Policy Procedures

  1. Refusal of orders for penny stocks:

    Member is advising clients not to deal in penny stocks and if the client deals with penny stocks, 100% margin will be taken from the client and these shares will not be taken as Margin deposit. Member shall have authority from time to time to limit quantity/value or refuse orders in one or more securities due to various reasons including market liquidity, value of security(ies) or may require compulsory settlement/advance payment of expected settlement value/delivery of securities for settlement/advance payment of expected settlement value/delivery of securities for settlement prior to acceptance/placement of order(s) as well, the order being for securities which are not in the permitted list of the stock broker/exchange(s)/SEBI or does not commensurate with the risk profile of the client as assessed by the Member. Decision of member will be binding on the client and losses if any on account of such refusal shall be borne by the client only.

  2. Setting up client’s Exposure Limits:

    The stock broker may from time to time impose and vary limits on the orders that the client can place through the stock broker’s 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 the stock broker may need to vary or reduce the limits or impose new limits urgently on the basis of the stock broker’s risk perception, risk profile of the client and other factors considered relevant by the stock broker 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 the stock broker may be unable to inform the client of such variation, reduction or imposition in advance. The client agrees that the stock broker shall not be responsible for such variation, reduction or imposition or the client’s inability to route any order through the stock broker’s trading system on account of any such variation, reduction or imposition of limits. The client further agrees that the stock broker 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 the stock broker, 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.

    We have deposit based RMS system. Total deposits of the clients (Client ledger and Securities of the client) are uploaded in the system and client may take exposure based on margin applicable for respective security as per VAR based margining system of the stock exchange and/or margin defined by RMS based on their perception and/or the multiples of the total deposit and MTM are specified for each client based on the client risk profile. The client understands that in Equity Segment, all orders are to be placed under “Margin” (Both buy and sell) for intraday square-off and under “Delivery” (Both buy and sell) for Delivery Obligation. For “Margin” trades, client confirms that all the open positions will be closed by client before 15 minutes of the scheduled closing of the market. Failing which, the client confirms that Trading Mechanism of the member will close all the open positions at the market rate and the client undertakes to fulfill this obligation arising out of such closure by the trading mechanism. Further, client understands that, in case, the trading mechanism has not closed client’s open positions due to some technical reasons, he/she will be still liable for any consequences arising out of the non-closure of all such open positions. Hence, member advices client to close all open “Margin” positions, 15 minutes before the scheduled closing of the market. Further, client understands that all the sales made in delivery will be against the delivery available in its account. However, if the client makes sales against any pending delivery purchases from the member, the client will be wholly and solely responsible for any non-receipt of such delivery from the opposite party ie., Exchange/another client as the case may be.

  3. Applicable Brokerage Rate

    1. For Cash Market Segment: The maximum brokerage chargeable in relation to trades effected in the Securities admitted to dealings on the Capital Market segment of the Exchange shall be 2.5 % of the contract price exclusive of statutory levies. It is hereby further clarified that where the sale/purchase value of a share is Rs.10/- or less, a maximum brokerage of 25 paisa per share may be charged.
    2. For Option contracts: Brokerage for option contracts would not exceed Rs.100/- per lot single side (in NSE) or such other rates as provided by the exchanges from time to time.
  4. Imposition of penalty/delayed payment charges by either party, specifying the rate and the period (This must not result in funding by the broker in contravention of the applicable laws)

    Clients will be liable to pay late pay in/delayed payment charges for not making payment of their pay in/margin obligation on time, as per the exchange requirement/schedule at the rate upto 2% per month. Similarly, the stock broker will also be liable to pay delayed payment charges to the client for not making payment of their obligation on time, as per the Exchange requirement/schedule at the rate of 2% p.m., except in the cases covered by the “Running Account Authorisation” given by the client to the stock broker. The client agrees that the stock broker may impose fines/penalties for any orders/trades/deals/actions of the client which are contrary to this agreement/rules/regulations/bye laws of the exchange or any other law for the time being in force, at such rates and in such form as it may deem fit. Further, where the stock broker has 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, the same shall be borne by the client. All fines/penalties and charges levied upon the Client due to its acts/deeds or transactions by NSE/Clearing Corp/SEBI or any other authority on Dhwani Stocks & Shares will be recovered by the Stock Broker directly from the client’s account.

  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 (This shall be limited to the extent of settlement/margin obligation)

    1. If Payment/Securities towards the Pay-in Obligation/Margin/Shortfall in Margin/Market-To-Market losses/Debit in the Clientele Account are not received instantaneously, all or some of the positions of the Client and/or the Client’s Securities may be liquidated by the Member at its sole discretion, without any reference or prior notice to the client. The resultant or associated losses that may occur due to such squaring off or sale of securities shall be borne by the Client, and Member is hereby fully indemnified and held harmless by the Client in this behalf. Such liquidation or close out of positions shall apply to any Exchange (s)/Segment (s) in which client does business with the member.
    2. Benefit of the margin pay will be given only after realization of the relevant instrument.
    3. If the client gives orders/trades in the anticipation of the required securities being available subsequently for pay in through anticipated payout from the exchange or through borrowing or any off market delivery(s) and if such anticipated availability does not materialize in actual availability of securities / funds for pay in for any reason before the close of market.
      1. The stock broker has the right but not the obligation, to cancel all pending orders and to sell/close/liquidate all open positions/securities/shares at the pre-defined square off time or when Mark to Market (M-T-M) percentage reaches or crosses stipulated margin percentage, whichever is earlier. Similarly all transactions outstanding whatsoever name called may be closed out at specified time if not squared off by the client.
      2. In case, of delivery taken or losses incurred on any particular date, the same is payable to the member before the commencement of the next trading day. Failing, which the Member has the right to sell the client’s securities/close position towards the adjustment of such debit any time after the start of next trading day.
    4. In case open position (i.e., short/long) in “Margin” gets converted into delivery due to non square off because of any reason whatsoever, the client agrees to provide securities/funds to fulfill the pay-in obligation failing which the client will have to face auctions or internal close outs; in addition to this the client will have to pay penalties and charges levied by exchange in actual and losses; if any.
    5. Any reference in these terms to sale or transfer of securities by the Stock Broker shall be deemed to include sale of the securities which form part of the Margin maintained by the Client with the Stock Broker.
  6. Shortages in obligations arising out of internal netting of trades

    Stock broker shall not be obliged to deliver any securities or pay any money to the client unless and until the same has been received by the stock broker from the exchange, the Clearing Corporation/Clearing House or other company or entity liable to make the payment and the client has fulfilled his/her/its obligations first.
    The policy and procedure for settlement of shortages in obligations arising out of internal netting of trades is as under:

    1. The short delivering seller is debited an provisional amount equivalent to 20% above of closing rate of day prior to Pay-in/Payout Day. In case of short/no delivery from another Client of DSAS, DSAS will at its discretion, close out the short delivery seller position at 4% higher than the Current market price during the auction process for the relevant trading and will credit the same to the buying client along with reversal entry of provisional amount debited earlier to the short delivery seller.
    2. If securities cannot be closed – out (in case scrip hitting upper limits) in market due to any force majeure condition, the short delivering seller is debited at the rate of 10 % above the official closing rate on T+3 day or Auction day on Exchange or the highest traded price from first trading day of the settlement till the auction day and the buyer is credited this amount. Where the delivery is matched partially or fully at the Exchange Clearing, the delivering and debits/credits shall be as per Exchange Debits and Credits after deducting necessary penalties.
    3. In cases of securities having corporate actions all cases of short delivery of cum transactions which cannot be auctioned on cum basis or where the cum basis auction payout is after the book closure / record date, would be compulsoryly closed out at higher of 10% above the official closing price on the auction day by debiting the seller and credit of buyer.
  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.

    We have margin based RMS system. Client may take exposure upto the amount of margin available with us. Client may not be allowed to take position/the existing position of the client is also liable to square off/close out without giving notice due to following reasons;

    1. In case of non-availability/shortage of margin as per our RMS policy of the company.
    2. Due to shortage of margin/not making of payment for their pay-in obligation/outstanding debts.
    3. For non-payment or erosion of margins or other amounts, outstanding debts, etc. and adjust the proceeds of such liquidation/close out, if any, against the client’s liabilities/obligations.
    4. Any order which is executed without the required Margin in the Client’s account or the broker’s exposure is more than 70 % and above with exchange, hence no fresh trade will be taken.
    5. The client hereby authorizes the Stock Broker to square up all his outstanding positions at the discretion of the Stock Broker, which are not marked for delivery 15 minutes before the closing time of the normal market or if the client’s margin is evaporated by 80% in any of exchanges, the Stock Broker reserves the right to square off positions.
    6. Under certain market conditions, it may be difficult or impossible to liquidate a position in the market at a reasonable price or at all, when there are no outstanding orders either on the buy side or the sell side, or if trading is halted in a security due to any action on account of unusual trading activity or stock hitting circuit filters or for any other reason as prescribed or instructed by SEBI.
    7. The stock broker is entitled to disable/freeze the account or trading facility/any other service if, in the opinion of the stock broker, the client has committed a crime, fraud or has acted in contradiction of this agreement or evade/violate any laws, rules, regulations, directions of a lawful authority whether Indian or foreign or if the stock broker so apprehends.

    Any profit/loss arising out of these transactions shall be at the risk of and borne by the client

  8. Temporarily suspending or closing a client’s account at the client’s request.

    On the request of the client in writing, the client account can be suspended temporarily and same can be activated on the written request of the client only. During the period client account is suspended, the market transaction in the client account will be prohibited. However, client shares/ledger balance settlement can take place.
    On the request of the client in writing, the client account can be closed provided the client account has been settled fully and “No Dues/No Claim” letter has been issued by the client. In case, when “No Dues/No claim letter, has been issued, one client will not make thereafter any fresh complaint/claim/revive any settled claims/nor client will seek any reference to arbitration in respect of any claim. If the client wants to reopen the account in that case, client has to again complete the KYC requirement.

  9. Deregistering a client

    Notwithstanding anything to the contrary stated in the agreement, the stock broker shall be entitled to terminate the agreement with immediate effect in any of the following circumstances:
    1. If there is any commencement of a legal process against the client under any law in force;
    2. On the death/lunacy or other disability of the Client;
    3. If the client being a partnership firm, has any steps taken by the Client and/or its partners for dissolution of the partnership;
    4. If the client suffers any adverse material change in his/her/its financial position or defaults in any other agreement with the Stock broker;
    5. If there is reasonable apprehension that the Client is unable to pay its debts or the Client ‘has admitted its inability to pay its debts, as they become payable;
    6. If the Client is in breach of any term, condition or covenant of this Agreement;
    7. If the Client has made any material misrepresentation of facts, including (without limitation) in relation to the Security;
    8. If a receiver, administrator or liquidator has been appointed or allowed to be appointed of all or any part of the undertaking of the client;
    9. If the Client have taken or suffered to be taken any action for its reorganization, liquidation or dissolution;
    10. If the Client has voluntarily or compulsorily become the subject of proceedings under any bankruptcy or insolvency law or being a company, goes into liquidation or has a receiver appointed in respect of its assets or refers itself to the Board for Industrial and Financial Reconstruction or under any other law providing protection as a relief undertaking;
    11. If any covenant or warranty of the Client is incorrect or untrue in any material respect;

    However before deregistering, client will be liable first to settle his account in full. In case, of any shortfall or any dues or payment remaining after adjusting the margin account, the client will be liable to make payment of the same. And in case of surplus arising out after netting of account, client shall be entitled to receipt thereof.

  10. Inactive Client account

    Client account will be considered as inactive, if the client does not trade anytime in a particular financial year. The same will be checked before beginning of every financial year and those clients who have not traded even a single time in the preceding financial year, will be considered as inactive, the shares/credit ledger balance if any will be transferred to the client within one week of the identifying the client as inactive. The client has to make written request for reactivation of their account.
  11. In addition to client based business DSAS does proprietary trading.

    Client Acceptance of Policies and Procedures stated hereinabove

    I/We have fully understood the same and do hereby sign the same and agree not to call into question the validity, enforceability and applicability of any provision/clauses this document any circumstances whatsoever. These Policies and Procedures may be amended/changed unilaterally by the broker, provided the change is informed to me/us through any one or more means or methods. I/We agree never to challenge the same on any grounds including delayed receipt/non receipt or any other reasons whatsoever. These Policies and Procedures shall always be read along with the agreement and shall be compulsorily referred to while deciding any dispute/difference or claim between me/us and stock broker before any court of law/judicial/adjudicating authority including arbitrator/mediator etc.,