Terms & Conditions

This page contains important information regarding the terms and conditions which apply to your trading and demat account with SERNET Financial Services Pvt. Ltd. SERNET, being a Trading Member of BSE and NSE, registered with Securities & Exchange Board of India (“SEBI”) and having Registration No. INZ000189331 for Cash, Derivatives, Commodities and Currency Derivatives segments of BSE and NSE.

Mutual Fund distribution services will be rendered through SERNET Financial Services Pvt. Ltd, vide AMFI Registration Number (ARN) 35275.

Security Depository services for your account will also be enabled through SERNET Financial Services Pvt. Ltd, a Depository Participant having ID 1208 8200 using CDSL as the Depository having SEBI Registration no.: IN DP 401 2019. Commodity Repository services for your account will also be enabled through SERNET Financial Services Pvt. Ltd, a Repository Participant having ID 1234 1234 using CCRL as the Repository.

Access to your account and the usage of your account is subject to your compliance with all the terms and conditions set forth herein, read along with all documents, including but not limited to; applications forms and undertakings, signed by you during account opening. Please read this page carefully and retain it for future reference.

The website is owned, operated and maintained by SERNET Financial Services Pvt. Ltd (hereinafter referred to as “SERNET”), a Company incorporated under the Companies Act, 2013 having CIN: U67190MH2004PTC144955, and having its Registered Office at B 201 Hemu Classic Premises C td, 67 S V Road, Opp Newera Cinema, Malad West, Mumbai 400 064.

Please note that the information contained herein is subject to change without notice.

All orders for purchase, sale or other dealings in securities and other instructions routed through the SERNET’s Online Trading System via the Client’s Username shall be deemed to have been given by the Client.

The client agrees to provide information relating to customer user identification number, and such other information as may be required while placing orders on the telephone to determine the identity of the client.

The orders and instructions and all contracts and transactions entered into pursuant thereto and the settlement thereof will be in accordance with the Exchange Provisions.

SERNET may from time to time impose and vary limits on the orders which the Client can place through SERNET’s online trading System (including exposure limits, turnover limits, limits as to the number, value and/or kind of securities in respect of which orders can be placed, the companies in respect of whose securities orders can be placed, etc.). The Client is aware and agrees that SERNET may need to vary or reduce the limits or impose new limits urgently on the basis of the SERNET’s risk perception and other factors considered relevant by SERNET, and SERNET may be unable to inform the Client of such variation, reduction or imposition in advance. The Client agrees that SERNET shall not be responsible for such variation, reduction or imposition or the Client’s inability to route any order through SERNET’s Online Trading System on account of any such variation, reduction or imposition of limits. The Client understands and agrees that SERNET may at any time, at its sole discretion and without prior notice, prohibit or restrict the Client’s ability to place orders or trade in securities through SERNET.

Though orders will generally be routed to the Exchange’s computer systems within a few seconds from the time the order is placed by the Client on SERNET’s Online Trading System, SERNET shall not be liable for any delay in the execution of any order or for any resultant loss on account of the delay.

The client agrees SERNET may impose scrip wise surveillance or such other conditions as to scrip wise limits, etc. The client also understands that SERNET may impose various surveillances which may differ from client to client on the basis of the SERNET’s risk perception and other factors considered relevant by SERNET.

In case of a market order, the Client agrees that he will receive the price at which his order is executed by the exchange’s computer system; and such price may be different from the price at which the security is trading when his order is entered into SERNET’s Online Trading System.

Online account opening using AADHAAR is currently available only for residents of India opening accounts for an individual (HUFs, Corporate Bodies, NRIs, etc., not eligible).

When opening an account online using AADHAAR, data will be fetched from the KYC database and cannot be edited.

Pick up of required documents related to the account opening procedure is subject to availability of our representatives, given at any particular time and location.

The client agrees that all orders placed through the website shall be forwarded by the system to the Exchange. All orders placed otherwise than through the website shall be forwarded by the system to Exchange terminals or any other order execution mechanism at the discretion of SERNET. In the event that the order is placed during the trading hours, it shall be routed to and executed on the market system.

Online confirmation will be sent to the client by electronic mail or SMS after the execution of the order, trade and this shall be deemed to be valid delivery thereof by SERNET. It shall be the responsibility of the client to review immediately upon receipt, whether delivered to him by electronic mail or any other electronic means all confirmations of order, transactions, or cancellations. It shall be the responsibility of the client to follow up with SERNET for all such confirmations that are not received by him within a stipulated time.

The client shall bring any errors in any report, confirmation or contract note of executed trades (including execution prices, scripts or quantities) to SERNET’s notice in writing by an electronic mail or fax within twenty four hours of receipt of the concerned report, confirmation or contract note. Any other discrepancy in the confirmation or account shall be notified by the client to SERNET in writing via electronic mail or fax within twenty four hours from the time of receipt of the first notice. In all cases, SERNET shall have a right to accept or reject the client’s objection.

There may be a delay in SERNET receiving the reports of transaction, status, from the respective exchanges or other persons in respect of or in connection with which SERNET has entered into contracts or transactions on behalf of the clients. Accordingly, SERNET may forward to the client late reports in respect of such transactions that were previously unreported to him as been expired, canceled or executed. The client shall not hold SERNET responsible for any losses suffered by the client on account of any late reports, statements or any errors in the report/statements computed by or received from any exchange.

The client agrees that if for any circumstance or for any reason, the markets close before the acceptance of the Order by the Exchange, the order may be rejected. The client agrees further, that SERNET may reject Orders if the same are rejected by the Exchange for any reason. In case of rejection of order due to rejection by the Exchange, the client agrees that the order shall remain declined and shall not be re-processed, in any event.

SERNET may, at its sole discretion, reject any order placed on the website or in any other manner due to any reason, including but not limited to the non-availability of funds in the trading account of the client, non-availability of securities in the Demat account of the client with a designated depository participant, insufficiency of margin amount if the client opts for margin trading, suspension of scrip- specific trading activities by or on an Exchange and the applicability of circuit breaker to a scrip in which orders are placed.

The client agrees that, if the order is not accepted on the website for any reason, SERNET shall have the right to treat the order as having lapsed.

The client is aware that the electronic trading systems either at the Exchange or in the office of SERNET offices are vulnerable to temporary disruptions, breakdowns or failures. In the event of non- execution of trade orders or trade cancellation due to the happening of such events or vulnerabilities due to failure / disruption / breakdown of system or link, SERNET shall be entitled to cancel relative request/(s) with the Client and shall not be liable to execute the desired transactions of the client’s. In such event, SERNET does not accept responsibility for any losses incurred / that may be incurred by the Client due to such eventualities which are beyond the control of SERNET.

SERNET may at its sole discretion permit execution of orders in respect of securities, irrespective of the amount in the balance of the account of the client.

The client agrees to abide with and be bound by all the rules, regulations and bye-laws of the Exchange as are in force pertaining to the transactions on his behalf carried out by SERNET and the orders placed by him on the website or any other manner.

SERNET shall not be responsible for any order, that is made by the Client by mistake and every order that is entered by the Client through the use of the allotted user name and the security code(s) shall be deemed to be a valid order for which the Client shall be fully responsible.

Cancellation or modification of an order pursuant to the client’s request in that behalf is not guaranteed. The order will be canceled or modified only if the client’s request for cancellation and modification is received and the order is successfully canceled or modified before it is executed. Market orders are subject to immediate execution wherever possible.

The client shall not be entitled to presume an order having been executed, canceled or modified until a confirmation from SERNET is received by the client. However, due to technical other factors, the confirmation may not be immediately transmitted to or received by the client and such a delay shall not entitle the client to presume that the order has not been executed canceled or modified unless and until SERNET has so confirmed in writing.

The pending orders shall be governed as per the exchange systems after the market is closed for the day.

SERNET shall issue contract notes in terms of the SEBI (Brokers and Sub-Brokers) Rules and Regulations, 1992, within 24 hours of the execution of the trade. Such a contract note, if issued in physical form shall be dispatched by SERNET by courier, at the address mentioned in this agreement or at any other address expressly informed to SERNET by the client. The client agrees that SERNET to issue the contract note in digital form which shall be sent by way of electronic mail to the address provided by the client. SERNET shall not be responsible for the non-receipt of the trade confirmation due to any change in the correspondence address of the Client not intimated to SERNET in writing. The client is aware that it is his responsibility to review the trade confirmations, the contract notes, the bills or statements of account immediately upon their receipt. All such confirmations and statements shall be deemed to have been accepted as correct if the client does not object in writing to any of the contents of such trade confirmation/intimation within 24 hours to SERNET.

SERNET may allow/disallow client from trading in any security or class of securities, or derivatives contracts and impose such conditions including scrip-wise conditional trading for trading as it may deem fit from time to time.

The Client agrees and undertakes to immediately deposit with SERNET such cash, securities or other acceptable security, which SERNET may require as margin. The Client agrees that SERNET shall be entitled to require the Client to deposit with SERNET a higher margin than that prescribed by the Exchange. SERNET shall also be entitled to require the Client to keep permanently with SERNET a margin of a value specified by SERNET so long as the Client desires to avail of the Online Trading Service of SERNET.

The Margin will not be interest bearing. SERNET shall have, at its sole discretion, the irrevocable right to set off a part or whole of the Margin i.e., by the way of appropriating of the relevant amount of cash or by sale or transfer of all or some of the Securities which form part of the Margin, against any dues of the Client or of a member of the group of the Client (for the purposes of these Terms, “Group” shall mean all the individuals, group companies, firms, entities and the persons as specified in the schedule to the Member Client Agreement) in the event of the failure of the Client or a member of the Group of the Client to meet any of their respective obligations under these Terms.

The client agrees and authorises SERNET to determine the market value of securities placed as margin after applying a haircut that SERNET may deem appropriate. The client undertakes to monitor the market value of such securities on a continuous basis. The client further undertakes to replenish any shortfall in the value of the margin consequents to a fall in the market value of such securities placed as margin immediately whether or not SERNET intimates such shortfall.

SERNET may at its sole discretion prescribe the payment of Margin in the form of cash instead of or in addition to margin in form of securities. The Client accepts to comply with the requirement of SERNET with regards to payment of Margin in the form of cash immediately. Without prejudice to the stock broker’s other rights (including the right to refer a matter to arbitration), the stock broker shall be entitled to liquidate / close out all or any of the client’s positions for non- payment of margins or other amount, outstanding debts, etc., and adjust the proceeds of such liquidation / close out, if any, against the client’s liabilities / obligations. Any and all losses and financial charges on account of such liquidation / closing-out shall be charged to and borne by the client.

The client agrees to abide by the exposure limits, if any, set by the stock broker or by the Exchange or Clearing Corporation or SEBI from time to time.

The client is also aware that SERNET is required to deposit sufficient margin with the Exchange to enable all its eligible clients to trade subject to such limits as may be imposed by SERNET on the basis of SERNET’s Risk perception and other factors considered relevant by SERNET. However, there may be circumstances when the deposits made by SERNET with the Exchange may not be sufficient in times of extreme volatility and trading terminals of SERNET may get temporarily suspended because of the cumulative effect of non-meeting of obligation by various clients as per this agreement. In these circumstances, no client shall have the right to claim any damages from SERNET for any loss that they might incur on account of such suspension of trading.

The Client agrees that any securities/cash placed by him/her/it as margin may, in turn, be placed as margin by SERNET with the Exchanges or banks or such other institution as SERNET may deem fit. The Client authorises SERNET to do all such acts, deeds and things as may be necessary and expedient for placing such securities/cash with the Exchanges/Banks/Institutions as margin.

Any reference in these terms to sales or transfer of Securities by SERNET shall be deemed to include sale of the Securities which form part of the Margin maintained by the Client with SERNET. In exercise of SERNET’s right to sell securities under the Agreement, the Client agrees that the choice of specific securities to be sold shall be solely at the discretion of SERNET.

Funds pay-in to SERNET – The Client agrees that all payments due to SERNET will be made within the specified time and in the event of any delay, SERNET may refuse, at their discretion, to carry out transactions or closeout the position and the costs/losses if any, thereof shall be borne solely and completely by the client. All payments made to SERNET shall be from the account of the client and shall not to be from any third party.

Funds pay-out from SERNET – Notwithstanding anything contained in any other agreement or arrangement, if any, between the parties hereto, the client hereby authorizes SERNET to release all payments due to him from the trading account maintain with SERNET, against specific request in this behalf.

Securities pay-in to SERNET – All delivery to be effected to SERNET for a trade, must be made within 24 hours from the execution of the sale order or one day before the pay-in date, whichever is earlier. Losses, if any, that may accrue in the event of a default in completing the delivery on the exchange by SERNET as a result of any delay in the delivery by the client, shall be borne solely and completely by the client. Losses for the purposes of this clause shall include auction debits/ penalty charges, if any incurred as a result of non-delivery of securities on the settlement date on the exchange. No third party shares will be sold through SERNET or third party payment should be made to SERNET and client will be solely responsible for any violation. If the client has sold any securities from the exchange against purchase in previous settlements, such sale shall be at the sole risk as to costs and consequences thereof of the client.

Securities pay-out from SERNET – SERNET may directly credit the demat account of the client with the depository participant or maintain the securities account with SERNET on a running account basis.

Provided that if the order placed by the client through the website or otherwise is for securities which are in the no-delivery period, such securities shall be credited to the trading account of the client only at the time of settlement of trades, as per the schedule of the Exchange. However, if any sum due from the client, SERNET may withhold the credit of securities to the demat account of the client. However, the client authorizes SERNET to withhold the securities to meet liabilities of client to SERNET under this agreement.

SERNET is entitled to consider any sum or money or security lying to the credit of the client as margin received.

The Client hereby warrants that he is capable of executing the present agreement and that the terms of the present are not in contravention of any rights of any party with whom such client has any agreements, at any time prior to the execution of this agreement.

He agrees to provide and continue to provide all details about themselves as may be required by SERNET, including but not restricted to PAN Number or Unique Identification Number (issued by SEBI), and states all details and facts represented to SERNET are true.

The Client is aware and acknowledges that trading over the internet involves many uncertain factors and complex hardware, software, systems, communication lines, peripherals, etc., which are susceptible to interruptions and dislocations; and the Online Trading Service of SERNET may at any time be unavailable without further notice. SERNET and the Exchange do not make any representation or warranty that the Online Trading Service of SERNET will be available to the Client at all times without any interruption. The Client agrees that he shall not have any claim against the Exchange or SERNET on account of any suspension, interruption, non-availability or malfunctioning of the Online Trading System or Service of SERNET or the Exchange’s service or systems for any reason whatsoever.

SERNET states that it has complied with and will continuously comply and if not proposes to comply with all statutory and regulatory directions to offer the Internet Trading services through the website www.sernetindia.com or any other owned/operated/maintained website/platform and for dealing in cash and derivatives segment of the exchange.

The Client warrants that all or any of the securities deposited by him with SERNET in respect of margin requirements or otherwise, are owned by him and the title thereof is clear and free of encumbrances.

The Client/s agree to indemnify and hold SERNET harmless against any loss that may be suffered by it, its customers or a third party or any claim or action that may be initiated by a third party which is in any way the result of improper use of user ID and password by the Client/s.

The Client hereby confirms and warrants that the Client authorises SERNET to take all such steps on the Client’s behalf as may be required for provisions or to complete or settle any transactions entered into through or with SERNET or executed by SERNET on behalf of the Client. However, nothing herein shall oblige SERNET to take such steps.

The Client agrees to pay to SERNET brokerage, commission, fees, service tax and other taxes and transaction expenses as they exist from time to time and as they apply to the Client’s account and transactions, and the services that he receives from SERNET.

A schedule of brokerage, fees and commissions, applicable service and other taxes and other transaction expenses shall be provided by SERNET to the Client from time to time upon request by the Client.

The Client agrees that none of the services available on the website shall amount to investment advice on the part of SERNET.

The Client agrees that in the event of SERNET or any employee or official of SERNET, providing any information, recommendation or advice to the client, the client may act upon the same at the sole risk and cost of the client, and SERNET shall not be liable or responsible for the same.

SERNET, and its officers, directors, partners, employees, agents and affiliates will have no liability with respect to any investment decisions or transactions of the client.

Any online platform being offered or will be offered in future must be considered as only an order collection platform that collects orders on behalf of clients and places them on BSE StAR MF for execution. The Client expressly agrees that SERNET is not liable or responsible and does not represent or warrant for any damages regarding non-execution of orders or any incorrect execution of orders with regard to the funds chosen by the Client due to, but not being limited to, any link/system failure, sufficient/insufficient funds in the trading account which may occur at the end of the client, SERNET or the exchange platform.

• Funds required for mutual fund purchases on such platform are not blocked on a real-time basis, they are debited at an end of day basis. After having placed any fund order through such platform, if you have used the same funds to trade in the secondary markets, your account may go into a debit balance and you would be liable for all subsequent charges including any interest and margin penalty.

SERNET does not warrant that the service will be uninterrupted or error-free. The service is provided in an “as is” and “as available” basis without warranties of any kind, either express or implied, including, without limitation, those of merchantability and fitness for a particular purpose. The client agrees that SERNET shall not be held responsible for delays in transmission of orders due to breakdown of the system or failure of communication facilities either due to the fault of the systems of SERNET or of the Exchanges or otherwise or for any other delay beyond the reasonable control of SERNET due to a breakdown or failure of communication facilities or for any other delay beyond the reasonable control of SERNET.

All modification to this Agreement shall be made solely at the discretion of SERNET and shall be intimated to the client by suitable modification to the terms and conditions or other applicable section on the website or in any other manner.

In the event of death or insolvency of the client, winding up or liquidation, or their otherwise becoming incapable of receiving and paying for or delivering or transferring securities which the client has ordered to be bought or sold, SERNET may close out the transaction of the client and the client or his legal representative shall be liable for any losses, costs and be entitled to any surplus which may result therefrom.

The client is aware that authentication technologies and strict securities measures are required for internet trading through order routed system and undertake to ensure that the password of the client and /or their authorized representatives are not revealed to any third party. The client also agrees to indemnify SERNET from any loss, injury, claim or any action instituted against SERNET arising from the misuse of the password by any party.

SERNET shall not be responsible for delay or default in the performance of their obligations due to contingencies beyond their control, such as (including but not limited to) losses caused directly or indirectly by exchange or market rulings, suspension of trading, fire, flood, civil commotion, earthquake, war, strikes, failure of the systems, failure of the internet links or government / regulatory action.

In the event of any one or more of the provisions contained in this Agreement becoming invalid, illegal or unenforceable in any respect under any law for the time being in force, the validity, legality, and enforceability of the remaining provisions contained herein shall not in any way be prejudiced or affected thereto.

The Refund & Cancellation policy for all payments made towards account opening or any other services using any mode of payment shall stand as under:

• The Fees paid towards account opening charges for enabling equities, commodities, currencies or any other services is non-refundable.
• Pick up of required documents related to the account opening procedure is subject to availability of our representatives, given at any particular time and location.
• In case your account has not been opened by SERNET Team, after the tenth day passing by from the day of collection of all necessary supporting documents and receipt of all due authorizations from you, you may request for a full refund of the charges as paid by you towards account opening.
• In case you have paid the charges relating to account opening multiple times, please create a ticket here and we will initiate the necessary procedure to refund your money.

Note: The completion of the refund procedure is subject to agencies such as banks, payment gateways.

All notices, correspondences or communications issued under this agreement shall be served in any one or more of the following modes of communications and such notice or communication shall be served at the ordinary place of residence and/or last known web address / residing address and/or at the ordinary business address of the party to this agreement such as –

• By Hand
• Delivery by Post
• By Registered Post
• Under Certificate of Posting
• By eMail or Fax
• By affixing it on the door at the last known business or residential address.
• By oral communication to the party or on the last known telephone number or on the recording machine of such number.
• By advertising in at least one prominent daily newspaper having circulation in the area where the last known business or residential address of the party is situated.
• By notice posted on the notice board of the Exchange if no address is known. Any communication sent by SERNET to the Client shall be deemed to have been properly delivered or served, if such communication is returned on SERNET as unclaimed / refused / undelivered, if the same was sent in any one more of the above modes of communication to the ordinary place of residence and/or last known web address/residing address and/or at the ordinary business address of the party to this agreement.