Capstocks and Securities(India) Pvt Ltd

23-Feb-12 , 01:42 PM

1. Penny Stocks :

A stock that trades at a relatively low price and market capitalisation. These types of stocks are generally considered to be highly speculative and of high risk because of their lack of liquidity, large bid-ask spreads, small capitalization and limited following and disclosure. CAPSTOCKS shall permit clients to buy/sell in penny stocks, subject to the risk management policy of the Company. CAPSTOCKS, reserve the right to permit or refuse limits in Penny stocks and losses if any, on account of such refusal, shall be borne by the Client himself.

2. Client Exposure Limit :

CAPSTOCKS may from time to time impose and vary limits on the orders that the Client can place through its trading system (including exposure limits, turnover limits, limits as to the number, value and/or kind of securities in respect of which orders can be placed etc.). The Client is aware and agrees that CAPSTOCKS may need to vary or reduce the limits or impose new limits urgently on the basis of its risk perception and other including but not limited to limits on account of Exchange/SEBI directions/limits (such as broker level/market level limits in security specific/volume specific exposures etc.) and that CAPSTOCKS may be unable to inform the Client of such variation, reduction or imposition in advance. The Client agrees that CAPSTOCKS shall not be responsible for such variation, reduction or imposition or the Client’s inability to route any order through the trading system on account of any such variation, reduction or imposition of limits. The Client further agrees that the CAPSTOCKS may at any time, at its sole discretion and without prior notice, prohibit or restrict the Client’s ability to place orders or trade in securities through CAPSTOCKS or it may subject any order placed by the Client to a review before its entry into the trading systems and may refuse to execute/allow execution of orders due to but not limited to the reason of lack of margin/securities or the order being outside the limits set by Stock broker/Exchange/SEBI and any other reasons which the Stock broker may deem appropriate in the circumstances. The Client agrees that the losses, if any on account of such refusal or due to delay caused by such review, shall be borne exclusively by the Client alone. In case of exposure taken on the basis of share margin, the payment is required to be made before the Exchange “Pay In” date otherwise it will be liable to squared off after the “Pay In” time or any time, due to shortage of margin.

3. Applicable Brokerage Rates :

Brokerage and other charges are subject to the maximum limits as prescribed by SEBI/Exchanges/Government and other Regulatory authorities, from time to time.

4. Imposition of Penalty/Delayed Payment Charges :

Clients are liable to pay the pay-in/margin obligation, within the time limit prescribed by SEBI/Stock Exchange(s). CAPSTOCKS, reserves the right of imposition of delayed payment charges and the Client shall be liable for the payment of such charges at such rate as may be prescribed by CAPSTOCKS, in accordance to SEBI/Exchange norms. The Penalty charges shall be debited in the Client account, on a daily, weekly, monthly or quarterly basis, as may be determined by CAPSTOCKS from time to time. Further, CAPSTOCKS shall not be held liable to pay any fine or bear any punishment from any authority in connection with/as a consequence of/in relation to any of the orders/ trades / deals/ actions of the Client and the same shall be borne by the Client.

5. The Right to sell Clients Securities or Close Client’s positions, without giving notice to the Client on account of non payment of dues :

CAPSTOCKS shall at its sole discretion square off/liquidate open positions of Clients and/or sell Clients Securities, in the event of his/her/its failure to meet Margin/Pay-in obligations/Outstanding debts, etc in time. The Securities to be sold shall include those maintained as Margin and/or Securities lying in the Pool Account and/or Client’s Demat account. CAPSTOCKS shall be under no obligation to communicate such Close Out of positions or Sale of Securities and shall not be held responsible for any losses incurred by the Client due to such squaring off /sale or for not doing so. Any and/all losses and financial charges on account of such liquidation/closing out shall be charged to and borne by the Client. It shall be the responsibility of the Client to ensure timely availability of funds/securities at designated time and in designated bank or depository account(s) for meeting his/her/its, pay-in obligation of funds/securities. In case the margin/security is made by the Client through a Bank instrument, the CAPSTOCKS shall be at liberty to give the benefit/credit for the same only on realization of funds, from the said bank instrument.

6. Shortages in obligations arising out of internal netting of trades :

CAPSTOCKS shall not be obliged to deliver any securities or pay any money to the client unless and until the same has been received from the Exchange/Clearing Corporation/Clearing House or other Company or entity liable to make the delivery/payment and the Client has fulfilled his/her/its obligations first. The shortages in obligation arising out of internal netting of trades will be settled by purchase from the market or by squaring off, at the discretion of CAPSTOCKS, subject to SEBI/Exchange Rules & Regulations. All losses to the Client on this account shall be borne solely by the Client and the Client shall also indemnify CAPSTOCKS in this respect.

7. Conditions under which a Client may not be allowed to take further position or the broker may close the existing position of the Client :

The Client may be permitted to take exposure up to the amount of margin available with CAPSTOCKS. The Client may not be allowed to take position in case of non-availability/shortage of margin. The existing position of the client is also liable to be squared off/closed out, without giving notice of shortage of margin/ nonpayment for their pay in obligation/outstanding debts. In addition to the conditions as provided under the policy of right to sell securities and close out of client’s open position, CAPSTOCKS shall have the right to refuse trades or not allow the Clients to take further positions and / or close out the existing positions, under circumstances which shall include the following :

As a result of any regulatory directive / restriction;
Non-receipt of funds / securities and / or bouncing of Cheque received from the Client towards his obligations / margin / ledger balances;
Due to technical reasons;
Securities breaching the limits specified by the Exchanges/Regulators from time to time.
In case of failure to meet margin including mark to market margins.
Any other conditions as may be specified by CAPSTOCKS from time to time in view of market conditions, regulatory requirements, internal policies etc;
Due to any force majeure event beyond the control of CAPSTOCKS.

CAPSTOCKS shall not be responsible for any loss incurred due to “Close Out” and the Client shall indemnify in this regard.

8. Temporarily suspending or closing a Clients Account, at the Client’s request :

CAPSTOCKS may temporarily suspend/close a Client account, upon the request of the respective Client in writing. The Client account shall be reactivated again on his written request, subject to the clearance of all dues/settlement obligations. In case of closure of account the Client may be required to comply with fresh KYC registration formalities. Notwithstanding any such suspension/closure, all rights, liabilities and obligations of the parties arising out of or in respect of transactions entered into prior to such closure / suspension shall continue to subsist and binding on the Client.

9. Deregistering a Client :

Deregistration of the Client shall be at the sole discretion of CAPSTOCKS. CAPSTOCKS may deregister the Client, if the Client breaches the terms and conditions of the Member - Client Agreement or provides any false information or declaration at the time of Client Registration. Further CAPSTOCKS may deregister the Client if the Client is suspected to be involved in any activities, in violation of applicable Rules and Regulations. The Client may also be deregistered due to any regulatory directive and other internal policies of CAPSTOCKS, including policy with respect to prevention of money laundering. Such deregistration/ termination shall not affect the rights and liabilities of the parties in respect of the transactions, executed before the date of such deregistration / termination.

10. Inactive Client Account :

The Trading Account and/or Demat account of a Client shall be treated as inactive, if it remains inoperative for a continuous period of twelve months. The shares/credit in the ledger, if any shall be transferred to the Client Account, within one week of Client being identified as inactive. The Constituent Client shall thereafter be prevented from any further transaction. An inactive account can be reactivated by submitting a duly signed request, at any of the Branches/H.O of CAPSTOCKS.

Revision 1.0 (Updated on 24/06/2010)

PROTECTING YOUR ACCOUNT FROM UNAUTHORIZED TRADES

PRE TRADING

Account opening

Complete the Know Your Client (KYC) Form, read through Member. Client Agreement (MCA), Risk Disclosure Document (RDD) and execute them.
In case you are dealing through a sub-broker, you need to execute a Tripartite Agreement i.e. an agreement between Client-Sub-Broker-Trading Member.
Please provide proof of your identity, proof of your address and also a copy of the Permanent Account Number (PAN) card.
Get a Unique Client Code allotted by the Trading Member to you.
Before handing over the documents to Trading Member or his authorized representative retain a copy of all documents for your future reference.

Areas to watch out……

Choose an Exchange of your choice. Strike off the name of the Exchange on which you do not wish to trade.
Check and clearly mark your option to receive order confirmations, contract notes and funds and securities statements in digital or physical form.

If you choose digital form, ensure that

The conditions for receiving digitally signed documents are understood.
The e-mail id regularly used by you is provided.
The Trading Member acknowledges your e-mail id.

If you choose physical form, ensure that you confirm:

Correct address to which you would like to receive the contract notes and other statements
Strike off email id column and clearly write that “You do not wish to receive documents in digital form”

TRADING

Specify your name and client code before placing orders.
Be specific and clear in terms like quantity and price.
Do not give blanket permission to place orders on your behalf.
Make sure that orders given by you are entered in your Unique Client Code (UCC) that has been allotted to you.

POST TRADING

Make sure that you receive contract notes for all your trades from the Trading Member within the stipulated time of 24 hours from the execution of trade.
In case you have opted for digital contract notes, please verify your email account on a daily basis so that all transactions in your account come to your knowledge.
Give and receive all funds to Trading Member’s account only.
Make payments only by way of Account Payee cheque/demand draft/pay order in favour of Trading Member.
Make sure that you receive quarterly statement of funds and securities from your Trading Member. Review the statements for accuracy.

Temporary suspension of trading activities or closing of account

In case you decide to stop trading for a specific period (in case you are traveling / under going medical treatment, etc) intimate the Trading Member in writing and take an acknowledgement for the same.
In case you decide to close your trading account, ensure that you have completed the formalities and received a closure letter from the Trading Member.

Remember to…….

Verify your trades on a regular basis.
Check transactions in the contract notes or the quarterly statements of funds and securities. If you notice that any transaction is not as per your instructions, raise the issue with the Compliance Officer in writing.

Disclaimer
The information and material contained in these pages and the terms, conditions, and descriptions that appear are subject to change without prior notice. The information contained in this brochure are provided on an “as is,” “as available” basis and “CAPSTOCKS” does not warranty the accuracy, adequacy or completeness of this information and expressly disclaims liability for errors or omissions in this information and material.

	Site Map \| Career \| Disclaimer I Open An Account I Feedback \| Policies & Procedures \| Branch Support Solutions \| Business Partners
MEMBER : NSE BSE - DP : CDSL – Portfolio Manager Investor Grievances : Customer.redressal@capstocksindia.com SEBI REGN Nos: NSE: INB/INF/INE 231167439 BSE: INB/INF 011167435 MCX-SX: INE 261167439 DP: IN-DP-CDSL-203-2003 PMS: INP000001066 Member ID : NSE: 11674 BSE : 3086 MCX : 12580* NCDEX : 00977* NMCE : CL0465* NSEL : 56600* (Through Subsidiary Company) © 2010 Capstocks and Securities(India) Pvt. LTD All rights reserved. Designed,Developed and Powered by C-MOTS INFOTECH. (ISO 9001:2008 certified)*