One must make sure that one is conversant with the change in policies of the trading portals failing which one can find himself embroiled in a controversy with a trading platform.
ICICI direct has also executed some changes in its policies and it makes sense to keep abreast with the latest changes. The SEBI circular related to same is as appended below:
INTIMATION REGARDING CHANGES IN POA AS PER SEBI CIRCULAR CIR/MRD/DMS/13/2010 DATED APRIL 23, 2010
Authorities given to ICICI Securities rights under the POA have been modified/cancelled such that: The POA signed by you is applicable only for the specific accounts linked to your trading account and cannot be automatically extended to your other demat / bank accounts that are likely to linked to your trading account in future Notice period of 30 days is not required for cancellation/revocation of the POA. I-Sec is required to credit your Bank Account and the Demat Account(s) with monies/ securities received by I-Sec erroneously on your behalf. I-Sec cannot appoint or remove any agent or agents or substitute or substitutes with all or any of the powers contained in the POA in order to enable such agent or substitute(s) to exercise all or any of the powers given by you to I-Sec. I-Sec cannot assign the POA to any of its Assignees except to the amalgamated/demerged/transferee Company formed out of corporate restructuring, if any, undertaken in compliance with Section 391-394 of the Companies Act, 1956 and duly approved by the relevant High Court with one month due prior intimation. I-Sec cannot transfer your funds, debited for various services and facilities availed by you from I-Sec, to accounts otherwise than to its own bank accounts including bank account no(s) maintained with ICICI Bank 000405069726, 000405069729, 000405069731, 000405005406, 000405005970, 000405008178 ,000405070670 or such other bank account of I-Sec as may be intimated to you by I-Sec from time to time. I-Sec cannot transfer your securities, debited for various services and facilities availed by you from I-Sec, to accounts otherwise than to its own demat accounts including demat account maintained with ICICI Bank including pool / beneficiary account no IN300183 13632245, IN302902 44963232, IN300183 13632254, IN302902 44963249, IN302902 44963257 ,IN302902 46841937 or such other demat account of I-Sec as may be intimated to you by I-Sec from time to time I-Sec is authorized to send, in addition to any other document required to be disseminated by it as specified by SEBI or any other regulator from time to time, consolidated summary of your scrip-wise buy and sell positions taken with average rates to you by way of SMS / email on a daily basis. PART II POLICIES AND PROCEDURES AS PER SEBI CIRCULAR MIRSD/ SE /CIR-19/2009 DATED DECEMBER 3, 2009 The underlying document outlines various policies and procedures ICICI Securities Limited (I-Sec) has framed with respect to its dealing with clients for capital market transactions to ensure transparency and facilitate understanding on various aspects related to service delivery. Kindly note that the below stated policies and procedures are subject to change from time to time, depending upon our internal risk management framework, market and external environment; and clients can refer to our website www.icicidirect.com for the updated documents. A. Refusal of order(s) from the clients including for penny stocks I-Sec normally offers trading facility in most of the compulsory dematerialized stocks which are listed of on the stock exchanges. The stocks offered by I-Sec are duly updated on www.icicidirect.com (hereinafter referred as website). Please note that some of the stocks such as B. Client Exposure Limits From time to time I-Sec may impose and vary limits on the orders placed by client or orders to be placed by client, including client ad hoc margin , security ad hoc margin, exposure limits, turnover limits, limits as to numbers etc. I-Sec may demand additional margin in the form of cash, securities if there are requirement for margin top up. This additional margin would be in addition to the initial margin, which may be higher than margin prescribed by the Exchange. C. Squaring off / Closing client open positions and sell out of client securities without notice I-Sec shall have the discretion to square off the open positions of client in following circumstances. Square off / close out the client open positions may happen at any of the exchanges and it can happen at either market price or limit price. I-Sec reserves the right to decide the limit price keeping in view of the size of the order and the depth of the market. Specific features of each and every product are updated on the Frequently Asked Questions and also in Terms and Conditions which is updated on the website of the Company. Clients are bound by such online terms and conditions and the FAQs posted on the website. The conditions related to squaring off/close out of the clients’ open positions and also liquidation in Cash Equity, Equity Derivative and Currency Derivative segments are broadly included as: 1I-Sec offers intra day products Margin and Margin Plus in Equity segment and Future Plus in Derivatives segment. If the client does not square off his open positions before the EOS (end of settlement) time (as updated on our website) or the client does not convert the open positions to delivery or does not opt for client square off mode (in case of equity) or does not convert to Futures (in case of Future Plus), I-Sec would square off/close out the open positions. On the days of high market volatility , I-Sec reserves the right to change the EOS timings by either pre-poning or postponing the same. Further, whenever any stock or underlying contract breaches the internally prescribed percentage, I-Sec may square off the existing open positions without giving any prior notice to the customers. 4In case of breach in scrip specific market wide position limit (MWPL) as specified by Exchanges, client will not be allowed to take fresh positions in that scrip but he can square off his existing positions. Square off may be initiated by I-Sec in case of derivatives when the positions limits (client level,Trading Member level, market level) are breached. D. Internal Shortages As per the prevailing guidelines, the Trading Members settle with stock exchanges at Trading Member level and at net scrip level basis. However, I-Sec settles transactions with clients at client level and has the scope for internal shortages. The internal shortages are marked against the clients randomly at the discretion of I-Sec. The shares are purchased in the defaulting clients account before T+3 day and the delivery of shares is given to the buyer by T+6 day. Any change in the policy would be updated on our website. E. Restriction on further position and closeout of positions Client shall be responsible for all his orders, including any orders, which exceed the available limits in his client Account. The client shall credit the required fund to his linked Bank Account with ICICI Bank promptly to ensure that the payment shall be received and processed on or prior to the settlement date or a date intimated by the I-Sec, whichever is earlier. If the payment is not received as aforesaid, then I-Sec may square off the same without any prior intimation to the client. In the event of liquidation of the open positions, the client shall be liable for any resultant losses and all associated costs incurred by I-Sec. In addition to these clauses, the conditions specified above in mentioned point number c are also applicable. The client understands that I-Sec at any point time and on its sole discretion and without prior notice to the client may prohibit or restrict client’s access to the use of the web-site or related services or in any specific security and client’s ability to trade. F. Penalty and other charges The client shall be liable to pay late payment charges @ 18% per annum at such rate (or other rate as may be decided from time to time by ICICI Securities Ltd. ) on all delayed payment beyond the due date (i.e. pay-in-date) by the client to ICICI Securities Ltd. G. Suspension / Closure of Trading Account ICICI Securities may close/suspend the trading account of client pursuant to SEBI directive or for any reason whatsoever, after giving notice as per the requirements to the client of the same. Such notice may also be posted on our website. Notwithstanding any such closure, all rights, liabilities and obligations of the parties arising out of or in respect of transactions entered into prior to the closure of account shall continue to subsist and vest in /be binding on the client or his / its respective heirs, executors, administrators, legal representatives or successors, as the case may be. Client can initiate suspend/closure of his account by giving 30 days written notice duly acknowledged by I-Sec. Presently, I-Sec does not deactivate any of the inactive accounts. Any change in policy would be updated on our website. H. De registering of client I-Sec has the sole discretion to continue the relationship. The terms and conditions as specified in the client member Agreements are applicable. I. Inactive accounts A trading account in which no trades are done across any segment of any Exchange for six months would be termed as “Inactive” or “Dormant” trading account. I- Sec does not freeze any “Inactive” or “Dormant” trading account. However any trade emanating from such trading accounts pursuant to the same being classified as “Inactive” or “Dormant” trading account would be subject to necessary due diligences and confirmations as I-Sec may deem fit. Hope the above article will go well in providing the new investors and traders to get started with online trading and will also help them to choose the best trading portal which will help them to get the best brokerage and also requisite speed to execute the trades. Do remember to choose the online share trading site which is providing good customer support and do not solely rely on their relationship managers as solely depending on them can be a sure recipe of disaster.
The POA can be revoked / canceled immediately by furnishing a written request to the Corporate Office of ICICI Securities duly acknowledged by ICICI Securities and upon fulfillment of your obligation pertaining to unsettled transactions and outstanding dues payable to ICICI Securities /ICICI Bank Limited/ and/or Depository Participant or to a Third Party service provider or to any of their affiliates/subsidiaries as per the terms and conditions of the services/products availed by you.
penny stocks which is generally understood to be stocks quoted below Rs 10/-. I-sec reserves the right to charge minimum brokerage on penny stocks
scrips not traded in compulsorily dematerialized mode
scrips which do not meet internal risk and surveillance criteria
are not allowed by I-Sec for trading. Any existing scrip enabled for trading may be deactivated by I-Sec as and when such scrips meet the criteria as defined by I-Sec even if the Client had bought such scrips through I-Sec thereby restricting the Client’s ability to sell the scrip. Being a penny stock is not a criteria for enabling / disabling, though the same may be considered. I-Sec cannot be held responsible for any losses, if any, arising due to deactivation of the scrip. Clients may contact our customer service helpline for enabling the specific stocks in which trading is not allowed by I-Sec. However, I-Sec may not enable all such stocks which are requested by the clients if the same are not meeting the internal criteria as defined by the Company from time to time. Further, I-Sec may also at any time, at its sole discretion and without prior notice to the client, prohibit or restrict client’s access to the use of the web-site or related services or in any specific security and client’s ability to trade.
2I-Sec does not guarantee to square off the open positions of the clients, whenever there are margins shortages or the prices moved beyond the prescribed percentage. The clients are solely responsible for the trading decisions taken by them. In case of any debit balance, clients have to make good losses without demur, immediately. I-Sec has the right to block/pledge the shares of the client which are lying in his designated and linked demat account, sale of those stocks to recover its dues and debit funds from the designated and linked bank account.
3For Equity and Currency derivatives contracts, the client has to maintain applicable minimum margin all the time i.e. till positions are open. I-Sec reserves the right to revise the margin requirements at any point of time and if the client does not meet the margin requirements, I-Sec has the right to square off the open positions to the extent that the existing margin after deducting intraday MTM losses meets the revised Initial Margin requirements of I-Sec for the remaining open positions. I-Sec at its sole discretion may or may not exercise the rights to square off the positions which are not meeting the margin requirements. Further, the client has been provided with tool on the website itself where he can ascertain details of his existing margin blocked, margins required, MTM loss adjustment, margin percentage etc. The margin requirement derived by use of these tools will be construed as demand for the additional margin required by I-Sec. I-Sec may not inform specific (one to one) clients about the margin requirements/margin top up calls/margin availability before the square off. Clients are bound to monitor and review their open positions and margin requirements all the times and furnish the additional margin to the Company.
5All clients have to comply with the contract level margin requirements in Equity and Currency derivatives segments. While squaring off client open positions, I-Sec does not consider the mark to market (MTM) profit on other contracts in portfolio of the clients. I-Sec has the discretion to charge margins at the group of contract level or at portfolio level. To understand the margin calculations and requirements, clients are required to refer on-line information which is updated in FAQs and in the Terms and Conditions.
6While squaring off the open positions, the free limits available in only that specific segment, where client has taken position are considered. While squaring off the open positions, free unallocated bank or demat balances and the free limits available in other segments are not considered as margin by I-Sec. However, I-Sec reserves the right to debit the free/unallocated balances or block/sale of free/unallocated shares in case of debit balance in the clients account.
7In case the intra day equity products are converted to delivery the client has to meet the pay in obligation within due date i.e. by T+2 day. I-Sec reserves the right to square off required quantity in case the margin available on such pending delivery positions does not meet I-Sec's margin requirements as provided on the website. In case of intra day F&O/Currency derivatives products, the converted positions are treated at par with normal F&O/Currency derivatives positions.
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