Customer Agreement Form

Non-Mandatory
ADDENDUM TO AGREEMENT BETWEEN EXCHANGE MEMBER AND CUSTOMER
This addendum (the “Addendum”) to the “AGREEMENT BETWEEN EXCHANGE MEMBER AND CUSTOMER” entered into
by and between INTERACTIVE BROKERS (INDIA) PRIVATE LIMITED (“IBI”) and
Mr./Ms/ M/s <Name
thethe
Customer>
( “Customer”)
<Nameofof
Customer>
1.
Margin Trading Facility:
Whereas upon the request of the Customer, IBI has agreed to provide a margin trading facility to the Customer
subject to the following terms and conditions:
a. Definitions. Exclusively for the purposes of subsections 2 (b to i), the following terms shall be defined as
follows:
“Initial Margin” means the minimum amount, calculated as a percentage of the transaction value, to be placed
by the Customer, with IBI, before the actual purchase. IBI will advance the balance amount to meet full
settlement obligations.
“Maintenance Margin” means the minimum amount, calculated as a percentage of the market value of the
securities, calculated with respect to the last trading day’s closing price, to be maintained by the Customer with
IBI.
“Margin Amount” shall mean such amount as may be required to be placed with IBI in such form and in such
manner as may be acceptable to IBI by the Customer or as may be prescribed by SEBI, or the Exchange, or by
IBI for conducting transactions in Shares.
“Margin Trading Facility” or MTF means and refers to the facility pursuant to which part of the transaction
value due to the Stock Exchange, at the time of purchase of Shares, shall be paid by IBI on behalf of the
Customer on Customer’s request, on such terms and conditions as contained in this Agreement.
“Mark to Market Loss” or “MTM Loss” means the difference between the purchase value of the shares and
the marked to market value of these shares.
“Mark to Market Value of shares” or “MTM Value of Shares” means the value of shares calculated with
reference to the previous day’s closing price on the Stock Exchange.
“Share/s” means and refer to the shares / stock / securities eligible for margin trading facility, as specified by
the SEBI from time to time and approved by IBI for the purpose of granting MTF.
“Stock Exchange” means the stock exchange on which the shares have been purchased.
b. Customer Representation. The Customer hereby undertakes to:
i. Place the initial and maintenance margin amounts as IBI may specify to the Customer from time to time,
subject to requirements specified by SEBI.
ii. Authorize retention of the shares with IBI upon the receipt of the same in the pay out from the Stock
Exchange until the amount due in respect of the said transaction including the dues to IBI is paid in full by
the Customer.
iii. To pay to the IBI - brokerage, commission, fees, transaction costs, service tax, stamp duty and other taxes
/ expenses as are prevailing from time to time and as they apply to the Customer’s account, transactions
and to the services that the broker renders to the Customer.
iv. Abide by any revision in any of the terms of this margin agreement as may be agreed between the parties.
c. Customer Warranties. The Customer warrants, represents and assures IBI that:
i. The Customer has the necessary authority to enter into this Agreement and observe and perform the
obligations herein contained.
ii. The Customer shall duly observe and perform the conditions and obligations stated herein.
d. IBI Representation. IBI represents that on entering into this agreement and deposit of Initial Margin by the
Customer, IBI undertakes to settle the obligation towards the Stock Exchange for and on behalf of the
Customer. The Customer hereby agrees and authorizes IBI to make such payment on Customer’s behalf.
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e. Margin Trading Facility.
i. The margin facility shall carry interest at a rate agreed to by IBI and the Customer.
ii. The Customer shall be free to take delivery of the Shares at any time by repaying the amounts that was
paid by IBI to the Stock Exchange towards Shares, and further paying all such sums of money as may be
due towards brokerage, transaction costs and charges, service tax and other costs towards his
transactions. Alternatively, Customer may at any time, but not before the delivery of the Shares has been
actually received by IBI, choose to sell the Shares on the Stock Exchange by issuing appropriate
instructions to IBI.
iii. Provided however that, the Customer may at his risk as to cost and consequences, choose to sell the
Shares prior to receipt of confirmation from the Stock Exchange of delivery of securities against his
purchase, and in such situation, the Customer shall be fully responsible to bear the losses / costs arising
due to auctions / closeout by the Stock Exchange, in the event the delivery against purchase fails to
materialize.
iv. Where the Shares are sold as provided above, IBI will effect the pay-in of Shares to the Stock Exchange in
accordance with the Stock Exchange requirements. Upon receipt of sale proceeds from the Stock
Exchange towards the sale of Shares, IBI shall, after deducting therefrom brokerage, fees, charges, levies,
taxes, duties and other costs, charges and expenses, and further deducting amounts due to it from the
Customer on account of moneys paid by IBI on his behalf to the Stock Exchange at the time of purchase of
Shares, effect the net payment to the Customer.
v. IBI may, at its sole and absolute discretion, revise the limit of initial and/or maintenance margin amount
from time to time. Changes to limit of initial and/or maintenance margin amount are effective immediately
upon either of: posting on the IBI website or email or other written notice to Customer. The Customer
agrees and undertakes to abide by such revision, and where there is an upward revision of such margin
amount, the Customer agrees to make up the shortfall within such time as IBI may permit, failing which the
Customer shall be deemed to be in breach of this Agreement.
vi. The MTF shall be provided only in respect of such Shares as may be decided by IBI from time to time.
vii. The Customer may furnish further Margin Amount from time to time for availing a higher MTF limit.
f. Monitoring Customer’s Positions.
i. IBI shall monitor (electronically or otherwise) and review on a continuous basis the Customer’s positions
with regard to the Margin Trading Facility.
ii. IBI shall make a ‘margin call’ requiring the Customer to place such Margin Amount as may be specified by
IBI with a view to make up for the MTM Loss, if any, in accordance with SEBI requirements. For the
avoidance of doubt, IBI shall be deemed to have made a ‘margin call’ at the moment it displays Customer’s
margin requirements on the IB Trader Workstation.
iii. On receipt of ‘margin call’ intimation from IBI, the Customer shall make good such deficiency by placing
the further Margin Amount, within such time as is specified by SEBI, failing which the Customer shall be
deemed to be in breach of this Agreement.
iv. Notwithstanding what is stated above, IBI may immediately sell the Shares, in the circumstances specified
by SEBI and for this purpose, the Customer does hereby expressly authorize such sale, and thereafter, the
sale proceeds shall be treated in the manner specified above. IBI may, in its sole discretion, determine
which Shares is/are to be sold, and / or which contract(s) is/are to be closed.
v. The Customer agrees and understands that IBI shall have full freedom and authority to vary, modify, revise
the initial and maintenance margin amount, minimum transaction amount from time to time, subject to the
SEBI requirements in this respect, and Customer agrees to abide by such variation, modification or
revision.
g. Pledge of Securities.
Notwithstanding anything contained in this Agreement, the Customer hereby pledges and shall have
deemed to have pledged forthwith the Shares held in any form, at the time when received by IBI, as
security for repayment and settlement of amounts due to IBI from the Customer under the Margin Trading
Facility along with interest and other amounts payable thereunder. The Customer hereby records that the
share certificates account statements or any other documents evidencing the right, title and interest of the
Customer as the holder of the Securities shall remain deposited and shall be deemed to have been
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deposited by the Customer as having been deposited being marketable securities, for repayment of the
amounts due under the Margin Trading Facility and this instrument accordingly shall be deemed to be
connected with the mortgage of the marketable securities / Shares as contemplated by Section 24 of the
Bombay Stamp Act, 1958/Section 23A of the Indian Stamp Act, 1899 or the corresponding/relevant
provisions of the Stamp Act as in force in the relevant state in the territory of India.
h. Breach of this Agreement. In the event of Customer committing any breach of any terms or condition of this
Agreement, IBI shall be entitled to terminate this Agreement forthwith. However, IBI at its option may elect to
give notice to the Customer of such duration, and extended from time to time, if so decided by IBI, requiring the
Customer to cure the breach.
i. Termination & Expiry.
i. This Agreement shall stand terminated forthwith, as provided herein, or on the Customer failing to cure the
breach within the time period as provided in the notice given thereunder.
ii. In the event of termination / determination of this Agreement, the Customer shall forthwith settle any
amount due to IBI. IBI shall be entitled to immediately adjust the Margin Amount against the amount due
from the Customer, and the Customer hereby authorizes IBI to make such adjustment.
iii. After such adjustment, if any further amount is due from the Customer to IBI, the Customer shall settle the
same forthwith. Upon full settlement of all the dues of the Customer to IBI, IBI shall release the balance
amount to the Customer.
iv. In the event of failure of the Customer to immediately settle the dues, IBI shall be entitled to enforce its
rights and shall be entitled to sell off Shares, and adjust/apply the net sale proceeds thereof in recovery of
its dues.
2. IBI Additional Terms & Conditions.
i. The Customer acknowledges that IBI normally calculates initial and maintenance margin
requirements on a real-time basis. IBI will liquidate positions on a real-time basis if there is a
maintenance margin deficiency.
ii. Margin trading is highly risky and may result in a loss of funds greater than Customer has deposited in the
account. Customer has read the “Disclosure of Risks of Margin Trading” provided separately by IBI.
iii. Margin transactions are subject to initial and maintenance margin requirements of exchanges, clearing
houses and regulators and also to any additional margin requirement of IBI, which may be greater ("Margin
Requirements"). IBI MAY MODIFY MARGIN REQUIREMENTS FOR ANY OR ALL CUSTOMERS FOR
ANY OPEN OR NEW POSITIONS AT ANY TIME, IN IBI'S SOLE DISCRETION. Customer shall monitor
their account so that at all times the account contains sufficient equity to meet Margin Requirements. IBI
may reject any order if the account has insufficient equity to meet Margin Requirements, and may delay
processing any order while determining margin status. Customer shall maintain, without notice or demand,
sufficient equity at all times to continuously meet Margin Requirements. Formulas for calculating Margin
Requirements on the IBI website are indicative only and may not reflect actual Margin Requirements.
Customers must at all times satisfy whatever Margin Requirement is calculated by IBI.
iv. IBI does not have to notify Customer of any failure to meet Margin Requirements prior to IBI
exercising its rights under this Agreement. Customer acknowledges that IBI generally will not
issue margin calls per se (see Section 2 (f) ii of Part 2 above); generally will not credit Customer's
account to meet intraday or overnight margin deficiencies; and is authorized to liquidate account
positions in order to satisfy Margin Requirements without prior notice.
v. IF AT ANY TIME CUSTOMER'S ACCOUNT HAS INSUFFICIENT EQUITY TO MEET MARGIN
REQUIREMENTS OR IS IN DEFICIT, IBI HAS THE RIGHT, IN ITS SOLE DISCRETION, BUT NOT THE
OBLIGATION, TO LIQUIDATE ALL OR ANY PART OF CUSTOMER'S POSITIONS IN ANY OF
CUSTOMER'S IBI ACCOUNTS AT ANY TIME AND IN ANY MANNER AND THROUGH ANY MARKET
OR DEALER, WITHOUT PRIOR NOTICE OR MARGIN CALL TO CUSTOMER. CUSTOMER SHALL BE
LIABLE AND WILL PROMPTLY PAY IBI FOR ANY DEFICIENCIES IN CUSTOMER'S ACCOUNT THAT
ARISE FROM SUCH LIQUIDATION OR REMAIN AFTER SUCH LIQUIDATION. IBI HAS NO LIABILITY
FOR ANY LOSS SUSTAINED BY CUSTOMER IN CONNECTION WITH SUCH LIQUIDATIONS (OR IF
THE IBI SYSTEM DELAYS EFFECTING, OR DOES NOT EFFECT, SUCH LIQUIDATIONS) EVEN IF
CUSTOMER RE-ESTABLISHES ITS POSITION AT A WORSE PRICE.
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vi. IBI may allow Customer to pre-request the order of liquidation in event of a margin deficiency, but such
requests are not binding on IBI and IBI retains sole discretion to determine the assets to be liquidated and
the order/manner of liquidation. IBI may liquidate through any market or dealer, and IBI or its affiliates may
take the other side of the transactions consistent with applicable law. If IBI liquidates any/all positions in
Customer's account, such liquidation shall establish Customer's gain/loss and remaining indebtedness to
IBI, if any. Customer shall reimburse and hold IBI harmless for all actions, omissions, costs, fees
(including, but not limited to, attorney's fees), or liabilities associated with any such transaction undertaken
by IBI. If IBI executes an order for which Customer did not have sufficient equity, IBI has the right, without
notice, to liquidate the trade and Customer shall be responsible for any resulting loss and shall not be
entitled to any resulting profit.
vii. If IBI does not, for any reason, liquidate under-margined positions, and issues a margin call, Customer
must satisfy such call immediately by depositing funds. Customer acknowledges that even if a call is
issued, IBI still may liquidate positions at any time.
viii. Customer acknowledges that IBI also has the right to liquidate all or part of Customer's positions without
prior notice: (i) if any dispute arises concerning any Customer trade, (ii) upon any “Default” as described in
Section 7 below, or (iii) whenever IBI deems liquidation necessary or advisable for IBI's protection.
ix. The instruction issued by authorised representatives of the Customer shall be binding on Customer in
accordance with the letter authorising the said representative to deal on behalf of the Customer.
x. The Customer shall deposit with IBI monies, securities or other property which may be required to open / or
maintain Customer’s account.
xi. Regarding margin with banks / institutions, the Customer agrees that any securities placed by him/her/it as
margin, may, in turn, be placed as margin by the IBI with the exchange or banks or such other institution as
the IBI may deem fit. The Customer authorises the IBI to do all such acts, deeds and things as may be
necessary and expedient for placing such securities with exchange/banks/institutions as margin.
xii. For delayed payment, notwithstanding anything contained in these presents, any amounts which are
overdue from the Customer or a IBI of Customer’s family/group towards trading either in cash or derivatives
segments or on accounts of any other reason to the IBI or to any of the IBI’s group company, may be
charge delayed payment charges at the rate of 1.5% per month or part thereof or such other rate as may
be determined by the IBI. The Customer hereby authorises the IBI to directly debit the same to the account
of the Customer at the end of each month/such other interval as may be decided by the IBI. The Customer
also agrees that any amount overdue from him/her/it (including the interest on delayed payment) shall be
offset against the dues owed by the IBI to the Customer.
xiii. Regarding authorisation for debits, Customer agrees that the IBI can debit his ledger for the additional
services as required by the Customer and provided by the member or if the IBI incurs any additional
expenses on behalf of the Customer.
xiv. The Customer is liable to pay the initial margins up-front on or before creating a position in any Cash or
Derivatives contract. IBI or the said Exchange shall decide upon such margin from time to time.
Furthermore the Customer is liable to pay daily margins depending on whether the price of the Cash and
Derivatives contract moves for or against the position undertaken. The Customer hereby agrees to make
all margin payments as demanded by IBI can square up all or any outstanding position of sale and/or
purchase without any notice to the Customer. The Customer also authorities IBI to withhold transfer of
shares to his account /family accounts/relative accounts/group accounts in case he/it fails to furnish margin
cheques as demanded by IBI and hold the same towards margin requirements.
xv. The Customer agrees that he shall not, acting alone or concert with others, directly or indirectly, hold and
control excess number of permitted futures contracts and shares as fixed from time to time.
xvi. The Customers agrees that he shall not exercise a long or short position where, acting alone or in concert
with others, directly or indirectly that it shall have exercised in excess of the number of permitted future
contracts and shares as fixed from time to time by the said Exchanges.
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xvii. The Customers agrees that all monies, securities or other property that may be held by IBI on the
Customer’s account shall be held subject to a general lien for the discharge of the Customer’s obligation to
the IBI under this agreement.
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xviii. IBI and/or its agents will not be liable for losses caused directly or indirectly by Government restriction,
Exchanges or market rulings, acts of God, commotion, insurrection, embargo, industrial dispute,
suspension of trading, computer, communication, telephone or system failure, war, earthquake, flood,
accident, power failure, equipment or software malfunction, strikes or any other condition.
xix. The Customer agrees that in the event of IBI or any employee or official of IBI, providing any information,
recommendation or advice to the Customer, the Customer may act upon the same at the sole risk and
cost, of the Customer and the IBI shall not be liable or responsible for the same. The Customer assumes
full responsibility with respect to his investment decision and transactions. IBI, its officers, directors,
partners, employees, agents and affiliates will have no liability with respect to any investment decision or
transaction of the Customer.
xx. The Customer agrees to furnish such details as regards financial position assets, liabilities etc. as and
when required to do so by IBI.
xxi. The Customer hereby agrees to ensure that before selling any shares, he has the same in hand. Any loss
arising of auction /close/out on account of shares not cleared in the member account will be borne by the
Customer. The Customer also agrees to bear any loss arising out of auction due to incomplete instructions,
illegal instructions, unclear instructions and instructions not received on time.
xxii. IBI will not be liable to the Customer for loss arising due to fire, theft or loss due to human error in case of
dematerialised shares, or any other unforeseen circumstances if the shares are in the custody of IBI
beyond the stipulated time. In case of dematerialised shares, IBI will be entitled to recover the custody
charges from the Customer, if the deliveries are not transferred out of IBI’s depository account within the
stipulated time. The member will not be responsible in case pay-in is not done in the proper settlement.
xxiii. The Customer agrees that he/she/it will not act as sub-broker without prior written pension of the IBI and
without obtaining certificate of registration from Securities & Exchange Board of India (SEBI)
xxiv. The Customer agrees to accept confirmation/modification/cancellation of an order for the sale or purchase
of any securities through oral communication via telephone or otherwise.
xxv. The Customer authorizes IBI to debit his trading account by demat charges (if any) payable to Interactive
Brokers (India) Pvt. Ltd.
xxvi. IBI reserve its right to recover the DP Charges due from the Customer having Demat Account with IBI from
the amount payable to Customer in any segment of any exchange.
xxvii. IBI reserve the right to transfer the funds of respective Customers lying in the Customers A/c. of one
exchange to the Customer A/c of other exchange to satisfy the debit balance of the respective Customers
in that exchange.
xxviii. This agreement can be altered, amended and /or modified by the parties mutually in writing without
derogating from the contents of this agreement. Provided however, if the rights and obligations of the
parties hereto are altered by virtue of change in rules and regulations of SEBI or bye-laws, rules and
regulations of the relevant stock exchange, such changes shall be deemed to have been incorporated
herein in modification of the rights and obligations of the parties mentioned in this agreement
3.
Running Account Authorisation
i.
ii.
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The Customer requests IBI to maintain running balance in his account & retain the credit balance in any of
his account and to use the unused funds towards his margin / pay-in / other future obligation(s) at any
segment(s) of any or all the Exchange(s)/Clearing corporation unless the Customer instructs IBI otherwise.
The Customer requests IBI to retain securities with it for his margin pay-in other future obligation(s) at any
segment(s) of any or all the Exchange(s)/Clearing corporation, unless the Customer instructs IBI to
transfer the same to his account.
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iii.
iv.
The Customer requests IBI to settle his fund and securities account “Once in every calendar Quarter” or
“Once in a calendar Month” or such other higher period as allowed by SEBI/Stock Exchange time to time
except the funds given towards collaterals/margin in form of Bank Guarantee and/or Fixed Deposit
Receipt.
In case the Customer has an outstanding obligation on the settlement date, IBI may retain the requisite
securities/funds towards such obligations and may also retain the funds expected to be required to meet
margin obligations for next 5 trading days, calculated in the manner specified by the exchanges.
25X ?____________________
v.
4.
The Customer confirms to IBI that he will bring to IBI’s notice any dispute arising from the statement of
account or settlement so made in writing within 7 working days from the date of receipt of funds/securities
or statement of account or statement related to it, as the case may be at IBI’s registered office. After that
the Customer shall have no right to dispute the transaction, funds and/or securities ever and agree that IBI
shall not be liable for any incidental loss/damage caused due to retention of funds and/or securities.
No Investment, Tax or Trading Advice: IBI representatives are not authorized to provide investment, tax or trading
advice or to solicit orders. Nothing on IBI's website is a recommendation or solicitation to buy or sell securities,
futures or other investments.
5.
Proprietary Trading - Display of Customer Orders: Subject to all laws and regulations, Customer agrees and
understands that IBI may execute proprietary trades of itself and its affiliates, though IBI may simultaneously hold
unexecuted Customer orders for the same products at the same price.
6.
Customer Qualification: Customer warrants that their account application is true and complete; will promptly notify
IBI of any information changes; and authorizes IBI to make any inquiry to verify information.
a. Natural Persons: Customer warrants that Customer is over 18; is under no legal incapacity; and has
sufficient knowledge and experience to understand the nature and risks of the products to be traded.
b. Organizations: Customer and its authorized representatives warrant that Customer: (i) is authorized under
its governing document(s) and in the jurisdictions in which it is organized and/or regulated to enter this
Agreement and trade (including on margin if applicable); (ii) is under no legal incapacity; and (iii) that
persons identified to enter orders have proper authority and have sufficient knowledge and experience to
understand the nature and risks of the products to be traded.
7.
Security Interest: To the fullest extent allowed under applicable law, all Customer assets of any kind held by or on
behalf of IBI, are hereby pledged to IBI and are subject to a perfected first priority lien and security interest in IBI's
favor to secure performance of obligations and liabilities of the Customer to IBI arising under this Agreement.
IBI may initiate compliance action in case of any default in payments of any dues receivable by IBI from the
Customer. IBI shall have a full and complete lien on cash and securities balances in the trading account of the
Customer and may sell such securities lying with IBI in case of any default in payments of any dues receivable by
IBI from the Customer. Any loss arising out of squaring off or sale of securities will be to Customer’s account and IBI
will not be liable for any cost or damage or any consequences thereof.
8.
Event of Default: A "Default" occurs automatically, without notice upon: (i) Customer breach/repudiation of any
agreement with IBI; (ii) Customer failure to provide assurance satisfactory to IBI of performance of an obligation,
after request from IBI in IBI’s sole discretion; (iii) proceedings by/against Customer under any bankruptcy,
insolvency, or similar law; (iv) assignment for the benefit of Customer’s creditors; (v) appointment of a receiver,
trustee, liquidator or similar officer for Customer or Customer property; (vi) Customer representations being untrue
or misleading when made or later becoming untrue; (vii) legal incompetence of Customer; (viii) proceeding to
suspend Customer business or license by any regulator or organization; (ix) IBI having reason to believe that any of
the foregoing is likely to occur imminently.
Customer unconditionally agrees that, upon a Default, IBI may terminate any or all IBI's obligations to Customer and
IBI shall have the right in its discretion, but not the obligation, without prior notice, to liquidate all or any part of
Customer's positions in any IBI account, individual or joint, at any time and any manner and through any market or
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dealer. Customer shall reimburse and hold IBI harmless for all actions, omissions, costs, fees (including, but not
limited to, attorney's fees), or liabilities associated with any Customer Default or any transaction undertaken by IBI
upon Default.
9.
Suspicious Activity: If IBI in its sole discretion believes that a Customer account has been involved in any fraud or
crime or violation of applicable law, or has been accessed unlawfully, or is otherwise involved in any suspicious
activity (whether victim or perpetrator or otherwise), IBI may suspend or freeze the Customer’s account or any
privileges of the Customer’s account, may freeze or liquidate the Customer’s funds or assets, or may utilize any of
the remedies in this Agreement for a “Default”.
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10.
Commissions and Fees, Interest Charges, Funds: Commissions and fees are as specified on the IBI website unless
otherwise agreed in writing by an officer of IBI. Customer acknowledges that IBI deducts commissions/fees from
Customer accounts, which will reduce account equity. Positions will be liquidated if commissions or other charges
cause a margin deficiency. Changes to commissions/fees are effective immediately upon either of: posting on the
IBI website or email or other written notice to Customer. IBI shall pay credit interest to and charge debit interest
from Customer at interest rates and terms on the IBI website. Customer funds will not be disbursed until after
transactions are settled. Terms and conditions for deposit and withdrawal of funds (including holding periods) from
the Customer’s accounts are as specified on the IBI website.
11.
Account Deficits: If a cash account incurs a deficit, margin interest rates will apply until the balance is repaid, and
IBI has the right, but not the obligation, to treat the account as a margin account. Customer agrees to pay
reasonable costs of collection for any unpaid Customer deficit, including attorneys' and collection agent fees.
12.
Knowledge of Securities, Warrants and Options; Corporate Actions: Customer acknowledges Customer’s
responsibility for knowing the terms of any securities, options, warrants or other products in Customer’s account,
including upcoming corporate actions (e.g., tender offers, reorganizations, stock splits, etc.). IBI has no obligation
to notify Customer of deadlines or required actions or dates of meetings, nor is IBI obligated to take any action
without specific written instructions sent by Customer to IBI electronically through the IBI website.
13.
Miscellaneous:
a. This Agreement is governed by the laws of India, without giving effect to conflict of laws provisions. Courts
of Mumbai have exclusive jurisdiction over disputes relating to this Agreement, except when arbitration is
provided. IN ALL JUDICIAL ACTIONS, ARBITRATIONS, OR DISPUTE RESOLUTION METHODS, THE
PARTIES WAIVE ANY RIGHT TO PUNITIVE DAMAGES.
b. Customer agrees to the provision of this Agreement in English and represents that Customer understands
its terms and conditions. This Agreement contains the entire agreement between the parties, who have
made no other representations or warranties. If any provision of this Agreement is unenforceable, it shall
not invalidate other provisions. Failure of IBI to enforce any term or condition of this Agreement is not a
waiver of the term/condition.
c. Customer consents to recording of all telephone conversations. Such recordings may be relied upon by IBI
in order to resolve disputes between the parties. Customer acknowledges the IBG Privacy Statement as
available on the IBI website and consents to collection/use of Customer information as described therein.
d. Customer may not assign or transfer any rights or obligations hereunder without the prior written consent
of IBI. Upon notice to Customer IBI may assign this Agreement to another broker-dealer or futures
commission merchant. This Agreement shall inure to the benefit of IBI's successors and assigns. IBI may
terminate this Agreement or its services to Customer at any time. Customer may close its account upon
notice to IBI electronically through the IBI website, but only after all positions are closed and all other
requirements specified on the IBI website regarding account closure are satisfied.
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e. Insider trading- Customer agrees not to indulge in insider trading and also agrees to abide by the
Securities Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992.
f.
The Customer agrees not to act as unregistered intermediary and also agrees not to misuse the trading
platform of the Exchange in violation of Rules and regulations of SEBI or Bye-laws, Rules and Regulations
of the relevant stock Exchange.
g.
The Customer hereby indemnifies and authorizes IBI to recover from his account any fines, penalties etc
levied on IBI by the Exchange on account of violation of the Rules and regulations of SEBI or Bye-laws,
Rules and Regulations of the relevant stock Exchange.
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14.
Mandatory Arbitration:
Customer agrees that any controversy, dispute, claim, or grievance between IBI, any IBI affiliate or any of their
shareholders, officers, directors employees, associates, or agents, on the one hand, and Customer or, if applicable,
Customer's shareholders, officers, directors employees, associates, or agents on the other hand, arising out of, or
relating to, this Agreement, or any account(s) established hereunder in which securities may be traded; any
transactions therein; any transactions between IBI and Customer; any provision of the this Agreement between IBI
and Customer; or any breach of such transactions or agreements, shall be resolved by arbitration, in accordance
with the rules then prevailing at the National Stock Exchange.
If Customer is the claimant-in-interest and has not selected an arbitration forum within ten days of providing notice
of Customer’s intent to arbitrate, IBI shall select the forum. The award of the arbitrators, or a majority of them, shall
be final, and judgment upon the award rendered may be entered in any court, state or federal, having jurisdiction.
15.
Notice and Communications:
Any notice or other communication to be given by one party to the other under or in connection with this Agreement
shall be in writing and shall be deemed duly served if delivered personally or sent by confirmed facsimile
transmission or by prepaid registered post or email to the addressee at the address / number (if any), of that party
set opposite its name below:
16.
(a)
Notices / Communications to be sent to Interactive Brokers (India) Private Limited:
Address: A-605, Dynasty Business Park, 151, Andheri Kurla Road, Andheri (East), Mumbai 400059
Tel: 022 40261017;
Fax: 022 40261019;
E-mail: [email protected]
(b)
Notices / Communications to be sent to the Customer shall be sent to the addresses/numbers provided by
the Customer in the IBI Customer Account Application. The Customer agrees that IBI may post notices,
bulletins, and other communications on TWS or IBI’s website.
Waiver. Subject to SEBI requirements, any of the terms and conditions of this Agreement may be waived at any
time by an authorized officer of IBI, but no such waiver shall affect or impair the right of IBI to require observance
and performance of any other term or condition hereof and no waiver hereunder shall be considered valid unless
made in writing and signed by an authorized officer of IBI and no such waiver, or any failure or delay on the part of
IBI to exercise any right, power or privilege hereunder shall be deemed a waiver of any subsequent breach of
default nor shall any single or partial exercise of any such right, power or privilege preclude any further exercise
thereof or the exercise of any other right, power or privilege.
Internet Clauses
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1.
Responsibility for Customer Orders/Trades: Customer acknowledges that IBI does not know whether someone
entering orders with Customer's user name/password is Customer. Unless IBI is notified and agrees, Customer will
not allow anyone to access Customer's account. Customer is responsible for the confidentiality and use of
Customer's user name/password and agrees to report any theft/loss of such user name/password, or any
unauthorized access to Customer's account, immediately by telephone or electronically through the IBI website.
Customer remains responsible for all transactions entered using Customer's user name/password.
2.
Order Routing: Unless otherwise directed, IBI will select the market/dealer to which to route Customer's orders.
For products traded at multiple markets, IBI may provide “Smart Routing”, which seeks the best market for each
order through a computerized algorithm. Customer should choose Smart Routing if available. If Customer directs
orders to a particular market, Customer assumes responsibility for knowing and trading in accordance with the rules
and policies of that market (e.g., trading hours, order types, etc.). IBI may not have access to every market/dealer;
other orders may trade ahead; market centers may not honor posted prices or may re-route orders for manual
handling; or market rules, decisions or system failures may prevent/delay execution of Customer's orders or cause
orders not to receive the best price.
28X ?____________________
3.
Order Cancellation/Modification: Customer acknowledges that it may not be possible to cancel/modify an order and
that Customer is responsible for executions notwithstanding a cancel/modify request.
4.
Order Execution: IBI shall execute Customer orders as agent, unless otherwise confirmed. IBI can execute
Customer orders as principal. IBI may use another broker, or an affiliate, to execute orders, and they have the
benefit of all IBI's rights hereunder. IBI may decline any Customer order, or terminate Customer's use of IBI’s
services at any time in IBI's discretion. All transactions are subject to the byelaws, rules and policies of relevant
exchanges and clearing houses, and applicable laws and regulations. IBI IS NOT LIABLE FOR ANY ACTION OR
DECISION OF ANY EXCHANGE, MARKET, DEALER, CLEARINGHOUSE OR REGULATOR. Any applicable
exchange may cancel a trade suo moto without giving any reason thereof. In the event of such cancellation, IBI
shall be entitled to cancel the relative contract(s) with Customer.
5.
Consent To Accept Electronic Records And Communications: IBI provides electronic trade confirmations, account
statements, tax information and other Customer records and communications (collectively, "Records and
Communications") in electronic form. Electronic Records and Communications may be sent to Customer's Trader
Workstation or to Customer's e-mail address, or for security purposes may be posted on the IBI website, with a
notification sent to customer to login and retrieve the Communication. By entering into this Agreement, Customer
consents to the receipt of electronic Records and Communications. Such consent will apply on an ongoing basis
and for every tax year unless withdrawn by Customer. Customer may withdraw such consent at any time by
providing electronic notice to IBI through the IBI website. If Customer withdraws such consent, IBI will provide
required tax documents in paper form upon request by telephone or via the IBI website. However, IBI reserves the
right to require Customer to close Customer's account.
In order to trade using the IB Trader Workstation ("TWS"), and to receive Records and Communications through the
TWS, there are certain system hardware and software requirements, which are described on the IB Website at
www.interactivebrokers.com. Since these requirements may change, Customer must periodically refer to the IBI
website for current system requirements. To receive electronic mail from IBI, Customer is responsible for
maintaining a valid Internet e-mail address and software allowing customer to read, send and receive e-mail.
Customer must notify IBI immediately of a change in Customer's e-mail address by using those procedures to
change a Customer e-mail address that may be available on the IBI website.
6.
Quotes, Market Information, Research and Internet Links: Quotes, news, research and information accessible
through IBI (including through links to outside websites) ("Information") may be prepared by independent providers
(“Providers”). The Information is the property of IBI, the Providers or their licensors and is protected by law.
Customer agrees not to reproduce, distribute, sell or commercially exploit the Information in any manner without
written consent of IBI or the Providers. IBI reserves the right to terminate access to the Information. None of the
Information constitutes a recommendation by IBI or a solicitation to buy or sell. Neither IBI nor the Providers
Page 27
guarantee accuracy, timeliness, or completeness of the Information, and Customer should consult an advisor before
making investment decisions. RELIANCE ON QUOTES, DATA OR OTHER INFORMATION IS AT CUSTOMER'S
OWN RISK. IN NO EVENT WILL IBI OR THE PROVIDERS BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL,
SPECIAL OR INDIRECT DAMAGES ARISING FROM USE OF THE INFORMATION. THERE IS NO WARRANTY
OF ANY KIND, EXPRESS OR IMPLIED, REGARDING THE INFORMATION, INCLUDING WARRANTY OF
MERCHANTIBILITY, WARRANTY OF FITNESS FOR A PARTICULAR USE, OR WARRANTY OF NONINFRINGEMENT.
7.
License to Use IBI Software: IBI grants Customer a non-exclusive, non-transferable license to use IBI Software
solely as provided herein. Title to IBI Software and updates shall remain the sole property of IBI and its affiliates,
including all patents, copyrights and trademarks. Customer shall not sell, exchange, or transfer the IBI Software to
others. Customer shall not copy, modify, translate, decompile, reverse engineer, disassemble or reduce to a human
readable form, or adapt, the IBI Software or use it to create a derivative work, unless authorized in writing by an
officer of IBI. IBI is entitled to immediate injunctive relief for threatened breaches of these undertakings.
8.
LIMITATION OF LIABILITY AND LIQUIDATED DAMAGES PROVISION: CUSTOMER ACCEPTS THE IBI
SYSTEM "AS IS", AND WITHOUT WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED
TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE, PURPOSE
OR APPLICATION; TIMELINESS; FREEDOM FROM INTERRUPTION; OR ANY IMPLIED WARRANTIES
ARISING FROM TRADE USAGE, COURSE OF DEALING OR COURSE OF PERFORMANCE. UNDER NO
CIRCUMSTANCES SHALL IBI OR ITS AFFILIATES BE LIABLE FOR ANY PUNITIVE, INDIRECT, INCIDENTAL,
SPECIAL OR CONSEQUENTIAL LOSS OR DAMAGES, INCLUDING LOSS OF BUSINESS, PROFITS OR
GOODWILL. TO THE FULLEST EXTENT ALLOWED UNDER APPLICABLE LAW, IBI AND ITS AFFILIATES
SHALL NOT BE LIABLE TO CUSTOMER BY REASON OF DELAYS OR INTERRUPTIONS OF SERVICE OR
TRANSMISSIONS, OR FAILURES OF PERFORMANCE OF THE IBI SYSTEM, REGARDLESS OF CAUSE,
INCLUDING, BUT NOT LIMITED TO, THOSE CAUSED BY HARDWARE OR SOFTWARE MALFUNCTION;
GOVERNMENTAL, EXCHANGE OR OTHER REGULATORY ACTION; ACTS OF GOD; WAR, TERRORISM, OR
IBI'S INTENTIONAL ACTS. CUSTOMER RECOGNIZES THAT THERE MAY BE DELAYS OR INTERRUPTIONS
IN THE USE OF THE IBI SYSTEM, INCLUDING, FOR EXAMPLE, THOSE CAUSED INTENTIONALLY BY IBI
FOR PURPOSES OF SERVICING THE IBI SYSTEM. IN NO EVENT SHALL IBI'S LIABILITY (INCLUDING ITS
AFFILIATES), REGARDLESS OF THE FORM OF ACTION AND DAMAGES SUFFERED BY CUSTOMER,
EXCEED THE HIGHEST TOTAL MONTHLY COMMISSIONS PAID BY CUSTOMER TO IBI OVER THE 6
MONTHS PRIOR TO ANY INCIDENT.
9.
Customer Must Maintain Alternative Trading Arrangements: Internet trading and computer-based systems such as
those used by IBI are inherently vulnerable to disruption, delay or failure. CUSTOMER MUST MAINTAIN
ALTERNATIVE TRADING ARRANGEMENTS IN ADDITION TO CUSTOMER'S IBI ACCOUNT FOR EXECUTION
OF CUSTOMER'S ORDERS IN THE EVENT THAT THE IBI SYSTEM IS UNAVAILABLE. By signing this
Agreement, Customer agrees to maintains alternative trading arrangements.
17.
Digitally Signed Contract Notes:
29X ?____________________
The Customer hereby agrees and permits IBI to provide digitally signed contract notes and account statements
through internet (web-based) and agrees as follows:
a. The Customer shall access the contract notes/ trade confirmations of the trades executed on his/her/their
behalf on the trade date electronically. The Customer understands that it is his/her/their responsibility to review
all confirmations, contract notes, statements, notices and other communications. All information contained
therein shall be binding on the Customer if the Customer does not object, either in writing or via electronic mail
within 24 hours from the date of the execution of the trade. The Customer agrees to maintain a valid/active email account for the electronic delivery of contract notes.
b. Should the Customer experience any difficulty opening a document electronically delivered by IBI, IBI may
make the required delivery by any other electronic means (e-mail, electronic mail attachment or in the form of
an available download from the backoffice website, if any) or in paper based format. Failure to advise IBI of
such difficulty within 24 hours from the date of the execution of the trade shall serve as an affirmation that
Customer was able to receive and open the said document.
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c. The Customer agrees not to receive contract notes in paper form from IBI. Provided however that in any case
when IBI is not able to provide contract notes to Customer through electronic medium due to any unforeseen
problems, IBI should ensure that the contract note reaches to the Customer in physical form as per the time
schedule stipulated in the applicable bye-laws, rules and regulations of the Exchange.
d. The Customer shall take all the necessary steps to ensure confidentiality and secrecy of the login name and
password. Unless the Customer lodges a complaint with IBI as to Customer’s inability to access the system, it
would be presumed that contract notes and all other documents have been properly delivered.
e. The Customer agrees that IBI fulfills its legal obligations to deliver to Customer any such document if sent via
electronic delivery. The Customer also agrees that any such document shall be deemed to be duly received by
the Customer even in cases where intimation of out of office/ vacation mail/ such other auto generated reply
have been sent to IBI.
18. Additional IBI Terms and Conditions.
a. Customer agrees to monitor each order until IBI confirms execution or cancellation. Customer acknowledges
that confirmations of executions or cancellations may be delayed or may be erroneous (e.g. due to computer
system issues) or may be cancelled/adjusted by an exchange. Customer is bound by the actual order
execution, if consistent with Customer's order. If IBI confirms execution or cancellation in error and Customer
delays reporting such error, IBI reserves the right to remove the trade from the account or require Customer to
accept the trade, in IBI's discretion. Customer agrees that non receipt of bounce mail notification by IBI shall
amount to delivery of confirmations of executions or cancellations on the designated email address of the
client.
b. Customer agrees to notify IBI immediately by telephone or electronically through the IBI website if: i)
Customer fails to receive an accurate confirmation of an execution or cancellation; ii) Customer receives a
confirmation that is different than Customer's order; iii) Customer receives a confirmation for an order that
Customer did not place; or iv) Customer receives an account statement, confirmation, or other information
reflecting inaccurate orders, trades, balances, positions, margin status, or transaction history. Customer
acknowledges that IBI may adjust Customer's account to correct any error. Customer agrees to promptly
return to IBI any assets erroneously distributed to Customer.
30X ?____________________
IN WITNESS WHEREOF, the parties have each caused this Agreement to be executed and delivered on the date
first set for above.
Interactive Brokers (India) Pvt. Ltd.
Customer
By:
By:
Signature:
Signature:
Title:
Title: Self
Witness:
Authorized Signatory
31X ?____________________
Witness: W1?____________________
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