The Exchanges as well as SEBI has laid down various Rules, Regulations, Bye Laws and guidelines that are to be followed while transacting on an Exchange. As part of our due diligence and risk management we, Pravin Ratilal Share And Stock Brokers Ltd (hereinafter “PRSSB”), through this document has framed out various policies and procedures under the said Rules, Regulations, Bye-laws and guidance with respect to our dealing with the clients for securities market transactions.
All clients are required to take note of the said policies and procedures given herebelow and act accordingly.
1. Refusal of orders for Penny Stocks:
(a) Following type of scrips are categoried under the Penny Stock;
Scrips which are quoting at less than Rs.10/- on any of the Exchanges.
Scrips appearing in the list of illiquid securities issued by the Exchanges periodically.
(b) We shall not entertain orders from any of the client for transacting (either buying or selling) in any penny stocks. However, it would be considered on case to case basis, which shall be at our sole discretion only.
(c) In case any client wants to sell the penny stock already held by them in a Demat account, the same shall be allowed on a case to case basis, at our sole discretion.
(d) Under the above circumstances, the client will have to provide a copy of their Demat Holding wherein the said penny stock is mentioned to be held by the client along with a valid reason for sale of such penny stock.
2. Exposure Limit
Cash Segment :-
Derivative Segment :-
3. Brokerage Rate
(a) According to the Rules, Regulations, Bye Laws and guidelines of the Exchanges / SEBI the maximum brokerage to be charged is 2.50%
(b) The brokerage rate charged by us would be as follows:-
Maximum – 0.75% for delivery based(Subject to a minimum of 10 paise flat)
0.20% for intra-day
c. Initially all new clients will be charged the maximum brokerage as mentioned in point 3(b) above. Thereafter, considering the client's volume of business as well as their financial discipline and risk factor, the brokerage structure could be revised accordingly to a suitable level.
d. Any change in the above rates are subject to change from time to time at the sole discretion of the management. The clients shall be intimated in writing of any increase in the above rates atleast 15 days prior to such increase. However, the clients shall not be intimated of any decrease in the same.
4. Penalty / Delayed payment charges
5. Right to sell client's securities or close client's position
6. Client position
7. Shortage in obligation
If the client defaults in their sale obligation by not delivering the shares sold by them, due to which an internal shortage arises in a particular scrip, then under such circumstances, after informing such defaulting seller client, the share to the extent of shortage due to non-delivery by the seller client will be purchased from the market on the next trading day as and when available, under the concerned seller client’s code. It will then be delivered to the buying client on receipt of the same.
In case the share cannot be purchased back for any reason whatsoever, the same shall be closed out at 20% above the closing price on T day. Any loss of corporate benefit to the buyer shall be recovered from the defaulting seller client. Fines / penalties / charges shall be levied on the selling client on account of internal shortage.
8. Suspending or closing a Client's account
Sometimes, the client may not be willing to undertake any transaction for a certain fixed period of time due to any reason. During such periods, if the client so wishes, they may temporarily suspend or close their trading accounts so as to ensure the safety of their securities and account by submitting a written application duly signed by the holder themselves.
Besides, a clients trading account can also be temporarily suspended or closed by us if a client has reached its exposure limit and the outstanding is not being cleared within the stipulated time period, such accounts would be temporarily suspended till the time the client brings in additional deposit for increasing the exposure limit or clears the outstanding dues.
9. De-registering a Client
Notwithstanding anything to the contrary stated in the agreement, we may at our sole discretion de-register the client's account in the circumstances including but not limited to the following;
In such a case, the company shall have the right to close out the existing positions / contracts, sell the collateral to recover its dues, if any, before de-registering the client's account.
The aforementioned policies and procedures have been framed out under various clauses mentioned in the Rules, Regulations, Bye-laws and guidelines prescribed by SEBI and the Exchanges as well as the amendments brought out from time to time. In case of any contravening clause framed herein, the relevant clause mentioned under the said Rules, Regulations, Bye-laws and guidelines of SEBI and the Exchanges shall overrule such contravening clause.
Attention Investors
1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020
2. Update your mobile number & email Id with your Stock Broker/Depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
3. Pay 20% upfront margin of the transaction value to trade in cash market segment.
4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 & 20200731-7 dated July 31, 2020 and NSE/INSP/45534 & 20200831-45 dated August 31, 2020 and other guidelines issued from time to time in this regard.
5. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.