Terms and Conditions for the CashPlus product (Margin Trading Facility)

PLEASE READ THIS AGREEMENT CAREFULLY BEFORE SUBSCRIBING FOR AND USING THE CASHPLUS PRODUCT WITH SAMCO. BY SUBSCRIBING TO THIS PRODUCT AND BY AVAILING THE FACILITY, YOU ARE AGREEING TO BE BOUND BY THE TERMS OF THIS AGREEMENT. IF YOU DO NOT AGREE TO THE TERMS OF THIS AGREEMENT, KINDLY DO NOT SUBSCRIBE TO THE PRODUCT AND DO NOT AVAIL OF THE FACILITIES OFFERED UNDER THE PRODUCT.

THE TERMS AND CONDITIONS PRESCRIBED HERE UNDER FORM PART OF ACCOUNT OPENING FORM, SHALL BE READ IN CONJUNCTION WITH THE RIGHTS AND OBLIGATIONS AS PRESCRIBED UNDER SEBI CIRCULAR NO. CIR/ MRD/ 54/ 2017 DATED JUNE 23, 2017 AND THE RULES, REGULATIONS, BY-LAWS, RIGHTS AND OBLIGATION, GUIDELINES, CIRCULARS ISSUED BY SEBI AND EXCHANGES FROM TIME TO TIME. ALL THE TERMS MENTIONED IN THE RIGHTS AND OBLIGATION PRESCRIBED BY NSE & BSE WOULD ALWAYS BE APPLICABLE EVEN IF THEY ARE NOT MENTIONED BELOW.

The CashPlus product permits investors to borrow funds from SAMCO Securities Ltd to purchase securities on margin. Margin securities purchased under the CashPlus product will be retained as collateral and SAMCO Securities Ltd shall continue to maintain these securities in their custody and shall have a lien over the securities until clearances of all outstanding debits owed by the client to SAMCO.

The profit and loss on all margin positions shall belong to the client.

All exchange obligations on account of purchase of securities shall be met by SAMCO Securities Limited. Clients shall be subject to payment of interest for any outstanding debits on their ledger account for as long as the debits on the account are not settled and cleared. The delayed payment interest payable on outstanding debit shall be 0.05% per day. SAMCO reserves the right to change the interest rate at any time. Clients shall be notified of any changes in the interest rate. Interest shall be levied in the ledger account of the client maintained by SAMCO Securities Limited. Interest shall be calculated by multiplying the outstanding debit amount by the daily interest percentage rate.
SAMCO Securities Limited shall publish a list of securities available for trading under the CashPlus product from time to time on the website. Clients willing to make trades in the MTF facility shall be required to place orders under the ‘NRML’ product type available on the Trading Terminals. SAMCO reserves the right to add or delete securities to this list at any time. Clients shall be required to square-up immediately existing open positions if any on deletion of any stock from the permitted stock list. The list would be limited to securities prescribed by SEBI/Exchanges from time to time.
The information contained in the statements and back office reports given to clients are based on the transactions carried out by clients with us during the given period and are for information purposes only. The valuations of securities are computed using market price of the securities obtained from available Quotation Services and other sources, which we believe to be generally reliable. The values given may not reflect the values that can be realised due to (i) change in the prices before realisation, (ii) the valuation may represent a bid or offered rate whereas realisation will generally be at the prevailing bid price. While SAMCO Securities Ltd has taken reasonable care to ensure that the contents including the computations/valuations in statements/reports are accurate, no claim is made that all the information contained therein is complete and accurate in all respects. SAMCO reserves its right to rectify the discrepancies, if any. Clients should consult customer support for any clarification or discrepancies in their Statement of Accounts. Samco shall maintain separate client-wise ledgers for funds and securities of clients availing margin trading facility.

Clients shall be required to maintain the minimum required margins for their securities held at all times. The Margin required for every security shall be published on the SAMCO website from time to time. Orders where margin required exceed the margins available with the client shall be rejected.

Margins blocked on account of open positions, if any, shall be released as soon as clients square off open margin positions. All NRML margin positions bought forward can be converted to CNC holdings. As per the terms of the CashPlus product, it is a pre-condition that Margin positions initiated in the NSE exchange shall be compulsorily squared-off in the NSE exchange only and positions initiated in the BSE exchange shall be compulsorily squared-off on the BSE exchange only. The client shall not hold SAMCO responsible for any issue/loss that may arise due to the client’s failure to meet this condition.

Margin requirements and margin calls are based on the market value of a stock, not on the purchase price. Therefore, a decline in the price of a security may result in a margin requirement in the trading account, and a margin call in the account. If this happens, clients are responsible to promptly deposit the necessary cash or securities, or to liquidate sufficient positions in the account to satisfy the margin call.

SAMCO Securities is authorized, at its discretion and without prior notice to client , to liquidate any or all securities or other assets held in the account (a) to satisfy an outstanding margin call for which the client have failed to provide additional collateral, or (b) to prevent or limit unsecured losses when the margin loan exceeds the value of the securities. The liquidation of securities or assets will be executed regardless of the amount of time client have owned the asset, their intention to satisfy the call or secure the loan, or any profit or loss that may be incured by such transactions. The investor / trader/ client is not entitled to an extension of time to satisfy the call, to choose which securities SAMCO Securities ltd, may liquidate, and is responsible for losses if any resulting from the liquidation of an asset(s) to satisfy a margin call and for any remaining deficiency in the account.

SAMCO Securities ltd may forcibly liquidate all or part of clients account without prior notice, regardless of clients intent to satisfy a margin call, in order to protect interest of both the parties. Because it involves the extension of credit, borrowing on margin may not be appropriate for every client . An investment strategy which includes trading on margin exposes the investors/traders to additional costs, increased risks, and potential losses in excess of the amount deposited. Because the accounts with SAMCO are self-directed, clients must carefully review their investment objectives, financial resources, and risk tolerance to determine whether it is right for them to initiate the risk.. No one should buy on margin without the temperament to accept the reality that price fluctuations are intrinsic to the marketplace, and that they should have the financial resources to meet margin calls and absorb losses resulting from a drop in stock prices.

SAMCO reserves the right to liquidate client positions with or without notice in any case which may include but not be restricted to Mark-To-Market losses on positions exceeding 80% or Loan to Value falling below 25% or any such other condition.

Client’s can carry outstanding debits on the account for as long as the margins maintained in their account exceed the prescribed margins. Note that client accounts shall be subject to the monthly/quarterly settlement compliance requirements of the SEBI and the stock exchanges.
The subscription shall be valid for a period of 1 year from the date of acceptance of this agreement and shall be auto-renewed for a period of 1 year each until a request is received in writing from the client for cancellation of the subscription. In case of cancellation of subscription mid-year, the subscription fees for that year shall be non-refundable.
All securities purchased as margin positions under the CashPlus product must be deposited with us, in their account, in our custody. We may also hypothecate these shares with a bank i.e. pledge the shares lying in your account with a bank. SAMCO Securities Ltd is authorized at its discretion to liquidate margin positions/holdings of the client held by SAMCO Securities Ltd as collateral in case of any margin shortfall which may/may not have been met by the client.
The client agrees and acknowledges that he/she/they understands all the risks associated with trading on margin/leverage. Borrowing on margin may not be appropriate for every investor/trader. An investment strategy that includes trading on margin exposes clients to additional costs, increased risks, and potential losses in excess of the amount deposited. The client should not buy on margin without the temperament to accept the price fluctuations that are intrinsic to the marketplace, and/or should have the financial resources to meet margin calls and absorb trading losses.
Discrepancies or differences in any reports/statements should be reported immediately. Issues, if any, not reported within 24 hours of receipt of communication shall be deemed as accepted.
If any provision of this Agreement is held to be illegal, invalid, or unenforceable under any present or future laws such provision will be severable and these Terms and Conditions will be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a part hereof and the remaining provisions of this Agreement shall remain in full force and effect and will not be affected by the illegal, invalid, or unenforceable provision or by its severance here from.

Any disputes arising between the client and the stock broker in connection with the margin trading facility shall have the same treatment as normal trades and should be covered under the investor grievance redressal mechanism, arbitration mechanism of the stock exchange. SGF and IPF shall be available for transactions done on the exchange, whether through normal or margin trading facility. However, any losses suffered in connection with the margin trading facility availed by the client from the stock broker shall not be covered under IPF.

Continued Performance: During the period when a dispute is being resolved, the Parties shall continue their performance of this Agreement except for the matter being disputed.

This agreement, the transactions contemplated herein and the rights and obligations of the Parties are governed by and shall be construed in accordance with the laws of India.

The Parties irrevocably agree that any legal action or proceedings arising out of this agreement and in relation to the transactions contemplated herein and the rights and obligations of the Parties, may be brought in the Courts of Mumbai in India and irrevocably submits itself to the jurisdiction of that court.

The client agrees with the terms and conditions set out above in total and agrees to abide by the same.

This agreement shall come into effect from the date it is accepted either physically or electronically by the client.

Accepted Electronically by SAMCO Securities Limited and the Client.

Place: Mumbai

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