RISK MANAGEMENT

The Client understands that regulators have prescribed stocks which are eligible to be offered in E-margin. Hence, E-margin shall not be offered in all the stocks traded on Stock Exchanges. The client agrees that HDFC Securities shall have the discretion to select securities that will be enabled for trading under the Facility as per its internal risk management policy and the number of stocks enabled for trading under E-margin by HDFC Securities can be smaller than the number of stocks allowed by regulators.

The client agrees that HDFC Securities may require the client to provide such margin (in such form and manner as acceptable to HDFC Securities) depending on the security and market volatility as it deems fit in its sole discretion as necessary for risk mitigation. This margin requirement may be more than the margin prescribed by SEBI/ stock exchanges. Margin may be taken in cash, Cash equivalent or eligible shares as may be acceptable to HDFC Securities. In the event the client offers securities as margin to HDFC Securities, then the Terms and conditions as mentioned under "Shares as Collateral" elsewhere in this Terms and conditions shall apply.

The Client agrees that HDFC Securities may at its sole discretion, change the margin requirement on the Transactions, in which the Client has taken or proposes to take positions depending on its own risk mitigation measures and without intimating or consulting the client. Due to increased volatility in the prices, the margin requirement may be increased and in such event the Client undertakes to keep sufficient additional funds/securities in the linked Bank/Demat account that can be placed on hold to continue with the open position. If such Margin requirement is not met, and there are no sufficient funds/collaterals be refurbished the position may be squared off by HDFC Securities for insufficient Margin. The Client undertakes to maintain sufficient Limit in the Equity segment to safeguard the open position from being squared off.

The Client agrees that under the Facility, Margin shall be blocked at the time of order placement after taking into account the current market price / weighted average price. For market orders, margin shall be blocked considering the order price as the last traded price of the security. In the event the actual trade execution takes place at a price different from the price at which the Margin was blocked, the required Margin would then be re-calculatedand the limits would be blocked at the actual Traded Price. In case of order modification also, the required Margin shall be re-calculated and excess margin, if any, shall be released or additional margin needed, if any, will be blocked. In case the available Margin with HDFC Securities is insufficient, then the order modification request would get rejected.The Client understands that the Client's positions are continuously monitored and the Client agrees to provide Margin (including additional Margin) as may be determined by HDFC Securities from time to time.

In the MTM process, if it is observed that the Available Margin on the position has fallen below the Minimum Margin required, HDFC Securities would block additional Margin required from the Limits available. In case Limits are not sufficient to meet the additional Margin requirements then HDFC Securities may place a square off order at market rate to close the position. If the available Limit is not sufficient to meet the demand for additional Margin, HDFC Securities may close out the open position taken by the Client and the Client shall be solely responsible forany losses arising on account of the same. It shall be the responsibility of the Client to regularly monitor and review the Margin availability and furnish the additional Margin to HDFC Securities.

HDFC Securities reserves the right to close out the open position at any time in case the Client does not satisfy the additional Margin requirements. The Client shall maintain sufficient Limit to provide Margin as and when required by HDFC Securities. Client agrees that the client’s position shall be liquidated if there is margin shortfall.

Client agrees that the mode of communication to clients pertaining to order/trade confirmation, margin requirements/shortfall and liquidation of stocks will be electronic.If available margin falls below the minimum margin required on that position, then such position may be squared off in the MTM process if additional margin is not provided. This too shall be considered as a margin call on that position. Client agrees to replenish additional margin immediately to meet the margin shortfall else suchposition may be squared off by HDFC Securities, on best effort basis.

Due to MTM and blocking of Additional Margin, Limits may become lesser over a period of time and because of the same, positions may fall in the MTM loop and may get squared off unless the Client provides fresh Limits.

Client agrees that HDFC Securities will keep a maximum Quantity limit for securities accepted as collateral. It means that there will be a limit to the quantity of shares that can be given by client as collaterals.
Client hereby agrees and understands that if a position is built in a in the single Security by giving the very same security as collateral, special monitoring will be done by HDFC Securities if the amount of Debit is above Rs. 10 lakhs with respect to security wise concentration of Debit. And if need be , the client will be allowed only selling of that particular security and further buying until fresh funds / separate securities are brought in by the client will be restricted.
The client hereby also agrees that HDFC Securities will cap the client level exposure at any point of time to 10% of the maximum allowable exposure of HDFC Securities Limited.
The Client hereby undertakes to replenish additional Margin voluntarily, on any open position and make available sufficient Margin against the position to avoid square off of the position by HDFC Securities. The client understands that Stocks bought under the E-margin shall be marked to market on daily basis and collateral stocks shall be revalued frequently.

a) EOD MTM PROCESS

The Client understands that the End of Day Mark to Market (EOD MTM) Process will be run on a daily basis for all open positions. The process will be run security-wise for each client, in which all open positions of the client in various settlements will be cumulated and considered as a single unit for further processing in the EOD MTMactivity. Under the process, the system will compare the security-wise cumulative Available Margin against the cumulative Minimum Margin requirement for the open positions in that security. If the security-wise Cumulative Available Margin is less than the security-wise Cumulative Minimum Margin required across all the positions in that security, Additional margin requirement will be calculated for such security. The Additional Marginwill be blocked from the allocated amount and Limits shall be reduced by the amount so blocked.

b) CALLS FOR ADDITIONAL COLLATERAL AND LIQUIDATION

If it is considered necessary for its own protection, HDFC Securities may require the Client/s to immediately deposit cash or collateral into their account prior to any applicable settlement date in order to assure due performance of their open contractual commitments. If Client/s do not provide the additional cash or collateral, Client/s hereby understand and acknowledge that HDFC Securities has the right to sell any or all securities and other property in their account, buy any or all securities and other property which may be short in their account,cancel any or all open orders and/or close any or all outstanding contracts. In addition, Client/s understand and agree that HDFC Securities may exercise any or all of the above rights without demand for additional cash or collateral, or notice of sale or purchase, or other notice or advertisement. Any such sales or purchases may be made at any time at HDFC Securities discretion on any exchange or other market where such business is usually transacted, or at public auction or private sale, or HDFC Securities may be the purchaser/seller for its own account.

OTHER RIGHTS OF HDFC Securities UNDER THE FACILITY

HDFC Securities, at its sole discretion, reserves the right to either temporarily or permanently, withdraw or suspend the Facility at any time without giving any notice or assigning any reason for the same, whether in respect of one or more Clients. In case of a temporary withdrawal, the privileges may be reinstated by HDFC Securities at its sole discretion. HDFC Securities shall decide upon the list of Securities in which the Clients would be permitted to take Fresh E-margin Positions under the Facility. This list of Securities would be provided to the Client, by displaying such list on the Website. Such list of Securities would be subject to change by HDFC Securities from time to time. HDFC Securities may also at its sole discretion decide to withdraw a particular security from the list without notice to the clients and without assigning any reasons whatsoever.

HDFC Securities shall decide upon the Security specific Margin applicable for taking Fresh Margin Trading Positions in various Securities under the Facility. HDFC Securities reserves the right to alter the Security specific Margin applicable for a Security without notice to the Client and without assigning any reasons whatsoever. Client understands that HDFC Securities may impose margins higher than the margin requirements prescribed by SEBI/Stock Exchanges. The Client agrees that in case of insufficient Limits, to safeguard its interest HDFC Securities may, at itsdiscretion, block and debit any unallocated funds lying in Client's Bank Account integrated with the Account and /or debit securities lying in Client's demat account integrated with the Account towards dues recoverable from the client. No delay in exercising or omission to exercise any right, power or remedy accruing to HDFC Securities upon any default by the Client or otherwise under these Right and Obligations document or the Client Agreement shall impair any such right, power or remedy or shall be construed to be a waiver thereof or any acquiescence in such default, nor shall the action or inaction of HDFC Securities in respect of any default or any acquiescence by it in any default, affect or impair any right, power or remedy of HDFC Securities in respect of any other default. The rights of HDFC Securities under these Terms and Conditions and the Client Agreement are cumulative and not exclusive of their rights under the general law and may be waived only in writing and specifically and at the sole discretion of HDFC Securities.

CLIENT AUTHORISATIONS AND INDEMINITIES

The Client agrees and undertakes to provide HDFC Securities with all the documents and particulars, which may be required by HDFC Securities, pursuant to the Client availing of this Facility. The use of this facility is entirely voluntary and the facility has to be used in accordance with the applicable rules/ regulations/ guidelines specified by the Securities and Exchange Board of India and other competent authorities from time to time. HDFC Securities disclaims all liability for any loss caused to the Client out of the purchase or sale of securities through use of this facility. The Client agrees and understands that the client shall, at all times, be responsible for the client's investment decisions and/or orders placed, or applications preferred by the Client, either electronically or otherwise.

The Client agrees and undertakes that he is not the Promoter of the company for which the position is taken and in case otherwise he agrees to up front disclose the same to HDFC Securities before creating position.

Terms & Conditions:
¨This product is applicable to only resident Indian clients

¨The client can place the E-Margin order/s though various channel/s viz Internet, Call N' Trade, Branch, Mobile, LITS etc

¨ HDFC securities shall decide upon the list of Securities in which Clients would be permitted to take e-Margin positions.

¨ HDFC Securities shall provide an option/s of the Exchanges in which the Clients would be permitted to place e-Margin orders under this e-Margin facility. HDFC securities shall have the discretion to withdraw the facility from any Exchange as well as provide the facility on any additional Exchange at any time.

¨ HDFC securities shall decide upon the Security specific Margin applicable for taking e-Margin Positions in various Securities under the Facility and HDFC securities reserves the right to alter the Security specific Margins for a Security as per the internal risk management policies and procedures. The list of Securities and Security specific margin rates will be displayed on website and may be subject to change / review by HDFC securities Ltd from time to time. The client is required to keep himself updated with the applicable margin rates at the time of order placement and during the period the position is kept open.

Customers agreeing to the revised terms and conditions will be going forward eligible for extra leverage duration of T+N days (“N” will be decided by HDFC Securities from time to time. Please refer FAQ for the relevant duration as applicable) from the day the terms and condition are agreed online.
On the last date of the duration offered, all unexecuted e-Margin orders will be squared off at 2:45 PM (timing subject to change as per discretion of HDFC securities Ltd)

HDFC Securities may liquidate the securities if the client fails to meet the margin call made by them as mutually agreed, but not exceeding 5 working days from the day of margin call

¨ Margin will be charged to clients on open positions in e-margin and funds/shares as collateral will be pulled on T day and T+1 day (incremental margin). The details are provided to the customers vide the daily margin statement reports and details as updated under clients secured login.

¨ The Client agrees that HDFC securities would not be held liable in the event for reasons including but not limited to lack of adequate offered quantity, the entire quantity of the e-Margin order is not fully executed. In such a scenario, HDFC securities would, at its discretion, cancel these unexecuted e-Margin orders and place order at market price so that such orders could be executed immediately at market prices and the positions are squared off. Any loss arising out of such square off would be fully borne by the Client.

¨ The Client agrees that HDFC securities would not be liable in the event for reasons including but not limited to volatility 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 control of HDFC securities Limited.

¨ In case the e-Margin position could not be squared off for any reasons (for example, lower liquidity in the scrip, scrip hitting circuit filter, internal system issues or problems at Exchange’s end, market freezing by the Exchanges / SEBI etc.) your open position will be settled on a delivery basis.

¨ Incase the Client has buy position which resulted in no delivery / shortage then the sell leg transaction (if executed on or before T+2) would also amount to shortage. The auction value as applicable on the shortages would apply.

¨If any amount is due from the Client to HDFC securities pursuant to the Client availing of the Facility, the Client shall pay the amount due without demur on a demand being made by HDFC securities. HDFC securities shall also have the right to transfer /sell any other securities of the Client at Client's risk and costs and with or without intimation to the Client for recovering such dues. In case of delayed payment/ delay in realization of the dues, then interest, at the rates as decided by HDFC securities from time to time, shall be paid by the Client for the same till the date of payment by the Client.

¨ The Client agrees and undertakes to provide HDFC securities with all the documents and particulars if any that may be required by HDFC securities, pursuant to the Client availing of this Facility.

¨ The Client hereby directs and authorizes HDFC Bank Limited as the Depository Participant to act on the directions given by HDFC securities pursuant to the terms and conditions herein, power of attorney (POA) and Client Agreement / Rights and Obligations executed by the Client in favour of /with HDFC securities.

¨ HDFC securities shall not be deemed to have received any electronically transmitted order or application until HDFC securities has confirmed the receipt of such an order or application. The client further understands that trading through www.hdfcsec.com is in electronic mode, based on satellite / leased line based 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 control and may result in delay in processing or not processing buy or sell orders either in part or in full. The client understands and agrees that although these problems may be temporary in nature, in case when the client has outstanding open positions or unexecuted orders, these represent a risk because of the client’s obligations to settle all executed transactions. The Client understands that placing an order with HDFC securities, either electronically or otherwise, does not guarantee execution of the said order or acceptance of an application. The Client shall not hold, nor seek to hold, HDFC securities and/or any of its officers, directors, employees, agents, subsidiaries or affiliates, liable for any loss including but not limited to trading losses incurred by the Client due to exchange or market regulation, suspension of trading, war, strike, equipment failure, communication line failure, system failure, security failure on the Internet, unauthorized access, theft, or any problem, technological or otherwise, or other condition beyond the control of HDFC securities that might prevent the Client from entering an order or HDFC securities from executing an order.

¨ The Client hereby agrees and undertakes not to hold HDFC Bank Limited (Depository Participant), HDFC securities and HDFC Bank Limited (the bank) liable for any claim, action, grievance or dispute that the Client may suffer and shall indemnify and save harmless HDFC Bank Limited (Depository Participant), HDFC securities and HDFC Bank Limited (the bank) from any claim, action, dispute or grievance that any third party may have, on account of HDFC Bank Limited (Depository Participant), HDFC securities and/or HDFC Bank Limited (the bank) having acted in pursuance of the directions and/or authorizations of the Client and/or his /her agent.

¨This facility shall be offered to the Clients at the sole discretion of HDFC securities. HDFC securities reserves the right to refuse to offer this Facility to any Client or group of Clients and may withdraw the Facility for taking fresh positions at any time without prior notice or assigning any reason therefore.

¨The e-Margin product shall not be available on case-to-case basis at sole discretion of HDFC securities.

¨In case Of any discrepancy/Issue in placing any order please call your Relationship Manager Or Call -N -Trade desk on 33553366 (with Local STD Code )

¨For any further information you may contact our customer care desk at 39019400 (with Local STD Code) or email us at customercare@hdfcsec.com

I/We confirm having read and understood the above terms from page 1 to 8 and agree to be bound these terms.

Client Name:-

Trading number:-

Signature:-