TradeSmart Online (by VNS) continuously endeavors to improve its products and provide additional facilities to clients. In this process TSO has analyzed the need of the clients and has decided to allow its clients to have delivery buy position in select scripts on payment of Margin only. In case the client opts for this facility, he can buy upto four times of his cash deposit in cash segment depending upon the scrips. TSO has devised a product with the name as “EquiMax”. Important terms and conditions are given below:
Initial Margin means the minimum amount, calculated as a percentage of the transaction value, to be placed by the CLIENT, with VNS, before the actual purchase. VNS will advance the balance amount to meet full settlement obligations.
Maintenance Margin means the minimum amount, calculated as a percentage of the market value of the securities, calculated with respect to the last trading day’s closing price, to be maintained by the CLIENT with VNS.
Margin Amount shall mean such amount as may be required to be placed with VNS in such form and in such manner as may be acceptable to VNS by the CLIENT or as may be prescribed by SEBI, or the Exchange, or by VNS for conducting transactions in Shares.
EquiMax means and refers to the facility pursuant to which part of the transaction value due to the Stock Exchange, at the time of purchase of Shares, shall be paid by VNS on behalf of the CLIENT on CLIENT’s request.
Mark to Market Profit/Loss (MTM Profit/Loss) means the difference between the purchase value of the shares and the marked to market value of these shares.
Mark to Market Value of shares or “MTM Value of Shares” means the value of shares calculated with reference to the previous day’s closing price on the Stock Exchange.
Share/s means and refer to the shares / stock / securities listed on the stock exchange and approved by VNS for the purpose of granting EquiMax funding facility from time to time. The list may vary from time to time.
Delayed payment charges – will be payable at the stipulated rate, on the combined ledger debit.
Delayed payment period – will be counted from the date of purchase transaction leading to debit in the ledger account, to the date of sale transaction or receipt of payment clearing such debit.
Date or dates which do not fall on a working day, shall be construed as reference to the day or date falling on the immediately subsequent Working day.
Terms and conditions:
The CLIENT hereby undertakes to:
1. Place the initial and maintenance margin amounts as VNS may specify to the CLIENT from time to time, subject to requirements specified by SEBI/ Exchanges.
2. Authorize retention of the shares in VNS beneficiary account upon the receipt of the same in the pay out from the Stock Exchange.
3. Pay to the VNS – brokerage, commission, fees, transaction costs, service tax, stamp duty and other taxes / expenses as are prevailing from time to time AND delayed payment charges at the agreed rate as they apply to the CLIENT’s account.
4. Abide by any revision in any of the terms of this margin agreement as may be agreed between the parties.
5. The debit so arrived at in the combined ledger which includes the balances of all the segments, STT, statutory levies, brokerage, clearing charges and expenses and shall be considered for levying delayed payment charges. This delayed payment charges will be in addition to brokerage, statutory and other charges/ expenses.
Client may at any time, but not before the delivery of the Shares has been actually received by VNS, choose to sell the Shares on the Stock Exchange.
In case client chooses to sell shares prior to receipt of confirmation from the Stock Exchange of delivery of Securities against his Purchase, in such situation, the Client shall be fully responsible to bear the losses / costs arising due to auctions / closeout by the Stock Exchange, in the event the delivery against purchase fails to materialize.
VNS will be authorized to retain the shares in its BO account till the funding facility is continued and not specifically closed, even if the transactions lead to intermittent credit in the ledger account at any point of time. In addition, the client should have BO account with VNS depository with power of attorney to sell the shares or place for margin or pledge. VNS can transfer/ pledge these securities to VNS beneficiary account/ bank/ clearing member/ exchange for margin or for getting finance or as collateral or for any other reason.
VNS may, at its sole and absolute discretion, revise the limit of initial and/or maintenance margin amount from time to time. The Client agrees and undertakes to abide by such revision, and where there is an upward revision of such margin amount, he agrees to make up the shortfall within such time as VNS may permit, failing which the Client shall be deemed to be in breach of this arrangement.
The Client may furnish further Margin Amount from time to time for availing higher EquiMax Limit. However the minimum and maximum margin trading amount will be fixed by VNS at its sole discretion. Maximum funding in one scrip will also be limited as per discretion of VNS. VNS shall monitor and review the client’s positions on a continuous basis with regard to EquiMax.
In case the margin falls below the stipulated level, the Client shall make further payment to top up the Margin Amount forthwith, failing which the Client shall be deemed to be in breach of this arrangement.
In case margin level goes below the stipulated level, and the client fails to provide further margin, VNS shall be free to dispose of the shares so kept in EquiMax account or the close the position created in derivative segment if any, without any further notice.
Notwithstanding what is stated above, In the event of extreme volatility or some major market sensitive event forthcoming as per discretion and judgement of VNS, VNS may increase the margin selectively or for all scrips or may ask full payment of the value of securities. In case the payment from client is not received, VNS may sell the Shares retained in EquiMax account and for this purpose, the Client do hereby expressly authorize such sale.
Due to provisions of monthly/quarterly settlement of the account, the client will pay the balance amount or sell the shares kept in the EquiMax account well before the end of the month/quarter as the case may be.
Detailed procedure is given on the websites tradesmartonline.in
In the case of announcement of rights issue the clients are supposed to pay the balance margin and ask for transfer of respective securities to their BO account. This is important as the forms of rights entitlement are issued to the respective shareholders in their name only. Rights splitting and renouncement has practical problems and hence VNS will not be able to do that. Clients whose shares are left in VNS BO account will be deemed to have not opted for rights and their rights entitlement will lapse.
VNS may, in its sole discretion, determine which Shares is/are to be sold, and/or which contract(s) is/are to be closed. VNS will also be at liberty to decide whether to exercise his right of selling or closing out the position. In such case the loss due to delay in selling or closing out the position will be borne by the client.
Client agrees to pay annual subscription charges of Rs 1000 + service tax to enable this service. The subscription will be on auto renewal annually unless the client specifically directs not to continue with EquiMax funding facility.
EquiMax funding facility can be withdrawn at any point of time at the sole discretion of VNS.
In case EquiMax funding facility is terminated, the amount debit in the combined ledger of the client shall be either paid or securities sold by the client or by VNS in the client account and the proceeds so received will be adjusted against the debit. After such adjustment, if any further amount is due from the Client to VNS, the Client shall settle the same forthwith. Upon full settlement of all the dues of the Client to VNS, VNS shall release the balance amount or securities to the Client.
Jurisdiction for any dispute will be the Competent court in Mumbai only. All other clauses of the client broker agreement (voluntary as well as mandatory) will also be applicable.
With reference to above clauses the respective parameters of EquiMax funding facility will be as under for the time being (subject to revision from time to time for any reason at the discretion of VNS)
1. Initial Margin & Maintenance margin- Cash margin 25% (will vary upward scrip wise).
2. Square off due to MTM losses – If the margin is eroded by 50% and the same is not topped up, the securities will be sold in the market.
3. Minimum initial margin required: Rs 25000.
4. Maximum funding: Rs 20 lacs, funding in one scrip is limited to 10 lacs.
5. Delayed payment charges: @ .05% per day of combined ledger debit.
6. Delayed payment charges period: from the date of buy transaction till the date of sale transaction or receipt of payment from the client.