of the depository. The service will be available to those account holders who have provided their mobilenumbers to the depository through their DP. The services may be discontinued for a specific period / indefinite period, with or without issuing any prior notice for the purpose ofsecurity reasons or system maintenance or for such other reasons as may be warranted. The depository may also discontinue the service at any time without giving prior notice forany reason whatsoever.

2. The service is currently available to the BOs who are residing in India.3. The alerts will be provided to the BOs only if they remain within the range of the service provider’s service area or within the range forming part of the roaming network of the service

provider.In case of joint accounts and non-individual accounts the service will be available, only to one mobile number i.e. to the mobile number as submitted at the time ofregistration / modification.

5. The BO is responsible for promptly intimating to the depository in the prescribed manner any change in mobile number, or loss of handset, on which the BO wants to receive the alertsfrom the depository. In case of change in mobile number not intimated to the depository, the SMS alerts will continue to be sent to the last registered mobile phone number. The BOagrees to indemnify the depository for any loss or damage suffered by it on account of SMS alerts sent on such mobile number.

Receiving Alerts:

1. The depository shall send the alerts to the mobile phone number provided by the BO while registering for the service or to any such number replaced and informed by the BOfrom time to time. Upon such registration / change, the depository shall make every effort to update the change in mobile number within a reasonable period of time. The depositoryshall not be responsible for any event of delay or loss of message in this regard.

2. The BO acknowledges that the alerts will be received only if the mobile phone is in ‘ON’ and in a mode to receive the SMS. If the mobile phone is in ‘Off’’ mode i.e. unableto receive the alerts then the BO may not get / get after delay any alerts sent during such period.

3. The BO also acknowledges that the readability, accuracy and timeliness of providing the service depend on many factors including the infrastructure, connectivity of the serviceprovider. The depository shall not be responsible for any non-delivery, delayed delivery or distortion of the alert in any way whatsoever.

4. The BO further acknowledges that the service provided to him is an additional facility provided for his convenience and is susceptible to error, omission and/ or inaccuracy. In casethe BO observes any error in the information provided in the alert, the BO shall inform the depository and/ or the DP immediately in writing and the depository will make best possibleefforts to rectify the error as early as possible. The BO shall not hold the depository liable for any loss, damages, etc. that may be incurred/ suffered by the BO on account of optingto avail SMS alerts facility.

5. The BO authorizes the depository to send any message such as promotional, greeting or any other message that the depository may consider appropriate, to the BO. The BO agreesto an ongoing confirmation for use of name, email address and mobile number for marketing offers between CDSL and any other entity.

6. The BO agrees to inform the depository and DP in writing of any unauthorized debit to his BO account/ unauthorized transfer of securities from his BO account,

immediately, which may come to his knowledge on receiving SMS alerts. The BO may send an email to CDSL at [email protected]. The BO is advised not

to inform the service provider about any such unauthorized debit to/ transfer of securities from his BO account by sending a SMS back to the service provider as

there is no reverse communication between the service provider and the depository.

7. The information sent as an alert on the mobile phone number shall be deemed to have been received by the BO and the depository shall not be under any obligation to confirm theauthenticity of the person(s) receiving the alert.

8. The depository will make best effor ts to provide the service. The BO cannot hold the depository liable for non-availability of the service in any manner whatsoever.9. If the BO finds that the information such as mobile number etc., has been changed with out proper authorization, the BO should immediately inform the DP in writing.

Fees:

Depository reserves the right to charge such fees from time to time as it deems fit for providing this service to the BO.

Disclaimer:

The depository shall make reasonable efforts to ensure that the BO’s personal information is kept confidential. The depository does not warranty the confidentiality or security of the SMS alertstransmitted through a service provider. Further, the depository makes no warranty or representation of any kind in relation to the system and the network or their function or their performance orfor any loss or damage whenever and howsoever suffered or incurred by the BO or by any person resulting from or in connection with availing of SMS alerts facility. The Depository gives nowarranty with respect to the quality of the service provided by the service provider. The Depository will not be liable for any unauthorized use or access to the information and/ orSMS alert sent on the mobile phone number of the BO or for fraudulent, duplicate or erroneous use/ misuse of such nformation by any third person.

Liability and Indemnity:

The Depository shall not be liable for any breach of confidentiality by the service provider or by any third person due to unauthorized access to the information meant for the BO.In consideration of the depository providing the service, the BO agrees to indemnify and keep safe, harmless and indemnified the depository and its officials from any damages, claims, demands,proceedings, loss, cost, charges and expenses whatsoever which a depository may at any time incur, sustain, suffer or be put to as a consequence of or arising out of interference with or misuse,improper or fraudulent use of the service by the BO.

Amendments:

The depository may amend the terms and conditions at any time with or without giving any prior notice to the BOs. Any such amendments shall be binding on the BOs who are already regis-tered as user of this service.

Governing Law and Jurisdiction:

Providing the Service as outlined above shall be governed by the laws of India and will be subject to the exclusive jurisdiction of the courts in Mumbai.

I/We wish to avail the SMS Alerts facility provided by the depository on my/our mobile number provided in the registration form subject to the terms and conditions mentioned below. I/ We

consent to CDSL providing to the service provider such information pertaining to account/transactions in my/our account as is necessary for the purposes of generating SMS Alerts by

service provider, to be sent to the said mobile number.

I/We have read and understood the terms and conditions mentioned above and agree to abide by them and any amendments thereto made by the depository from time to time. I/ we furtherundertake to pay fee/ charges as may be levied by the depository from time to time.

I / We further understand that the SMS alerts would be sent for a maximum four ISINs at a time. If more than four debits take place, the BOs would be required to take up the matter with their DP.

I/We am/ are aware that mere acceptance of the registration form does not imply in any way that the request has been accepted by the depository for providing the service.

Third Holder Signature

33333rdrdrdrdrd

First Holder Signature

1st

Second Holder Signature

22222ndndndndnd

11

Refer to Terms & Conditions Given as Annexure-A

Easi � Yes. if yes, Please, contact your DP for details(Facility through CDSL’s Website: www.cdslindia.com wherein a BO can view his ISINbalances, transactions and value of the portfolio online.)

+ 9 1

Account to be oprated through Power of Attorney (POA) : � Yes � No

(vi) Terms And Conditions-cum-Registration / Modification Form for receiving SMS Alerts from CDSLCDSL

SMS Alert Facillity � Yes MOBILE No.

14

Country ___________________________ Pin Code _________________Telephone No. __________________

Fax No. ___________________________ E-mail ID __________________________________________ Date of Birth ________________________

As the nominee is a minor as on date, I / We appoint following person to act as guardian :

First Name Middle Name *Last Name

__________________________________________________________________________________________________________________

Address _____________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

City ___________________________________ State _______________________________________ Country_________________________________

Pin Code ______________________________________ Age _____________________ Guardian Sign.

To receive the securities in this account on behalf of the nominee in the event of the death of the sole holder/all joint holders.

This nomination is in accordance with the Section 109 A of the companies act, 1956, and shall supersede any prior nominee made by me / us and alsoany testamentary documents executed by me / us.

Place : Date :

Name Specimen Signature

First Holder ________________________________________________________________________

Second Holder _____________________________________________________________________

Third Holder _______________________________________________________________________

Note : Two witnesses shall attest signature(s) / Thumb impression (s)

SIGNATURE OF TWO WITNESS

1. Name : ____________________________________________________________________

Address : ____________________________________________________________________

_____________________________________________________ Signature with date

2. Name : ____________________________________________________________________

Address : ____________________________________________________________________

_____________________________________________________ Signature with date

Name of the Sole/First Holder

Name of the Second Holder

Name of the Third Holder

Affix

Photograph of

Nominee & Sign

across the

photograph

Witness

11111ststststst

22222ndndndndnd

33333rdrdrdrdrd

Witness

12

To.,

B.N. RATHI SECURITIES LIMITED

6-3-652, IV Floor “Kautilya” Amrutha Estates, Somajiguda, Hyderabad - 500082

DP ID 12051400 Client ID __________________________

(vii) NOMINATION FORM

Dear Sir / Madam

I/We the sole holder / joint holders / guardian (in case of minor) hereby declare that:

I/We do not wish to nominate any one for this demat account [Signatures of all account holders should be obtained on this form]

I/We Nominate the following person who is entitled to receive security balances lying in my/our account, particulars whereof are given below,in the event of the deth of the Sole holder the death of all the join holders.

Nominee details

First Name Middle Name *Last Name

__________________________________________________________________________________________

Father / Husband Name________________________________________________________________________

Address ___________________________________________________________________________________

__________________________________________________________________________________________

City ____________________ *State _____________________ Nominee Sign.★_________________________

Sign across it

CDSL

(To be filled by DP)nomination form accepted and registered wide Registration No. __________________________________________ date ________________________

15

This Agreement is made and executed at Hyderabad this ________day of ________________,between M/s B.N. RATHI SECURITIESLIMITEDa body corporate, incorporated under the provisions of theCompanies Act, 1956, being a member of the National Stock Exchange(hereinafter called “the Exchange”), and having its Registered officeat 6-3-652, “Kautilya”, 4th Floor, Amritha Estates, Somajuguda,Hyderabad - 500082 (herein after called “the Stock Broker”) whichexpression shall, unless repugnant to the context or meaning thereof,be deemed to mean and include itself in the capacity of a tradingmember while trading in the derivatives segment, it/his/her heirs,executors, administrators and legal representatives/the partners forthe time being of the said firm, the survivor or survivors of them andtheir respective heirs, executors, administrators and legalrepresentatives/its successors, as the case may be, of the One PartANDMr./Ms./M/s. _____________________________________________an individual/a sole proprietary concern/a partnership firm/ a bodycorporate, registered/ incorporated, under the provisions of the IndianPartnership Act, 1932 / the Companies Act, 1956, having its/his/herresidence / registered office at ___________________________________________________________________________________________________________________________________________(hereinafter called “the Client”) which expression shall, unlessrepugnant to the context or meaning thereof, deemed to mean andinclude his/her heirs, executors, administrators and legalrepresentatives/the partners for the time being of the said firm, thesurvivor or survivors of them and their respective heirs, executors,administrators and legal representatives/its successors, as the casemay be, of the Other Part;Whereas the stock broker is registered as the stock broker of theExchange with SEBI registration number INB 230714134 in the CapitalMarket/Cash Segment and SEBI registration number INF 230714134in the Futures and Options Segment and SEBI registration numberINE 230714134 in the Currency Derivatives Segment.Whereas the client is desirous of investing/trading in those securities/contracts/other instruments admitted to dealings on the Exchange asdefined in the Rules, Byelaws and Regulations of the Exchange andcirculars issued thereunder from time to time.Whereas the client has satisfied itself of the capacity of the stock brokerto deal in securities and/or deal in derivatives contracts and wishes toexecute its orders through the stock broker and the client shall fromtime to time continue to satisfy itself of such capability of the stockbroker before executing orders through the stock broker.Whereas the stock broker has satisfied and shall continuously satisfyitself about the genuineness and financial soundness of the client andinvestment objectives relevant to the services to be provided; andWhereas the stock broker has taken steps and shall take steps tomake the client aware of the precise nature of the Stock broker’s liabilityfor business to be conducted, including any limitations, the liabilityand the capacity in which the stock broker acts.WHEREAS the stock broker and the client agree to be bound by allthe Rules, Byelaws and Regulations of the Exchange and circularsissued there under and Rules and Regulations of SEBI and relevantnotifications of Government authorities as may be in force from timeto time.Now, therefore, in consideration of the mutual understanding as setforth in this agreement, the parties thereto have agreed to the followingterms and conditions:1. The client agrees to immediately notify the stock broker in writing

if there is any change in the information in the ‘client registrationform’ provided by the client to the stock broker at the time ofopening of the account or at anytime thereafter.

(viii) MEMBER AND CONSTITUENT AGREEMENT (NSE)(CASH, F&O AND CURRENCY DERIVATIVES SEGMENT)

2. The stock broker declares that it has brought the contents of therisk disclosure document to the notice of client and made himaware of the significance of the said document. The client agreesthat:

a. He has read and understood the risks involved in trading on astock exchange.

b. He shall be wholly responsible for all his investment decisionsand trades.

c. The failure of the client to understand the risk involved shall notrender a contract as void or voidable and the client shall be andshall continue to be responsible for all the risks and consequencesfor entering into trades in the segments in which the client choseto trade.

d. He is liable to pay applicable initial margins, withholding margins,special margins or such other margins as are considerednecessary by the stock broker or the Exchange or as may bedirected by SEBI from time to time as applicable to the segment(s)in which the client trades. The stock broker is permitted in itssole and absolute discretion to collect additional margins (eventhough not required by the Exchange, Clearing House/ClearingCorporation or SEBI) and client shall be obliged to pay suchmargins within the stipulated time

e. Payment of margins by the client does not necessarily implycomplete satisfaction of all dues. In spite of consistently havingpaid margins, the client may, on the closing of its trade, be obligedto pay (or entitled to receive) such further sums as the contractmay dictate/require.

3. The Client agrees to pay to the stock broker brokerage andstatutory levies as are prevailing from time to time and as theyapply to the Client’s account, transactions and to the servicesthat stock broker renders to the Client. The stock broker agreesthat it shall not charge brokerage more than the maximumbrokerage permissible as per the rules, regulations and bye-lawsof the relevant stock exchange/SEBI.

4. The client agrees to abide by the exposure limits, if any, set bythe stock broker or by the Exchange or Clearing Corporation orSEBI from time to time.

5. Without prejudice to the stock broker’s other rights (including theright to refer a matter to arbitration), the stock broker shall beentitled to liquidate/close out all or any of the client’s positionsfor non-payment of margins or other amounts, outstanding debts,etc. and adjust the proceeds of such liquidation / close out, ifany, against the client’s liabilities/ obligations. Any and all lossesand financial charges on account of such liquidation/closing-outshall be charged to and borne by the client.

6. The stock broker agrees that the money/securities deposited bythe client shall be kept in a separate account, distinct from his/itsown account or account of any other client and shall not be usedby the stock broker for himself/itself or for any other client or forany purpose other than the purposes mentioned in SEBI Rulesand Regulations /circulars/ guidelines/Exchanges Rules/Regulations/Bye-laws and circulars.

7. The client agrees to immediately furnish information to the stockbroker in writing, if any winding up petition or insolvency petitionhas been filed or any winding up or insolvency order or decreeor award is passed against him or if any litigation which mayhave material bearing on his capacity has been filed against him.

8. The stock broker agrees to inform the client and keep himapprised about trading/settlement cycles, delivery/paymentschedules, any changes therein from time to time, and it shall bethe responsibility in turn of the client to comply with suchschedules/procedures of the relevant stock exchange.

13Member___________________________________ Client ________________________________

16

9. In the event of death or insolvency of the client or his/its otherwisebecoming incapable of receiving and paying for or delivering ortransferring securities which the client has ordered to be boughtor sold, stock broker may close out the transaction of the clientand claim losses, if any, against the estate of the client. Theclient or his successors, heirs and assigns shall be entitled toany surplus which may result there from.

10. The stock broker agrees that it shall co-operate in redressinggrievances of the client in respect of transactions routed throughit and in removing objections for bad delivery of shares,rectification of bad delivery, etc. in respect of shares and securitiesdelivered/to be delivered or received/to be received by the client.

I I. The stock broker shall continue to be responsible for replacingbad deliveries of the client in accordance with applicable “Good& bad delivery norms” even after termination of the agreementand shall be entitled to recover any loss incurred by him in suchconnection from the client.

12. The stock broker shall ensure due protection to the clientregarding client’s rights to dividends, rights or bonus shares etc.in respect of transactions routed through it and it shall not doanything which is likely to harm the interest of the client withwhom and for whom it may have had transactions in securities.

13. The client and the stock broker agree to refer any claims and/ordisputes to arbitration as per the Rules, Byelaws and Regulationsof the Exchange and circulars issued thereunder as may be inforce from time to time.

14. The stock broker hereby agree that he shall ensure fastersettlement of any arbitration proceedings arising out of thetransactions entered into between him and the client and that heshall be liable to implement the arbitration awards made in suchproceedings.

15. Information about default in payment/delivery and related aspectsby a client shall be brought to the notice of the relevant stockExchange(s). In case where defaulting client is a corporateentity/partnership/proprietary firm or any other artificial legalentity, then the name(s) of director(s)/prometer(s) /Partner(s)/proprietor as the case may, shall also be communicated to therelevant stock exchange(s).

16. The stock broker and the client agree to reconcile their accountsat the end of each quarter with reference to all the settlementswhere payouts have been declared during the quarter.

17. The stock broker and the client agree to abide by any awardpassed by the Ombudsman under the SEBI (Ombudsman)Regulations, 2003.

18. The stock broker and the client declare and agree that thetransactions executed on the Exchange are subject to Rules,Byelaws and Regulations and circulars issued thereunder ofthe Exchange and all parties to such trade shall have submittedto the jurisdiction of such court as may be specified by the Byelawsand Regulations of the Exchange for the purpose of giving effectto the provisions of the Rules, Byelaws and Regulations of theExchange and the circulars issued thereunder.

19. The instructions issued by an authorised representative, if any,of the client shall be binding on the client in accordance with theletter authorizing the said representative to deal on behalf of thesaid client.

20. Whereas the Exchange cancels trade(s) suo moto all such tradesincluding the trade/s done on behalf of the client shall ipso factostand cancelled.

21. This agreement shall forthwith terminate; if the stock broker forany reason ceases to be a stock broker of the stock exchangeincluding cessation of membership by reason of the stockbroker’s default, death, resignation or expulsion or if thecertificate issued by the Board is cancelled.

22. The stock broker and the client shall be entitled to terminate thisagreement without giving any reasons to the other party, aftergiving notice in writing of not less than one month to theother parties. Notwithstanding any such termination, all rights,liabilities and obligations of the parties arising out of or in respectof transactions entered into prior to the termination of thisagreement shall continue to subsist and vest in /be binding onthe respective parties or his/its respective heirs, executors,administrators, legal representatives or successors, as the casemay be.

23. In addition to the specific rights set out in this Agreement, thestock broker and the client shall be entitled to exercise any otherrights which the stock broker or the client may have under theRules, Bye-laws and Regulations of the Exchange and circularsissued thereunder or Rules and Regulations of SEBI.

24. Words and expressions which are used in this Agreement,but which are not defined herein shall, unless the contextotherwise requires, have the same meaning as assigned theretoin the Rules, Byelaws and Regulations of the Exchange andcirculars issued thereunder.

25. The provisions of this agreement shall always be subject toGovernment notifications, any rules, regulations, guidelines andcirculars issued by SEBI and Rules, Regulations and Byelaws of the relevant stock exchange that maybe in force fromtime to time.

26. The stock broker hereby undertakes to maintain the details ofthe client as mentioned in the client registration form or any otherinformation pertaining to the client in confidence and that is shallnot disclose the same to any person/authority except asrequired under any law/regulatory requirements; Providedhowever that the stock broker may so disclose information aboutits his client to any person or authority with the express permissionof the client.This agreement can be altered, amended and / or modified bythe parties mutually in writing without derogating from thecontents of this agreement. Provided however, if the rights andobligations of the parties hereto are altered by virtue of changein rules and regulations of SEBI or bye-laws, rules and regulationsof the relevant stock exchange, such changes, shall be deemedtohave beenincorporated herein in modification of the rights andobligations of the parties mentioned in this agreement.

IN WITNESS THEREOF the parties to the Agreement have caused these presents to be executed as of the day and year first above written.

Note: All references to the specific quantity/rate/fee mentioned in this agreement are subject to change from time to time, as soagreed to in writing between the parties.

Signed for and on behalf of Signed for and on behalf of

Name of the Member : B.N.RATHI SECURITIES LIMTIED CLIENT :

By :

Signature :

Title :

Witness 1 : _______________________________________ Witness 1 : _____________________________________

Name : ________________________________________ Name : _____________________________________

Address : _____________________________________

____________________________________

Witness 2 ________________________________________ Witness 2 : ____________________________________

Name : _________________________________________ Name :____________________________________

Address :____________________________________

____________________________________

14



Address : 6-3-652, “Kautilya”, 4th Floor, Amrutha Estate, Somajiguda, Hyd – 82


17

a. He has read and understood the risks involved in trading on astock exchange.


c. The failure of the client to understand the risk involved shall notrender a contract as void or voidable and the client shall be andshall continue to be responsible for all the risks and consequencesfor entering into trades in the segments in which the client choseto trade.

d. He is liable to pay applicable initial margins, withholding margins,special margins or such other margins as are considerednecessary by the stock broker or the Exchange or as may bedirected by SEBI from time to time as applicable to the segment(s)in which the client trades. The stock broker is permitted in itssole and absolute discretion to collect additional margin (eventhough not required by the Exchange, Clearing House/Clearing Corporation or SEBI) and client shall be obliged to paysuch margins within the stipulated time.

e. Payment of margins by the client does not necessarily implycomplete satisfaction of all dues. In spite of consistently havingpaid margins, the client may on the closing of its trade, be obligedto pay (or entitled to receive) such further sums as the contractmay dictate/require.

3. The Client agrees to pay to the stock broker brokerage andstatutory levies as are prevailing from time to time and as theyapply to the Client’s account, transactions and to the servicesthat stock broker renders to the Client. The stock broker agreesthat it shall not charge brokerage more than the maximumbrokerage permissible as per the rules, regulations and bye-lawsof the relevant stock exchange/SEBI.


5. Without prejudice to the stock broker’s other rights (including theright to refer a matter to arbitration), the stock broker shall beentitled to liquidate/close out all or any of the client’s positionsfor non-payment of margins or other amounts, outstanding debts,etc. and adjust the proceeds of such liquidation/close out, if any,against the client’s liabilities/ obligations. Any and all losses andfinancial charges on account of such liquidation/closing-out shallbe charged to and borne by the client.

6. The stock broker agrees that the money/securities deposited bythe client shall be kept in a separate account, distinct from his/itsown account or account of any other client and shall not be usedby the stock broker for himself/itself or for any other client or forany purpose other than the purposes mentioned in SEBI Rulesand Regulations /circulars/ guidelines/Exchanges Rules/Regulations/Bye-laws and circulars.


8. The stock broker agrees to inform the client and keep himapprised about trading/settlement cycles, delivery/paymentschedules, any changes there in from time to time, and it shallbe the responsibility in turn of the client to comply with suchschedules/procedures of the relevant stock exchange.

9. In the event of death or insolvency of the client or his/its otherwisebecoming incapable of receiving and paying for or delivering ortransferring securities which the client has ordered to be boughtor sold, stock broker may close out the transaction of the client

(ix) MEMBER AND CONSTITUENT AGREEMENT (BSE) (CASH SEGMENT)

This Agreement is made and executed at Hyderabad this ________day of_____________ between M/s B.N. RATHI SECURITIESLIMITED a body corporate, incorporated under the provisions of theCompanies Act, 1956, being a member of the Bombay Stock Exchange(hereinafter called “the Exchange”), and having its Registered officeat 6-3-652, “Kautilya”, 4th Floor, Amritha Estates, Somajuguda,Hyderabad - 500082 (herein after called “the Stock Broker”) whichexpression shall, unless repugnant to the context or meaning thereof,be deemed to mean and include itself in the capacity of a tradingmember while trading in the derivatives segment, it/his/her heirs,executors, administrators and legal representatives/the partners forthe time being of the said firm, the survivor or survivors of them andtheir respective heirs, executors, administrators and legalrepresentatives/its successors, as the case may be, of the One Part

ANDMr./Ms./M/s. _____________________________________________,an individual/a sole proprietary concern/a partnership firm/ a bodycorporate, registered/ incorporated, under the provisions of the IndianPartnership Act, 1932 / the Companies Act, 1956, having its/his/herresidence / registered office at__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________(hereinafter called “the Client”) which expression shall, unlessrepugnant to the context or meaning thereof, deemed to mean andinclude his/her heirs, executors, administrators and legalrepresentatives/the partners for the time being of the said firm, thesurvivor or survivors of them and their respective heirs, executors,administrators and legal representatives/its successors, as the casemay be, of the Other Part;Whereas the stock broker is registered as the stock broker of theExchange with SEBI registration number INB 010714138 in the CapitalMarket Whereas the client is desirous of investing/trading in thissecurities contracts/other instruments admitted to dealings on theExchange as defined in the Rules, Byelaws and Regulations of theExchange and circulars issued thereunder from time to time.Whereas the client has satisfied itself of the capacity of the stock brokerto deal in securities and/or deal in derivatives contracts and wishes toexecute its orders through the stock broker and the client shall fromtime to time continue to satisfy itself of such capability of the stockbroker before executing orders through the stock broker.Whereas the stock broker has satisfied and shall continuously satisfyitself about the genuineness and financial soundness of the client andinvestment objectives relevant to the services to be provided; andWhereas the stock broker has taken steps and shall take steps tomake the client aware of the precise nature of the Stock broker’s liabilityfor business to be conducted, including any limitations, the liabilityand the capacity in which the stock broker acts.WHEREAS the stock broker and the client agree to be bound by allthe Rules, Byelaws and Regulations of the Exchange and circularsissued there under and Rules and Regulations of SEBI and relevantnotifications of Government authorities as may be in force from timeto time.Now, therefore, in consideration of the mutual understanding as setforth in this agreement, the parties thereto have agreed to the followingterms and conditions:1. The client agrees to immediately notify the stock broker in writing

if there is any change in the information in the ‘client registrationform’ provided by the client to the stock broker at the time ofopening of the account or at any time thereafter.

2. The stock broker declares that it has brought the contents of therisk disclosure document to the notice of client and made himaware of the significance of the said document. The client agreesthat:

15Member___________________________________ Client ________________________________

18

and claim losses, if any, against the estate of the client. Theclient or his successors, heirs and assigns shall be entitled toany surplus which may result there from.

10. The stock broker agrees that it shall co-operate in redressinggrievances of the client in respect of transactions routed throughit and in removing objections for bad delivery of shares,rectification of bad delivery, etc. in respect of shares and securitiesdelivered/to be delivered or received/to be received by the client.

I I. The stock broker shall continue to be responsible for replacingbad deliveries of the client in accordance with applicable “Good& bad delivery norms” even after termination of the agreementand shall be entitled to recover any loss incurred by him in suchconnection from the client.

12. The stock broker shall ensure due protection to the clientregarding client’s rights to dividends, rights or bonus shares etc.in respect of transactions routed through it and it shall not doanything which is likely to harm the interest of the client withwhom and for whom it may have had transactions in securities.

13. The client and the stock broker agree to refer any claims and/ordisputes to arbitration as per the Rules, Byelaws and Regulationsof the Exchange and circulars issued thereunder as may be inforce from time to time.

14. The stock broker hereby agree that he shall ensure fastersettlement of any arbitration proceedings arising out of thetransactions entered into between him and the client and that heshall be liable to implement the arbitration awards made in suchproceedings.

15. Information about default in payment/delivery and related aspectsby a client shall be brought to the notice of the relevant stockExchange(s). In case where defaulting client is a corporateentity/partnership/proprietary firm or any other artificial legalentity, then the name(s) of director(s)/prometer(s)/ Partner(s)/proprietor as the case may, shall also be communicated to therelevant stock exchange(s).

16. The stock broker and the client agree to reconcile their accountsat the end of each quarter with reference to all the settlementswhere payouts have been declared during the quarter.

17. The stock broker and the client agree to abide by any awardpassed by the Ombudsman under the SEBI (Ombudsman)Regulations, 2003.

I8. The stock broker and the client declare and agree that thetransactions executed on the Exchange are subject to Rules,Byelaws and Regulations and circulars issued thereunder of theExchange and all parties to such trade shall have submitted tothe jurisdiction of such court as may be specified by the Byelawsand Regulations of the Exchange for the purpose of giving effectto the provisions of the Rules, Byelaws and Regulations of theExchange and the circulars issued thereunder.

19. The instructions issued by an authorised representative, if any,of the client shall be binding on the client in accordance with the

letter authorizing the said representative to deal on behalf of thesaid client.

20. Where the Exchange cancel trade(s) suo moto all such tradesincluding the trade/s done on behalf of the said client.

21. This agreement shall forthwith terminate; if the stock broker forany reason ceases to be a member of the stock exchangeincluding cessation of membership by reason of the stock broker’sdefault, death, resignation or expulsion or if the certificate issuedby the Board is cancelled.

22. The stock broker and the client shall be entitled to terminate thisagreement without giving any reasons to the other party, aftergiving notice in writing of not less than one month to theother parties. Not withstanding any such termination, all rights,liabilities and obligations of the parties arising out of or in respectof transactions entered into prior to the termination of thisagreement shall continue to subsist and vest in /be binding onthe respective parties or his/its respective heirs, executors,administrators, legal representatives or successors, as the casemay be.

23. In addition to the specific rights set out in this Agreement, thestock broker and the client shall be entitled to exercise any otherrights which the stock broker or the client may have under theRules, Bye-laws and Regulations of the Exchange and circularsissued there under or Rules and Regulations of SEBI.

24. Words and expressions which are used in this Agreement,but which are not defined herein shall, unless the contextotherwise requires, have the same meaning as assigned thereto in the Rules, Byelaws and Regulations of the Exchange andcirculars issued thereunder.

25. The provisions of this agreement shall always be subject toGovernment notifications, any rules, regulations, guidelines andcirculars issued by SEBI and Rules, Regulations and Byelaws of the relevant stock exchange that may be in force fromtime to time.

26. The stock broker hereby undertakes to maintain the details ofthe client as mentioned in the client registration form or anyother information pertaining to the client in confidence and thatis shall not disclose the same to any person/authority except asrequired under any law/regulatory requirements; Providedhowever that the stock broker may so disclose information aboutits his client to any person or authority with the expresspermission of the client.This agreement can be altered, amended and / or modified bythe parties mutually in writing without derogating from thecontents of this agreement. Provided however, if the rights andobligations of the parties hereto are altered by virtue of changein rules and regulations of SEBI or bye-laws, rules and regulationsof the relevant stock exchange, such changes, shall be deemedto have been incorporated herein in modification of the rightsand obligations of the parties mentioned in this agreement.




By :

Signature :

Title :

Witness 1 : _______________________________________ Witness 1 : _____________________________________

Name : ________________________________________ Name : _____________________________________

Address : _____________________________________

____________________________________

Witness 2 ________________________________________ Witness 2 : ____________________________________

Name : _________________________________________ Name :____________________________________

Address :____________________________________

____________________________________

16






19

(x) TRIPARTITE AGREEMENT BETWEEN STOCK BROKER, SUB-BROKER AND CLIENT (NSE)

This Agreement is made and executed at Hyderabad (hereinafter referred to as “Agreement”) is entered into on this_______day of____________byand between B.N. RATHI SECURITIES LIMITED (hereinafter referred to as “the Stock Broker”), a body corporate incorporated under theprovisions of Companies Act 1956 and having registered office at 6-3-652, “Kautilya”, 4th Floor, Amritha Estates, Somajuguda, Hyderabad -500082 which expression shall, unless repugnant to the context or meaning thereof, be deemed to mean and include his/her heirs, executors,administrators and legal representatives/the partners for the time being of the said entity, the survivor or survivors of them and their respectiveheirs, executors, administrators and legal representatives/its successors, as the case may be, of the First Part;

AND(name of the sub-broker) (hereinafter referred to as “the Sub-Broker”),aan individual/a sole proprietary concern/a partnership firm/ a bodycorporate, and having his/its office/registered office at(address), which expression shall, unless repugnant to the context meaningthereof, be deemed to mean and include his/her heirs, executors,administrators and legal representatives/the partners for the time being ofthe said entity, the survivor or survivors of them and their respective heirs,

executors, administrators and legal representatives/its successors, as the case may be, of the Second Part;AND

(name of the client of the sub-broker) (hereinafter referred to as “theClient”), an individual/a an individual/a sole proprietary concern/apartnership firm/ a body corporate, and having his /its residence/office/at (address) which expression shall, unless repugnant to thecontext or meaning thereof, be deemed to mean and include his/herheirs, executors, administrators and legal representatives/the partnersfor the time being of the said entity, the survivor or survivors of them andtheir respective heirs, executors, administrators and legal representativesits successors, as the case may be, of the Third Part;WHEREAS

1. The trading member states that it is engaged, in the business ofstock broking and is a Member of National Stock Exchange ofIndia Ltd., (hereinafter referred to as “the stock exchange”)with SEBI registration Number INB/INE/INF 230714134

2. The sub-broker states that:a) The sub broker is recognized by the National Stock Exchange

of India as a Sub-broker affiliated to the stock broker of thestock exchange with Sub-broker SEBI registration Number(s) as specified in schedule.

b) The sub-broker is not affiliated to any other member of thesame stock exchange,

c) The sub-broker has the necessary infrastructure likeadequate office space, equipment and manpower toeffectively discharge his/ its activities.

3. The Client is registered with the sub-broker as a client for purposeof availing broking services through the sub-broker affiliated tothe stock broker and is desirous of investing/trading inthose securities/contracts/other instruments admitted to dealingson the Exchange as defined in the Rules, Byelaws andRegulations of the Exchange and circulars issued thereunderfrom time to time. A copy of the Client Registration form is annexedhereto.

4. Whereas the stock broker has satisfied and shall continuouslysatisfy itself about the genuineness and financial soundness ofthe client and investment objectives relevant to the services tobe provided; and

5. Whereas the stock broker has taken steps and shall take steps

to make the client aware of the precise nature of the Stockbroker’s/sub broker’s liability for business to be conducted,including any limitations, the liability and the capacity in whichthe stock broker/sub broker acts.

NOW THIS AGREEMENT WITNESSETH AND IT IS HEREBYAGREED BY AND BETWEEN STOCK BROKER, SUB-BROKERAND CLIENT AS UNDER:1. The stock broker and subbroker hereby acknowledge and confirm

that the sub-broker is affiliated to the stock broker and that thesub-broker shall within the scope of the authority given underthese presents, be entitled to act as a ‘sub-broker’ within themeaning and subject to SEBI (Stock Brokers and Sub-Brokers)Rules, 1992 and SEBI (Stock Brokers and Sub-Brokers)Regulations 1992 (hereinafter referred to as the said“Rules” and “Regulations” respectively) as amended from timeto time, for assisting the client in buying, selling or dealing insecurities through the stock broker.

2. The stock broker, the sub-broker and the client agree that theyshall abide by all the statutory responsibilities and obligationsimposed on them by the rules, regulations and / or any otherrules or regulations applicable to the stock brokers, the sub-brokers and the clients in general either framed by SEBI or bythe relevant stock exchange/clearing corporation and/or anyGovernment Circulars.

3. The stockbroker and the sub broker declare that they havebrought the contents of the risk disclosure document to the noticeof client and made him aware of the significance of the saiddocument. The client agrees that:a. He has read and understood the risks involved in trading on

a stock exchange.

17Member: ________________________ Sub Broker: ______________________ Client:_______________________

20


c. The failure of the client to understand the risk involved shallnot render a contract as void or voidable and the client shallbe and shall continue to be responsible for all the risks andconsequences for entering into trades in the segments inwhich the client chose to trade.

d. He is liable to pay applicable initial margins, withholding margins,special margins or such other margins as are considerednecessary by the stock broker or the Exchange or as maybe directed by SEBI from time to time as applicable to thesegment(s) in which the client trades. The stock broker ispermitted in its sole and absolute discretion to collectadditional margins (even though not required by theExchange, Clearing House/Clearing Corporation or SEBI)and the client shall be obliged to pay such margins within thestipulated time.

e. Payment of margins by the client does not necessarily implycomplete satisfaction of all dues. In spite of consistentlyhaving paid margins, the client may, on the closing of itstrade, be obliged to pay (or entitled to receive) such furthersums as the contract may dictate/require.

4. The Client agrees to pay to the stock broker brokerage andstatutory levies as are prevailing from time to time and as theyapply to the Client’s account, transactions and to the servicesthat stock broker \the sub-broker renders to the Client. The stockbroker agrees that it shall not charge brokerage more than themaximum brokerage permissible as per the rules, regulationsand bye-laws of the relevant stock exchange/SEBI.

5. The stock broker and the sub broker agree that they shall co-operate and help each other in redressing grievances of the clientin respect of transactions routed through them and in removingobjections for bad delivery of shares, rectification of bad delivery,etc. in respect of shares and securities delivered/to be deliveredor received/to be received by the clients of sub-broker from themember and vice-versa.

6. The stock broker shall continue to be responsible for replacingbad deliveries of the client in accordance with applicable “Good& bad delivery norms” even after termination of the agreementand shall be entitled to recover any loss incurred by him in suchconnection from the client.

7. The stock broker agrees that the money/securities deposited bythe client shall be kept in a separate account, distinct from his/itsown account or account of any other client and shall not be usedby the stock broker for himself/itself or for any other client or forany purpose other than the purposes mentioned in SEBI Rulesand Regulations circulars/ guidelines/Exchanges Rules/Regulations/Bye-laws and circulars.

8. The stock broker and the sub-broker agree that each of themshall ensure due protection to the client regarding client’s rightsto dividends, rights or bonus shares, etc. in respect of transactionsrouted through them and they shall not jointly or severally doanything which is likely to harm the interest of the client withwhom and for whom they may have had transactions in securities.

9. The stock broker agrees to inform the sub-broker/client andkeep them apprised about trading/settlement cycles, delivery/payment schedules, any changes therein from time to time, andit shall be the responsibility in turn of the sub-broker/client tocomply with such schedules/procedures of the relevant stockexchange.

10. The sub broker will provide assistance to stock broker and clientto reconcile their accounts at the end of each quarter withreference to all the settlements where payouts have beendeclared during the quarter.

11. The stock broker shall issue, individually for each client of hissub broker. contract notes in the format prescribed by the relevantstock exchange. The sub-broker shall render necessaryassistance to his client in obtaining the contract note from thestock broker.

12. The stock broker, the sub-broker and the client agree to abideby any award passed by the Ombudsman under the SEBI(Ombudsman) Regulations, 2003.

13. The client and the stock broker agree to refer any claims and/ordisputes to arbitration as per the Rules, Byelaws andRegulations of the Exchange and circulars issued thereunderas may be in force from time to time.

14. The stock broker and the sub-broker hereby agree that they willassist and co-operate with each other in ensuring fastersettlement of any arbitration proceedings arising out of thetransactions entered into between them vis-a-vis the client andthey shall be jointly or severally liable to implement thearbitration awards made in such proceedings. In case of an awardagainst a sub broker, if the sub broker fails to implement theaward, the stock broker shall be liable to implement the sameand would be entitled to recover the same from the sub broker.

15. The stock broker and the sub-broker hereby agree that alltransactions in securities on behalf of the clients of the sub-brokershall be settled by delivery and/or payment, between the stockbroker and the client in accordance with the provisions of rules,bye-laws and regulations of the relevant stock exchange on whichthe transactions took place and subject to the procedures forsettlement of transactions laid down by the relevant stockexchange from time to time.

16. Information about default in payment/delivery and related aspectsby a client, including that of a sub broker as a client shall bebrought to the notice of the relevant stock Exchange(s) by thestock broker. In case where defaulting sub broker / client is acorporate entity / partnership / proprietary firm or any other artificiallegal entity, then the name(s) of director(s) / promoter(s) /Partner(s) / proprietor as the case may be, shall also becommunicated to the relevant stock exchange(s) by the stockbroker.

17. The stock broker, the sub-broker or the client shall be entitled toterminate this agreement without giving any reasons to the otherparty, after giving notice in writing of not less than one month tothe other parties at their respective addresses mentioned below.Notwithstanding any such termination, all rights, liabilities andobligations of the parties arising out of or in respect of transactionsentered into prior to the termination of this agreement shallcontinue to subsist and vest in /be binding on the respectiveparties or his / its respective heirs, executors, administrators,legal representatives or successors, as the case may be.

18. In the event of sub broker terminating this agreement and/ortermination of the agreement with the sub broker by the stockbroker, for any reason whatsoever, the client shall be informedof such termination and the client shall be deemed to be thedirect client of the stock broker and all clauses in the agreementgoverning the client and stock broker shall continue to be in forceas it is, unless the client intimates to the stock broker his/itsintention to terminate the agreement by giving a notice in writingof not less than one month.

19. This agreement shall forthwith terminate;(i) if the stock broker for any reason ceases to be a memberof the stock exchange including cessation of membership byreason of the stock broker’s default, death, resignation orexpulsion or if the certificate issued by the Board is cancelled;(ii) upon the demise/insolvency of the sub-broker or thecancellation of his/its registration with the Board or /withdrawalof recognition of the sub-broker by the stock exchange. Providedhowever, in such an event, the client shall be informed of suchtermination and the client shall be deemed to be the direct clientof the stock broker and all clauses in the agreement governingthe client and stock broker shall continue to be in force as it is,unless the client intimate to the stock broker or the stock brokerintimates to the client his/its intention to terminate the agreementby giving one month notice in writing.

Member: ________________________ Sub Broker: ______________________ Client:________________________18

21

20. The provisions of this agreement shall always be subject toGovernment notifications, any rules, regulations, guidelinesand circulars issued by SEBI and Rules, Regulations and Byelaws of the relevant stock exchange that may be in force fromtime to time.

21. In the event of death or insolvency of the client or his/its otherwisebecoming incapable of receiving and paying for or delivering ortransferring securities which the client has ordered to be boughtor sold, stock broker may close out the transaction of the clientand claim losses, if any, against the estate of the client. Theclient or his successors, heirs and assigns shall be entitled toany surplus which may result therefrom.

22. Without prejudice to the stock broker’s other rights (including theright to refer a matter to arbitration), the stockbroker shall beentitled to liquidate/closeout all or any of the client’s positionsfor non-payment of margins or other amounts, outstanding debts,etc. and adjust the proceeds of such liquidation / close out, ifany. Against the client’s liabilities/obligations. Any and alllosses and financial charges on account of such liquidation/closing- out shall be charged to and borne by the client.

23. The stock broker and the client declare and agree that thetransactions executed on the Exchange are subject to Rules.Byelaws and Regulations and circulars issued thereunder of theExchange and all parties to such trade shall have submitted tothe jurisdiction of such court as may be specified by theByelaws and Regulations of the Exchange for the purpose ofgiving effect to the provisions of the Rules, Byelaws andRegulations of the Exchange and the circulars issued thereunder.

24. Where the Exchange cancels trade(s) suo moto all such tradesincluding the trade/s done on behalf of the client shall ipso factostand cancelled, member shall be entitled to cancel the respectivecontract(s) with client(s)

25. The instructions issued by an authorized representative, ifany, of the client shall be binding on the client in accordance withthe letter authorizing the said representative to deal on behalf ofthe said client.

26. The client agrees to immediately notify the stock broker/subbroker in writing if there is any change in the information in the

‘client registration form’ provided by the client to the stock broker/sub broker at the time of opening of the account or at anytimethereafter.


28. In addition to the specific rights set out in this Agreement, thestock broker, the sub-broker and the client shall be entitled toexercise any other rights which the stock broker, sub broker orthe client may have under the Rules, Bye-laws and Regulationsof the Exchange and circulars issued thereunder or Rules andRegulations of SEBI.

29. The stock broker and the sub-broker hereby undertake tomaintain the details of the client as mentioned in the clientregistration form or any other information pertaining to the clientin confidence and that they shall not disclose the same to anyperson/authority except as required under any law/regulatoryrequirements: Provided however that the stock broker or sub-broker may so disclose information about his client to any personor authority with the express permission of the client.


31. Words and expressions which are used in this Agreement,but which are not defined herein shall, unless the contextotherwise requires, have the same meaning as assigned theretoin the Rules, Byelaws and Regulations of the Exchange andcirculars issued thereunder.This agreement can be altered, amended and / or modified bythe parties mutually in writing without derogating from the contentsof this agreement. Provided however, if the rights and obligationsof the parties hereto are altered by virtue of change in rules andregulations of SEBI or bye-laws, rules and regulations of therelevant stock exchange, such changes, shall be deemed to havebeen incorporated herein in modification of the rights andobligations of the parties mentioned in this agreement.


Note: All references to the specific quantity/rate/fee mentioned in this agreement are subject to change from time to time, as so agreed to inwriting between the parties.

Member:Full name, details of Membershipof the stock exchange & address

Sub-Broker:Full name, details of recognition

of the stock exchange and address

Client:Full details and address

B.N.RATHI SECURITIES LIMITEDMember: National Stock Exchange of India LtdRegd. Off: 6-3-652, “Kautilya”4th Floor, Amrutha Estate,Somajiguda, Hyderabad – 500082

Member: ________________________ Sub Broker: ______________________ Client:_________________________19

SEBI Regn. No: CM:. INB 230714134 F&O INF 230714134 CD INE 230714134

Witness 1 : _______________________________________ Witness 1 : _____________________________________

Name : ________________________________________ Name : _____________________________________

Address : _____________________________________

____________________________________

Witness 2 ________________________________________ Witness 2 : ____________________________________

Name : _________________________________________ Name :____________________________________

Address :____________________________________

____________________________________Address : 6-3-652, “Kautilya”, 4th Floor, Amrutha Estate,

Somajiguda, Hyd – 82


22

WHEREAS1. The stock broker states that it is engaged, in the business of

stock broking and is a Member of Bombay Stock Exchange Ltd.,(hereinafter referred to as “the stock exchange”) with SEBIregistration Number INB 010714138

2. The sub-broker states that:a) The sub broker is recognized by the BSE of India as a Sub-

broker affiliated to the stock broker of the stock exchangewith Sub-broker SEBI registration Number (s) as specifiedin schedule.

b) The sub-broker is not affiliated to any other member of thesame stock exchange,

c) The sub-broker has the necessary infrastructure likeadequate office space, equipment and manpower toeffectively discharge his/ its activities.

3. The Client is registered with the sub-broker as a client for purposeof availing broking services through the sub-broker affiliated tothe stock broker and is desirous of investing/trading inthose securities/contracts/other instruments admitted to dealingson the Exchange as defined in the Rules, Byelaws andRegulations of the Exchange and circulars issued thereunderfrom time to time. A copy of the Client Registration form is annexedhereto.

4. Whereas the stock broker has satisfied and shall continuouslysatisfy itself about the genuineness and financial soundness ofthe client and investment objectives relevant to the services tobe provided; and

5. Whereas the stock broker has taken steps and shall take stepsto make the client aware of the precise nature of the Stockbroker’s/sub broker’s liability for business to be conducted,including any limitations, the liability and the capacity in whichthe stock broker/sub broker acts.

NOW THIS AGREEMENT WITNESSETH AND IT IS HEREBYAGREED BY AND BETWEEN STOCK BROKER, SUB-BROKER ANDCLIENT AS UNDER:1. The stock broker and subbroker hereby acknowledge and confirm

that the sub-broker is affiliated to the stock broker and that thesub-broker shall within the scope of the authority given underthese presents, be entitled to act as a ‘sub-broker’ within themeaning and subject to SEBI (Stock Brokers and Sub-Brokers)Rules, 1992 and SEBI (Stock Brokers and Sub-Brokers)Regulations 1992 (hereinafter referred to as the said “Rules”and “Regulations” respectively) as amended from time to time,for assisting the client in buying, selling or dealing in securitiesthrough the stock broker.

2. The stock broker, the sub-broker and the client agree that theyshall abide by all the statutory responsibilities and obligationsimposed on them by the rules, regulations and / or any otherrules or regulations applicable to the stock brokers, the sub-brokers and the clients in general either framed by SEBI or bythe relevant stock exchange/clearing corporation and/or anyGovernment Circulars.

3. The stockbroker and the sub broker declare that they havebrought the contents of the risk disclosure document to thenotice of client and made him aware of the significance of thesaid document. The client agrees that:a. He has read and understood the risks involved in trading on

a stock exchange.b. He shall be wholly responsible for all his investment decisions

and trades.c. The failure of the client to understand the risk involved shall

not render a contract as void or voidable and the client shallbe and shall continue to be responsible for all the risks and .

(xi) TRIPARTITE AGREEMENT BETWEEN STOCK BROKER, SUB-BROKER AND CLIENT (BSE)This Agreement is made and executed at Hyderabad (hereinafter referred to as “Agreement”) is entered into on this__________day of______________ by and between B.N. RATHI SECURITIES LIMITED (hereinafter referred to as “the Stock broker”), a body corporateincorporated under the provisions of Companies Act 1956 and having registered office at 6-3-652, “Kautilya”, 4th Floor, Amritha Estates,Somajuguda, Hyderabad - 500082 which expression shall, unless repugnant to the context or meaning thereof, be deemed to mean andinclude his/her heirs, executors, administrators and legal representatives/the partners for the time being of the said entity, the survivor orsurvivors of them and their respective heirs, executors, administrators and legal representatives/its successors, as the case may be, of theFirst Part;

AND(name of the sub-broker) (hereinafter referred to as “the Sub-broker”), aan individual/a sole proprietary concern/a partnership firm/ a bodycorporate, and having his/its office/registered office at (address), whichexpression shall, unless repugnant to the context or meaning thereof, bedeemed to mean and include his/her heirs, executors, administrators andlegal representatives/the partners for the time being of the said entity, thesurvivor or survivors of them and their respective heirs, executors,

administrators and legal representatives/its successors, as the case may be, of the Second Part;AND

(name of the client of the sub-broker) (hereinafter referred to as“theClient”), an individual/a an individual/a sole proprietary concern/apartnership firm/ a body corporate, and having his /its residence/office/at (address) which expression shall, unless repugnant to the contextor meaning thereof, be deemed to mean and include his/her heirs,executors, administrators and legal representatives/the partners for thetime being of the said entity, the survivor or survivors of them and theirrespective heirs, executors, administrators and legal representatives/itssuccessors, as the case may be, of the Third Part;


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consequences for entering into trades in the segments inwhich the client chose to trade.

d. He is liable to pay applicable initial margins, withholdingmargins, special margins or such other margins as areconsidered necessary by the stock broker or the Exchangeor as may be directed by SEBI from time to time asapplicable to the segment(s) in which the client trades. Thestock broker is permitted in its sole and absolute discretionto collect additional margins (even though not requiredby the Exchange, Clearing House/Clearing Corporation orSEBI) and the client shall be obliged to pay such marginswithin the stipulated time

e. Payment of margins by the client does not necessarilyimply complete satisfaction of all dues. In spite of consistentlyhaving paid margins, the client may, on the closing of itstrade, be obliged to pay (or entitled to receive) such furthersums as the contract may dictate/require.

4. The Client agrees to pay to the stock broker brokerage andstatutory levies as are prevailing from time to time and as theyapply to the Client’s account, transactions and to the servicesthat stock broker \the sub-broker renders to the Client. The stockbroker agrees that it shall not charge brokerage more than themaximum brokerage permissible as per the rules, regulationsand bye-laws of the relevant stock exchange/SEBI.

5. The stock broker and the sub broker agree that they shall co-operate and help each other in redressing grievances of the clientin respect of transactions routed through them and in removingobjections for bad delivery of shares, rectification of bad delivery,etc. in respect of shares and securities delivered/to be deliveredor received/to be received by the clients of sub-broker from themember and vice-versa.

6. The stock broker shall continue to be responsible for replacingbad deliveries of the client in accordance with applicable “Good& bad delivery norms” even after termination of the agreementand shall be entitled to recover any loss incurred by him in suchconnection from the client.

7. The stock broker agrees that the money/securities deposited bythe client shall be kept in a separate account, distinct from his/itsown account or account of any other client and shall not be usedby the stock broker for himself/itself or for any other client or forany purpose other than the purposes mentioned in SEBI Rulesand Regulations circulars/ guidelines/Exchanges Rules/Regulations/Bye-laws and circulars.

8. The stock broker and the sub-broker agree that each of themshall ensure due protection to the client regarding client’s rightsto dividends, rights or bonus shares, etc. in respect of transactionsrouted through them and they shall not jointly or severally doanything which is likely to harm the interest of the client withwhom and for whom they may have had transactions in securities.

9. The stock broker agrees to inform the sub-broker/client and keepthem apprised about trading/settlement cycles, delivery/paymentschedules, any changes therein from time to time, and it shall bethe responsibility in turn of the sub-broker/cIient to comply withsuch schedules/procedures of the relevant stock exchange.

10. The sub broker will provide assistance to stock broker and clientto reconcile their accounts at the end of each quarter withreference to all the settlements where payouts have beendeclared during the quarter.

I I. The stock broker shall issue, individually for each client of hissub broker. contract notes in the format prescribed by the relevantstock exchange. The sub-broker shall render necessaryassistance to his client in obtaining the contract note from thestock broker.

12. The stock broker, the sub-broker and the client agree to abideby any award passed by the Ombudsman under the SEBI(Ombudsman) Regulations, 2003.

13. The client and the stock broker agree to refer any claims and/ordisputes to arbitration as per the Rules, Byelaws and

Regulations of the Exchange and circulars issued thereunderas may be in force from time to time.

14. The stock broker and the sub-broker hereby agree that they willassist and co-operate with each other in ensuring fastersettlement of any arbitration proceedings arising out of thetransactions entered into between them vis-a-vis the client andthey shall be jointly or severally liable to implement thearbitration awards made in such proceedings. In case of an awardagainst a sub broker, if the sub broker fails to implement theaward, the stock broker shall be liable to implement the sameand would be entitled to recover the same from the sub broker.

15. The stock broker and the sub-broker hereby agree that alltransactions in securities on behalf of the clients of the sub-brokershall be settled by delivery and/or payment, between the stockbroker and the client in accordance with the provisions of rules,bye-laws and regulations of the relevant stock exchange on whichthe transactions took place and subject to the procedures forsettlement of transactions laid down by the relevant stockexchange from time to time.

16. Information about default in payment/delivery and related aspectsby a client, including that of a sub broker as a client shall bebrought to the notice of the relevant stock Exchange(s) by thestock broker. In case where defaulting sub broker / client is acorporate entity / partnership / proprietary firm or any other artificiallegal entity, then the name(s) of director(s) / promoter(s) /Partner(s) / proprietor as the case may be, shall also becommunicated to the relevant stock exchange(s) by the stockbroker.

17. The stock broker, the sub-broker or the client shall be entitled toterminate this agreement without giving any reasons to the otherparty, after giving notice in writing of not less than one month tothe other parties at their respective addresses mentioned below.Notwithstanding any such termination, all rights, liabilities andobligations of the parties arising out of or in respect of transactionsentered into prior to the termination of this agreement shallcontinue to subsist and vest in /be binding on the respectiveparties or his /its respective heirs, executors, administrators,legal representatives or successors, as the case may be.

18. In the event of sub broker terminating this agreement and/ortermination of the agreement with the sub broker by the stockbroker, for any reason whatsoever, the client shall be informedof such termination and the client shall be deemed to be thedirect client of the stock broker and all clauses in the agreementgoverning the client and stock broker shall continue to be in forceas it is, unless the client intimates to the stock broker his/itsintention to terminate the agreement by giving a notice in writingof not less than one month.

19. This agreement shall forthwith terminate;(i) if the stock broker for any reason ceases to be a member ofthe stock exchange including cessation of membership by reasonof the stock broker’s default, death, resignation or expulsion or ifthe certificate issued by the Board is cancelled;(ii) upon the demise/insolvency of the sub-broker or thecancellation of his/its registration with the Board or /withdrawalof recognition of the sub-broker by the stock exchange. Providedhowever, in such an event, the client shall be informed of suchtermination and the client shall be deemed to be the direct clientof the stock broker and all clauses in the agreement governingthe client and stock broker shall continue to be in force as it is,unless the client intimate to the stock broker or the stock brokerintimates to the client his/its intention to terminate the agreementby giving one month notice in writing.


21. In the event of death or insolvency of the client or his/its otherwise

Member: ________________________Sub Broker: ________________________Client:_________________________21

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becoming incapable of receiving and paying for ordelivering or transferring securities which the client hasordered to be bought or sold, stock broker may close outthe transaction of the client and claim losses, if any, againstthe estate of the client. The client or his successors, heirsand assigns shall be entitled to any surplus which mayresult therefrom.

22. Without prejudice to the stock broker’s other rights(including the right to refer a matter to arbitration), thestockbroker shall be entitled to liquidate/closeout all orany of the client’s positions for non-payment of margins orother amounts, outstanding debts, etc. and adjust theproceeds of such liquidation / close out, if any. against theclient’s liabilities/obligations. Any and all losses andfinancial charges on account of such liquidation/closing-out shall be charged to and borne by the client.

23. The stock broker and the client declare and agree that thetransactions executed on the Exchange are subject toRules. Byelaws and Regulations and circulars issuedthereunder of the Exchange and all parties to such tradeshall have submitted to the jurisdiction of such court asmay be specified by the Byelaws and Regulations ofthe Exchange for the purpose of giving effect to theprovisions of the Rules, Byelaws and Regulations of theExchange and the circulars issued thereunder.

24. Where the Exchange cancels trade(s) suo moto all suchtrades including the trade/s done on behalf of the clientshall ipso facto stand cancelled, member shall be entitledto cancel the respective contract(s) with client(s)

25. The instructions issued by an authorizedrepresentative, if any, of the client shall be binding on theclient in accordance with the letter authorizing the saidrepresentative to deal on behalf of the said client.

26. The client agrees to immediately notify the stock broker/sub broker in writing if there is any change in theinformation in the ‘client registration form’ provided bythe client to the stock broker/sub broker at the time ofopening of the account or at anytime thereafter.

27. The client agrees to abide by the exposure limits, if any,set by the stock broker or by the Exchange or ClearingCorporation or SEBI from time to time.

28. In addition to the specific rights set out in this Agreement,the stock broker, the sub-broker and the client shall beentitled to exercise any other rights which the stock broker,sub broker or the client may have under the Rules, Bye-laws and Regulations of the Exchange and circulars issuedthereunder or Rules and Regulations of SEBI.

29. The stock broker and the sub-broker hereby undertaketo maintain the details of the client as mentioned in theclient registration form or any other information pertainingto the client in confidence and that they shall not disclosethe same to any person/authority except as required underany law/regulatory requirements: Provided however thatthe stock broker or sub-broker may so disclose informationabout his client to any person or authority with the expresspermission of the client.

30. The client agrees to immediately furnish information to thestock broker in writing, if any winding up petition orinsolvency petition has been filed or any winding up orinsolvency order or decree or award is passed against himor if any litigation which may have material bearing on hiscapacity has been filed against him.

31. Words and expressions which are used in thisAgreement, but which are not defined herein shall, unlessthe context otherwise requires, have the same meaningas assigned thereto in the Rules, Byelaws and Regulationsof the Exchange and circulars issued thereunder.This agreement can be altered, amended and / or modifiedby the parties mutually in writing without derogating fromthe contents of this agreement. Provided however, if therights and obligations of the parties hereto are altered byvirtue of change in rules and regulations of SEBI or bye-laws, rules and regulations of the relevant stock exchange,such changes, shall be deemed to have been incorporatedherein in modification of the rights and obligations of theparties mentioned in this agreement.

IN WITNESS THEREOF the parties to the Agreement have caused these presents to be executed as of the day and year firstabove written.

Note: All references to the specific quantity/rate/fee mentioned in this agreement are subject to change from time to time,as so agreed to in writing between the parties.

Member:Full name, details of Membershipof the stock exchange & address

Sub-Broker:Full name, details of recognition

of the stock exchange and address

Client:Full details and address

B.N.RATHI SECURITIES LIMITEDMember: National Stock Exchange of India LtdRegd. Off: 6-3-652, “Kautilya”4th Floor, Amrutha Estate,Somajiguda, Hyderabad – 500082


SEBI Regn. No: CM:. INB 230714134 F&O INF 230714134 CD INE 230714134

Witness 1 : _______________________________________ Witness 1 : _____________________________________

Name : ________________________________________ Name : _____________________________________

Address : _____________________________________

____________________________________

Witness 2 ________________________________________ Witness 2 : ____________________________________

Name : _________________________________________ Name :____________________________________

Address :____________________________________

____________________________________Address : 6-3-652, “Kautilya”, 4th Floor, Amrutha Estate,

Somajiguda, Hyd – 82


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This document is issued by the member of the National Stock Exchangeof India (hereinafter referred to as “NSE”) / The Stock Exchange,Mumbai (hereinafter referred to as “BSE”) which has been formulatedby the Exchanges in coordination with the Securities and ExchangeBoard of India (hereinafter referred to as “SEBI”) and contains importantinformation on trading in Equities and F&O Segments of NSE/BSE. Allprospective constituents should read this document before trading onCapital Market/Cash Segment or F&O segment of the Exchanges.NSE/BSE/SEBI does neither singly or jointly and expressly nor impliedlyguarantee nor make any representation concerning the completeness,the adequancy or accuracy of this disclosure document nor has NSE/BSE/SEBI endorsed or passed any merits of participating in the tradingsegments. This brief statement does not disclose all the risks and othersignificant aspects of trading. In the light of the risks involved, youshould undertake transactions only if you understand the nature of thecontractual relationship into which you are entering and the extent ofyour exposure to risk.You must know and appreciate that investment in Equity shares,derivative or other instruments traded on the Stock Exchange (s), whichhave varying element of risk, is generally not an appropriate avenuefor someone of limited resources/limited investment and/or tradingexperience and low risk tolerance. You should therefore carefullyconsider whether such trading is suitable for you in the light of yourfinancial condition. In case you trade on NSE/BSE and suffer adverseconsequences or loss, you shall be solely responsible for the sameand NSE/BSE, its Clearing Corporation/Clearing House and/or SEBIshall not be responsible, in any manner whatsoever, for the same andit will not be open for you to take a plea that no adequate disclosureregarding the risks involved was made or that you were not explainedthe full risk involved by the concerned member. The constituent shallbe solely responsible for the consequences and no contract can berescinded on that account. You must acknowledge and accept thatthere can be no guarantee of profits or no exception from losses whileexecuting orders for purchase and/or sale of a security or derivativebeing traded on NSE/BSE.It must be clearly understood by you that your dealings on NSE/BSEthrough a member shall be subject to your fulfilling certain formalitiesset out by the member, which may interalia include your filling theknow your client form, client registration form, execution of anagreement, etc., and are subject to the Rules, Byelaws and Regulationsof NSE/BSE and its Clearing Corporation, guidelines prescribed bySEBI and in force from time to time and Circulars as may be issued byNSE/BSE or its Clearing Corporation/Clearing House and in force fromtime to time.NSE/BSE does not provide or purport to provide any advice and shallnot be liable to any person who enters into any business relationshipwith any trading member and/or sub-broker of NSE/BSE and/or anythird party based on any information contained in this document. Anyinformation contained in this document must not be construed asbusiness advice/investment advice. No consideration to trade shouldbe made without thoroughly understanding and reviewing the risksinvolved in such trading. If you are unsure, you must seek professionaladvice on the same.In considering whether to trade or authorise someone to trade for you,you should be aware of or must get acquainted with the following :-I. BASIC RISKS INVOLVED IN TRADING ON THE STOCKEXCHANGE (EQUITY AND OTHER INSTRUMENTS)1.1 Risk of Higher Volatility:

Volatility refers to the dynamic changes in price that securitiesundergo when trading activity continues on the Stock Exchange.Generally, higher the volatility of a security/contract, greater isits price swings, There may be normally greater volatility in thinlytraded securities/contracts than in active securities/contracts. Asa result of volatility, your order may only be partially executed ornot executed at all, or the price at which your order got executedmay be substantially different from the last traded price or changesubstantially thereafter, resulting in notional or real losses.

1.2. Risk of Lower Liquidity:Liquidity refers to the ability of market participants to buy and/orsell securities / contracts expeditiously at a competitive price andwith minimal price difference. Generally, it is assumed that morethe numbers of orders available in a market, greater is the liquidity.Liquidity is important because with greater liquidity, it is easierfor investors to buy and/or sell securities / contracts swiftly and

with minimal price difference, and as a result, investors are morelikely to pay or receive a competitive price for securities / contractspurchased or sold. There may be a risk of lower liquidity in somesecurities /contracts as compared to active securities / contracts.As a result, your order may only be partially executed, or may beexecuted with relatively greater price difference or may not beexecuted at all.1.2.1 Buying/selling without intention of giving and/or taking

delivery of a security as part of a day trading strategy,may also result into losses, because in such a situation,stocks may have to be sold/purchased at a low/highprices, compared to the expected price levels, so as notto have any obligation to deliver/receive a security.

1.3 Risk of Wider Spreads:Spread refers to the difference in best buy price and best sellprice. It represents the differential between the price of buying asecurity and immediately selling it or vice versa. Lower liquidityand higher volatility may result in wider than normal spreads forless liquid or illiquid securities / contracts. This in turn will hamperbetter price formation.

1.4 Risk-reducing orders:Most Exchanges have a facility for investors to place “limit orders”,“stop loss orders” etc. The placing of such orders (e.g,,”stop loss”order ,or “limit” orders) which are intended to limit losses tocertain amounts may not be effective many a time becauserapid movement in market conditions may make it impossibleto execute such orders.1.4.1 A “market” order will be executed promptly, subject

to availability of orders on opposite side, without regardto price and that, while the customer may receive aprompt execution of a “market” order, the execution maybe at available prices of outstanding orders, which satisfythe order quantity, on price time priority. It may beunderstood that these prices may be significantlydifferent from the last traded price or the best price inthat security.

1.4.2 A “limit” order will be executed only at the “limit” pricespecified for the order or a better price. However,while the customer receives price protection, there is apossibility that the order may not be executed at all.

1.4.3 A stop loss order is generally placed “away” from thecurrent price of a stock/contract, and such order getsactivated if and when the stock / contract reaches, ortrades through, the stop price. Sell stop orders areentered ordinarily below the current price, and buy stoporders are entered ordinarily above the current price.When the stock reaches the pre-determined price, ortrades through such price, the stop loss order convertsto a market/limit order and is executed at the limit orbetter. There is no assurance therefore that the limitorder, will be executable since a stock / contract mightpenetrate the pre-determined price, in which case,the risk of such order not getting executed arises, justas with a regular limit order.

1.5 Risk of New Announcements:Issuers make news announcements that may impact the priceof the securities / contracts. These announcements may occurduring trading, and when combined with lower liquidity and highervolatility, may suddenly cause an unexpected positive or negativemovement in the price of the security/ contract.

1.6 Risk of Rumours:Rumours about companies at times float in the market throughword of mouth, newspapers, websites or news agencies, etc.The investors should be wary of and should desist from actingon rumours.

1.7 System Risk:High volume trading will frequently occur at the market openingand before market close. Such high volumes may also occur atany point in the day. These may cause delays in order executionor confirmation.1.7.1 During periods of volatility, on account of market

participants continuously modifying their order quantityor prices or placing fresh orders, there may be delays inorder execution and its confirmations.

(xii) COMBINED RISK DISCLOSURE DOCUMENT FOR CAPITAL MARKETFUTURES & OPTIONS AND CURRENCY DERIVATIVE SEGMENT (NSE / BSE)

Client:_________________________23

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1.7.2 Under certain market conditions, it may be difficult orimpossible to liquidate, a position in the market at areasonable price or at all, when there are nooutstanding orders either on the buy side or the sellside, or if trading is halted in a security due to any actionon account of unusual trading activity or stock hittingcircuit filters or for any other reason.

1.8 System / Network Congestion:Trading on NSE/BSE is in electronic mode, based on satellite/leased line based communications, combination of technologiesand computer systems to place and route orders. Thus, thereexists a possibility of communication failure or system problemsor slow or delayed response from system or trading halt, or anysuch other problem/glitch whereby not being able to establishaccess to the trading system/network, which may be beyond thecontrol of and may result in delay in processing or not processingbuy or sell orders either in part or in full. You are cautioned tonote that although these problems may be temporary in nature,but when you have outstanding open positions or unexecutedorder, these represent a risk because of your obligations to settleall executed transactions.

2. As far as Futures and Options segment is concerned, pleasenote and get yourself acquainted with the followingadditional features:-2.1 Effect of “Leverage” or “Gearing”

The amount of margin is small relative to the value of thederivatives contract so the transactions are ‘leveraged’ or‘geared’. Derivatives trading, which is conducted with arelatively small amount of margin, provides the possibility ofgreat profit or loss in comparison with the principal investmentamount. But transactions in derivatives carry a high degreeof risk. You should therefore completely understand thefollowing statements before actually trading in derivativestrading and also trade with caution while taking into accountone’s circumstances, financial resources, etc. If the pricesmove against you, you may lose a part of or whole marginequivalent to the principal investment amount in a relativelyshort period of time. Moreover, the loss may exceed theoriginal margin amount.A. Futures trading involves daily settlement of all positions.

Every day the open positions are marked to marketbased on the closing level of the index. lf the index hasmoved against you, you will be required to deposit theamount of loss (notional) resulting from such movement.This margin will have to be paid within a stipulated timeframe, generally before commencement of tradingnext day.

B. If you fail to deposit the additional margin by the deadlineor if an outstanding debt occurs in your account, thebroker/member may liquidate a part of or the wholeposition or substitute securities. In this case, you will beliable for any losses incurred due to such close-outs.

C. Under certain market conditions, an investor may find itdifficult or impossible to execute transactions, Forexample, this situation can occur due to factors suchas illiquidity i.e. when there are insufficient bids or offersor suspension of trading due to price limit or circuitbreakers etc.

D. In order to maintain market stability, the followingsteps may be adopted: changes in the margin rate,increases in the cash margin rate or others. These newmeasures may also be applied to the existing openinterests. In such conditions, you will be required to putup additional margins or reduce your positions.

E. You must ask your broker to provide the full details ofthe derivatives contracts you plan to trade i.e. thecontract specifications and the associated obligations.

2.2. Risk of Option holders1. An option holder runs the risk of losing the entire amount

paid for the option in a relatively short period of time. Thisrisk reflects the nature of an option as a wasting asset

which becomes worthless when it expires. An option holderwho neither sells his option in the secondary market norexercises it prior to its expiration will necessarily losehis entire investment in the option. If the price of theunderlying does not change in the anticipated directionbefore the option expires to an extent sufficient to coverthe cost of the option, the investor may lose all or asignificant part of his investment in the option.

2. The exchange may impose exercise restrictions and haveabsolute authority to restrict the exercise of options atcertain times in specified circumstances.

2.3 Risks of Option Writers 1. If the price movement of the underlying is not in the

anticipated direction, the option writer runs the risks oflosing substantial amount.

2. The risk of being an option writer may be reduced by thepurchase of other options on the same underling interestand thereby assuming a spread position or by acquiringother types of heading positions in the options markets orother markets. However, even where the writer hasassumed a spread or other hedging position, the risks maystill be significant. A spread position is not necessarily lessrisky than a simple ‘long’ or ‘short’ position.

3. Transactions that involve buying and writing multipleoptions in combination, or buying or writing options incombination with buying or selling short the underlyinginterests, present additional risks to investors.Combination transactions, such as option spreads, aremore complex than buying or writing a single option. Andit should be further noted that, as in any area of investing,a complexity not well understood is, in itself, a risk factor.While this is not to suggest that combination strategiesshould not be considered, it is advisable, is the case withall investment in options, to consult with someone who isexperienced and knowledge with respect to the risks andpotential rewards of combination transactions undervarious market circumstances.

3. GENERAL3.1 Commission and other charges Before you begin to trade,

you should obtain a clear explanation of all commission,fees and other charges for which you will be liable. Thesecharges will affect your net profit (if any) or increase yourloss.

3.2 Deposited cash and property You should familiariseyourself with the protections accorded to the money orother property you deposit particularly in the event of afirm insolvency or bankruptcy. The extent to which youmay recover your money or property may be governed byspecific legislation or local rules. In some jurisdictions,property which has been specifically identifiable as yourown will be pro-rated in the same manner as cash forpurpose of distribution in the event of a shortfall. In caseof any dispute with the member, the same shall be subjectto arbitration as per the byelaws/regulations of theExchange.

3.3 For rights and obligations of the clients, please refer toAnnexure-l enclosed with this document.

3.4 The term ‘constituent’ shall mean and include a client, acustomer or an investor, who deals with a member for thepurpose of acquiring and/or selling of the securities throughthe mechanism provided by NSE/BSE.

3.5 The term ‘member’ shall mean and include a tradingmember, a broker or a stock broker, who has been admittedas such by NSE/BSE and who holds a registrationcertificate as a stock broker from SEBI. I herebyacknowledge that I have received and understood thisrisk disclosure statement and appendix-1 containing myrights and obligations.

3.6 The Trading member is doing proprietary (Pro) tradingapart from clients trading in all stock exchanges i.e. NSEBSE

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I here by acknowledge that l have received and undersigned this risk disclosure statement and Annexure-l containing my rights and obligations.

CustomerSignatureDate ______________________(lf partner, Corporate, or other Signatory, then attest with company seal.)

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1.1 You should familiarise yourself with the protection accorded tothe money or other property you may deposit with your member,particularly in the event of a default in the stock market or thebroking firm’s insolvency or bankruptcy.1.1.1 Please ensure that you have a documentary proof of

your having made deposit of such money or propertywith the member, stating towards which account suchmoney or property deposited.

1.1.2 Further, it may be noted that the extent to which youmay recover such money or property may be governedby the Bye-laws and Regulations of NSE/BSE and thescheme of the Investor’s Protection Fund in force fromtime to time.

1.1.3 Any dispute with the member with respect to deposits,margin money, etc., and producing an appropriate proofthereof, shall be subject to arbitration as per the Rules,Byelaws/Regulations of NSE /BSE or its ClearingCorporation / Clearing House.

1.2 Before you begin to trade, you should obtain a clear idea fromyour member of all brokerage, commissions, fees and othercharges which will be levied on you for trading. These chargeswill affect your net cash inflow or outflow.

1.3 You should exercise due diligence and comply with the followingrequirements of the NSE/BSE and/or SEBI:1.3.1 Please deal only with and through SEBI registered

members of the Stock Exchange and are enabled totrade on the Exchange. All SEBI registered membersare given a registration No., which may be verified fromSEBI. The details of all members of NSE/BSE andwhether they are enabled to trade may be verified fromNSE/BSE website (www.nseindia.com /www.bseindia.com)

1.3.2. Demand any such information, details and documentsfrom the member, for the purpose of verification, asyou may find it necessary to satisfy yourself about hiscredentials.

1.3.3. Furnish all such details in full as are required by themember as required in “Known Your Client” form, whichmay also include include details of PAN or Passport orDriving License or Voters Id, or Ration Card, bankaccount and depository account, or any such detailsmade mandatory by SEBI/NSE at any time, as isavailable with the investor.

1.3.4. Execute a broker-client agreement in the formprescribed by SEBI and/or the Relevant Authority ofNSE or its Clearing Corporation / Clearing House fromto time to time, because this may be useful as a proofof your dealing arrangements with the member.

1.3.5. Give any order for buy or sell of a security in writing orin such formor manner. as may be mutually agreed.Giving instructions in writing ensures that you haveproof of your intent, in case of disputes with the member.

1.3.6. Ensure that a contract note is issued to you by themember which contains minute records of everytransaction. Verify that the contract note containsdetails of order no., trade number, trade time,trade price, trade quantity, name of security, clientcode allotted to you and showing the brokerageseparately. Contract notes are required to be given/sent by member to the investors latest on the nextworking day of the trade. Contract note can be issuedby the member either in electronic form using digitalsignature as required, or in hard copy. In case you donot receive a contract note on the next working day orat a mutually agreed time, please get in touch with theInvestors Grievance Cell of NSE/BSE, without delaying.

1.3.7. Facility of Trade Verification is available on NSE/BSEwebsite (www.nseindia. com / www.bseindia.com),where details of trade as mentioned in the contractnote may be verified from the trade date upto fivetrading days. Where trade details on the website, do

not tally with the details mentioned in the contract note,immediately get in touch with the Investors GrievanceCell of NSE/BSE.

1.3.8 Ensure that payment/delivery of securities againstsettlement is given to the concerned member withinone working day prior to the date of pay-in announcedby NSE/BSE or it’s Clearing Corporation / clearingHouse. Payments should be made only by accountpayee cheque in favour of the firm/company of thetrading member and a receipt or acknowledgmenttowards what such payment is made be obtainedfrom the member. Delivery of securities is made tothe pool account of the member rather than to thebeneficiary account of the member.

1.3.9 In case pay-out of money and/or securities is notreceived on the next working day after day after dateof pay-out announced by NSE/BSE or its ClearingCorporation / Clearing House, please follow-up with theconcerned member for its release. In case pay-out isnot released as above from the member withinfive working days, ensure that you lodge acomplaint immediately with the Investor’s GrievanceCell of NSE/BSE.

1.3.10. Every member is required to send a complete ‘Statementof Accounts’, for both funds and securities settlementto each of its constituents, at such periodicity as maybe prescribed by time to time. You should report errors,if any, in the Statement immediately, but not later than30 calender days of receipt thereof, to the member. Incase the error is not rectified or there is a dispute,ensure that you refer such matter to the InvestorsGrievance Cell of NSE/BSE, without delaying.

1.3.1 I. In case of a complaint against a member/registered sub-broker, you should address the complaint to the Officeas may be specified by NSE/BSE from time to time.

1.4 In case where a member surrenders his membership, NSE/BSEgives a public notice inviting claims, if any, from investors. Incase of a claim, relating to “transactions executed on thetrading system” of NSE/BSE, ensure that you lodge aclaim with NSE/BSE/NSCCL/Clearing House within thestipulated period and with the supporting documents.

1.5 In case where a member is expelled member from tradingmembership or declared a defaulter, NSE/BSE gives a publicnotice inviting claims, if any, from investors, In case of a claim,relating to “transactions executed on the trading system” of NSE/BSE, ensure that you lodge a claim with NSE/BSE within thestipulated period and with the supporting documents.

1.6 Claims against a defaulter/expelled member found to be validas prescribed in the relevant Rules/Bye-laws and the schemeunder the Investors’ Protection Fund (IPF) may be payable firstout of the amount vested in the Committee for Settlement ofClaims against Defaulters, on pro-rata basis if the amountis inadequate. The balance amount of claims, if any, to amaximum amount of Rs. 10 lakhs per investor claim, perdefaulter/ expelled member may be payable subject to suchclaims being found payable under the scheme of IPF.

Notes:1. The term ‘constituent’ shall mean and include a client, a customer

or an investor, who deals with a trading member of NSE/BSEfor the purpose of acquiring and / or selling of securities throughthe mechanism provided by NSE/BSE.

2. The term ‘member’ shall mean and include a member or a brokeror a stock broker, who has been admitted as such by NSE/BSE and who holds a registration certificate as a stockbroker from SEBI.

3. NSE/BSE may be substituted with names of the relevantexchanges, wherever applicable.

ANNEXURE - I(xiii) INVESTOR’S RIGHTS AND OBLIGATIONS

25Client:_________________________

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2. The trading member declares that it has brought the contentsof the risk disclosure document to the notice of client and madehim aware of the significance of the said document. The clientagrees that:a. He has read and understood the risks involved in trading on

a stock exchange.b. He shall be wholly responsible for all his decisions and

trades.c. The failure of the client to understand the risks involved

shall not render a contract as void or voidable and the clientshall be and shall continue to be responsible for all the risksand consequences for entering into trades in the segments.

d. He is liable to pay applicable initial margins, withholdingmargins, special margins or such other margins as areconsidered necessary by the trading member or theExchange or as may be directed by SEBI from time totime as applicable to the segment(s). The trading memberis permitted in its sole and absolute discretion to collectadditional margins (even though not required by theExchange, Clearing House / Clearing Corporation or SEBI)and the client shall be obliged to pay such margins withinthe stipulated time.

e. Payment of margins by the client does not necessarily implycomplete satisfaction of all dues. In spite of consistentlyhaving paid margins, the client may, on the closing of itstrade, be obliged to pay (or entitled to receive) such furthersums as the contract may dictate/require.

3. The Client agrees to pay to the trading member brokerage andstatutory levies as are prevailing from time to time and as theyapply to the Client’s account, transactions and to the servicesthat trading member renders to the Client.

4. The trading member agrees that it shall not charge brokeragemore than the maximum brokerage permissible as per therules, regulations and bye-laws of the relevant stock exchange/SEBI.

5. The client agrees to abide by the exposure limits, if any, set bythe trading member or by the Exchange or Clearing House orClearing Corporation or SEBI from time to time.

6. Without prejudice to the trading member’s other rights (includingthe right to refer a matter to arbitration), the trading membershall be entitled to liquidate / close out all or any of the client’spositions for non-payment of margins or other amounts,outstanding debts, etc. and adjust the proceeds of suchliquidation/close out, if any, against the client’s liabilities /obligations. Any and all losses and financial charges onaccount of such liquidation/closing-out shall be charged to andborne by the client.

7. The trading member agrees that the money/securities depositedby the client shall be kept in a separate account, distinct fromhis / its own account or account of any other client and shall notbe used by the trading member for himself/ itself or for any otherclient or for any purpose other than the purposes mentioned inSEBI Rules and Regulations circulars / guidelines / Exchange’sRules/ Regulations/ Byelaws and circulars.

8. The client agrees to immediately furnish information to thetrading member in writing , if any winding up petition or insolvencypetition has been filed or any winding up or insolvency order ordecree or award is passed against him or if any litigation whichmay have material bearing on his capacity has been filed againsthim.

9. The trading member agrees to inform the client and keep himapprised about trading / settlement cycles, delivery/ paymentschedules, any changes therein from time to time, and it shallbe the responsibility in turn of the client to comply with suchschedules/procedures of the exchange.

(xiv) MEMBER AND CONSTITUENT AGREEMENT (MCX-SX CURRENCY DERIVATIVE SEGMENT)

This Agreement is made and executed at Hyderabad this ________day of___________ between M/s B.N. RATHI SECURITIES LIMITEDa body corporate, incorporated under the provisions of the CompaniesAct, 1956, being a member of the MCX Stock Exchange Ltd.(hereinafter called “the Exchange”), and having its Registered officeat 6-3-652, “Kautilya”, 4th Floor, Amritha Estates, Somajuguda,Hyderabad - 500082 (herein after called “the Trading Member”) whichexpression shall, unless repugnant to the context or meaning thereof,be deemed to mean and include itself in the capacity of a tradingmember while trading in the derivatives segment, it/his/her heirs,executors, administrators and legal representatives/the partners forthe time being of the said firm, the survivor or survivors of them andtheir respective heirs, executors, administrators and legalrepresentatives/its successors, as the case may be, of the One Part

ANDMr./Ms./M/s. _________________________________________________________________________________________________ anindividual/a sole proprietary concern/a partnership firm/ a bodycorporate, registered/ incorporated, under the provisions of the IndianPartnership Act, 1932 / the Companies Act, 1956, having its/his/herresidence / registered office at ____________________________________________________________________________________________________________________________________________________________________ (hereinafter called “the Client”) which expressionshall, unless repugnant to the context or meaning thereof, deemed tomean and include his/her heirs, executors, administrators and legalrepresentatives/the partners for the time being of the said firm, thesurvivor or survivors of them and their respective heirs, executors,administrators and legal representatives/its successors, as the casemay be, of the Other Part;Whereas the trading member is registered as the trading member ofthe Exchange with SEBI registration number INE 260714138 in theCurrency Derivatives Segment.A. Whereas the client is desirous of investing/ trading in those

securities / contracts / other instruments admitted to dealingson the Exchange as defined in the Rules, Byelaws andRegulations of the Exchange and circulars issued there underfrom time to time.

B. Whereas the client has satisfied itself of the capacity of thetrading member to deal in securities and / or deal in equity /currency derivatives contracts and wishes to execute its ordersthrough the trading member and the client shall from time totime continue to satisfy itself of such capability of the tradingmember before executing orders through the trading member.

C. Whereas the trading member has satisfied and shallcontinuously satisfy itself about the genuineness and financialsoundness of the client and investment objectives relevant tothe services to be provided; and

D. Whereas the trading member has taken steps and shall takesteps to make the client aware of the precise nature of the tradingmember’s liability for business to be conducted, including anylimitations, the liability and the capacity in which the tradingmember acts.

E. Whereas the trading member and the client agree to be boundby all the Rules, Byelaws and Regulations of the Exchange andcirculars issued there under and Rules and Regulations ofSEBI and relevant notifications of Government authorities asmay be in force from time to time.Now, therefore, in consideration of the mutual understandingas set forth in this agreement, the parties thereto have agreedto the following terms and conditions:

1. The client agrees to immediately notify the trading member inwriting if there is any change in the information in the ‘clientregistration form’ provided by the client to the trading memberat the time of opening of the account or at any time thereafter.

Client:_________________________

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10. In the event of death or insolvency of the client or his/ itsotherwise becoming incapable of receiving and paying for anycontracts which the client has ordered to be bought or sold, orof delivering or transferring securities, the trading member mayclose out the transaction of the client and claim losses, if any,against the estate of the client. The client or his successors,heirs and assigns shall be entitled to any surplus which mayresult there from.

1.1. The client and the trading member agree to refer any claimsand / or disputes to arbitration as per the Rules, Byelaws andRegulations of the Exchange and circulars issued there underas may be in force from time to time.

12. The trading member hereby agrees that he shall ensure fastersettlement of any arbitration proceedings arising out of thetransactions entered into between him and the client and thathe shall be liable to implement the arbitration awards made insuch proceedings.

13. Information about default in payment / delivery and relatedaspects by a client shall be brought to the notice of the relevantstock Exchange(s). In case where defaulting client is acorporate entity / partnership / proprietary firm or any otherartificial legal entity, then the name(s) of director(s) / promoter(s)/ Partner(s) / proprietor as the case may be, shall alsobe communicated to the Exchange(s).

14. The trading member and the client agree to reconcile theiraccounts at the end of each quarter with reference to all thesettlements where payouts have been declared during thequarter.

15. The trading member and the client agree to abide by any awardpassed by the Ombudsman under the SEBI (Ombudsman)Regulations, 2003.

16. The trading member and the client declare and agree that thetransactions executed on the Exchange are subject to Rules,Byelaws and Regulations and circulars issued there under ofthe Exchange and all parties to such trade shall have submittedto the jurisdiction of such court as may be specified by theByelaws and Regulations of the Exchange for the purpose ofgiving effect to the provisions of the Rules, Byelaws andRegulations of the Exchange and the circulars issuedthereunder.

17. The instructions issued by an authorized representative, if any,of the client shall be binding on the client in accordance with theletter authorizing the said representative to deal on behalf ofthe said client.

18. Where the Exchange cancels trade(s) suo moto all such tradesincluding the trade/s done on behalf of the client shall ipso factostand cancelled.

19. This agreement shall forthwith terminate; if the trading memberfor any reason ceases to be a member of the stock exchangeincluding cessation of membership by reason of the tradingmember’s default, death, resignation or expulsion or if thecertificate issued by the Board is cancelled.

20. The trading member and the client shall be entitled to terminatethis agreement without giving any reasons to the other party,after giving notice in writing of not less than one month to

the other parties. Notwithstanding any such termination, allrights, liabilities and obligations of the parties arising out of or inrespect of transactions entered into prior to the termination ofthis agreement shall continue to subsist and vest in / be bindingon the respective parties or his/its respective heirs, executors,administrators, legal representatives or successors, as the casemay be.

21. In addition to the specific rights set out in this Agreement,the trading member and the client shall be entitled to exerciseany other rights which the trading member or the client mayhave under the Rules, Bye-laws and Regulations of theExchange and circulars issued there under or Rules andRegulations of SEBI.

22. Words and expressions which are used in this Agreement,but which are not defined herein shall, unless the contextotherwise requires, have the same meaning as assigned theretoin the Rules, Byelaws and Regulations of the Exchange andcirculars issued there under.


24. The trading member hereby undertakes to maintain the detailsof the client as mentioned in the client registration form or anyother information pertaining to the client in confidence and thatit shall not disclose the same to any person / authority exceptas required under any law / regulatory requirements; Providedhowever that the trading member may so disclose informationabout its his client to any person or authority with the expresspermission of the client.

25. The client agree that all payments due to the member broker willbe made within the specified time and in the event of any delay,the member broker may refuse, at their discretion, to carry outtransactions on behalf of the client. The client agree thatalternatively, the member broker may, at their sole discretion,square off such transactions and the costs/losses if any, thereofshall be borne solely and completely by the client.

26. Prevention of Money Laundering : In terms of the Prevention ofMoney Laundering Act 15th, 2003, the Rules issued there underand the guidelines /circulars issued by SEBI regarding the AntiMoney Laundering (AML Laws), all SEBI registeredintermediaries are required to formulate and implement a clientidentification programme, verify and maintain the record ofidentity and address(s) of the Client and will be required toproduce prescribed documents as may be notified from time totime in order to comply with KYC norms.This agreement can be altered, amended and /or modified bythe parties mutually in writing without derogating from thecontents of this Agreement.Provided however, if the rights andobligations of the parties hereto are altered by virtue of changein Rules and regulations of SEBI or Bye-laws, Rules andRegulations of the relevant stock Exchange, such changes shallbe deemed to have been incorporated herein in modification ofthe rights and obligations of the parties mentioned in thisagreement.





By :

Signature :

Title :

Witness 1 : _______________________________________ Witness 1 : _____________________________________

Name : ________________________________________ Name : _____________________________________

Address : _____________________________________

____________________________________

Witness 2 ________________________________________ Witness 2 : ____________________________________

Name : _________________________________________ Name :____________________________________

Address :____________________________________

____________________________________

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This document is issued by the member of the MCX Stock ExchangeLtd. (hereinafter referred to as “MCX-SX”) which has been formulatedby the Exchanges in coordination with the Securities and ExchangeBoard of India (hereinafter referred to as “SEBI”) and contains importantinformation on trading in Currency Derivatives Segments of MCX-SX.All prospective constituents should read this document before tradingon Currency Derivatives Segment of the Exchange. MCX-SX/SEBIdoes neither singly or jointly and expressly nor impliedly guaranteenor make any representation concerning the completeness, theadequancy or accuracy of this disclosure document nor has MCX-SX/SEBI endorsed or passed any merits of participating in the tradingsegments. This brief statement does not disclose all the risks andother significant aspects of trading. In the light of the risks involved,you should undertake transactions only if you understand the natureof the contractual relationship into which you are entering and theextent of your exposure to risk.You must know and appreciate that investment in Equity shares,derivative or other instruments traded on the Stock Exchange (s), whichhave varying element of risk, is generally not an appropriate avenuefor someone of limited resources/limited investment and/or tradingexperience and low risk tolerance. You should therefore carefullyconsider whether such trading is suitable for you in the light of yourfinancial condition. In case you trade on MCX-SX and suffer adverseconsequences or loss, you shall be solely responsible for the sameand MCX-SX, its Clearing Corporation/Clearing House and/or SEBIshall not be responsible, in any manner whatsoever, for the same andit will not be open for you to take a plea that no adequate disclosureregarding the risks involved was made or that you were not explainedthe full risk involved by the concerned member. The constituent shallbe solely responsible for the consequences and no contract can berescinded on that account. You must acknowledge and accept thatthere can be no guarantee of profits or no exception from losses whileexecuting orders for purchase and/or sale of a security or derivativebeing traded on MCX-SX.It must be clearly understood by you that your dealings on MCX-SXthrough a member shall be subject to your fulfilling certain formalitiesset out by the member, which may interalia include your filling theknow your client form, client registration form, execution of anagreement, etc., and are subject to the Rules, Byelaws and Regulationsof MCX-SX and its Clearing Corporation, guidelines prescribed by SEBIand in force from time to time and Circulars as may be issued byMCX-SX or its Clearing Corporation/Clearing House and in force fromtime to time.MCX-SX does not provide or purport to provide any advice and shallnot be liable to any person who enters into any business relationshipwith any trading member and/or sub-broker of MCX-SX and/or anythird party based on any information contained in this document. Anyinformation contained in this document must not be construed asbusiness advice/investment advice. No consideration to trade shouldbe made without thoroughly understanding and reviewing the risksinvolved in such trading. If you are unsure, you must seek professionaladvice on the same.In considering whether to trade or authorise someone to trade for you,you should be aware of or must get acquainted with the following :-I. BASIC RISKS INVOLVED IN TRADING ON THE STOCK

EXCHANGE (EQUITY AND OTHER INSTRUMENTS)1.1 Risk of Higher Volatility:

Volatility refers to the dynamic changes in price that securitiesundergo when trading activity continues on the StockExchange. Generally, higher the volatility of a security/contract, greater is its price swings, There may be normallygreater volatility in thinly traded securities/contracts than inactive securities/contracts. As a result of volatility, your ordermay only be partially executed or not executed at all, or theprice at which your order got executed may be substantiallydifferent from the last traded price or change substantiallythereafter, resulting in notional or real losses.

1.2. Risk of Lower Liquidity:Liquidity refers to the ability of market participants to buyand/or sell securities / contracts expeditiously at a competitiveprice and with minimal price difference. Generally, it isassumed that more the numbers of orders available in amarket, greater is the liquidity. Liquidity is important becausewith greater liquidity, it is easier for investors to buy and/orsell securities / contracts swiftly and with minimal price

difference, and as a result, investors are more likely to payor receive a competitive price for securities / contractspurchased or sold. There may be a risk of lower liquidity insome securities /contracts as compared to active securities/ contracts. As a result, your order may only be partiallyexecuted, or may be executed with relatively greater pricedifference or may not be executed at all.1.2.1 Buying/selling without intention of giving and/or taking

delivery of a security as part of a day trading strategy,may also result into losses, because in such a situation,stocks may have to be sold/purchased at a low/highprices, compared to the expected price levels, so asnot to have any obligation to deliver/receive a security.

1.3 Risk of Wider Spreads:Spread refers to the difference in best buy price and best sellprice. It represents the differential between the price of buying asecurity and immediately selling it or vice versa. Lower liquidityand higher volatility may result in wider than normal spreads forless liquid or illiquid securities / contracts. This in turn will hamperbetter price formation.

1.4 Risk-reducing orders:Most Exchanges have a facility for investors to place “limit orders”,“stop loss orders” etc. The placing of such orders (e.g.,”stop loss”order ,or “limit” orders) which are intended to limit losses tocertain amounts may not be effective many a time becauserapid movement in market conditions may make it impossibleto execute such orders.1.4.1 A “market” order will be executed promptly,

subject to 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 maybe significantly different from the last traded price orthe best price in that security.

1.4.2 A “limit” order will be executed only at the “limit” pricespecified for the order or a better price. However,while the customer receives price protection, there isa possibility that the order may not be executed at all.

1.4.3 A stop loss order is generally placed “away” from thecurrent price of a stock/contract, and such order getsactivated if and when the stock / contract reaches, ortrades through, the stop price. Sell stop orders areentered ordinarily below the current price, and buy stoporders are entered ordinarily above the current price.When the stock reaches the pre-determined price, ortrades through such price, the stop loss order convertsto a market/limit order and is executed at the limit orbetter. There is no assurance therefore that the limitorder, will be executable since a stock / contract mightpenetrate the pre- determined price, in which case,the risk of such order not getting executed arises, justas with a regular limit order.

1.5 Risk of New Announcements:Issuers make news announcements that may impact the priceof the securities / contracts. These announcements may occurduring trading, and when combined with lower liquidity and highervolatility, may suddenly cause an unexpected positive or negativemovement in the price of the security/ contract.

1.6 Risk of Rumours:Rumours about companies at times float in the market throughword of mouth, newspapers, websites or news agencies, etc.The investors should be wary of and should desist from actingon rumours.

1.7 System Risk:High volume trading will frequently occur at the market openingand before market close. Such high volumes may also occur atany point in the day. These may cause delays in order executionor confirmation.1.7.1 During periods of volatility, on account of market

participants continuously modifying their order quantityor prices or placing fresh orders, there may be delaysin order execution and its confirmations.

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(xv) RISK DISCLOSURE DOCUMENT FOR MCX-SX CURRENCY DERIVATIVES SEGMENT

31

1.7.2 Under certain market conditions, it may be difficult orimpossible to liquidate, a position in the market at areasonable price or at all, when there are nooutstanding orders either on the buy side or the sellside, or if trading is halted in a security due to anyaction on account of unusual trading activity or stockhitting circuit filters or for any other reason.

1.8 System/Network Congestion:Trading on MCX-SX is in electronic mode, based on satellite/leased line based communications, combination of technologiesand computer systems to place and route orders. Thus, thereexists a possibility of communication failure or system problemsor slow or delayed response from system or trading halt, or anysuch other problem/glitch whereby not being able to establishaccess to the trading system/network, which may be beyond thecontrol of and may result in delay in processing or not processingbuy or sell orders either in part or in full. You are cautioned tonote that although these problems may be temporary in nature,but when you have outstanding open positions or unexecutedorder, these represent a risk because of your obligations to settleall executed transactions.

2. As far as Futures and Options segment is concerned, pleasenote and get yourself acquainted with the followingadditional features:-2.1 Effect of “Leverage” or “Gearing”The amount of margin is small relative to the value of thederivatives contract so the transactions are ‘leveraged’ or ‘geared’.Derivatives trading, which is conducted with a relatively smallamount of margin, provides the possibility of great profit or lossin comparison with the principal investment amount. Buttransactions in derivatives carry a high degree of risk. You shouldtherefore completely understand the following statements beforeactually trading in derivatives trading and also trade with cautionwhile taking into account one’s circumstances, financialresources, etc. If the prices move against you, you may lose apart of or whole margin equivalent to the principal investmentamount in a relatively short period of time. Morever, the lossmay exceed the original margin amount.A. Futures trading involves daily settlement of all positions. Every

day the open positions are marked to market based on theclosing level of the index. lf the index has moved againstyou, you will be required to deposit the amount of loss(notional) resulting from such movement. This margin willhave to be paid within a stipulated time frame, generallybefore commencement of trading next day.

B. If you fail to deposit the additional margin by the deadline orif an outstanding debt occurs in your account, the broker/member may liquidate a part of or the whole position orsubstitute securities. In this case, you will be liable for anylosses incurred due to such close-outs.

C. Under certain market conditions, an investor may find itdifficult or impossible to execute transactions, For example,this situation can occur due to factors such as illiquidity i.e.when there are insufficient bids or offers or suspension oftrading due to price limit or circuit breakers etc.

D. In order to maintain market stability, the following stepsmay be adopted: changes in the margin rate, increases inthe cash margin rate or others. These new measures mayalso be applied to the existing open interests. In suchconditions, you will be required to put up additional marginsor reduce your positions.

E. You must ask your broker to provide the full details of thederivatives contracts you plan to trade i.e. the contractspecifications and the associated obligations.

2.2. Risk of Option holders1. An option holder runs the risk of losing the entire amount

paid for the option in a relatively short period of time. Thisrisk reflects the nature of an option as a wasting assetwhich becomes worthless when it expires. An option holderwho neither sells his option in the secondary market norexercises it prior to its expiration will necessarily lose his

entire investment in the option. If the price of the underlyingdoes not change in the anticipated direction before the optionexpires to an extent sufficient to cover the cost of the option,the investor may lose all or a significant part of his investmentin the option.

2. The exchange may impose exercise restrictions and haveabsolute authority to restrict the exercise of options at certaintimes in specified circumstances.

2.3 Risks of Option Writers1. If the price movement of the underlying is not in the

anticipated direction, the option writer runs the risks of losingsubstantial amount.

2. The risk of being an option writer may be reduced by thepurchase of other options on the same underling interestand thereby assuming a spread position or by acquiringother types of heading positions in the options markets orother markets. However, even where the writer has assumeda spread or other hedging position, the risks may still besignificant. A spread position is not necessarily less risky thana simple ‘long’ or ‘short’ position.

3. Transactions that involve buying and writing multiple optionsin combination, or buying or writing options in combinationwith buying or selling short the underlying interests, presentadditional risks to investors. Combination transactions,such as option spreads, are more complex than buying orwriting a single option. And it should be further noted that, asin any area of investing, a complexity not well understoodis, in itself, a risk factor. While this is not to suggest thatcombination strategies should not be considered, it isadvisable, is the case with all investment in options, to consultwith someone who is experienced and knowledge withrespect to the risks and potential rewards of combinationtransactions under various market circumstances.

3. GENERAL3.1 Commission and other charges Before you begin to trade,

you should obtain a clear explanation of all commission,fees and other charges for which you will be liable. Thesecharges will affect your net profit (if any) or increase yourloss.

3.2 Deposited cash and property You should familiariseyourself with the protections accorded to the money orother property you deposit particularly in the event of afirm insolvency or bankruptcy. The extent to which youmay recover your money or property may be governed byspecific legislation or local rules. In some jurisdictions,property which has been specifically identifiable as yourown will be pro-rated in the same manner as cash forpurpose of distribution in the event of a shortfall. In caseof any dispute with the member, the same shall be subjectto arbitration as per the byelaws/regulations of theExchange.

3.3 For rights and obligations of the clients, please refer toAnnexure-l enclosed with this document.

3.4 The term ‘constituent’ shall mean and include a client, acustomer or an investor, who deals with a member for thepurpose of acquiring and/or selling of the securities throughthe mechanism provided by MCX-SX.

3.5 The term ‘member’ shall mean and include a tradingmember, a broker or a stock broker, who has been admittedas such by MCX-SX and who holds a registrationcertificate as a stock broker from SEBI. I herebyacknowledge that I have received and understood thisrisk disclosure statement and appendix-1 containing myrights and obligations.

3.6 The Trading member is doing proprietary (Pro) tradingapart from clients trading in all stock exchanges i.e. NSE/BSE/MCX-SX

I here by acknowledge that l have received and undersigned this riskdisclosure statement and Annexure-l containing my rights andobligations.

Customer Signature(lf partner, Corporate, or other Signatory, then attest with company seal.)

Date _____________________29

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1.1 You should familiarise yourself with the protection accorded tothe money or other property you may deposit with your member,particularly in the event of a default in the stock market or thebroking firm’s insolvency or bankruptcy.I.I.I Please ensure that you have a documentary proof of

your having made deposit of such money or propertywith the member, stating towards which account suchmoney or property deposited.

1.1.2 Further, it may be noted that the extent to which youmay recover such money or property may be governedby the Bye-laws and Regulations of MCX-SX and thescheme of the Investor’s Protection Fund in force fromtime to time.

1.1.3 Any dispute with the member with respect to deposits,margin money, etc., and producing an appropriateproof thereof .shall be subject to arbitration as per theRules, Byelaws/Regulations of MCX-SX or its ClearingCorporation / Clearing House.

1.2 Before you begin to trade, you should obtain a clear idea fromyour member of all brokerage, commissions, fees and othercharges which will be levied on you for trading. These chargeswill affect your net cash inflow or outflow.

1.3 You should exercise due diligence and comply with the followingrequirements of the MCX-SX and/or SEBI:1.3.1 Please deal only with and through SEBI registered

members of the Stock Exchange and are enabled totrade on the Exchange. All SEBI registered membersare given a registration No., which may be verified fromSEBI. The details of all members of MCX-SX andwhether they are enabled to trade may be verified fromMCX-SX website (www.mcx-sx.com)

1.3.2. Demand any such information, details and documentsfrom the member, for the purpose of verification, asyou may find it necessary to satisfy yourself about hiscredentials.

1.3.3. Furnish all such details in full as are required by themember as required in “Known Your Client” form, whichmay also include details of PAN or Passport or DrivingLicense or Voters Id, or Ration Card, bank accountand depository account, or any such details mademandatory by SEBI/MCX-SX at any time, as isavailable with the investor.

1.3.4. Execute a broker-client agreement in the formprescribed by SEBI and/or the Relevant Authority ofMCX-SX or its Clearing Corporation / ClearingHouse from to time to time, because this may be usefulas a proof of your dealing arrangements with themember.

1.3.5. Give any order for buy or sell of a security in writing orin such form or manner, as may be mutually agreed.Giving instructions in writing ensuresthat youhaveproofof yourintent, in case of disputes with the member.

1.3.6. Ensure that a contract note is issued to you by themember which contains minute records of everytransaction. Verify that the contract note containsdetails of order no., trade number, trade time,trade price, trade quantity, name of security, clientcode allotted to you and showing the brokerageseparately. Contract notes are required to be given/sent by member to the investors latest on the nextworking day of the trade. Contract note can be issuedby the member either in electronic form using digitalsignature as required, or in hard copy. In case you donot receive a contract note on the next working day orat a mutually agreed time, please get in touch with theInvestors Grievance Cell of MCX-SX, without delaying.

1.3.7. Facility of Trade Verification is available on MCX-SXwebsite (www.mcx-sx.com), where details of trade asmentioned in the contract note may be verified fromthe trade date upto five trading days. Where tradedetails on the website, do not tally with thedetails mentioned in the contract note, immediatelyget in touch with the Investors Grievance Cell of MCX-SX.

1.3.8 Ensure that payment/delivery of securities againstsettlement is given to the concerned member with inone working day prior to the date of pay-in announcedby MCX-SX or it’s Clearing Corporation / clearingHouse. Payments should be made only by accountpayee cheque in favour of the firm/company of thetrading member and a receipt or acknowledgmenttowards what such payment is made be obtainedfrom the member. Delivery of securities is made tothe pool account of the member rather than to thebeneficiary account of the member.

1.3.9 In case pay-out of money and/or securities is notreceived on the next working day after day after dateof pay-out announced by MCX-SX or its ClearingCorporation / Clearing House, please follow-up withthe concerned member for its release. In case pay-out is not released as above from the memberwithin five working days, ensure that you lodgea complaint immediately with the Investor’s GrievanceCell of MCX-SX.

1.3.10. Every member is required to send a complete ‘Statementof Accounts’, for both funds and securities settlementto each of its constituents, at such periodicity as maybe prescribed by time to time. You should report errors,if any, in the Statement immediately, but not later than30 calender days of receipt thereof, to the member. Incase the error is not rectified or there is a dispute,ensure that you refer such matter to the InvestorsGrievance Cell of MCX-SX, without delaying.

1.3.1 I. In case of a complaint against a member/registered sub-broker,you should address the complaint to the Office as maybe specified by MCX-SX from time to time.

1.4 In case where a member surrenders his membership, MCX-SXgives a public notice inviting claims, if any, from investors. Incase of a claim, relating to “transactions executed on thetrading system” of MCX- SX, ensure that you lodge a claimwith MCX- SX/NSCCL/Clearing House within the stipulatedperiod and with the supporting documents.

1.5 In case where a member is expelled member from tradingmembership or declared a defaulter, NSE/BSE gives a publicnotice inviting claims, if any, from investors, In case of a claim,relating to “transactions executed on the trading system” of MCX-SX, ensure that you lodge a claim with MCX-SX within thestipulated period and with the supporting documents.

1.6 Claims against a defaulter/expelled member found to be valid asprescribed in the relevant Rules/Bye-laws and the scheme underthe Investors’ Protection Fund (IPF)may be payable first out ofthe amount vested in the Committee for Settlement of Claimsagainst Defaulters, on pro-rata basis if the amount isinadequate. The balance amount of claims, if any, to a maximumamount of Rs. 10 lakhs per investor claim, per defaulter/ expelledmember may be payable subject to such claims being foundpayable under the scheme of IPF.

Notes:1. The term ‘constituent’ shall mean and include a client, a customer

or an investor, who deals with a trading member of MCX-SX forthe purpose of acquiring and / or selling of securities through themechanism provided by MCX-SX.

2. The term ‘member’ shall mean and include a member or a brokeror a stock broker, who has been admitted as such by MCX-SXand who holds a registration certificate as a stock broker fromSEBI.

3. MCX-SX may be substituted with names of the relevantexchanges, wherever applicable.

ANNEXURE - I(xvi) INVESTOR’S RIGHTS AND OBLIGATIONS

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a) Policy for Penny StockA stock that trades at a relatively low price and marketcapitalization. These types of stocks are generally considered tobe highly speculative and high risk because of their lack of liquidity,large bid-ask spreads, small capitalization and limited followingand disclosure. Depend on the market condition and RMS policyof the company RMS reserve the right to refuse to provide thelimit in Penny stocks and losses if any on account of such refusalshall be borne by client only.

b) Setting up client’s exposure limitsThe stock broker may from time to time impose and vary limitson the orders that the client can place through the stock broker’strading system (including exposure limits, turnover limits, limitsas to the number, value and/or kind of securities in respect ofwhich orders can be placed etc.). The client is aware and agreesthat the stock broker may need to vary or reduce the limits orimpose new limits urgently on the ‘ basis of the stockbroker’srisk perception and other factors considered relevant by the stockbroker including but not limited to limits on account of exchange/SEBI directions/limits (such as broker level/market level limits insecurity specific/volume specific exposures etc.), and the stockbroker may be unable to inform the client of such variation,reduction or imposition in advance. The client agrees that thestock broker shall not be responsible for such variation, reductionor imposition or the client’s inability to route any order throughthe stock broker’s trading system on account of any suchvariation, reduction or imposition of limits. The client further agreesthat the stock broker may at any time, at its sole discretion andwithout prior notice, prohibit or restrict the client’s ability to placeorders or trade in securities through the stock broker, or it maysubject any order placed by the client to a review before its entryinto the trading systems any may refuse to execute/allowexecution of orders due to but not limited to the reason of lack ofmargin/securities or the order being outside the limits set by stockbroker/exchange/SEBI and any other reasons which the stockbroker may deem appropriate in the circumstances. The clientagrees that the losses, if any on account of such refusal or dueto delay caused by such review, shall be borne exclusively bythe client alone.We have margin based RMS system. Total deposits of the clientsare uploaded in the system and client may take exposure on thebasis of margin applicable for respective security as per VARbased margining system of the stock exchange and/or margindefined by RMS based on their risk perception. Client may takebenefit of “credit for sale” i.e. benefit of share held as margin byselling the same by selecting Delivery option through order entrywindow on the trading platform, the value of share sold will beadded with the value of deposit and on the basis of that clientmay take fresh exposure.In case of exposure taken on the basis of shares margin thepayment is required to be made before the exchange pay in dateotherwise it will be liable to square off after the pay in time or anytime due to shortage of margin.

c) Applicable brokerage rate :- Brokerage will be charged withinthe limits prescribed by SEBI/Exchange.

d) Imposition of penalty/delayed payment chargesClients will be liable to pay late pay in/delayed payment chargesfor non making payment of their payin/margin obligation on timeas per the exchange requirement/schedule at the rate upto 2%per month. The client agrees that the stock broker may imposefines / penalties for any orders / trades / deals / actions of theclient which are contrary to this agreement / rules / regulations /bye laws of the exchange or any other law for the time being inforce, at such rates and in such form as it may deem fit. Furtherwhere the stock broker has to pay any fine or bear any punishmentfrom any authority in connection with / as a consequence of / inrelation to any of the orders / trades / deals / actions of the client,the same shall be borne by the client.

e) The right to sell client’s securities or close clients’ positions,without giving notice to the client, on account of non-payment of client’s duesWithout prejudice to the stock brokers other right (Including theright to refer the matter to arbitration), the stock broker shall beentitled to liquidate/close out all or any of the clients position

without giving notice to the client for non payment of margins orother amounts including the pay in obligation, outstanding debtsetc and adjust the proceeds of such liquidation/close out, if any,against the clients liabilities/obligations.The client shall ensure timely availability of funds/securities inform and manner at designated time and in designated bankand depository account(s), for meeting his/her/its pay in obligationof funds and securities. Any and all losses and financial chargeson account of such liquidations/ closing out shall be charged to& born by the client. In cases of securities lying in margin account/client beneficiary account and having corporate actions likeBonus, Stock split, Right issue etc, for margin or other purposethe benefit of shares due to received under Bonus. Stock split.Right issue etc will be given when the shares is actually receivedin the stock broker designated demat account.In case the payment of the margin / security is made by theclient through a bank instrument, the stock broker shall beat libertyto give the benefit/credit for the same only on the realization ofthe funds from the said bank instrument etc, at the absolutediscretion of the stock broker. Where the margin / security ismade available by way of securities or any other property. thestockbroker is empowered to decline its acceptance as margin /security &/or to accept it at such reduced value as the stockbroker may deem fit by applying haircuts or by valuing it bymarking it to market or by any other method as the stock brokermay deem fit in its absolute discretion.The stock broker has the right but not the obligation, to cancel allpending orders and to sell/close/liquidate all open positions/securities/shares at the pre-defined square off time or when Markto Market (M-T-M) percentage reaches or crosses stipulatedmargin percentage, whichever is earlier. The stock broker willhave sole discretion to decide referred stipulated marginpercentage depending upon the market condition. In the eventof such square off, the client agrees to bear all the losses basedon actual executed prices, the client shall also be solely liable forall and any penalties and charges levied by the exchange(s).

f) Shortages in obligations arising out of internal netting oftradesStock broker shall not be obliged to deliver any securities or payany money to the client unless and until the same has beenreceived by the stock broker from the exchange, the clearingcorporation / clearing house or other company or entity liable tomake the payment and the client has fulfilled his/her/its obligationsfirst.The policy and procedure for settlement of shortages inobligations arising out of internal netting of trades is asunder:a) The Short delivering client is debited by an amount equivalent

to 20% above of closing rate of day prior to Payin/PayoutDay. The securities delivered short are purchased frommarket on T+2 day and the purchase consideration(inclusive of all statutory taxes & levies) is debited to theshort delivering seller client along with reversal entry ofprovisionally amount debited earlier.

b) If securities cannot be purchased from market due to anyforce majeure condition, the short delivering seller is debitedat the closing rate on T+2 day or Auction day on Exchange +10% where the delivery is matched partially or fully at theExchange Clearing, the delivery and debits/credits shallbe as per Exchange Debits and Credits.

c) In cases of securities having corporate actions all cases ofshort delivery of cum transactions which cannot be auctionedon cum basis or where the cum basis auctioned on cum basisor where the cumbasis auction payout is after the bookclosure/record date, would be compulsory closed out athigher of 10% above the official closing price on the auctionday or the highest traded price from first trading day of thesettlement till the auction day.

g) Conditions under which a client may not be allowed to takefurther position or the broker may close the existing positionof a clientWe have margin based RMS system. Client may take exposureupto the amount of margin available with us. Client may not beallowed to take position in case of non-availability/shortage of

(xvii) POLICIES & PROCEDURE

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margin as per our RMS policy of the company. The existing position ofthe client is also liable to square off/close out without giving noticedue to shortage of margin/ non making of payment for their payinobligation/outstanding debts.

h) Temporarily suspending or closing a client’s account at theclient’s requestOn the request of the client in writing, the client account can besuspended temporarily and same can be activated on the writtenrequest of the client only. During the period client account issuspended, the market transaction in the client account will beprohibited. However client shares/ledger balance settlement cantake place.On the request of the client in writing, the client account can beclosed provided the client account is settled. If the client wantsto reopen the account in that case client has to again completethe KYC requirement.

i) Deregistering a client:- Notwithstanding anything to the contrarystated in the agreement, the stock broker shall be entitled toterminate the agreement with immediate effect in any of thefollowing circumstances:(i) If the action of the client are prima facie illegal / improper

or such as to manipulate the price of any securities ordisturb the normal/proper functioning of securities or disturbthe normal/proper functioning of the market, either aloneor in conjunction with others.

(ii) If there is any commencement of a legal process againstthe client under any law in force;

(iii) On the death/lunacy or other disability of the Client;(iv) If the client being a partnership firm, has any steps taken

by the Client and/or its partners for dissolution of thepartnership;

(v) If the Client suffers any adverse material change in his/her/its financial position or defaults in any other agreementwith the Stock broker;

(vi) If there is reasonable apprehension that the Client is unableto pay its debts or the Client has admitted its inability topay its debts, as they become payable;

(vii) If the Client is in breach of any term. condition or covenantof this Agreement;

(viii) If the Client has made any material misrepresentation offacts, including (without limitation) in relation to the Security;

(ix) If a receiver, administrator or liquidator has been appointedor allowed to be appointed of all or any part of theundertaking of the Client;

(x) If the Client have taken or suffered to be taken any actionfor its reorganization, liquidation or dissolution;

(xi) If the Client has voluntarily or compulsorily become thesubject of proceedings under any bankruptcy or insolvencylaw or being a company, goes into liquidation or has areceiver appointed in respect of its assets or refers itselfto the Board for Industrial and Financial Reconstruction orunder any other law providing protection as a reliefundertaking;

(xii) If any covenant or warranty of the Client is incorrect oruntrue in any material respect;

Inactive Client account: - Client account will be considered asinactive if the client does not trade for period of one year.Calculation will be done at the beginning of every month andthose clients who have not traded even a single time will beconsidered as inactive, the shares/credit ledger balance if anywill be transferred to the client within one week of the identifyingthe client as inactive. The client has to make written request forreactivation of their account.Trading in Exchange is in Electronic Mode, based on VSAT,leased line, ISDN, Modem and VPN, combination of technologiesand computer systems to place and route orders. I/we understandthat there exists a possibility of communication failure or systemproblems or slow or delayed response from system or tradinghalt or any breakdown in our back office/front end system, orany such other problems/glitch whereby not being able toestablish access to the trading system/network, which may bebeyond your control and may result in delay in processing or notprocessing buy or sell Orders either in part or in full. I/We shallbe fully liable and responsible for any such problem/fault.Client Acceptance of Policies and Procedures stated herein above:I/We have fully understood the same and do hereby sign thesame and agree not to call into question the validity, enforceabilityand applicability of any provision/clauses this document anycircumstances what so ever .These Policies and Proceduresmay be amended / changed unilaterally by the broker, providedthe change is informed to me / us with through any one or moremeans or methods. I/we agree never to challenge the same onany grounds including delayed receipt / non receipt or any otherreasons whatsoever. These Policies and Procedures shall alwaysbe read always be read along with the agreement and shall becompulsorily referred to while deciding any dispute / differenceor claim between me / us and stock broker before any court oflaw / judicial / adjudicating authority including arbitrator/ mediatoretc.

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