As per the NSE circular (PDF), starting April 1, 2024, new clients must sign the Most Important Terms and Conditions (MITC) (PDF) as part of the account opening forms. Existing clients must be informed about MITC by June 1, 2024.
The MITCs are summarised below:
- Keep the account safe by not letting anyone else trade on it without your permission. Do not share the login details with anyone.
- Funds or securities must be provided as collateral to Zerodha to trade or invest.
- Trading restrictions may be applicable as per Zerodha’s risk management policy. The tariff sheet (PDF) explains all the charges that are applicable.
- Purchased securities will be settled in the demat account by T+1 day. If a client purchases securities but fails to fully pay for them, a pledge with a specific time limit is created in favour of the stockbroker via the Clients Unpaid Securities Pledgee Account (CUSPA). The client is then notified by email to deposit funds into their Zerodha account or sell their stocks to meet their debit obligations. If the client fails to meet their debit obligations, Zerodha will sell the stock to cover the outstanding debit balance.
- Zerodha allocates client funds segment-wise with the Clearing Corporation (CC). This means that the balance maintained with Zerodha will be segregated and allocated segment-wise depending on the trades and margin utilisation. Unutilised funds are transferred back to the client's primary bank account quarterly.
- A contract note is sent to the client within 24 hours of placing a trade.
- Clients can provide a Demat Debit and Pledge Instruction (DDPI) to Zerodha. DDPI is a document that allows a broker to debit the securities from the client’s demat account and deliver them to the exchange. The client does not have to enter the CDSL T-PIN and OTP to sell shares once the DDPI is submitted.
- Clients are required to keep their contact details updated with Zerodha. Clients are also required to provide financial information as requested by Zerodha.
- To report grievances or complaints, create a ticket, and Zerodha will respond with a resolution. Complaints can also be raised with SEBI by visiting smartodr.in/login.
- Schemes promising guaranteed returns are illegal. If clients invest in them, they will not be protected by SEBI or the stock exchanges.