Terms and Conditions Page

Terms and Conditions - Regular Stocks Purchase Insure (RSP Insure)

This product is only available for clients who are between the age group of 18 years to 50 years as per next birthday.This product has fixed tenure of 10 Years.

RSP Insure is a product offered by Reliance Securities Ltd. (RSL) which allows client to invest systematically in to instrument (Stocks / ETFs / Mutual Funds through exchange) of his choice & also provide them insurance cover which will take care of unpaid installments in the event of demise of the client.

Life Insurance cover provided is an arrangement between (RSL) & Reliance Life Insurance Company (RLIC) Limited through “Reliance Group term Assurance Scheme” of Reliance Insurance Company Limited.

Trade execution is subjected to availability of sufficient unencumbered (clear fund) in client’s ledger balance in RSL trading account.

The Product is not a PMS or mutual fund or any other collective instrument/scheme introduced by RSL. All transactions are executed with the client’s consent only.

RSL may include or exclude any stock/Mutual Fund from the RSP Insure Stock list at any time without any prior intimation. However, RSP Insure request if already placed in any discontinued stock/Mutual Fund will remain active for the specified tenure if it is being traded on the Exchange.

If stock is merged / de-merged / delisted / suspended on the Exchange, client needs to change his RSP Insure stock, selected earlier before the RSP Insure order placement date. In case if the client fails to do so his orders will be rejected. If any such rejection (including rejection due to insufficient funds) happens twice consecutively or 4 times in total, during RSP Insure tenure, Insurance cover will be terminated effective from next month onwards.

Client can also place RSP Insure request by logging in to his online account. However, it is mandatory for the client to submit the signed Personal Declaration (PD) form & Nomination form in physical at RSL Branch. Because insurance cover will only start on the basis of information provided in the PD form.

Client can register for RSP Insure by giving a physical request (Application Form, Terms & Condition & PD Form, Nomination form). If physical request is given, RSP Insure request can be placed by the dealer mapped to you or by Call N Trade Desk based on your information.

The first RSP Insure installment will be placed on the nearest date out of 7th, 15th, 22nd or 28th after RSP Insure request is placed

RSP Insure is an amount based plan, where the order will be placed on the Exchange for no. of shares to be purchased every month, hence at the time of placing client’s RSP Insure order the required quantity will be calculated based on the previous day’s closing price plus 5% added to it, which is illustrated as follows:
The formula would be:
Quantity = Monthly 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.

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 ( 5000/800 = 6.25) shares, however in this case order will be placed for 5 shares (5000/840 = 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 above the specified RSP Insure amount, as calculation of the quantity would be based on previous day closing price and execution of the order by the system at the market price.

Quantity of shares to be purchased for each order will be calculated out of RSP Insure Monthly Amount as per the formula defined under point no. 11 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 and added to the next month installment based on which the quantity will be calculated for the current month.
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, the balance Rs. 200 will be added to the next order which 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.

In case any RSP orders is not generated / executed as the share price is more than the monthly amount or the order is not executed fully or partially due to no matching sell order found then that month’s full/remaining amount will be carried forward to the next month.

Client’s 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 balance of previous month is added in the RSP Insure order amount.

Client’s RSP Insure orders under this Product will be pushed to the Exchange(s) by RSL from 09:30 AM to 10:00 AM in the market hours on the order date specified by the client, on best effort basis, however, the order placement time may vary due to system constraint 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 the client may suffer, sustain, or incur due to change in order placement time or non placement of the order

14. All the orders under the Product will be placed at Market Rate as a delivery based transaction. In case the scheduled order placement date/day falls on a trading holiday, then the order is placed on subsequent trading day.

For example: Client having RSP Insure with the scheduled order placement date as 15th , hence on 15th of every month the client’s RSP Insure orders will be placed, However, if 15th falls on Saturday/Sunday or trading holiday then the order will be placed on the next trading day.

15. RSL will place only buy Good till Day order based on the instructions received from the client. Selling will be at the sole discretion of the client only. Once the RSP Insure order is executed, the same will be considered as normal delivery transaction and a Contract Note for the same will be issued as in case of a normal delivery trade.

16. On the defined trigger date, if the selected stock reaches upper or lower circuit, the order will be kept live till the end of market hours. In this case, the order may or may not get successfully executed depending upon the market.

17. If any RSP Insure orders remain pending for execution due to any reason, the same order will not be attempted again or clubbed with any future orders irrespective of the sufficient ledger balance.

However client’s remaining future RSP Insure request will be active and order will be placed for execution on the scheduled date.

.Securities/Mutual Fund investments per se are subject to market risks and there can be no assurance or guarantee that the objectives will be achieved. Each client is advised to consult his/her own financial advisor/professional tax advisor before availing of the Product

. The Company may at its absolute discretion discontinue the Product completely or partially with a prior notice of 30 days to the client. All pending RSP Insure instruction standing on the withdrawal date will be cancelled. Insurance cover in such case will also cease, with calling off of the product.

RSL reserves the right to modify RSP Insure terms and conditions by giving 30 days prior notice to the client enrolled for the Produc

RSL is merely client’s broker for placing orders as per the instructions given by client under this 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 also. /li>
SEBI / Exchange(s) rules, regulation, By-laws and guidelines as issued from time to time will be applicable to all the RSP Insure orders.

CANCELLATION:

If client wants to cancel RSP Insure then client need to login to the trading account and can place a cancellation request online or through CNT using security token or through Branch/Authorized Person/Sub-broker. All future RSP Insure for the stock will be cancelled immediately. However, RSP Insure cancellation request placed before 8:30 A.M. will be considered for the same day order execution, all RSP Insure cancellation request placed after 8:30 A.M. will be considered on next day order execution only.

For example, if an RSP Insure order is pending on 15th, a client can place the cancellation request before 08:30 AM on 15th.

Once the order is cancelled, the insurance cover provided will cease from next month onwards.
Clients are required to cancel each RSP Insure request individually whether for the same or different stocks or MFs. If any particular RSP Insure request is cancelled by the client, then the RSP Insure orders for that particular request will be cancelled only and not all the RSP Insure request for the same or different stock.

BROKERAGE AND FEES/CHARGES:

Client will have to pay a onetime charge of Rs. 2500 as RSP Insure Activation Charges. This charge will be debited to the clients’ ledger the day his Personal Declaration Form (PD Form) is accepted.

Each RSP Insure trade will be charged brokerage @ 1% irrespective of whether insurance cover is granted or not. All other statutory taxes & levies will be charged separately. RSL will have right to charge additional brokerage, If due to some reason lesser brokerage is charged during RSP Insure trades, additional brokerage if any, will be levied separately to clients account during the tenure of RSP Insure.
RSL reserves the right to modify the amount of brokerage, charges from time to time giving 30 days prior notice by way of displaying the same on the RSL's website. The client agrees to keep himself/herself updated in respect thereof.

Risk associated with CORPORATE ACTIONS

RSP Insure order may get affected due to different corporate actions announced by the company from time to time.
1. Bonus Issue and Stock Split: Number of shares to be purchased for each RSP Insure order is calculated on the basis of previous day’s closing price. Hence in case of Bonus Issue or Stock Split, the number of shares to be purchased may vary as per the monthly RSP Insure amount.
  The market price of the stock goes down substantially after the record date based on the split or bonus ratio. The system calculates the number of shares to be purchased for client’s, each RSP Insure order based on previous day’s closing price, hence the reduction in the shares price due to bonus issue or stock split post record date will not be considered resulting client’s RSP Insure order is placed for lesser quantity in regards to the monthly RSP Insure amount.
  For example; Market Price of RIL on the record date (15/05/2010) for a split ratio of 2:1 is 2000. After the record date on 16/05/2010, stock price goes down to around Rs 1000.
  If client have an RSP Insure of Rs. 10,000, we calculate the no. of shares for 16th May RSP Insure order based on 15th closing price and hence order will be placed for 5 shares (10,000/2000). In this case client’s RSP Insure order may be placed for Rs. 5000 (Rs 1000 * 5 shares) instead of client’s defined amount of Rs.10,000.
2. Right Issues and Ex Dividend: Stock price also goes down substantially post record date of Right Issue or Dividend declared by the said company. Hence, in case of these corporate actions the number of shares to be purchased for the RSP Insure amount will be less in regards to client’s defined RSP Insure amount as explained above.
3. De-listing of the Company: If the company is delisted from the Exchange due to merger or any other corporate action, client’s RSP Insure will be stopped for that particular stock and the client will be required to change the stock out of the given RSP Insure scrip basket to keep client’s insurance cover active.
4. Change in Company Name or Stock Symbol: In case of change in company name or change in stock symbol, your RSP Plan stock name will be changed accordingly, however the same RSP Plan request will remain active with the changed name.
The clients who are participants of the Product will not hold RSL responsible for, or liable for, any actions, claims, demands, losses, damages, costs, charges and expenses which they may suffer, sustain or incur by way of the above offer.

Activation and Termination of Insurance Cover under RSP Insure

Life Insurance cover provided is an arrangement between Reliance Securities Limited (RSL) & Reliance Life Insurance Company (RLIC) Limited through “Reliance Group term Assurance Scheme” of Reliance Insurance Company Limited.

Acceptance or Rejection of Life Insurance will be subject to the information provided in Personal Declaration Form (PD & is at complete discretion of RLIC.
If the insurance cover of the client is rejected by RLIC due to any reason then the client will not be eligible for RSP Insure cover. However, client may choose to continue the investment under RSP Insure without any insurance cover or may choose to cancel the RSP Insure plan.

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

Clients under RSP Insure will be insured under the Group Term Assurance Policy issued by the RLIC to RSL. Each client will be provided the copy of Certificate of Insurance (COI), once the insurance cover becomes applicable. The client is required to keep the COI in safe custody, as in case of death of the client; the beneficiary will be required to produce original COI along with other required document as per Insurance Company’s policy for settlement of claim.

Insurance cover will cease due to following reason:
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 of Investor cancelling all future RSP Installments.
5. Selected stock is merged / de-merged / delisted / suspended on exchange & client fails to change the stock.
Note: The insurance cover cannot be revived if the same is terminated due to any reason mentioned above.

Calculation of Sum Assured:
Once the insurance cover is applicable to the client, 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 successful execution of the first 3 orders 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)

Settlement of Insurance Claim:

All claims and settlement of claim for the Insurance covered under RSP Insure will be subject to the COI.

In case of death of the client, the nominee has to inform RSL within 3 months of the death of the client. The nominee needs to file the claim along with the required document for claim settlement as per the Insurance Company’s policy.

If the claim is filed after 3 months of death of client, same shall be subject to investigation by RLIC.

The insurance cannot be claimed in case of 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).

The sum insured will be calculated from the date of death.
In case of claim of Insurance, RSL will issue a cheque for the claim amount in favour of Nominee mentioned in the RSP-Insure Nomination form at the time of availing RSP Insure product.

	Reliance Securities
	A Reliance Capital Company