Client Application Form
To
Religare Securities Limited
D3, P3B, District Centre, Saket
New Delhi – 110017
Dear Sir,
Subject: Application for availing Margin Plus Facility
I/We are registered/registering with you (“the Company”) as a ‘Client’ for availing your services and have/are
executing various documents such as Agreement(s), Instructions, Memoranda etc (hereinafter collectively
“Member-Client Documents”) which establish the relationship between us and determine the inter-se rights
and liabilities between you and me/us. I/We desire to avail the Margin Plus Facility[“Facility”] from you. I/We
agree that the Facility availed by me will always be subject to Client-Member Documents executed by me/us,
which terms and conditions shall always be read as part and parcel of this application and its terms and
conditions as specified hereunder.
I/We understand and agree that that salient features of the Facility are as under :1.
Under this Facility, which may be permitted only for select Securities, Client can place a buy/sell order.
(“Primary Order”), Primary Order has to be a market rate order. As per procedure of this Facility, the Client
has to simultaneously provide a Margin Plus Stop Loss Order. Margin Plus Stop Loss Order is an order
which is created by the trading software to limit the potential loss to within such parameters as are
specified by the Client. For this Client has to specify a “Limit Price” ( which is the price upto which the
Client is ready to bear the risk of Loss) and “Stop Loss Trigger Price”. Stop Loss Trigger Price, is the price
at which the Margin Plus Stop Loss Order is triggered to become an active order in the trading system of
the stock exchange. Stop Loss Trigger Price has to be specified between the Primary Order price and
Limit Price. Margin Plus Stop Loss Order obviously is for the same quantity as the Primary Order.
2.
Company may specify a minimum percentage or amount difference to be maintained between (i) the
market price of Primary Order and Limit Price of Margin Plus Stop Loss Order; (ii) Market Price of Primary
Order and/or Trigger Price of Margin Plus Stop Loss and/or Limit Price of Margin Plus Stop Loss Order;
depending on volatility of the Securities, market conditions and other factors.
3.
The trading software will calculate the margin required for the Primary Order based on regular margining
procedures, if this margin is freely available, the Primary Order will be sent to exchange trading platform.
Simultaneously the Margin Plus Stop Loss Order shall also be released into the trading system of the
exchange. Client has to ensure that these orders are meeting all exchange trading parameters like tick
price etc. Upon execution, system will recalculate margin for particular set of Primary Order and its Margin
Plus Stop Loss Order. The margin required will atleast be the difference between the market price at
which the Primary Order got traded and limit price of the Margin Plus Stop Loss Order. Further, any one or
combination of maintenance margin, additional margin, volatility margin and Security specific margin may
also be required to be pre-available with the Company. The trading software shall block appropriate
amount required on the particular set of Primary and Margin Plus Stop Loss Order and release any extra
margin which may have been initially blocked for the initial release of each set of Primary Order and its
Margin Plus Stop Loss Order.
Signature :
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4.
A Primary Order once placed under the Facility cannot be cancelled or modified. Further, the Margin Plus
Stop Loss Order also cannot be cancelled, but the Stop Loss Trigger Price and Limit Price under the
Margin Plus Stop Loss Order can be modified (modification can be done only before designated time, refer
para 7 below). However, if free available margin with the Company is insufficient, the order modification
request may not get accepted.
5.
If the market price (last traded price) reaches or crosses the “Stop Loss Trigger Price”, the Margin Plus
Stop Loss Order becomes activated, and Margin Plus Stop Loss Order will become active Order on the
stock exchange trading system. Except under exceptional circumstances, the Margin Plus Stop Loss
Order is likely to be executed some where between the Trigger Price and Limit Price. Thus, this Facility
may be able to limit the actual losses within the acceptable limits set by the Client. While there is high
probability of execution of Margin Plus Stop Loss Order, there is no guarantee, and Client may suffer
losses beyond what he/she had accepted as a potential loss.
ILLUSTRATION
A.
‘X’ short sells XYZ’s Security at ` 100 in expectation that the price will fall. However, in the
event that the price rises above his sell price, ‘X’ would like to limit his losses. Suppose the
Client wishes to limit potential losses to ` 15 per Security, in that event Client will input Stop
Loss Trigger Price of ` 110 and a limit price of ` 115 for the Margin Plus Stop Loss Order
under this Facility. Once the market price of XYZ’s Security touches or increases beyond
the Stop Loss Trigger Price i.e. ` 110, the Margin Plus Stop Loss Order is most likely in
normal circumstances to get executed between ` 110 and ` 115.
B.
‘X’ buys XYZ’s Security at ` 100 in expectation that the price will rise. However, in the
event that price falls, ‘X’ would like to limit his losses. Suppose the Client wishes to limit
potential losses to ` 15 per Security, in that event Client will input stop loss trigger price of
` 90 and a limit price of ` 85 for the Margin Plus Stop Loss Order under this Facility. Once
the last traded price touches or falls below ` 90, the Margin Plus Stop Loss Order is most
likely in normal circumstances to get executed between ` 90 and ` 85.
6.
The Facility may at best, only limit losses; to take benefits from the market, Client has the sole
responsibility to monitor his positions throughout the day and take necessary/appropriate actions, which
responsibility cannot be transferred to the Company.
7.
Facility being an intraday Facility, all open positions of Client, not squared off by Client prior to
designated time will be taken control of by trading system. The procedure for square off by Client under
this Facility is that Client has to modify the Margin Plus Stop Loss Order’s Trigger and/or Limit Price so
that it gets executed at his desired level. This designated time shall generally be during the last hour of the
trading hour(s) on the exchange. After taking over control, the trading system may attempt for automatic
square off at market rates, while doing so, first the system shall cancel unexecuted orders and then put
the orders at market rates, to square off the executed Primary Order. The time upon which this square off
attempt may be started by the trading system shall be the “Auto Square Off Time” [exact times shall be
available on website]. However there is no surety that square off by trading system will be successful
partially/fully. This can happen due to various factors such as market conditions, trading freeze in
Security or connectivity related issues etc. Therefore Client should not leave square offing off on the
trading system but square off their own trades by their personal efforts.
Signature :
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8.
The Company may impose additional terms other than those specified herein and/or change the existing
terms of Facilities and/or withdraw the same (or the Facility) for one or more Clients without prior notice
and for this no claim shall lie against the Company. Various parameters including acceptable differences
between limit price and trigger price and margin rates may vary over time and Securities and revisions
shall only be displayed on the website, Clients should check these before using the Facility. The details of
the Facility as amended from time to time are/will be available on website: www.religareonline.com.
9.
This Client should not use this Facility in the Pre-Opening Session of the stock exchanges as the Primary
Order may get executed, without the Margin Plus Stop Loss Order.
DECLARATION
I/We hereby declare that the decision to register/enrol under the Facility and for making all trades thereby is/
shall be entirely mine/ours and I/we have neither been given nor have been in any way influenced by you/your
officers with any financial or other advice regarding the suitability or profitability of availing the Facilities as
stated above or making any trades thereby. I/We may suffer losses on account of square off/non-square
off by the Company within or at the end of the day and I agree to bear such losses without protest or
claim against the Company. I/We further acknowledge that not only for above Facility(s) but for any other
facility or general trading also, in no case any employee/officer/director or agent of the Company is authorized
to give any advice, assurance or handle my/our account in any discretionary manner. I/We agree that in the
event I/we were to seek any advice, assurance or allow handling my/our account in any discretionary manner
by any employee/officer or agent of the Company, the same shall be mine/our personal arrangement and
Company shall be in no way liable for losses etc. which I/we were to suffer as a consequence of such
arrangements.
I/We have read and accepted all terms and conditions specified hereinabove including those at paras 1 to 9,
their sub-paragraphs and the DECLARATION above and agree to be bound by all of them.
Thanking you,
Yours faithfully
Client Name :
Date :
D D M M Y Y
Signature :
Client Code :
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