Consent/ Authorization to avail Margin Trading funding

Date - Login Id -

To,
IIFL Securities Limited,
IIFL House, Sun Infotech Park,
Road No.16V, Plot No.B-23,
MIDC, Thane Industrial Area,
Wagle Estate, Thane 400 604

 I/we am / are interested in activating my/our account for avail margin trading funding
with IIFL Securities Limited. I/we hereby authorize you to activate my/our account for
the above mentioned funding as per my consent.

 I/we agree and understand to the terms and conditions of Margin Trading Funding
provided by IIFL Securities Limited. I/we do hereby agree to be bind by such
provisions as outlined in these documents and act in accordance with the same while
availing the margin trading funding. I/we hereby undertake to refer to the updated
policies and procedure as posted on India Infoline website and abide by the same.

 I/we confirm and agree to receive all the communication such as confirmation of
orders/trades, margin calls, decisions/calls to liquidate the collateral/ positions /
security on my registered email address or registered mobile number provided with
IIFL Securities Limited send electronically by IIFL Securities Limited.

 I/we understand that by availing the funding to trade under Margin Trading, i/we
authorize IIFL Securities Limited to treat all my/our trade in group I securities (further
classified by India Infoline), which are not covered by 100 % margin (i.e Cash in
ledger) as trades under Margin Trading Funding and accordingly i/we authorize IIFL
Securities Limited to report all such trades to the exchange(s) on next day as Margin
Trading Trades.

 I/we understand and acknowledge that IIFL Securities Limited would consider entire
clear ledger credit balance in normal trading ledger for adjustment against the margin
trading funding trades (Ledger) and would levy the interest on the net debit balance
in the MTF Ledger.

 I/we understand and agree that the interest would be calculated and levied on a daily
basis at the rate mutually agreed between client and IIFL from time to time

Holder Name Holder Signature

RIGHTS & OBLIGATIONS OF STOCK BROKERS & CLIENTS FOR MARGIN TRADING FUNDING (MTF)

Part A: Rights and Obligations ‐ Mandatory Clauses of BSE

1. Stock Broker/ Trading Member is eligible to provide Margin Trading Funding (MTF) in accordance with
SEBI & Exchange Guidelines as specified from time to time.

2. Stock Broker/ Trading Member desirous of extending MTF to their clients is required to obtain prior
permission of BSE. Stock Broker/ Trading Member may note that BSE has the right to withdraw the
permission at anytime.

3. Stock Broker/ Trading Member shall extend the MTF to the client, on such terms and conditions as
specified by the Stock Exchange / SEBI from time to time. Stock Broker/ Trading Member and the client
shall abide by the requirements of the margin trading framework, including rights and obligations, as
prescribed by Stock Exchange/ SEBI/ Stock Broker/ Trading Member.

4. Stock Broker/ Trading Member shall intimate all the terms and conditions, including maximum
allowable exposure, specific stock exposures etc., as well as the rights and obligations to the client
desirous of availing MTF.

5. Stock Broker/ Trading Member may, at its sole and absolute discretion, increase the limit of initial
and/or maintenance margin, from time to time. The Client shall abide by such revision, and where there
is an upward revision of such margin amount, he agrees to make up the shortfall within such time as the
Stock Broker/ Trading Member may permit. It may however, be noted that the initial/ maintenance
margins shall never be lower than that prescribed by Stock Exchange/ SEBI.

6. Stock Broker/ Trading Member shall provide MTF only in respect of such shares, as may e permitted
by Stock Exchange/ SEBI.

7. Stock Broker/ Trading Member shall liquidate the securities and other collateral, if the client fails to
meet the margin call to comply with the margin requirement as specified by Stock Exchange/ SEBI/ Stock
Broker/ Trading Member. In this regard, Stock Broker/ Trading Member shall also list down situations/
conditions in which the securities may be liquidated (Stock Broker/ Trading Member to list down
situations/ conditions which are included in the subsequent part of the T&Cbelow).

8. Stock Broker/ Trading Member shall not use the funds of one client to provide MTF to another client,
even if the same is authorized by the first client.

9. The stocks deposited as collateral with the Stock Broker/ Trading Member for availing margin trading
Funding (Collaterals) and the stocks purchased under the margin trading Funding (Funded stocks) shall
be identifiable separately and no comingling shall be permitted for the purpose of computing funding
amount

10. IPF shall not be available for transactions done on the Stock Exchange, through MTF, in case of any
losses suffered in connection with the MTF availed by the client.
The rights and obligations prescribed hereinabove shall be read in conjunction with the rights and
obligations as prescribed under SEBI circular no. CIR/ MIRSD/ 16/ 2011 dated August 22, 2011

Part B: Rights and Obligations ‐ Mandatory Clauses of NSE

CLIENT RIGHTS

1. Client shall receive all communications in a mode mutually agreed between the broker and the client
regarding confirmation of orders/trades, margin calls, decision to liquidate the position /security.

2. Client shall be free to take the delivery of the securities at any time by repaying the amounts that was
paid by the Stock Broker to the Exchange towards securities after paying all dues.

3. Client has a right to change the securities collateral offered for Margin Trading Funding at any time so
long as the securities so offered are approved for margin trading Funding.

4. Client may close / terminate the Margin Trading Account at any time after paying thedues.

CLIENT OBLIGATIONS

1. Client shall, in writing in his own hand or in any irrefutable electronic method, agree to avail of Margin
Trading Funding in accordance with the terms and conditions of Margin Trading Funding offered by the
broker, method of communication for confirmation of orders/trades, margin calls and calls for
liquidation of collateral/security/position.

2. Client shall inform the broker of its intent to shift the identified transaction under Margin Trading
Funding within the time lines specified by the broker failing which the transaction will be treated under
the normal trading Funding

3. Client shall place the margin amounts as the Stock Broker may specify to the client from time totime.

4. On receipt of 'margin call', the client shall make good such deficiency in the amount of margin placed
with the Stock Broker within such time as the Stock Broker may specify.

5. By agreeing to avail Margin Trading Funding with the broker, client is deemed to have authorized the
broker to retain and/or pledge the securities provided as collateral or purchased under the Margin
Trading Funding till the amount due in respect of the said transaction including the dues to the broker is
paid in full by the client.

6. Client shall lodge protest or disagreement with any transaction done under the margin trading
Funding within the timelines as may be agreed between the client andbroker.
STOCK BROKER RIGHTS

1. Stock Broker and client may agree between themselves the terms and condition including commercial
terms if any before commencement of MTF.

2. Stock broker may set up its own risk management policy that will be applicable to the transactions
done under the Margin Trading Funding. Stock broker may make amendments there to at any time but
give effect to such policy after the amendments are duly communicated to the clients registered under
the Margin Trading Funding.

3. The broker has a right to retain and/or pledge the securities provided as collateral or the securities
bought by the client under the Margin Trading Funding.

4. The broker may liquidate the securities if the client fails to meet the margin call made by the broker
as mutually agreed of liquidation terms but not exceeding 5 working days from the day of margin call.

STOCK BROKER OBLIGATIONS

1. Stock broker shall agree with the client the terms and condition before extending Margin Trading
Funding to such client. However, for clients who already have existing trading relationship and want to
avail of Margin Trading Funding, stock broker may take consent in writing in his own hand or in any
irrefutable electronic method after stock broker has communicated the terms and conditions of Margin
Trading Funding to such existing clients.

2. The terms and conditions of Margin Trading Funding shall be identified separately, in a distinct section
if given as a part of account opening agreement.

3. The mode of communication of order confirmation, margin calls or liquidation of position/security

shall be as agreed between the broker and the client and shall be in writing in his own hand or in any
irrefutable electronic method. Stock broker shall prescribe and communicate its margin policies on
haircuts/ VAR margins subject to minimum requirements specified by SEBI and exchanges from time to
time.

4. The Stock Broker shall monitor and review on a continuous basis the client’s positions with regard to
MTF.

5. Any transaction to be considered for exposure to MTF shall be determined as per the policy of the
broker provided that such determination shall happen not later than T + 1 day.

6. If the transaction is entered under margin trading account, there will not be any further confirmation
that it is margin trading transaction other than contract note.

7. In case the determination happens after the issuance of contract, the broker shall issue appropriate
records to communicate to Client the change in status of transaction from Normal to Margin trading and
should include information like the original contract number and the margin statement and the changed
data.
 8. The Stock Broker shall make a “margin call” requiring the client to place such margin; any such call
shall clearly indicate the additional/deficient margin to be made good.

9. Time period for liquidation of position/security shall be in accordance declared policy of the broker as
applicable to all MTF clients consistently. However, the same should not be later than 5 working
(trading) days from the day of “margin call”. If securities are liquidated, the contract note issued for such
margin call related transactions shall carry an asterisk or identifier that the transaction has arisen out of
margin call.

10. The daily margin statements sent by broker to the client shall identify the margin/collateral for
Margin Trading separately.

11. Margin Trading Accounts where there was no transactions for 90 days shall be settledimmediately.

12. The stocks deposited as collateral with the stock broker for availing margin trading Funding
(Collaterals) and the stocks purchased under the margin trading Funding (Funded stocks) shall be
identifiable separately and there shall not be any comingling for the purpose of computing funding
amount;

13. Stock Broker shall close/terminate the account of the client forthwith upon receipt of such request
from the client subject to the condition that the client has paid dues under Margin Trading Funding.

PART C: Terms and Conditions of IIFL Securities Ltd.for trading in Margin Trading Funding

DEFINITIONS:

The terms and conditions prescribed hereunder form part of account opening form, shall be read in
conjunction with the rights and obligation as prescribed under SEBI circular no.
CIR/MIRSD/16/2011 dated August 22, 2011 and the Rules, Regulations, Bye Laws, Rights and
Obligation, Guidelines, Circulars issued by SEBI and Exchanges from time to time.
In these terms and conditions, unless indicated otherwise, specific words and phrases have the
meaning as stated hereunder (arranged alphabetically for ease of reading) and the client confirms
having read and understood these words and phrases:
 “Alerts” means a customized SMS or Email Communication sent to clients on their registered E‐mail
Address or Mobile Number.
 "Additional Margin" shall mean the incremental margin required to safeguard Margin Trading
positions from being squared off.

 “Client” means a constituent of IIFL who have in his own hand or in any irrefutably electronic mode,
agreed to have availed the Funding of Margin Trading and executed Power of Attorney in favour of
IIFL and has an existing and valid Account with IIFL. Client shall include Individual, Company,
Partnership firm, Trust, Hindu Undivided Family, Association of Person and Body of Individualsetc.
 “Communication in electronic mode” means alerts send to clients registered E‐mail Address or
Mobile Number.
 “IIFL Securities Ltd.(IIFL)” means Stock Broker of National Stock Exchange of India Limited (TM
Code: 10975) and BSE Limited (Clg No: 179) having obtained prior permission from respective
exchange to provide Margin Trading Funding to its clients.
 “Margin Trading Funding” is the product being offered by IIFL to Clients under the framework of
rules, regulations issued by Exchanges/ SEBI from time to time.
 “SMS” means “Short Messaging Service”
 “Securities” means all funded and collateral stocks that are permissible set of securities as provided
by NSE and BSE from time to time under the margin trading Funding.

SECURITIES ELIGIBLE FOR MARGIN TRADING:

 Equity Shares that are classified as 'Group I security' as per SEBI Master circular No.
SEBI/HO/MRD/DP/CIR/P/2016/135 dated December 16, 2016, shall be eligible for margin trading
Funding and as amended from time and time .IIFL reserves the right to offer or not offer MTF on
such list of securities as specified from time to time

MARGIN TRADING FUNDING:

 IIFL at all times shall have the liberty to exercise its right in its sole discretion to determine the
extent to which the MTF be made available to the Client.

 IIFL shall not be bound to grant MTF to the Client (which decision shall be at the sole and exclusive
discretion of IIFL) and IIFL shall not be required to provide any reasons thereof nor shall IIFL be
liable for any damages (whether direct or consequential or whether financial or non‐financial) to
the Client by reason of IIFL refusal to grant MTF to the Client.

 IIFL will extend margin trading Funding on eligible list of securities to client for T+90 days or for
further period on fulfillment of conditions specified by IIFL as per its risk managementpolicy

MARGIN REQUIREMENT:

 In order to avail margin trading Funding, initial margin required shall be asunder;

Category of Stock Applicable margin

Maximum of (VaR + 3 times of

Group I stocks available for trading in the F & O Segment
applicable ELM*,IIFL approved haircut)
Maximum of (VaR + 5 times of
Group I stocks other than F&O stocks
applicable ELM*,IIFL approved haircut)
* The applicable VaR and ELM shall be as in the cash segment for a particular stock.
 The client shall ensure maintenance of the aforesaid margin at all times during the period that the
margin trading Funding is being availed by the client. The client shall ensure to place the aforesaid
margin in the form and manner as may be specified by IIFL from time totime.
 IIFL may, at its sole and absolute discretion, increase the limit of initial and/or maintenance margin,
from time to time. The Client shall abide by such revision, and where there is an upward revision of
such margin amount, agree to make up the revised margin immediately, not later than 5 working
days from the day of margin call, failing which IIFL may exercise its discretion / right to liquidate
the security/ collateral and/or close out the position immediately. It may however, be noted that
the initial/ maintenance margins will/shall never be lower than that prescribed by Stock Exchange/
SEBI.
In case of short fall in margins, IIFL will make necessary margin calls. On receipt of ‘margin call’, the
client shall make good such deficient margin / margin call by placing the further margin
immediately, failing which IIFL may exercise its discretion / right to liquidate the security /
collateral and / or close out the position immediately depending upon the market conditions and /
or the volatility.
 The Client agrees that the Mark to Market (MTM) process run by IIFL to call for additional margin
on Client positions shall be considered as online margin call given to the client. Further, the client
has been provided with reports on the trader terminal (TT) itself where he can ascertain details of
his existing margin blocked, margins required, MTM loss adjustment, margin shortfall, margin
percentage etc. The margin requirement derived by use of these reports and the MTM process run
by IIFL to call for additional margin on open positions will be construed as margin call/ demand for
the additional margin required by IIFL. Clients are bound to monitor and review their open
positions and margin requirements all the times and furnish the additional margin to the Company.
IIFL reserves the right to close out the open position at any time in case the Client does not satisfy
the additional Margin requirements. The Client shall maintain sufficient margin at all the time to
provide for limit and avoid liquidation.
 IIFL will set up separate risk management policy as amended from time to time, that will be
applicable to the transactions done under the Margin Trading Funding.
 IIFL will clearly indicate on its trader terminal (TT) the additional/ deficient margin to be made good
while making “margin call” to the client.

COLLATERALS:

 The initial margin payable by the client to IIFL shall be in the form of cash, cash equivalent or Group
I equity shares, with appropriate hair cut as specified in SEBI Master circular no.
SEBI/HO/MRD/DP/CIR/P/2016/135 dated December 16, 2016.
 By agreeing to avail Margin Trading Funding with IIFL, client is deemed to have authorized IIFL to
retain and/or pledge the securities provided as collateral or purchased under the Margin Trading
Funding and any corporate benefit thereon, if any, till the amount due in respect of the said
transaction including the dues to IIFL is paid in full by theclient.
 Client have a right to change the securities collateral offered for Margin Trading Funding at any
time
with prior notice in writing to IIFL so long as the securities so offered are approved for margin
trading Funding.
 The Stock deposited as collateral with IIFL for availing MTF (Collaterals) and the stocks purchased
under the MTF (Funded Stock) shall be identifiable separately and there shall not be any
commingling for the purpose of computing funding amount.
 IIFL will hold and / or will appropriate the credit lying in the Client account and/or any unutilized/
unpledged shares/ securities lying in demat account along with all other demat accounts / Mutual
Funds / IPO account of the Client towards the repayment of the outstanding dues thereof under
MTF.
 IIFL is at its discretion to identify the eligible/excess securities available with the client and mark
such securities as collateral towards MTF.

EXPOSURE & MAXIMUM PERMISSIBLE EXPOSURE:

 Client Wise :

Exposure to any single client at any point of time will not exceed 10% of the borrowed funds by IIFL
and 50% of IIFL’s “net worth”

 Securities Wise :

Exposure towards stocks purchased under margin trading Funding and collateral kept in the form
of securities will be as per the appropriate Board approved policy in this regard from time to time.

 Exposure on the increased value of Collaterals :

In case of increase in the value of Collaterals, IIFL may at its sole discretion have the option of
granting further exposure to the client s bject to applicable haircuts. However, no such exposure
shall be permitted on the increased value of funded stocks

MARGIN TRADING FACILITIES TRADES

 By providing the consent for availing margin trading Funding, client authorize IIFL Securities Ltd.to
consider all his/her/its trades placed by them in group I securities to be treated as trades availed
by them under the margin trading Funding and accordingly report such trades to Exchanges subject
to availability of margin in form and manner as communicated by IIFL from time to time.
 If the transaction is entered under margin trading account, there will not be any further
confirmation that it is margin trading transaction other than contract note.
 Client will be free to take the delivery of the securities at any time by repaying the amounts that
was paid by IIFL to the Exchange towards the securities bought under margin trading Funding after
paying all dues.

 IIFL shall monitor and review on a continuous basis the client’s position with regards to MTF
 INTEREST CALCULATION AND REPORTING OF TRADES:

 IIFL Securities Ltd.would consider entire clear credit ledger balance in the clients normal ledger for
adjustment against the margin trading Funding trades (Ledger) and only the net debit balance
would be considered as funded amount for reporting purpose
 IIFL Securities Ltd.would calculate and levy the interest on the net debit balance in the MTF Ledger.
 The interest charge would be calculated on a daily basis at the rate specified and published by IIFL
from time to time

MODE OF COMMUNICATION:

IIFL will sent all the confirmation of orders/ trades, margin calls, decision/calls to liquidate the
collateral/ positions/ security, Daily Margin Statement, Contract Notes, margin policy on haircuts/ VAR
margin, Risk management policies, allowable exposure, specific stock exposure etc through electronic
mode on registered email id and/or mobile number of the client updated in the IIFL’s database by the
client.

COMPLAINTS RESOLUTION:

 Client shall lodge protest or disagreement with any transaction done under the margin trading
Funding within 24 hours from the date of receipt of such document/statements/contract notes/any
other communications
 Any dispute arising between the client and IIFL in connection with the MTF shall be referred to the
investor grievance redressal mechanism, arbitration mechanism of the respective stock exchange.
 IPF (Investor Protection Fund) shall not be available for transactions done on the Stock Exchange,
through MTF, in case of any losses suffered in connection with the MTF availed by theclient.

LIQUIDATION

 IIFL may immediately without any notice liquidate the security / collateral and or close out the
open positions due to the following events:
o if any instrument for payment of Margin Money / Monies is / are dishonoured;
 o if the Client violates/breaches any provision of this Arrangement or provides any incorrect
or misleading information;

o if the Client has voluntarily or compulsorily become the subject of any proceedings under
any bankruptcy or insolvency law or winding up or liquidation proceedings or has a
receiver or liquidator appointed in respect of itself or its assets or makes an application or
refers itself to any authority for being declared as a "sick company", relief undertaking,
bankrupt or insolvent or seeking financial reconstruction or any other like scheme (by
whatever name called) or is dissolved or there is a change in the constitution whether on
account of the admission of a new partner or the retirement, death or insolvency of any
partner or otherwise;

o the death, lunacy or other disability of the Client;

o if there is reasonable apprehension that the Client is unable to pay its outstanding dues or
has admitted its inability to pay its dues, as they becomepayable;
o if the Client is convicted under any criminal law inforce;
o if any Asset or any Security is seized or made subject to any distress, execution, attachment,
injunction or other process order or proceeding or is detained or taken into custody for any
reason;
o default under any other arrangement or Funding with any Stock Broker is made by the
Client.
o there exists any other circumstance, which in the sole opinion of IIFL, is prejudicial to the
interests of IIFL;
o Order passed by any regulatory, courts, statutory bodies etc.
 All losses and financial charges on account of such liquidation/closing out shall be charged to and
borne by the client
 Whenever the securities are liquidated by IIFL, the contract note issued for such margin call related
transaction will carry an asterisk or identifier that the transaction has arisen out of margin call.
 The client agrees that if the client is not able to maintain adequate margins or defaults in bringing
adequate margin against the margin call then India Infoline Limited, to mitigate the risk may take
necessary risk measure and liquidate the funded/ collateral securities. During such liquidation the most
liquid funded / collateral securities with the highest value would be liquidated first in order to cover the
risk of IIFL.
 In Case of de‐merger, merger, amalgamation, rights issue corporate action in any eligible securities
the client would be required to make payment 7 days prior to the ex‐date. In case of nonpayment,
IIFL will liquidate such positions in such securities.
 Client is required to make good the payment of positions of MTF trades which are held for more than 90
days, failing which IIFL will liquidate such positions
 TERMINATION OF RELATIONSHIP:

 Client may close / terminate the Margin Trading Account at any time after paying the dues with
prior notice in writing.
 The margin trading arrangement between IIFL and the client shall be terminated; if the Stock
Exchange, for any reason, withdraws the margin trading Facility provided to IIFL or IIFL surrenders
the facility or the IIFL ceases to be a member of the stock exchange.
 The MTF may be withdrawn by IIFL, in the event of client committing any breach of any terms or
conditions therein or at any time after due intimation to client allowing such time to liquidate the
MTF position as per the agreed liquidation terms without assigning any reason. Similarly, client
may opt to terminate the margin trading Funding in the event of IIFL committing any breach of any
terms or conditions therein or for any other reason.
 In the event of termination of this arrangement, the client shall forthwith settle the dues of the IIFL.
The IIFL shall be entitled to immediately adjust the Margin Amount against the dues of the client,
and the client hereby authorizes the IIFL to make such adjustment.
 After such adjustment, if the amount is still due to IIFL from the client, the client shall settle the
same
forthwith. Upon full settlement of all the dues of the client to IIFL, IIFL shall release the balance
amount to the client.
 If the client opts to terminate the margin trading Funding, IIFL shall forthwith return to the client
all the collaterals provided and funded securities retained within 5 working days from the date of
clearing of all the dues by client.

OTHERS:

 The funds of one client will not be used to provide MTF to another client, even if the same is
authorized by the first client.
 The Clients Margin Trading Account with no transaction for 90 days will be settledimmediately.
 The daily margin statements sent by IIFL to the client shall identify the margin/ collateral for
Margin Trading Separately.
 The dues, wherever mentioned herein above, includes but not limited to outstanding balances,
interest, statutory taxes, duties, charges, penalties etc. in respect of MTF availed by theClient
 The terms / conditions / Obligations of the Client as amended from time to time shall be irrevocable
and shall not be revoked by the death/dissolution/ winding up of the Client.