4. Who can avail of this facility? All RSL clients upto 50 years of age (based on next birthday) can subscribe for RSP Insure.

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1 1. What is Regular Stock Purchase Insure (RSP Insure)? Regular Stock Purchase Insure (RSP Insure) is a facility which provides you an opportunity to invest systematically and in a disciplined manner in specified stock(s), ETF(s) (Exchange Traded Funds) and MF (Mutual Funds) units through exchange platforms (NSE- MFSS & BSE- StAR MF) with the added benefit of insurance cover. Under RSP Insure you can place BUY orders for a pre specified amount in stock(s), ETF(s) or MF units of your choice, for a period of 10 years. This means that a onetime selection of RSP Insure will allow Reliance Securities Limited (RSL) to place orders on your behalf on regular intervals. The unique benefit of RSP Insure is that, in case of the unfortunate demise of an investor during the tenure of the RSP Insure, the insurance cover will take care of the remaining orders. 2. What is the minimum and maximum tenure for RSP Insure? RSP Insure has a fixed tenure of 10 years. 3. What are the benefits of RSP Insure? No need to track the market regularly i.e., once an RSP Insure is placed, the selected stock(s)/etf/mf are purchased on your behalf as per your instruction. Helps bring down the average cost of investment Eliminates the risk of timing the market Accumulates wealth by investing small amount regularly Reduces the risk of market volatility It provides Life Insurance Cover that helps the registered RSP Insure investor s family to deal with the financial crisis and stay ahead of uncertainties of life by ensuring that the insurance cover takes care of the unpaid pending investment orders. Helps to complete the planned investments towards your financial goals. 4. Who can avail of this facility? All RSL clients upto 50 years of age (based on next birthday) can subscribe for RSP Insure. 5. How can one avail the RSP Insure facility? There are 2 ways through which a client can avail this facility. a. Physical Request: To avail RSP Insure facility, you need to fill an Application Form, Personal Declaration Form (PD Form) & RSP Insure Nomination Form. You also need to specify the stock you want to invest in and your monthly investment amount. Your RSP Insure will be activated within 7 days and then your first order will be placed as per the nearest investment date out of 7 th, 15 th, 22 nd and 28 th. b. Online: Login to your online trading account & select the Instrument in which you want to invest. Your first order will be placed as per the nearest investment date out of 7 th, 15 th, 22 nd and 28 th. However it is mandatory to submit the physical copy of Personal Declaration form & RSP Insure Nomination Form to the branch. Page 1 of 7

2 6. How would I know that my RSP Insure facility has been activated? You will get once your RSP Insure facility is activated. You can also check the status online after logging in to your account or with your Dealer or Call N Trade desk. 7. How is the Insurance Cover granted? The Insurance cover will be granted based on the information provided in PD Form. Once the PD Form is accepted by RLIC, insurance cover will be granted to you effective from next month onwards. You will be charged an RSP Insure Activation Fee of Rs on acceptance of PD form. 8. How does RSP Insure function? The order will be placed on the nearest date out of 7th, 15th, 22nd or 28th after an RSP Insure request is placed. Monthly RSP Insure amount specified by you is invested in stocks of your choice. Insurance cover is subject to acceptance of Personal Declaration Form. The cover will be effective from next month onwards. Example: If RSP Insure start date is 11/12/2011, assuming PD form is submitted on 12/12/2011 & the same is accepted by RLIC on 18/12/2011. Insurance Cover will be effective from 01/01/2012 onwards. Insurance cover amount will reduce every month. The cover will be calculated as per following formula. Insurance Cover Amount: RSP Insure monthly amount * Pending RSP Installments. In case of the unfortunate demise, insurance cover amount will be paid to the nominee registered by client while submitting the nomination form for RSP-Insure. Insurance cover provided will be terminated in case any of the following event happens: o At the end of the RSP Insure tenure, i.e; upon successful execution of all RSP Insure orders as registered or till the client attains 60 years of age whichever is earlier. o Failure of to pay 2 consecutive RSP Insure Installments due to non availability of funds o Failure of to pay 4 RSP Insure installments during the entire tenure due to non availability of funds. o The client cancels all future RSP Installments. o Selected stock is merged / de-merged / delisted / suspended on exchange & client fails to change the stock. Note: The insurance cover cannot be revived if the same is terminated due to any reason mentioned above. On happening of any of the 4 events, insurance cover will not be provided effective from next month onwards. In case insurance cover is not granted (i.e. rejected), RSP Insure installments will continue to be invested, however insurance cover will not be given. Investor may choose to cancel all future Installments. Page 2 of 7

3 9. Do I need to transfer funds for placing an RSP Insure Request? No. An RSP Insure Request is merely an authorization given to RSL to place BUY orders in your account as per your instructions; hence funds are not required or used when you place a request. However, it is advisable to maintain funds in the ledger. Your funds will be used at the time of placing actual RSP Insure orders in the market on a trading day. You can also sign up an ECS mandate for your RSP Insure orders and then the monthly investment amount will be directly debited from your bank account on the specified date. You need to transfer/deposit the money for RSP Insure activation fees, other than regular stock purchase transactions. 10. If I place an RSP Insure request, will my ledger balance be blocked for the full tenure? No, your ledger balance will not be blocked. Your funds in ledger will be used at the time of placing actual RSP Insure orders in the market on the specified dates. For example: if you have an RSP Insure to invest Rs 5000 monthly with the order placement date as 15 th of every month. Then on the 15 th of every month your ledger balance will be checked and depending on the availability of Rs 5000 free balance your RSP Insure order will be placed into the market. 11. If my RSP Insure orders are rejected due to insufficient balance, will my Insurance Cover remain active? No, in case of two consecutive or four separate RSP Order failures due to insufficient ledger balance during the tenure the RSP Insure cover will be terminated. However pending RSP orders will be active and will pushed into the market on scheduled dates. 12. Can I place RSP Insure request in Futures and Options? No, RSP Insure request can be placed only in Cash segment. 13. Do I need to login to my trading account on every RSP Insure date to place the orders? No. Once you have placed your RSP Insure requests, RSL will place the RSP Insure buy orders on your behalf as per your RSP Insure schedule for the stock. You need NOT login to your account every time to purchase the shares. 14. Can I place multiple RSP Insure requests? Yes, once your RSP Insure facility is activated, you can place multiple RSP Insure requests online or through CNT/Branch/Franchisee in same or different stocks, however your total RSP Insure Cover amount cannot go above Rs 10 lacs at any point of time. 15. What happens if my RSP Insure order placement date falls on a trading holiday? In case the defined RSP Insure order placement date falls on a trading holiday, then the order will be placed on the subsequent trading day. 16. At what price will my RSP Insure orders be placed and where can I see the details of the same? All RSP Insure orders will be placed as market orders. Once your RSP Insure order is executed successfully the same will reflect in your RSP Insure Summary page with the traded price. Page 3 of 7

4 17. What happens if I do not have sufficient ledger balance? If you do not have sufficient ledger balance as required to place your RSP Insure order, your order for that date will fail which will be displayed in RSP Insure summary page as failed order. This amount will be carried forward to next month. 18. Do I need to place different RSP Insure request for different stocks? You can specify only one stock in an RSP Insure request. Hence if you want to place RSP Insure requests for more than one stock you would be required to place separate RSP Insure requests. Once the PD form is submitted and accepted, there is NO need to submit the PD form again for additional stock selection. 19. Can I change my RSP Insure stock? Yes, if you feel that your current stock is not performing well or you want to change the stock for any other reason, you can go to RSP Insure Summary page and can change the stock symbol. Your remaining RSP Insure order will be placed as per the increased amount. But you should ensure the amount of investment is NOT changing. 20. Can I change my Monthly RSP Insure Amount? Yes, you can increase your Monthly RSP Insure Amount. If the stock price goes above the monthly RSP Insure amount, it is suggested that you should increase your Monthly RSP Insure Amount. Your remaining RSP Insure order will be placed as per increased monthly RSP Insure amount. Your insurance cover will also increase effective from next month onwards, but not exceeding Rs 10 Lac at any point of time. 21. Can I place RSP Insure Request through Call N Trade or Dealing Desk? Yes, once your RSP Insure facility is activated you can place the request through Call N Trade or through your Dealer as well. 22. How will my RSP Insure transactions be settled? Settlement of RSP Insure transactions would be done in the same manner as cash transactions. 23. Can I sell shares which I have bought through RSP Insure? Yes. Stocks bought in your demat account through RSP Insure are at par with the ones bought by you in the cash segment. You can therefore sell/ otherwise deal in such shares at anytime as per your requirement. Activation and Termination of Insurance Cover 24. When does the insurance cover starts after placing the RSP Insure request? Once the PD From is Accepted, insurance cover will be granted to you effective from next month onwards. Your account will be charged an RSP Insure Activation Fee of Rs Will I be issued any Insurance Certificate? Yes, a Certificate of Insurance (COI) will be issued once your insurance cover has been accepted and started. Page 4 of 7

5 26. What are the scenarios under which the cover will cease? The insurance cover shall cease upon occurrence of any of the following: a. At the end of the RSP Insure tenure, i.e; upon successful execution of all RSP Insure orders as registered or till the client attains 60 years of age whichever is earlier. b. Failure of 2 consecutive RSP Insure Installments due to non availability of funds. c. Failure of 4 RSP Insure Installments during the entire tenure due to non availability of funds. d. In case of Investor cancelling all future RSP Installments. e. Selected stock is merged / de-merged / delisted / suspended on exchange & client fails to change the stock. Calculation of Sum Assured 27. What would be the sum assured? The sum assured will be the amount equivalent to sum of all pending RSP Insure orders across all RSP Plans (equities + mutual funds) subject to a maximum of Rs 10 Lac. For example: If client has an RSP Insure of Rs 5000 (total RSP orders - 10years * 12 months = 120), then after successful execution of the first 3 orders the sum assured applicable to the client will be (Rs 5000 * 117 order = Rs 5, 85,000). After two years sum assured will be Rs 4, 80,000 (Rs 5000 * 96 (120-24) months) 28. What would be the sum assured in case of multiple RSP Insure request placed at different times? If you have multiple RSP Insure request, the sum assured will be sum total of all pending orders subject to a maximum of Rs 10 lacs across all RSP Insure request. Settlement of Insurance Claim 29. How are the insurance claims settled? In case of claim of Insurance by nominee, claim documents will have to be submitted to the RSL branch. Branch will send such documents to the Head Office (HO). The HO processing team will forward the document to RLIC. RLIC approves the claim. RSL will issue a cheque in favour of Nominee as mentioned in RSP Insure Nomination form. If there is any pending debit in client trading ledger then such amount will be have to be settled before making final payment to Nominee 30. What is the process of claim settlement in case of death of the client? The beneficiary of the insurance cover can send the required document to RSL for claim settlement along with original COI. RSL will coordinate with the insurance company (Reliance Life Insurance) to help the beneficiary in the settlement of claim. Page 5 of 7

6 31. When can the insurance be claimed? The insurance can be claimed in case of death of the client after the insurance cover become applicable (i.e. after acceptance of PD form) However insurance cannot be claimed in case death of the client happens due to the following reason: a. Death due to suicide b. Death due to pre-existing conditions (No claims are payable for deaths due to sickness, diseases or accident which has occurred prior to the start of the cover). c. Death during waiting period (No claims are payable for deaths occurring within 90 days of the insurance become applicable except for death due to accident). 32. What are the documents required for the insurance claim? Following documents will be required by the insurance company for processing the insurance claim: a. A proof of age as prescribed by the insurance company b. Death Certificate b. Form B To be certified by Doctor c. Original Certificate of Insurance d. Hospitalization / Medical reports Any other document as required by the Insurance Company a. In case of death due to accident, the following additional document will be required: a. First Information Report (FIR) b. Post Mortem Report c. Police Investigation Report RSP Insure Cancellation/Modification 33. Can I cancel RSP Insure? Yes, you can place a cancellation request for RSP Insure. Once the cancellation request is placed all pending orders for the RSP Insure will be cancelled & insurance cover will be terminated effective from next month onwards. 34. Is there any time limit for cancellation of RSP Insure? You can cancel RSP Insure any time online or through Call N Trade or through your Dealer, however if any RSP Insure order placement date is pending for today then you need to place the cancellation request before 08:30 AM. For example if your next RSP Insure trigger date is April 20, 2011, then you can place the cancellation request before 08:30 AM on April 20, Can I modify my RSP Insure Tenure? No you cannot, the tenure is fixed for 10 years. Page 6 of 7

7 RSP Insure Charges 36. Are there any charges for availing RSP Insure facility? Yes. Once the PD form is accepted, you will be charged / debited with RSP Insure Activation fee of Rs For each of your successfully executed RSP orders traded, 1% will be charged. Other statutory levies will be charged separately. 37. Is there any penalty/charge for Cancellation of RSP Insure? No there is no charge on cancellation. 38. Is there any penalty/charge for my RSP Insure being rejected / unsuccessful due to non availability of Funds in my ledger? Currently there are NO such charges, but if incidences are recurring for clients, then RSL may charge such customer for keeping insufficient funds and unnecessarily activating RSP Insure(s). However, in case of two consecutive or four separate RSP Insure orders failures during the tenure due to insufficient ledger balance, the RSP Insure cover will be terminated. Page 7 of 7