RIGHTS & OBLIGATIONS OF STOCK BROKERS & CLIENTS FOR MARGIN TRADING FACILITY (MTF)

1. Aditya Birla Money Limited (ABML) is eligible to provide Margin Trading Facility (MTF) in accordance with SEBI & Exchange Guidelines as specified from time to time.

2. ABML is desirous of extending MTF to its clients and has obtained prior permission of NSE / BSE for providing MTF to Clients. The Exchanges have the right to withdraw the permission at any time for sufficient reasons.

3. Client shall agree to avail of MTF in accordance with the terms and conditions, rights and obligations of MTF offered by ABML.

4. ABML is permitted to extend MTF to Clients on such terms and conditions as specified by the Stock Exchanges / SEBI / ABML from time to time. ABML and Clients shall abide by the requirements of the margin trading framework, including rights and obligations, as prescribed by Stock Exchanges / SEBI/ ABML. Terms and conditions / rights and obligations pertaining to MTF shall be identified separately, in a distinct section if given as a part of account opening agreement.

5. Terms and conditions, including maximum allowable exposure, specific stock exposures etc., as well as the rights and obligations pertaining to MTF shall be displayed on the Website of ABML and Clients shall access the website to verify / download documents / details pertaining to MTF.

6. ABML may, at its sole and absolute discretion, increase the limit of initial / additional margins, from time to time. Client shall abide by such revision, and where there is an upward revision of such margin amount, Clients agree to make up the shortfall within such time as ABML may permit. It may however, be noted that the initial and / or additional margins shall never be lower than the margins prescribed by Stock Exchange/ SEBI.

7. ABML shall provide MTF only in respect of such shares, as may be permitted by Stock Exchange / SEBI. ABML shall have the sole discretion to allow MTF on the shares even though they are part of Exchange / SEBI specified list. List of eligible shares as permitted by ABML under MTF (ABML Approved MTF Securities List) shall be displayed on the website of ABML. If any share is delisted from ABML Approved MTF Securities List, Clients shall make payment of full purchase consideration against such shares on receiving margin call within the prescribed time, failing which ABML shall be at liberty sell such shares without further notice to Clients. Such de-listing of securities may also result in margin shortfall for other securities covered under MTF and Clients shall ensure that margins are topped up / payments made to avoid liquidation of securities.

8. ABML may at its option allow client to buy further shares under MTF on the basis of increase in the value of collateral shares, subject to applicable haircut. Further purchase shall not be permitted on the basis of increase in the market value of funded shares.

9. Maximum Gross exposure / Single Stock Exposure Limits as prescribed by SEBI / Exchanges shall be applicable to all Clients. Exposure to any single Client at any point of time shall not exceed 10% of ABML’s maximum allowable exposure. In addition ABML shall have the right to restrict the maximum gross exposure as well as individual stock-wise exposure of Clients under the MTF at any point in time according to its internal policies and market views without assigning any reasons to Clients. Furnishing applicable margin shall not by itself entitle the client to seek exposure beyond the limit restricted by SEBI / Exchanges / ABML.

10. ABML shall not use the funds of one Client to provide MTF to another Client, even if the same is authorized by the first Client.

11. IPF 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.

12. Clients shall receive all communications either through SMS / Whatsapp Messages / Internet / E-Mail / Messages displayed on Terminal / Voice Calls / Display on Website etc. regarding confirmation of orders or trades, margin calls, decision to liquidate positions / security etc. under MTF. It is the sole responsibility of Clients to monitor communications sent to them on an immediate basis and act upon the same. Clients shall not hold ABML responsible for any loss arising out of their own inaction post receipt of communication from ABML.

13. Clients shall be free to take the delivery of the securities at any time by repaying the amounts that was paid by the ABML to the Exchange towards securities after paying all dues.

14. Clients shall have the right transfer securities to MTF Collateral Account through the Power of Attorney executed in favour of Aditya Birla Money Limited. Clients have a right to change the securities collateral offered for MTF at any time so long as the securities so offered are approved for MTF by ABML and the value is equal or higher than the value of securities that are sought to be replaced.

15. Clients empower ABML to consider all purchase transactions of securities listed under ABML Approved MTF Securities List as identified transactions and consent to shift the same from Normal to MTF account and vice versa at the timelines specified by ABML from time to time. In addition Clients may inform ABML of their intent to shift the identified transaction under MTF before the T day Contract Note is generated.

16. ABML shall allow MTF to Clients only for a period of 90 days. Clients shall ensure that MTF positions are closed within 90 days from the date of creating the same in MTF account. ABML shall be entitled to liquidate collateral and / or funded securities in case Clients do not close their positions within 90 days from the date of creation of each position in MTF account.

17. Clients shall place the margin amounts / approved securities (with appropriate haircut) as ABML may specify to Clients from time to time which might be higher than the margins prescribed by SEBI / Exchanges under MTF. Clients shall ensure that they maintain a Risk Cover of atleast 15% failing which ABML shall initially liquidate funded securities and then liquidate collateral securities. Risk Cover percentage is arrived at basis the following formula:

Risk Cover = (Margin Value + Funded Stock Value) – MTF Account Debit Value x 100
        (Margin + Funded Stock Value)


18. On receipt of ‘margin call’, the Clients shall make good such deficiency in the amount of margin placed with the ABML by 12 noon of T+1 day failing which ABML shall be entitled to liquidate funded and / or margin securities as applicable. However ABML shall be entitled to reduce / liquidate positions due to market volatility or reduction in Risk Cover below 15% even before the Clients top up Margins. If the debit is not cleared due to closure of Funded Stocks, ABML shall have the right to adjust available margin amounts / liquidate available Margin Stock to clear debit balances. In case of extreme volatility in the market, ABML may demand payment of margin forthwith and prescribed time for making margin payment shall be construed accordingly. Decision of ABML in relation to market volatility shall be final and binding without ABML having to provide any reason for the decision to Clients.

19. If required margin is not provided within the prescribed time, Clients shall be treated as “Client in Margin Default”. ABML shall not be obliged to notify Client in Margin Default of the liquidation of shares, ahead of liquidation. ABML shall not be obliged to liquidate shares proportionate to the shortage in margin. Any loss arising from liquidation of the shares shall to be account of Clients. Clients shall forthwith pay ABML any unpaid dues outstanding in the account after liquidation of the shares.

20. Clients in Margin Default shall continue to be in margin default, until the required margin is furnished in full to eliminate the shortage. Partial payment of margin or a change in the required margin shall not extend the time stipulated for making margin payment and the same shall be construed to run from the time of making margin call to the Clients.

21. Post liquidation of funded securities and / or collateral securities, fresh positions shall be allowed to Clients, basis prevailing risk policy of ABML / SEBI & Exchange Regulations.

22. By agreeing to avail MTF with the ABML, Clients are deemed to have authorized the ABML to retain and/or pledge the securities provided as collateral or purchased under the MTF till the amount due in respect of the said transaction including the dues to the ABML is paid in full by the client.

23. Clients shall pay interest at the same rate agreed upon for their Normal account, on outstanding obligations under MTF.

24. Clients shall lodge protest or disagreement with any transaction done under the MTF immediately upon receipt of communication from ABML and in any case not later than 24 hours from the time of receipt of communication with respect to transactions under MTF.

25. ABML may set up its own risk management policy that will be applicable to the transactions done under the MTF. ABML 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 MTF through any of the modes of communications prescribed hereinabove.

26. ABML shall maintain separate ledgers for funds and funded securities of Clients availing MTF. ABML shall have the right to adjust credits available in Normal account against the debit in MTF account and vice versa. ABML shall also have the right to transfer funded securities / debit obligations from Normal account to MTF account and vice versa. ABML may maintain separate collateral accounts or a single collateral account for margin purposes of both Normal / MTF accounts. In case of separate Collateral Accounts, ABML shall have the right to transfer approved securities from collateral of Normal to MTF account and vice versa. ABML shall maintain a separate beneficiary accounts for holding funded securities under MTF.

27. ABML shall prescribe and communicate its margin policies on haircuts / VAR margins subject to minimum requirements specified by SEBI and exchanges from time to time through any of the modes of communication as prescribed herein above.

28. ABML shall monitor and review on a continuous basis Clients positions with regard to MTF. Clients shall review their MTF positions on a continuous basis and shall be solely responsible for the losses sustained thereon. Clients shall immediately and not later than 12 noon on T+day top up margins as soon as alerts are received in any of the modes prescribed by ABML.

29. If the transaction is entered under MTF account, there will not be any further confirmation that it is MTF transaction other than contract note.

30. Time period for liquidation of position/security shall be in accordance declared policy of the ABML as applicable to all MTF Clients consistently. 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.

31. The daily margin statements sent by ABML to Clients shall identify the margin/collateral for MTF separately.

32. MTF Accounts where there are no transactions for 90 days shall be settled immediately.

33. The stocks deposited as collateral with the ABML for availing MTF (Collaterals) and the stocks purchased under the MTF (Funded stocks) shall be identifiable separately and there shall not be any comingling for the purpose of computing funding amount.

34. ABML shall close/terminate the account of Clients forthwith upon receipt of such request in writing, subject to the condition that the respective Client has paid all dues under MTF.

35. In case of debarment of Client(s) by orders of Regulatory / Statutory / Exchange Authorities / Courts / Forums from trading in the securities market, ABML shall have the right to liquidate collateral and funded shares of the client to recover its dues to the full extent forthwith.

36. In case of death of a Client, ABML shall be entitled to liquidate the collateral and funded shares under MTF and recover the unpaid outstanding due.

37. MTF arrangement between the ABML and Clients shall be terminated; if the Stock Exchange, for any reason, withdraws the MTF provided to the ABML or the ABML surrenders the facility or the ABML ceases to be a member of the stock exchange.

38. The MTF may be withdrawn by the ABML, in the event of Clients committing any breach of any terms or conditions therein or at any time after due intimation to Clients allowing such time to liquidate the MTF position as per the agreed liquidation terms without assigning any reason. Similarly, Clients may opt to terminate the MTF in the event of ABML committing any breach of any terms or conditions therein or for any other reason.

39. Clients may close / terminate the MTF Account at any time, in writing, after paying the dues.

40. ABML reserves the right to withdraw MTF with respect to any Client without assigning any reason after giving a reasonable notice to the Client in which case dues if any outstanding in the account of the Client shall become payable immediately. Failure to make payment of the outstanding dues shall result in liquidation of collateral and/or funded shares held in Client’s account.

41. In the event of termination of this arrangement, Clients shall forthwith settle the dues of the ABML. The ABML shall be entitled to immediately adjust the Margin Amount against the dues of Clients, and the Clients hereby authorizes the ABML to make such adjustment.

42. After such adjustment, if any further amount is due from the client to the ABML under any of the accounts maintained by Clients with ABML, Clients shall settle the same forthwith. Upon full settlement of all the dues, ABML shall release the balance amount to the Clients.

43. If Clients opt to terminate the MTF, ABML shall forthwith return to Clients all the collaterals provided and funded securities retained on payment of all the dues by Clients under all accounts maintained by Clients with ABML.

44. Any dispute / claim or complaint arising between Clients and ABML in connection with MTF shall be resolved through the investor grievance redressal mechanism and/or arbitration mechanism of the stock exchanges as in the case of transactions effected through Normal Account.

45. The Rights and Obligations prescribed hereinabove shall be read in conjunction with the rights and obligations as prescribed under SEBI Circulars, any modifications thereto from time to time and the Policies and Procedures, Terms and Conditions prescribed by ABML from time to time. Any change / modification in these Rights and Obligations shall be disseminated to Clients through any of the modes of communications prescribed and agreed above. In case of any inconsistencies between the Rights and Obligations herein and the provisions in the aforesaid SEBI and/or Stock Exchange Circulars, the later shall prevail to the extent of such inconsistencies.


I have read, understood, confirm and agree to the above Rights and Obligations / terms and conditions pertaining to MTF and I hereby consent to avail MTF offered by ABML by clicking on the I Agree button.