RSP Insure (Regular Stock Purchase Insure) is a facility which provides you an opportunity to invest systematically and in a disciplined manner in specified stock(s), ETF(s) (Exchange Traded Funds) and MF (Mutual Fund) units through exchange platforms (NSE- MFSS & BSE- StAR MF) with the added benefit of insurance cover.

You can place BUY orders for a pre specified amount in stock(s), ETF(s) or MF units of your choice under RSP Insure for period of 10 years. This means that a onetime selection of RSP Insure will allow RSL to place orders on your behalf on regular intervals.

The unique benefit of RSP Insure is that, in the unfortunate event of the demise of an investor during the tenure of the RSP Insure, the insurance cover will take care of the remaining RSP Insure orders.

Minimum investment you can make in RSP Insure is Rs 3000 monthly or above in multiples of Rs 100. However, the total sum assured under RSP Insure will not be more than Rs 10 lacs at any point of time.

• No need to track the market regularly i.e., once an RSP Insure is placed, the selected stock(s)/ETF/MF are purchased on your behalf as per your instruction.
• Helps bring down the average cost of investment
• Eliminates the risk of timing the market
• Accumulates wealth by investing small amount regularly
• Reduces the risk of market volatility
• It provides Life Insurance Cover that helps the registered RSP Insure investor’s family to deal with the financial crisis and stay ahead of uncertainties of life by ensuring that the insurance cover takes care of the unpaid pending investment orders.
• Helps to complete the planned investments towards your financial goals.

All RSL’s clients’ upto 50 years of age (based on next birthday) can subscribe for RSP Insure.

Physical Request: To avail RSP Insure facility, you need to fill up an RSP Insure Application Form, Personal Declaration form (PD Form) & RSP Insure Nomination form. You also need to specify the stock you want to invest in and your monthly investment amount. Your RSP Insure will be activated within 7 days and then your first order will be placed as per the nearest investment date out of 7th, 15th, 22nd and 28th.

Online: Login to your online trading account & select the Instrument in which you want to invest. Your first order will be placed as per the nearest investment date out of 7th, 15th, 22nd and 28th. However it is mandatory to submit the physical copy of Personal Declaration form & RSP-Insure Nomination Form to the branch.

You will get Email once your RSP Insure facility is activated. You can also check the status online after login to your account or with your Dealer or Call N Trade desk.

• The Insurance cover will be granted based on the information provided in PD Form.
• Once the PD Form is accepted by RLIC, insurance cover will be granted to you effective from next month onwards. You will be charged an “RSP Insure Activation Fee” of Rs. 2500 on acceptance of PD form.

• The RSP Insure order will be placed on the nearest date out of 7th, 15th, 22nd or 28th after RSP Insure request is placed.
• Monthly RSP Insure amount specified by you is invested in stocks of your choice.
• Insurance cover is subject to acceptance of Personal Declaration Form. The cover will be effective from next month onwards.
• Example: If RSP Insure start date is 11/12/2011, assuming PD form is submitted on 12/12/2011 & the same is accepted by RLIC on 18/12/2011. Insurance Cover will be effective from 01/01/2012 onwards.
• Insurance cover amount will be reducing every month. The cover will be calculated as per following formula.
  • Insurance Cover Amount: RSP Insure monthly amount * (120 – Pending RSP Installments).
• In the unfortunate event of demise, insurance cover amount will be first credited to investor Trading account with RSL and on request by Investor, Payout will be done to bank account mapped and registered with RSL
• Insurance cover provided will be terminated in case any of the following event happens:
  • In case of failure of 2 consecutive RSP Insure Installments OR
  • In case of failure of 4 RSP Insure Installments during the entire tenure.
  • In case of Investor cancelling all future RSP Installments.
  • De-listing of the selected stock from exchange (If client fails to change the stock). On happening of any of the 4 events, insurance cover will not be provided effective from next month onwards.
• In case insurance cover is not granted (i.e. rejected), RSP Insure installments will continue to be invested, however insurance cover will not be given. Investor may choose to cancel all future RSP Installments

No. An RSP Insure Request is merely an authorization given to RSL to place BUY orders in your account as per your instructions; hence funds are not required or used when you place a request. However, it is advisable to maintain funds in the ledger.

Your funds will be used at the time of placing actual RSP Insure orders in the market on a trading day. You can also sign up an ECS mandate for your RSP Insure orders and then the monthly investment amount will be directly debited from your bank account on the specified date.

You need to transfer/depsit the money for RSP Insure activation fees, other than regular stock purchase transactions.

No, your ledger balance will not be blocked. Your funds in ledger will be used at the time of placing actual RSP Insure orders in the market on the specified dates.

For example: if you have an RSP Insure to invest Rs 5000 monthly with the order placement date as 15th of every month. Then on the 15th of every month your ledger balance will be checked and depending on the availability of Rs 5000 free balance your RSP Insure order will be placed into the market.

No, in case of two consecutive or four separate RSP Order failures during the tenure due to insufficient ledger balance, the RSP Insure cover will be terminated. However pending RSP orders will be active and will pushed into the market on schedule dates.

If market price of the stock goes above the monthly amount, you need to increase your monthly RSP Insure Amount. Your insurance cover will also increase effective from next month onwards.

If you don’t increase your Monthly RSP insure amount, your order will not be traded. In such case that month’s amount will be carried forward to next month and thus next month order will be processed for double amount.

For eg; You have an RSP Insure of RS 3000 for Infosys and the shares price goes upto Rs 3200. You are required to increase your monthly RSP Insure amount. If you fail to do so, then that month order will not be placed and the amount will be carried forward to the next month. Hence your next month’s RSP Insure order will be processed for Rs 6000 (Rs 3000 for current month + Rs 3000 for previous month). Here you will be required to keep the unutilized amount in your trading account to ensure that the next month’s order is placed for double amount.

If your RSP Insure orders are not placed due to the share price is more than the monthly amount then this will be considered as rejection due to insufficient ledger balance. The amount will be carried forward to the next month & if on the order placement date order gets rejected due to insufficient funds in your ledger (Previous month balance amount + this month amount), this will be considered as rejection due to insufficient funds.

If two consecutive or four separate RSP Order failures during the tenure due to insufficient ledger balance, the RSP Insurance cover will be terminated. However pending RSP orders will be active and will pushed into the market on schedule dates.

No, RSP Insure Request can be placed only in the selected stocks, ETF (Exchange Traded Funds) and MF (Mutual Fund) units through exchange platforms (NSE- MFSS & BSE- StAR MF) mentioned in the RSP Insure scrip basket.

The list can also be viewed post login on the RSP Insure Request page through ‘Search RSP Insure Stock’ button once your RSP Insure Subscription is activated.

Note: RSL may include or exclude any stock from the RSP Insure Stock list at any time without any prior intimation. However, RSP Insure request already placed in any discontinued stock will remain active for the specified tenure.

No, RSP Insure request can be placed only in Cash segment.

No. Once you have placed your RSP Insure requests, RSL will place the RSP Insure buy orders on your behalf as per your RSP Insure schedule for the stock. You need NOT login to your account every time to purchase the shares

RSP Insure is a monthly investment plan; and we have defined four dates 7th, 15th, 22nd and 28th. Hence your RSP Plan order will start from the nearest RSP Insure Start Date after RSP Insure request placement.

For example: If your RSP Insure request is placed on 12th of September, then your first RSP order will be placed on 15th September. If request is placed on 15th, then your first order will be placed on 22nd.

Your RSP Insure order will be placed into market between 9:30 AM to 10:00 AM.

Note: Client’s orders under the scheme will be placed during 09:30 AM to 10:00 AM in the market hours on the scheduled order date on best effort basis; however the order placement time may change due to system failure or any other reason. In such circumstances RSL should not be held responsible or liable for any actions, claims, demands, losses, damages, costs, charges, and expenses which client may suffer, sustain, or incur due to change in order placement time or non placement of the order.

RSP Insure is an amount based plan wherein the monthly investment amount specified by you (or approximately the same) is invested in your desired stock/ETF/MF on the scheduled date every month

At the time of placement of your RSP Insure order, since quantity of shares has to be specified, the same will be calculated by dividing the RSP Insure monthly amount specified by you with the previous day’s closing price of the stock plus 5% of the closing price.

Quantity = RSP Insure Amount / (Previous Day’s Closing Price + 5% of Closing Price)

Any fractional quantity will be ignored and order will be placed for the balance quantity. The actual order value would be based on the market price for the quantity so calculated above.

To calculate the no. of shares to be purchased based on the last closing price, 5% will be added to the closing price

For Example: If closing price of ABB is Rs 800 and RSP Insure request is placed for Rs 5000. Though as per previous day’s closing price, RSP Insure order should be placed for 6 (Rs 5000/800 = 6.25) shares, however in this case order will be placed for 5 shares (500/840 = 5.95) only, because adding 5% to the closing price will amount to Rs 840 (800+5%), to ensure that the RSP Insure order does not go above the specified amount.

However, in case of very volatile movement in the stock the actual RSP Insure amount may go up marginally above the specified RSP Insure amount due to the reason that the quantity is calculated based on previous day’s closing price and the order is executed at the current market price.

Since quantity of shares to be purchased for each order will be calculated out of RSP Insure Monthly Amount as per above formula and any fractional quantity will be ignored, hence the traded value may be less than the defined monthly amount. Remaining balance amount will be carried forward to the remaining balance.

For eg, you have a monthly RSP Insure plan of Rs 5000 for ACC. Your first order has been executed for 4 ACC at the rate of Rs 1200, hence your trade value will be Rs 4800, hence the balance Rs 200 will be added to the next order and your next order will be processed for Rs 5200. Thus the remaining balance of each month will be carried forward to the next month and in this way the next month order amount will be sum total of monthly amount and previous month’s remaining balance.

You should keep the unutilized RSP insure amount in the trading account to ensure the availability of sufficient fund for next month’s order as the remaining balance of previous month is added in the RSP Insure order amount.

Yes, once your RSP Insure facility is activated, you can place multiple RSP Insure request online or through CNT/Branch/Franchisee in same or different stocks, however your total RSP Insure Cover amount cannot go above RS, 10 lacs at any point of time.

In case the defined RSP Insure order placement date falls on a trading holiday, then the order will be placed on subsequent trading day.

All RSP Insure orders will be placed as market orders. Once your RSP Insure order is executed successfully the same will reflect in your RSP Insure Summary page with the traded price.

If you do not have sufficient free ledger balance as required to place your RSP Insure order, your RSP Insure order for that date will fail which will be displayed in RSP Insure summary page as failed order.
This month amount will be carried forward to next month.

Yes. Reliance Securities Ltd. is merely your agent for placing orders as per the instructions given by you under the facility. RSL does not have any role to play in the execution of trades after the orders have been placed. Trade execution takes place at the exchange platform as per the order matching rules of the exchange. Thus there is a possibility that orders may be executed only partially or may not be executed at all; as is the case with normal cash transactions as well.

If any RSP Insure order fails due to any reason, the same order will not be attempted again or will not be clubbed with any future orders irrespective of the sufficient ledger balance. The balance amount will be carried forward to the next month & will be added in the monthly RSP insure amount.

However your remaining future RSP Insure orders will be active and will be placed for execution on the scheduled dates.

The "RSP Insure Request Summary" is a page which displays the details of the RSP Insure requests placed by you. You can view the summary by visiting the RSP Insure Request Summary tab under the RSP Insure link. It provides the details of your entire RSP Insure with RSP Insure Request Date, Stock Name, Amount, Total Tenure, Total No. of Orders, No. of Pending orders, Next Trigger Date, Status, Request Placed By and RSP Insure Schedule from first to last order, traded price.

Your RSP Insure orders under the RSP Insure Schedule may have four types of Order Status as below:

1. Pending- When the order is pending to be executed in future.
2. Unsuccessful – When the defined RSP Insure amount is less than the price of one share (calculated as per point no. 18)
3. Triggered – When the order is triggered to the exchange for execution.
4. Cancelled – When the RSP Insure is cancelled by you.
5. Traded – When the order is successfully executed.
6. Rejected – When the order is rejected.

Yes, you can specify only one stock in an RSP Insure request. Hence if you want to place RSP Insure requests for more than one stock you would be required to place separate RSP Insure request.
Once PD form is submitted and accepted, there is NO need to submit the PD form again for additional stock selection.

Yes, if you feel that your current stock is not performing well or you want to change the stock for any other reason, you can go to RSP Insure Summary page and can change the stock symbol.

Yes, you can increase your Monthly RSP Insure Amount. If the stock price goes above the monthly RSP Insure amount, it is suggested that you should increase your Monthly RSP Insure Amount. Your remaining RSP Insure order will be placed as per increased monthly RSP Insure amount.
Your insurance cover will also increase effective from next month onwards, but not exceeding Rs 10 Lakhs at any point of time.

Yes, once your RSP Insure facility is activated you can place the request through Call N Trade or through your Dealer as well.

Settlement of RSP Insure transactions would be done in the same manner as cash transactions.

Yes. Stocks bought in your demat account through RSP Insure are at par with the ones bought by you in the cash segment. You can therefore sell/ otherwise deal in such shares at anytime as per your requirement.

Activation and Termination of Insurance Cover

Once the PD From is Accepted, insurance cover will be granted to you effective from next month onwards. Once the PD form is accepted, your account will be charged an “RSP Insure Activation Fee” of Rs. 2500.

Yes, you will be issued a Certificate of Insurance (COI) once your insurance cover has been accepted and started.

1. At the end of the RSP Insure tenure, i.e; upon successful execution of all RSP Insure orders as registered or till the client attaining 60 years of age whichever is earlier.
2. In case of failure of to pay 2 consecutive RSP Insure Installments due to non availability of funds
3. In case of failure of to pay 4 RSP Insure Installments during the entire tenure due to non availability of funds.
4. In case the client cancels all future RSP Installments.
5. Selected stock is merged / de-merged / delisted / suspended on exchange & client fails to change the stock.

Calculation of Sum Assured

The sum assured will be the amount equivalent to sum of all pending RSP Insure orders across all RSP Plans (equities + mutual funds) subject to a maximum of Rs 10 lakhs.

For example: If client has an RSP Insure of Rs 5000 (total RSP orders =10years * 12 months = 120), then after 3 months the sum assured applicable to the client will be (Rs 5000 * 117 order = Rs 5, 85,000).
After two years sum assured will be Rs 4, 80,000 (Rs 5000 * 96 (120-24) months)

If you have multiple RSP Insure request, the sum assured will be sum total of all pending orders subject to a maximum of Rs 10 lacs across all RSP Insure request.

Settlement of Insurance Claim

In case of claim of Insurance by nominee, claim documents will have to be submitted to RSL branch. Branch will send such documents to HO. HO processing team will forward the document to R-LIC. RLIC approves the claim. RSL will issue a cheque in favour of Nominee as mentioned in RSP Insure Nomination form. If there is any pending debit in client trading ledger then such amount will be have to be settled before making final payment to Nominee

The beneficiary of the insurance cover can send the required document to RSL for claim settlement along with original COI. RSL will coordinate with the insurance company (Reliance Life Insurance) to help the beneficiary in the settlement of claim.

The insurance can be claimed in case of death of the client after the insurance cover become applicable (i.e.after acceptance of PD form)

However insurance cannot be claimed in case death of the client happens due to the following reason:
1. Death due to suicide
2. Death due to pre-existing conditions (No claims are payable for deaths due to sickness, diseases or accident which has occurred prior to the start of the cover).
3. Death during waiting period (No claims are payable for deaths occurring within 90 days of the insurance become applicable except for death due to accident).

1. A proof of age as prescribed by the insurance company
2. Death Certificate
3. Form B – To be certified by Doctor
4. Original Certificate of Insurance
5. Hospitalization / Medical reports
6. Any other document as required by the Insurance Company

1. First Information Report (FIR)
2. Post Mortem Report
3. Police Investigation Report

RSP Insure Cancellation/Modification

Yes, you can place a cancellation request for RSP Insure. Once the cancellation request is placed all pending orders for the RSP Insure will be cancelled & insurance cover will be terminated with immediate effect.

You can cancel RSP Insure any time online or through Call N Trade or through your Dealer, however if any RSP Insure order placement date is pending for today then you need to place the cancellation request before 08:30 AM.

For example if your next RSP Insure trigger date is 20th April 2011, then you can place the cancellation request before 08:30 AM on 20th April 2011.

RSP Insure tenure is fixed for 10 years, you cannot modify the tenure.

RSP Insure Charges

Yes. Once the PD form is accepted, you will be charged / debited with RSP Insure Activation fee of Rs. 2500. For each of your successfully executed RSP orders traded, brokerage @ 1% will be charged. Other statutory levies will be charged separately

No there is no charge on Cancellation.

Currently there are NO such charges, but if incidences are recurring for clients, then RSL may charge such customer for keeping insufficient funds and unnecessarily activating RSP Insure(s).
However, in case of two consecutive or four separate RSP Insure orders failures during the tenure due to insufficient ledger balance, the RSP Insure cover will be terminated.