TERMS AND CONDITIONS FOR AVAILING MARGIN TRADING FACILITY
Effective Date: 25th July, 2025
General:
The Terms and Conditions (“T&Cs”) stipulated herein, shall be in addition to all the terms and conditions (being Terms of Use, Privacy Policy, account opening documents along with annexures/risk disclosures etc) of NU apposite to all Clients using stock broking services provided by NU.
For the objective of these T&Cs, wherever the circumstances so state “Client", "You" or "Your", it shall mean any natural or legal person who has accepted to open an account, or initiated the process of opening an account with NU. The term "We", "Us", "Our", "Company " and “NU”) shall mean NU Investors Technologies Private Limited.
Pursuant to You being a Client with NU and based on the acceptance given by You, NU would extend its Margin Trading Facility (“MTF”) to You as per the rules/procedures set by various regulators/authoritative bodies.
The MTF Terms provided herein shall be in addition to and to be read with the SEBI Circular CIR/MRD/DP/54/2017 dated June 13, 2017 and the rights and obligations specified by Stock Exchange (NSE and BSE) and any other circular, guidelines, regulation as may be issued by SEBI and the Stock Exchanges from from time to time with regard to the MTF Facility.
ADDITIONAL TERMS AND CONDITIONS OF NU INVESTORS TECHNOLOGIES PRIVATE LIMITED FOR MARGIN TRADING FACILITY AND “BOOST”
The Margin Trading Facility and Boost would be available in accordance to the additional terms and condition laid down below:
1. Margin Trading Facility and Boost hereinafter collectively referred to as "MTF”, is a facility offered by NU which allows the Client to take positions by providing prescribed margin (shall mean the total amount/collateral that should be made available by the Client to NU for taking a position under the MTF) and the balance amount is funded by NU to meet the pay-in obligation of the Client, Client can later take delivery either by making the necessary funds settlement or square up such positions. The Client agrees that any fresh position under MTF shall be allowed to be created only when Client has provided Initial Margin required for such position in such form as specified by NU. The balance obligation would be funded by NU and will be paid to the Stock Exchange for meeting the Client’s pay-in obligation. Client then needs to ensure that the available margin is always above the Minimum Margin specified by NU to avoid squaring off the positions.
2. The Client shall maintain or cause to maintain with NU, at all times margin of such amount/percentage as prescribed by SEBI and/or the Stock Exchanges or such amount/percentage as decided and computed by NU from time to time, whichever is higher.
3. Subject to applicable regulations, NU at its sole and absolute discretion may increase/revise the limit of initial margin and maintenance margin, minimum transaction amount from time to time. NU’s decision to revise the rate of margin shall be final and binding on the Client and NU shall not be required to assign any reasons for the same. The Client shall abide by such revision, and where there is an upward revision of such margin amount, the client agrees to make up the revised margin immediately, failing which NU at its discretion may exercise its right to liquidate the security/collateral and/or close out the position immediately.
4. Notwithstanding the fact that NU may prescribe higher Margin requirement than what is prescribed by SEBI/the Stock Exchanges, if the Margin available in the Client’s MTF account is sufficient to meet minimum Margin requirement prescribed by SEBI/the Stock Exchanges, then NU, at its sole and absolute discretion, may allow the Client to take further exposure and / or continue with the existing positions under the MTF Facility as per SEBI/the Stock Exchange prescribed Margin.
5. Margin would be only in the form of cash or Approved Securities as collateral (as may be decided by NU) by marking pledge in favor of NU.
6. To avail the MTF by Client the minimum margin requirement would be VAR + 3 times of ELM in case of F&O Stock and VAR + 5 times of ELM in case of Non-F&O Stock. However, if the end of day margin requirement as provided by the Stock Exchange is higher than the MTF margin requirement, such additional margin requirement would be required to be fulfilled by the Client. Non-fulfilment of margin requirement may result in shortfall and subsequent penalty.
7. The Client can, at any time, replace the securities provided towards collateral for the MTF Facility, as long as the said securities are approved for margin trading with prior approval of the risk management system of NU.
8.The Client understands that MTF would be extended only for the Stocks as determined by NU from time to time among the Group 1 security as permitted by the Stock Exchange. If at any time the funded stock moves out of the Group 1 security, Client would be compulsorily required to liquidate such position within 30 days from the date such shares move out of the Group 1 security. In case such a position is not liquidated by Client, NU shall liquidate such position on the 30th day. Post square off (whether by client or NU), margins would be released from T+1 day.
9.Transaction/s to be considered for exposure to the MTF Facility shall be informed to NU in writing or in any other irrefutable acceptable mode of communication, including call to the relationship manager or call center on a recorded land line on T-day before close of the trading hours. In the absence of any such express communication, the transaction shall be considered under the normal trading facility. All credit arising to the Client account out of a sale transaction under the MTF Facility shall be first adjusted towards the debit under the MTF Facility, if any, and subject to adequate margin being maintained for the outstanding debit under the MTF Facility.
10. NU may change the securities from its Approved Securities list as and when the situation demands so or at the time of any volatility in the script of any securities.
11. No Client would be provided exposure beyond a limit as may be decided by NU from time to time.
12. NU shall clearly indicate the additional/deficient margin to be made good by the Client when it makes a margin call to the Client. Any notification in the form of email or SMS specifying the margin shortfall amount shall be a notice/communication of margin call. The Client shall deposit/pay the margin shortfall amount within the specified time as specified over email or SMS on receipt of such notification.
13. NU shall have right to call from the Client additional margin and the Client shall make up the difference either by payment of requisite amount to NU or by causing the delivery of additional Approved Securities, acceptable to NU as collateral or by transferring funds from the normal trading account to the MTF account of the Client or such other mode as is acceptable to NU and permitted by the bye laws, rules, regulations, orders, circulars of the Stock Exchange and regulatory authority. In case the Client fails to do so, then the Client shall be deemed to be in breach of these T&C and it shall be considered as an Event of Default and NU shall have right to immediately without any notice to the Client liquidate all or any of the collateral and / or Funded Securities (hereinafter collectively referred to as “Securities” and individually as “Security”) on the Stock Exchange and forthwith transfer/ appropriate the proceeds from such sale towards the payment of the MTF Facility. NU shall not be held liable / responsible for any losses / damages arising due to such liquidation / square off by NU.
14. If there is a margin call on an MTF account, and if the Client has credit balance in their normal trading account, NU reserves the right to transfer any clear credit balance from the normal trading account to the MTF account. By agreeing to these terms and conditions you give NU the explicit right to do this transfer without any intimation to the Client.
15. NU shall retain and/or pledge the securities of the Client, which are utilized for availing the MTF Facility, and/or retain corporate benefits on such securities, if any, till the amount is due in respect of the transactions including the dues to NU are paid in full by the Client.
16. On part payment of the MTF, which Funded Security to be released will be at the sole discretion of NU.
17. If there are no transactions for 90 (ninety) days in the MTF account and where the MTF account is in credit then the same would be settled as per the running account settlement process.
18. The stock valuation of fully paid securities in the Collateral account will be determined by NU, after applying the necessary haircuts (Var + ELM % as defined by NU) from time to time including but not limited to the existing blocked collaterals.
19. MTM (Mark to Market) loss if any of the funded security, should be paid immediately under this funding facility failing which the funded stocks shall be liquidated without any prior intimation. Margin call shall be initiated by NU, at any time if the Client fails to meet the daily MTM Losses of the funded security and fails to clear the MTM loss dues.
20. Boost:
(a) Boost is a simplified interface for the underlying MTF, designed to visually represent the multiplier effect available on Group 1. Activating Boost implies the Client’s explicit consent to avail this functionality under these T&Cs.
(b) The “Boost” toggle will be visible to Clients who have enabled MTF with NU.
(c) The multiplier value displayed for "Boost" will be the same as the MTF margin multiplier applicable to that specific stock.
(d) "Boost" feature will be visible and applicable for orders placed under Delivery – Market, Limit, and SL tabs.
(e) If the multiplier value is in decimal, it will always be rounded down to the nearest whole number.
(f) Once "Boost" is activated, the quantity entered by the Client will be multiplied by the selected "Boost" multiplier.
(g) The Client retains the option to switch off “Boost” at any time before placing any order.
21. Charges:
(a) Pay an interest equal to the delayed payment interest rate (payment made after the timelines prescribed for Pay-In or Pay-out date with respect to the said transaction) charged to the Client's normal account or interest of up to 18% p.a. + GST or at the rate decided by NU from time to time calculated on outstanding MTF balance (Interest). NU shall be entitled to debit the same to the MTF account of the Client held with NU and add to the Funded Amount and NU shall charge Interest thereon as if such amount was an additional amount funded by NU to the Client.
(b) NU shall, at its sole discretion, be entitled to alter at any time and from time to time the rate of Interest by sending prior communication to the Client.
22. Creation of Pledge:
(a) As per regulatory requirement for entering into Margin Trading position, Clients would be prompted to create a future pledge at the CDSL systems in favour of NU – Client Securities Margin Pledge Account (Collateral account). Clients would be required to confirm such pledge within a stipulated time (as may be decided by NU) on the trade day to continue with the MTF position.
(b) Non acceptance of pledge requests within the stipulated timelines, would lead to converting the MTF position to normal position on T day. Such a position shall be squared off any time after the settlement day but before the regulatory norms. Funds or securities blocked during the settlement of such position(s) would be liable to penalty or square-off as communicated by NU.
23. Term and Termination:
(a) The duration period for Margin Trading position so taken up by the Client would be valid for a period of 12 months from the trade date of such position as may be decided by NU from time to time.
(b) Clients would be required to release such a position on or before the date as may be intimated to the Client by NU by taking delivery of such shares by paying the funded amount or by squaring off such position.
(c) Any pending position beyond the intimated date may be squared off at the prevailing market rates on best effort basis by NU.
(d) NU shall not be responsible for any loss arising to Client from such square off. Further Clients would not be allowed to take any new position on the same day in the same script for position squared off by NU.
(e) Post squaring off the position, funds would first be allocated towards satisfying the outstanding dues, interest accumulated to NU and statutory charges as applicable and only the balance would be credited to the client ledger.
(f) If any further amount is due from the Client to NU, after such adjustment, then the Client shall forthwith settle the same. NU shall release the balance amount to the Client upon full settlement of all the dues of the Client to NU.
(g) NU may release/unpledged/transfer the securities utilized for providing the margin under the MTF Facility within 5 (five) working days of the Client clearing the dues to NU.
(h) Subject to clearing all dues payable to NU, the Client may opt to terminate the MTF Facility, in the event of NU committing any breach of any T&Cs herein or for any other reason.
23. Repayment on Demand:
(a) Notwithstanding anything contained herein, NU may, in its sole discretion, determine the time to sell the securities to be liquidated, and/or which contract(s) is/are to be closed and/or repayment of any outstanding amount under the MTF on demand. The Client undertakes to repay outstanding amount under the MTF forthwith on demand by NU. If the Client either fails or delays the repayment of the MTF on demand as aforesaid, NU shall be entitled to sell the Client’s securities, either in its own name or in the name of the Client and collect & appropriate the sale proceeds thereof to clear any outstanding amount under the MTF of the Client and the Client shall be solely responsible for any costs or consequences thereof. For any deficit amount, NU is entitled to recover the same from the Client as available under law or equity.
(b) NU shall hold and/or appropriate the credit lying in the Client account with NU and/or any unutilized/unpledged shares/securities lying in the Client demat account with NU along with all other demat accounts/Mutual Funds/IPO account of the Client with NU towards the repayment of the outstanding dues thereof under the MTF Facility.
(c) NU shall treat the securities pledged in the demat account/s linked to the trading account of the Client as margin towards the MTF Facility availed by the Client.
(d) Client shall at all times be fully responsible to make good any dues pending to be paid to NU. The dues of the Client, wherever mentioned in the T&C, shall include but are not limited to the outstanding balances (funded amount), interest, statutory dues, taxes, duties, charges, penalties etc. in respect of the MTF Facility availed by the Client. If NU pays any such duty, expenses and/or charges, the Client hereby agrees to reimburse the same to NU within 3 (Three) days from the date of demand by NU on the Client.
25. On squaring off any position by Client or by NU from such sale value the funded amount, applicable taxes, applicable charges and applicable upfront margin would first be reduced and only on the balance amount further exposure shall be granted (if any).
26. If at any point there is any margin shortfall, the Client shall be responsible for penalties applicable (if any).
27. Event of Default: In respect of the MTF provided or to be provided by NU, the happening of any of the following events shall be considered as an event of default by the Client (herein referred to as “Event of Default”):
(a) If the Client fails to pay any part of the MTF or fails to pay interest on the MTF as and when the same becomes payable;
(b) if the Client fails to pay the outstanding MTF balance forthwith after giving his/her notice of closure / termination of the MTF Facility with NU;
(c) if there is reasonable apprehension that the Client is unable to pay its outstanding dues including the Garnishee Order being passed or admitted against the Client;
(d) if the Client fails to maintain the stipulated margin as communicated by NU from time to time and also does not restore the same to the required level within the timeline as intimated by NU;
(e) non-acceptance of pledge request within the stipulated timelines;
(f) if there is a change in the constitution of the Client whether on account of admission of a new partner or retirement/death/insolvency of any partner or otherwise or on death or lunacy in case of an individual Client and insolvency, dissolution and winding-up in case of non-individual Client;
(g) if the Client provides any incorrect or misleading information or fails to adhere to the T&Cs of NU;
(h) if any order is passed by any regulatory authority, courts, etc. requiring NU to liquidate the security/collateral and/or close out the position of the Client or if the Client is convicted under any law in-force;
(i) if any asset or any security is seized or made subject to any distress, execution, attachment, injunction or other process order or proceeding or is detained or taken into custody for any reason;
(j) default under any other arrangement or facility with any Stock Broker is made by the Client;
(k) for such other events as determined by NU as an event of default which is prejudicial to the interest of NU.
28. Consequences of Event of Default:
(a) Unless NU gives time or other accommodation in writing over email, NU shall be entitled to enforce the Securities without prejudice to NU’s other legal rights and remedies;
(b) NU shall be further entitled to liquidate/ square off / auto square-off (only in case of failure to make payment) the Securities or close out the position without any further notice to the Client. NU’s decision regarding liquidating the securities or giving a notice to cure a particular Event of Default shall be final and binding and the Client shall not raise any objection on the same. The right of NU to liquidate the Securities is absolute, final and binding on the Client;
(c) NU shall have the sole authority to decide the mode, manner, time and the price at which to effect the liquidation of the Securities and the Client undertakes and agrees that he/she shall not raise any dispute as to the manner, mode, time and the price at which the Securities are sold / squared off and the Client agrees to pay to NU forthwith at NU’s demand such amount as will make up the shortfall. Any action taken by NU in terms of this Clause shall not be challenged by the Client, and NU shall not be liable to the Client for any loss or damage which may be caused to the Client.
(d) In case of lunacy, death, insolvency, dissolution, winding up or such other event of the Client as the case may be, any action to liquidate the Securities shall be binding upon the nominees, legal heirs, successors, representatives of the Client as the case may be in accordance with the applicable laws and regulations.
29. NOTICES & COMMUNICATION:
(a) Any notice or other communication to be given by NU to the Client under or in connection with these T&C including, but not limited to, communication for confirmation of orders/trades, margin calls, calls for liquidation of Securities shall be in writing and shall be deemed duly served if delivered personally or sent by prepaid registered post or courier or by e-mail or short message service (SMS) or in any other form as it may deem fit to NU, to the Client on address/e-mail Id /telephone number (if any), as specified in the account opening form or as subsequently communicated/modified in writing by the Client;
(b) that any notice/communication sent by NU to the Client shall be deemed to have been properly delivered or served, even if such notice/ communication is returned to NU as unclaimed/ refused/undelivered/bounced, if the same is served at the address/e-mail Id /telephone number communicated by the Client; and
(c) that any notice/communication relating to confirmation of orders/trades, margin calls, change of composition of Approved Securities, calls for liquidation of Securities and/or any other similar matters may be communicated by NU to the Client orally or by e-mail or SMS.
30. GRIEVANCE REDRESSAL:
(a) The Client shall lodge grievance or disagreement with any transaction done under the MTF within 24 hours after receipt of the contract note or any communication by writing at [email protected].
(b) Any dispute between the parties in connection with the MTF should first be resolved amicably. In case no amicable resolution is arrived at, parties can approach the investor grievance redressal mechanism or arbitration mechanism of the Stock Exchanges or the Online Dispute Resolution (ODR) mechanism.
31. Any provision of this T&C which is prohibited, unenforceable or is declared or found to be illegal, invalid, unenforceable, or void shall be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions of this T&C.
32. This T&C will be governed by and construed in accordance with the laws of India. The courts of Mumbai shall have exclusive jurisdiction over all matters in connection herewith.
DISCLAIMERS:
33. The funds of one client shall not be used to provide MTF Facility to another client even if so authorized by the first client. Investor Protection Fund (IPF) will not be available for transactions done on the Stock Exchanges, through the MTF Facility, in case of any losses suffered in connection with the MTF Facility availed by a client.
34. The Client understands that NU shall be reporting to the Stock Exchanges on a daily basis the details of the client's funded position/collaterals position and such other details as may be required by Stock Exchanges from time to time. The Client understands that Client is required to disclose whether he is a promoter or forming of the promoter group of the stock in which he has taken an MTF position or given as collateral which is required for daily reporting to Stock Exchanges. In absence of any such disclosure, NU shall consider the Client as a non-promoter and will report to Stock Exchanges accordingly.
35. The Client understands that NU reserves the right to modify any of the terms in the relation to MTF so provided here in the document.
36. The Client understands that from the date of accepting these T&C, if there are any regulatory / operational changes in the functioning of the MTF, such changes shall apply without any intimation to the Client.
37. NU reserves the right at its absolute discretion to withdraw/ suspend/reduce the MTF at any time without giving any reason. During the existence of the agreement, if it is found any breach / fraud has been committed by the Client against NU, such Client shall be liable to make good all the financial loss incurred by NU including any legal and technical cost that would have been borne by NU. The Client would also be subject to any legal action as may be necessary.
38. NU also reserved the right to withdraw the MTF any time by issuing a notice of not greater than 30 (thirty) days to its Clients. On withdrawal of such a facility, a Client would be required to settle its position and clear out any pending dues.
39. NU in its sole and exclusive discretion may or may not grant the MTF Facility to a Client or grant on such conditions, terms as are at the sole discretion of NU. In the event NU decides not to extend the MTF to a particular Client or for a particular transaction or transactions or reduce the amount/limits of the MTF given to the Client, NU shall not be required to provide any reasons thereof nor shall NU be liable for any loss/damages etc to the Client by reason of NU’s refusal to extend the MTF to the Client or its decision to reduce the amount/limit of the MTF.
40. The Client understands that the service provided hereunder is through the use of software’s and systems. The Client agrees that he/she shall be liable in case of loss (including opportunity/notional loss) damages, fines, penalties, charges, costs, expenses etc caused to the Client due to any interruption, malfunction, error, non-availability, technical glitch of for any other reason of whatsoever nature in the internet/mobile trading platform or any other order routing platform of NU and shall not have any claim/complaint of whatsoever nature against NU and/or its employees, directors, associates, affiliates, group etc in this regard.
41. Modification of Terms and Conditions:
NU reserves the right to change/modify these T&Cs and shall be duly communicated to the Clients registered under the Margin Trading Facility. Client’s acceptance of the amended T&Cs or continued usage of MTF feature on Lemonn Platform at the time of placing shall signify Client’s consent to the changes and agree to be legally bound by the same.
