Policies and Procedures

a. Refusal for Orders for Penny Stocks
Sri Sairam Global Securities Limited shall have absolute discretion to term a stock as “PENNY”. As per our policy, “PENNY STOCK” refers to stocks that appear in the list of illiquid securities issued by the Exchanges every month and any other stocks which Sri Sairam Global Securities may consider to be illiquid. The details of such stocks will be posted on the website of Sri Sairam Global Securities.

Sri Sairam Global Securities, at its discretion, may accept, refuse, or partially accept any buy or sell order for execution from the client in respect of such scrips. Sri Sairam Global Securities may impose restrictions on acceptance of orders in such scrips and may demand appropriate declarations and additional margin from the client before accepting orders for such stocks.

Sri Sairam Global Securities may cancel orders in such scrips received from clients before execution or partial execution, or may place any other kind of restrictions on trading in such scrips without assigning any reason to the client.

Sri Sairam Global Securities shall not be responsible for any consequential opportunity loss or financial loss that a client may incur due to delay or non-execution of orders in penny stocks.

b. Setting up Client’s Exposure Limits
Sri Sairam Global Securities may provide an exposure limit which shall be a multiple (ranging between one to five times) of the clear ledger balance in the client’s account, plus the value of shares provided as collateral, after applying appropriate haircuts.

In the F&O segment, exposure is provided on the value of the initial margin after applying appropriate haircuts on the securities given as collateral. The exposure limit may be changed based on market volatility and the quality of collaterals.

Sri Sairam Global Securities may set different exposure limits for different clients depending on their creditworthiness, integrity, and past conduct. The client agrees that Sri Sairam Global Securities shall not be responsible for any variation, reduction, or imposition of limits or for the client’s inability to place orders through the trading system on account of such changes.

c. Applicable Brokerage Rate
Sri Sairam Global Securities follows the policy of charging brokerage not exceeding the maximum permissible brokerage as per the rules and regulations of the Exchange and SEBI. Brokerage shall be applied as per the rates agreed with the client in the KYC at the time of registration.

The brokerage slab of a client shall be reviewed periodically after assessing the volume and quality of business generated by the client. The brokerage rates may be increased with prospective effect by giving 15 days’ notice through email or postal address registered with Sri Sairam Global Securities.

The brokerage amount charged does not include exchange-related charges or statutory levies. Any applicable taxes imposed by statutory authorities, including securities transaction tax, duties, service tax, GST, etc., shall be borne by the client as applicable from time to time.

d. Imposition of Penalty / Delayed Payment Charges
Clients shall be liable to pay late pay-in or delayed payment charges not exceeding 1.5% per month for failure to meet their pay-in obligations within the prescribed time as per exchange requirements or for any net ledger debit balance.

The client agrees that Sri Sairam Global Securities may impose fines or penalties for any orders, trades, deals, or actions of the client that are contrary to this agreement or to the rules, regulations, and byelaws of the Exchange or any applicable law.

Further, if Sri Sairam Global Securities is required to pay any fine or penalty imposed by any authority due to or in connection with the client’s actions, the same shall be borne by the client.

e. Right to Sell Client’s Securities or Close Client’s Positions Without Notice
Sri Sairam Global Securities shall be entitled to liquidate the client’s securities, including unpaid securities as well as collaterals deposited towards margins, or close out the client’s open positions for non-payment of margins or any other amounts including pay-in obligations, outstanding debts, etc. The proceeds of such liquidation or close-out, if any, shall be adjusted against the client’s liabilities and obligations. Any losses and financial charges arising out of such liquidation or close-out shall be charged to and borne by the client.

In case the margin or security is provided by the client through a banking instrument, Sri Sairam Global Securities shall have absolute discretion to give credit only upon realization of clear proceeds in its bank account. Where margin or security is provided in the form of securities or any other property, Sri Sairam Global Securities is empowered to decline acceptance or accept it at a reduced value by applying appropriate haircuts or by marking it to market. The stock broker has sole discretion to decide the applicable margin percentage depending upon market conditions.

The above actions are at the sole discretion of Sri Sairam Global Securities and may vary from client to client. The company shall not be obligated to undertake such actions compulsorily and shall not be liable to compensate or provide reasons for any omission or delay in selling securities or closing positions.

f. Shortages in Obligations Arising Out of Internal Netting of Trades
The policy for settling shortages arising out of internal netting of trades is as follows:

The securities delivered short shall be purchased from the market on T+2 day and the purchase consideration, including all statutory taxes and levies along with penalties charged by the respective stock exchanges, shall be debited to the short-delivering client.

In case the shares are not available for purchase for any reason, the shortage shall be closed out as per the prevailing rules of the respective exchanges.

g. Conditions Under Which a Client May Not Be Allowed to Take Further Positions or Existing Positions May Be Closed
A client may not be allowed to take further positions or the broker may close existing positions under the following circumstances:

a. Client is unable to meet pay-in obligations as per exchange requirements, irrespective of the value of collaterals available.
b. Long pending debit balance in the client’s account.
c. Margin shortfall not compensated by the client.
d. Dishonor of cheque.
e. Client dealing in illiquid stocks as declared by Sri Sairam Global Securities.
f. Transactions appearing to be suspicious in nature.
g. Where Sri Sairam Global Securities perceives a risk that further trading may not be in the interest of the client or the market.

Temporary Suspension or Closure of Client Account

Sri Sairam Global Securities may carry out periodic review of client accounts and may suspend or close the account under the following circumstances:

If the client has made any material misrepresentation of facts.

If the client is in breach of any term or condition of this agreement.

If any suspicious information is found in sources such as CIBIL, World-Check, etc., or if any legal proceedings are initiated against the client.

If the client appears in the list of debarred entities published by SEBI or any action is taken by NSE, BSE, or SEBI against the client.

An account shall be considered inactive if the client does not trade for a period of six months. Review shall be conducted at the beginning of every month.

Sri Sairam Global Securities may suspend trading in the client’s account (only allowing settlement of shares or ledger balance) under the following conditions:

Client inactive for the last six months.

Client has not cleared dues after repeated reminders.

Physical statements or contract notes are returned undelivered.

Client is reported or known to have expired.

Client lodges a complaint regarding unauthorized trades.

Account is under investigation by any regulatory body.

As per directions of exchanges, SEBI, or any regulatory authority.

On written request from the client.

The client’s account may be closed on written request provided all dues are settled. For reopening, the client must complete KYC formalities again.

h. De-registering a Client
Notwithstanding anything stated in this agreement, Sri Sairam Global Securities shall be entitled to terminate the agreement with immediate effect under the following circumstances:

a. If the client’s actions are prima facie illegal, improper, or intended to manipulate securities prices or disturb normal market functioning.
b. On death, lunacy, or any other disability of the client.
c. If the client is a partnership firm or organization and steps are taken towards dissolution or liquidation.
d. If the client suffers an adverse material change in financial position or defaults in any other agreement with the stock broker.