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DEFINITIONS::
The definitions of the terms used herein are as under::
“Bank” shall mean Union Bank of India, a Body Corporate, constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Head Office at Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai 400021
"Client" shall mean a person holding a Banking account and a Demat account with the Bank, and using the same for availing the online facilities being rendered herein, and holding an online trading account with IDBI Capital.
“Securities” shall have the meaning assigned to it under the Securities Contracts (Regulations) Act, 1956.
"User ID" shall mean the user identification provided to the Client by the Bank for the purposes of availing online Trading facility.
"User Password" shall mean the password, identification number and any other mode of authentication which the client shall use to access and operate the Online Trading facility.
"IDBI Capital" shall mean IDBI Capital Market Services Limited, a Company incorporated and registered under the Companies Act 1956 and having its registered office at ………………………………………………with whom the Client has entered into a broker-client relationship.
"Online Trading facility" shall mean the services rendered by the Bank to the Client and to IDBI Capital, for facilitating online trading of securities and shall include the following::
Facilitate the issuance of instructions by the Clients to the Bank online through the website of the Bank, to transfer funds from the account maintained by the Client with the Bank, to the account of IDBI Capital maintained with the Bank.
Allow IDBI Capital, the facility of blocking securities in the Demat Account of the Client online, and transfer such security to IDBI Capital, on the basis of the Power of Attorney executed by the Client in favour of IDBI Capital.
Act upon the instructions of IDBI Capital with respect to transfer of funds from Client’s Bank Account to such accounts as IDBI Capital may desire
Credit the securities purchased by IDBI Capital on behalf of the Client, to the Client's Demat account.
Credit all funds transferred by IDBI Capital through internet banking, to the Client's bank account.
All other activities incidental to the above.
"Trading Instructions" shall mean any transaction with respect to purchase, sale and negotiation of securities, which shall be placed by the Client with IDBI Capital through any enabled facility offered by IDBI Capital, including through their website.
"Website" shall mean the website of the Bank.
"Online" means transacting the following on the website of the Bank:
Availing the facility of electronic transfer of funds by the Client, from their account to the account of IDBI Capital and vice versa
Accessing the Online Trading facilities offered by the Bank.
Terms:
a) The period taken for settlement of each trading transaction emanating from the Client shall be as per the regulations set out by the Bombay Stock Exchange and the National Stock Exchange.
b) The Bank is authorized to receive all credits into the Client's Demat account.
c) The Bank is also authorized to debit the Demat account of the Client with respect to the securities sold by the Client through IDBI Capital.
d) The Client shall execute a Power of Attorney in favour of the Bank to operate the Demat account of the Client, to transfer the details of the Demat account holdings of the Client to IDBI Capital, and to operate the client's banking account for transferring funds to IDBI Capital's account.
e) The Client shall also execute a Power of Attorney in favour of IDBI Capital, authorizing IDBI Capital to transmit delivery instructions to the Bank, with respect to the securities sold by the Client.
f) The Bank shall not offer Online Trading facility for pledged securities.
g) The Online Trading facility will also not be available for Demat accounts, which have been frozen on the instructions of the Client or a statutory authority or court.
h) The Bank is entitled to exercise its right of general lien over the securities available in the Demat account of the Client, and once such right has been exercised by the Bank, the facility of Online Trading shall automatically stand withdrawn.
i) The Bank is not a party to any agreement or any other understanding which may be entered by the Client with IDBI Capital to define their broker-client relationship and is not concerned with any instructions and orders placed with IDBI Capital by the Client.
j) Once the Client has issued trading instructions with respect to a security with IDBI Capital, he/she shall not issue offline trading instructions with respect to the same security to the Bank. In the event of the same happening, the Bank shall deal with such security only as per the trading instructions lodged by the Client with IDBI Capital, and disregard the instructions given by the Client offline. The Client shall not dispute such action by the Bank.
k) The Bank shall deal with the securities in the Demat account of the Client as per the trading instructions lodged with IDBI Capital by the client and no liability can be cast upon the Bank due to such dealings. The Bank is not responsible or liable in any manner for (i) non execution of any such order or instruction by IDBI Capital, (ii) any short delivery made by IDBI Capital, (iii) any transfer of securities made to IDBI Capital over and above the instructions lodged by the Client with IDBI Capital, and (iv) failure on the part of IDBI Capital to transfer any funds to the account of the Client, which may be due to the Client from IDBI Capital as per the Broker-Client Agreement executed between the Client and IDBI Capital.
l) The Client shall keep the Bank indemnified at all times against all claims made by IDBI Capital upon the Bank and make good any loss incurred by the Bank::
(1) With respect to failure of execution of a trading instruction for sale
of any security, placed by the Client with IDBI Capital –
(i) On account of non availability of such security in the Demat account of the Client and/or
(ii) on account of any attachment or freezing order being imposed in the Demat account by a statutory authority and/or
(iii) on account of the securities being under lien or pledge, and/ or
(iv) for any other reasons whatsoever
(2) With respect to failure of execution of a trading instruction for
purchase of any security, placed by the Client with IDBI Capital -
(i) on account of failure on the part of the Client to make funds available to IDBI Capital for purchase of any security, and/or
(ii) for any other reasons whatsoever.
m) The Client shall transfer funds from his account maintained with the Bank to the account of IDBI Capital, also maintained with the Bank, simultaneously with placing a purchase order of securities with IDBI Capital, and this transfer shall be independent of the fulfillment of all contractual obligations on the part of IDBI Capital to the Client.
n) The Bank shall not be liable for failure of any orders or transactions placed by the Client with IDBI Capital for any reason whatsoever, including non transfer of funds, non-confirmation of such transfer of funds due to system and technological failure or human error beyond the control of the Bank.
o) The Bank shall publish all notifications with respect to the Online Trading facility on its website, and the same shall deem to mean service of notice upon the Client.
p) The Client shall pay service charges as may be determined by the Bank for availing Online Trading facilities.
q) The Bank shall not be liable for any interruption in the Online Trading facility or the termination of the same on account of unauthorized hacking of its website, closure of the facility for maintenance, repairs to the site, computer crashes, loss of data and the occurrence of any force majeure event.
USER ID AND USER PASSWORD:
1. The client is solely responsible for the confidentiality of the User ID and User password issued to him and he shall not reveal the same to any third party.
2. The Client shall indemnify the Bank against all liabilities and claims of third parties arising out of failure on the part of the Client to maintain the secrecy of the user ID and the user password.
3. Apart from verification of the user ID and user password, the Bank has no further obligations with regard to availing the Online Trading facility by the Client.
4. The Client shall change the user password issued to him/her by the Bank when availing the Online Trading facility for the first time.
TERMINATION OF ONLINE TRADING FACILITY::
The Online Trading facility can be terminated by either parties by giving a notice of 15 days to the other party. The Bank shall carry out all the instructions of the Client lodged with either the Bank or IDBI Capital by the Client, after date of the termination notice issued by the Client, but before the expiry of 15 days.
Apart from the above, the Bank reserves the right to terminate the Online Trading facility at any point of time, without giving the 15 days' notice and without specifying any reasons. It also reserves the right to suspend temporarily or terminate the Online Trading facility on account of ::
1. Failure on the part of the Client to pay the service charges and any other amounts due by the Client to the Bank.
2. Failure on the part of the Client to perform any obligations mentioned herein.
3. Exercise of its right of general lien by the bank on the securities available in the Demat account of the Client.
4. Receipt of an order by the Bank issued by a statutory authority or a Court to suspend or terminate the Online Trading services immediately.
5. Exercise of its right of general lien by the Bank on the account of IDBI Capital held with the Bank.
6. Termination of the Agreement pertaining to the Online Trading services between the Bank and IDBI Capital.
No liability shall be cast upon the Bank for the termination or suspension of Online Trading facility.
GOVERNING LAW::
The terms and conditions of the Online Trading facility shall be governed by the laws of India and shall be subject to the jurisdiction of courts at Mumbai.
The terms and conditions contained herein shall be in addition to the Agreement executed by the Client in favour of the Bank for opening the Demat account and the Power of Attorney executed by the Client in favour of the Bank.
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