This document contains important information regarding the terms and conditions, which apply to your NET.NET TRADING Account with SKUNG. PLEASE READ THIS DOCUMENT CAREFULLY and retain it for future reference. Please note that the information contained herein is subject to change without notice.
A) Opening your SKUNG NET.NET Trading Account
To start NET.NET TRADING with SKUNG you need to open a trading Account and Depository Account with SKUNG .There afterwards SKUNG refers Skung Tradelink Ltd (STL) or Skung Commxperts Ltd (SCL) All receipts and payments for buying & selling of shares and all commissions and charges will be posted to your trading Account . Shares/Commodity which you buy and sell through the trading Account will be received in or delivered from your demat Account.
Trading account refers to the account of client maintained by STL/SCL in their books of accounts.
Demat account refers to the account opened by you with Depository for holding securities in electronic form. For the purpose of E-Broking through SKUNG .Demat account refers to the account opened by client with Central Depository Of Securities Limited (CDSL) through STL as Depository Participants (DP)
If your application is approved, SKUNG will open an NET.NET TRADING Account (an "Account") for you. We reserve the absolute right to either accept or reject your application on any grounds whatsoever and you agree that you shall not dispute the result in any manner whatsoever.
B) Investment Advice
You acknowledge that while SKUNG does provide advice regarding the suitability or profitability of a Scrip/ Commodity or investment. SKUNG and its officers, directors, employees, agents and affiliates will have no liability with respect to transactions in or for your Account and your investment decisions.
C] Applicable Rules and Regulations
All transactions in your Account shall be subject to the constitution, rules, regulations, customs and usage of the exchange or market, if any, where the transactions are executed by SKUNG or its agents, including SKUNG's subsidiaries and affiliates. Also, where applicable, the transactions shall be subject to the provisions of the Securities and Contracts Regulations Act (SCRA), as amended, and to the rules and regulations of the Securities and Exchange Board of India (SEBI), Central Depository Of Securities Limited (CDSL), the exchanges where SKUNG will facilitate trading, and any applicable self-regulatory organization.
D) Who is eligible
You can open these Accounts if you are over 18 years and if you will operate this on an individual basis. It is open for resident Indian only.
E) Depository Account
Joint Accounts Your demat Account can be held jointly with other people (typically relatives). For your demat Account, an instruction given to us by someone who knows your password will be necessary and sufficient condition to effect a transaction. Please note that normally regulations require both the Account holders to sign on instruction but that you are agreeable to any transactions on such Account being executed in the manner outlined above. Nomination You can also nominate someone in your Demat Account, who becomes the beneficiary of the shares held in the Account in the unfortunate event of your demise.
F) Exchange and segment
you can trade on SKUNG currently executes all Segments at the National Stock Exchange of India Limited , Mumbai Stock Exchange , Multi Commodity Stock Exchange(MCX-SX),National Commodity Exchange(NCDEX),Multi Commodity Exchange(MCX) & National Spot Exchange India Limited(NSEIL)
Validity period of the orders: All orders will be valid for the day until the normal market closes. On closure of the market the orders (or the pending part of the order) will automatically lapse. Though orders are usually routed to the marketplace within seconds, certain orders, at SKUNG's sole discretion, may be subject to manual review and entry, which may cause delays in the processing of your orders. You also understand that you will receive the price at which your order executes in the marketplace, which may be different from the price at which the Scrip or option is trading when your order is entered into our system.
You also understand that market orders may get executed at a price significantly unfavorable to you, depending upon market fluctuations. Orders are pre-validated before placing on the exchanges. All orders placed on SKUNG will be pre-validated against your cash / shares or both balances before placing them on the exchange. The validation rules are subject to change from time to time by SKUNG. If the funds or the shares are insufficient to process the orders, then the order will be rejected.
After SKUNG validates the order, it is placed on the exchange. The Exchange may accept or reject the order, based upon its internal rules and regulations.
SKUNG has provided the facility to modify (price and quantity) or cancel un-executed orders. If full funds are not available in the Account and an order is processed, your payment via internet banking, personal cheque payable to SKUNG must be promptly submitted to assure that such payment will be received on or prior to settlement date. If payment is not received by settlement date, or as market conditions warrant, your Account may be liquidated, without prior notification. In the event your Account is liquidated, you will be liable for any resulting losses and all associated costs incurred by SKUNG.
H) Cheque receipt/ payment
You can deposit amount in your Account by using Internet banking, or by personal cheque. Credit will be available in your Account after the funds are cleared.
I) Negative balance in your Account
There could be negative balance in your Account due to reasons like charges debit, inadvertently processing buy orders without available balance etc. In such cases, your payment via Internet banking, via personal cheque payable to SKUNG must be promptly submitted. If payment is not received in reasonable time, your Account may be liquidated, without prior notification. In the event your Account is liquidated, you will be liable for any resulting losses and all associated costs incurred by SKUNG.
J) Other shares transactions
All other transactions in your Demat Account (Account transfers for trades other than what is done with SKUNG), pledge/unpledge, off-market transfers and all such other transitions which CDSL allows can be done by mailing instruction slips to us, with the correct signatures of all holders. All rules, regulations and time deadlines prescribed for those transactions, as per the client agreement and CDSL rules will continue to apply for such transactions and instructions.
K) Exposure Limit
Client can buy or sell shares as per Exchange Guide lines. Different scrips attracts different margin and list of scrip is available on site.
L) Margin System:
Margin is payable as prescribed by the Exchanges and client is required to give any additional margin on open position as may be required by exchange. Client is also required to pay/ receive M-to-M losses on daily basis on open position.
M) Compliance action
We may initiate compliance action in case of any default in payments of any dues receivable by us from client. Compliance action includes but not limited to -- 1. Squaring off of outstanding transactions. 2. We have full LIEN ON CASH AND SECURITIES BALANCES in trading account /depository account of client and may sale such securities lying with us or stock lying in client depository account with us. Any loss arising out of squaring off or sale of securities will be to client account and we will not be liable for any cost or damage or any consequences thereof. 3. Locking / suspending client account and no further transactions will be allowed till the time all dues are settled or till the time as may deem fit by us. 4. Withholding payout of securities bought by client against any dues receivable by us. 5. Levy of interest @24% p.a. for any delay in receipt of our dues which includes pay in amount, margin amount, fees, commission or nay other charges.
We may take any one or all compliance actions as mentioned above and will intimate to the client on compliance action being taken and details thereof. To avoid compliance action, client should deposit additional funds, squared off outstanding transactions or sale other securities lying in his depository account to make his CCB positive. Client should always look at his exposure, M to M losses, pay in and other obligation, alerts forwarded by us, etc. to enable himself to take necessary action in a timely manner.
N) Disclosure of Information regarding client
SKUNG or STL hereby undertakes to maintain the details of the client as mentioned in the client registration form or any other information pertaining to the client, in confidence and that he shall not disclose the same to any person/entity except as required under the law:
Provided however that SKUNG or STL shall be allowed to share the details of the client as mentioned in the client registration form or any other information pertaining to the client with parties/entities other than required under law with the express permission of the client.