Logo

Terms & Conditions

Please read the following terms carefully

Terms and Conditions

IIFL Securities Limited (hereinafter referred to as IIFL) has prescribed certain eligibility criteria and terms and conditions which are to be followed by the client, before opening trading and demat account through the website of IIFL. The Client is required to go through each and every condition as mentioned below and verify if he/she is eligible to open account with IIFL. If all terms and conditions are acceptable to the client, he/she should mark in I agree and accept column in order to open trading and demat account.

Product Features

  • IIFL Securities Limited provides for “Do It Yourself “concept of Internet trading their by reducing the hassle of paperwork for on boarding client and providing paperless and seamless services to its clients. Following are some of the unique features of the product on offer by IIFL;
  • The product being offered is completely on online , where by client would be able to trade online and experience the other services provided by the Trading Member and Depository Participants online through email / mobile application and online login application unless otherwise mandated under any rules and regulations by the regulatory authorities.
  • This facility is currently available for opening Resident Individual broking and demat account only. Please note Non Individual and NRIs cannot open broking and demat account through this facility.
  • The account number allotted to you is in inactive status to avoid any unauthorized transactions. Transaction will be allowed post activation of your account after completion of account opening formalities. In case the documents submitted along with the application do not comply with the KYC guidelines of IIFL, the application is liable to be rejected.
  • The User Id – chosen by you or allocated to you will remain available for 30 days from the date of selection or allocation of the account number, In case the account does not get activated within 30 days the User ID will not be available for the customer.
  • In case the documents submitted along with the application do not comply with the KYC guidelines of IIFL, the application is liable to be rejected and IIFL will not be liable to refund the Account opening fees and any interest on the amount.
  • The opening of account is subject to realization of the cheque or the online payment received.
  • I/we am / are interested in activating my/our account for avail margin trading funding with India Infoline Limited. I/we hereby authorize you to activate my/our account for the above mentioned funding as per my consent.
  • I/we agree and understand to the terms and conditions of Margin Trading Funding provided by India Infoline Limited. I/we do hereby agree to be bind by such provisions as outlined in these documents and act in accordance with the same while availing the margin trading funding. I/we hereby undertake to refer to the updated policies and procedure as posted on India Infoline website and abide by the same.
  • I/we confirm and agree to receive all the communication such as confirmation of orders/trades, margin calls, decisions/calls to liquidate the collateral/ positions / security on my registered email address or registered mobile number provided with India Infoline Limited send electronically by India Infoline Limited.
  • I/we understand that by availing the funding to trade under Margin Trading, i/we authorize India Infoline Limited to treat all my/our trade in group I securities (further classified by India Infoline), which are not covered by 100 % margin (i.e Cash in ledger) as trades under Margin Trading Funding and accordingly i/we authorize India Infoline Limited to report all such trades to the exchange(s) on next day as Margin Trading Trades.
  • I/we understand and acknowledge that India Infoline Limited would consider entire clear ledger credit balance in normal trading ledger for adjustment against the margin trading funding trades (Ledger) and would levy the interest on the net debit balance in the MTF Ledger
  • I/we understand and agree that the interest would be calculated and levied on a daily basis at the rate mutually agreed between client and IIFL from time to time.

Authorization and Acknowledgement

I/we hereby understand and acknowledge that by agreeing to enter into client-member relationship with IIFL Securities Limited we would have access to product uniqueness and features only on the following conditions are met:

  • I/we understand and acknowledge that IIFL Securities Limited would send ECN (Electronic Contract Notes) and other statements pertaining to Equity and Demat Operations and services to our email id provided by us and verified by IIFL Securities Limited.
  • I/we understand and acknowledge that i/we will receive credits automatically into my/our demat account maintained with IIFL SECURITIES LIMITED.
  • I/we understand and acknowledge that, I/we would like to subscribe for Account Statement (for demat) with monthly periodicity.
  • I/we understand and acknowledge that the PoA is taken from the clients who want to avail internet based trading services. For offering internet based trading services, a Stock Broker requires necessary authorizations for seamless trading, collection of margins as well as settlement of funds and securities and hence the said account would be operated through Power of Attorney.
  • I/we understand and acknowledge that, I/we would like to receive dividend/interest directly to my bank account given during the account opening process through ECS.
  • I/ we understand and confirm that i/we is/are responsible for verifying the data fetched through KRA / UIDAI database and i/we take the responsibility of intimating any changes or modification in the details fetched to IIFL, alongwith necessary documentary evidence. Failing to do so, IIFL reserves the right to act as deemed necessary and fit.
  • I / we authorize that by sharing the Aadhaar Number voluntarily, I/ we have allowed IIFL to access details with UIDAI database and use the data so fetched to complete KYC and do due diligence as required and mandated by SEBI and other regulators.
  • I/we authorize IIFL to use the Aadhaar Number for generating e-signature with the help of a certifying authority (E-Mudra) and affix the same at the relevant places in the KYC form. The e-signature so affixed in the KYC form and other voluntary documents would be equivalent of my agreement to all the terms and conditions as it would have been, had the form be signed by me physically.
  • I/We understand that IIFL may at it absolute discretion, discontinue any of the Services completely or partially without any notice to me/us.
  • I/We understand that investment products are not IIFL objects or other obligations of or guaranteed or insured by IIFL Securities Limited. or their affiliates. They are subject to risk and possible loss of principal. Past Performance is not indicative of future performance. I/We hereby declare the above information is true to the best of my/our knowledge.
  • I/We shall advice IIFL immediately in the manner as agreed by me/us and acceptable to IIFL, in case of any change in the above details and information given by me/us.
  • I/We have read and understood the terms and conditions, disclaimers, privacy policy available at IIFL"s web-site www.indiainfoline.com.
  • All new to IIFL customers, can fund their account online, from specific list of Payment Gateway options. The amount will be credited into customer account post account activation and basis availability of clear funds or receipt of the same by IIFL.
  • While transferring funds through online mode(s), IIFL will not accept any responsibility or liability of whatsoever nature in respect of any loss or damage arising directly or indirectly to the customer out of the decline due to:

  • lack of authorization for any transaction/s,
  • or exceeding the preset limit mutually agreed by the customer and his/her remitting "Bank(s)",
  • or any payment issues arising out of the transaction,
  • or decline of transaction for any other reason/s.
  • I am aware that whenever there are surplus/ idle funds in my ledger, I will place order through system for investing in Mutual Fund including liquid Mutual Fund. Besides I authorize IIFL securities Limited to invest preferably in HDFC Liquid Fund, SBI Liquid Fund or any other liquid schemes to the extent of surplus/idle in my ledger and also redeem the same for meeting payin/ margin requirements in my trading account. I am also aware that this will enable me to earn appreciation through investments in liquid Mutual Fund investments.
  • The trading in the derivative segment as opted by the client at the time of KYC will be activated once the income proof in the form of holdings in the clients’ demat account is available

Please Note:

  • Customer can avail Alerts Services to receive transaction details/information relating to your IIFL account through SMS on the mobile number registered with IIFL All accounts will be opened in the same combination as provided in the Account Opening Form by the Customer or may be updated as per the details updated with UIDAI (Aadhaar) or with KRA
  • All alerts, e-newsletter and promotional mails will be sent to the preferred mobile number and e-mail ID.
  • As per IIFL Policy we can provide only one Userid/Login id for a client opening trading account in Equity. If you are already registered in commodity and you want to open Equity account or vice versa, please note you are requested to use your existing Userid/Login Id and complete the account opening formalities.

TERMS AND CONDITIONS FOR AVAILING THE SERVICES OF DISTRIBUTION OF SECURITIES/ FINANCIAL PRODUCTS AND DIRECT INVESTMENT PRODUCTS OFFERED BY IIFL

  • IIFL Securities Limited (IIFL) being the stock broker is in the business of providing Trading cum Demat Services to its clients. In additions to it, IIFL is also engaged in marketing and distribution of IPOs of Securities of Issuers and registered with the Association of Mutual Funds in India (AMFI) as a Mutual Fund Distributor and other financial products including products offered by its affiliates or group companies. IIFL provides online/offline facility to apply/purchase/ redeem/sale/buyback or otherwise deal in the units of Mutual Funds and other securities including transaction services opted in Account Opening Form (hereinafter referred to as ‘transactions’). The Client wishes to avail of the facilities/services through IIFL on the following terms and conditions set forth herein below. The terms and conditions contained herein are binding on the Client. The Client has agreed to obtain facilities/services from the IIFL after fully understanding the entire terms and conditions. The terms and conditions shall be subject to amendment, if any from time to time at the sole discretion of IIFL and such amendments shall bind on the client. For the purpose of the present Terms and Conditions, National Stock Exchange of India Limited and the Bombay Stock Exchange Limited shall be known as the Exchanges.
    1. The Client shall authorize IIFL by executing a Power of Attorney in the favour of the IIFL to execute instructions of the Client or its authorized representative with regard to the transactions including but not limited to acquire by subscribing to or by purchase of securities and to sell, transfer, endorse the securities (including but not limited to Initial Public Offerings, Buy back offers, right issues etc.) or redeem the same either through Online (using the identification number issued by any Mutual Fund from time to time) or otherwise and/or to sign and execute all transfer deeds whether as transferor or transferee and such other instruments, application and papers as may be necessary for the purpose of acquiring, transferring/ redeeming the same, marking pledge/lien on such securities and/or for transferring the investments in the units of Mutual Fund from one scheme to another or between mutual Funds, to make application for, or to renounce and sign renounciation forms in respect of bonds/debentures, right shares and additional shares of any company/Body/Authority and to receive and hold such rights or additional shares, bonds or debentures.
    2. All instructions given by the Client/ its authorized representative shall be binding on the Client IIFL may furnish a certified copy of the Power of Attorney and other documents on behalf of the Client to the Company/ Registrar/ Mutual Fund or any third party.
    3. The Client agrees that the instructions with regard to the transactions shall be in the Client’s sole name or in the name of the Client jointly with other persons as intimated by the Client.
    4. The instructions with regard to the transactions may be given through by sending email from registered email ID or by making the call from registered telephone number/mobile number or any other reasonable mode as permitted by IIFL .
    5. IIFL may refuse to act on any instructions unless they are given in the manner and form acceptable to IIFL. However, IIFL shall have no responsibility to determine the authenticity of any instructions given or purported to be given by the Client. The Client shall not hold IIFL liable on account of IIFL acting in good faith on instructions given by the Client or its authorized representative.
    6. IIFL at its own discretion may not carry out the Client’s instruction, where the IIFL has reasons to believe (which discretion of IIFL the Client shall not question or dispute) that the instructions are not genuine or are otherwise improper/unclear/raise a doubt. IIFL shall not be liable if any instructions are not carried/ partly carried out for any reason, whatsoever. All transactions are subject to the applicable regulatory norms and/or IIFL’s internal policy requirements.
    7. The Client understands and agrees that the mutual fund/RTA/Issuer Company/stock exchanges/may cancel, close or reject any contract suo-moto without giving any reason thereof. In the event of such cancellation, closure or rejection, IIFL shall be entitled to cancel relative contract(s) with the Client and the Client shall not raise any objection and for it and hold IIFL liable/responsible for it.
    8. In case of Mutual Funds, the Client agrees and acknowledges that IIFL shall provide the facilities as agreed between the parties only in respect of the selected Mutual Funds, with whom IIFL has entered into a separate arrangement/agreement.
    9. The Client undertakes to read all the relevant Offer Documents and addendums thereto and terms and conditions of all schemes of all mutual funds and other issues of securities including but not limited to Initial Public Offerings/Public Offers, Rights issue and Buy Back offers, offered through IIFL’s website or otherwise; before entering into any transactions the Client agrees to abide by the terms, conditions, rules and regulations as applicable from time to time.
    10. The Client shall ensure that the transactions through IIFL are executed in accordance with the applicable laws, byelaws, rules and regulations governing the specific investment product. IIFL may, from time to time, impose and vary limits on the orders which the Client may place, including but not limited to exposure limits, turnover limits and limits as to numbers. The Client agrees that IIFL shall not be responsible for any variation or reduction that may be deemed necessary by IIFL based on its risk perception and other relevant factors.
      The Client understands that direct investments in bonds/debentures/equity/equity related instruments/ mutual fund/venture capital fund may carry significant liquidity, credit and default risk, pricing risk. including the possible loss of principal amount invested. Past results are not a guarantee of future performance; yield or performance fluctuates and may not be a reflection of past results. The Client shall investment after carefully understanding the Investment products. IIFL shall not be liable or held liable for any consequences thereof.
    11. The Client expressly agree and acknowledge that any information contained in the IIFL’s Brochures or other materials or otherwise communicated by IIFL shall not be constructed as investment advice and that all decisions to purchase or sell units/securities made by the Client and shall be on the basis of own personal judgment arrived at after due consideration. IIFL not assure or promise any bonus, interest, dividend, guaranteed returns and profit.
    12. IIFL shall not be under any duty to verify compliance with any restriction on the Client’s investment powers.
    13. The Client is responsible for the personal and bank related details provided by the Client. Neither IIFL nor any of the Mutual Funds/Issuers or their respective Registrars shall accept any liability which may arise as a consequence of the erroneous information provided by the Client.
    14. The Client authorizes the IIFL to disclose/share, all such information pertaining to the Client with the companies/ entities/subsidiaries/affiliates of IIFL or their agents’ Banks/Financial Institutions/Statutory Bodies as may be required from time to time, for the Client to be able to avail of any or all of the services provided by IIFL under this arrangement or any other services. The Client shall undertake not to hold IIFL and/or companies/entities/ subsidiaries/affiliates of IIFL and/or their agents liable or responsible for use of the aforesaid information.
    15. In case of change of address and personal details of the Client, the Clientt shall intimate te same via written letter/email to IIFL of such change. 16) The Client agrees and understands that the folio number of the Client in respect of the Mutual Fund schemes shall be received by IIFL from the Asset Management Company.
    16. The Client agrees that, without prior intimation and acknowledgement of IIFL, the Client shall not deal/liaise with the Issuer Company/Mutual Fund/Asset Management Company or its respective Registrars in respect of the services availed under this agreement.
    17. Further, any change in the details of the Client including but not limited to the Demat account, Bank Account, Address, registered contact number, email ID shall be first intimated to the IIFL who may in turn liaise with the Issuer Company/ Mutual Fund/Asset Management Company or its respective Registrars to update such changes. The Issuer Company/ Mutual Fund/ Asset Management Company or its respective Registrars may reject such requests and in such an event IIFL shall not be liable for any such rejection.
    18. The Client further agrees that the Client shall not close/change the details of the Bank account without prior notification to IIFL and the Client agrees that IIFL may instruct Bank of the Client to reject any such request received from the Client.
    19. The Client shall provide IIFL with its Permanent Account Number (PAN). In the event the Client has mentioned “Not Applicable” against PAN in the Application Form, the Client confirms that the Client is exempted from obtaining a PAN under the provisions of the Income Tax Act, 1961. However, in the event the Client id/application is for Rs. 50,000 or more and PAN is not provided, the Client shall be required to submit Form 60 or Form 61 as the case may be together with permissible documents as proof of address.
    20. The Client acknowledges that the purchase / application instructions shall be processed by IIFL only after sufficient funds to cover the purchase / application price and other costs and charges are received by IIFL.
    21. If after execution of any transaction it is for any reason found that IIFL has not been provided with sufficient funds by the Client, the Client shall pay the deficient amount to IIFL forthwith on demand, failing which IIFL may (but shall not be bound to) square up the transaction at any time at the Client’s sole risk and cost. Any loss arising on such squaring up will be borne solely by the Client and the Client shall pay to the IIFL the additional amount that may be payable by the Client, the IIFL’s demand being conclusive.
    22. The Client declares and confirms that the amount being invested by the Client. Client either directly or through its Power of Attorney holders, in any schemes of all mutual funds or other securities including but not limited to Initial Public Offerings/Public Offers, Rights issue and Buy Back offers is obtained through legitimate sources and is not held or designed for the purpose of contravention of the provisions of any Act, Rules and Regulations or any statue or legislation or any other applicable Laws or any Notifications, directions issued by any Governmental or Statutory Authority from time to time.
    23. In case the Client is a Non-resident Indian, the Client confirms that the funds remitted from abroad are through approved banking channels or from the NRE/NRO/FCNR account.
    24. If for any reasons, IIFL is unable to carry out the transactions as instructed by the Client/Client’s authorized representative to the extent of full quantity of units/securities, the IIFL shall be entitled at its discretion and the Client hereby irrevocably authorizes the IIFL to carry out a transaction of a lesser quantity of units/securities. IIFL shall not be responsible for the nonexecution of the Client’s instructions for the entire quantity or the remaining quantity.
    25. The Client agrees and acknowledges that any instruction given or purported to be given by the Client/its authorized representative before the cut off time as may be intimated by the IIFL to the Client from time to time, will be processed on the same day. Any instruction received after the cut off time will be processed on the next working day, if applicable.
    26. In case of Mutual Fund, applicable Net Asset Value (NAV) shall be as per the Offer Document and SEBI Rules and Regulations. The units of scheme shall be allotted, redeemed or switched, as the case may be, at the NAV prevalent on the date of the application, if the application for purchase, redemption or switch is received by the Fund before the cut-off time as specified on the website and consistent with the terms of the scheme. Any request falling due on holiday would be processed on the next business day and respective NAV would be applicable as per Mutual Funds offer documents.
    27. In case of other securities, the order for purchase, sell, offer under Buy Back etc. shall be accepted by IIFL only if the same is received by the cut off date as indicated on the website and consistent with the terms of the offer.
    28. The Client agrees and acknowledges that after the first purchase transaction in any Mutual Fund, the Client may not be permitted to transact till the folio number is allotted. IIFL does not accept any liability for delay in processing time at the Mutual Fund’s or Registrar’s end.
    29. IIFL shall credit the proceeds of the sale / redemption etc., for any of the Investment Products only after IIFL has received the same unless specifically agreed otherwise.
    30. The Client acknowledges that IIFL or its representatives shall not be under any obligation to provide him with any tax, legal, accounting, investment advice or advice regarding the suitability or profitability of investment of any kind, nor does IIFL or its representatives give any advice or offer any opinion with respect to the nature, potential value or suitability of any particular transaction or investment strategy.
    31. It is explicitly stated herein that the Mutual Fund Schemes/ Offer Documents/other schemes offered by IIFL, have not been/shall not be understood as recommended by the IIFL.
    32. The Client can view his/her/its transactions on the website. A physical copy of the transactions statement or the account statement shall be sent by IIFL only on a written request from the Client.
    33. In case an application is made for Initial Public Offer/Public Offer/Units of Mutual Fund through IIFL, the Client authorizes IIFL to collect on Client’s behalf, the refund amount, if any, from the Issuer Company/Registrar/Asset Management Company/Mutual Fund and subsequently credit the same to Client’s Bank account, after set-off/ adjustment of dues payable by the Client on account of obligations incurred in connection with the application.
    34. The Client further agrees that IIFL shall not be held responsible for non-allotment of securities either fully or partly to Client, for any reason whatsoever. IIFL shall not be held responsible in case due to some reason the bid/application/revision instructions sent by Client is not received by it , or if the bid/application/revision could not be uploaded to the Stock Exchange, or could not be sent to the Bankers/Registrar to the issue.
    35. IIFL shall not be held responsible for non-receipt/delay in/incorrect receipt of fund, if any, from the Registrar/ Company. IIFL shall not be held responsible for incorrect Tax Deduction at Source (TDS) by the Registrar/company, if applicable, or for nonreceipt or delay in/ incorrect receipt of TDS Certificate, if any from the Registrar/Company/ Mutual Fund.
    36. IIFL shall not be liable for any loss or damage caused by reason of failure or delay of the mutual fund to deliver any units purchased even though payment has been made for the same or failure or delay in making payment in respect of any sold though they may have been delivered.
    37. The Client understands that the corporate actions including but not limited to Dividends, declared by the Issuer Company/Mutual Fund shall be directly paid by the Issuer Company/Mutual Fund to the Client’s bank account as detail provided by the Client.
    38. IIFL shall also not be liable to the Client for any delay, failure or refusal of the Mutual Fund/any Issuer Company / Corporation or other body in registering or transferring units to the names of the Clients of for any interest, dividend or other loss caused to the Client arising therefrom.
    39. The Client agrees to provide IIFL with any confirmation/ declaration or any other document that the concerned Issuer/Asset Management Company or any other entity may from time to time require IIFL to collect from the Client in respect of the services offered under this agreement.
    40. IIFL shall not be responsible for any changes in the data of any scheme as carried out in the Offer document or any other documents/material issued by Asset Management company/Issuer Company/Mutual Fund.
    41. IIFL does not accept any liability for delay in processing time at the Mutual Fund’s/Issuer or Registrar’s end. The Client agrees that IIFL shall not be liable or responsible for non execution of any transactions for any reason, whatsoever.
    42. Neither IIFL, nor any of the Mutual Funds/nor the issuer shall be liable for any failure to perform its obligations, to the extent that such performance had been delayed, hindered or prevented by systems failures network errors, delay or loss of data due to the aforesaid, acts of God, floods, epidemics, quarantine, riot or civil commotion and war.
    43. The Client agrees and understands that the application in Mutual Fund/Initial Public Offering shall be subject to the applicable Acts, Rules, Regulations, guidelines, circulars, notifications, and directives issued by the Regulatory Authorities and Offer Document issued by the respective Mutual Fund/ Issuer.
    44. The Client further understands and agrees that he/she shall not place trades at unrealistic prices from current market price of the security or trade in illiquid securities which create artificial liquidity or amounts to manipulation of prices or cross/synchronized trades.
    45. IIFL shall provide its services on a best efforts basis. However IIFL shall not be liable for any failure or for any loss, damage or other costs arising in any way out of:
      a) System failure including failure of ancillary or associated systems, or fluctuation of power, or other acts of God/force majeure;
      b) Accident, transportation, neglect, misuse, errors, frauds on the part of the Client or any agent of the Client or agents or any third party, or
      c) Any fault in any attachments or associated equipments of the Client
      d) Any incidental, special or consequential damages including without limitation of loss of profit.
    46. In the event of disputes, differences, claims and questions between the Parties arising out of these Terms and Conditions or in any way relating hereto or to any provision hereof or the construction or interpretation thereof, the Parties shall first endeavor to settle the same by friendly consultation and, failing such settlement, Both the parties agree to refer any claims and/or disputes to arbitration as per the Rules, Byelaws and Regulations of the Exchange/ regulators and circulars issued thereunder in accordance with the provisions of the Indian Arbitration and Conciliation Act, 1996. The language of Arbitration shall be English.The award of the arbitrator shall be final and binding.
    47. The Client understand that all disputes and differences arising out of, under or in connection with these terms and conditions or anything done hereunder shall be within the exclusive jurisdiction only to the courts of Mumbai. Further these terms and conditions are subject to and shall be construed in accordance with the laws prevalent in India.
    48. The Client understands that in cases of gross negligence, or willful default of Client, IIFL shall be indemnified by the Clients for, any and all costs, charges, expenses, claims, losses or liabilities of any nature (direct or indirect) including reasonable legal fees and expenses incurred and/or suffered by IIFL resulting from any act of omission/commission (or any delay) being committed by the Client.

DEFINITIONS

The terms and conditions prescribed hereunder form part of account opening form, shall be read in conjunction with the rights and obligation as prescribed under SEBI circular no. CIR/MIRSD/16/2011 dated August 22, 2011 and the Rules, Regulations, Bye Laws, Rights and Obligation, Guidelines, Circulars issued by SEBI and Exchanges from time to time.

In these terms and conditions, unless indicated otherwise, specific words and phrases have the meaning as stated hereunder (arranged alphabetically for ease of reading) and the client confirms having read and understood these words and phrases:

  • "Alerts" means a customized SMS or Email Communication sent to clients on their registered E-mail Address or Mobile Number.
  • "Additional Margin" shall mean the incremental margin required to safeguard Margin Trading positions from being squared off.
  • "Client" means a constituent of IIFL who have in his own hand or in any irrefutably electronic mode, agreed to have availed the Funding of Margin Trading and executed Power of Attorney in favour of IIFL and has an existing and valid Account with IIFL. Client shall include Individual, Company, Partnership firm, Trust, Hindu Undivided Family, Association of Person and Body of Individuals etc.
  • "Communication in electronic mode" means alerts send to clients registered E-mail Address or Mobile Number.
  • "India Infoline Limited (IIFL)" means Stock Broker of National Stock Exchange of India Limited (TM Code: 10975) and BSE Limited (Clg No: 179) having obtained prior permission from respective exchange to provide Margin Trading Funding to its clients.
  • "Margin Trading Funding" is the product being offered by IIFL to Clients under the framework of rules, regulations issued by Exchanges/ SEBI from time to time.
  • "SMS" means "Short Messaging Service"
  • "Securities" means all funded and collateral stocks that are permissible set of securities as provided by NSE and BSE from time to time under the margin trading Funding.

SECURITIES ELIGIBLE FOR MARGIN TRADING

  • Equity Shares that are classified as "Group I security" as per SEBI Master circular No. SEBI/HO/MRD/DP/CIR/P/2016/135 dated December 16, 2016, shall be eligible for margin trading Funding and as amended from time and time .IIFL reserves the right to offer or not offer MTF on such list of securities as specified from time to time

MARGIN TRADING FUNDING

  • IIFL at all times shall have the liberty to exercise its right in its sole discretion to determine the extent to which the MTF be made available to the Client.
  • IIFL shall not be bound to grant MTF to the Client (which decision shall be at the sole and exclusive discretion of IIFL) and IIFL shall not be required to provide any reasons thereof nor shall IIFL be liable for any damages (whether direct or consequential or whether financial or non-financial) to the Client by reason of IIFL refusal to grant MTF to the Client.
  • IIFL will extend margin trading Funding on eligible list of securities to client for T+90 days or for further period on fulfillment of conditions specified by IIFL as per its risk management policy

MARGIN REQUIREMENT

  • In order to avail margin trading Funding, initial margin required shall be as under;
  • Category of Stock Applicable margin
    Group I stocks available for trading in the F & O Segment VaR + 3 times of applicable ELM*
    Group I stocks other than F&O stocks VaR + 5 times of applicable ELM*
    * The applicable VaR and ELM shall be as in the cash segment for a particular stock.
  • The client shall ensure maintenance of the aforesaid margin at all times during the period that the margin trading Funding is being availed by the client. The client shall ensure to place the aforesaid margin in the form and manner as may be specified by IIFL from time to time.
  • IIFL may, at its sole and absolute discretion, increase the limit of initial and/or maintenance margin, from time to time. The Client shall abide by such revision, and where there is an upward revision of such margin amount, agree to make up the revised margin immediately, not later than 5 working days from the day of margin call, failing which IIFL may exercise its discretion / right to liquidate the security/ collateral and/or close out the position immediately. It may however, be noted that the initial/ maintenance margins will/shall never be lower than that prescribed by Stock Exchange/ SEBI.
  • In case of short fall in margins, IIFL will make necessary margin calls. On receipt of ‘margin call’, the client shall make good such deficient margin / margin call by placing the further margin immediately, failing which IIFL may exercise its discretion / right to liquidate the security / collateral and / or close out the position immediately depending upon the market conditions and / or the volatility.
  • The Client agrees that the Mark to Market (MTM) process run by IIFL to call for additional margin on Client positions shall be considered as online margin call given to the client. Further, the client has been provided with reports on the trader terminal (TT) itself where he can ascertain details of his existing margin blocked, margins required, MTM loss adjustment, margin shortfall, margin percentage etc. The margin requirement derived by use of these reports and the MTM process run by IIFL to call for additional margin on open positions will be construed as margin call/ demand for the additional margin required by IIFL. Clients are bound to monitor and review their open positions and margin requirements all the times and furnish the additional margin to the Company. IIFL reserves the right to close out the open position at any time in case the Client does not satisfy the additional Margin requirements. The Client shall maintain sufficient margin at all the time to provide for limit and avoid liquidation.
  • IIFL will set up separate risk management policy as amended from time to time, that will be applicable to the transactions done under the Margin Trading Funding.
  • IIFL will clearly indicate on its trader terminal (TT) the additional/ deficient margin to be made good while making "margin call" to the client.

COLLATERALS

  • The initial margin payable by the client to IIFL shall be in the form of cash, cash equivalent or Group I equity shares, with appropriate hair cut as specified in SEBI Master circular no. SEBI/HO/MRD/DP/CIR/P/2016/135 dated December 16, 2016.
  • By agreeing to avail Margin Trading Funding with IIFL, client is deemed to have authorized IIFL to retain and/or pledge the securities provided as collateral or purchased under the Margin Trading Funding and any corporate benefit thereon, if any, till the amount due in respect of the said transaction including the dues to IIFL is paid in full by the client.
  • Client have a right to change the securities collateral offered for Margin Trading Funding at any time with prior notice in writing to IIFL so long as the securities so offered are approved for margin trading Funding.
  • The Stock deposited as collateral with IIFL for availing MTF (Collaterals) and the stocks purchased under the MTF (Funded Stock) shall be identifiable separately and there shall not be any commingling for the purpose of computing funding amount.
  • IIFL will hold and / or will appropriate the credit lying in the Client account and/or any unutilized/ unpledged shares/ securities lying in demat account along with all other demat accounts / Mutual Funds / IPO account of the Client towards the repayment of the outstanding dues thereof under MTF.
  • IIFL is at its discretion to identify the eligible/excess securities available with the client and mark such securities as collateral towards MTF.

EXPOSURE & MAXIMUM PERMISSIBLE EXPOSURE

  • Client Wise :Exposure to any single client at any point of time will not exceed 10% of the borrowed funds by IIFL and 50% of IIFL’s "net worth"
  • Securities Wise :Exposure towards stocks purchased under margin trading Funding and collateral kept in the form of securities will be as per the appropriate Board approved policy in this regard from time to time.
  • Exposure on the increased value of Collaterals :In case of increase in the value of Collaterals, IIFL may at its sole discretion have the option of granting further exposure to the client subject to applicable haircuts. However, no such exposure shall be permitted on the increased value of funded stocks

MARGIN TRADING FACILITIES TRADES

  • By providing the consent for availing margin trading Funding, client authorize India Infoline Limited to consider all his/her/its trades placed by them in group I securities to be treated as trades availed by them under the margin trading Funding and accordingly report such trades to Exchanges subject to availability of margin in form and manner as communicated by IIFL from time to time.
  • If the transaction is entered under margin trading account, there will not be any further confirmation that it is margin trading transaction other than contract note.
  • Client will be free to take the delivery of the securities at any time by repaying the amounts that was paid by IIFL to the Exchange towards the securities bought under margin trading Funding after paying all dues.
  • IIFL shall monitor and review on a continuous basis the client’s position with regards to MTF

INTEREST CALCULATION AND REPORTING OF TRADES

  • India Infoline Limited would consider entire clear credit ledger balance in the clients normal ledger for adjustment against the margin trading Funding trades (Ledger) and only the net debit balance would be considered as funded amount for reporting purpose
  • India Infoline Limited would calculate and levy the interest on the net debit balance in the MTF Ledger.
  • The interest charge would be calculated on a daily basis at the rate specified and published by IIFL from time to time

MODE OF COMMUNICATION

  • IIFL will sent all the confirmation of orders/ trades, margin calls, decision/calls to liquidate the collateral/ positions/ security, Daily Margin Statement, Contract Notes, margin policy on haircuts/ VAR margin, Risk management policies, allowable exposure, specific stock exposure etc through electronic mode on registered email id and/or mobile number of the client updated in the IIFL’s database by the client.

COMPLAINTS RESOLUTION

  • Client shall lodge protest or disagreement with any transaction done under the margin trading Funding within 24 hours from the date of receipt of such document/statements/contract notes/any other communications
  • Any dispute arising between the client and IIFL in connection with the MTF shall be referred to the investor grievance redressal mechanism, arbitration mechanism of the respective stock exchange.
  • IPF (Investor Protection Fund) shall not be available for transactions done on the Stock Exchange, through MTF, in case of any losses suffered in connection with the MTF availed by the client.

LIQUIDATION

  • IIFL may immediately without any notice liquidate the security / collateral and or close out the open positions due to the following events:
    • if any instrument for payment of Margin Money / Monies is / are dishonoured;
    • if the Client violates/breaches any provision of this Arrangement or provides any incorrect or misleading information;
    • if the Client has voluntarily or compulsorily become the subject of any proceedings under any bankruptcy or insolvency law or winding up or liquidation proceedings or has a receiver or liquidator appointed in respect of itself or its assets or makes an application or refers itself to any authority for being declared as a "sick company", relief undertaking, bankrupt or insolvent or seeking financial reconstruction or any other like scheme (by whatever name called) or is dissolved or there is a change in the constitution whether on account of the admission of a new partner or the retirement, death or insolvency of any partner or otherwise;
    • the death, lunacy or other disability of the Client;
    • if there is reasonable apprehension that the Client is unable to pay its outstanding dues or has admitted its inability to pay its dues, as they become payable;
    • if the Client is convicted under any criminal law in force;
    • if any Asset or any Security is seized or made subject to any distress, execution, attachment, injunction or other process order or proceeding or is detained or taken into custody for any reason;
    • default under any other arrangement or Funding with any Stock Broker is made by the Client.
    • there exists any other circumstance, which in the sole opinion of IIFL, is prejudicial to the interests of IIFL;
    • Order passed by any regulatory, courts, statutory bodies etc.
  • All losses and financial charges on account of such liquidation/closing out shall be charged to and borne by the client
  • Whenever the securities are liquidated by IIFL, the contract note issued for such margin call related transaction will carry an asterisk or identifier that the transaction has arisen out of margin call.
  • The client agrees that if the client is not able to maintain adequate margins or defaults in bringing adequate margin against the margin call then India Infoline Limited, to mitigate the risk may take necessary risk measure and liquidate the funded/ collateral securities. During such liquidation the most liquid funded / collateral securities with the highest value would be liquidated first in order to cover the risk of IIFL.
  • In Case of de-merger, merger, amalgamation, rights issue corporate action in any eligible securities the client would be required to make payment 7 days prior to the ex-date. In case of nonpayment, IIFL will liquidate such positions in such securities.
  • Client is required to make good the payment of positions of MTF trades which are held for more than 90 days, failing which IIFL will liquidate such positions

TERMINATION OF RELATIONSHIP

  • Client may close / terminate the Margin Trading Account at any time after paying the dues with prior notice in writing.
  • The margin trading arrangement between IIFL and the client shall be terminated; if the Stock Exchange, for any reason, withdraws the margin trading Facility provided to IIFL or IIFL surrenders the facility or the IIFL ceases to be a member of the stock exchange.
  • The MTF may be withdrawn by IIFL, in the event of client committing any breach of any terms or conditions therein or at any time after due intimation to client allowing such time to liquidate the MTF position as per the agreed liquidation terms without assigning any reason. Similarly, client may opt to terminate the margin trading Funding in the event of IIFL committing any breach of any terms or conditions therein or for any other reason.
  • In the event of termination of this arrangement, the client shall forthwith settle the dues of the IIFL. The IIFL shall be entitled to immediately adjust the Margin Amount against the dues of the client, and the client hereby authorizes the IIFL to make such adjustment.
  • After such adjustment, if the amount is still due to IIFL from the client, the client shall settle the same forthwith. Upon full settlement of all the dues of the client to IIFL, IIFL shall release the balance amount to the client.
  • If the client opts to terminate the margin trading Funding, IIFL shall forthwith return to the client all the collaterals provided and funded securities retained within 5 working days from the date of clearing of all the dues by client.0

OTHERS

  • The funds of one client will not be used to provide MTF to another client, even if the same is authorized by the first client.
  • The Clients Margin Trading Account with no transaction for 90 days will be settled immediately.
  • The daily margin statements sent by IIFL to the client shall identify the margin/ collateral for Margin Trading Separately.
  • The dues, wherever mentioned herein above, includes but not limited to outstanding balances, interest, statutory taxes, duties, charges, penalties etc. in respect of MTF availed by the Client
  • The terms / conditions / Obligations of the Client as amended from time to time shall be irrevocable and shall not be revoked by the death/dissolution/ winding up of the Client.

Next