KARVY BROKER CLIENT AGREEMENT
TERMS AND CONDITIONS GOVERNING INTERNET BASED TRADING
Please read the
following instructions before signing the client agreement
1. Client
(first holder) should initial at the places marked with a
#. ( Total of 10 initials along side markings and at the bottom of each
page)
2. Only
the first holder signs on the client agreement. ( 1signature)
3. The
client agreement should be witnessed
4. Please
read the general instructions mentioned in the instruction booklet
DESCRIPTION OF PARTIES
This agreement is entered into on
----/-----/------- between Karvy Stock Broking Limited, member broker # of the National Stock Exchange of India
Limited, ordinarily carrying on business in sale and purchase of securities and is bearing
SEBI Registration Number INB 230770138 and carrying on such business in the
name and style of Karvy Stock Broking Limited from its registered office at 529, Road No.4, Banjara Hills Hyderabad
500 034, Andhra Pradesh, India (hereinafter referred to as the “member
broker”, which expression shall unless repugnant to the context or meaning thereof,
be deemed to mean and include its legal successors and permitted assigns)
------First Holder’s Name------- an individual s/o -----Father’s / Husband’s Name---------- residing at # Address-------------- intending to
transact in securities using the services of the member broker, through the online trading
terminal of the said member broker (hereinafter referred to as “the client”
which expression shall, unless repugnant to the context or meaning thereof, be deemed to
mean and include its legal successors and permitted assigns)
WHEREAS:
A. The member broker is a member of National Stock Exchange of India Limited (hereinafter referred to as “the exchange”) and holds a certificate of registration granted under Rule 4 of the Securities and exchange Board of India (Stock Brokers and Stock Sub-Brokers) Rules and Regulations, 1992 ; AND
B.
The
member broker offers online trading services to the client, subject to the terms of the
present agreement and the SEBI guidelines in this regard.
C.
The
member broker and the client are required to enter into an agreement laying down the scope
of their authority/ responsibility, in relation to the transactions in securities using
the online trading facilities that the member
broker makes available to them
D.
The
client is desirous of investing/ trading in securities admitted for dealing on the
National Stock Exchange as defined by the bye-law of the said Exchange through online
trading services by the member broker.
E.
The
member broker is satisfied and shall continuously satisfy themselves of the genuineness
and financial soundness of the client and investment objectives relevant to the services
to be provided.
F.
The
client is satisfied with the capability of the member broker to deal in securities on
behalf of them and the client shall continue to satisfy themselves of the same before
executing orders through the online trading facilities of such member broker.
G.
The
member broker has taken steps and shall take steps to make the client aware of the precise
nature of the member broker’s liability for business to be conducted, including any
limitations on that liability and the capacity in which it acts.
NOW IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:
1. INTERPRETATION
OF RECITALS
The recitals form an
integral part of this agreement.
2. DEFINITIONS
2.1 For the purposes of this
agreement
(f) “Trading Account” shall mean a rupee account opened
by the client with the member broker, which is linked to the online
trading facility through the web-site.
(ii) Sale
of securities in excess of the securities available in the demat account of the seller on
the date
when the order is placed on the website.
2.2 All words and terms not
defined in this agreement or on the website mentioned above shall take on the same
meanings as may be attributed in terms of the SEBI / Exchange Guidelines, Rules and
regulations.
3. REPRESENTATIONS
AND WARRANTIES
3.1 The clients hereby warrant
that they are capable of executing the present agreement and that the terms of the
presents are not in contravention of any
rights of any party with whom such client has any agreements any time prior to the
execution of this Agreement.
3.2 The clients warrant that they
have, maintain and operate a valid account with a designated bank. The clients state that
they have opened a valid and subsisting Demat Account with a designated depository
participant.
3.3 The clients agree to provide
and continue to provide all details about themselves as may be required by the member
broker including but not restricted to PAN Number, and state that all details and facts
represented to the member broker are true.
3.4 The member broker states that
they have complied with all statutory and regulatory requirements to offer the Online
Trading Services through the website www.karvy.com.
3.5 The clients warrant that all
or any securities deposited by them with the member broker in respect of margin trading
requirements or otherwise, are owned by them and that the title thereof is clear and free
of encumbrances.
4. REGISTRATION
AND ACCOUNT OPENING
4.1 The member broker shall,
after registration, permit the registered user, a trading password which enables him/her
/them to avail of the facilities of Online Trading through the said website. All terms
regarding the use and modification of such password shall be governed by information on
the website. The clients are aware that authentication technologies and strict security
measures are required for the Internet trading through order routed system and undertake
to ensure that the password of the client and /or of their authorized representative are
not revealed to any third party. The clients also agree to indemnify the member broker
from any loss, injury, claim or any action instituted against the member arising from the
misuse of the password by any party.
4.2 The services on the website
shall be available to the reregistered user subject to the terms and conditions mentioned
thereof.
4.3 The clients shall furnish a
duly filled application form to the member broker indicating their intention to transact
in securities using the Online Trading facilities on the website, in the format supplied
by the member broker.
4.4 The clients shall provide to
the member broker, a power of attorney authorizing the member broker to
debit/credit/block/create lien/pledge clients depository accounts through their authorized
personnel, to the extent of the transaction conducted by the said clients any due and payable to the member broker.
4.5 The clients shall authorize
the member broker to debit/credit or block his bank account in the manner as per the
procedure laid down in the terms and conditions and as per practices followed by the bank
in this regard. The clients also authorize the member broker to create lien on the amount
lying in their bank account in the manner specified in the terms and conditions.
4.6 The member broker, after
satisfying themselves that the pre-requisites have been met by the clients, may register
the clients as a registered user of the website and the Online Trading facilities may be
made available to the clients.
4.7 The member broker may. Open one or more
accounts in the name of the registered user in the books of the member broker.
4.8 The clients agrees that all
the orders placed by them for securities through the website shall be within the
parameters defined and mentioned in the terms and conditions.
5. TRADING
5.1 TRADING ACCOUNTS
1. The
clients agree to open a trading account with the member broker.
2. The
clients agree that the member broker may require the clients at any time during the
subsistence of the presents, to open one or more trading accounts. The clients agrees that
the debit/credit for all the transactions may be effected in this/these accounts, or
between such accounts, in the manner deemed fit by the member broker.
3. The
Clients agree that they shall place orders for the purchase of securities in respect of
delivery accounts where the securities to be purchased are of a value that shall not, in
aggregate exceed teh advance paid by the clients into such trading account or the amount
in the bank account and such monies shall be blocked in favor of the member broker by the
bank, or the securities in the demat account shall be blocked in favor of the member
broker, as the case may be.
4. The
clients agree that they shall place orders for the purchase of securities in respect of
margin trading, they shall be bound by the rules in this regard that are made applicable
to them by mention in the terms and conditions on the web-site and as modified from time
to time.
5. The
clients agree that they shall be required to make such margin payments as are payable, as
per the time schedule prescribed by the member broker by mention on the terms and
conditions, from time to time. Such margin payments, if any, shall be payable in cash or
securities as specified by the member broker in the terms and conditions or any section of
the web-site and modified from time to time. Provided that the securities, if any,
accepted as margins, shall be valued by the member broker as per the terms and conditions
on the web-site.
6. The
Client authorizes member broker to pledge these securities with exchange to meet
margin/capital adequacy requirement of member broker. He further authorizes the member broker to sell these securities to recover
any dues payable by him to member broker.
7. The
clients agree that all payments due to the member broker will be made within the specified
time and in the event of any delay, the member broker may refuse, at their discretion, to
carry out transactions on behalf of the clients. The clients agree that alternatively, the
member broker may, at their sole discretion, square off such transactions and the
costs/losses if any, thereof shall be borne solely and completely by the clients.
8. The
clients agree, that without prejudice to any other remedy or right prescribed in the
presents, the member broker may charge daily interest at the rate of 2% per month for any
delay in the payment charges, margin or any other sum due to the member as may be
applicable.
5.2 BANK ACCOUNT
1. The
clients agree that the member broker may, at any time during the subsistence of any
arrangement relating to the subject matter of the presents, require the clients to open
one or more accounts with a designated bank. The clients agree that the debit/credit for
all the transactions may be effected in this/these accounts.
2. The
clients agrees that member broker shall have the right, at any time during the subsistence
of this agreement, to give any instructions to the banks with whom they have affiliations
or any other arrangement, in respect of the account of the clients maintained with such
bank. The clients agree that they shall have no cause of action in respect of any
instruction that may be given to the bank in respect of their accounts maintained with
such bank in pursuance of the presents.
3. The
clients agree that the member broker may, without assigning any reason thereof, and
without issuing any notice of the same to the clients, reveal information available with
the member broker in the course of the arrangement with the clients, to the bank with whom
such clients maintain bank accounts pursuant to the presents, and the clients shall have
no remedy therefrom.
4. The
clients shall agree that in the event that the designated bank terminates the agreement
with the clients in respect of the bank account maintained by the clients with such
designated bank, for any reason or informs the member broker of any misdemeanor or
transgression by the clients in the operation of the account or in any other circumstance
resulting in the closure or in operation of the said bank account with the designated
bank, the member broker may, at their discretion terminate services to the clients and the
clients shall have no remedy therefrom.
5. Notwithstanding
anything contained in any other agreement or arrangement, if any, between the parties
hereto, the clients hereby authorize the member broker to release all payments due to them
from the trading account maintained with the member broker, against specific request in
that behalf made in the manner and following the procedure laid down in the terms and
conditions. For the purposes of this clause, any request made through or on the web-site
shall be sufficient for the member broker to execute an instruction.
5.3 DEMAT ACCOUNT
1. The
clients agree to open, maintain and operate a valid demat account with the designated
depository participant.
2. The
clients agree that the member broker may require the clients, at any time during the
subsistence of any arrangement relating to the subject matter of the presents, to open one
or more demat accounts. The clients agree that the debit/credit for all the transactions
are to be effected in this/these accounts.
5.4 ORDERS
1. The
clients agree that all the orders placed through the web-site shall be forwarded by the
system to the National Stock Exchange Limited, as may be applicable, in respect of the
arrangement between the parties.
2. The
clients agree that if, any circumstance or for any reason, the market closes before the
acceptance of the Order by the Exchange, the Order may be rejected. The clients agree
further, that the member broker may reject Orders if the same are rejected by the Stock
Exchange for any reason. In case of rejection of an order due to rejection by the
Exchange, the clients agree that the order shall remain declined and shall not be
reprocessed in any event.
3. The
member broker may, at their sole discretion, reject any order placed on the web-site due
to any reason, including but not limited to the non-availability of funds in the trading
account of the clients, non-availability of securities in the Demat account of the clients
with a designated depository participant, insufficiency of margin amount if the clients
opts for margin trading, suspension of scrip-specific trading activities by or on an
Exchange and the applicability of circuit breaker to a scrip in which orders are placed
through the web-site.
4. The
clients are aware that the member broker has provided on the web-site, a facility for
reconfirmation of orders, which are larger that those specified by the member broker's
risk management, and is also aware that the member broker has the discretion to reject the
execution of such orders based on such risk perception.
5. The
clients agree further that the member broker shall have the right to reject any order
placed by the clients for any reason and at any time without notice to the clients.
Provided that the order placed by the clients can only be rejected by the member broker in
the event of impossibility, or pursuant to any of the terms mentioned in this Agreement,
circulars, rules, regulations, notifications, Bye-laws or legislation of any regulatory
authority, or pursuant to any terms/arrangement between the clients and the member broker
or the clients and the depository participant, whether such arrangement is executed prior
to or during the subsistence of this Agreement.
6. The
clients agree that, if the order is not accepted on the web-site for any reason, the
member broker shall have the right to treat the order as having lapsed.
7. The
clients agree that the member broker shall not be liable or responsible for non-execution
of orders placed through the web-site due to the failure of any system or link or due to
any other reason whatsoever.
8. The
member broker, may at their sole discretion permit clients to use the web-site for the
routing of their orders in respect of securities, irrespective of the amount in the
balance of the account of the clients.
9. The
clients agree to abide with and be bound by all the Rules and Circulars that the member
broker may issue from time to time, and all rules, regulations and bye-laws of the
Exchange as are in force pertaining to the transactions on their behalf carried out by the
member broker and the orders place by them on the web-site.
10. The member broker may inform
the clients of the acceptance or rejection of the order placed by the clients through the
web-site, and the reason therefor within the twenty four hours of the placing of such
order through the electronic mode at the e-mail id provided by the clients while
registering for the service on the web-site or as modified thereafter.
11. The systems used by the
member broker for providing Online Trading services are generally capable of assessing the
risk of the clients as soon as the order comes in.
12. Any and all instructions
issued by an authorized representative of the clients shall be binding on the clients in
accordance with the letter authorizing the
said representative to deal on behalf of the
clients. All authentication of the authority of a client to instruct the member broker to
deal on behalf the client shall be determined by the terms in this regard mentioned on the
web-site.
5.5 CLEARING AND SETTLEMENT
1. The
Exchange may cancel a trade suo motu without assigning any reason thereof. In the event of
such cancellation the member broker shall be entitled to cancel the relative contract or
contracts, if any, with the clients.
2. The
member broker may directly credit the demat account of the clients with the designated
depository participant for the purchase of the securities by the clients within forty
eight hours of the receipt of the securities from the exchange on the pay-out day.
Provided that if the order placed by the clients through the web-site is for securities,
which are in the no-delivery period, such securities shall be credited to the trading
account of the clients only at the time of settlement of trades, as per the schedule of
the exchange. However,
(a) If any sum is due from the
clients the member broker may withhold the credit of securities to the said Demat account
of the clients with the designated depository participant.
(b) Delivery arising from an
order placed from the web-site in respect of a margin trading account, may not be credited
to the demat account of the clients but will be disposed of in a manner prescribed in the
terms and conditions.
3. Any
sale delivery not made to the member broker at the time of trade must be made at least
forty-eight hours prior to the pay-out date in respect of the settlement in which such
purchase is made. Losses, if any, that may accrue in the event of a default in completing
the delivery on the Exchange by the member broker resultant of a delay in the delivery by
the clients, shall be borne solely and completely by the clients. Losses for the purposes
of this clause shall include auction debts, if any incurred as a result of non-delivery of
securities on the settlement date on the exchange.
5.6
DEFAULT AND CONSEQUENCES THEREOF
1. The
clients agree that they shall be deemed to have defaulted terms of this agreement in
circumstances including but not restricted to the following:
(a) Any delay in payment of
margins, charges or delivery in respect of this agreement for transactions executed on
behalf of the clients;
(b) Any contravention of the
terms contained in the presents;
(c) Any misrepresentation or
false statement or omission, or misleading information supplied by the clients to the
member broker;
2. The
member broker may terminate the services made available to the clients at any time and
without issuing any notice or assigning any reason thereof.
3. In
the event of a default of this agreement by a clients, the member broker shall be entitled
to any or all of the following courses of action:
a) Immediate
termination of this agreement and provision of services in terms of this agreement.
b) Other
remedies as may be available in terms of the law for the time being in force.
c) Arbitration
in terms of this agreement.
d) Charge of
an amount that shall not exceed the actual losses incurred by the member broker consequent
to the default along with the interest at market rates.
5.7
LIEN
1. All
the funds of the clients in the bank account shall be subject to lien for the discharge of
any or all payments due to the member broker from the clients, or in respect of any other
obligation that clients may have to the member broker.
2. All
securities in the demat account opened in terms of this agreement with a designated
depository participant, shall be subject to lien for the discharge of any or all payments
due to the member broker from the clients or any other obligation that the clients may
have to the member broker and may be held by the member broker as a security against
default by the clients in respect of the services already availed of by the clients.
3. The enforcement of the lien
aforementioned in clauses 5.7.1 and 5.7.2 shall be at the sole and complete discretion of
the member broker and the member broker alone may decide the securities to be sold, if
any.
4. The
clients authorizes the member broker to block securities against pending order or pledge
securities in favor of the member broker against any of the dues. Provided that
requirement may be waived y the member broker, at their discretion, by suitable
modification to the terms and conditions.
5.8
INVESTMENT
ADVICE
1. The
clients agree that the member broker shall not be required to provide the clients with any
form of legal, accounting or tax related advice.
2. The
clients agree that none of the services available on the website shall amount to
investment advice on the part of the member broker.
5.9
MISCELLANEOUS
1. The
clients agree that all decisions with regard to the amount that may be placed as margin,
the exposure available to the clients as against the funds available in the bank account
and the authorized trading limit shall be decided by the member broker at their sole
discretion and no reasons thereof are required to be given to the clients.
2. The
clients agree that that shall be bound by all or any changes or modifications that are
made to this agreement by the member broker, at its sole and complete discretion.
3. The
clients agree that a modification to the terms and conditions on the website shall amount
to a valid modification of the presents.
4. The
clients agree that the member broker may at any time terminate the services available on
the website on the basis of which this agreement is drawn and such termination of services
for any reason shall not be in contravention of the presents. In the event that such
termination occurs the member broker shall not be required to issue any notice to the
clients or assign any reasons thereafter.
5. The
member broker shall issue contract notes in terms of the SEBI (Stock Brokers and Sub
Brokers) Rules and regulations, 1992 within twenty four hours of the execution of the
trade. Such contract note shall be dispatched by the member broker by courier or through
any other mode specified in the terms and conditions mentioned on the website, at the
address mentioned in this agreement or at any other address expressly informed to the
member broker by the clients.
6. The
clients agree that all the transactions executed pursuant to an order placed on the
website shall be subject to the rules of the clearing house of the exchange and that all
trades shall be settled through such clearing house.
7. The
clients agree to be bound by the guidelines, including the rules pertaining to the
adjustment of shortages in clients positions in securities transacted on behalf of such
clients, or any other person by the member broker, wither through orders placed through
the use of the Online Trading services of the member broker or otherwise as may be issued
by the member broker from time to time.
5.10
MODIFICATIONS
1. All
modifications to this Agreement shall be made solely at the discretion of the member
broker and shall be intimated to the clients by a suitable modification to the terms and
conditions or other applicable section on the website.
2. The
client agrees that a modification to the information in the terms and conditions section
on the website or any other applicable section and a display of the modification for the
duration of the applicability of such modification to the circumstances of the clients,
shall be sufficient notice to the Clients, to take note of such modification.
5.11
ASSIGNMENTS
The client agrees that Karvy stock
broking Limited may at any time during the subsistence of the presents without requirement
of issuing any notice to the clients, assign, transfer or otherwise alienate, by executing
an agreement or in any other manner, all or any of their rights and /or obligations in
terms of this agreement to any person or entity including but not limited to their
affiliates, associates or sister companies.
6.
TERMS OF CONSIDERATION
6.1
COMMISSIONS
AND BROKERAGE
All commissions and charges leviable on
transactions in securities pursuant to orders placed on the website shall be payable at
rates mentioned on the website and as may be modified from time to time.
6.2
USER FEES
The clients agree that the member broker
may charge User Fees for the use of any other service including but not restricted to the
Online Trading Services, at a rate mentioned on the website and as may be modified from
time to time.
6.3
DEPOSITORY
CHARGES
The clients agree that the member broker
may debit the demat account charges payable to the depository participant to the trading
account of the clients maintained with the member broker.
6.4
OTHER
CHARGES
The member broker may charge any other
relevant charge in the manner intimated on the website from time to time including but not
limited to Trade Commission, Service Tax, Turnover Charges, Tax Expenses incurred, Stamp
Duty, Margins etc. as applicable.
7. INDEMNITY
7.1 The member broker shall be
indemnified by the client in case of any action initiated against the member broker by the
party not privy to this contract, and it shall be the duty of the client to bear out of
their funds, all costs, losses and expenses which any such member broker may incur or may
become liable to pay, by reason of any event in the course of the use of the said services
by the client.
7.2 In the event of death or
insolvency of the client or his otherwise becoming incapable of receiving and paying for
or delivering or transferring securities which the client has ordered to be bought or
sold, the member broker may close out the transaction of the client and the client or his
legal representative shall be liable for any losses, costs and be entitled to any surplus
which may result therefrom.
8. FORCE MAJEURE
The member broker
shall not be responsible for delay or default in the performance of their obligations due
to contingencies beyond their control, such as fire, flood, civil commotion, earthquake,
war, strikes, failure of the system, failure of Internet links or government/regulatory
actions.
9. TERM AND
TERMINATION
9.1 Both parties shall be entitled to terminate this agreement at will and without giving any reasons to the other party but not without giving a notice in writing of not less than one month that shall be despatched to the addresses mentioned in this agreement. However, such cancellation or termination shall not have any effect on any transaction(s) executed prior to the date of such notice of termination and the rights and obligations in respect of such transactions shall continue to subsist in terms of this agreement, and/or the terms and conditions as may be prescribed.
9.2
This
Agreement shall become effective on the date first written above, subject to Clause 8
above, and shall remain in full force until and unless terminated.
9.3
In
the event of any Governmental action or action from any regulatory authorities debarring
the member broker from carrying on business or rendering it impossible to transact the
business of broking or online trading, this agreement shall stand terminated.
9.4
The
rights and obligations of the Parties under this Agreement which by their nature survive
the termination of this Agreement shall not be extinguished by the termination of this
Agreement.
10. ARBITRATION
10.1
If any dispute arises between the Parties hereto during the
subsistence of this Agreement of thereafter, in connection with or related to the
validity, interpretation, implementation or alleged breach of any provision of this
Agreement, the dispute shall, as far as possible be settled with the help of the officials
of the exchange and if no such settlement is possible the parties hereby agree to refer
such dispute to arbitration in accordance with the rules, bye-laws and regulations of the
said stock exchange. The member broker and client hereby agree that they shall co-operate
with the exchange officials and provide all relevant documents in their possession so as
to expedite the settlement through the arbitration process.
10.2 The member broker and the client hereby agree
that they will assist and co-operate with each other in ensuring faster settlement of any
arbitration proceedings arising out of the present agreement or from the provision of the
online trading services by the member broker and will accept arbitration awards in respect
thereof.
11. APPLICABILITY OF LAW
The provisions of
this agreement shall always be subject to Government notifications, any rules, regulations
and guidelines issued by SEBI and the Stock Exchange rules, regulations and Bye-laws that
may be in force from time to time.
12. JURISDICTION
All trades,
transactions and contracts are subject to the rules and regulations of the exchange and
depository and shall be deemed to be and shall take effect as wholly made, entered into
and be performed in the city of Hyderabad and the parties to such trade shall be deemed to
have submitted to the jurisdiction of the Courts in Hyderabad for the purpose of giving
effect to the provisions of the Rules and regulations of the exchange and the bye-laws and
business rules of the depository.
Client :_______________________________________________________
(First
Holder Name)
Signature :
_______________________________________________________
Witness
By
:_______________________________________________________
Signature :_______________________________________________________
Broker
: KARVY STOCK BROKING LIMITED.
By
:
Signature :
Title
:
DIRECTORY/AUTHORISED SIGNATORY
Witness :