Terms and conditions of the Margin Trading product

The following Terms and conditions are applicable for all transaction instructions, trades & open positions of the clients under the Margin Trading product through Reliance Securities Limited (Reliance Securities):

Margin Trading is essentially an intra day trading product. Positions taken during the day have to be compulsorily squared off, unless the same are converted into delivery trades.

Under Margin Trading, the client is permitted to buy stocks as well as sell stocks i.e. he can go long as well as go short, intra day.

Margin in the form of available equity limits/funds as a percentage of the order value (e.g.20%) is blocked in the Clients’ limits before the order is released to the Exchange. The margin percentage for different scrips will be made available on the website. The margin will be applicable for both buy as well as sell transactions. For Margin sell orders the system will not check for availability of demat balance in the client’s demat account.

For market orders, initially margin shall be blocked considering the last traded price of the contract. On execution of the order, the blocked margin amount shall be suitably adjusted as per the actual execution price of the order.

Only a few selected highly traded scrips on BSE and/or NSE will be enabled for Margin Trading. The basket of securities on which margin trading is enabled is displayed on the trading website (www.reliancemoney.com).

Since Margin trading is essentially for intra day trading, all outstanding positions of clients are auto squared off at a predetermined time (around 3.10 pm on a normal trading day). The client has the choice to square up the open margin positions before the above predetermined time.

The client shall have the option to convert his Margin Trade into Delivery trade by selecting the option of Conversion in the “Today’s position” page before the position goes into the Auto Square off mode. In order to Convert a buy Margin position into a buy Delivery position the client needs to have the required free equity limits in his account. E.g. if he has paid a margin of 20% at the time of taking the buy Margin position then he will further need to have atleast 80% of the buy position value free in his equity limits, net of mark to the market (MTM) losses at that point in time, failing which the Convert to Delivery request will fail. Similarly in order to Convert a sell Margin position into a sell Delivery position the client needs to have the required number of free balance of equity shares in his demat account linked to his reliancemoney.com account, failing which the Convert to Delivery request will fail.

Once the auto square off period starts, the client will not be able to place new orders.

For each scrip, a threshold limit for maximum MTM loss is predefined (12%), which is permissible on outstanding Margin positions of Clients. In case the MTM loss crosses the threshold limit then additional margin is collected online from the available equity limits and in the absence of required free equity limits in the Client's account either partly or fully, the open position may get squared off by the Risk Management team even before 3.10 pm.

If it is considered necessary for its own protection, Reliance Securities may require the client to immediately deposit cash margin or collateral into his account. If the client fails to provide the required additional cash margin or collateral, then the client hereby agree and acknowledge that Reliance Securities shall have the right to cancel any or all pending orders and/or square off all or any positions and sell all or any shares, securities and other financial instruments in his account,. Further Reliance Securities may exercise all or any of the above rights without making a demand for additional cash margin or collateral, or notice to the client for sale or purchase. The client hereby confirms that giving any prior demand or prior notice of canceling orders or squaring off open positions shall not be considered as a waiver of Reliance Securities right to cancel orders or square off open positions without any such demand or notice.

Client shall be responsible for any losses or expenses incurred by Reliance Securities as a result of his failure to make the square off the open margin positions.

Client accept and acknowledge that Reliance Securities would have the discretion to square off the open margin position of Client, (i) if the open margin position is neither squared off nor converted into Delivery position by the client within the stipulated time, (ii) where the margin placed by the Client falls short of the margin requirement (iii) where the limits given to the client have been breached (iv) where the Mark to Market Loss on the open margin position has reached the stipulated threshold % of the margins placed with Reliance Securities for that particular position and the client has not taken the required steps to replenish the margin

Client accept and acknowledge that although the Auto square off trigger time is pre-defined, the actual square off could happen after sometime and the same could happen at a price different from the price prevalent at the auto square off trigger time and the Client agree to the accept the actual executed price. Client understand that in case the Auto Square off does not take place due to certain reasons like network or system problems, price band, etc. then Reliance Securities shall exercise the option Convert to Delivery. If for a open sell position Convert to Delivery also fails due to non-availability/shortage of Demat shares, then for the open sell position, the Client will have to face auction or close out as per the procedures that have been prescribed by the concerned Exchange. Consequently, client will be responsible for any resulting losses, if any, and all associated costs including penalty levied by the Exchange for short delivery etc. If Convert to Delivery fails due to insufficient equity limits/funds in the client account, then for the open buy position, the shares will not be delivered to the Client and Reliance Securities will liquidate the shares anytime thereafter and the Client will be liable for any resulting losses and all associated costs.

Also, Reliance Securities reserves the right to square off any open Margin positions, if the current market price breaches a predefined percentage when compared with the previous day’s closing price for that scrip. This predefined percentage is currently 12% and is subject change to by Reliance Securities from time to time. In such a scenario, if the market price is moving up then Reliance Securities may square off short positions and if the market price is going down then Reliance Securities may square off long positions. Before squaring off the open positions Reliance Securities may cancel all or any pending orders in the client account.

OTHER TERMS

Under no circumstances shall Reliance Securities be liable to the Client or any third party for any incidental, indirect, consequential, special or exemplary damages arising from or in relation to the Margin trading facility provided to the Client, even if Reliance Securities has been advised of the possibility of such damages, e.g. lost business, loss of revenue or loss of anticipated profits.

Reliance Securities shall not be liable for any failure to perform any of its obligations as a stock broker if the performance is prevented or delayed by a Force majeure event (as defined below) and in such an event its obligations shall be suspended for so long as the Force majeure event continues. Force majeure event means any event due to any cause beyond the reasonable control of Reliance Securities, including, without limitation, software malfunction, unavailability of any trading, communication system or computer systems, equipment or an accident, power failure, breakdown or interruption or any technical flaw in the website or communication lines or network lines or hardware or software, flood, sabotage, fire, explosion, civil commotion, strikes or industrial action of any kind, riots, acts of God, insurrection, war or actions of government.

Reliance Securities reserves the right to either temporarily or permanently, withdraw or suspend the Margin trading facility either on BSE or NSE or on both provided to the client at any time without giving any prior notice or assigning any reason for the same.

The margin percentage for different scrips will be made available on the website. The margins detailed on the website are indicative numbers and the actual margins may vary as per risk perception of Reliance Securities.

Reliance Securities may at any time without notice to the clients disable any of the scrips from trading. It may also without notice to the clients disable only buy in any of the scrips from trading or disable only sell in any of the scrips from trading

Reliance Securities shall have the right to modify these terms and conditions to meet any new regulatory requirements arising out of circulars, regulations, notifications etc issued by SEBI, Stock Exchanges etc., having any bearing on this Margin Trading product. Reliance Securities may also at is absolute discretion amend or supplement any of the terms and conditions mentioned herein at any time and that Reliance Securities will endeavor to give suitable notice of the same to the client either by email or by displaying the amended terms and conditions on the Website as it may deem fit, and such amended terms and conditions will thereupon apply to and binding on the Client for all his existing and new transactions in margin trading.

By placing transaction instruction(s) in the Margin Trading product through Reliance Securities, the client is deemed to have read and accepted all the above terms and conditions.