Pentad Securities Private Limited (“PSPL”) offers trading in most of the liquid stocks traded on the stock exchanges. Some of the stocks such as penny stocks i.e. stocks whose market price is less than their face value, scrips traded in physical mode or scrips which do not meet PSPL’s internal criteria may not be allowed by PSPL for trading. “Penny Stocks” also include, scrips having large bid-ask spreads, low market capitalization due to unsound fundamentals, “T”, “TS”, “Z”, “BE” Category stocks or stocks, which have high chances of manipulations or as per directions/guidelines issued by the regulators.
Also, the Exchanges from time to time provide a list of securities categorized as “Illiquid Securities”. PSPL may at its discretion or based on directives of the Exchanges/SEBI may also restrict trading in illiquid securities from time to time. Any existing scrip enabled for trading may be deactivated by PSPL as and when such scrips meet the criteria as defined by PSPL for illiquid scrips, even if the Client had purchased the scrips through PSPL. Further, PSPL may also at any time, at its sole discretion as a risk containment or surveillance measure and without prior notice to the client, restrict client’s ability to trade in any specific security through PSPL. Such restrictions could be only on buy or sell or both. PSPL may for this purpose, introduce online blocks to prevent clients from placing orders in penny stocks, Illiquid/unapproved Securities and/or illiquid contracts through the Online Trading Platform of Pentad/Exchange. Dealers/sub brokers of Pentad may refuse to execute orders of the clients for trading in such stocks, securities and contracts. Further in case the client succeeds in placing order in penny stocks, Securities and Illiquid contracts through the Online Trading Platform or otherwise, Pentad may on its discretion at any point of time cancel /modify /alter any such order before execution on the Exchanges and may square off the executed position if desired.Any losses if any on account of such restriction shall be borne by the client only.
PSPL from time to time may impose quantity and/or value limits on the orders that a client can place through its 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 etc.).
PSPL may need to vary or reduce the limits or impose new limits urgently on the basis of risk perception and other factors considered relevant including but not limited to restrictions on limits on account of exchange/SEBI directions/limits (such as broker level/market level limits, security specific/volume specific exposures etc.). PSPL may be unable to inform the client of such variation, reduction or imposition in advance. PSPL shall not be responsible for consequences of such variation, reduction or imposition or the client’s inability to route any order through PSPL on account of any such variation, reduction or imposition of limits. Such exposure limits may be set up to a pre-determined number of times of the Margin (the “Multiple”) and the quantum of the Multiple shall be decided at sole option or discretion of PSPL. Such multiple may be changed at the discretion of PSPL from client to client depending on various factors, which inter alia include factors like market conditions, client profile, financial status, Regulatory interventions etc. Client shall abide by the exposure limits, if any, set by PSPL or by the Exchange or Clearing Corporation or SEBI from time to time. The exposure limits set by PSPL do not create any right in favour of the Client and are liable to be withdrawn at any time without notice and the client shall bear the loss on account of withdrawal of such limits. PSPL 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 PSPL, or it may subject any order placed by the client to a review before its entry into the trading systems and may refuse to execute/allow execution of orders due to various factors including but not limited to the reason of lack of margin/securities or the order being outside the limits set by PSPL/ Exchange/ SEBI or under alert due to surveillance or RMS reason and/or any other reasons which PSPL may deem appropriate in the circumstances.
Limits/Exposure provided shall vary based on the intraday profit /loss made by the client. Exposure limits against collateral/stocks shall be given only against approved securities as decided by the Exchanges/PSPL from time to time and subject to such haircut and valuations as may be decided by PSPL from time to time. PSPL from time to time may change the applicable haircut or apply a haircut higher than that specified by the Exchanges. In case of derivatives, Clients shall be allowed to trade only up to the applicable clientwise position limits set by the Exchanges/Regulators from time to time along with the added margin levied in addition to Exchange margins.
Brokerage will be charged within the limits prescribed by SEBI/ Exchange (currently 2.5%). Further, statutory levies shall be levied as per the current guidelines. The slab rate of brokerage shall be reviewed by PSPL from time to time and may be changed in such manner as PSPL may deem fit provided that the same would not contradict the regulatory provisions.
These policies and procedures may be amended/ changed unilaterally by PSPL, provided the change is informed to the client through any one of the means or method like posting on the website of PSPL or sending by speed post / courier / registered AD/ e-mail, or through a download on the website or through displays on the notice boards of branch / main office, or by newspaper or by any other suitable means. I/we agree that the communication delivery by PSPL is complete upon posting on the website or delivery to postal department / courier company or e-mail, by messaging on the computer screen of the client, These policies and procedures are to be read along with the document executed and shall be compulsorily referred to while deciding any dispute / difference in claims in between client and PSPL in any court of law, judicial / adjudicating authority, including arbitrator, mediator etc.