Company Policy
Prevention of Money Laundering Act
Subject to the requirements under the Prevention of Money Laundering Act ,2002 MLA, guidelines issued by SEBI from time to time, all Clients are requested to note the following Anti Money Laundering(AML) guidelines:

1 No account can be opened in fictitious name or on an anonymous basis.

2 No account will be opened where prospective client is unable to prove/submit:
1. Identity Proof 2. Address Proof 3. PAN Card 4. Bank account particulars and other information/ documents demanded by MTFSL which are essential for account activation as per SEBI guidelines.

3 Complete and correct contact details like Telephone No., Mobile Number, E-mail address should be provided for easy and prompt communication. Any change in these details must be reported to MTFSL promptly.

4 Please indicate your occupation and the Income Range to which you belong at the appropriate place in the KYC(KRA Form). This is very essential. Applications without these details are liable to be rejected. MTFSL may demand proof of income/net worth where it finds necessary. Wherever there is a change in income or financial status, the Client must inform MTFSL along with supporting documents.

5 If you or your family members are connected to any politician or Political party, please indicate the same in KYC(KRA Form).

6 No cash will be accepted by MTFSL under any circumstances. You will make all payments to us by means of an account payee Cheque/DD/Pay Order payable at our branch and similarly all payments due to you shall be paid by means of an account payee cheque/NEFT/RTGS to your Bank Account registered with MTFSL. For Pay Orders (POs)/Demand Drafts (DDs) paid by you for credit of your trading account with MTFSL, you are required to produce a certificate from the Issuing Bank that the DD/PO has been issued by debiting your Bank Account Number (your bank account number to be detailed here) with the Issuing Bank.

7 MTFSL, at its sole discretion, reserves the right to ask for additional information/documents relating to income such as Bank a/c statements, Income Tax returns and/or net worth statements as may be required under PMLA, 2002 from time to time and as a client you are required to provide such information/documents.

8 MTFSL reserves the right to verify the details provided in the KYC by the Client like Residential/Official address, Telephone No. by visiting/calling etc.(as is done in credit card verification). Hence correct and complete details must be given.

9 Apart from the above, under PMLA, 2002 financial intermediaries like us(MTFSL Group) may call for additional disclosures relating to your transactions.

10 Please produce all supporting documents in original together with a self–attested copy. Originals will be returned to you after verification.

11 We hope you will have a happy association with MTFSL.


POLICIES AND PROCEDURES

1 Refusal of orders for penny stocks: The client is aware & agrees that the stock broker may refuse/restrict a client in placing order in certain securities depending on various conditions like volume/value/part of illiquid scrips/Z group of securities, although a client may have credit balance or sufficient margin in the trading account. List of such scrips will be reviewed on a periodical basis. The client agrees that the losses, if any on account of such refusal or due to delay caused by such limits, shall be borne exclusively by the client alone. Stock broker under exceptional circumstances may execute cliental order. The stock broker has the discretion to reject execution of such orders based on its risk-perception.

2 Setting up Client’s exposure limits: The client agrees to abide by the exposure limits, if any, set up by the stock broker/ exchange/clearing corporation/SEBI from time to time. Client agrees that said limit parameters is a dynamic process that is allowed at the discretion of the stock broker based on the market conditions & their risk perception about the market. The stock broker at its sole discretion can give extra exposure or intraday limit to the client, such extra exposure will automatically be squared off by trading mechanism without any further reference to the client approx. 15 minutes before the scheduled closing.

3 Applicable Brokerage Rate: The stock broker is eligible to charge brokerage with respect to transactions effected by it in various segments & shall be as prescribed by the Exchange bye-laws. The stock broker may charge different Brokerage for Deliverable & Intraday transactions. Other levies, charges, service tax etc. will be charged on brokerage as per rules prescribed by Govt/Regulatory Agencies. Brokerage shall be exclusive of statutory levies/bank charges/penalties/DP charges/turnover/courier/ account opening charges.
(a) Brokerage on options contracts shall not exceed 2.5% of the premium amount or Rs.100 (per lot) whichever is higher. Brokerage shall be charged on the premium amount & not on the strike price of the option contract.
(b) The maximum brokerage in dealings on capital market segment of the Exchange shall be 2.5% of contract price exclusive of statutory levies.

4 Imposition of penalty/delayed payment charges: The client is required to pay all amounts due to the stock broker on its due date, failing which the stock broker shall charge delayed payment charges up to the rate of 2% per month on the daily outstanding value. The amount due to broker shall include all types of Margin & Pay-in obligation or on account of any other reason. All fines/penalties/charges for any orders/trades levied upon the client due to its acts/deeds or transactions, or which are contrary to this agreement/rules/ regulation of the Exchange, such will be recovered by the stock broker directly from the client’s account. Further, under instances where the stock broker has been penalized from any authority on account of/as a consequence of orders/trades of the client, the same shall be borne by the client.

5 The right to sell client’s securities or close client’s positions, without giving notice to the client, on account of non-payment of client’s dues: The client shall provide timely funds/securities for purchase/sale of securities to the stock broker for meeting his obligation to the Exchange. In case of client falling short of providing fund/securities, the stock broker has right to close the positions & to sell client’s securities/close client’s position with/without giving prior notice to client on account of non-payment of dues to the extent to Ledger debit &/or to extent of Margin obligation. Broker can liquidate securities bought/collaterals/any other securities given in any other form for clearing client’s obligation.

6 Shortages in obligation arising out of internal netting of trades: The client agrees to the laid down policy & procedure followed for handling shortages arising out of internal netting of trades, as mentioned herein: Close out price will be the Highest Weighted Average price for any day recorded in the scrip from the trading day on which the transaction took place up to the day of auction or the closing price on the day of auction. To summarize, the buyer will get credit as given below:
Highest Weighted Average price (T to T+2) or closing price on T+2 (whichever is higher), +2% (for NIFTY INDEX SCRIPS)
Highest Weighted Average price (T to T+2) or closing price on T+2 (whichever is higher), +5% (for OTHER SCRIPS)
The seller will be debited by the same amount +0.50%penalty (Above defined parameters are subject to change from time to time).

7 Conditions under which a client may not be allowed to take further position or the broker may close the existing position of a client:
In case overall position in a scrip/derivatives contract has reached the Regulators prescribed Exchange limit/ Market Wide Open Interest limit, then client may not be allowed to take further position, till such time Regulator prescribed limits comes down to create a new position. Further, the stock broker may close the existing position of a client to the extent of Debit balances to release Margin from the Exchange. In case the stock broker has sufficient Margin cover on behalf of its client, it may still decide based on market conditions & risk perception not to allow further position or may close the existing position of client.

8 Temporary Suspension/Closure of Accounts:
(a) The client may request the stock broker for temporary suspension/closure of his trading account by sending a written request to Branch. This request will be in turn sent by Branch to Head Office for further processing where after verification of the client details, the trading account of the client will be suspended.
(b) The client would be required to clear all his dues/settlement of obligations before his account is temporarily suspended. The client may also be required to fulfill other conditions, on a case to case basis.
(c) The stock broker can withhold the payouts of client & suspend/close his trading account due to any internal/regulatory action.
(d) Upon Suspension/closure of trading account, intimation will be sent to the client within 15 days of suspension.

9 Deregistering a client: In addition to what client has agreed in the agreement, stock broker may terminate a client with immediate effect, but not limited to the following reasons:
(a) If the client is debarred by SEBI or any other regulatory authority.
(b) As a part of surveillance measure, if a client appears to be indulging in manipulative practices.
(c) Under the circumstances when there is a reasonable ground to believe that the client is unable to clear its dues or has admitted its inability to pay its debt.
(d) If the client violated any of the terms of the agreement.

NSE: INB 230793938, INF 230793938, INE 230793938 NSDL: IN-DP-NSDL-160-2000 BSE : INB 010793934
INF 010793934 RCM Broking Services Ltd. DSE: INB050755639

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