Religare Broking Ltd.

Rights & Obligations of Stock Brokers & Clients for Margin Trading Facility (MTF)

As prescribed by NSE:

Client Rights:
  1. Client shall receive all communications in a mode mutually agreed between the broker and the client regarding confirmation of orders/trades, margin calls, decision to liquidate the position/security.
  2. Client shall be free to take the delivery of the securities at any time by repaying the amounts that was paid by the Stock Broker to the Exchange towards securities after paying all dues.
  3. Client has a right to change the securities collateral offered for Margin Trading Facility at any time so long as the securities so offered are approved for margin trading facility.
  4. Client may close / terminate the Margin Trading Account at any time after paying the dues.

Client Obligations:
  1. Client shall, in writing in his own hand or in any irrefutable electronic method, agree to avail of Margin Trading Facility in accordance with the terms and conditions of Margin Trading Facility offered by the broker, method of communication for confirmation of orders/trades, margin calls and calls for liquidation of collateral/security/position.
  2. Client shall identify transactions to be shifted under Margin Trading Facility at the time of order placement itself failing which the transaction will be treated under the normal trading facility.
  3. Client shall place the margin amounts as the Stock Broker may specify to the client from time to time.
  4. On receipt of ‘margin call’, the client shall make good such deficiency in the amount of margin placed with the Stock Broker within such time as the Stock Broker may specify.
  5. By agreeing to avail Margin Trading Facility with the broker, client is deemed to have authorized the broker to retain pledge of the securities provided as collateral and re-pledge of same with clearing member/clearing corporation as the case may be; and right to initiate the advance margin pledge request for securities purchased under the Margin Trading Facility on behalf of client and retain the pledge of same till the amount due in respect of the said transaction including the dues to the broker is paid in full by the client.
  6. Client shall lodge protest or disagreement with any transaction done under the margin trading facility within the timelines as may be agreed between the client and broker.
Stock Broker Rights:
  1. Stock Broker and client may agree between themselves the terms and condition including commercial terms if any before commencement of MTF.
  2. Stock broker may set up its own risk management policy that will be applicable to the transactions done under the Margin Trading Facility. Stock broker may make amendments there to at any time but give effect to such policy after the amendments are duly communicated to the clients registered under the Margin Trading Facility.
  3. The broker has a right to retain the pledge of the securities provided as collateral and re-pledge of same with clearing member/clearing Corporation as the case may be; and right to initiate the advance margin pledge request for securities purchased by the client under the Margin Trading Facility and retain the pledge of same.
  4. The broker may liquidate the securities if the client fails to meet the margin call made by the broker as mutually agreed of liquidation terms but not exceeding 5 working days from the day of margin call.
Stock Broker Obligations:
  1. Stock broker shall agree with the client the terms and condition before extending Margin Trading Facility to such client. However, for clients who already have existing trading relationship and want to avail of Margin Trading Facility, stock broker may take consent in writing in his own hand or in any irrefutable electronic method after stock broker has communicated the terms and conditions of Margin Trading Facility to such existing clients.
  2. The terms and conditions of Margin Trading Facility shall be identified separately, in a distinct section if given as a part of account opening agreement.
  3. The mode of communication of order confirmation, margin calls or liquidation of position/security shall be as agreed between the broker and the client and shall be in writing in his own hand or in any irrefutable electronic method. Stock broker shall prescribe and communicate its margin policies on haircuts/ VAR margins subject to minimum requirements specified by SEBI and exchanges from time to time.
  4. The Stock Broker shall monitor and review on a continuous basis the client’s positions with regard to MTF. It is desirable that appropriate alert mechanism is set up through which clients are alerted on possible breach of margin requirements.
  5. Any transaction to be considered for exposure to MTF shall be determined as per the policy of the broker provided that such determination shall happen not later than T + 1 day.
  6. If the transaction is entered under margin trading account, there will not be any further confirmation that it is margin trading transaction other than contract note.
  7. In case the determination happens after the issuance of contract, the broker shall issue appropriate records to communicate to Client the change in status of transaction from Normal to Margin trading and should include information like the original contract number and the margin statement and the changed data.
  8. The Stock Broker shall make a ‘margin call’ requiring the client to place such margin; any such call shall clearly indicate the additional/deficient margin to be made good.
  9. Time period for liquidation of position/security shall be in accordance declared policy of the broker as applicable to all MTF clients consistently. However, the same should not be later than 5 working (trading) days from the day of ‘margin call’. If securities are liquidated, the contract note issued for such margin call related transactions shall carry an asterisk or identifier that the transaction has arisen out of margin call.
  10. The daily margin statements sent by broker to the client shall identify the margin/collateral for Margin Trading separately.
  11. Margin Trading Accounts where there was no transactions for 90 days shall be settled immediately.
  12. The stocks pledged as collateral with the stock broker for availing margin trading facility (Collaterals) and the stocks purchased under the margin trading facility (Funded stocks) shall be identifiable separately and there shall not be any comingling for the purpose of computing funding amount;
  13. Stock Broker shall close/terminate the account of the client forthwith upon receipt of such request from the client subject to the condition that the client has paid dues under Margin Trading Facility.
Termination of relationship:
  1. The margin trading arrangement between the stock broker and the client shall be terminated; if the Stock Exchange, for any reason, withdraws the margin trading facility provided to the Stock Broker or the Stock Broker surrenders the facility or the Stock Broker ceases to be a member of the stock exchange.
  2. The MTF facility may be withdrawn by the broker, in the event of client committing any breach of any terms or conditions therein or at anytime after due intimation to client allowing such time to liquidate the MTF position as per the agreed liquidation terms without assigning any reason. Similarly, client may opt to terminate the margin trading facility in the event of broker committing any breach of any terms or conditions therein or for any other reason.
  3. In the event of termination of this arrangement, the client shall forthwith settle the dues of the Stock Broker. The Stock Broker shall be entitled to immediately adjust the Margin Amount against the dues of the client, and the client hereby authorizes the Stock Broker to make such adjustment.
  4. After such adjustment, if any further amount is due from the client to the Stock Broker, the client shall settle the same forthwith. Upon full settlement of all the dues of the client to the Stock Broker, the Stock Broker shall release the balance amount to the client.
  5. If the client opts to terminate the margin trading facility, broker shall forthwith return to the client all the collaterals provided/pledged and funded securities pledged with broker on payment of all the dues by clients.
As prescribed by BSE:
  1. Stock Broker/ Trading Member is eligible to provide Margin Trading Facility (MTF) in accordance with SEBI & Exchange Guidelines as specified from time to time.
  2. Stock Broker/ Trading Member desirous of extending MTF to their clients is required to obtain prior permission of BSE. Stock Broker/ Trading Member may note that BSE has the right to withdraw the permission at anytime.
  3. Stock Broker/ Trading Member shall extend the MTF to the client, on such terms and conditions as specified by the Stock Exchange / SEBI from time to time. Stock Broker/ Trading Member and the client shall abide by the requirements of the margin trading framework, including rights and obligations, as prescribed by Stock Exchange/ SEBI/ Stock Broker/ Trading Member.
  4. Stock Broker/ Trading Member shall intimate all the terms and conditions, including maximum allowable exposure, specific stock exposures etc., as well as the rights and obligations to the client desirous of availing MTF.
  5. Stock Broker/ Trading Member may, at its sole and absolute discretion, increase the limit of initial and/or maintenance margin, from time to time. The Client shall abide by such revision, and where there is an upward revision of such margin amount, he agrees to make up the shortfall within such time as the Stock Broker/ Trading Member may permit. It may however, be noted that the initial/ maintenance margins shall never be lower than that prescribed by Stock Exchange/ SEBI.
  6. Stock Broker/ Trading Member shall provide MTF only in respect of such shares, as may be permitted by Stock Exchange/ SEBI.
  7. Stock Broker/ Trading Member shall liquidate the securities and other collateral, if the client fails to meet the margin call to comply with the margin requirement as specified by Stock Exchange/SEBI/ Stock Broker/ Trading Member. In this regard, Stock Broker/ Trading Member shall also list down situations/ conditions in the which the securities may be liquidated (Stock Broker/ Trading Member to list down situations/ conditions):
  8. Stock Broker/ Trading Member shall not use the funds of one client to provide MTF to another client, even if the same is authorized by the first client.
  9. The stocks pledged as collateral with the Stock Broker/ Trading Member for availing margin trading facility (Pledged Collaterals) and the stocks purchased under the margin trading facility (Funded stocks) shall be identifiable separately and no comingling shall be permitted for the purpose of computing funding amount 
  10. IPF shall not be available for transactions done on the Stock Exchange, through MTF, in case of any losses suffered in connection with the MTF availed by the client.
The rights and obligations prescribed hereinabove shall be read in conjunction with the rights and obligations as prescribed under SEBI circular no. CIR/ MIRSD/ 16/ 2011 dated August 22, 2011.

As prescribed by Religare Broking Ltd. (RBL)
  1. Initial margins to be provided by the clients will be decided by the company management as per its Risk Management Policy from time to time and same can be higher than the margins prescribed by regulator/exchanges. The client agrees to pay such applicable initial margins or such other margins as are considered necessary by the stock broker or the Exchange or as may be directed by SEBI from time to time as applicable to Margin Trading segment in which the client trades.
  2. The client will pay the initial margin to the Stock Broker in form of cash, cash equivalent or Group I equity shares (via pledging of securities), on which appropriate hair cut will be applicable as specified in SEBI Master circular no. SEBI/HO/MRD/DP/CIR/P/2016/135 dated December 16, 2016.
  3. Eligible Scrips under facility: The Margin Trading facility is applicable to Group I scrips or as specified by SEBI / Stock Exchange(s) from time to time. The broker may choose to not to provide Margin Trading facility on certain eligible scrips at its discretion as per its risk management policy.
  4. The Client understands that it is his obligation to identify orders/trades to be shifted under MTF at the time of placement of order
  5. In order to avail margin trading facility, minimum initial margin required shall be as under:
Category of Stock Applicable margin
Group I stocks available for trading in the F & O Segment VaR + 3 times of applicable ELM*
Group I stocks other than F&O stocks VaR + 5 times of applicable ELM*
  *For aforesaid purpose the applicable VaR and ELM shall be as in the cash segment for a particular stock.
  1. The above-mentioned rates of VAR margin are minimum and the same can increased on case to case basis at member’s discretion as per its risk management policy.
  2. Limits & Exposure: RBL at its discretion will provide exposure to client based on maximum allowable exposure limit as prescribed by SEBI/Exchange(s) from time to time. However, based on exchange margin requirements and member’s risk perception about the market the stock broker may set the Exposure limits on the basis of available base capital which may be total of Ledger and stocks (after suitable margin hair cut). The exposure limits may be allowed on a actual VAR margin basis or a specified margin depending on the Market conditions. However RBL may use its own discretion in providing the limits in exceptional situations and may modify limits for a client depending on market condition. In case overall positions has reached a particular specified level in a particular scrip or across all scrips as per stock broker risk management policy, then client may not be allowed to take further position.
  3. RBL reserves the right to square-off open MTF positions of client or convert the same to normal trades regardless of the availability of required margin in the client’s MTF ledger in case of client’s failure to approve advance margin pledge request raised by RBL on behalf of the client for pledging of securities purchased under MTF in favour of RBL on an immediate basis and maximum by Settlement day. Client will be solely responsible for losses, if any, arising due to the action of RBL.
  4. RBL may close the existing / partial positions of a client if the margin cover falls below minimum prescribed margin limits as specified by SEBI / Exchange(s) / RBL guidelines.
  5. If debit / margin shortfall still exist after closing the client’s positions, collaterals provided by client may also be liquidated to recover the debits / margin shortfalls.
  6. Even if sufficient Margin cover is available to RBL on behalf of a client, RBL may still choose to not to allow further positions or may close the existing position of a client, in case there are outstanding debits in clients normal trading account or based on the market conditions and its risk perception by RBL.
  7. The above referred liquidation of client’s position / collateral may be carried out by RBL at any point of time after the day of Margin Call.
  8. The Client agrees that he will keep himself updated with regards to changes in the eligible stocks / collaterals that can be purchased / furnished for the Margin Trading Facility by visiting Exchange websites. The client further agrees that he will take necessary action to replenish the margins (Cash/stocks as collaterals) in case of any margin shortfall to avoid any RMC Actions.
  9. In addition to what the client has agreed in the agreement, RBL may choose to terminate a client’s account with immediate effect, but not limited to the following reasons –
  1. Interest will be charged on the MTF gross exposure or debit MTF ledger balance whichever is higher at the rates as defined and intimated by RBL.
  2. Collateral/Securities provided/pledged by client towards Margin should be totally unencumbered.
  3. Any disputes arising between the client and RBL in connection with the margin trading facility shall have the same treatment as normal trades and will be covered under the investor grievance redressal mechanism, arbitration mechanism of the stock exchange.
  Religare Broking Limited Website: www.religareonline.com

Registered Office Address: 2nd Floor, P-14, 45/90, P-Block, Connaught Place, New Delhi 110001 Board line number 011-46272400, Fax No. 011-46272447

Correspondence Address: Club 125, (Tower A), A-3,4 & 5, Sector - 125, Noida - 201301, Uttar Pradesh. Board line number 0120-339100

Compliance Officer: Mr. Nilesh Jain, Emai l Id: compliance@religare.com, Contact No.:0120-486-6643

For any grievance / dispute please contact stock broker (Religare Broking Limited) at the above address or Email id igreligare@religare.com for stock broking related dispute. In case not satisfied with the response, please contact BSE at is@bseindia.com and Phone no. 91-22-2728097 and NSE at ignse@nse.co.in and Phone no. +91-22-26598190

Stock Broker Registration details: Religare Broking Limited (RBL): SEBI Regn. No. INZ000174330 NSE CM, F&O, CD TM Code: 06537 Clearing Member (F&O) No. M50235; BSE CM, F&O, CD, CO Code: 3004 Clearing No: 3004; MSEI CM, F&O, CD, TM Code: 1051 | MCX Membership No. 56560 | NCDEX Membership No. 01276

Depository Participant: Religare Broking Limited (RBL) - NSDL: DP ID: IN 301774 | SEBI Regn. No:  IN-DP- 385-2018 | CDSL DP ID: 30200 | SEBI Regn. No: IN-DP-385-2018

Religare Broking Limited (RBL): Research Analyst SEBI Regi. No: INH100006977

Religare Broking Limited (RBL): ARN No. 139809