i Cici Trading Conditions

8/13/2019 i Cici Trading Conditions

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Confirmation for Derivatives trading

To

ICICI Securities Limited,

Shree Sawan Knowledge Park,

Plot No. D-507, T.T.C. Industrial Area,

MIDC, Turbhe,

Navi Mumbai-400 705.

SEBI Registration Number :- INF 010773035 (BSE Derivatives)

SEBI Registration Number :- INF 230773037 (NSE Derivatives)

Clearing No - 103 (BSE); M50519 (NSCCL)

Sub: Application for dealing/ trading in Derivatives Segment

I/We hereby declare that I/ We wish to deal/trade in the Derivatives Segment (BSE &

NSE) provided by you.

As per SEBI Circular MIRSD/SE/Cir-19/2009 dated December 3, 2009, Brokers can

enable clients to trade in derivatives segment only if they have collected documents

pertaining to financial details of the clients. In this regard, I/We hereby authorize

ICICI Securities Ltd. (I-Sec) to take bank statement or demat statement of my ICICI

Bank or demat account linked with my trading account. I request you to kindly

consider the same as evidence in support of my financial details and enable

derivatives segment in my trading account.

I/We hereby declare that my KYC details furnished by me to ICICI Securities and as

appearing in my trading a/c like address, PAN, Email Id, Telephone Number, etc. are

true and correct to the best of my/our knowledge and belief and I/We undertake toinform you of any changes therein immediately.

I/We understand that the Member-Client Agreement executed in BSE/NSE is

construed as a Agreement for the Derivatives Segment also or the Document

mentioning Rights and Obligation of Stock Brokers and Clients is construed as a

document covering rights and obligations for Derivatives Segment also. I/WE hereby

confirm that I/We have read and accepted all the terms and conditions given below.

Thanking You

A. TERMS AND CONDITIONS GOVERNING TRADING IN FUTURES AND

OPTIONS THROUGH ICICI SECURITIES LIMITED (FOR NON SPAN MARGIN

CUSTOMERS)

The following are the specific terms and conditions governing trading in Futures &

Options (NON SPAN MARGIN FACILITY) by the Client through ICICI SecuritiesLimited ("ICICI Securities"). Please proceed to trade in Futures & Options through


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ICICI Securities only if the same are acceptable to you. Acceptance of all the Terms

and Conditions contained herein are a prerequisite for trading in Futures & Options

through ICICI Securities.

Definitions:

In these terms and conditions (hereinafter referred to as the "Terms and Conditions"),the following words and phrases have the meaning stated hereunder unless

indicated otherwise:

"Account" shall mean the brokerage account of the Client with ICICI Securities

Limited.

"American Option" gives the holder of the option the right, but not the obligation, to

buy or sell the underlying instrument on or before the expiry date.

"Calendar spread" means risk offsetting positions in contracts expiring on differentdates in the same underlying.

"Call" is the Right but not the obligation to purchase the underlying Asset at the

specified strike price by paying a premium. The Buyer of a Call has the Right but not

the Obligation to Purchase the Underlying Asset at the specified strike price by

paying a premium whereas the Seller of the Call has the obligation of selling the

Underlying Asset at the specified Strike price.

"Client" shall mean any person who has executed the Client Agreement with ICICI

Securities and executed a Power of Attorney in favour of ICICI Securities and has anexisting and valid Account.

"European option" gives the holder of the option the right, but not the obligation, to

buy or sell the underlying instrument only on the expiry date. This means that the

option cannot be exercised early. Settlement in European Option is based on a

particular strike price at expiration.

"Facility" shall mean the facility offered by ICICI Securities to enable the Client to

trade in Futures and Options against the margin, which may be in form of cash or

securities, as a security to meet Client's obligations arising from Transactions inFutures and Options.

"Initial margin" means the amount of margin (either in the form of cash or eligible

securities) required by ICICI Securities to be deposited with it the Client before

undertaking Transactions in Futures and Options.

"Limit" means the amount (primarily arising from the funds / securities allocated or

furnished) available with the Client to submit as Margin required against positions

that the Client has already taken or proposes to take.

"Margin" is the security offered/provided by the Client, whether in form of cash or


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securities, for due settlement of all the obligations of the Client arising out of or in

connection with the Transactions.

"Minimum Margin" is the margin amount that the Client is required to maintain with

ICICI Securities at all times to keep the clients positions in Futures and Options intact

and without getting it squared off"Positions" are long or short positions in any Transactions.

"Premium" is the down payment that the Buyer of Call or Put is required to make for

entering into the Options Transaction.

"Put" is the Right but not the obligation to sell the underlying Asset at the specified

strike price by paying a premium. The Buyer of a Put has the Right but not the

Obligation to Sell the Underlying Asset at the specified strike price by paying a

premium whereas the Seller of the Put has the obligation of Buying the Underlying

Asset at the specified Strike price.

"Strike Price" is the price at which the underlying asset is agreed to be bought or

sold.

"Transactions" is conduct of Futures or Options trading by the Client through the

website.

"Underlying" is an index or stock enabled for trading on Futures /Options.

"In-the-money": A Call Option is said to be "In-the-Money" if the strike price is lessthan the market price of the underlying stock. A Put Option is In-The-Money when the

strike price is greater than the market price.

"Out-of-the-Money": A Call Option is said to be "Out-of-the-Money" if the strike price

is greater than the market price of the underlying stock. A Put option is Out-Of-

Money if the strike price is less than the market price.

"Website" refers to the website at the URL www.icicidirect.com.

- The singular includes the plural (and vice versa).

- The index to and the headings in these Terms and Conditions are inserted for

convenience of reference only and are to be ignored in construing and interpreting

these Terms and Conditions.

- Reference to the words "include" or "including" shall be construed without

limitation.

- Reference to a gender shall include references to the female, male and neuter

genders.


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Applicability:

These Terms and Conditions, along with the Client Agreement/Document mentioning

Rights and Obligation of Stock Brokers and Clients and the Power of Attorney

executed by the Client in favour of ICICI Securities form the contract between the

Client and ICICI Securities for availing of the Facility. Nothing contained herein shall

be construed as derogatory to the terms of the Client Agreement/Document

mentioning Rights and Obligation of Stock Brokers and Clients and the Power of

Attorney executed by the Client. By availing of the Facility, the Client acknowledges

as having read, understood and accepted these Terms and Conditions.

Terms & Conditions pertaining to trading in Options:

The Client agrees that ICICI Securities may require the Client to provide such margin

(in such form and manner as acceptable to ICICI Securities) depending on the Stock

and market volatility on different contracts as it deems fit in its sole discretion as

necessary for Risk mitigation. This margin requirement may be more than the marginprescribed by the Stock Exchange. The margin may be taken in cash or in form of

securities as may be acceptable to ICICI Securities. In event the Client offers

securities as margin to ICICI Securities, then the Terms and conditions as hereunder

shall apply.

The Client agrees that ICICI Securities may, in its sole discretion, change the margin

requirement on Transactions where the Client has taken or proposes to take a

position, depending on its own risk mitigation measures and without intimating or

consulting the Client.

In case of upward revision of the margin requirement, the Client agrees to allocate

additional margin (in form of cash or securities as may be acceptable to ICICI

Securities) to continue with open position taken in connection with the Transaction.

The Client agrees that ICICI Securities shall have the discretion to select stocks that

will be enabled for trading in the Options.

In-the-Money or Out-of-Money would be considered while calculating the Margin

requirement on Sell orders. In case of In-the-Money, the seller of the option would be

required to bring in additional Margin based on the difference between Current

market price (CMP) and the Strike price in case of Call, and difference between

Strike price and the CMP in case of Put. In case of Out of money, the seller of theOption may be given the benefit and may be permitted to provide lesser Margin

depending upon the difference between Strike price and the CMP in case of Call and

difference between CMP and the Strike price in case of Put. The Margin so arrived at

shall be compared with the Short Option Margin Percentage (SOMC) and the higher

of the two percentages shall be charged.

The Client agrees that ICICI Securities may, in its sole discretion, require the Client

to provide additional / further margin depending upon the Client's positions, in form

and manner acceptable to ICICI Securities. If the limit is not sufficient to meet the

demand for additional Margin, ICICI Securities may close out any or all openpositions. ICICI Securities shall not be required to make a margin call or otherwise


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inform the Client that the margin as furnished by the Client has fallen below the

required level and it shall be the responsibility of the Client to regularly monitor and

review the Margin availability and furnish the additional Margin to ICICI Securities.

ICICI Securities has the right to close out the open position at any time (without

consulting or notifying the Client) in case the Client does not satisfy the additional

margin requirements. The Client undertakes to maintain sufficient free limit to provide

for additional margin as and when required by ICICI Securities.

Exercise: In case of an American option, the Client can place an exercise request up

to the Open (Call/Put) buy position anytime except on the Last date of the contract.

The Client may place an exercise request for less than the open positions in market

lots. The exercise request can be placed only at specified time intervals when the

exercise market is open. Exercise request cannot be placed on the last day of the

Contract. On the Expiry day of the Contract, the exchange would automatically

exercise the (Call/Put) Buy position in case the Position is In-the-Money. In case of

exercise request placed by the Client or exercised by the Stock Exchange, theexercise request is accepted only if the Position is In-the-Money. The exercised

request is reduced from the open positions in the Marginable sell order position.

Hence the sell order position would be subject to Margin requirement, if the quantity

of sell order exceeds the difference between the buy position and the exercise

request quantity. If the Exercise Request is not accepted by the exchange at the end

of the day, the Exercise Request is marked as rejected at the end of the day, so that

the Client can place a fresh Exercise Request the next day.

Assignment: In case the Client has a Sell position, the Contract may be assigned to

the Client and in such an event the Client undertakes to Buy the Underlying in caseof Put and sell the Underlying in case of Call. However, if the Contracts are settled in

cash, the Client would have to pay or receive the cash in case of an assignment. The

Client understands that there can be part Assignment as may be decided by the

Stock Exchange in its sole discretion.

Mark-to-Market process: In case of Short Positions taken by the Client i.e. the Client

is the Seller of a Call or Put, Mark to Market process (MTM) will be run on a regular

basis. As soon as the Client places an order, which results in a position, a Trigger

price would be indicated to the Client. Whenever the Underlying price of the Shares

goes above the Trigger Price in case of Call, the Contract would be in the MTM loop.In such event, additional Margin shall be re-calculated based on the increase in price

and if the Limit is found to be insufficient or the Client fails to make available the

additional Margin, then the orders in the same contract shall be cancelled. ICICI

Securities may, at its sole discretion, square off the position taken by the Client.

As soon as the Client places a Sell Put order, which results in a position, a Trigger

price would be indicated to the Client. Whenever the Underlying price of the shares

goes below the Trigger price in case of Sell Put, the Contract would be in the MTM

loop. In such event, additional Margin shall be re-calculated based on the decreasein price and if the Limit is found to be insufficient or the Client fails to make available


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the additional Margin, then the orders in the same contract shall be cancelled. ICICI

Securities may, at its sole discretion, square off the position taken by the Client.

If the Client does not square off the transaction till the last day of the contract, the

position will be marked as closed off and the same cannot be exercised or assigned.

Brokerage shall be charged to the Client as per the brokerage plan opted by the

Client from time to time.

Terms & Conditions pertaining to trading in Futures:

The Client agrees that the Client's positions are continuously monitored and the

Client agrees to provide Margin (including additional Margin) as may be determined

by ICICI Securities from time to time. If the available Limit is not sufficient to meet the

demand for additional Margin, ICICI Securities may close out the open position taken

by the Client and the Client shall be solely responsible for any losses arising out

account of the same. ICICI Securities shall not be liable for making a demand forMargin or otherwise inform the Client that the Margin has fallen below the required

level and it shall be the responsibility of the Client to regularly monitor and review the

Margin availability and furnish the additional Margin to ICICI Securities. ICICI

Securities reserves the right to close out the open position at any time (without

consulting the Client) in case the Client does not satisfy the additional Margin

requirements. The Client shall maintain sufficient Limit to provide Margin as and

when required by ICICI Securities.

The Client agrees that ICICI Securities shall have the discretion to select contracts

that will be enabled for trading in Futures and the individual margin percentage, bothMinimum margin and Initial margin, in the F&O segment. The Margin may be taken

in cash or in form of securities as may be acceptable to ICICI Securities. In event the

Client offers securities as margin, then the Terms and conditions as hereunder shall

apply.

The Client agrees that in case of an order in Futures, initially, Margin shall be blocked

at the applicable Margin requirement of the order value. For market orders, margin

shall be blocked considering the order price as the last traded price of the contract.

On execution of the order, the same shall be suitably adjusted as per the actual

execution price of the market order.

Margin requirement may be changed by ICICI Securities during the life of the

contract. If due to the increased volatility in the prices, the margin requirement may

be increased and in such event the Client undertakes to allocate additional

funds/securities to continue with open position. If such Margin requirement is not

met, the contract may come in MTM loop and may be squared off by ICICI Securities

due to insufficient Margin. The Client undertakes to maintain sufficient Limit to

safeguard the open position from being squared off or pending orders cancelled.

The Client agrees that Margin is blocked only on those new future orders, which may

result into increased risk exposure. For calculating the margin at order level, valuesof all buy orders and sell orders (in the same underlying-group as may be


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determined by ICICI Securities) is arrived at. Margin is levied on the higher of two i.e.

if buy order value is higher than sell order value, only buy orders will require Margin

being furnished and vice versa.

Spread position: Spread position would attract Spread Initial Margin Percentage

(SIM) and Spread Minimum Margin Percentage (SMM) in connection with margincalculation instead of Initial Margin Percentage and Minimum Margin Percentage.

Spread position value is calculated by multiplying the weighted average price of

position in far month contract and spread position quantity. Spread margin

percentage is then applied to spread position value to arrive at spread margin. ICICI

Securities shall in its sole discretion, determine the contracts which can form spread

positions against each other.

Margin is blocked only on orders that result in an increased Risk exposure. Margin

may not be recovered from an order, which is cover in nature. If a Position of

opposite nature is present then the Order is reduced by the opposite position, if theopposite position is greater than the order, then the order may not require Margin.

However, ICICI Securities shall have the sole discretion to determine the Margin

Requirement.

Available margin: Available margin is calculated by deducting MTM loss from Margin

blocked with respect to a position. When the available margin is below the Minimum

Margin required, Margin required on executed position is re-calculated by taking

Current Market Price (CMP) of respective position and Initial Margin Percentage and

spread margin Percentage, as the case may be. Available Margin is then compared

with the required Margin and amount for additional Margin requirement is arrived at.

When the Intra-day MTM process is run and if it is observed that the available Margin

has fallen below the Minimum Margin required, ICICI Securities would block

additional Margin required out of the Limits available. In case Limits are not

sufficient to meet the additional Margin requirements then ICICI Securities may place

a square off order at market rate to close the position. However, before placing the

square off order all pending futures orders in that underlying-group (contracts having

same underlying and recognized in the same group for spread recognition at the

discretion of ICICI Securities) may be cancelled by ICICI Securities.

The Client hereby undertakes to allocate additional Margin, suo moto, on any openposition, to make available sufficient Margin against the same in order to avoid

square off by ICICI Securities due to insufficient Margin

The Client agrees that in case of insufficient Limits, to safeguard its interest ICICI

Securities may block and debit any unallocated funds lying in Client's Bank Account

integrated with the Account and /or debit securities lying in Client's demat account

integrated with the Account towards dues recoverable from the client.

In case of profit on a future position or where the available Margin is in excess of the

Margin required, the Margin in excess of required Margin (in profitable position) may

be released when ICICI Securities runs its End of Day (EOD) MTM process or whenthe Client squares off the open position completely before EOD.


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Every day the settlement of open futures position will take place at the closing price

of the day. In case of profit at EOD MTM Process run, Limits shall be increased by

the amount of profit and in case of loss, Limits shall be reduced to that extent. Next

day the position would be carried forward at the previous trading day closing price at

which last EOD MTM Process was run. Closing price for all the contracts is providedby the exchange at the end of the day. Margin is re-calculated at the closing price at

which EOD MTM process is run and differential Margin is blocked or released, as the

case may be. For Margin calculation, the specified Initial Margin Percentage and

specified spread margin Percentage is taken into consideration.

Due to daily MTM and pay-in/pay-out, Limits may become lesser over a period of

time and because of the same, open position may fall in MTM loop and may get

squared off unless the Client provides fresh Limits. Pay-in amount shall be debited

from the Client's Bank account (first from the amount allocated for the Transactions

and then from the free unallocated balance) and pay-out amount shall be credited tothe Client's Bank Account.

All MTM losses will be recovered by ICICI Securities on a daily basis by debiting the

clients bank account.

Split of Contract: In case of contracts which fall under Spread Position, four (4)

calendar days (or such other number of days as determined by ICICI Securities from

time to time) prior to the expiry of a contract, open position of that contract would be

taken out of Spread Position and subjected to normal Initial Margin requirement.

Position in such separated contracts would be shown separately. Limits would bereduced appropriately to apply Initial Margin on near month contract. If Limits are

insufficient for application towards the Initial Margin requirement, the Margin

available in a group from which the near month contract was moved will also be

utilized to make good the short fall. After moving the near month contract from the

existing group to separate group, Margin requirement for the existing group will be re-

calculated and Limits would be reduced appropriately.

In case the contract remains open till the contract expires, ICICI Securities as well as

the Exchange would expire the position on the last day of contract after running EOD

MTM Process and the position would be closed at the closing price of the spot(equity) market. Margin blocked on such expired position will also be released and

the Limits would be appropriately increased after adjusting profit/loss on close out.



Margin Requirement:

The Client agrees that ICICI Securities may at its sole discretion, change the margin

requirement on the Transactions, in which the Client has taken or proposes to take

positions. In case of upward revision of the margin requirement, the Client agrees toallocate additional funds/securities as margin to continue with open positions taken in


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B. TERMS AND CONDITIONS GOVERNING TRADING IN FUTURES AND

OPTIONS (FOR SPAN MARGIN CUSTOMERS) THROUGH ICICI SECURITIES

LIMITED

The following are the specific terms and conditions governing trading in Futures &

Options using the SPAN based margining system by the Client through ICICI

Securities Limited ("ICICI Securities"). These terms and conditions are applicable to

those Clients who have been provided SPAN based margin facility in F&O. Pleaseproceed to trade in Futures & Options through ICICI Securities only if the same are

acceptable to you. Acceptance of all the Terms and Conditions contained herein are

a prerequisite for trading in Futures & Options through ICICI Securities.

Presently, SPAN Margin facility is not offered in BSE by ICICI Securities. Hence,

these SPAN based margin terms and conditions are not applicable for trading in

Futures and Options in BSE presently and the same is applicable only to those

Clients who have been provided SPAN based margin facility in NSE. Present NON

SPAN F&O terms and conditions would be applicable to Clients trading in Futures

and Options in BSE. These SPAN margin F&O terms and conditions would beapplicable to Clients for trading in Futures and Options in BSE as and when same is

offered to the Client in BSE.

Definitions:

In these terms and conditions (hereinafter referred to as the "Terms and Conditions"),

the following words and phrases have the meaning stated hereunder unless

indicated otherwise:

"Account" shall mean the brokerage account of the Client with ICICI Securities

Limited.

"American Option" gives the holder of the option the right, but not the obligation, to

buy or sell the underlying instrument on or before the expiry date.

"Calendar spread" means risk offsetting positions in contracts expiring on different

dates in the same underlying.

"Call" is the Right but not the obligation to purchase the underlying Asset at the

specified strike price by paying a premium. The Buyer of a Call has the Right but not

the Obligation to Purchase the Underlying Asset at the specified strike price bypaying a premium whereas the Seller of the Call has the obligation of selling the


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Underlying Asset at the specified Strike price.

"Client" shall mean any person who has executed the Client Agreement with ICICI

Securities and executed a Power of Attorney in favour of ICICI Securities and has an

existing and valid Account.

"Deficit Margin" is the amount of excess margin arising out of difference between

revised Initial Margin computed considering latest risk parameter file received from

exchange/prices/margin percentage and Initial Margin already blocked on existing

positions of the Client.

"Deficit Loss" is the amount of excess notional loss arising out of difference between

revised notional loss computed considering latest prices and notional loss amount

already blocked on existing positions of the Client.

"European option" gives the holder of the option the right, but not the obligation, tobuy or sell the underlying instrument only on the expiry date. This means that the

option cannot be exercised early. Settlement in European Option is based on a

particular strike price at expiration.

"Exposure Margin" is the margin amount required by ICICI Securities on the notional

value of positions to be created by the Client or on existing positions based on the

prices of the relevant contract or underlying which is added to arrive at Initial Margin.

"Facility" shall mean the facility offered by ICICI Securities to enable the Client to

trade in Futures and Options against the margin, which may be in form of cash orsecurities, as a security to meet Client's obligations arising from Transactions in

Futures and Options.

"Initial margin" means the amount of margin (either in the form of cash or eligible

securities) required by ICICI Securities to be deposited with it by the Client before

undertaking Transactions in Futures and Options and also on a continuing basis

thereafter on open positions which shall include SPAN Margin plus Exposure Margin

and such other additional margin as may be specified by ICICI Securities from time

to time.

"Limit" means the amount (primarily arising from the funds / securities allocated or

furnished) available with the Client to submit as Margin required against positions

that the Client has already taken or proposes to take.

"Margin" is the security offered/provided by the Client, whether in form of cash or

securities, for due settlement of all the obligations of the Client arising out of or in


"Minimum Margin" is the margin amount that the Client is required to maintain with

ICICI Securities at all times to keep the clients positions in Futures and Options intactand without getting it squared off.


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"Positions" are long or short positions in any Transactions.

"Premium" is the down payment that the Buyer of Call or Put is required to make for

entering into the Options Transaction.

"Put" is the Right but not the obligation to sell the underlying Asset at the specified

strike price by paying a premium. The Buyer of a Put has the Right but not the

Obligation to Sell the Underlying Asset at the specified strike price by paying a

premium whereas the Seller of the Put has the obligation of Buying the Underlying

Asset at the specified Strike price.

"SPAN (Standard Portfolio Analysis of Risk) Margin" is the margin amount computed

based on SPAN margin system adopted by Exchanges/Clearing Houses which is

required by ICICI Securities from the Client for creating positions in Futures and

Options and is used to arrive at Initial Margin.

"Strike Price" is the price at which the underlying asset is agreed to be bought or

sold.

"Transactions" is conduct of Futures or Options trading by the Client through the

website.

"Underlying" is an index or stock enabled for trading on Futures /Options.

"In-the-money": A Call Option is said to be "In-the-Money" if the strike price is lessthan the market price of the underlying stock. A Put Option is In-The-Money when the

strike price is greater than the market price.

"Out-of-the-Money": A Call Option is said to be "Out-of-the-Money" if the strike price

is greater than the market price of the underlying stock. A Put option is Out-Of-

Money if the strike price is less than the market price.

"Website" refers to the website at the URL www.icicidirect.com and such other URL

which ICICI Securities may introduce from time to time for providing online trading

facility through multiple platforms to its Clients.

The singular includes the plural (and vice versa).

The index to and the headings in these Terms and Conditions are inserted for

convenience of reference only and are to be ignored in construing and interpreting

these Terms and Conditions.

Reference to the words "include" or "including" shall be construed without

limitation.

Reference to a gender shall include references to the female, male and neuter


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genders.

Applicability:

These Terms and Conditions, along with the Client Agreement/Document mentioning

Rights and Obligation of Stock Brokers and Clients and the Power of Attorney

executed by the Client in favour of ICICI Securities form the contract between theClient and ICICI Securities for availing of the Facility. Nothing contained herein shall

be construed as derogatory to the terms of the Client Agreement/Document

mentioning Rights and Obligation of Stock Brokers and Clients and the Power of

Attorney executed by the Client. By availing of the Facility, the Client acknowledges

as having read, understood and accepted these Terms and Conditions.

Terms & Conditions pertaining to trading in Futures and Options:

1. The Client agrees that SPAN based margining system provided by ICICI Securities

consolidates and groups various positions taken by the Client in Futures as well asOptions contracts at underlying level and computes margin requirement for each

underlying by clubbing all the contracts/positions of the same underlying in one

group instead of contract wise margining. The Client understands that clubbing of

contracts/positions of the same underlying for computation of required margin would

be done either at order level (pending execution)or at trade level (post execution),

depending on the contract type in which the Client has placed an order or created a

position, at the discretion of ICICI Securities.

Client understands that there could be scenarios wherein margin charged atposition/trade level can substantially increase as compared to the margin charged at

order level. If the Client does not maintain sufficient margins required to meet the

new Initial Margin requirement post trade execution then ICICI Securities may square

off such positions while running Intraday Mark to Market (IMTM) process at its sole

discretion without consulting or intimating the Client and the Client shall be solely

responsible for any losses arising on account of the same.

2. The Client agrees that Client will have to make available sufficient limits to provide

Initial Margin required before taking positions in Futures and Options. The Client

agrees that margin shall be blocked at the applicable Margin requirement based onthe latest risk parameter file received from Exchange/Clearing House. The Client

agrees that ICICI Securities shall require the Client to provide Deficit Margin and

Deficit Loss on existing positions, if any, under a particular underlying at the time of

placement of fresh order in the same underlying apart from blocking Initial Margin

required on fresh positions. This Deficit Margin and Deficit Loss on existing positions

will also be deducted from the limits of the client at the time of order placement.

Client agrees that if existing limits of the Client is not sufficient to meet the Deficit

Margin and Deficit Loss on existing positions, then the Client will not be allowed to

place fresh orders in such underlying. Client understands that same process will be

followed of blocking Deficit Margin and Deficit Loss on existing positions whilemaking any modification to any pending orders under same underlying which are yet


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to be executed.

However, if the Client places a cover order which is a square off order meant to

reduce existing positions, system will block the limits to recover Deficit Margin to the

extent the limits are available and allow the order to be accepted. Client understands

that once the cover order gets executed, realised profit or loss amount on thesquared off positions is adjusted in the limits and margin for underlying portfolio is

recomputed and blocked to the extent of available limits. Client agrees that if

sufficient margin is not available on cover order execution then ICICI securities shall

mark the customer's open positions in the same underlying for square off if the

available margin falls below minimum margin. ICICI Securities at its discretion will

run the intra day MTM process for squaring off such positions marked for square off

due to margin shortfall .

3. The Client agrees that ICICI Securities shall require the Client to provide Deficit

Margin on existing positions, if any, under a particular underlying at the time ofcancellation of unexecuted order in the same underlying. This Deficit Margin on

existing positions will be deducted from the limits of the client at the time of order

cancellation. Client agrees that if existing limits of the Client is not sufficient to meet

the Deficit Margin on existing positions, then the Client will not be allowed to cancel

pending orders in such underlying. Further, the Client agrees that if sufficient margin

is available to meet the Deficit Margin requirement then cancellation of order would

be allowed and in addition deficit loss under the existing underlying positions, if any,

will be blocked to the extent of available limits.

4. The Client agrees that ICICI Securities shall require the Client to provide DeficitMargin and Deficit Loss on existing positions, if any, under a particular underlying

after each trade execution in the same underlying. This Deficit Margin and Deficit

Loss on existing positions will be deducted from the limits of the client post trade

execution.

5. The Client agrees that ICICI Securities may require the Client to provide such

margin (in such form and manner as acceptable to ICICI Securities) depending on

the Stock and market volatility on different contracts as it deems fit in its sole

discretion as necessary for Risk mitigation. This margin requirement may be more

than the margin prescribed by the Stock Exchange. The margin may be taken incash or in form of securities as may be acceptable to ICICI Securities. In event the

Client offers securities as margin to ICICI Securities, then the Terms and conditions

as hereunder shall apply.

6. The Client agrees that the Client's positions are continuously monitored and the

Client agrees to provide required Margin (including additional Margin) as may be

determined by ICICI Securities from time to time. The Client agrees that ICICI

Securities may, in its sole discretion, require the Client to provide additional / further

margin depending upon the Client's positions, in form and manner acceptable to

ICICI Securities. If the available Limit is not sufficient to meet the demand foradditional Margin, ICICI Securities may close out the open position taken by the


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Client and the Client shall be solely responsible for any losses arising out account of

the same. ICICI Securities shall not be liable for making a demand for Margin/Margin

Call or otherwise inform the Client that the Margin has fallen below the required level

and it shall be the responsibility of the Client to regularly monitor and review the

Margin availability and furnish the additional Margin to ICICI Securities. ICICI

Securities reserves the right to close out the open position at any time (without

consulting the Client) in case the Client does not satisfy the additional Margin

requirements. The Client undertakes to maintain sufficient limits to safeguard the

open position from being squared off or pending orders from being cancelled.

7. The Client agrees that ICICI Securities may, in its sole discretion, change the

margin requirement on Transactions where the Client has taken or proposes to take

a position and/or require the Client to provide additional / further margin, depending

on its own risk mitigation measures and without intimating or consulting the Client.

In case of upward revision of the margin requirement, the Client agrees to allocateadditional margin (in form of cash or securities as may be acceptable to ICICI

Securities) to continue with open position taken in connection with the Transaction.

The Client further agrees that ICICI Securities shall have the discretion to select

stocks/ contracts that will be enabled for trading in the Futures or Options and the

margin requirement on such contracts.

8. Options Exercise and assignment:

Exercise: In case of an American option, the Client can place an exercise request upto the Open (Call/Put) buy position anytime except on the Last date of the contract.

The Client may place an exercise request for less than the open positions in market

lots. The exercise request can be placed only at specified time intervals when the

exercise market is open. Exercise request cannot be placed on the last day of the

Contract. On the Expiry day of the Contract, the exchange would automatically

exercise the (Call/Put) Buy position in case the Position is In-the-Money for all

American and European Option contracts. In case of exercise request placed by the

Client or exercised by the Stock Exchange, the exercise request is accepted only if

the Position is In-the-Money. If the Exercise Request is not accepted by the

exchange at the end of the day, the Exercise Request is marked as rejected at theend of the day, so that the Client can place a fresh Exercise Request the next day.

Assignment: In case the Client has a Sell position, the Contract may be assigned to

the Client and in such an event the Client undertakes to Buy the Underlying in case

of Put and sell the Underlying in case of Call. However, if the Contracts are settled in

cash, the Client would have to pay or receive the cash in case of an assignment. The

Client understands that there can be part Assignment as may be decided by the

Stock Exchange in its sole discretion.

Client's limits will be adjusted accordingly on exercise or assignment of Optioncontracts. If the Client does not square off the transaction till the last day of the


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contract, the position will be marked as closed off and the same cannot be exercised

or assigned.

9. Intraday Mark to Market (IMTM) Process

Available margin: When the IMTM process is run, Available Margin is calculated by

adding or deducting notional profits or losses respectively on open Futures as well as

Short Options positions from Margin blocked with respect to an underlying. When the

available margin is below the Minimum Margin required, New(revised) Initial Margin

required on existing underlying portfolio (including open positions and pending

orders) is re-calculated by taking latest SPAN margin calculated as per latest risk

parameter files and latest exposure margin calculated at Current Market Price

(CMP) of respective futures contract positions and at Current Market Price (CMP) of

underlying of respective Short Options positions. Risk management system then

computes Deficit Margin and Deficit Loss to arrive at Total Deficit. If the Limits of theClient is sufficient to meet the Total Deficit, ICICI Securities would block additional

Margin required out of the Limits available. In case Limits are not sufficient to meet

the additional Margin requirements then ICICI Securities may place a square off

order for appropriate quantity as it deems fit at market rate to close the position and

the Client shall be solely responsible for any losses arising out of the same.

However, before placing square off order all pending orders in that underlying

(contracts having same underlying) may be cancelled by ICICI Securities. ICICI

Securities shall determine, at its sole discretion, which contracts of a particular

underlying are required to be squared off due to margin shortfall.

ICICI Securities reserves the right for inclusion or exclusion of contracts/positions for

computation of notional profits or losses for arriving at Available Margin and ICICI

Securities may decide not to give any benefit of notional profits while computing

Available Margin at its sole discretion.

The Client understands that ICICI Securities has also provided a facility to the Client

wherein Client himself can run IMTM process to ascertain and block the additional

margin requirements on Client open positions in a particular underlying at the time of

running IMTM process. The IMTM process will consider blocking additional margin

on underlying portfolios whose Available Margin has fallen below Minimum Marginrequired on such portfolios. If the margin made available by the Client is insufficient

to meet the revised Initial Margin requirement, then the underlying will be marked for

square off i.e. the positions in such underlying will be squared off by ICICI Securities

for appropriate quantity as it deems fit when IMTM process is run by ICICI Securities.

The Client agrees that ICICI Securities, in its sole discretion, shall determine the

sequence in which positions need to be squared off in case of margin shortfall in an

underlying and shall at its discretion square off the riskiest positions first.

The Client hereby undertakes to allocate additional Margin, suo moto, on any openposition, to make available sufficient Margin against the same in order to avoid


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square off by ICICI Securities due to insufficient Margin

The Client agrees that in case of insufficient Limits, to safeguard its interest ICICI

Securities may block and debit any unallocated funds lying in Client's Bank Account

integrated with the Account and /or debit securities lying in Client's demat account

integrated with the Account towards dues recoverable from the client.

Every day the settlement of open futures position will take place at the closing price

of the day. In case of profit at EOD MTM Process run, Limits shall be increased by

the amount of profit and in case of loss, Limits shall be reduced to that extent. Next

day the position would be carried forward at the previous trading day closing price at

which last EOD MTM Process was run. Closing price for all the contracts is provided

by the exchange at the end of the day. Margin is re-calculated based on exchange

risk parameter file updated for the closing price at which EOD MTM process is run

and differential Margin is blocked or released, as the case may be, based on the

required Initial Margin and specified Exposure Margin Percentage.

Due to daily MTM and pay-in/pay-out, Limits may become lesser over a period of

time and because of the same, open position may fall in IMTM loop and may get

squared off unless the Client provides fresh Limits or does sufficient add margin to

safeguard the positions. Pay-in amount shall be debited from the Client's Bank

account (first from the amount allocated for the Transactions and then from the free

unallocated balance) and pay-out amount shall be credited to the Client's Bank

Account.

All MTM losses and margin required on end of day open positions will be recoveredby ICICI Securities on a daily basis by debiting the client's bank account.

In case the contract remains open till the contract expires, ICICI Securities as well as

the Exchange would expire the position on the last day of contract after running EOD

MTM Process and the position would be closed at the closing price of the spot

(equity) market. Margin blocked on such expired position will be released after

adjusting further margin requirements on existing positions under same underlying

and the Limits would be appropriately increased to the extent of excess margin, if

any, after adjusting profit/loss on close out. Client understands that if any position

forming part of a portfolio containing hedged/spread positions expires on the expiryday then margin requirement may substantially increase on the balance positions

under the same underlying which may result in squaring off of such positions if Client

does not have sufficient limits to meet the increased margin requirements on rest of

the open positions and and Client shall be solely responsible for any losses arising

out of the same.

Client agrees that if any penalty is levied upon ICICI Securities by

Exchange/Clearing House due to short margin collection from the Client (margin

shortfall), then ICICI Securities reserves the right to recover such penalty from the

Client by debiting the linked bank account of the Client or selling securities ofappropriate value from the linked demat account of the Client. Client is liable to pay


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such penalty amount forthwith to ICICI Securities when demanded by ICICI

Securities if funds/securities in the linked bank/demat account are insufficient to meet

the penalty amount.



C. COMMON F&O TERMS AND CONDITIONS APPLICABLE TO SPAN AS WELL

AS NON SPAN MARGIN CUSTOMERS

1. Margin Offered In Form Of Securities By The Client:

On acceptance of these terms and conditions, the Client may offer securities as

Margin to meet margin requirement and for due performance of the Client's

obligations in conduct of Transactions by the Client.

Such margin may be in the form of demat securities as determined by ICICI

Securities from time to time for the due performance and fulfillment by the Client of

his/her/its engagements, operations, commitments, obligations or liabilities in

connection with the Transactions conducted by the Client, including repayment of

any amounts due by the Client to ICICI Securities or any third party arising out of or

incidental to the Transactions. Such securities offered as Margin by the Client are

hereinafter referred to as "Margin Securities".

ICICI Securities shall have the sole discretion to accept or reject any securities

offered as margin by the Client under this Facility or require the Client to furnish anyadditional securities as margin.

The Client, if so determined by ICICI Securities, shall place the Margin Securities at

the absolute possession/ disposition of ICICI Securities or such custodian/depository

participant/Clearing Member as may be determined by ICICI Securities at its sole

discretion and such possession/disposition shall not be disputed by the Client.

Provided however that the Client may be permitted to have access to the Margin

Securities in the manner and subject to such terms and conditions as determined by

ICICI Securities from time to time and provided further that the Client confirms,

affirms and covenants with ICICI Securities that the Client shall do all such acts andthings, sign such documents and pay and incur such costs, debts and expenses as

may be necessary in respect of the possession/ disposition.

Margin Securities:

The Margin Securities would constitute the security towards due performance of the

Client's obligations, commitments, operations, obligations and liabilities arising out of

or incidental to any Transactions made, executed, undertaken, carried out or entered

into by the Client.

The Client undertakes that the Margin Securities shall be owned by the Client andshall be free of any charge, lien or other encumbrances at the time of offering the


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same towards margin to ICICI Securities.

The Client agrees that the Client shall create furnish additional Margin Securities as

may be required by ICICI Securities from time to time.

The Client agrees that the Client shall not without ICICI Securities's prior writtenpermission create any charge, lien or encumbrance of any kind over the Margin

Securities offered to ICICI Securities and further that the Client shall not do or allow

anything to be done that may prejudice the interest of ICICI Securities in respect of

the Margin Securities while the Client remains liable to ICICI Securities, in any

manner whatsoever, without the prior written permission of ICICI Securities.

Power of Attorney:

The Client agrees and acknowledges that pursuant to the Power of Attorney

executed by the Client in favour of ICICI Securities, ICICI Securities shall be entitled

to submit necessary documents on behalf of the Client to ICICI Bank Limited actingas the Depository Participant for enabling the Depository to mark a pledge in favour

of ICICI Securities in respect of the Margin Securities and also submit further

documents on behalf of the Client to request the Depository to remove the pledge

created with in respect of the Margin Securities.

ICICI Securities shall also be entitled to give such instructions to ICICI Bank Limited

acting as the Depository Participant to block/mark a lien on the Margin Securities

offered by the Client and upon such instructions the Client shall not be able to deal or

trade in such Margin Securities without consent of ICICI Securities.

Enforcement of Security:

If in the opinion of ICICI Securities, the Client has failed to perform and/or failed to

fulfill any of its engagements, commitments, operations, obligations or liabilities as a

Client of ICICI Securities including for any sums being due by him to ICICI Securities

or to any other party arising out of or incidental to any Transactions made, executed,

undertaken, carried out or entered into by it or in terms of regulations, laws, rules

governing ICICI Securities or the Client in this behalf, then the Client agrees that

ICICI Securities without giving any notice to the Client, shall be empowered/entitled

to invoke pledge, sell, dispose of or otherwise effect any transfer of any or all of the

Margin Securities in such manner and subject to such terms and conditions as it maydeem fit and that the money realized, if any, from such sale/disposal/transfer subject

to brokerage payable to ICICI Securities for such sale/ disposal/or other transfer shall

be utilized/disbursed by ICICI Securities in such manner and subject to terms and

conditions as it may deem fit. Further the Client shall do all such things, deeds, acts

and execute all such documents as are necessary to enable ICICI Securities to effect

such sale/disposal/ transfer. All decisions by ICICI Securities in respect of the

obligations or liabilities or commitments of the Client and the amount claimed in

respect thereof shall be binding on the Client. The Client agrees that ICICI Securities

shall not be under any liability whatsoever to the Client or any other person for any

loss, damage, expenses, costs etc, either actual or notional, consequent to suchsale/disposal/ transfer.


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If the total amounts realized from such sale/disposal/transfer is insufficient to fulfill

the Client's engagements, commitments, operations, obligations or liabilities in

entirety, the Client shall, forthwith and without demur, upon being requested by ICICI

Securities, furnish the balance amount together with interest at such rate as decided

by ICICI Securities and for costs and expenses from time to time. ICICI Securitiesshall also have the right to sell/dispose/ transfer any other securities of the Client, at

the cost of the Client and without intimation to the Client.

The Margin Securities shall be at the disposal of ICICI Securities and remain

available in respect of the obligations, liabilities or commitments of the Client and

may be utilized in the discretion of ICICI Securities.

The Client agrees that ICICI Securities shall be entitled to sell, pledge, deal with or

otherwise transfer the Margin Securities to any third party, including National

Securities Clearing Corporation Limited/ Clearing Houses, and declare to the thirdparty that all the Margin Securities are being provided to such parties as securities

owned by ICICI Securities and being the unencumbered, absolute and disposable

property of ICICI Securities and free from any prior charge, lien or encumbrance, and

to execute transfer documents and/or any other necessary documents, wherever

applicable or other endorsements for this purpose. ICICI Securities shall be entitled

to receive from the Client all costs, charges, expenses incurred by ICICI Securities

for the aforesaid purposes as well as any consent, ratification or the like which shall

not be withheld or delayed for any reason and in case of failure of which ICICI

Securities is hereby permitted and authorized to provide the same for and on behalf

of the Client.

Further that it is hereby agreed that benefits such as dividends, bonus, redemption

benefits, interest accruing on the Margin Securities during the period of transfer

except post invocation of the pledge in favour of ICICI Securities or selling or

disposing or otherwise effecting any transfer of the Margin Securities above shall

accrue to the Client and the Client shall be entitled to receive the same from ICICI

Securities.

The Client agrees the Margin Securities shall continue to be available to ICICI

Securities under the facility and the same shall not be affected in any mannerwhatsoever by any action by ICICI Securities against the Client including suspension

or termination of any of the Account with ICICI Securities or of the facility.

The Client agrees to execute such further documents whether of any nature

whatsoever as may be required by ICICI Securities for the purpose of giving effect to

the provisions hereof.

2. Representations and Warranties:

The Client makes the following representations, declarations, warranties and

agreements and confirms that they are, true, correct, valid and subsisting in everyrespect as of the date of availing of the Facility:


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(i) All acts, conditions and things required to be done, fulfilled or performed, and

all authorizations required or essential for availing of the Facility and /or for the

performance of the Client's obligations in terms hereof have been done, fulfilled,

obtained, effected and performed and are in full force and effect and no such

authorization has been, or is threatened to be, revoked or cancelled;

(ii) The Client is in compliance in all respects with all laws and regulations for

availing of the Facility and conducting transactions in securities pursuant to the

same. There are no circumstances that may at any time prevent or interfere with

such compliance.

(iii) The Client has complied in all material respects with all taxation laws in all

jurisdictions in which it is subject to taxation and has filed all tax returns and paid all

taxes and statutory dues due and payable by it and, to the extent any taxes are not

due, has established reserves that are adequate for the payment of those taxes and

statutory dues. The Client shall continue to comply with all taxation laws as

applicable.

(iv) Except to the extent disclosed to ICICI Securities, the Client has not taken any

action and no other steps have been taken or legal proceedings started by or against

it in any court of law / other authorities for its insolvency, bankruptcy, winding up,

dissolution, administration or re-organization or for the appointment of a receiver,

administrator, administrative receiver, trustee or similar officer of the Client or of any

or all if its assets.

(v) All amounts payable by the Client in respect of the Facility will be made free

and clear of and without deduction / withholding for or on account of any tax or levy.

3. Indemnity:

The Client shall, at its own expense, indemnify, defend and hold harmless ICICISecurities and its officers, directors, employees, representatives, agents respective

directors, Affiliates and assigns from and against any and all liability (including but

not limited to liabilities, judgments, damages, losses, claims, costs and expenses,

including attorneys fees and expenses) any other loss that may occur, arising from or

relating to:

a) a breach, non-performance or inadequate performance by the Client of any of

the terms, conditions, covenants, representations, undertakings, obligations or

warranties hereunder; or

b) the acts, errors, representations, misrepresentations, misconduct or negligence

of the Client, its employees and agents in performance of its obligations hereunder.

4. Limitation of Liability

Under no circumstances shall ICICI Securities be liable to the Client for indirect,

incidental, consequential, special or exemplary damages arising from or in

connection with the Facility provided to the Client, even if ICICI Securities have been

advised of the possibility of such damages, such as, but not limited to, loss of

revenue or anticipated profits or lost business.

5. Force Majeure:

ICICI Securities shall not be liable for any failure to perform any of its obligationsunder this Agreement if the performance is prevented, hindered or delayed by a


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Force Majeure event (defined below) and in such case its obligations shall be

suspended for so long as the Force Majeure Event continues (provided that this shall

not prevent the accrual of interest on a principal amount which would have been

payable but for this provision).

"Force Majeure Event" means any event due to any cause beyond the reasonablecontrol of ICICI Securities, including, without limitation, unavailability of any

communication system, equipment or software malfunction, accident, power failure,

breakdown or interruption or delay or any technical flaw in the Website or computer

systems or communication lines or equipment, sabotage, fire, flood, explosion, acts

of God, civil commotion, strikes or industrial action of any kind, riots, insurrection, war

or acts of government.

6. Waiver:

No delay in exercising or omission to exercise any right, power or remedy accruing to

ICICI Securities upon any default by the Client or otherwise under this Agreement orthe Client Agreement shall impair any such right, power or remedy or shall be

construed to be a waiver thereof or any acquiescence in such default, nor shall the

action or inaction of ICICI Securities in respect of any default or any acquiescence by

it in any default, affect or impair any right, power or remedy of ICICI Securities in

respect of any other default. The rights of ICICI Securities under these Terms and

Conditions and the Client Agreement are cumulative and not exclusive of their rights

under the general law and may be waived only in writing and specifically and at the

sole discretion of ICICI Securities.

7. Notices:All notices or other communications to be given by the Client under or in connection

with the Facility shall be given in writing at the office of ICICI Securities. Provided,

however, that no notice or communication to ICICI Securities shall be effective unless

actually received and acknowledged by ICICI Securities.

The Client agrees that all notices and communications to be sent by ICICI Securities

under or in connection with the Facility may be given at the address of the Client as

per the records of ICICI Securities or by sending an email or posting the notice or

communication on the Website as may be deemed expedient by ICICI Securities.

8. Suspension or Withdrawal of the Facility:

ICICI Securities, at its sole discretion, reserves the right to either temporarily or

permanently, withdraw or suspend the Facility at any time without giving any notice

or assigning any reason for the same, whether in respect of one or more Clients. In

case of a temporary withdrawal, the privileges may be reinstated by ICICI Securities

at its sole discretion.

9. Amendment to the Terms:

ICICI Securities has the absolute discretion to amend or supplement any of the terms

and conditions at any time and that ICICI Securities will endeavor to give prior noticeof the same by email or by displaying the amended Terms and Conditions on the


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Website or in any manner, it may deem fit, and such amended terms and conditions

will thereupon apply to and be binding on the Client.

10. Governing Law:

Any legal action or proceedings arising out of these terms and conditions shall be

brought in the courts or tribunals at Mumbai in India and the Client irrevocablysubmits to the exclusive jurisdiction of such courts and tribunals except for a dispute

filed under arbitration mechanism of the Exchanges, jurisdiction of which shall be

decided as per Exchange Rules and Regulations. ICICI Securities may, however, in

its absolute discretion commence any legal action or proceedings arising out of these

terms and conditions in any other court, tribunal or other appropriate forum, and the

Client hereby consents to that jurisdiction.

11. Severability:

Any provision of these terms and conditions which is prohibited or unenforceable in

any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of prohibitionor unenforceability but shall not invalidate the remaining provisions of these terms

and conditions or affect such provision in any other jurisdiction.

12. Non-Transferability:

The Facility is not assignable/transferable under any circumstance and shall be used

only by the Client.

Disclaimer:

ICICI Securities makes no express or implied warranty with respect to the Website

including, without limitation, any warranties of non-infringement of third party rights,title, merchantability, satisfactory quality or fitness for a particular purpose.

ICICI Securities makes no warranty that (i) the Facility will meet all the requirements

of the Client, (ii) the Facility will be uninterrupted, timely, secure, or error-free, (iii) any

errors in the Website will be corrected.

The Client shall not hold ICICI Securities responsible for any

breakdown/interruption/delay/failure or any technical flaw in the Website, Internet or

the related services provided by Internet service providers or other

telecommunication service providers and / or any consequent delay or failure in

completion of any request / instruction submitted by the Client.

I/WE have read and accepted all the above terms and conditions

i Cici Trading Conditions

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