Sharekhan : 5 DAY AUTO SQUARE OFF!

5 DAY AUTO SQUARE OFF!

Dear Customer,

Thank you for choosing Mirae Asset Sharekhan as your preferred equity solutions provider.

As you are aware, your Mirae Asset Sharekhan e-Broking account entitles you to enjoy the benefit of higher exposure levels for buying / selling of shares or taking new positions across all segments and Exchanges on an intra-day basis. If the said exposure levels are availed of by you for executing delivery-based /carry forward positions, your account will run into a debit in case not sufficiently funded.

In the given scenario, if the said debit balance is not cleared by you on or before T+2 day, delayed payment charges at applicable rates shall be levied, in addition to the possibility of liquidation of your stocks to restore the positive balance in your account.

In order to bring greater transparency and standardization in the process, we would like to bring to your kind attention our “5-Day Auto Square Off” feature, whereby in case your account balance becomes negative on the T+2nd day then:

1.	Shares shall be credited to a separate ?Online Client Stock Account? instead of your “Online DP Account” (as per the current practice) till the time your account balance is restored to positive. However, the same will be visible & available for selling from the Client Stock Account.
2.	Once the account has a Credit balance the shares from the “Online Client Stock Account” shall be transferred to your “Online DP Account”..
3.	On the T+6th day, you would be able to view a detailed 5 Day Square Off report under the Transaction Reports Section for NSE only. As of now BSE segment report is not available.
4.	In case the debit is not cleared before the T+6th day the "5-Day Auto Square Off" feature will be automatically activated & the shares in your client stock account will be sold to clear the Debit balance. As per regulations, buy back of scrips liquidated due to ageing debits will not be allowed on the same day.

5.	Stock(s) to be sold under the “5-Day Auto Square Off” feature will be the ones purchased through Mirae Asset Sharekhan and lying in the Margin /Pool account and /or the ones transferred from DP to Margin /Pool account towards margin (DP to Margin).
6.	All amounts transferred Online on weekdays will be considered as payment received for calculating the square-off amount. Amount(s) transferred on weekends will not be considered for square off.
7.	Any pending Settlement credits will be considered to arrive at the final Debit balance “Due to us”.
8.	Cheque payments tendered /deposited post T+2 shall not be considered to arrive at the final Debit Balance for the “5-Day Auto Square Off”.
9.	T+5 Scenario would consider only Working Days. Weekends and Trading Holidays would be exempted.

In case, your account balance is in debit, a detailed report of the same is available online in the Transaction Report – 5 Days Square Off section in your trading account.

Note that the 5 Day Square Off feature has been in effective since January 15, 2007 and will be applicable for debit amounts exceeding Rs. 500.

Feel free to call our Customer Service Department on 022- 4152 3200 / 6115 1111 for any further clarifications.

Warm Regards,

Team Mirae Asset Sharekhan

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