• Penny Stocks :

Penny stocks may inter alia include those classified by BSE/NSE as ‘T’/’TS’/’Z’ group stocks in Cash Segment.

Trading in ‘T’/’TS’/’Z’ group scrips are permitted with quantitative and other restriction as may be announced by the Exchanges from time to time and may even attract upfront payment of margin upto 10 percent. Trading in ‘Z’ group scrips may be blocked and not permitted for diverse reasons at the member’s discretion.

On specific request of any of its constituent, the member may at its discretion, permit the constituent to trade in the scrips covered by the above referred group/s / and securities with specific conditions/restrictions/limitations.

• Exposure Limits :

Exposure limits for the trading by any client will be based on segment wise financial ledger balances (credits) of NSE Cash/NSE F & O/NSE Currency Derivatives or BSE Cash/BSE F & O segments or any other segment that may be introduced by the Exchanges and the stocks made available by the client with applicable hair cut on values). ‘T’ and ‘Z’ group securities will not be considered for fixing the exposure limits and F & O exposure limits will be granted on approved stocks only.

In case of Ledger debit, only delivery based sale transactions will be permitted.

Exposure limit multiples are subject to change and may vary depending on prevailing market conditions, client’s profile or other factors. The member can alter/change it with or without intimation to constituents at its sole discretion.

• Brokerage :

The member can charge a maximum brokerage of 2.5% of the trade value and the same will be within the prescribed limit on the trade value exclusive of statutory levies but inclusive of sub-brokerage, if any.

• Penalty/Delayed Payment Charges :

Any penalty imposed by SEBI/Exchanges or other authorities for any violation of trading and dealing regulations or restrictions by or on behalf of any constituent will be debited to the constituent’s ledger account which he/she will be liable and required to pay up as called upon by the member.

The member will be entitled to claim from the client delayed payment charges/interest/late payment charges for non-fulfillment of obligations/non-payment of dues by the client when such delay extends beyond the prescribed period of T+2 days in case of cash segment transactions and T+1 day in case of F & O transactions including margins and/or M to M losses. The delayed payment charges will be calculated @18% p. a from the date of delay to the date of payment on the amount covered by the delay. The said period and the rate may be varied by the member under intimation to the client.

• Right to sell shares and close positions :

The member shall be entitled to liquidate/close out all or any of the constituent’s position including any collateral for non-payment of outstanding debit including the margins etc. and adjust the proceeds of such liquidation/close out, if any, against the constituent’s liabilities/obligations/debit balance.

The member reserves the right to decide upon the threshold limits for liquidation of constituent’s positions. The constituent understands and agrees to Mehta Equities Ltd. communicating such threshold limits periodically, orally, and/or through e-mails, written correspondences through its trading terminals, branch representative, website and SMS or any other mode.

However, in the event of extreme volatility and/or constituent’s open (outstanding) position resulting in marked to market losses beyond the member’s thresholds any time during a Trading Session, and/or constituent’s positions or collateral being unsaleable, the member may be forced to liquidate any of the constituent’s available positions and collateral even during the course of a trading session without prior intimation to the constituent.

• Internal Netting of Trades :

The Member has the right to allocate securities/credits among the constituent and other constituents of the member in a manner and form that the member may deem fit in cases where the member has a net purchase obligation with the Exchanges but receives short delivery from the Exchanges and the Exchanges are able to deliver to the member only in part after the auction settlement and part is closed out by the Exchanges as per the rules of the Exchanges. In the event of the constituent unable to deliver securities against his/her /their sale obligation, the member shall have the express authority to buy/arrange the securities in question to meet the obligations of the member to the Exchanges or to the member’s other constituents arising out of such failure of the constituent, without any further reference to the constituent. The constituent shall be fully responsible for any losses /charges sustained by the member as a result of the above failure and the same will be debited to the account of the constituent.

• Internal Netting of Trades :

The Member has the right to allocate securities/credits among the constituent and other constituents of the member in a manner and form that the member may deem fit in cases where the member has a net purchase obligation with the Exchanges but receives short delivery from the Exchanges and the Exchanges are able to deliver to the member only in part after the auction settlement and part is closed out by the Exchanges as per the rules of the Exchanges. In the event of the constituent unable to deliver securities against his/her /their sale obligation, the member shall have the express authority to buy/arrange the securities in question to meet the obligations of the member to the Exchanges or to the member’s other constituents arising out of such failure of the constituent, without any further reference to the constituent. The constituent shall be fully responsible for any losses /charges sustained by the member as a result of the above failure and the same will be debited to the account of the constituent.

• Generally, under the following circumstances, the member may opt to close the existing positions of the client and/or is entitled to disallow the client from taking further positions :

(i) If there is debit balance in the ledger account of the client on account of his obligations including the margin/M to M losses etc., beyond the prescribed period.

(ii) If the outstanding debit of the client on account of margin and marked to market losses exceeds the value of collaterals or if the value of collateral falls below the required level.

• Temporary suspension or closing and re-activation of account on constituent’s request :

In the under mentioned circumstances the constituent’s account may be temporarily suspended and may be re-activated on written request from the constituent :-

The member will be entitled to claim from the client delayed payment charges/interest/late payment charges for non-fulfillment of obligations/non-payment of dues by the client when such delay extends beyond the prescribed period of T+2 days in case of cash segment transactions and T+1 day in case of F & O transactions including margins and/or M to M losses. The delayed payment charges will be calculated @18% p. a from the date of delay to the date of payment on the amount covered by the delay. The said period and the rate may be varied by the member under intimation to the client.

(i) Constituent not stationed in town for trading and/or gives written request accordingly.

(ii) Account has been inoperative for a period of 6 months.

(iii) If any discrepancies are found by Surveillance Department.

(iv) On account of non-compliance of any requirement of the Exchanges/SEBI or any other statutory authority.

(v) Any grievance raised by/against the constituent.

• A client may be de-registered in the following events :

(i) On a written request from the client.

(ii) If the client is debarred by SEBI or any other authority.

(iii) If any regulatory action is initiated/taken against the constituent.

• Policy for inactive clients :

Any Client who has not traded in any segment of any of the Exchanges with Mehta Equities Ltd. for the last one year calculated from the beginning of every financial year or such other period as may be decided by Mehta Equities Ltd. at its sole and absolute discretion, then such client would be termed as a Dormant/Inactive Client.

The broking/trading account of such client shall be de-activated/suspended temporarily by Mehta Equities Ltd. If the client wants to activate the broking/trading account then a request for re-activating the broking/trading account should be sent in writing/via e-mail (through e-mail ID registered with Mehta Equities Ltd.) to Mehta Equities Ltd. Such request for re-activation should be accompanied along with such documentary evidence as may be specified by Mehta Equities Ltd. from time to time.