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Ventura Wealth Clients

Margin trading facility


1. I am registered with you as a client pursuant to the submission of KYC and other related documents.

2. I am desirous of carrying out trading in securities under the Margin Trading Facility as permitted by SEBI vide its circular number CIR/MRD/SE/SU/Cir-08/2005 dated March 04, 2005 and NSE’s circular number 340/2017 dated June 30, 2017.

3. I hereby agree to avail the Margin Trading Facility in NSE in accordance with the terms and conditions of the Margin Trading Facility offered by you.

4. I understand that the margin trading facility will be available only in the scrips approved by Ventura Securities Limited (VSL) as per the list of scrips available on www.venturasecurities.com.

5. I understand that VSL may add or delete the scrips available for the margin trading facility without giving me any prior notice.

6. I understand that all the transactions (approved for margin trading) carried out on T day for which payment is not made by 5.00 p.m. on T+1 day shall be treated as transactions under Margin Trading Facility.

7. I agree to pay the brokerage and other levies as per commercial terms agreed by me from time to time.

8. I agree to pay interest of @18 % per annum plus applicable GST/ statutory levies and I understand that the interest shall be debited in my account on weekly basis. I understand that the rate of interest may be subjected to upward or downward revision by VSL.

9. I state that I have read and fully understood the circulars stated in paragraph number 2 above and the Rights and Obligation of Stock Brokers & Clients for Margin Trading Facility as stipulated by NSE. I undertake to abide by it at all points of time.

10. I state that I have read and fully understood the Additional Rights and Obligation Document as stipulated by you and I undertake to abide by it at all points of time.

11. I state that I have read and fully understood your Risk Management System (RMS) Policy that will be followed by you from time to time and I undertake to abide by it at all point of time. I agree and understand that the said RMS policy can be revised at any time as per your sole discretion.

12. I state that I have understood the risks involved in trading under the Margin Trading Facility.

13. I state that I shall send a written request for the withdrawal of securities on email id mtf@ventura1.com and the securities withdrawal request shall be honoured by VSL only upon fulfilment of obligation to the satisfaction of VSL.

14. I state that since I shall be dealing in leveraged products whereby my trades will be funded by you, I shall monitor my account at all time and furnish the amount as required to ensure that the securities or position held in my account is not liquidated for requirement of funds.

15. I understand that the margin call / shortfall in the account shall be made by you through telephone or email or SMS.

16. I understand that I may be called upon to make the payment of all the amount outstanding and due from me as per the time stipulated by you and I agree to abide by it.


RMS POLICY OF VENTURA SECURITIES LIMITED (VSL) FOR MARGIN TRADING FACILITY
  1. VSL shall offer Margin Trading Facility to its clients in accordance with SEBI’s circular number CIR/MRD/SE/SU/Cir-08/2005 dated March 04, 2005 and NSE’s circular number 340/2017 dated June 30, 2017.
  2. The Margin Trading Facility shall be offered only in Group I securities only as per SEBI Master circular no. SEBI/HO/MRD/DP/CIR/P/2016/135 dated December 16, 2016.
  3. VSL shall levy initial margin as applicable in our scrip category on the securities to be funded by it under the Margin Trading Facility. VSL shall accept margin in the form of cash and or cash equivalent and or exchange approved securities at its sole discretion.
  4. VSL may allow client to take position on the basis of margin available in CM or Derivatives segment or on shares held by client in his beneficiary demat account under POA executed in favour of VSL.
  5. VSL shall transfer securities funded by it in specific demat account opened in its name.
  6. VSL may levy higher or lower initial margin at its sole discretion.
  7. VSL may at its sole discretion remove a particular security or securities from the Margin Trading Facility.
  8. VSL shall monitor the positions of the clients on online basis.
  9. VSL as per its own risk perception may demand additional margin or mark to market amount from the client by making margin call or mark to market call on the telephone or email id of the client.
  10. VSL upon the non payment of margin call or mark to market call by client may liquidate the position of the client and also may sell the collaterals lying with it.
  11. The methodology which shall be adopted by VSL for making margin or and mark to market call to clients and liquidating the position and or collateral of the clients shall be as under:-

    A- Value of the Collateral
    B- Value at Risk (VaR)
    C- Net Collateral Value (A-B)
    D- Debit in the Margin Trading or Funded Stock ledger.
    E- Value of the Funded Stock
    F- Mark to Market loss on Funded Stock (D-E)
    G- Margin on Funded Stock (VaR plus Extreme Loss Margin)

    If C-F is ≤ 110% of G 110 % of G then a margin or mark-to-market call will be made on the telephone or email ID of the client.

    If C-F is ≤ 99% of G then VSL shall start liquidating the position and or collateral securities of the client.


RIGHTS AND OBLIGATIONS OF STOCK BROKER & CLIENTS FOR MARGIN TRADING FACILITY (MTF) OF NSE


CLIENT RIGHTS

  1. Client shall receive all communications in a mode mutually agreed between the broker and the client regarding the confirmation of orders/trades, margin calls, the decision to liquidate the position/security.
  2. Client shall be free to take the delivery of the securities at any time by repaying the amounts that was paid by the Stock Broker to the Exchange towards securities after paying all dues.
  3. Client has a right to change the securities collateral offered for Margin Trading Facility at any time so long as the securities so offered are approved for margin trading facility.
  4. Client may close/terminate the Margin Trading Account at any time after paying the dues.


CLIENT OBLIGATIONS

  1. Client shall, in writing in his own hand or in any irrefutable electronic method, agree to avail of Margin Trading Facility in accordance with the terms and conditions of Margin Trading Facility offered by the broker, method of communication for confirmation of orders/trades, margin calls and calls for liquidation of collateral/security/position.
  2. Client shall inform the broker of its intent to shift the identified transaction under Margin Trading Facility within the time lines specified by the broker failing which the transaction will be treated under the normal trading facility
  3. Client shall place the margin amounts as the Stock Broker may specify to the client from time to time.
  4. On receipt of ‘margin call’, the client shall make good such deficiency in the amount of margin placed with the Stock Broker within such time as the Stock Broker may specify.
  5. By agreeing to avail Margin Trading Facility with the broker, client is deemed to have authorized the broker to retain and/or pledge the securities provided as collateral or purchased under the Margin Trading Facility till the amount due in respect of the said transaction including the dues to the broker is paid in full by the client.
  6. Client shall lodge protest or disagreement with any transaction done under the margin trading facility within the timelines as may be agreed between the client and broker.


STOCK BROKER RIGHTS

  1. Stock Broker and client may agree between themselves the terms and condition including commercial terms if any before commencement of MTF.
  2. Stock broker may set up its own risk management policy that will be applicable to the transactions done under the Margin Trading Facility. Stock broker may make amendments there to at any time but give effect to such policy after the amendments are duly communicated to the clients registered under the Margin Trading Facility.
  3. The broker has a right to retain and/or pledge the securities provided as collateral or the securities bought by the client under the Margin Trading Facility.
  4. The broker may liquidate the securities if the client fails to meet the margin call made by the broker as mutually agreed of liquidation terms but not exceeding 5 working days from the day of margin call.


STOCK BROKER OBLIGATIONS

  1. Stock broker shall agree with the client the terms and condition before extending Margin Trading Facility to such client. However, for clients who already have existing trading relationship and want to avail of Margin Trading Facility, stock broker may take consent in writing in his own hand or in any irrefutable electronic method after stock broker has communicated the terms and conditions of Margin Trading Facility to such existing clients.
  2. The terms and conditions of Margin Trading Facility shall be identified separately, in a distinct section if given as a part of account opening agreement.
  3. The mode of communication of order confirmation, margin calls or liquidation of position/security shall be as agreed between the broker and the client and shall be in writing in his own hand or in any irrefutable electronic method. Stock broker shall prescribe and communicate its margin policies on haircuts/ VAR margins subject to minimum requirements specified by SEBI and exchanges from time to time.
  4. The Stock Broker shall monitor and review on a continuous basis the client’s positions with regard to MTF. It is desirable that appropriate alert mechanism is set up through which clients are alerted on possible breach of margin requirements.
  5. Any transaction to be considered for exposure to MTF shall be determined as per the policy of the broker provided that such determination shall happen not later than T + 1 day.
  6. 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.
  7. In case the determination happens after the issuance of contract, the broker shall issue appropriate records to communicate to Client the change in status of transaction from Normal to Margin trading and should include information like the original contract number and the margin statement and the changed data.
  8. The Stock Broker shall make a ‘margin call’ requiring the client to place such margin; any such call shall clearly indicate the additional/deficient margin to be made good.
  9. Time period for liquidation of position/security shall be in accordance declared policy of the broker as applicable to all MTF clients consistently. However, the same should not be later than 5 working (trading) days from the day of ‘margin call’. If securities are liquidated, the contract note issued for such margin call related transactions shall carry an asterisk or identifier that the
    transaction has arisen out of margin call.
  10. The daily margin statements sent by broker to the client shall identify the margin/collateral for Margin Trading separately.
  11. Margin Trading Accounts where there was no transactions for 90 days shall be settled immediately.
  12. The stocks deposited as collateral with the stock broker for availing margin trading facility (Collaterals) and the stocks purchased under the margin trading facility (Funded stocks) shall be identifiable separately and there shall not be any comingling for the purpose of computing funding amount;
  13. Stock Broker shall close/terminate the account of the client forthwith upon receipt of such request from the client subject to the condition that the client has paid dues under Margin Trading Facility.


TERMINATION OF RELATIONSHIP

  1. The margin trading arrangement between the stock broker and the client shall be terminated; if the Stock Exchange, for any reason, withdraws the margin trading facility provided to the Stock Broker or the Stock Broker surrenders the facility or the Stock Broker ceases to be a member of the stock exchange.
  2. The MTF facility may be withdrawn by the broker, in the event of client committing any breach of any terms or conditions therein or at anytime 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 facility in the event of broker committing any breach of any terms or conditions therein or for any other reason.
  3. In the event of termination of this arrangement, the client shall forthwith settle the dues of the Stock Broker. The Stock Broker shall be entitled to immediately adjust the Margin Amount against the dues of the client, and the client hereby authorizes the Stock Broker to make such adjustment.
  4. After such adjustment, if any further amount is due from the client to the Stock Broker, the client shall settle the same forthwith. Upon full settlement of all the dues of the client to the Stock Broker, the Stock Broker shall release the balance amount to the client.
  5. If the client opts to terminate the margin trading facility, broker shall forthwith return to the client all the collaterals provided and funded securities retained on payment of all the dues by clients.


ADDITIONAL RIGHTS AND OBLIGATION DOCUMENT OF VENTURA SECURITIES LIMITED BINDING ON THE CLIENT

  1. The client understands that Margin Trading Facility hereinafter referred to as “MTF”, is a facility offered by Ventura Securities Limited hereinafter referred to as VSL which allows the Client to take positions by providing prescribed margin and the balance amount is funded by VSL to meet the pay-in obligation of the Client . The Client can later take delivery either by making the necessary funds settlement or square up such positions. The client agrees that any fresh position under MTF shall be allowed to be created only when client has provided necessary Margin as specified by VSL. The balance obligation would be funded by VSL and will be paid to the stock exchange for meeting the client’s pay-in obligation. Client then needs to ensure that the available margin is always above the Minimum Margin specified VSL to avoid squaring off the positions.
  2. The client understands that the positions will be permitted to be continued upon fulfilment of the necessary Margin requirements as specified by VSL for the particular scrip from time to time. The client agrees that VSL reserves the right at its discretion to stipulate a maximum time within which Client will have to take the delivery thereof.
  3. The client understands that all the delivery transactions carried out by the client in VSL approved securities in NSE shall be treated as transaction under MTF unless the payment in full is received by VSL on or before 5.00 p.m. on T+1 day.
  4. The client agrees that, securities purchased by the client shall be retained by VSL in its demat account until the client fulfils the contractual obligation for the respective BUY transaction in which the securities are bought. On settlement of the contractual
    obligations to the satisfaction of VSL, the securities will be delivered to the Demat account of the client maintained with VSL as Depository Participant.
  5. The client agrees that VSL may at its discretion, in accordance with its risk management policy, disable certain securities from MTF. In such an event, the client shall be required to make the payment towards such securities within the time stipulated by VSL. The VSL may sell off the securities of the client if the payment is not received by VSL within the time stipulated by it. The client agrees that VSL cannot be held liable for any losses arising out of such disablement or selling off of the security.
  6. The Client confirms that he is aware of the charges and other statutory levies as are prevailing and as they apply to the MTF transactions. The schedule of charges would be subject to change by VSL and statutory levies may change from time to time and client agrees and accepts to comply by these charges.
  7. The client agrees that he/she shall be liable to pay Interest at the rate as may be decided from time to time by VSL. on all outstanding payment beyond the due date (i.e. pay-in-date) by the client to VSL.
  8. The Client understands that under MTF, Client would not be able to take further positions and/or existing positions may be squared off by VSL at its discretion on occurrence of any of the following events:
    (i) If at any point of time total exposure across all stocks of all the Clients of VSL taken together under this facility exceeds the SEBI/Stock Exchange prescribed maximum allowable exposure limit specified for a stock broker. Client agrees that VSL may set this limit at its discretion which can be lower than the limits prescribed by SEBI as part of its risk management process.
    (ii) If the Client exceeds or is about to exceed the maximum allowable exposure for a single Client. Client understands that SEBI has prescribed a maximum limit for allowing exposure to a single Client. Client agrees that VSL may set this single Client exposure limit at its discretion which can be lower than the limits prescribed by SEBI as part of its risk management process.
    (iii) If the total exposure in a particular stock of all the Clients of VSL taken together under this facility reaches the maximum allowable limit for that stock as defined by VSL.
    (iv) If the exposure in a particular stock by a single Client under this facility reaches the maximum allowable limit for that stock for a single Client as defined by VSL.
    (v) If the stock moves out from the list of eligible stocks under MTF and becomes ineligible for offering under MTF.
    (vi) If limit given to the client under MTF is breached.
    (vii) If the available margin in any security has fallen below the minimum margin as stipulated by SEBI / Stock Exchanges.
    (viii) For non payment of margin, additional margin, mark to market amount.
    (ix) For non payment of any amount due to VSL under MTF.
    (x) If MTF relationship is terminated by VSL and amount due under MTF is not paid by the client within timeline stipulated by VSL.
    (xi) Any other circumstances due to change in regulatory requirements from time to time or risk management process due to changing market conditions.
  9. The client understands that presently the Margin Trading Facility is offered by VSL only in NSE. This Facility may be offered subsequently in BSE for which the same terms shall apply unless otherwise communicated.
  10. The client understands that VSL shall be reporting to stock exchanges on a daily basis the details of client’s funded positions/collateral stocks and such other details as may be required by stock exchanges from time to time.
  11. The client understands that client is required to disclose whether he is a promoter or forming part of the promoter group of the stock in which he has taken an MTF position or given as collateral which is required for daily reporting to stock exchanges. In absence of any such disclosure, VSL shall consider the client as a non promoter and will report to stock exchanges accordingly.
  12. The Client understands that regulators have prescribed stocks which are eligible to be offered in MTF. Hence, MTF shall not be offered in all the stocks traded on Stock Exchanges. The client agrees that VSL shall have the discretion to select securities that will be enabled for trading under the MTF as per its internal risk management policy and the number of stocks enabled for trading under MTF by VSL can be smaller than the number of stocks allowed by regulators.
  13. The client agrees that VSL may require the client to provide such margin (in such form and manner as acceptable to VSL) depending on the security and market volatility as it deems fit in its sole discretion as necessary for risk mitigation. This margin requirement may be more than the margin prescribed by SEBI/ stock exchanges. Margin may be taken in cash, Cash equivalent or eligible shares as may be acceptable to VSL.
  14. The Client agrees that VSL may at its sole discretion, change the margin requirement on the Transactions, in which the Client has taken or proposes to take positions depending on its own risk mitigation measures and without intimating or consulting the client. Due to increased volatility in the prices, the margin requirement may be increased and in such event the Client undertakes to allocate additional funds/securities to continue with the open position within the timeframe stipulated by VSL. If such Margin requirement is not met, the position may be squared off by VSL due to insufficient Margin. The Client undertakes to maintain sufficient margin at all times to safeguard the open position from being squared off or pending orders being cancelled.
  15. The Client understands that the Client's positions are continuously monitored and the Client agrees to provide Margin (including additional Margin) as may be determined by VSL from time to time.
  16. The clients undertakes to monitor his position on real time basis and furnish the necessary margin as may be required to safeguard his position from being squared off. The client agrees that the mode of communication to clients pertaining to order/trade confirmation, margin requirements/shortfall and liquidation of stocks will be electronic.
  17. The client understands that Stocks bought under the MTF shall be marked to market on daily basis and collateral stocks as well as securities purchased under MTF shall be revalued frequently. Further, client agrees that no exposure shall be given on increased value of stock funded by VSL.
  18. VSL, at its sole discretion, reserves the right to either temporarily or permanently, withdraw or suspend the Facility at any time without giving any notice or assigning any reason for the same, whether in respect of one or more Clients.
  19. VSL shall decide upon the list of Securities in which the Clients would be permitted to take Positions under MTF. VSL may also at its sole discretion decide to withdraw a particular security from the list without notice to the clients and without assigning any
    reasons whatsoever.
  20. VSL shall decide upon the Security specific Margin applicable for taking Positions in various Securities under the MTF. VSL reserves the right to alter the Security specific Margin applicable for a Security without notice to the Client and without assigning any reasons whatsoever.
  21. No delay in exercising or omission to exercise any right, power or remedy accruing to VSL upon any default by the Client or otherwise under these Right and Obligations document or the Client Agreement shall impair any such right, power or remedy or shall be construed to be a waiver thereof or any acquiescence in such default, nor shall the action or inaction of VSL in respect of any default or any acquiescence by it in any default, affect or impair any right, power or remedy of VSL in respect of any other default. The rights of VSL under these Terms and Conditions and the Client Agreement are cumulative and not exclusive of their rights under the general law and may be waived only in writing and specifically and at the sole discretion of VSL.
  22. The client agrees that in case of any disagreement or dispute pertaining to transactions done under MTF, client shall lodge the complaint within one day of execution of the disputed transaction or such other time as maybe specified by VSL from time to time.
  23. The client agrees and undertakes to provide VSL with all the documents and particulars, which may be required by VSL, pursuant to the Client availing of this Facility.
  24. The use of this facility is entirely voluntary and the facility has to be used in accordance with the applicable rules/ regulations/ guidelines specified by the Securities and Exchange Board of India and other competent authorities from time to time. VSL disclaims all liability for any loss caused to the Client out of the purchase or sale of securities through use of this facility.
  25. The Client hereby directs and authorises VSL as the Depository Participant to act on the directions given by VSL pursuant to the terms and conditions mentioned herein, power of attorney and Client Agreement executed by the Client in favour of/with VSL.
  26. Under no circumstances shall VSL be liable to the Client for indirect, incidental, consequential, special or exemplary damages arising from or in connection with the Facility provided to the Client, even if VSL have been advised of the possibility of such damages, such as, but not limited to, loss of revenue or anticipated profits or lost business.
  27. The Client agrees and understands that client shall, at all times, be responsible for the client's investment decisions and/or orders placed or applications preferred by the Client, either electronically or otherwise. VSL shall not be deemed to have received any
    electronically transmitted order or application until VSL has confirmed the receipt of such an order or application. The client further understands that trading through trading platforms provided by VSL is in electronic mode, based on satellite/leased line based communications, combination of technologies and computer systems to place and route orders. Thus, there exists a possibility of communication failure or system problems or slow or delayed response from system or trading halt, or any such other problem/glitch whereby not being able to establish access to the trading system/network, which may be beyond control and may result in delay in processing or not processing buy or sell orders either in part or in full. The client understands and agrees that although these problems may be temporary in nature, in case when the client has outstanding open positions or unexecuted orders, these represent a risk because of the client's obligations to settle all executed transactions. The Client understands that placing an order with VSL, either electronically or otherwise, does not guarantee execution of the said order or acceptance of an application. The Client shall not hold, nor seek to hold, VSL and/or any of its officers, directors, employees, agents, subsidiaries or affiliates, liable for any loss including but not limited to trading losses incurred by the Client due to exchange or market regulation, suspension of trading, war, strike, equipment failure, communication line failure, system failure, security failure on the Internet, unauthorised access, theft, or any problem, technological or otherwise, or other condition beyond the control of VSL that might prevent the Client from entering an order or VSL from executing an order.
  28. The Margin Securities would constitute the security towards due performance of the Client's obligations, commitments, operations, obligations and liabilities arising out of or incidental to any Transactions made, executed, undertaken, carried out or entered into by the Client.
  29. The Client undertakes that the Margin Securities shall be owned by the Client and shall be free of any charge, lien or other encumbrances at the time of offering the same towards margin to VSL. The client understands that VSL shall apply applicable haircut on the value of margin securities for giving exposure limits.
  30. The client understands that securities provided as margin can be withdrawn by the client only to the extent of free limits available in trading account.
  31. SEBI/ Stock Exchanges have specified category of securities which are eligible to be accepted as collateral towards MTF by the stock broker. The client agrees that if specific stock given by the client towards collateral moves out of the eligible list of securities, then the limit given against such stock shall be withdrawn by VSL immediately. In view of the same, MTF open positions of the client may fall under shortage of margin and positions may get squared off if sufficient additional margin is not replenished by the client. Client agrees that VSL reserves the right to decide the securities which it may accept as margin from clients.
  32. The Client agrees that the Client shall not create any charge, lien or encumbrance of any kind over the Margin Securities offered to VSL and further agrees that, the Client shall not do or allow anything to be done that may prejudice the interest of VSL in respect of the Margin Securities while the Client remains liable to VSL, in any manner whatsoever.
  33. The Client agrees and acknowledges that pursuant to the Power of Attorney executed by the Client in favour of VSL, the VSL shall be entitled to submit necessary documents on behalf of the Client to VSL, acting as the Depository Participant, for enabling the
    Depository to block the securities or mark a pledge or transfer securities in favour of VSL in respect of the Margin Securities and also submit further documents on behalf of the Client to request the Depository to remove the pledge/block created with respect of the Margin Securities.
  34. If in the opinion of VSL, the Client has failed to perform and/or failed to fulfil any of its engagements, commitments, operations, obligations or liabilities as a Client of VSL including for any sums being due by him to VSL arising out of or incidental to any Transactions made, executed, undertaken, carried out or entered into by it or in terms of regulations, laws, rules governing VSL or the Client in this behalf, then the Client agrees that VSL without giving any notice to the Client except through the margin call process as mentioned in these terms in relevant sections, shall be empowered/entitled to invoke pledge, sell, dispose of or otherwise effect any transfer of any or all of the Margin Securities in such manner and subject to such terms and conditions as it may deem fit and that the money realized, if any, from such sale/disposal/transfer subject to dues payable to VSL for such sale/ disposal/or other transfer shall be utilized/disbursed by VSL in such manner and subject to terms and conditions as it may deem fit. Further, the Client shall do all such things, deeds, acts and execute all such documents as are necessary to enable VSL to effect such sale/disposal/ transfer. All decisions by VSL in respect of the obligations or liabilities or commitments of the Client and the amount claimed in respect thereof shall be binding on the Client. The Client agrees that VSL shall not be under any liability whatsoever to the Client or any other person for any loss, damage, expenses, costs etc, either actual or notional, consequent to such sale/disposal/ transfer.
  35. If the total amounts realized from such sale/disposal/transfer is insufficient to fulfil the Client's engagements, commitments, operations, obligations or liabilities in entirety, the Client shall, forthwith and without demur, upon being requested by VSL, furnish the balance amount together with interest at such rate as decided by ICICI Securities and for costs and expenses from time to time. VSL shall also have the right to sell/dispose/transfer any other securities of the Client, at the cost of the Client and without intimation to the Client.
  36. The Margin Securities shall be at the disposal of VSL and remain available in respect of the obligations, liabilities or commitments of the Client and may be utilized with the discretion of VSL.
  37. Further it is hereby agreed by the Client that benefits such as dividends, bonus, redemption benefits, interest accruing on the Margin Securities shall accrue to the Client and the Client shall be entitled to receive the same from VSL.