TERMS AND CONDITIONS FOR INDUCTION OF NEW BUSINESS ASSOCIATE

Location
! IDBI Capital Market Services Ltd. (IDBICAP) has classified various locations based on their local infrastructure and
visibility. The location of the premise of the prospective Business Associate will be considered for his / her induction.
Also, his / her knowledge of the Stock Broking business is a criterion for his / her induction.
Eligibility
! Above 21 years of age
! Minimum qualification should be HSC or an equivalent degree. For applicants having qualification less than HSC,
proof of Educational Qualification & Experience Certification in Capital Market will be required

Deposit
! The deposit shall be Rs. 2 Lakhs
! To be kept with IDBICAP for a minimum period of 1 year
! No interest will be payable on this deposit

Brokerage to be charged to the end clients

! The brokerage rate will be fixed in consultation with the Business Associate and based on the rates charged by
competitors
! There will be 2-3 categories of brokerage slabs for clients based on their volume of trading
! Statutory expenses will be charged to the end client, over and above the agreed brokerage rate, for Cash as well as
F&O segments

Revenue Sharing
! The standard revenue sharing will be on an equal basis; however this will be finalized only after considering the
practice followed by the local competitors

Sharing of Expenses
! IDBICAP shall not charge any other expense incurred at the Corporate Office under this arrangement
! IDBICAP shall not reimburse any expense incurred at the location of Business Associate

Connectivity & Software

! Business Associate will arrange for the required connectivity at his / her location, and the cost of the same will be
borne by the Business Associate
! Business Associate will use the trading software provided by IDBICAP
! Back-office software will provided by IDBICAP
! Business Associate will pay IDBICAP, the agreed amount per month for using the Trading Software / ID

Bad Debts
! Bad debts and Trading / Terminal operational errors resulting in losses shall be the sole responsibility of the Busi-
ness Associate

Margins/ Exposures
! Margins in Derivative Segment will be strictly charged as per the rates laid down by the Exchange / IDBICAP RMS
policy

Compliance
! NCFM / BCSM exams must be passed for both Cash & Derivative segments before the commencement of busi-
ness
! Registration as a Sub-Broker / Authorized person on BSE / NSE F&O segment is mandatory before activating the
terminal. The process normally takes 4-5 weeks
! There must be a dominant shareholder in case of a Corporate Entity
! The Certificate of Registration must be submitted at the time of submission of Sub-broker documents
! Attention must be invited to non-acceptance of cash from investors, direct issuance of contract from IDBICAP and
formalities relating to Know Your Client (KYC) form

Business Expectation
! The Business Associate must be dedicated to do this business and self-involvement is necessary
! To carry out day-to-day activities, trained staff must be employed by the Business Associate