ACCOUNT OPENING KIT. Radhakrishnan P, , Samson K. J, ,

Transcription

1 ACCOUNT OPENING KIT INDITRADE DERIVATIVES AND COMMODITIES LIMITED (IDCL) Exchange NCDEX MCX NMCE NCDEX SPOT FMC Unique Membership Code (UMC) No. for NCDEX/TCM/CORP/0050 MCX/TCM/CORP/0426 NMCE/TCM/CORP/0009 NCDEXSPOT/025/ CO/07/10029 Date 25/08/ /8/ /11/ /12/2007 Member Code CL Registered Office Address Ist Floor, MES Building, Kaloor, Kochi , Kerala, India Ph: , Fax: , Website: Correspondence Office Address Compliance Officer Name Phone no. & id: XXXVI -202, JJ Complex,Dairy Methanam Road, Edappally, Kochi , Kerala. Ph: ; Fax: , Website: Radhakrishnan P, , Managing Director name Phone no. & id Samson K. J, , INDEX Sl. No. Name of the Document Brief Significance of the Document Page No MANDATORY DOCUMENTS AS PRESCRIBED BY FMC & EXCHANGES 1 KYC (Account Opening) application form (individual/non individual) KYC form - Document captures the basic information about the constituent and an instruction/check list Uniform Risk Disclosure Document (RDD) Document detailing risks associated with dealing in the commodities market Rights and Obligations of Members, Authorized Persons and Clients Document stating the Rights & Obligations of member, Authorized Person and client for trading on exchanges (including additional rights & obligation in case of internet/wireless technology based trading) Do s and Don ts for the Investors Document detailing do s and don ts for trading on exchange, for the education of the investors Tariff sheet Check Appendix A Document detailing the rate/amount of brokerage and other charges levied on the client for trading on the Commodity Exchange(s) VOLUNTARY DOCUMENTS AS PROVIDED BY THE MEMBER Electronic Contract Note [ECN] DECLARATION Additional Terms and Conditions Running Account Authorization To avail value added services (various operative instructions to the client for day to day running of the account) Authorization by client to retain funds in trading account to meet settlement obligations KRA KRA/CERSAI Dual Mapping & Self Declaration Dual Mapping & Self Declaration

2 For any grievance/dispute please contact Inditrade Derivatives And Commodities Limited (IDCL) at the above address or and Phone no In case not satisfied with the response, please contact the concerned exchange(s) at contact details given below:. Exchange Department ID Phone No. National Commodities & Derivative Exchange of India Ltd (NCDEX) Investor Grievances Multi Commodity Exchange of India Ltd. (MCX) Arbitration & IG National Multi Commodity Exchange of India Ltd (NMCE) Grievance Redressal NCDEX Spot Exchange Ltd. ( NSPOT ) Investor Grievances askus@ncdexspot.com GENERAL GUIDLINES 1. Application should be filled in ENGLISH and preferably in CAPITAL LETTERS. 2. Please ensure that the form is properly filled in legible handwriting so as to avoid errors in your application processing. 3. Please do not overwrite. Corrections should be made by canceling and re-writing, and such corrections 4. should be authenticated by all applicants with theirfull signatures. 5. Strike-off unused columns and fields. Tick the appropriate boxes wherever applicable. 6. Applications incomplete in any respect and/or not accompanied by required documents are liable to be rejected. 7. Please mention the complete address as it appears in the Proof of Address submitted. 8. Originals of documents should be produced for verification along with self-attested copies of documents. 9. Please affix full signature wherever D3P mark is found and is indicated "full signature required". The applicant(s) should submit a valid Proof of Identity (POI) and Proof of Address (POA) - local/correspondence as the case may be 2

3 KNOW YOUR CLIENT (KYC) APPLICATION FORM Please read the instructions given in page No. 8,9 before filling the applicatiuon For Individuals PHOTOGRAPH Please affix your recent passport size photograph and sign across it Please fill this form in ENGLISH and in BLOCK LETTERS. Strike off whichever is not applicable. 1 A. IDENTITY DETAILS Name of the Applicant Father s/ Spouse Name Gender Nationality PAN Male Any other additional proof of identity B. ADDRESS DETAILS Address for correspondence First Name Middle Name Last Name Female Marital status Status Spouse Name Single Married Date of birth D D M M Y Y Y Y Resident Individual Non Resident Foreign National Unique Identification Number (UID)/ Aadhaar, if available If Non Resident / Foreign National, self-certified copy of statutory approval obtained must be attached) Proof of address must be different from the proof of identity submitted City/ Town /village Pin Code State Country Tel. (Off.) Contact Details: Fax: id: Specify the proof of address submitted for correspondence address: Tel. (Res.) Mobile No. Permanent Address (if different from above) City/Town/village: Pin Code: State: Country Specify the proof of address submitted for permanent address, if any: C. OTHER DETAILS Gross Annual Income Details (please specify): Please tick, as applicable: Income Range per annum: Below Rs 1 Lac 1-5 Lac 5-10 Lac Lac >25 Lacs <Rs. 5 lac 5-10 Lac Lac >50 Lacs Net-worth as on (date) D D M M Y Y Y Y (Net worth should not be older than 1 year) Politically Exposed Person (PEP) Related to a Politically Exposed Person (PEP) Not a Politically Exposed Person (PEP) Not Related to Politically Exposed Person (PEP) Education Graduate Post-graduate Professional Others Occupation Private Sector Public Sector Govt. Service Business Proffessional Farmer Others... 3

4 D. BANK ACCOUNT(S) DETAILS Bank Name: Branch address: Bank account no: Account Type: Saving Current Others MICR Number IFSC code: Note: Provide a copy of cancelled cheque leaf/ pass book/bank statement specifying name of the client, MICR Code or/and IFSC Code of the bank. E. DEPOSITORY ACCOUNT(S) DETAILS, if available Depository Participant Name : Beneficiary name DP ID Depository Name: (NSDL/CDSL) Beneficiary ID (BO ID) Note: Provide a copy of either Demat Master or a recent holding statement issued by DP bearing name of the client. F. TRADING PREFERENCES Note: Please sign in the relevant boxes against the Exchange with which you wish to trade. The Exchange not chosen should be struck off by the client. Sr. No. Name of the National Commodity Exchanges # Date of Consent for trading on concerned Exchange Signature of the Client 1 MCX (Full Signature required) 2 2 NCDEX (Full Signature required) 3 3 NMCE (Full Signature required) 4 # In case of allowing a client for trading on any other Exchange at a later date, which is not selected now, a separate consent letter is required to be obtained by the Member from client and to be kept as enclosure with this document. G. INVESTMENT/TRADING EXPERIENCE No Prior Experience Years in Commodities Years in other investment related fields H. SALES TAX REGISTRATION DETAILS (As applicable, State wise) Individual / Sole Proprietor Local Sales Tax State Registration No.: Central Sales Tax Registration No. Other Sales Tax State Registration No. Validity Date: Validity Date: Validity Date: Name of the State: Name of the State: Name of the State: 4

5 I. VAT DETAILS (As applicable, State wise) Individual / Sole Proprietor Local VAT Registration No.: Other VAT Registration No.: Validity Date: Validity Date: Name of the State: Name of the State: J. PAST REGULATORY ACTIONS Details of any action/proceedings initiated/pending/ taken by FMC/ SEBI / Stock exchange / Commodity exchange/any other authority against the client during the last 3 years: K. DEALINGS THROUGH OTHER MEMBERS If client is dealing through any other Member, provide the following details (in case dealing with multiple Members, provide details of all in a separate sheet containing all the information as mentioned below) : Member s / Authorized Person (AP) s Name: Exchange: Exchange s Registration number: Concerned Member s Name with whom the AP is registered: Registered office address: Phone: Fax: Website: Client Code: Details of disputes/dues pending from/to such Member/AP: L. INTRODUCERS DETAILS( Optional) Name of the Introducer Employee code Status of the Introducer : Authorized Person Others, Please specify Existing Client Remiser Address and phone no. of the Introducer. Signature of the Introducer 5

6 M. ADDITIONAL DETAILS Whether you wish to receive communication from member in electronic form on your -ID Yes No { if yes then please fill in Appedix-A } Whether you wish to avail of the facility of internet trading /wireless technology (Please Specify) In case of sole proprietor please indicate the name and address of the firm Odin diet Net.net IWIN Yes No Yes No Yes No SMS and alerts to investors by exchanges If same mobile/ is used for more than one account. please specify the relevent ntrade code & relationship Any other Information SMS Both Spouse Dependent Parent Dependent Child Other please specify Trade Code N. NOMINATION DETAILS Name of the Nominee: Relationship with the Nominee: Date of Birth of Nominee: PAN of Nominee: Address and phone no. of the Nominee: Pincode Signature I/We wish to nominate I/ We do not wish to nominate PHOTOGRAPH Please affix your recent passport size photograph and sign across it 5 If Nominee is a minor, details of guardian: Name of guardian: Address and phone no. of Guardian: Signature of guardian: WITNESSES (Only applicable in case the account holder has made nomination) Name Signature Address Name Signature Address 6

7 DECLARATION 1 I/We hereby declare that the details furnished above are true and correct to the best of my/our knowledge and belief and I/we undertake to inform you of any change therein, immediately. In case any of the above information is found to be false or untrue or misleading or misrepresenting, I am/we are aware that I/we may be held liable for it. 2 I/We confirm having read/been explained and understood the contents of the tariff sheet and all voluntary/nonmandatory documents. 3 I/We further confirm having read and understood the contents of the Rights and Obligations document(s), Risk Disclosure Document and Do s and Dont s. I/We do hereby agree to be bound by such provisions as outlined in these documents. I/We have also been informed that the standard set of documents has been displayed for Information on Member s designated website, if any. Place : Date : 6 Signature of the client FOR OFFICE USE ONLY UCC Code allotted to the Client: Name of the Employee Employee Code Designation of the employee Date Signature Documents verified with Originals I / We undertake that we have made the client aware of tariff sheet and all the voluntary/non-mandatory documents. I/We have also made the client aware of Rights and Obligations document (s), RDD, Do s and Dont s and Guidance Note. I/We have given/sent him a copy of all the KYC documents. I/We undertake that any change in the tariff sheet and all the voluntary/non-mandatory documents would be duly intimated to the clients. I/We also undertake that any change in the Rights and Obligations and RDD would be made available on my/our website, if any, for the information of the clients.. Signature of the Authorised Signatory Date Seal/Stamp of Inditrade Derivatives and Commodities Limited 7

8 INSTRUCTIONS/ CHECK LIST FPR FILLING KYC FORM A. IMPORTANAT POINTS : 1. Self attested copy of PAN card is mandatory for all clients, including Promoters/Partners/Karta/Trustees and whole time directors and persons authorized to deal in commodity derivatives on behalf of company/firm/others. 2. Copies of all the documents submitted by the applicant should be self-attested and accompanied by originals for verification. In case the original of any document is not produced for verification, then the copies should be properly attested by entities authorized for attesting the documents, as per the below mentioned list. 3. If any proof of identity or address is in a regional language, then translation into English is required. 4. Name & address of the applicant mentioned on the KYC form, should match with the documentary proof submitted. 5. If correspondence & permanent address are different, then proofs for both have to be submitted. 6. Sole proprietor must make the application in his individual name & capacity. 7. For non-residents and foreign nationals, (allowed to trade subject to RBI and FIPB/FEMA guidelines and other applicable statutory approvals), copy of passport/pio Card/OCI Card and overseas address proof is mandatory. 8. For foreign entities, CIN is optional; and in the absence of DIN no. for the directors, their passport copy should be given. 9. In case of Merchant Navy NRI s, Mariner s declaration or certified copy of CDC (Continuous Discharge Certificate) is to be submitted along with other statutory approvals required for investment in commodities. 10. Politically Exposed Persons (PEP) are defined as individuals who are or have been entrusted with prominent public functions in a foreign country, e.g., Heads of States or of Governments, senior politicians, senior Government/judicial/ military officers, senior executives of state owned corporations, important political party officials, etc. B. Proof of Identity (POI) : List of documents admissible as Proof of Identity: 1. Unique Identification Number (UID) (Aadhaar)/ Passport/ Voter ID card/ Driving license. 2. PAN card with photograph. 3. Identity card issued by any of the following: Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities, Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members; and Credit cards/debit cards issued by Banks. C. Proof of address (POA) List of documents admissible as Proof of Address: (Note: Documents having an expiry date should be valid on the date of submission.) 1. Passport/ Voters Identity Card/ Ration Card/ Registered Lease or Sale Agreement of Residence/ Driving License/ Flat Maintenance bill/ Insurance Copy. 2. Utility bills like Telephone Bill (only land line), Electricity bill or Gas bill - Not more than 3 months old. 3. Bank Account Statement/Passbook -- Not more than 3 months old. 4. Proof of address issued by any of the following: Bank Managers of Scheduled Commercial Banks/Scheduled Co-Operative Bank/Multinational Foreign Banks/Gazetted Officer/Notary public/elected representatives to the Legislative Assembly/Parliament/Documents issued by any Govt. or Statutory Authority. 5. Identity card/document with address, issued by any of the following: Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities and Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members. 6. The proof of address in the name of the spouse may be accepted. 8

9 D. Exemption to PAN (Note: Sufficient documentary evidence in support of such claims to be collected.) E. List of people authorized to attest the documents: F. Transactions undertaken on behalf of Central Government and/or State Government and by officials appointed by Courts e.g. Official liquidator, Court receiver etc. Investors residing in the State of Sikkim (subject to the continued exemption granted by Government). Notary Public, Gazetted Officer, Manager of a Scheduled Commercial/ Co-operative Bank or Multinational Foreign Banks (Name, Designation & Seal should be affixed on the copy). In case of NRIs, authorized officials of overseas branches of Scheduled Commercial Banks registered in India, Notary Public, Court Magistrate, Judge, Indian Embassy /Consulate General in the country where the client resides are permitted to attest the documents. In case of Non-Individuals, additional documents to be obtained from non-individuals, over & above the POI & POA, as mentioned below: 9

10 KNOW YOUR CLIENT (KYC) APPLICATION FORM Please read the instructions given in page No. 8,9 beforer filling the applicatiuon For Non Individuals Please fill this form in ENGLISH and in BLOCK LETTERS. Strike off whichever is not applicable. PHOTOGRAPH Please affix Authorised Signatories recent passport size photographs and sign across it 7 A. IDENTITY DETAILS Name of the Applicant Date of incorporation D D M M Y Y Y Y Place of incorporation Date of commencement of business D D M M Y Y Y Y a) PAN c) Registration No. (e.g. CIN) Private Limited Co. Public Ltd. Co. Body Corporate Partnership Trust Charities NGO s FI FII HUF Status (please tick any one) AOP Bank Govt. Body Non Govt. Organization Non Govt. Organization Defense Establishment BOI Society LLP FPI - Category I FPI - Category II FPI - Category III Others (please specify) B. ADDRESS DETAILS Address for correspondence Proof of address must be different from the proof of identity submitted City/ Town /village Pin Code State Country Contact Details: Tel. (Off.) Fax: id: Specify the proof of address submitted for correspondence address: Registered Address (if different from above): Tel. (Res.) Mobile No. City/Town/village: Pin Code: State: Country Specify the proof of address submitted for registered address, if applicable: C. OTHER DETAILS Tel. (Res.) Mobile No. Fax: id: Gross Annual Income Details (please specify): Income Range per annum: Below Rs 1 Lac 1-5 Lac 5-10 Lac Lac 25 lacs to > 1 cr Net worth details Rs... Net-worth as on (date) D D M M Y Y Y Y (Net worth should not be older than 1 year) 10

11 Residential address and photographs of Promoters/Partners/Karta/Trustees and whole time directors Name Relationship With Applicant (ie Promoters, Whole time Directors etc...) PAN DIN Aadhar (UID) Number Residential / Registered Address PHOTOGRAPH Please affix Authorised Signatories recent passport size photographs and sign across it City/Town/ Village State Pincode Country Name Relationship With Applicant (ie Promoters, Whole time Directors etc...) PAN DIN Aadhar (UID) Number Residential / Registered Address PHOTOGRAPH Please affix Authorised Signatories recent passport size photographs and sign across it City/Town/ Village State Pincode Country Name Relationship With Applicant (ie Promoters, Whole time Directors etc...) PAN DIN Aadhar (UID) Number Residential / Registered Address PHOTOGRAPH Please affix Authorised Signatories recent passport size photographs and sign across it City/Town/ Village State Pincode Country Name Relationship With Applicant (ie Promoters, Whole time Directors etc...) PAN DIN Aadhar (UID) Number Residential / Registered Address PHOTOGRAPH Please affix Authorised Signatories recent passport size photographs and sign across it City/Town/ Village State Pincode Country Name Relationship With Applicant (ie Promoters, Whole time Directors etc...) PAN DIN Aadhar (UID) Number Residential / Registered Address PHOTOGRAPH Please affix Authorised Signatories recent passport size photographs and sign across it City/Town/ Village State (If you have a landline connection, kindly provide the same) 11 Pincode Country

12 DIN DPIN UID of Promoters Partners LLP Partners and whole time directors: Please tick, as applicable, for any of your authorized signatories Promoters Partners Karta Trustees whole time directors: Politically Exposed Person (PEP) Related to a Politically Exposed Person (PEP) Not a Politically Exposed Person (PEP)/ Not Related to a Politically Exposed Person (PEP) D. BANK ACCOUNT(S) DETAILS Bank Name Branch address Bank account no. Account Type: Saving Current Others MICR Number IFSC code Note: Provide a copy of cancelled cheque leaf/ pass book/bank statement specifying name of the client, MICR Code or/and IFSC Code of the bank. E. DEPOSITORY ACCOUNT(S) DETAILS, if available Depository Participant Name Depository Name (NSDL/CDSL) DP ID Beneficiary name Beneficiary ID (BO ID) Note: Provide a copy of cancelled cheque leaf/ pass book/bank statement specifying name of the client, MICR Code or/and IFSC Code of the bank. 12

13 F. TRADING PREFERENCES Note: Please sign in the relevant boxes against the Exchange with which you wish to trade. The Exchange not chosen should be struck off by the client. Sr. No. Name of the National Commodity Exchanges Date of Consent for trading on concerned Exchange Signature of the Client 1 MCX 2 NCDEX 3 NMCE At the time of printing the form, the Member must specify the names of the Exchanges where the Member has membership. [In case of allowing a client for trading on any other Exchange at a later date, which is not selected now, a separate consent letter is required to be obtained by the Member from client and to be kept as enclosure with this document] G. INVESTMENT/TRADING EXPERIENCE Note: Please sign in the relevant boxes against the Exchange with which you wish to trade. The Exchange not chosen should be struck off by the client. No Prior Experience Years in Commodities Years in other investment related fields H. SALES TAX REGISTRATION DETAILS (As applicable, State wise) Local Sales Tax State Registration No. Central Sales Tax Registration No Other Sales Tax State Registration No. Validity Date Validity Date Validity Date Name of the State Name of the State Name of the State 13

14 I. VAT DETAILS (As applicable, State wise) Local VAT Registration No. Validity Date Name of the State Other VAT Registration No. Validity Date Name of the State J. PAST REGULATORY ACTIONS Details of any action/proceedings initiated/pending/ taken by FMC/ SEBI / Stock exchange / Commodity exchange/any other authority against the client or its Partners/promoters/whole time directors/authorized persons in charge during the last 3 years: K. DEALINGS THROUGH OTHER MEMBERS If client is dealing through any other Member, provide the following details (incase dealing with multiple Members/APs, provide details of all in a separate sheet containing all the information as mentioned below): Member s / AP s Name: Exchange: Exchange s Registration number: Concerned Member s Name with whom the AP is registered: Registered office address: Ph: Fax: Website: Client Code: Details of disputes/dues pending from/to such Member/AP: L. INTRODUCER DETAILS (optional) Name of the Introducer: Surname Name Middle Name Status of the Introducer: Authorized Person Existing Client Others Please specify Address and phone no. of the Introducer: Signature 8 Signature of the client 14

15 M. ADDITIONAL DETAILS Whether you wish to receive communication from Member in electronic form on your -id { If yes then fill in Appendix-A} Yes No DECLARATION 1. I/We hereby declare that the details furnished above are true and correct to the best of my/our knowledge and belief and I/we undertake to inform you of any changes therein, immediately. In case any of the above information is found to be false or untrue or misleading or misrepresenting, I am/we are aware that I/we may be held liable for it. 2. I/We confirm having read/been explained and understood the contents of the tariff sheet and all voluntary/nonmandatory documents. 3. I/We further confirm having read and understood the contents of the 'Rights and Obligations' document(s), 'Risk Disclosure Document' and 'Do's and Dont's'. I/We do hereby agree to be bound by such provisions as outlined in these documents. I/We have also been informed that the standard set of documents has been displayed for Information on Member's designated website, if any. Place Date : : 9 Signature of (all) Authorized Signatory (ies) *Form need to be signed by all the authorized signatories. 15

16 RISK DISCLOSURE DOCUMENT Annexure - 2 The Exchange does not expressly or impliedly, guarantee nor make any representation concerning the completeness, the adequacy or accuracy of this disclosure documents nor has the Exchange endorsed or passed any merits of participating in the Commodity Derivatives market/trading. This brief statement does not disclose all of the risks and other significant aspects of trading. You should, therefore, study derivatives trading carefully before becoming involved in it. In the light of the risks involved, you should undertake transactions only if you understand the nature of the contractual relationship into which you are entering and the extent of your exposure to risk. You must know and appreciate that investment in commodity futures contracts/ derivatives or other instruments traded on the Commodity Exchange(s), which have varying element of risk, is generally not an appropriate avenue for someone of limited resources/ limited investment and/ or trading experience and low risk tolerance. You should, therefore, carefully consider whether such trading is suitable for you in the light of your financial condition. In case, you trade on the Exchange and suffer adverse consequences or loss, you shall be solely responsible for the same and the Exchange shall not be responsible, in any manner whatsoever, for the same and it will not be open for you to take the plea that no adequate disclosure regarding the risks involved was made or that you were not explained the full risk involved by the concerned member. The Client shall be solely responsible for the consequences and no contract can be rescinded on that account. You must acknowledge and accept that there can be no guarantee of profits or no exception from losses while executing orders for purchase and/or sale of a commodity derivatives being traded on the Exchange. It must be clearly understood by you that your dealings on the Exchange through a member shall be subject to your fulfilling certain formalities set out by the member, which may, inter alia, include your filing the know your client form and are subject to Rules, Byelaws and Business Rules of the Exchange guidelines prescribed by FMC from time to time and circulars as may be issued by the Exchange from time to time. The Exchange does not provide or purport to provide any advice and shall not be liable to any person who enters into any business relationship with any member of the Exchange and/ or third party based on any information contained in this document. Any information contained in this document must not be construed as business advice/investment advice. No consideration to trade should be made without thoroughly understanding and reviewing the risks involved in such trading. If you are unsure, you must seek professional advice on the same. In considering whether to trade, you should be aware of or must get acquainted with the following:- 1. Basic Risks involved in the trading of Commodity Futures Contracts and other Commodity Derivatives Instruments on the Exchange. i. Risk of Higher Volatility Volatility refers to the dynamic changes in price that commodity derivative contracts undergo when trading activity continues on the Commodity Exchange. Generally, higher the volatility of a commodity derivatives contract, greater is its price swings. There may be normally greater volatility in thinly traded commodity derivatives contracts than in actively traded commodities/ contracts. As a result of volatility, your order may only be partially executed or not executed at all, or the price at which your order got executed may be substantially different from the last traded price or change substantially thereafter, resulting in real losses.. ii. iii. ` iv. Risk of Lower Liquidity a. Liquidity refers to the ability of market participants to buy and/ or sell commodity derivative contract expeditiously at a competitive price and with minimal price difference. Generally, it is assumed that more the number of orders available in a market, greater is the liquidity. Liquidity is important because with greater liquidity, it is easier for investors to buy and/ or sell commodity derivatives contracts swiftly and with minimal price difference and as a result, investors are more likely to pay or receive a competitive price for commodity derivative contracts purchased or sold. There may be a risk of lower liquidity in some commodity derivative contracts as compared to active commodity derivative contracts. As a result, your order may only be partially executed, or may be executed with relatively greater price difference or may not be executed at all. b. Buying/ Selling without intention of giving and/ or taking delivery of certain commodities may also result into losses, because in such a situation, commodity derivative contracts may have to be squared-off at a low/ high prices, compared to the expected price levels, so as not to have any obligation to deliver/ receive such commodities. Risk of Wider Spreads a. Spread refers to the difference in best buy price and best sell price. It represents the differential between the price of buying a commodity derivative and immediately selling it or vice versa. Lower liquidity and higher volatility may result in wider than normal spreads for less liquid or illiquid commodities/ commodity derivatives contracts. This in turn will hamper better price formation. Risk-reducing orders a. Most of the Exchanges have a facility for investors to place limit orders, stop loss orders etc. Placing of such orders (e.g. stop loss orders or limit orders) which are intended to limit losses to certain amounts may not be effective many a time because rapid movement in market conditions may make it impossible to execute such orders. b. A market order will be executed promptly, subject to availability of orders on opposite side, without regard to price and that while the customer may receive a prompt execution of a market order, the execution may be at available prices of outstanding orders, which satisfy the order quantity, on price time priority. It may be understood that these prices may be significantly different from the last traded price or the best price in that commodity derivatives contract. c. A limit order will be executed only at the limit price specified for the order or a better price. However, while the client received price protection, there is a possibility that the order may not be executed at all. d. A stop loss order is generally placed "away" from the current price of a commodity derivatives contract, and such order gets activated if and when the contract reaches, or trades through, the stop price. Sell stop orders are entered ordinarily below the current price, and buy stop orders are entered ordinarily above the current price. When the contract approaches pre-determined price, or trades through such price, the stop loss order converts to a market/limit order and is executed at the limit or better. There is no assurance therefore that the limit order will be executable since a contract might penetrate the pre-determined price, in which case, the risk of such order not getting executed arises, just as with a regular limit order. v. Risk of News Announcements a. Traders/Manufacturers make news announcements that may impact the price of the commodities and/or commodity derivatives contracts. These announcements may occur during trading and when combined with lower liquidity and higher volatility may suddenly cause an 16

17 unexpected positive or negative movement in the price of the commodity/ commodity derivatives contract. vi. Risk of Rumours a. Rumours about the price of a commodity at times float in the market through word of mouth, newspaper, websites or news agencies, etc., the investors should be wary of and should desist from acting on rumours. vii. System Risk a. High volume trading will frequently occur at the market opening and before market close. Such high volumes may also occur at any point in the day. These may cause delays in order execution or confirmation. b. During periods of volatility, on account of market participants continuously modifying their order quantity or prices or placing fresh orders, there may be delays in execution of order and its confirmation. c. Under certain market conditions, it may be difficult or impossible to liquidate a position in the market at a reasonable price or at all, when there are no outstanding orders either on the buy side or the sell side, or if trading is halted in a commodity due to any action on account of unusual trading activity or price hitting circuit filters or for any other reason. viii. System/ Network Congestion a.trading on the Exchange is in electronic mode, based on satellite/ leased line 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 the control of and may result in delay in processing or not processing buy or sell orders either in part or in full. You are cautioned to note that although these problems may be temporary in nature, but when you have outstanding open positions or unexecuted orders, these represent a risk because of your obligations to settle all executed transactions. 2. As far as Futures Commodity Derivatives are concerned, please note and get yourself acquainted with the following additional features:- Effect of "Leverage" or "Gearing": a.the amount of margin is small relative to the value of the commodity derivatives contract so the transactions are 'leveraged' or 'geared'. Commodity Derivatives trading, which is conducted with a relatively small amount of margin, provides the possibility of great profit or loss in comparison with the principal investment amount. But transactions in commodity derivatives carry a high degree of risk. You should therefore completely understand the following statements before actually trading in commodity derivatives contracts and also trade with caution while taking into account one's circumstances, financial resources, etc. b. Trading in Futures Commodity Derivativesinvolves daily settlement of all positions. Every day the open positions are marked to market based on the closing price. If the closing price has moved against you, you will be required to deposit the amount of loss (notional) resulting from such movement. This margin will have to be paid within a stipulated time frame, generally before commencement of trading on the next day. c. If you fail to deposit the additional margin by the deadline or if an outstanding debt occurs in your account, the Member of the Exchange may liquidate/square-up a part of or the whole position. In this case, you will be liable for any losses incurred due to such square-up/ Close Outs. d. Under certain market conditions, an Investor may find it difficult or impossible to execute the transactions. For example, this situation can occur due to factors such as illiquidity i.e. when there are insufficient bids or offers or suspension of trading due to price limit or circuit breakers etc. e. Steps, such as, changes in the margin rate, increase in the cash margin rate etc. may be adopted in order to maintain market stability. These new measures may be applied to the existing open interests. In such conditions, you will be required to put up additional margins or reduce your positions. f. You must ask your Member of the Exchange to provide the full details of the commodity derivatives contracts you plan to trade i.e. the contract specifications and the associated obligations. 3. TRADING THROUGH WIRELESS TECHNOLOGY OR ANY OTHER TECHNOLOGY: 4. General Any additional provisions defining the features, risks, responsibilities, obligations and liabilities associated with commodities trading through wireless technology or any other technology should be brought to the notice of the client by the member. i. Deposited cash and property: You should familiarize yourself with the protections accorded to the money or other property you deposit particularly in the event of a firm become insolvent or bankrupt. The extent to which you may recover your money or property may be governed by specific legislation or local rules. In some jurisdictions, property, which has been specifically identifiable as your own, will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall. In case of any dispute with the Member of the Exchange, the same shall be subject to arbitration as per the Rules, Bye-laws and Business Rules of the Exchange. ii. Commission and other charges: Before you begin to trade, you should obtain a clear explanation of all commissions, fees and other charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss. iii. For rights and obligations of the Members/Authorised Persons/ clients, please refer to Annexure 3 iv. The term Constituent shall mean and include a Client, a Customer or an Investor, who deals with a member for the purpose of trading in the commodity derivatives through the mechanism provided by the Exchange. v. The term member shall mean and include a Trading Member or a Member/Broker, who has been admitted as such by the Exchange and got a Unique Member Code from FMC. I had read and understood the aforementioned standard documents. I/we are also aware that the aforementioned standard documents are made available in the website of Inditrade viz 10 Signature of the client 17 Date :...

18 RIGHTS AND OBLIGATIONS OF MEMBERS, AUTHORIZED PERSONS AND CLIENTS as Prescribed by FMC and Commodity Exchanges Annexure The client shall invest/trade in those commodities /contracts/other instruments admitted to dealings on the Exchanges as defined in the Rules, Byelaws and Business Rules/ Regulations of Exchanges/ Forward Markets Commission (FMC) and circulars/notices issued there under from timeto time. 2. The Member, Authorized Person and the client shall be bound by all the Rules, Byelaws and Business Rules of the Exchange and circulars/notices issued there under and Rules and Regulations of FMC and relevant notifications of Government authorities as may be in force from time to time. 3. The client shall satisfy himself of the capacity of the Member to deal in commodities and/or deal in derivatives contracts and wishes to execute its orders through the Member and the client shall from time to time continue to satisfy itself of such capability of the Member before executing orders through the Member. 4. The Member shall continuously satisfy itself about the genuineness and financial soundness of the client and investment objectives relevant to the services to be provided. 5. The Member shall take steps to make the client aware of the precise nature of the Member s liability for business to be conducted, including any limitations, the liability and the capacity in which the Member acts. 6. Requirements of professional diligence a. The Member must exercise professional diligence while entering into a financial contract or discharging any obligations under it. b. Professional diligence means the standard of skill and care that a Member would be reasonably expected to exercise towards a Client, commensurate with- I. honest market practice; ii.the principle of good faith; iii.the level of knowledge, experience and expertise of the Client; iv.the nature and degree of risk embodied in the financial product* or financial service being availed by the Client; and v.the extent of dependence of the Client on the Member. * Commodity derivative contract 7. The Authorized Person shall provide necessary assistance and co-operate with the Member in all its dealings with the client(s). CLIENT INFORMATION 8. The client shall furnish all such details in full as are required by the Member in "Account Opening Form with supporting details, made mandatory by commodity exchanges/fmc from time to time. 9. The client shall familiarize himself with all the mandatory provisions in the Account Opening documents. Any additional clauses or documents specified by the Member shall be non-mandatory; therefore, subject to specific acceptance by the client. 10. The client shall immediately notify the Member in writing if there is any change in the information in the account opening form as provided at the time of account opening and thereafter; including the information on winding up petition/insolvency petition or any litigation which may have material bearing on his capacity. The client shall provide/update the financial information to the Member on a periodic basis. 18

19 11.A. Protection from unfair terms in financial contracts** a. An unfair term of a non-negotiated contract will be void. b. A term is unfair if it I.causes a significant imbalance in the rights and obligations of the parties under the financial contract, to the detriment of the Client; and ii is not reasonably necessary to protect the legitimate interests of the Member. c. The factors to be taken into account while determining whether a term is unfair, include I.the nature of the financial product or financial service dealt with under the financial contract; ii.the extent of transparency of the term; **contracts offered by commodity exchanges 11. B. iii.the extent to which the term allows a Client to compare it with other financial contracts for similar financial products or financial services; and iv.the financial contract as a whole and the terms of any other contract on which it is dependent. d.a term is transparent if it I.is expressed in reasonably plain language that is likely to be understood by the Client; ii.is legible and presented clearly; and iii.is readily available to the Client affected by the term. e. If a term of a financial contract is determined to be unfair under point 11.A.c, the parties will continue to be bound by the remaining terms of the financial contract to the extent that the financial contract is capable of enforcement without the unfair term. a. Non-negotiated contract means a contract whose terms, other than the terms contained in point 11.C. (given below) are not negotiated between the parties to the financial contract and includes I. a financial contract in which, relative to the Client, the Member has a substantially greater bargaining power in determining terms of the financial contract; and ii. a standard form contract. b. Standard form contract means a financial contract that is substantially not negotiable for the Client, except for the terms contained in point 11.C. c. Even if some terms of a financial contract are negotiated in form, the financial contract may be regarded as a non- negotiated contract if so indicated by I. an overall and substantial assessment of the financial contract; and ii. the substantial circumstances surrounding the financial contract.. d. In a claim that a financial contract is a non-negotiated contract, the onus of demonstrating otherwise will be on the Member. 11. C. a. The above does not apply to a term of a financial contract if it i. defines the subject matter of the financial contract; ii. sets the price that is paid, or payable, for the provision of the financial product or financial service under the financial contract and has been clearly disclosed to the Client; or 19

20 iii. is required, or expressly permitted, under any law or regulations. b. The exemption under point 11.C does not apply to a term that deals with the payment of an amount which is contingent on the occurrence or non- occurrence of any particular event. 12. The Member and Authorized Person shall maintain all the details of the client as mentioned in the account opening form or any other information pertaining to the client, confidentially and that they shall not disclose the same to any person/authority except as required under any law/regulatory requirements. Provided however that the Member may so disclose information about his client to any person or authority with the express permission of the client. 13. A. Protection of personal information and confidentiality 13. B. a. Personal information means any information that relates to a Client or allows a Client s identity to be inferred, directly or indirectly, and includes i. name and contact information; ii. biometric information, in case of individuals iii. information relating to transactions in, or holdings of, financial products iv. information relating to the use of financial services; or v. such other information as may be specified. a. A Member must i. not collect personal information relating to a Client in excess of what is required for the provision of a financial product or financial service; ii. maintain the confidentiality of personal information relating to Clients and not disclose it to a third party, except in a manner expressly permitted under point 13.B.b.; iii. make best efforts to ensure that any personal information relating to a Client that it holds is accurate, up to date and complete; iv. ensure that Clients can obtain reasonable access to their personal information, subject to any exceptions that the Regulator may specify; and v. allow Clients an effective opportunity to seek modifications to their personal information to ensure that the personal information held by the Member is accurate, up to date and complete. b. A Member may disclose personal information relating to a Client to a third party only if i. it has obtained prior written informed consent of the Client for the disclosure, after giving the Client an effective opportunity to refuse consent; ii. the Client has directed the disclosure to be made; iii. the Regulator has approved or ordered the disclosure, and unless prohibited by the relevant law or regulations, the Client is given an opportunity to represent under such law or regulations against such disclosure; iv. the disclosure is required under any law or regulations, and unless prohibited by such law or regulations, the Client is given an opportunity to represent under such law or regulations against such disclosure; v. the disclosure is directly related to the provision of a financial product or financial service to the Client, if the Member 1. informs the Client in advance that the personal information may be shared with a third party; and 20

21 2. makes arrangements to ensure that the third party maintains the confidentiality of the personal information in the same manner as required under this Part; or vi. the disclosure is made to protect against or prevent actual or potential fraud, unauthorised transactions or claims, if the Member arranges with the third party to maintain the confidentiality of the personal information in the manner required under this Part.- c. Third party means any person other than the concerned Member, including a person belonging to the same group as the Member. 14.A Requirement of fair disclosure both initially and on continuing basis 14.B. a. Member must ensure fair disclosure of information that is likely to be required by a Client to make an informed transactional decision. b. In order to constitute fair disclosure, the information must be provided i. sufficiently before the Client enters into a financial contract, so as to allow the Client reasonable time to understand the information; ii. in writing and in a manner that is likely to be understood by a Client belonging to a particular category; and iii.in a manner that enables the Client to make reasonable comparison of the financial product or financial service with other similar financial products or financial services. c. The types of information that must be disclosed to a Client in relation to a financial product or financial service, which may include information regarding i. main characteristics of the financial product or financial service, including its features, benefits and risks to the Client; ii. consideration to be paid for the financial product or financial service or the manner in which the consideration is calculated; iii. existence, exclusion or effect of any term in the financial product or financial contract; iv. nature, attributes and rights of the Member, including its identity, regulatory status and affiliations; v. contact details of the Member and the methods of communication to be used between the Member and the Client; vi. rights of the Client to rescind a financial contract within a specified period; or vii. rights of the Client under any law or regulations. a. Member must provide a Client that is availing a financial product or financial service provided by it, with the following continuing disclosures I. any material change to the information that was required to be disclosed under point 14.A at the time when the Client initially availed the financial product or financial service; ii. information relating to the status or performance of a financial product held by the Client, as may be required to assess the rights or interests in the financial product or financial service; and iii. any other information that may be specified. b. A continuing disclosure must be made 21

22 I. within a reasonable time-period from the occurrence of any material change or at reasonable periodic intervals, as applicable; and ii. in writing and in a manner that is likely to be understood by a Client belonging to that category. MARGINS 15. The client shall pay applicable initial margins, withholding margins, special margins or such other margins a s are considered necessary by the Member or the Exchange or as may be directed by FMC from time to time as applicable to the segment(s) in which the client trades. The Member is permitted in its sole and absolute discretion to collect additional margins (even though not required by the Exchange or FMC) and the client shall be obliged to pay such margins within the stipulated time. 16. The client understands that payment of margins by the client does not necessarily imply complete satisfaction of all dues. In spite of consistently having paid margins, the client may, on the settlement of its trade, be obliged to pay (or entitled to receive) such further sums as the contract may dictate/require. TRANSACTIONS AND SETTLEMENTS 17. The client shall give any order for buy or sell of commodities derivatives contract in writing or in such form or manner, as may be mutually agreed between the client and the Member however ensuring the regulatory requirements in this regard are complied with. The Member shall ensure to place orders and execute the trades of the client, only in the Unique Client Code assigned to that client. 18. The Member shall inform the client and keep him apprised about trading/settlement cycles, delivery/payment schedules, any changes therein from time to time, and it shall be the responsibility in turn of the client to comply with such schedules/procedures of the relevant commodity exchange where the trade is executed. 19. The Member shall ensure that the money deposited by the client shall be kept in a separate account, distinct from his/its own account or account of any other client and shall not be used by the Member for himself/itself or for any other client or for any purpose other than the purposes mentioned in Rules, circulars, notices, guidelines of FMC and/or Rules, Business Rules, Bye-laws, circulars and notices of Exchange. 20. Where the Exchange(s) cancels trade(s) suo moto all such trades including the trade/s done on behalf of the client shall ipso facto stand cancelled, Member shall be entitled to cancel the respective contract(s) with client(s). 21. The transactions executed on the Exchange are subject to Rules, Byelaws and Business Rules and circulars/notices issued thereunder of the Exchanges where the trade is executed and all parties to such trade shall have submitted to the jurisdiction of such court as may be specified by the Byelaws and Business Rules of the Exchanges where the trade is executed for the purpose of giving effect to the provisions of the Rules, Byelaws and Business Rules of the Exchanges and the circulars/notices issued thereunder. BROKERAGE 22. The Client shall pay to the Member brokerage and statutory levies as are prevailing from time to time and as they apply to the Client s account, transactions and to the services that Member renders to the Client. The Member shall not charge brokerage more than the maximum brokerage permissible as per the Rules, Business Rules and Bye-laws of the relevant commodity exchanges and/or Rules of FMC. LIQUIDATION AND CLOSE OUT OF POSITION 23. Without prejudice to the Member's other rights (including the right to refer a matter to arbitration), the client understands that the Member shall be entitled to liquidate/close out all or any of the client's positions for non- payment of margins or other amounts, outstanding debts, etc. and adjust the proceeds of such liquidation/close out, if any, against the client's liabilities/obligations. Any and all losses and financial charges on account of such liquidation/closing-out shall be charged to and borne by the client. 22

23 24. In the event of death or insolvency of the client or his/its otherwise becoming incapable of receiving and paying for or delivering or transferring commodities which the client has ordered to be bought or sold, Member may close out the transaction of the client and claim losses, if any, against the estate of the client. The client or his nominees, successors, heirs and assignee shall be entitled to any surplus which may result there from. The client shall note that transfer of funds/commodities in favor of a Nominee shall be valid discharge by the Member against the legal heir. DISPUTE RESOLUTION 25. The Member shall co-operate in redressing grievances of the client in respect of all transactions routed through it. 26. The client and the Member shall refer any claims and/or disputes with respect to deposits, margin money, etc., to arbitration as per the Rules, Byelaws and Business Rules of the Exchanges where the trade is executed and circulars/notices issued thereunder as may be in force from time to time. 27. The client/member understands that the instructions issued by an authorized representative for dispute resolution, if any, of the client/member shall be binding on the client/member in accordance with the letter authorizing the said representative to deal on behalf of the said client/member. 28. Requirement for each Member to have an effective grievance redress mechanism which is accessible to all its Clients a. A Member must have in place an effective mechanism to receive and redress complaints from its Clients in relation to financial products or financial services provided by it, or on its behalf, in a prompt and fair manner. b. A Member must inform a Client, at the commencement of relationship with the Client and at such other time when the information is likely to be required by the Client, of i.the Client s right to seek redress for any complaints; and ii. the processes followed by the Member to receive and redress complaints from its Clients. 29. A. Suitability of advice for the Client Right to receive advice that is suitable taking into account the relevant personal circumstances of the Client, such as the Clients financial circumstances and needs. This obligation would apply to persons who render advice to Clients and the regulator may specify categories of financial products and service that necessarily require such advice to be given. a. A Member must i. make all efforts to obtain correct and adequate information about the relevant personal circumstances of a Client; and ii. ensure that the advice given is suitable for the Client after due consideration of the relevant personal circumstances of the Client. b. If it is reasonably apparent to the Member that the available information regarding the relevant personal circumstances of a Client is incomplete or inaccurate, the Member must warn the Client of the consequences of proceeding on the basis of incomplete or inaccurate information. c. If a Client intends to avail of a financial product or financial service that the Member determines unsuitable for the Client, the Member I. must clearly communicate its advice to the Client in writing and in a manner that is likely to be understood by the Client; and ii. may provide the financial product or financial service requested by the Client only after complying with point 29. A.a and obtaining a written acknowledgement from the Client. 30. Dealing with conflict of interest In case of any conflict between the interests of a Client and that of the Member, preference much be given to the Client interests. 23

24 a. A member must i. provide a Client with information regarding any conflict of interests, including any conflicted remuneration that the Member has received or expects to receive for making the advice to the Client; and ii. give priority to the interests of the Client if the Member knows, or reasonably ought to know, of a conflict between 1. its own interests and the interests of the Client; or 2. the interests of the concerned Member and interests of the Client, in cases where the Member is a financial representative. b. The information under point 16a.i. must be given to the Client in writing and in a manner that is likely to be understood by the Client and a written acknowledgement of the receipt of the information should be obtained from the Client. c. In this section, conflicted remuneration means any benefit, whether monetary or non-monetary, derived by a Member from persons other than Clients,that could, under the circumstances, reasonably be expected to influence the advice given by the Member to a Client. TERMINATION OF RELATIONSHIP 31. This relationship between the Member and the client shall be terminated; if the Member for any reason ceases to be a member of the commodity exchange including cessation of membership by reason of the Member's default, death, resignation or expulsion or if the certificate is cancelled by the Exchange. 32. The Member, Authorized Person and the client shall be entitled to terminate the relationship between them without giving any reasons to the other party, after giving notice in writing of not less than one month to the other parties. Notwithstanding any such termination, all rights, liabilities and obligations of the parties arising out of or in respect of transactions entered into prior to the termination of this relationship shall continue to subsist and vest in/be binding on the respective parties or his/its respective heirs, executors, administrators, legal representatives or successors, as the case may be. 33. In the event of demise/insolvency of the Authorized Person or the cancellation of his/its registration with the Board or/withdrawal of recognition of the Authorized Person by the commodity exchange and/or termination of the agreement with the Authorized Person by the Member, for any reason whatsoever, the client shall be informed of such termination and the client shall be deemed to be the direct client of the Member and all clauses in the Rights and Obligations document(s) governing the Member, Authorized Person and client shall continue to be in force as it is, unless the client intimates to the Member his/its intention to terminate their relationship by giving a notice in writing of not less than one month. ADDITIONAL RIGHTS AND OBLIGATIONS 34. The Member and client shall reconcile and settle their accounts from time to time as per the Rules, Business Rules, Bye Laws, Circulars, Notices and Guidelines issued by FMC and the relevant Exchanges where the trade is executed. 35. The Member shall issue a contract note to his clients for trades executed in such format as may be prescribed by the Exchange from time to time containing records of all transactions including details of order number, trade number, trade time, trade price, trade quantity, details of the derivatives contract, client code, brokerage, all charges levied etc. and with all other relevant details as required therein to be filled in and issued in such manner and within such time as prescribed by the Exchange. The Member shall send contract notes to the investors within 24 hours of the execution of the trades in hard copy and/or in electronic form using digital signature. 36. The Member shall make pay out of funds or delivery of commodities as per the Exchange Rules, Bye-Laws, Business Rules and Circulars, as the case may be, to the Client on receipt of the payout from the relevant 24

25 Exchange where the trade is executed unless otherwise specified by the client and subject to such terms and conditions as may be prescribed by the relevant Exchange from time to time where the trade is executed. 37. The Member shall send a complete `Statement of Accounts for both funds and commodities in respect of each of its clients in such periodicity and format within such time, as may be prescribed by the relevant Exchange, from time to time, where the trade is executed. The Statement shall also state that the client shall report errors, if any, in the Statement immediately but not later than 30 calendar days of receipt thereof, to the Member. A detailed statement of accounts must be sent every month to all the clients in physical form. The proof of delivery of the same should be preserved by the Member. 38. The Member shall send margin statements to the clients on monthly basis. Margin statement should include, inter-alia, details of collateral deposited, collateral utilized and collateral status (available balance/due from client) with break up in terms of cash, Fixed Deposit Receipts (FDRs), Bank Guarantee, warehouse receipts, securities etc. 39. The Client shall ensure that it has the required legal capacity to, and is authorized to, enter into the relationship with Member and is capable of performing his obligations and undertakings hereunder. All actions required to be taken to ensure compliance of all the transactions, which the Client may enter into shall be completed by the Client prior to such transaction being entered into. 40. In case, where a member surrenders his/ her/ its membership, Member gives a public notice inviting claims, if any, from investors. In case of a claim relating to transactions executed on the trading system of the Exchange, ensure that client lodge a claim with the Exchange within the stipulated period and with the supporting documents. 41. A. Protection from unfair conduct which includes misleading conduct & abusive conduct a. Unfair conduct in relation to financial products or financial services is prohibited. b. Unfair conduct means an act or omission by a Member or its financial representative that significantly impairs, or is likely to significantly impair, the ability of a Client to make an informed transactional decision and includes i. misleading conduct under point 41.B ii. abusive conduct under point 41.C iii. such other conduct as may be specified. 41.B. a. Conduct of a Member or its financial representative in relation to a determinative factor is misleading if it is likely to cause the Client to take a transactional decision that the Client would not have taken otherwise, and the conduct involves i. providing the Client with inaccurate information or information that the Member or financial representative does not believe to be true; or ii. providing accurate information to the Client in a manner that is deceptive. b. In determining whether a conduct is misleading under point 41.B.a, the following factors must be considered to be determinative factors i. the main characteristics of a financial product or financial service, including its features, benefits and risks to the Client; ii. the Client s need for a particular financial product or financial service or its suitability for the Client; iii. the consideration to be paid for the financial product or financial service or the manner in which the consideration is calculated; 25

26 41.C. iv. the existence, exclusion or effect of any term in a financial contract, which is material term in the context of that financial contract; v. the nature, attributes and rights of the Member, including its identity, regulatory status and affiliations; and vi. the rights of the Client under any law or regulations. a. A conduct of a Member or its financial representative in relation to a financial product or financial service is abusive if it i. involves the use of coercion or undue influence; and ii. causes or is likely to cause the Client to take a transactional decision that the Client would not have taken otherwise. b. In determining whether a conduct uses coercion or undue influence, the following must be considered i. the timing, location, nature or persistence of the conduct; ii. the use of threatening or abusive language or behaviour; iii. the exploitation of any particular misfortune or circumstance of the Client, of which the Member is aware, to influence the Client s decision with regard to a financial product or financial service; iv. any non-contractual barriers imposed by the Member where the Client wishes to exercise rights under a financial contract, including v. the right to terminate the financial contract; vi. the right to switch to another financial product or another Member and vii. a threat to take any action, depending on the circumstances in which the threat is made. ELECTRONIC CONTRACT NOTES (ECN) 42. In case, client opts to receive the contract note in electronic form, he shall provide an appropriate id (created by the client) to the Member (Kindly refer Appendix A of Annexure 1). Member shall ensure that all the rules/business Rule/Bye-Laws/ circulars issued from time to time in this regard are complied with. The client shall communicate to the Member any change in the -id through a physical letter. If the client has opted for internet trading, the request for change of id may be made through the secured access by way of client specific user id and password. 43. The Member shall ensure that all ECNs sent through the shall be digitally signed, encrypted, nontamperable and in compliance with the provisions of the IT Act, In case, ECN is sent through as an attachment, the attached file shall also be secured with the digital signature, encrypted and non-tamperable. 44. The client shall note that non-receipt of bounced mail notification by the Member shall amount to delivery of the contract note at the ID of the client. 45. The Member shall retain ECN and acknowledgement of the in a soft and non-tamperable form in the manner prescribed by the exchange in compliance with the provisions of the IT Act, 2000 and as per the extant rules/circulars/guidelines issued by FMC/Commodity exchanges from time to time. The proof of delivery i.e., log report generated by the system at the time of sending the contract notes shall be maintained by the Member for the specified period under the extant rules/circulars/guidelines issued by FMC/Commodity exchanges. The log report shall provide the details of the contract notes that are not delivered to the client/ s rejected or bounced back. The Member shall take all possible steps to ensure receipt of notification of bounced mails by him at all times within the stipulated time periodunder the extant rules/circulars/guidelines issued by FMC/Commodity exchanges. 26

27 46. The Member shall continue to send contract notes in the physical mode to such clients who do not opt to receive the contract notes in the electronic form. Wherever the ECNs have not been delivered to the client or has been rejected (bouncing of mails) by the ID of the client, the Member shall send a physical contract note to the client within the stipulated time under the extant Regulations/ Rules, Bye-Laws, Business Rules and Circulars of FMC/commodity exchanges and maintain the proof of dispatch and delivery of such physical contract notes. 47. In addition to the communication of the ECNs to the client, the Member shall simultaneously publish the ECN on his designated web-site, if any, in a secured way and enable relevant access to the clients and for this purpose, shall allot a unique user name and password to the client, with an option to the client to save the contract note electronically and/or take a print out of the same. 48. The Electronic Contract Note (ECN) declaration form will be obtained from the Client who opts to receive the contract note in electronic form. This declaration will remain valid till it is revoked by the client. LAW AND JURISDICTION 49. In addition to the specific rights set out in this document, the Member, Authorised Person and the client shall be entitled to exercise any other rights which the Member or the client may have under the Rules, Bye-laws and Business Rules of the Exchanges in which the client chooses to trade and circulars/notices issued thereunder or Rules of FMC. 50. The provisions of this document shall always be subject to Government notifications, any rules, guidelines and circulars/notices issued by FMC and Circulars, Rules, Business Rules and Bye laws of the relevant commodity exchanges, where the trade is executed, that may be in force from time to time. 51. The Member and the client shall abide by any award passed by the Arbitrator(s) under the Arbitration and Conciliation Act, However, there is also a provision of appeal, if either party is not satisfied with the arbitration award. 52. Words and expressions which are used in this document but which are not defined herein shall, unless the context otherwise requires, have the same meaning as assigned thereto in the Rules, Byelaws and Regulations/Business Rules and circulars/notices issued thereunder of the Exchanges/FMC. 53. All additional voluntary/non mandatory clauses/document added by the Member should not be in contravention with Rules/ Business Rules/Notices/Circulars of Exchanges/FMC. Any changes in such voluntary clauses/document(s) need to be preceded by a notice of 15 days. Any changes in the rights and obligations which are specified by Exchanges/FMC shall also be brought to the notice of the clients. 54. If the rights and obligations of the parties hereto are altered by virtue of change in Rules of FMC or Bye-laws, Rules and Business Rules of the relevant commodity exchanges where the trade is executed, such changes shall be deemed to have been incorporated herein in modification of the rights and obligations of the parties mentioned in this document. 55. Members are required to send account statement to their clients every month in physical form. I/We am/are aware and have noted that M/s. Inditrade Derivatives and Commodities Ltd. may carryout proprietary trading. I had read and understood the aforementioned standard documents. I/we are also aware that the aforementioned standard documents are made available in the website of Inditrade viz 11 Signature of the client 27

28 INTERNET & WIRELESS TECHNOLOGY BASED TRADING FACILITY PROVIDED BY MEMBERS TO CLIENT (All the clauses mentioned in the Rights and Obligations document(s) shall be applicable. Additionally, the clauses mentioned herein shall also be applicable.) 1. Member is eligible for providing Internet based trading (IBT) and commodities trading through the use of wireless technology that shall include the use of devices such as mobile phone, laptop with data card, etc. which use Internet Protocol (IP). The Member shall comply with all requirements applicable to internet based trading/- commodities trading using wireless technology as may be specified by FMC& the Exchanges from time to time. 2. The client is desirous of investing/trading in commodities and for this purpose, the client is desirous of using either the internet based trading facility or the facility for commodities trading through use of wireless technology. The Member shall provide the Member s IBT Service to the Client, and the Client shall avail of the Member s IBT Service, on and subject to FMC/Exchanges Provisions and the terms and conditions specified on the Member s IBT Web Site provided that they are in line with the norms prescribed by Exchanges/FMC. 3. The Member shall bring to the notice of client the features, risks, responsibilities, obligations and liabilities associated with commodities trading through wireless technology/internet or any other technology should be brought to the notice of the client by the Member. 4. The Member shall make the client aware that the Member s IBT system itself generates the initial password and its password policy as stipulated in line with norms prescribed by Exchanges/FMC. 5. The Client shall be responsible for keeping the Username and Password confidential and secure and shall be solely responsible for all orders entered and transactions done by any person whosoever through the Member s IBT System using the Client s Username and/or Password whether or not such person was authorized to do so. Also the client is aware that authentication technologies and strict security measures are required for the internet trading/ commodities trading through wireless technology through order routed system and undertakes to ensure that the password of the client and/or his authorized representative are not revealed to any third party including employees and dealers of the Member 6. The Client shall immediately notify the Member in writing if he forgets his password, discovers security flaw in Member s IBT System, discovers/suspects discrepancies/ unauthorized access through his username/password/account with full details of such unauthorized use, the date, the manner and the transactions effected pursuant to such unauthorized use, etc. 7 The Client is fully aware of and understands the risks associated with availing of a service for routing orders over the internet/ commodities trading through wireless technology and Client shall be fully liable and responsible for any and all acts done in the Client s Username/password in any manner whatsoever. 8. The Member shall send the order/trade confirmation through to the client at his request. The client is aware that the order/ trade confirmation is also provided on the web portal. In case client is trading using wireless technology, the Member shall send the order/trade confirmation on the device of the client. 9. The client is aware that trading over the internet involves many uncertain factors and complex hardware, software, systems, communication lines, peripherals, etc. are susceptible to interruptions \ and dislocations. The Member and the Exchange do not make any representation or warranty that the Member s IBT Service will be available to the Client at all times without any interruption. 10. The Client shall not have any claim against the Exchange or the Member on account of any suspension, interruption, non-availability or malfunctioning of the Member s IBT System or Service or the Exchange s service or systems or non-execution of his orders due to any link/system failure at the Client/Members/Exchange end for any reason beyond the control of the Member/Exchanges. I had read and understood the aforementioned standard documents. I/we are also aware that the aforementioned standard documents are made available in the website of Inditrade viz 12 Signature of the client 28

29 Mandatory GUIDANCE NOTE - DO s AND DON Ts FOR THE CLIENTS Annexure - 4 Do s 1. Trade only through Registered Members of the Exchange. Check from the Exchange website at following link to see whether the Member is registered with the Exchange. 2. Insist on filling up a standard 'Know Your Client (KYC)' form before you commence trading 3. Insist on getting a Unique Client Code (UCC) and ensure all your trades are done under the said UCC. 4 Insist on reading and signing a standard 'Risk Disclosure Agreement'. 5. Obtain a copy of your KYC and/ or other documents executed by you with the Member, from the Member. 6. Cross check the genuineness of trades carried out at the Exchange through the trade verification facility available on the Exchange website at the following link The trades can be verified online where trade information is available up to 5 working days from the trade date. 7. Insist on a duly signed Contract Note in specified format for every executed trade within 24 hours of trade, highlighting the details of the trade along with your UCC. 8. Ensure that the Contract Note contains all the relevant information such as Member Registration Number, Order No., Order Date, Order time, Trade No., Trade rate, Quantity, Arbitration Clause, etc. 9. Obtain receipt for collaterals deposited with the Member towards margins. 10. Go through the Rules, Bye-laws, Regulations, Circulars, Directives, Notifications of the Exchange as well as of the Regulators, Government and other authorities to know your rights and duties vis-à-vis those of the Member. 11. Ask all relevant questions and clear your doubts with your Member before transacting. 12. Insist on receiving the bills for every settlement. 13. Insist on Monthly statements of your ledger account and report any discrepancies in the statement to your Member within 7 working days. In case of unsatisfactory response report the discrepancy to the Exchange within 15 working days from the date of cause of action. 14. Scrutinize minutely both the transaction & holding statements that you receive from your Depository Participant. 15. Keep Delivery Instruction Slips (DIS) book issued by DPs in safe possession. 16. Ensure that the DIS numbers are preprinted and your account number (UCC) is mentioned in the DIS book. 17. Freeze your Demat account in case of your absence for longer duration or in case of not using the account frequently. 18. Pay required margins in time and only by Cheque and ask for receipt thereof from the Member. 19. Deliver the commodities in case of sale or pay the money in case of purchase within the time prescribed. 20. Understand and comply with accounting standards for derivatives. 21. Ensure to read, understand and then sign the voluntary clauses, if any, agreed between you and the Member. Note that the clauses as agreed between you and the Member cannot be changed without your consent. 22. Get a clear idea about all brokerage, commissions, fees and other charges levied by the Member on you for trading and the relevant provisions/ guidelines specified by FMC/Commodity exchanges. 23. Make the payments by account payee cheque in favour of the Member. Ensure that you have a documentary proof of your payment/deposit of commodities with the Member, stating date, commodity, quantity, towards which bank/ demat account such money or commodities (in the form of warehouse receipts) deposited and from which bank/ demat account. 24. The payout of funds or delivery of commodities (as the case may be) shall not be made to you within one working day from the receipt of payout from the Exchange, in case you have given specific authorization for maintaining running account to the member. Thus, in this regard, the running account authorization provided by you to the Member shall be subject to the following conditions: a) Such authorization from you shall be dated, signed by you only and contains the clause that you may revoke the same at any time. b) You need to bring any dispute arising from the statement of account to the notice of the Member in writing preferably within 7 (seven) working days from the date of receipt of funds/commodities or statement, as the case may be. In case of dispute, refer the matter in writing to the Investors Grievance Cell of the relevant Commodity exchanges without delay. c) In case you have not opted for maintaining running account and pay-out is not received on the next working day of the receipt of payout from the exchanges, please refer the matter to the Member. In case there is dispute, ensure that you lodge a complaint in writing immediately with the Investors Grievance Cell of the relevant Commodity exchange. d) Please register your mobile number and id with the Member, to receive trade confirmation alerts/ details of the transactions through SMS or , by the end of the trading day, from the commodity exchanges. 25. You should familiarize yourself with the protection accorded to the money or other property you may deposit with your member, particularly in the event of a default in the commodity derivatives market or the member becomes insolvent or bankrupt. 26. Please ensure that you have a documentary proof of having made the deposit of such money or property with the member, stating towards which account such money or property deposited. 27. In case your problem/grievance/issue is not being sorted out by concerned Member/Authorised Person then you may take up the matter with the concerned Commodity Exchange. If you are not satisfied with the resolution of your complaint then you can escalate the matter to FMC. Don ts 1. Do not deal with any unregistered intermediaries. 2. Do not undertake off-market transactions as such transactions are illegal and fall outside the jurisdiction of the Exchange. 3. Do not enter into assured returns arrangement with any Member 4. Do not get carried away by luring advertisements, rumours, hot tips, explicit/ implicit promise of returns, etc. 5. Do not make payments in cash/ take any cash towards margins and settlement to/ from the Member. 6. Do not start trading before reading and understanding the Risk Disclosure Agreement. 7. Do not neglect to set out in writing, orders for higher value given over phone. 8. Do not accept unsigned/duplicate contract note/confirmation memo. 9. Do not accept contract note/confirmation memo signed by any unauthorized person. 10. Don t share your internet trading account s password with anyone 11. Do not delay payment/deliveries of commodities to Member. 12. Do not forget to take note of risks involved in the investments. 13. Do not sign blank Delivery Instruction Slips (DIS) while furnishing commodities, deposits and/or keep them with Depository Participants (DP) or member to save time. 14. Do not pay brokerage in excess of that rates prescribed by the Exchange 15. Don t issue cheques in the name of Authorized Person. I had read and understood the aforementioned standard documents. I/we are also aware that the aforementioned standard documents are made available in the website of Inditrade viz 13 Signature of the client 29

30 Mandatory TARIFF SHEET Brokerage Offline clients / Online clients Max of 2.5% on Trade d Value Statutory Charges Exchange levy for NMCE, NCDEX & MCX as per Exchange rules Service Tax 15% ( inclusive of swatch Bharat and krishi kalyan cess) Stamp duty -Aas per applicable State Govtment Rules CTT@0.01% on SELL Value for notified commodities Miscellaneous Charges Late payment charges Cheque Cancellation/Bounce charges Online Charges Printed Statements request Contract Note Physical Charge Contract Note bounced 18% PA per day plus applicable Service tax and Cess. Rs. 500 (inclusive of service tax) per cheque cancellation/ Bounce. Rs. 250 per month per Exchange (subject to vary). Rs. 50/- per request. Rs plus service Tax Rs. 25 plus service Tax Other Charges as applicable VAT rates as per concerned State Government rules. Social Securities Cess as per concerned state Government rules. Making Charges in case of special commodities as per Exchange rules. Warehouse charges. Pledge and other related charges. Penalty leveied by Exchange, FMC and other Regulatory Authorities. Depository Participants Charges. Delivery Related duties, levies and other charges as per the applicable Exchange and Government Rules. Inditrade Derivatives and Commodities Ltd reserves the right to revice brokerage structure & other statutory charges as applicable under respective laws by display of the same on the trading website/ customer care/ direct communication. Proposed Brokerage Details of Account Opening Charges Family Code, if any Intraday amount Drawn On (Bank Name) is there any Trading Account with us in Capital Market Segment, Specify Client Code Authorized By Checked By Name Signature Date BM s Signature BM s Name Address/Seal For Branch Use Only For Head Office Use Only Verified By Name Signature Date Carry Forward Cheque/DD No 14 Signature of the client 30

31 Electronic Contract Note [ECN] DECLARATION (VOLUNTARY) Appendix A To, Inditrade Derivatives and Commodities Ltd. I, a Client of Inditrade Derivatives and Commodities Ltd member of MCX, NCDEX, NMCE Undertake as follows. I am aware that the Member has to provide physical contract note in respect of all the trades placed by me unless I myself want the same in the electronic form... I am aware that the Member has to provide electronic contract note for my convenience on my request only. Though the Member is required to deliver physical contract note, I find that it is inconvenient for me to receive physical contract notes. Therefore, I am voluntarily requesting for delivery of electronic contract note pertaining to all the trades carried out / ordered by me.. I have access to a computer and am a regular internet user, having sufficient knowledge of handling the operations. My id is This has been created by me and not by someone else. I am aware that this declaration form should be in English or in any other language known to me. I am aware that non-receipt of bounced mail notification by the member shall amount to delivery of the contract note at the above ID. The above declaration and the guidelines on ECN given in the Annexure have been read and understood by me.i am aware of the risk involved in dispensing with the physical contract note, and do hereby take full responsibility for the same. (The id must be written in own handwriting of the client.) Client Name: Unique Client Code : PAN: Address : 15 Signature of the client Date : Place: Verification of the client signature done by Name of the designator officer of the member : : Signature Date : 31

32 Additional Terms & Conditions On stamp paper of Rs 100 The Client acknowledges and agrees that he /she/ it has read and under stood the terms and conditions relevent to futures trading on a commodity Exchange and prescribed by Inditrade Derivatives and Commodities Ltd (IDCL). The client further agrees that he /she/ it is bound by the said terms and conditions and any amendments and variations made by IDCL. The client further agree that the terms and conditions notified by IDCL shall be deemed to have been incorporated herein by reference in modification of the rights and obligations of the parties mentioned in this agreement. 1. This agreement shall, at all times, be subject to applicable Laws, any Government Notifications, relevant statutory rules, Regulations, Bye-laws, Directions and/ or Orders of the concerned regulatory body having jurisdiction over the transaction of the products and/or services, as the case may be. 2. The Client Undertakes: (a) To comply with all the requirements, Rules, Regulations, Circulars, Policies and the other applicable laws on Permanent Account Number (PAN) Know Your Customer (KYC), Prevention of Money Laundering Act (PMLA), relevent State Government Sales Tax Act and Central Sales Tax Act / VAT as applicable and shall take Dealer license and/or such other applicable licenses required by the Rubber Board / Spices Board or any other Regulatory Bodies, whether statutory or otherwise, as may be specified (b) To inform IDCL in writing within seven days if any of the licenses required are cancelled or withheld by any authority and / or of any changes in the particulars furnished in the KYC including but not limited to any disciplinary actions/ regulatory actions taken against the Client and/or its directors and officials. 3. The Client authorises IDCL to process / execute all the orders / requests placed by the Client online and/ or offline. The Client shall, at all times, be liable to pay IDCL, the commission/brokerage/fees, service tax, levies and other taxes and transaction expenses as applicable notified by IDCL on its Portal, website or otherwise by notification from time to time or as per the prevailing Rules and Regulations 4. The Client agrees that IDCL shall under no circumstances be held liable by the Client in case of its online and or offline systems or Portal or its website or any related third party's site / services access not being available in the desired manner for reasons including but not limited to natural calamity, floods, fire and other natural disasters, legal restraints, faults in the telecommunication network or Internet or network failure, software or hardware error or any other reason beyond its control. IDCL shall under no circumstances be liable for any damage whatsoever whether such damage are direct, indirect, incidental, consequential and irrespective of whether any claim is based on the loss of revenue, opportunity loss, investment, production, goodwill, profit, interruption of business or any other loss of any character or nature whatsoever and whether sustained by the Client or any other person, representations warranties and convenants by the clients. 5. The Client shall, at all times, be responsible for his investment decisions and / or instruction for transaction placed, or applications preferred by the Client, online and or offline. The Client shall not hold, nor seek to hold, IDCL and its Portal or any of its officers, directors, employees, agents, subsidiaries or affiliates, liable for any loss including but not limited to any losses incurred by and/or attributed to the client. The Client understands that placing an instruction with IDCL, either electronically or otherwise, online or offline does not guarantee execution of the said instruction or acceptance of an application. IDCL shall not be deemed to have received any electronically transmitted instruction or application until IDCL has confirmed to the Client the receipt of such an instruction or application 6. The Client declares that the Client has not received nor been induced by any rebate or gifts, directly or indirectly in making investments in any of the Products and/or Services offered by IDCL; 7. The Client also acknowledges that the employees of IDCL are not authorized to give out any Business advice and the Client shall at all times be responsible and liable for his own actions/inaction. The Client may be able to access research reports through the Internet from the website, including computerized online services or other media. The availability of such information does not constitute a recommendation to buy or sell any of the investment Products. Any investment decisions will be based solely on the Client's own evaluation of financial circumstances and investment objectives. Any real-time quotes provided are only for the Client's individual use and the Client shall not furnish such data to any other person or entity. 8. The Client is aware that IDCL provides research reports ("Research Reports") and market news electronically and or otherwise. The information contained in the research reports are gathered from sources deemed reliable and IDCL does not guarantee the accuracy and completeness of the same and does not accept any claim in this regard. Communications from the research desk does not constitute any client specific recommendations to buy or sell or solicit to buy and or sell at particular prices or times. Opinions expressed in the Research Reports, if any, are individual views and are subject to change without notice. The Client has the absolute discretion to act on the said Research Reports. IDCL will not be responsible for any acts of omission or commission made by the recipients based on the use of the contents of the reports. 9. Neither IDCL nor any other party disseminating any data/ message/ information shall be liable for any loss, or damage or non- performance arising from or occasioned by inaccuracy, error, omission in or delay in the transmission or delivery, interruption in any such data, information or message if the performance is prevented, hindered or delayed by a Force Majure event and in such case its obligations shall be suspended for so long as the Force Majure event continues (provided that this shall not prevent the acural of interest on a principal amount which would have been payable but for this provision. "Force Majure Event" means any event due to any cause beyond the reasonable control of IDCL, including, without limitation, unavailability of any communication system, equipment or software malfunction, accident, power failure, breakdown or interruption or delay or any technical flaw in the Website or computer systems or communication lines or equipment, sabotage, fire, flood, explosion, acts of God, civil commotion, strikes or industrial action of any kind, riots, insurrection, war or acts of government. 10. The Client accepts full responsibility for the monitoring and safeguarding client s accounts. The Client shall immediately inform IDCL by or in writing: a. If the Client becomes aware of any loss, theft or unauthorized use of the passwords, digital signatures, PIN, or account number as the case may be ; or b. Any failure by the Client to receive a message from IDCL indicating that an order or an application was received and executed ;or c. Any failure by the Client to receive an accurate confirmation of an execution; or d. Any receipt by the Client of confirmation of an order and/or execution which the Client has not placed; or e. Any inaccurate information in the account balances, Investment Products positions, or transaction history

33 11. If the Client fails to notify IDCL immediately upon the Client's knowledge when any of the above conditions occur, neither IDCL nor any of its officers, directors, employees, agents, affiliates or subsidiaries can or will have any responsibility or liability to the client or to any other person whose claim may arise through the client for any claims including but not limited to claims arising with respect to the handling, mishandling or loss of any order. Under no circumstances, including negligence, shall IDCL or any one involved in creating, producing, delivering or managing IDCL s services be liable for any direct, indirect, incidential, special or consequential damage that result from the use of or inability to use the service, or out of any breach of any warranty. 12. The Client understands that IDCL may at any time at its sole discretion and without prior notice to the Client, prohibit or restrict Client's access to the use of its Portal, website or related Products and/ or Services and Client's ability to deal in. 13. The Client is aware, understands, agrees and authorises that IDCL may, at its discretion record the conversations between the Client/its representative and IDCL, either personally or over the telephone, or other electronic media. Such recordings may be relied upon by IDCL and the Client as and when required to resolve dispute arising as a result of any transactions/availing/investing in the Products and/or Services, as the case may be. 14. The Client acknowledges that he is fully aware of the risks involved in online trading activities, including the risk involved due to unauthorised access or any technical difficulties. The Client specifically agrees to hold IDCL harmless from any and all claims, and agrees that IDCL shall not be liable for any loss, actual or perceived, caused directly or indirectly by government restriction, regulatory restrictions, 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 IDCL that might prevent the Client from any transaction in Products or availing the Services or might prevent IDCL from executing any transaction on behalf of the Client or providing any Service to the Client. The Client further agrees that IDCL will not compensate the Client in any manner, including for "lost opportunity" viz. notional profits. Furthermore, in a technical environment should an error occur with respect to the tracking of any account holding or order entry, the true, actual and correct transaction or position will be restored, it is Client's responsibility to ensure account correctness and accuracy and to contact IDCL immediately in respect of any discrepancies. 15. IDCL shall provide its services on a best effort basis. However IDCL shall not be liable for any software and or hardware failure or for any resultant loss, damage including without limitation of loss of profit or other costs arising thereof. 16. IDCL provides both online and offline channel for trading at Client's convenience. The Client shall have the option to select the channel for trading. In the event of Client's inability to trade online, Client may place orders offline and IDCL may act on it. The client understand the risk associated with verbal orders and accept the same, and agree that the client shall not be entitled to disown orders under the plea that same were not under his instructions. 17. The Client shall not hold IDCL responsible for rejection of transactions, delay in processing, losses, damages, non-receipt of Account Statements, etc. that arise due to any inaccurate personal details or changes in personal details not communicated alone supporting documents. 18. The Client hereby agrees to indemnify IDCL against any loss (actual or notional), costs, expenses etc., which may be suffered by IDCL against any claim, demand, action, proceeding that may be initiated against IDCL, in connection with noncompliance of any applicable rules and regulations or arising out of or in connection with /due to a breach of any of the Client obligations under the Agreement, Terms and Conditions, etc. 19. The Client acknowledges and agrees that IDCL accepts no liability whatsoever, direct or indirect for non- compliance with the law of any country other than that of India. The mere fact that the Website can be accessed by a person in a country other than India would not mean that the laws of the said country would govern the Products and/or Services offered under the agreements. 20. All transactions in Products, contracts for availing Services are subject to the rules, byelaws and regulations of the relevant regulatory authorities governing the said Products and/or Services as may be applicable from time to time and shall be deemed to be and shall take effect as wholly made, entered into and to be performed in the city of Kochi, unless the relevant regulations prescribe otherwise and the parties to such transactions in Products and/or contract for availing such Service shall be deemed to have submitted to the jurisdiction of the courts in Kochi, unless the relevant regulations governing such Product or Service prescribe otherwise. 21. The Client opting for Offline facilities will be provided access to Online systems for the purpose of 'Viewing Only'. Such Offline customers may however consider to opt for Online fund transfer-in and fund transfer-out functions. 22. The Client shall not act as a Authorised Person / Remisier without prior written permission of IDCL and without obtaining certificate of registration from the Commodity Exchange(s) and Forward Markets Commission(FMC). 23. The Client acknowledges and agrees that the terms and conditions specified herein are liable to be varied by IDCL from time to time and such variations are exhibited on its Portal or otherwise communicated by way of a Notification by IDCL, and they shall be deemed to have been agreed by the Client and deemed to have incorporated in this Agreement, if the Client after such variation avails or invest in the Products and/or Services, as the case may be. The Client acknowledges and agrees that if the Client is transacting or availing the Products and/or Services, as the case may be, on offline, then the Notification from time to time will be binding on the Client, and if the Client chooses to transact or avails the Products or Services, as the case may be, thereafter, as if the said terms and conditions were made as a part of this Agreement. 24. The Client acknowledges and agrees that under no circumstances shall IDCL be liable to the Client for indirect, incidental, consequential, special or exemplary damage arising from or in connection with the Products and/or Services provided to the Client, even if IDCL has advised of the possibility of such damage, such as, but not limited to, loss of revenue or anticipated profits or loss in business. The Client further acknowledges and agrees that in no event the liability of the IDCL, in respect of any Product and/or Service offered by IDCL, for any loss and damages caused to the Client for any reason shall exceed the amounts paid by the Client as a fee to IDCL for availing the relevant Services or transacting in the relevant Products, as the case may be. 25. The invalidity or unenforceability of any provisions of the Agreements, Terms and Conditions, Power of Attorney and any other documents in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Agreement, Terms and Conditions, Power of Attorney and any other documents in such jurisdiction or the validity, legality or enforceability of this Agreement, Terms and Conditions, Power of Attorney and any other documents including any such provision, in any other jurisdiction, it being intended that all rights and obligations of the Parties hereunder shall be enforceable to the fullest extent permitted by law

34 26. The Client may not assign any right and obligations hereunder without first obtaining the prior written consent by an authorised officer of IDCL. The Client agrees that IDCL, may, however assign their rights and obligations to any third person without the prior consent of the Client. 27. The facilities, Products and/or Services under the Investment available by the Client vide these Agreements, Terms & Conditions may be terminated by the Client by giving at least thirty days written notice in advance and shall obtain written acknowledgment of the receipt of the notice from IDCL. Such termination shall not have any effect on the transactions executed before the date of such notice of termination and the parties shall enjoy the same rights and shall have the same obligations in respect of such transaction. The termination shall be without prejudice to the execution of all outstanding Transactions entered into between the Parties. IDCL shall be entitled to receive all fees and other monies becoming due up to the date of such termination and deduct any sum payable to it from any amounts IDCL may have to remit to the Client on termination. 28. The Client shall at all times continue to be responsible for any transaction ordered on his accounts prior to the discontinuation of trading and/or investment facilities. If the service is withdrawn for any reason including breach of this Agreement, and or terms and conditions by the Client, IDCL shall not be liable to return annual charges, if any, recovered from the Client for the period in question. The closure of the accounts of the Client shall automatically terminate trading and/or investment facilities offered by IDCL including online services. IDCL may suspend or terminate this Agreement without prior notice if the Client has breached any of the terms and conditions or the provision of this Agreement or it learns of the death, bankruptcy or lack of legal capacity of the Client. 29. IDCL shall be privy to information relating to the Client, including information that is of a confidential nature in the process of the cilent availing the Products and/or Services. IDCL believes and is committed to protecting the privacy of its clients and has taken steps to protect the information furnished to it. IDCL has taken all necessary steps to protect the same and that IDCL shall not be held liable for disclosure of the confidential information, unless gross negligence is established on the part of IDCL. The client acknowledges and agrees that IDCL may share the personal information collected from the client with third parties, in furtherance to any related agreements and arrangements that IDCL has entered into with such third parties and the client hereby grants express permission for the same. 30. The Client also undertakes that it shall not disclose, in any manner whatsoever, any information relating to IDCL of a confidential nature as obtained in the course of availing the Products and/or Services, to any other person. Failure to comply with this obligation shall be deemed a serious breach and shall entitle IDCL to terminate these Agreement, Power of Attorney etc. without prejudice to any damages to which it may be entitled. 31. Further the Client authorises IDCL to exchange, share, part with all information related to the details and transaction history of the client to its Affiliates, banks/ financial institutions / credit bureaus / agencies as may be required by law or customary practice and shall not hold IDCL liable for use or disclosure of this information. 32. IDCL makes no warranty that (i) the Products and/or Services will meet all the requirements of the Client, (ii) the Products and/or services will be available uninterrupted, timely, secure, or error-free, (iii) any errors in the Website will be corrected. A. Trading Terms & Conditions The following are the specific terms and conditions ("Terms and Conditions") governing trading in Commodity Futures by the Client through IDCL Acceptance of all the Terms and Conditions contained herein and the other relevant terms and conditions relating to trading in commodity Futures are a prerequisite for trading through IDCL. 1. The transactions at IDCL shall be executed in accordance with the applicable laws, byelaws, rules and regulations governing the Commodity Exchange transactions. 2. The terms and conditions for Day Trading may vary, at IDCL's absolute discretion, based on the risk profile of the Client and the market conditions. IDCL may also vary the terms and conditions during the market hours based on market volatility and its risk perception without any further communication or intimation to the Client. This Facility shall be offered to the Clients at the sole discretion of IDCL. IDCL reserves the right to refuse to offer this Facility to any Client or group of Clients and may withdraw the Facility at any time without prior notice or assigning any reason thereof. 3. IDCL will at its discretion decide the contracts that are available to the Client for transacting under Commodity Futures, and may vary the availability of the same from time to time without prior intimation to the Client. 4. Exchange(s) has placed limits on the open positions in the commodity futures contracts and the Exchange levies fines and penalties for violating thesaid norms. The Client shall ensure that such limits are not crossed intentionally or unintentionally and Clients shall be liable for the consequent actions by the Exchange and IDCL upon crossing such limits intentionally or unintentionally. The client fully acknowledges that the facility for Day trading and or carry forward / roll-over in such contracts are offered only for the client conveniences and that the Client will assume full accountability for the same. 5. The Client shall not, acting alone or in concert with others directly, or indirectly, hold and control excess number of permitted commodity futures contracts as fixed from time to time by the Exchange(s). 6. The Client shall not exercise a long or short position where, acting alone or in concert with others, directly or indirectly the clients will have exercised in excess of the number of permitted futures contracts as may be fixed from time to time by the Exchange. Payment of margin and collateral 1. The Client shall be liable to pay applicable initial margins, exposure margin, volatility margin, withholding margins, additional margin, special margins or such other margins as are considered necessary by IDCL or the Exchange or as may be directed by FMC from time to time as applicable to the segment(s) in which the client trades. The margin percentage applicable to each Futures contract may be revised upwards / changed at the discretion of IDCL without any further intimation. This margin percentage may be greater than the margin prescribed by the Commodity Exchange(s). IDCL may change the margin percentage based on the risk perception and market volatility without prior intimation to the Client. The client shall be obliged to pay such margins in the form of clear funds with in the Exchange stipulated pay in time to meet the margin requirements at all point of time. 2. The Client shall be liable to pay special margins on the same day which is imposed by the exchange, due to price fluctuations above the lower and upper limit of the daily price circuit. Such special margin amount is immediately blocked out of available margin deposits of the clients having outstanding position in that contract and in case the available margin of the client is not sufficient to cover such special margin required, clients shall provide special margins with immediate effect on the same day, for which the client agrees. In case the client defaults in making the payment of such special margins imposed by exchange on the same day on which it becomes payable by not making actual credit of clear funds in to the client account, IDCL shall at its liberty be entitled to liquidate /close out all or any of client s positions without prejudice to IDCL's right to refer the matter to arbitration

35 3. If the complete recovery is not possible then, IDCL shall be entitled to liquidate / close out all or any of the CLIENT's other outstanding positions, without prejudice to IDCL's right to recover the damage from the CLIENT. Any and all losses and financial charges on account of such liquidation / closing out shall be charged to and borne by the CLIENT. 4. The Client shall be entirely responsible for maintaining adequate margins and that IDCL shall not be liable to keep the Client informed of the margin requirements. 5. It is the Client's responsibility to monitor its positions and ensure that adequate margins are available with IDCL at all point of time. IDLC may take such action as it may deem fit to cover the risks arising due to such margin shortfall including but not limited to closing of such positions. All costs, charges, brokerages, levies that may arise due to such transactions shall be borne by the Client. 6. Before executing any order Client should have sufficient exposure limits / ledger balance equal to or greater than the required margin money. Client is responsible to ensure that the available margin with IDCL is always above the minimum margin levels specified for the respective positions. Since IDCL also provides trading facility through internet it may not be possible for it to inform the Client about short fall in margin, if any, on a one to one basis. In case of shortfall in margin IDCL will check for availability of additional limits in clients account to see whether adequate additional limits are available to restore the margin level to the initial margin levels, if not then the open positions may be squared of by IDCL, at its discretion. In case of change in margin percentage by the Commodity Exchange(s), IDCL will have to change the margin percentage immediately and any shortfall in margin on Client's open position due to the same will be dealt in the same manner as specified above. 7. Payment of margins by the client does not necessarily imply complete satisfaction of all dues. In spite of consistently having paid margins, the client may, on the closing of its trade, be obliged to pay (or entitled to receive) such further sum as the contract may dictate/require. 8. Cross margin benefits are not available between Spot and Commodity Futures Exchange(s). IDCL however may consider providing these benefits as and when they are permitted by the relevant Exchange(s), subject to therules and Regulations governing the same. 9. Day/ Margin positions can be carried forward / converted to delivery before the defined cut-off time subject to availability of sufficient clear funds in Client's trading account. 10. IDCL, may at its discretion shall make MTM applicable to permit carry forwarding of Open positions. 11. Mark-to-Market (MTM) process shall be triggered at periodic intervals during the day and MTM losses arising, if any, shall be fully recovered from the available buying power and MTM profits, if any, shall not be added to the Clients buying power. 12. IDCL will accept the margins in the form of securities, commodities or in any other mode as it may deem fit. 13. IDCL shall block additional Margin required, out of the balance available in the Client's account and may cancel the pending orders and place square-off orders to close all or some of the Day positions if sufficient balance is not available to absorb the additional margins. 14. The client understand that IDCL require written instructions for receiving / modifying / cancelling orders. However, since it is not always practical to give written instructions for order, the client authorize IDCL to accept the client/client's authorised representative, verbal instructions/ orders in person or over phone and execute the same. The client understand the risk associated with verbal orders and accept the same, and agree that the client shall not be entitled to disown orders under the plea that same were not under his instructions. 15. Though orders are usually routed through the marketplace within seconds, certain orders, at IDCL's sole discretion, may be subjected to manual review and entry, which may cause delays in processing their orders. Client also understand that with respect to market order, Client will receive the price at which their order was actually executed in the marketplace, which may be different from the price at which the security is traded when their order is entered into IDCL's system..16. Orders to be placed with an Exchange(s) may be placed by the Client during market hours with IDCL for execution on the same trading day or as good till cancellation(gtc)/ good till day(gtd) orders. GTC orders shall be valid till it gets executed or cancelled and GTD orders shall be valid till the specified date or it gets executed or cancelled. In the event the GTC / GTD orders gets executed, Client will be liable for any resulting losses and all associated costs incurred by IDCL. 17. A cancellation / modification instruction of the Client shall be deemed to have been received by IDCL, if only IDCL confirms the receipt the same. An instruction or application shall be deemed to have been modified or cancelled only if IDCL sends a confirmation to the client regarding the same. 18. To process orders for purchase of commodities, it is necessary that the Client's account shall have sufficient balance or Client shall have the exposure limits before the execution of order. Any order inadvertently accepted and executed without sufficient balance/exposure limits will be subject to cancellation or l iquidation at IDCL's discretion. However, Client shall continue to be responsible for all his orders including a n y o r d e r s, which exceed available limits in their account. If limits are not available in the account and an order is processed, Client should credit the required fund in his trading account via wire, personal cheque, cashier's cheque, account transfer or by any other mode, acceptable to IDCL, promptly to ensure that such payment will be received and processed on or prior to settlement date intimated date, whichever is earlier. If payment is not received by IDCL on intimated date and time, whichever is earlier, the clients position may be squared off, without prior notification. In the event their account is liquidated, Client will be liable for any resulting losess and all associated costs incurred by IDCL. 19. To process sell orders, it is advisable that the Client's demat accounts shall have sufficient free commodities balance with the DP prior to the acceptance of a sell order. No sale proceeds will be paid to the Client until commodities have been delivered to the commodity Exchange / clearing house & pay out is received from the Commodity Exchange/Clearing House. If the commodities are not received on or before settlement date or commodities received are not in deliverable state or due to any other reason whatsoever, Client is not able to deliver commodities, Client will be responsible for any resulting losses and all associated costs including penalty levied by the Commodity Exchange. 20. IDCL or the Exchange(s) shall not be liable for any delay in execution of orders or the non-execution of any order caused due to any suspension, interruption, non-availability or malfunctioning of the online trading service, trading systems, or the Exchange system or for any reasons whatsoever. 21. IDCL discloses herewith that it currently does not undertake proprietary trading. 22. IDCL shall be entitled to adjust the surplus amount available on any segment against the dues to IDCL on any other segments across all segments of the Exchange(s). 23. Client may be permitted to exercise the right to close/ freeze any of the accounts with IDCL only if there is no obligation pending to be met by the Client in favour of IDCL. 24. If the balance is not sufficient to cover the MTM losses and or the additional margin call then the open positions shall be squared-off at Client risk without attempting to call the Client, or carry forward or giving some grace time. If the Client has taken positions in many commodities then the 19 35

36 commodities to be squared-off on Clients behalf shall preferably and not necessarily be chosen on the basis of the descending order of the loss incurred, until the balance turns positive. 25. The Client shall close / square of all the open positions taken under day category or convert it to carry forward by making available the required additional margin in the client's account. If the Client does not close / square off the open position or convert it to carry forward, IDCL shall have the discretion to square off Client's open position. 26. The losses, if any, arising on square off trades shall be borne by the Client. 27. Open Margin positions that are not squared off for reasons beyond the control of IDCL such as technical issues, price band, etc. shall be squared off on the subsequent day or at the next available opportunity. If the position cannot be successfully squared off due to reason beyond the control of IDCL then the positions shall be carry forwarded to the next trading day and MTM shall be calculated on the positions. The Client shall be liable for any resulting losses, brokerage and all associated costs incurred for the purpose. 28. IDCL may, in case of insufficient limits, to safeguard its interest cancel the pending orders and or place square-off orders to close all or some of the open positions block and or invoke pledge of collateral provided by the Client and the Client shall be solely responsible for any losses arising out account of the same. 29. The Client shall settle the daily obligations including MTM arising from the transactions / positions in Commodity Futures contracts. 30. If it is considered necessary for its own protection, IDCL may require the Client to immediately provide collateral into their trading account prior to any applicable margin call in order to hold such open contracts by the Client. If the Client do not provide such additional collateral, IDCL is entitled to close all or some of such open contracts. In addition, IDCL may exercise any or all of the above rights without demand for additional collateral during extreme / high market volatility in any such commodities. Issue of any prior demand or call or prior notice for additional collateral shall not be considered as a waiver of IDCL's legal right to square off such contracts without any such demand, call or notice. 31. The Exchanges may cancel a trade suo-moto without giving any reason thereof. In the event of such cancellation, IDCL shall be entitle to cancel relative contract(s) with CLIENT, Deliveries: 1. The Client and IDCL shall be bound by exchange rules and regulations relating to delivery Open position limits, Delivery margin, delivery Funds /Commodity pay in, Demat Accounts, Sales tax, Duties.Levies, Taxes and Other related expenses. 2. During the delivery period the client shall be liable to obey all exchange rules of collection and reversal of delivery margin.if the client defaults the paying such delivery margins imposed by exchange or failed to submit necessary Sales Tax registration and Demat account details of respective depositories, IDCL shall be entitled to liquidate /close out all or any of client positions without prejudice to IDCL right to refer the matter to arbitration. 3. In case of any failure in fulfilment of delivery obligations on the part of the clients, IDCL shall be entitled to forfeit or utilize the margin deposits lying with IDCL for meeting such obligations and IDCL shall have the right to dispose such commodities for recovering ti obligations of client without their approval. 4. CLIENT shall co-ordinate with IDCL to ensure that all requirements for giving / taking delivery are fulfilled. CLIENT shall also ensure to comply with all statutory requirements laid down regarding Sale / Purchase of goods including payment of taxes, local levies and the other statutory / regulatory charges as prescribed under applicable laws from time to time. Margin Offered In Form Of Securities By The Client The Client may offer demat securities as Margin in accordance with the relevant Rules and Regulation of the Exchange(s) and on the terms and conditions specified by IDCL to meet margin requirement and for due performance of the Client's obligations, commitments, liabilities including repayment of any amounts due by the Client to IDCL, IDCL affiliates, or any third party arising out of or incidental to the Client transactions, Such securities offered as Margin by the Client are hereinafter referred to as "Margin Securities". (a) (b) (c) (d) IDCL will define the list of securities acceptable towards margins and the same may be changed from time to time. The haircut applied for securities may vary from scrip to scrip and the same may be subject to change from time to time. IDCL will define the exposure percentage to be given against the securities that may vary from client to client and may also vary from to time without prior intimation to the Client. The Client shall not do or allow anything to be done that may prejudice the interest of IDCL in respect of the Margin Securities, while the Client remains liable to IDCL, in any manner whatsoever, without the prior written permission of IDCL. (e) If in the opinion of IDCL, the Client has failed to perform and/or failed to fulfill any of its engagements, commitments, operations, obligations or liabilities as a Client of IDCL including for any sums being due by the Client to IDCL or to any other third party arising out of incidental to any transactions executed, then IDCL without giving any notice to the Client, shall be empowered /entitled to invoke pledge sell, dispose of or otherwise effect transfer of any or all 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 brokerage payable to IDCL for such sale/disposal /or other transfer shall be utilized/ disbursed by IDCL in such manner as it may deem fit. (f) (g) If the total amounts realized from such above sale/ disposal /transfer is insufficient to fulfill the Client's obligations / dues, the Client shall, forthwith and without demur, upon being requested by IDCL, furnish the balance amount along with related costs, expenses and interest at such rate as decided by IDCL from time to time. All decisions by IDCL 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 and IDCL shall not have 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. Terms & Conditions for Document Delivery IDCL may issue the Documents to the Client in electronic form or otherwise by post, courier, hand delivery, fax, or such other means as may be notified by IDCL to the Client. It is Client's responsibility to review the Documents immediately upon their receipt. All informations contained therein shall be binding upon the Client, if the Client does not object in writing to any of the contents within twenty-four hours of such intimation /confirmation. In all cases, IDCL reserves the right to determine the validity of the Client's objection to the transaction. IDCL shall not be responsible for the non-receipt of the trade confirmation due to any change in the correspondence address of not intimated to IDCL in writing.. 2. Subject to applicable rules and regulations of the relevant Regulators, the Client, by acceptance of these terms authorize IDCL to send the contact notes, bill, ledgers, transaction statements, holding statements, reports, letters, circulars, notice etc...that is obligatory(herein after referred to as 'Documents') in electronic form through and or post it on the website(s) maintained by IDCL and or any other electronic media including but not limited to mobile, SMS, etc. and not in physical form. Every document so sent shall contain all such information as is 20 36

37 mandated by the concerned statutory and/or regulatory authority. 3. IDCL would be deemed to have fulfilled its legal obligation to deliver a document to the Client, if it is sent by the electronic mode. provide however that, in case when IDCL is not able to provide the Documents' to its Client in electronic form due to any unforeseen problems IDCL shall ensure that the "Document" reach the Client in physical form. The Client will have the option to select the electronic mode of receiving the Documents even if he does transactions through the Offline channel. 4. The document shall be deemed to have been duly delivered and its content accepted by the Client if there is no intimation received by IDCL within forty eight hours from the date of delivery / display of the document. 5. In case the Client does not receive the Documents and or the electronic contract note (ECN) on time, it shall be the responsibility of the Client to inform IDCL about such non-receipt and IDCL shall send the concerned contract note in physical mode. If no such informations is received from the Client, it shall be presumed that the Documents / ECN has been properly delivered to the Client. 6. If the ECN / Document sent electronically to the Client bounces three consecutive times in a given calendar month then the client shall be converted Into a Non- ECN Client and physical contract notes shall be sent thereafter and all rights and benefits attached to ECN clients shall be revised to Non - ECN Client. The Client shall be solely responsible for unauthorized access of his and subsequent tampering of the Documents that are sent by IDCL to the Clients id from time to time. 7. The Client shall immediately inform IDCL about change in address, if any by written intimation. The Client understands and accepts that the Client is entirely responsible and will not hold IDCL responsible for not receiving communication due to incorrect id spam filters applied, overloaded mail box or their bouncing back due to incorrect id etc. 8. IDCL and the Client shall have the right to discontinue this arrangement after giving a notice of atleast 10 days to the other party Client Authentication Terms & Conditions (Password & Personal Identification) 1. The Client shall be entirely and solely responsible for safe-keep of the Client-Identification and passwords provided by IDCL to the client for their sole and exclusive use to avail the facilities of viewing and or placing orders / requests in the products and/ or services transacting in the Commodity Exchanges as offered by IDCL. The Client shall hold IDCL harmless of the losses and costs, legal or otherwise due to misuse of the Client password and other personal secure information, orders placed by any person other than in case the Client compromises the confidentiality/secrecy of the password. 2. The Client shall be bound to indemnify and hold IDCL, harmless against any loss that may be suffered by them, its clients or a third party or any claim or action that may be initiated by a third party which is in any way the result of improper use of the password digital signatures or user ID by the Client. 3. If the Client forgets or loses the Client ID or Client Password and/or other identification tools provided/ specified to the Client by IDCL, The client can request for change by sending a duly authorised written request to IDCL in the mode and form prescribed by IDCL. All Transactions carried out by use of the Client ID and Client Passwords and/or other identification tools provided/specified to the client by IDCL shall be deemed to be done or authorised by the Client. Funds transfer -in/transfer-out terms & Conditions Funds Transfer-in IDCL offers Clients multiple modes of transferring funds to the trading account including but not limited to online / real-time bank funds transfer, cheque, payorder, demand draft, etc. and such other channels as may be introduced from time to time subject to such terms and conditions as it may deem fit. All the channels for fund transfer may not be available to all Clients and may vary for each Client category and the mode of operations selected by the Client. IDCL may at its sole discretion consider accepting the payment in cash for such fees, charges, and services it may decide from time to time provided it complies with the relevant rules and regulations governing the said products and/or services In case of delayed payment/ delay in realization of the dues, then interest, at the rates as decided by IDCL from time to time, shall been paid by the Client for the same till the date of payment by the Client. The Client agrees and authorise IDCL to directly debit the same to the trading account of the Client. Funds Transfer-Out: The Client understands and agrees that in case of request for payout is made by the Client, IDCL shall pay to the default Bank account linked to the Clients Investment account. The Client understands and agrees that IDCL may endeavor to make the payout in such other bank account linked to the Client Investments as the Client may inform IDCL. IDCL may consider placing restrictions on the minimum and maximum withdrawals of Client. IDCL may also consider minimum balance to be maintained by Clients (all or select). The Client shall be bound by the Terms and Conditions for Funds Transfer-In / Transfer-Out as state below and as may be amended from time to time: 1. The Client confirms that the funds invested by him legally belong to them and that he shall not transfer funds from any bank account other than of his own bank account registered with IDCL. 2. Client should be one of the holders in the bank account or the first holder as may be required by IDCL 3. If the Client makes payment from a bank account not registered with IDCL, IDCL shall at its discretion transfer the said amount to suspense account or such other account as it may deem fit until the Client requests for registering the said bank account along with the required proofs or requests for refund of the same. IDCL will make payment to the same account from which it received the fund in case of request for transfer back. 4. If any payment is made from a third party bank account in which the Client is not an account holder then IDCL on identifying the same shall reduce the said amount from the Client's trading account and transfer the same to suspense account or such other account it maintains for the purpose. The client understands that his trading account can have debit as a result and that IDCL will take such further action as it may deem fit. 5. Funds transfer- in should be made either through cheque, demand draft online real- time fund transfer facility and or such other mode/ channel as may be accepted or introduced from time to time. 6. client will submit the pay-in slip or any other proof as required( reflecting that the instrument has been drawn from the bank account registered with IDCL) in case demand draft is used as the fund transfer-in mode. 7. IDCL shall levy such fine and or penalty for any payment instrument that is not honoured by the Clients' Bank

38 8. Client shall ensure not to make payment vide channels that are not acceptable to IDCL including but not limited to directly crediting IDCL s bank account, bank internet site, RTGS, NEFT, ECS, etc. until IDCL has confirmed acceptance of the same for a particular instance to a particular Client. 9. The Client understands that in case of online real-time fund transfer, the funds may have been blocked in the bank but the same may not reflect in IDCL account due to technical issues. The Client shall intimate the same to IDCL immediately on noticing the same. IDCL shall endeavor to identify and resolve the issue along with the support of the said bank. 10. The Client understands that if the payment is made vide online real-time fund transfer from third party bank account then IDCL may not be in a position to track the same real-time resulting in providing the Client with additional limits. IDCL shall however reverse the same on becoming aware of the same. The Client agrees that the Client is entirely responsible for the consequences of such action taken by IDCL. 11. IDCL shall make payment to the Client as per Client instructions only if clear credit balance is available in the Client account. 12. IDCL shall process the request for payment to the Client only at the end of each day or as may be decided by IDCL ffrom time to time. 13. IDCL will make the payment to the Client by any of the available modes of payment such as: direct credit in the client bank account, cheque, ECS, NEFT, RTGS and or such other modes as it may consider from time to time. 14. The Client shall not hold IDCL responsible for processing time taken for payment. The Client also shall not hold IDCL responsible for delay in making the payment to the Client if the same is due to technical issues, or delay beyond the control of IDCL, or at the Banks end. 15. The limits shall be reduced to the extent of the payment requested by the Client. 16. The payment request shall be cancelled if sufficient clear balance is not available in the Clients investment account or IDCL may consider to process the request to the extent of available funds. 17. The payment requests shall be processed only on working days. 18. The Client request for payment shall not be processed if there are any pending orders / instructions for any other financial security or any of the product and/ or service availed by the Client. 19. IDCL may, at is discretion, consider giving payout of funds to the Client, before Exchange payout, on Client's request, for the commodities sold by the Client in an Exchange. IDCL may levy such additional brokerage and or interest that it may consider necessary for offering such facility and that IDCL may offer the same subject to the Client having paid full delivery of the required commodities due for pay-in and such other terms as it may deem fit. IDCL shall have the entire discretion to decide whether to offer the said facility to select or all clients. Terms and Conditions Governing online plat form Change facility IDCL may offer different types of online trading plat form to choose from according to client requirements subject to such terms and conditions as it may deem fit from time to time IDCL may at its sole discretion prescribe the eligibility criteria for each plat form and the charges for each such platform and may change the same from time to time with or without prior intimation to the client. Client s request for the change in the platform shall be subject to and be deemed acceptance of the prevailing terms and conditions. Terms and Conditions Governing SMS Alert Facility Definitions: Open Request Shall mean Pull Alerts which have not been executed by IDCL or which have not been cancelled by the client. Pull Alert Facility shall mean the subscription based SMS facility provided by IDCL through which the client may receive pull alerts on the clients mobile phone. Pull Alert shall mean the receipt of information by the client pursuant to the last trade price or the last trade price reaching the 52 week high or law of price of the particular commodity on the commodity exchange (s) and or any other condition. That ma be provided by IDCL as requested by the client. Push Alert shall mean the receipt of information by the client other than the information sent through the Pull Alert Facility. IDCL may sent market related update and or information, research updates, and such other data which IDCL sent to its clients, who have specifically subscribed to the service. IDCL may also sent essential information on the product features, changes therein, or any other information as and when it deems fit. Website shall mean or such other sub-domains or such other website as may be Maintained by IDCL from time to time. 1. IDCL may provide the client with such number of pull alerts as IDCL may in its sole discretion determine. In the event of IDCL deciding to charge the client per pull alert sent, it shall intimate the client of the same by or by displaying the same on the website and or mobile / SMS along with the applicable charges.idcl shall debit he client, Investment account on daily or monthly basis or as it may decide from to time, such sums as may be due to it here under for providing the SMS Facility. 2. IDCL reserves the right to modify the said charges from time to time, or discontinue this service at any time without assigning any reason for the same. Provided that IDCL shall intimate the Client, the modified charges and/or any change in the same either through an or Push Alerts or by putting up the said charges and/or changes on the Website or orally or any other mechanism as it may deem fit. It shall be the Client's responsibility to maintain adequate balance in his account so as to enable IDCL to debit his account for such above mentioned charges. If IDCL is unable to recover the charges from the Client, due to insufficient balance in the client s account, then IDCL may consider to debar the Client from availing the facility or take such other actions as IDCL may deem fit. 3. Pull Alerts facility is currently not available. However, when introduced, it shall be provided by IDCL through a facility provider, as separate service, to the Clients who have voluntarily subscribed to this facility. 4. The Pull Alerts facility shall be open for subscription and shall be provided only to those Clients who have given their valid and functional mobile numbers to IDCL. 5. IDCL may at its discretion offer such Push Alerts as it may deem necessary to the mobile number of the Client as intimated by the client it shall be the Client's responsibility to ensure that the mobile number given to IDCL is correct and operable/in- working condition at all time. 6. IDCL shall also push such research related messages and or market updates and information only to those who have specially subscribed for the 22 38

39 SMS services. IDCL does not assure the number of such messages that may be provided on each working day. 7. IDCL may define the parameter and the rules within which the client should place the pull alerts requests. IDCL may at its sole discretion change such rules from to time with or without any intimation to the Clients. 8. In Case of a change in the mobile number, it shall at all times be the obligation of the Client to ensure that the said change is intimated to IDCL / updated at the website in time so as to ensure that IDCL may carry out the corresponding change in its data base at the end of day on which such intimation is received by IDCL, so as to ensure that all the SMS messages including Push and Pull alerts are sent to the new mobile number. Alerts shall be sent to the new mobile number only after the same has been incorporated in IDCL's database, provided that IDCL shall at no time be liable, in case an alert is sent to a number, which has changed, which may have caused due to a delay or non intimation by the Client or non-receipt of the intimation by IDCL of the said change. 9. It shall be the Client's responsibility to ensure that accurate data for the purpose of receiving the requested Pull Alerts is intimated to IDCL and shall at times check up the details of the requests before submitting them to IDCL. IDCL and its facility provider hereby disclaim all or any liability that may arise as a consequence of the incomplete / incorrect data /request being provided by the Client for the Pull Alert. 10. IDCL hereby declares that IDCL or the facility provider shall not be responsible for any non delivery or delay in delivery of Pull Alerts and or market updates and information to the Client including but not limited to reasons such as the mobile phone being lost, stolen, or the Client's phone not being with him, or a technical failure with the Client's mobile phone. The Client shall not be entitled to claim a refund of any amount charged by IDCL to him or any additional amounts whether as compensation, damages, opportunity loss, etc. 11. The Clients may withdraw from the services at any point of time through appropriate written intimation to IDCL's assigned officials and or any other mode of communication that may be set up by IDCL from to time. IDCL may also provide a link on the website to modify or cancel the facility, where the Client changes the options / settings of the SMS facility. Provided that the Client will be permitted to modify the request only for the last traded price, or the 52 week high/low price as the case may be, for that particular commodity. The Client will not be permitted to modify the stock for which the Pull Alert was sought, though he may cancel the same and request for a new alert. Provided further that a Client will be permitted to modify or cancel a request only if the same has not been executed. The Client may check the status of the requested Pull Alert/s on the Website from time to time. 12. In case the Client makes a request for a 52 week high/low Pull Alert for a particular commodity, an alert would be set for a price which is the 52 week high/low at the time of setting the alert request, and will remain unchanged irrespective of any subsequent variation in the 52 week high/low price of the particular commodity. In case the Client wishes to change the same, the Client will have to cancel the existing open request for that particular commodity and make a fresh request for the new 52-week high/low Pull Alert for it. 13. IDCL may, at its discretion, decide the maximum number of alerts that Client shall be eligible to set up. Provided that IDCL shall cause to intimate the Client of the said change through or Push Alerts or by putting up the said changes on the Website or any other mechanism. If the request placed in by the Client exceeds the maximum number of permissible open requests, then IDCL shall not entertain the additional request unless an existing open request is cancelled by the Client or has been executed. 14. Neither IDCL nor any other party disseminating any data, message and/or information pertaining to the Pull Alerts or the Push Alerts or market updates and information shall be liable for any inaccuracy, error, omission or delay in the transmission or delivery of: a. any such data, information or message; or b. any loss or damage arising from or occasioned by any such inaccuracy, error, delay or omission, nonperformance, or c. interruption in any such data, information or message, due either to any act or omission by IDCL or any disseminating party or due to power failure, equipment or software malfunction or any other cause beyond the reasonable control of IDCL, or any disseminating party. 15. Neither IDCL nor any disseminating party shall be liable for any "lost opportunity" i.e. notional profit due to the non receipt of a certain Pull Alert or market update / information that may have been requested by him. 16. The customer hereby agrees and confirms that the SMS Alerts provided to the customer by way of this subscription shall be treated as Transactional SMS in compliance of the Telecom Commercial Communications Customer Preference Regulations, 2010 notified and amended by Telecom Regulatory Authority of India (TRAI) or any enactment as may be applicable from time to time. 17. IDCL reserves the right to amend or modify or withdraw the SMS Alerts facility at any time, or as and when required under any change in govt, policy, regulatory directives or any other similar changes in applicable laws that may be introduced from time to time. Client s Signature Inditrade Derivatives and Commodities Limited Authorised Signatory Signature Signature 23 Client Name Witness Details: Name & Address: Name of Authorized Signatory: Witness Detials: Name & Address: Signature of the witness Signature of the witness 39

40 RUNNING ACCOUNT AUTHORIZATION In order to facilitate my smooth trading operations, I/We hereby authorise Inditrade Derivatives and Commodities Limited Ltd/(IDCL) to maintain running account in my/our name and favour, instead of settlement to settlement clearance of fund/commodities due to me/us. The payout of funds / commodity may be retained by IDCL and no interest shall be payable by IDCL on such retention. I/We further agree that IDCL shall not be liable for any claim for loss or profit or for any consequence incidental, special or exemplary damages, caused by retention of such commodities / funds under this authorisation or otherwise. I/We hereby further authorise IDCL to hold and retain the said funds/commodities until a written request for the same is made by me/us, subject to the condition that sufficient margin in respect of my/our continued trading across the commodity exchange(s) and across the segment of the commodity exchange(s) are available with IDCL. I/We am/are aware that the authorisation may be revoked by me/us at any time at my/our own discretion without any advance notice. IDCL may release funds/commodities to me/us on my/our request on revocation of authority if sufficient margins in respect of my/our trading across the the commodity exchange(s) and across the segment of the commodity exchange(s) are available with IDCL.. I/We are further aware that IDCL shall settle my/our accounts every quarter subject to the condition that, for open position on such quarterly settlement date, IDCL may retain the requisite funds to meet the maximum likely margin obligations for the next 3 trading days. I/We am/are aware that any dispute arising from the statement of account or payment of funds/commodities shall be brought to the notice of the Member in writing preferably within 7 (seven) working days from the date of receipt of funds/commodities or statement, as the case may be and in the case of dispute, to refer the matter in writing to the Investors Grievance Cell of the relevant Commodity exchange(s) without delay Name of the Client : Trade Code : Branch Name : Place : Date : 24 Signature of the client 40

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45 Annexure - 1 Part 1 NEW CHANGE REQUEST(Please Tick the Applicable) Please tick the box on left margin of Appropriate row where CHANGE / CORRECTION is Required and provide the details in the corresponding Row FPI - Category I FPI - Category II FPI - Category III Emp.ID/ 45