Margin Trading Facility (eMargin) ActivationI/We hereby agree to avail Margin Trading Funding (“MTF”) from MACM in Equity Segment of NSE and BSE. I/We have received and read the Rights and Obligations of MTF as prescribed by NSE and BSE contained in Part B of Account Opening Form. I/We also agree to avail of Margin Trading Funding from MACM in accordance with the following terms and conditions agreed between me/us and MACM. The above referred MTF is offered by Mirae Asset Capital Markets (India) Private Limited (“MACM”) under the product name of eMargin
Other Terms and Conditions relating to Margin Trading Funding (“MTF”) as agreed between Stockbroker and Client.
1. Under eMargin, about 20% - 50% margin required to be provided by the client in such form as may be specified from MACM from time to time for limits (both cash & non cash). The margin is blocked from the customers' limits before the order is released to the Exchange. The client can carry forward his open buy position till sufficient margins are maintained by the clients.
a) The customer can take fresh buy positions in E- margin product in the approved stock (s) by providing prescribed margins. The open positions can be squared off in case of any margin shortfall, MTM Loss or in case of corporate actions concerning the stock in which there is open eMargin position.
b) As per SEBI regulation, only Group-1 securities are eligible for MTF. Hence, MTF shall not be offered in all the securities traded on Stock Exchanges. MACM shall have the discretion to select securities that will be enabled for trading under the said facility as per its internal risk management policy and the number of stocks enabled for trading under MTF can be smaller than the number of stocks allowed by SEBI/Stock Exchanges.
c) Such list of approved securities would be subject to change by MACM from time to time. MACM 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.
d) SEBI/Exchanges has prescribed the Minimum Margin amount to be paid by the client as VaR + 3 times ELM in case of F&O stocks and VaR +5 times ELM in case of other eligible stocks. MACM shall have the right to prescribe and collect the higher margin from client over and above the stated rates. Also as a risk containment measure, margin rates could be increased or decreased for a Security without notice to the Client and without assigning any reasons whatsoever by MACM from time to time.
e) Margins can be collected by MACM in the form cash, cash equivalent and eligible stocks in the Form of Margin Pledge (“MP”) with Appropriate haircut as decided by MACM from time to time.
f) Mark to Market (MTM) losses on open eMargin positions to be calculated on daily basis and shall be adjusted from available margin. Accordingly, the Limit may lesser over a period of time. In case, the MTM loss breaches the prescribed threshold (currently 75%) of available margin, the position shall be squared off immediately to restrict further losses. It shall be the responsibility of the Client to regularly monitor and review the Margin availability and furnish the additional Margin to MACM.
g) In case the eMargin 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 etc.) your open position will be settled on a delivery basis.
h) In case the Client has buy position which resulted in no delivery / shortage then the sell leg transaction (if executed on or before Settlement date) would also amount to shortage. The auction value as applicable on the shortages would apply.
i) if client buy shares under MTF product and sell the same under other product on the same day or vice -versa, there will be no open position and hence no MTF allocation will happen for the day.
j) MACM 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 any dues in relation to MTF facility. In case of delayed payment/ delay in realization of the dues, then interest, at the rates as decided by MACM from time to time, shall be paid by the Client for the same till the date of payment by the Client.
k) Interest will be charged between 8% to 12% per annum as may be applied by MACM from time to time on ledger debits including on the funded portion of the eMargin client trades. Other statutory charges and taxes shall apply as applicable.
l) Decision of MACM will be final with respect to:-
— Eligibility criteria of clients for availing funding under eMargin,
— Eligible scrips for funding under eMargin,
— Eligible scrips for collateral,
— Applicable margin rates (over and above stated Exchange margin %),
— Applicable haircut% on Collateral stocks (over and above stated Exchange haircut %),
— Maximum funding for a client under eMargin,
— Maximum funding for a scrip under eMargin,
— Maximum collateral value/quantity for a scrip,
— Inclusion or exclusion of a scrip under eMargin,
— Inclusion or exclusion of a scrip for collateral,
— MTM value calculations,
— Square off time of open position, Maximum days allowed for continuing the eMargin position(s),
— Rate of interest, also referred to as delayed payment charge, charged for funding client's position
— Adjusting credit arising from one product to the other with MACM,
— Other operational matters.
3. Situations/ conditions in which the securities may be liquidated:
a) Applicable minimum margin and increased margin, if any, shall be required to be provided at all times by the clients in respect of the stocks purchased under the MTF. Client shall pay any shortage in the required margin immediately on receiving demand (margin call) failing which MACM shall be at liberty to liquidate the funded shares and/or collateral shares to recover the dues outstanding in the account of the Clients In the normal market condition, it is expected that the client makes good the shortage within T +3 day failing which the position would be liquidated on T+4 day to the extent of margin shortfall . However, MACM reserves the right to liquidate the position much in advance if adequate client Margin is not available with MACM for the open eMargin positions.
b) The scrip price is continuously hitting lower circuit.
c) As per the SEBI circular, Funded stocks under MTF are to be held in Client Securities Margin Funding Demat Account only by the way of Pledge. Client has to provide pledge confirmation for all funded stocks through the OTP based authentication mechanism in accordance with guidelines prescribed by CDSL DP from time to time.If client fails to accept the pledge request for the funded stocks in favour of MACM within prescribed timeline as may be decided from MACM from time to time , position will be squared off any time after the settlement day but on or before the regulatory norms. Funds blocked during the settlement of such position(s) would be liable to for Delayed Payment charges. I hereby authorise Mirae Asset Capital Markets (India) Private Limited (“MACM”), my Stock Broker/Depository Participant, to cancel/revoke/delete the excess pledge against my Margin Trading Facility (e Margin) created in CDSL by me for which there are no trades.
d) Client has not transferred required funds and/or approved collateral in the form of Margin Pledge to meet the MTM loss/margin shortages.
e) Value of collateral has fallen either due to fall in prices or removal of the stock from the approved collateral list by Exchange/MACM including due to corporate action.
f) The margin% on eMargin stock has been increased by Exchange/Clearing house/MACM and hence there is shortage of margin on client's open positions.
g) The haircut % on Collateral stock has been increased by Exchange/Clearing house/MACM and hence there is shortage of margin on client's open positions.
h) The client's ledger is in debit over and above the margin debit.
i) If the stock moves out from the list of eligible stocks under MTF and becomes ineligible for offering under MTF.
j) Any other circumstances due to change in regulatory requirements from time to time or risk management process due to changing market conditions.
k) In case the scrip ceases to be allowed for eMargin due to corporate action – In such cases, eMargin open position may be liquidated / squared off one day prior to its Ex-date. If the scrip ceases to be eligible for eMargin for reasons like reduction in daily price band, shifting of group by Exchange(s) etc., the eMargin open position can be squared off / liquidated by MACM after giving client a margin call.
I/We hereby agree to avail Margin Trading Funding (“MTF”) from MACM in Equity Segment. I/We have received and read the Rights and Obligations of MTF as prescribed by NSE and BSE contained in Part B of Account Opening Form. I/We also agree to avail of Margin Trading Funding from MACM in accordance with the following terms and conditions agreed between me/us and MACM.
4. Other Terms and Conditions:
a) The Client understands that the positions will be permitted to be allowed/continued upon fulfillment of the necessary margin requirements as specified by MACM for the particular scrip from time to time. The Client agrees that though presently there is no maximum time limit prescribed by MACM for keeping the positions open, however, MACM reserves the right at its discretion to stipulate a maximum time within which Client will have to take the delivery thereof.
b) Notwithstanding anything contained herein, any amount funded under MTF shall be repayable on demand at the sole discretion of MACM. The Client undertakes to repay the MTF balance forthwith on demand by MACM.
c) The Client shall monitor margin shortfall as required from time to time, and whether or not any margin call is made or such other separate communication to that effect is sent by MACM to the Client and /or whether or not such communication is received by the Client to avoid any liquidation.
d) The Client agrees that MACM may at its discretion, in accordance with its risk management policy, disable trading in certain securities in MTF and square off all open positions in such scrip which are not converted to delivery irrespective of margin availability. Client agrees that MACM cannot be held liable for any losses arising out of such disablement or squaring off of such security.
e) MACM may sell off the collateral fully or partly to recover debits arising out of E-Margin.
f) The client shall not take position in a company scrip in E-Margin through MACM, if the client is a promoter of that company. If a client being promoter of the company scrip inadvertently takes position in E-Margin through MACM in that scrip then he/she shall immediately after execution of trade inform MACM of the same by sending an email from his registered E mail ID to email@example.com so that appropriate reporting could be made by MACM to Stock Exchanges.
g) Collateral and Funded stocks shall be marked to market on daily basis.
h) If mark to market loss of the client's E-Margin open position exceeds 70% of the margin provided by the client, E-Margin open position will be squared off / liquidated immediately. The client is therefore required to monitor his/her mark to market losses vis-à-vis margin availability on a real time basis.
i) Haircut shall be applied on stocks acceptable as collaterals at a percentage which can be higher than scrip Var+ELM. Such haircut % can be increased to 100% in case of corporate action in the securities provided as collaterals. In such cases, the client is required to immediately provide further margins in the form of funds, other shares as collaterals to avoid liquidation / square off of E-Margin open position(s).
j) Client shall lodge protest or disagreement with any transaction done under the margin trading facility within T+1 working day as prescribed in the Rights and Obligations.
5. MACM shall not be liable for any losses either actual or opportunity losses arising from or in connection with E-Margin transactions due to:
a) Arising out of technical / system issues.
b) Disallowance of any scrip to be allowed for further E-Margin positions.
c) Increase in applicable margin, especially when margin is increased to 100% in case of Corporate action or where the scrip does not remain eligible for E-Margin.
d) Increase in Collateral haircut %, especially when the haircut is increased to 100% in case of Corporate action or withdrawal of scrip from acceptance as collaterals due to reduction in price bands, shifting of groups by Exchange(s) etc.
e) Liquidation of E-Margin open positions due to increased mark to market losses and/or margin shortfall.
f) The client understands that MACM reserves the right to modify any of the terms and conditions in the relation to Margin Trading funding so provided. The client also understands that from the date of accepting the terms and conditions in relation to Margin Trading funding ,if there are any regulatory/operational changes in the functioning of the Margin Trading Facility, such changes shall apply without any intimation to the client. MACM reserves the right to deny providing of the Margin Trading Facility to any client without assigning any reason. During the existence of the agreement, if it is found that any breach/fraud has been committed by the client against MACM, such client shall be liable to make good all the financial loss incurred by MACM including any legal and technical cost that would have been borne by MACM. The client would also be subject to any legal action as may be necessary. MACM also reserved the right to withdraw the Margin Trading facility any time by issuing a notice of not greater than 30 days to its clients. On withdrawal of such a facility, a client would be required to settle its position and clear out any pending dues, if any. I/We hereby consent to electronic mode as the method of communication (E mail/SMS) for confirmation of orders/trades, margin calls and calls for liquidation of collateral/security/position etc.
Please refer the client handbook to understand the additional rights and obligation related to MTF
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Terms & Conditions
- I understand that my account would be opened as per name appearing in Income Tax records and the same would be activated after all procedure relating to client due diligence in accordance with regulatory guidelines is completed.
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