IDFC Securities Limited

Policies & Procedures on dealings with Client

Sr. Heading Policies and Procedures
No.
1. Refusal of order for IDFC Securities Ltd. may at its sole discretion accept, decline or partially accept any order
Penny Stocks from a Client to buy / sell penny stocks, illiquid securities which as per the perception of
IDFC Securities Ltd., are extremely volatile or subject to market manipulation.

IDFC Securities Ltd. shall not be responsible for delay in execution of such orders and
consequential opportunity loss or financial loss to the Client.

For the purpose of identification of penny stocks, IDFC Securities Ltd. would consider the
list of illiquid securities put up by both NSE and BSE on their website every month.
2. Setting up of IDFC Securities Ltd. may at its sole discretion, impose and vary limits on the orders that the
Client’s exposure Client can place through the trading system (including exposure and turnover limits and / or
limits. limits on the value or type of securities) based on its internal risk management framework.
3. Applicable The rate of brokerage charged to Clients will be within the limits prescribed by SEBI / Stock
brokerage rate Exchanges.
4. Imposition of Clients will be liable to pay late pay in / delayed payment charges for not making payment in
penalty/delayed respect of their ‘pay in’ on time (i.e. as per the Stock Exchange settlement schedule), at the
payment charges by rate of 18 % per annum at the sole discretion of IDFC Securities Ltd.
either party,
specifying the rate The Client will not be entitled to any interest on the credit balance / excess margin available /
and the period kept with the IDFC Securities Ltd. IDFC Securities Ltd., reserves the right and may at its
sole discretion collect any amount by way of penalty / fine from clients on whose behalf
IDFC Securities Ltd. has been levied penalty or fined by the regulatory authorities. The
above is only a penal measure in case a client defaults in meeting settlement and margin
obligation and should not be construed as funding arrangement; and the client cannot
demand continuation of service on a permanent basis citing levy of delayed payment
charges.
5. Right to sell Clients’ Without prejudice to any other rights, (including the right to refer a matter for arbitration),
securities or close IDFC Securities Ltd., reserves the right to liquidate/close out all or any of the Client's
Clients’ positions, positions for non-payment of margins or other amounts, outstanding debts, etc. without
without giving giving notice and adjust the proceeds of such liquidation / close out, if any, against the
notice to the Client, Client's liabilities/ obligations. Any and all losses and financial charges on account of such
on account of non- liquidation/closing-out may be charged to the Client as may be decided.
payment of Client’s
dues IDFC Securities Ltd., reserves the right to set off any amount payable by it against any
amounts owed and/or any liability of whatever nature of the Client to IDFC Securities Ltd.
Further, IDFC Securities Ltd’s. right of lien, set off and close out also forms part of the Stock
Broker - Client agreement executed.
6. Shortages in IDFC Securities Ltd. shall not be under obligation to deliver any securities or pay any money
obligations arising to the Client unless the same has been received by it from the Exchanges, Clearing
out of internal Corporations /Clearing houses.
netting of trades
IDFC Securities Ltd. shall have the right to adopt a policy of its choice for internal auctions
arising out of internal netting of trades.

Due to internal shortages on account of internal netting of trades, the buyer client shall
receive late delivery of securities. Buyer shall also have no claims / rights against IDFC
Securities Ltd. for delay in delivery of securities. It may also be possible that the IDFC
Securities Ltd. may not be able to obtain the required securities due to market conditions,
then in such cases the buyer client’s account will be credited and seller client’s account will
be debited as per the close out rate provided by the Exchange for the relevant auction
settlement. Provisional debit bill amount will be reversed in the seller client’s account.
7. Conditions under IDFC Securities Ltd. reserves the right to not to permit any Client from taking further
which a Client may positions or closing of existing positions in certain conditions which may inert-alia include:
 not be allowed to 1. Any legal / disciplinary action initiated by the Government or any
take further position government agencies or regulators such as SEBI, Stock Exchanges, RBI or Income-tax
or the broker may department.
close the existing 2. Violations of terms of the Stock Broker - Client agreement
position of a Client 3. Non-payment of existing dues / obligations.
4. Insufficient / inadequate margins and or insufficient /inadequate free
credit balance available with the IDFC Securities Ltd.
5. The Client is financially unsound to trade or has become bankrupt or
insolvent.
6. Based on the risk perception of IDFC Securities Ltd. that further trading
in the security may not be in the interest of the Client/market.
7. Scrips / stocks falling in Penny stocks in clause (1) above.
8. Any other reason to safeguard the interests of IDFC Securities Ltd. or its
Risk Management System.

IDFC Securities Ltd. will under no circumstances, be responsible for opportunity loss or
financial loss to the client.
8. Temporarily In case a Client wishes to temporarily suspend operation of their trading account with IDFC
suspending or Securities Ltd. he may do so through written communication sent through e-mail or hard
closing a Client’s copy.
account at the
Client’s request: The Client will have to make a written request to IDFC Securities Ltd. and provide their
latest financial details, in case he wishes to resume trading in the account with IDFC
Securities Ltd. At the time of closure of such account, the Client will have to ensure that all
his trades through IDFC Securities Ltd. are settled.

In such cases, IDFC Securities Ltd. shall have the right to close out any open positions /
contracts, sell the collaterals to recover its dues, if any before de-registering the Clients
account.

9. De-registering a Notwithstanding anything contrary stated anywhere in these policies or any agreement with
Client the client, IDFC Securities Ltd. reserves the right to de-register a Client’s trading account
on account of, but not limited to the following:

1. Shortfall in Client account to make good the settlement / margin obligations.

2. On initiation of legal proceedings against the Client under any law in force for
actions which are prima facie attempting to manipulate the normal functioning of
the Securities market.
3. Debarment from trading in the securities market by any regulatory authority.
4. In case IDFC Securities Ltd. becomes aware of any adverse change in the financial
position of the Client.
5. If the Client has made any material misrepresentation of facts in the Client
Registration documents.
6. On the death / lunacy or other disability of the Clients.
7. If the action of the Client are prima facie illegal / improper or such as to
manipulate the price of any securities or disturb the normal proper functioning of
the securities market, either alone or in conjunction with others.

In such a case, IDFC Securities Ltd. shall have the right to close out the existing positions /
contracts, sell the collaterals to recover its dues, if any, before de-registering the clients
account.
10. Inactive Accounts Excluding Institutional Clients, in case of any other Client trading account in which trading
has not been carried out in any segment or on any Stock Exchange for a period of more than
one year or as may be decided from time to time, IDFC Securities Ltd. reserves the right to
declare the aforesaid account as ‘Inactive’. The identification of ‘Inactive’ Clients on the
prescribed criteria would be carried out at the start of the financial year.

In case the Client whose trading account has been rendered inactive, wishes to resume
trading, the same has to be authorised by the Sales/dealing department of IDFC Securities
Ltd. in writing and is subject to receipt of latest financial details from the Client.
Client acceptance of Policies and Procedures stated hereinabove:

I/We have fully understood the policies and procedures stated hereinabove. I/We
have taken note of the fact that these policies and procedures may be amended /
changed by IDFC Securities Ltd. any time in the future provided that such changes
would be informed to me /us atleast 15 days in advance in writing through any
mode. These policies and procedures shall be read alongwith the agreement and
shall be compulsorily referred to while deciding any claim / dispute between me / us
and IDFC Securities Ltd.

For (Name of Client)

Authorised Signatory