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Following are the business rules for facilitation of client's trade on Internet with stockmultiplier.co.in (hereinafter referred to as the Site), which is an Internet online Trading Portal of Parsoli Corporation Ltd (PCL). By registering as a member of the Site and opening an Internet trading account with PCL, you are deemed to have agreed and undertaken to be bound and governed by these Business Rules, apart from its general & commercial terms and conditions. PCL reserves the right to modify such Rules and Terms and Conditions, at its discretion, its clients will be intimated of any such modification.
DEFINITIONS
Transaction for delivery
It means the client intends to give full (fund) consideration for his purchases or give full delivery for his sales for settling the trade. In case of delivery sale transactions, the shares available in his demat account of CDSL (opened through PCL) will only be considered. In case of delivery purchase, clear funds available in his ledger will only be considered. Transactions for delivery are also referred to as Investment Transactions
Transaction for trading
It means the client will square off his purchase or sale position before the cut off time and will not take or give delivery of the shares transacted. Transactions for trading are also referred to as Trading Transactions.
Transactions for Delivery and Transactions for Trading are collectively referred to as "Transactions".
Transaction for trading
It means the client will square off his purchase or sale position before the cut off time and will not take or give delivery of the shares transacted. Transactions for trading are also referred to as Trading Transactions.
Transactions for Delivery and Transactions for Trading are collectively referred to as "Transactions".
Demat account of PCL with the DP means the name of the depository participant (one or more) and account number "one or more" of PCL with such depository participant (s) as may be notified on the website or informed otherwise from time to time.
Designated bank account of PCL means the name(s) of the bank(s) and the account number(s) with such bank (s) as may be notified on the Site or informed otherwise from time to time.
Cut off time
It means the time by which the Designated Action must be taken by the client failing which PCL may carry out the square off action at its sole discretion on behalf of the client at entire cost and risk of the client.
Details on the cut off time are provided below in this Business Rule section.
Designated action means the following:
- For trading transactions wherein there is a net purchase and/or sale position in one or more scrips, before the Cut off time,
- reducing the position appropriately by executing appropriate converse transactions, and / or
- Providing additional margin money.
- For delivery transactions wherein there is net purchase positions in one or more scrips, remitting full purchase consideration in the designated bank accounts of PCL and intimate us with relevant proof for acknowledgement, before the cut off time.
- For delivery transactions, wherein there is a net sale positions in one or more scrips, delivering the relevant scrips in demat form in your designated demat account (opened through PCL), before the cut off time.
Trading limits
It means total value of outstanding Transactions and pending orders, for delivery and trading, that a client can have at any given point of time on one or more exchanges. This is arrived at after considering the clear ledger credit balance that a client has in his account with PCL along with stock valuation exposure and is determined / modified at the sole discretion of PCL.
Permitted shares
Currently clients can execute Transactions only in stocks wherein deliveries are compulsory in demat form and on the Designated Exchanges only.
Designated exchanges
Following exchanges are the Designated Exchanges for Transactions:
- National Stock Exchange of India (NSE)
- Bombay Stock Exchange (BSE)
Appropriate interest
Appropriate interest will be calculated at the rate of 24%p.a.on all net debit balances standing in the account of the client. The determination of debit balances shall be made at the sole discretion of PCL and its decision in that behalf shall be final and binding.
Margin Money
Margin money means clear sum or credit balance available with PCL in client's account for meeting potential losses that may arise out of ANY OR ALL of the following:
- Volatility of the shares wherein the client may have orders pending or transactions executed
- Non-delivery or short delivery of funds or shares before cut-off time, as the case may be, that may have been called for by PCL
- Auction losses arising out of non-delivery/short-delivery of shares sold by the client
- Losses arising out of square -off of trades, either voluntary or undertaken by PCL on behalf of the clients
- Other unforeseen contingencies
Cut off
PCL would prescribe the time before which a trading client would square off his outstanding position and the delivery client meet his payment / delivery obligation during the settlement. The time so prescribed is known as Voluntary "Cut off" time. PCL would on its own square off all the balance positions not fulfilling obligations at voluntary "Cut off" time. Mark to Market "Cut off" would refer to a situation where due to sudden adverse movement in the market, PCL would require the client to immediately square off outstanding trades or provide margin without waiting for voluntary "Cut off" time.
ACCOUNT OPENING
A client will be required to open an account with PCL by duly signing an account opening form, furnishing the necessary documents and signing the client broker agreement as explained on the site
TYPE OF ACCOUNT
Every client will have one account wherein all his transactions of buy and sell of securities, whether for delivery or not, will be recorded. All his profits, losses, purchase cost and sale proceeds, margin debits and/or credits, receipts /payments etc. will also be recorded in the same account for transactions on Exchanges
TYPE OF TRANSACTIONS PERMITTED EXECUTION:
Every client will be provided with facility to buy and sell shares through Internet by PCL. Before finally submitting the trade the client will be required to indicate whether the transaction is for trading or for delivery. The nature of the Transaction cannot be changed from Trading to Delivery or vice versa unless specifically permitted by PCL. In the event of such change, the client will be charged differential commission, if any.
BROKERAGE AND OTHER CHARGES :
The brokerage details as per various schemes available based on brokerage generated by the client on a monthly basis:
| Scheme |
Monthly Brokerage |
|
Price Upto (Rs.) |
Brokerage |
| |
From |
To |
|
|
|
| A |
0 |
4,999 |
SAMEDAY SQUARE UP |
100 |
0=10 PAISE |
| |
|
|
500 |
0=20 PAISE |
| |
|
|
9999 |
0=08 % |
| |
|
DELIVERY |
9999 |
0=50 % |
| B |
5,000 |
14,999 |
SAMEDAY SQUARE UP |
100 |
0=05 PAISE |
| |
|
|
500 |
0=10 PAISE |
| |
|
|
9999 |
0=04 % |
| |
|
DELIVERY |
|
0=35 % |
| C |
15,000 |
24,999 |
SAMEDAY SQUARE UP |
100 |
0=05 PAISE |
| |
|
|
500 |
0=10 PAISE |
| |
|
|
9999 |
0=04 % |
| |
|
DELIVERY |
|
0=25 % |
| D |
25,000 |
Above |
SAMEDAY SQUARE UP |
100 |
0=05 PAISE |
| |
|
|
500 |
0=10 PAISE |
| |
|
|
9999 |
0=02 % |
| |
|
DELIVERY |
|
0=15 % |
Please note brokerage would be charged on each transaction.
RULES FOR TRANSACTIONS EXECUTION
For trading transactions:
- Every client, subject to his trading limits, can buy or sell permitted shares on the designated exchange.
- Every client will have nil purchase or sale position before the cut off time barring the cases where there may be circuit breakers and there may be no buyer or seller, as the case may be, in the market to be able to square off the position.
Authority and modalities of square-off of trading transactions:
Every client authorises PCL to square off his net purchase or sale trading position as of the cut off time on his behalf at his cost and his risk. If there are circuit breakers and/or it is not possible to square off the net position for any reason whatsoever, PCL will take either/all of the following actions as it may at its sole discretion deem fit :
- Net buy position not squared off
- Take delivery on behalf of the Customer,
- Debit the cost of the purchase position to the account of the client fully
- Sell the shares in the next settlement or whenever it is possible to do so.
- Credit the proceeds of the sale of the scrips to the account of the client fully
- Debit appropriate interest and differential brokerage to the client on the amount of net outflow by PCL
- Net sell trading position not squared off
- Face the auction in the Exchange
- Debit/credit the difference sum between auction value and net sale value to clients account, whether there is adequate balance in his account or not,
- Charge appropriate interest on net sums due and unpaid to the PCL for appropriate period
For delivery transactions:
- Every client, subject to his trading limits, can buy or sell permitted shares on the designated exchange.
- Every client, before his trade can be sent for execution to the designated exchange, will indicate the transaction as transaction for delivery.
- Every client will ensure that for all his net buy delivery transactions, full consideration is sent to the designated bank account of PCL before the cut-off time.
Authority and modalities of square-off of "buy for delivery" transactions
- In the event that the sums available for taking deliveries on behalf of the client in his account with PCL is less than the total sum required to lift all the deliveries, PCL may, in its absolute discretion, allot the sums as it may deem fit .
- Every client will ensure that for all his net sell delivery transactions, full deliveries are sent to the designated DP account of PCL before the cut-off time.
Authority and modalities for square off of "sell for delivery" transactions
- In the event of deliveries of all or any of the scrips sold not reaching fully or partially to the designated DP account of PCL before the cut off time, PCL will be entitled to do either or all of the following actions:
- Deliver the scrips to the extent of the quantities received and face auction on behalf of the client for the balance undelivered quantities for such scrips not received partially or fully.
CUT OFF TIME FOR VARIOUS DESIGNATED ACTIONS
| For Trading Transactions (whether buy or sell transactions) |
| |
| Designated actions | Cut-off time |
| Squaring off transactions: | After 2.30 pm |
| For Trading Transactions (whether buy or sell transactions) |
| For buy transactions | Designated actions: | Cut-off time |
| Send full consideration to designated bank account Of PCL | After 2.30 pm |
| For sell transactions | Designated actions: | Cut-off time |
| send full delivery to designated DP account of PCL | After 2.30 pm |
TRADING LIMITS
Stock Exchanges levy daily, ad hoc , special margins from time to time. Mark to market losses are also recovered every day. Besides, keeping in view the volatility in the market, PCL would need 100% margin to be maintained by clients. The trading limit details would be available to each client from time to time under their respective log-in.
Margin Calls
Due to adverse market movement, the margin placed by the client may not support open positions and / or pending orders. Generally, PCL would give intimation of "cut off" if 70% of the margin gets eroded. The client would need to fulfill the margin calls or square off the position.
Payment of Margins
Trading limit for both delivery and square off would be a multiple of clear available balance. The balance so available fulfills the different type of margin requirements described earlier.
Change in Margins
In case of need, PCL may change the trading multiple to meet additional margin requirement. All the transaction including the executed pending settlement would require meeting new trading limit. The client would need to reduce trading position or deposit additional margin to fulfill the shortfall if any Effects of non-payment of margins/non reduction of trading positions
Every time trading limit is varied, following process will be carried out:
- If the current outstanding position of the client is within the new trading limit or margins are adequate, no further action will be taken.
- If the new trading limit is lower than the current trading position of the client, or the margins are inadequate, the client will be asked to do either of the following before the cutoff time A) Reduce the position within the new trading limit and/or B) Remit adequate funds to the designated bank account of PCL,and intimate us with relevant proof for acknowledgement
- In the event of the client failing to take requested Designated Action and his trading position continuing to exceed his limits and/or margins being less than required, PCL WILL UNDERTAKE SQUARE-OFF OPERATION AFTER CUTOFF TIME without further intimation to the client.
- On completion of the SQUARE-OFF process, the gains/losses arising out of the transactions will be credited/debited to his account. His trading limits will be adjusted according to the square-off transactions and new ledger (account) balances.
PCL will have absolute discretion to vary the trading limit of a client or reduce it to zero without assigning any reason whatsoever and it will not be responsible for the ensuing transactions a client may have to carry out or PCL carries out on behalf of the client.
DELIVERY MECHANISM
In case of client's delivery sale transaction, securities for market payin would be met from his demat account (opened through PCL, and has the POA signed in favour of PCL). In case such delivery is not available in the said demat account, the client first ensures that's such delivery is available in the said demat account and then only such a sell transaction is carried out.
In case of client's delivery purchase transaction, PCL will directly credited to client's demat account (opened through PCL). Such credit of share to his said demat account could be subject to receipt of payment or clear ledger balance, for such purchases.
PAYMENT MECHANISM
A client can pay PCL in the following modes
- By sending a demand draft to PCL. The credit for the funds will be given only on realisation of the draft. Please allow atleast 4 days to inquire for credit.
- PCL would intimate other modes of remittance like EFT (electronic funds transfer), internet payment gateway etc. as it ties up with different banks.
PCL will remit the funds to clients in the following method:
- All delivery sale proceeds will be automatically credited on pay out by the Exchange to the account of client maintained with PCL. And the same will be available for his margining requirements and trading limits.
- The client can request PCL to remit funds out of the clear credit balance to their account. PCL would remit requested amount to his bank account, subject to his margin and limits being in order and subject to deduction of any sums due from him to PCL. All such request for payments will be met by keeping the exchange pay-out date in to account.
- PCL will remit funds to client by using RBI Electronic Fund Transfer facility, Internet Payment gateway or demand draft as his most efficient and cost effective at the sole discretion of PCL.
It is agreed and understood that the Client is deemed to have read and understood these Business Rules as well as the general terms and conditions as displayed on the Site. Consequently, PCL shall not be under any obligation to provide Notices to the Client prior to taking any action or exercising any right available to it hereunder.
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