Branch Process Manual-Feb09

Version 4.
0 February, 2009

Page 1

BRANCH PROCESS MANUAL

Compiled by : Q A Team __________ Date: 10th Feb,2009

Reviewed by : Mr. Sanjay Ghosh
th
(V P – Quality Assurance) __________ Date: 10 Feb,2009

Approved by : Mr. Amit Majumdar
th
(Exec. Director – Ops & Alt Business) ___________ Date: 10 Feb,2009

Effective Date: 10th Feb,2009

Revision Date: ______________

Reason for Revisions:
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

Page 2

Foreword

People, Process and Technology are the three most important verticals in
today’s business. In pursuit of providing service truly personalized it’s very
important for all Angelites to have a clear understanding of the processes.
However, I also firmly believe that any process is as effective as it’s understood and
more importantly, it’s accepted to be important. Therefore, unless there is an
acceptance of a need to have processes in the first place and then to also have a
clear understanding of those processes, our services cannot be effective. You will
appreciate that in business and especially the one that we pursue ever so
passionately, it’s the operational efficiency that retains customers and we all know
the exponential costs saving in retaining a customer than getting a new one! Every
successful corporate enterprise has a core strength, an intrinsic cutting edge that
keeps it rising up the value chain and brings it closer to customers. We should
never lose sight of this.
Branch Process Manual (BPM Ver 4.0) is designed in such a manner, which
practically covers a broad‐based idea of all existing processes and changes that had
taken place in past one year. An intent reading of this document will help you
achieve efficiency and in return, achieve customer delight!
A strict adherence of BPM 4.0 is highly recommended for all branch employees.
Employees are requested to sit for On‐Line Evaluation Tests once the learning is
complete.
For any clarifications or suggestions, please feel free to write to the process owners
as mentioned in the manual.
It may please be noted that this manual, contents and processes outlined therein
are proprietary information of Angel. Nobody is permitted to utilize or copy the
same for any use other than for using the same for carrying out the operational
process at Angel.

Regards
Amit Majumdar
(Executive Director – Operations & Alt Business)

INDEX

Page 3

Sr. No Particulars Page No.
I About Angel 12‐18
1 Investment Committee 14
2 About Angel 15
3 Our Vision 16
4 Our Business Philosophy 17
5 CRM Policy 18

II Compliance 19‐38
1 Marketing 21
2 Accounts Opening 21
3 Risk & Dealing 21
4 Issue of Contract Notes / Bills 22
5 Collection 23
6 Pay ‐ out Systems 24
7 Other Matters 24
8 General Check List on BSE & NSE Compliances 26
9 Guidelines to deal cases of Clients defaults 27
10 Annexures 30‐37

III Sub‐Broker Registration 39‐53
1 Guidelines for registration as a remisier for individual 41
2 Guidelines for registration as a sub‐broker for individual 43
in BSE
3 47
Guidelines for registration as a sub‐broker for individual in NSE and
NSE F&O
4 Remisier and Sub Broker Registration Checklist 52

Page 4

54‐78
IV KYC
1 Introduction 56
2 KYC First point of contact for customer delight 56
3 KYC processes at Angel (CSO) 57
4 Documents required 57
5 Important points to be remembered? 62
6 Important links used for KYC 64
7 Checklist of Documents Required for Opening Trading Account 73
8 Checklist of Documents Required for Opening Commodities 74
Account
9 KYC Checklist 75
V Dealing 79‐114
1 Introduction 81
2 Risk & Dealing 81
3 Dealer: Pre‐Market Activity 82
4 Dealer‐ Market Activity 87
5 Dealer‐ Post Market Activity 87
6 Other activities 88
7 Dealers Call Evaluation Process 89
8 Basics of Stock Market 90
9 Securities : a) Regulator 91‐94
b) Participants
10 Secondary Market : a) Stock Exchange 95‐99
b) Stock Trading
11 Products in Secondary Markets 99
12 Products and Services we offer at Angel 100

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13 Derivatives 103
14 Miscellaneous: a) Corporate actions 104‐111
b) Index
c) Clearing & Settlement and Redressal
d) Auction procedure.
15 Dealing BPS Checklist 111

VI 115‐141
Security Of Your Shares DP/DEMAT
1 Introduction 117
2 117
Advantages of having DP a/c with Angel
3 Different features of Angel’s DP 118
4 Tracking of transfer of shares 119
5 Charges for Depository Services 120
6 Benefits and connectivity requirements 121
7 Compliance requirement for Branch 121
8 Filling of DIS for different transactions 122
9 Points to be noted for Dematerialization of Shares 123
10 Useful utilities and link for DP services (cross net) 124
11 Pay‐in shortage confirmation 129
12 Pay‐out process and shortage confirmation 130
13 Auction Bills 133
14 Marking of shares for F & O collateral and margin reports 133
15 Corporate actions 135
16 Important notes 136
17 Additional useful utilities/ links for DP & Demat services 137
18 DP/ Demat checklist 137

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VII 142‐212
Banking Operations
1 Introduction 144
2 Banking operations at branches 144‐159
3 Cheque bouncing procedure 159
4 Essential reports to be viewed by the branches 159
5 Process for requesting for a pay‐out 160‐175
6 The Bank Reconciliation Policy 175
7 The policy for Inter‐ segment fund transfer 177
8 Exhibits related to banking 179‐199
9 Annexures 200
10 Banking Checklist 210

VIII 213‐221
Investment Advisory Desk
1 Introduction – Investment Advisory at Angel 215
2 IAD: Pre‐Market Activity 216
3 IAD: Market Time Activity 217
4 Dealer: Post Market Activity 218
5 Other activities 219
6 Certifications 220
7 Reading Research reports, sector reports, event updates 220
8 IAD Checklist 220

IX Portfolio Management Services 222‐230
1 Why should one invest? 224
2 Portfolio Management Services 224
3 Portfolio Management Service (PMS) at Angel 224

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4 Key elements of Angel's PMS 225
5 PMS operational process flow and research domain 225
6 Different products in PMS offered by Angel 226‐228
7 Benefits which investors gain from our PMS 228
8 Fee structure 229
9 PMS operational process at CSO 229
10 Documents necessary for PMS 229

X Initial Public Offer (IPO) & Mutual Funds (MF) 231‐282
1 What are Mutual Funds? 233
2 What are the benefits of investing in Mutual funds? 233
3 234
Types and schemes of Mutual Funds
4 Mutual Fund sales process flow 236
5 MF Application form process flow 237
6 Why MF with Angel? 240
7 Back‐end support: Angel Back office (MF) 242
8 What is Initial Public Offer or IPO? 257
9 Hierarchy for an IPO 258
10 About Angel’s IPO Distribution (Pre and post IPO process) 259
11 Annexure 268

XI 283‐290
Trading in the new age E‐Broking Services
1 Introduction 285
2 E‐broking products offered by Angel 285
3 USP's of Angel's E‐broking service 288
4 The salient features of Angel's E‐broking Service 289

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XII 291‐312
Risk Management
1 Introduction 293
2 Importance of Risk Management 293
3 Processes in Risk Management 293
4 How to identify, monitor and control risk ? 293
5 Online Risk System 293
6 Offline Risk System and two major reports in Offline Risk 294
System
7 Comprehensive Risk Report 294
8 297
Pure Risk and Projected Risk .How are they calculated?
9 Collection Report 297
10 Benefits of Online and Offline system 299
11 F&O margin violation report 299
12 Case Studies: F&O Margin Violation Report against F&O 300

Ledger balance in Collection Report.
13 SB Credit 305
14 Penal Charges 306
15 Risk Management checklist 310

XIII Margin Funding 311‐323
1 Introduction 315
2 Policy 315
3 Account Opening for Margin funding 318
4 Margin Requirements 320
5 Buy 320
6 Sell 322
7 Funds Payout 323
8 Shares Payout 323

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9 Risk Management 323
10 Interest Charge 323
11 Repayment 323

XIV 324‐337
Technology At Angel
1 How important is IT for angel 326
2 What are the hardware requirements for our clients 326
3 What service standards does angel follow for an ideal IT 327
setup
4 Which are the different technologies angel provides for 328
connectivity
5 For all exchanges: cash, F&O & commodities 329
6 Processes followed by IT at regional branches 330
7 Annexure.1: ODIN checklist: followed everyday 333
8 Annexure 2: WAN link testing: followed on weekly basis 334
9 Annexure 3: UPS testing: followed fortnightly 335
10 Angel advancing with technology 336
11 New Branch Commissioning 336

XV 338‐356
Commodities Operations
1 Introduction 340
2 Essential Reports to be viewed by branches 340
3 Deliveries & Settlement 350

XVI 357‐390
Quality Assurance
1 Definition of Quality 359
2 Key Benefits of Quality to an organization 359
3 Angel definition of Quality & QA Policy 360

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4 Role of Quality Assurance Cell At Angel 361‐378
5 BPS 379‐389

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CHAPTER ‐ I
About Angel

Page 12

CHAPTER COVERAGE

1. Investment Committee

2. About Angel

3. Our Vision

4. Our Business Philosophy

5. CRM Policy

Page 13

Page 14

Page 15

Page 16

Page 17

Page 18

CHAPTER ‐ II
Compliance

Page 19

CHAPTER COVERAGE

1. Marketing

2. Accounts Opening

3. Risk & Dealing

4. Issue of Contract Notes / Bills

5. Collections

6. Pay‐out Systems

7. Other Matters

8. General Check List on BSE & NSE Compliances

9. Guidelines to deal cases of Clients defaults

10. Annexures

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1. MARKETING

Various modes for tapping prospective clients [like personal references,
telephone directory, and existing clients] may be used.

Personal meeting with a client while establishing relationships and then
periodical meets advocated for feedback.

Due care is required to be exercised to see that whatever we promise , in
terms of providing services, is fulfilled and honored. Absolute restraint is
advocated in not promising anything which is unfair, unrealistic or not

capable of being performed as per rules of the trade [like guaranteed
returns, allowing continuous debits etc].

2. ACCOUNTS OPENING

At the time of accepting the KYC forms, the branch staff should meet the
clients and clients should be interviewed to ascertain the background,

level of knowledge of the market etc.

While processing new applications, references should be insisted on and

verified.

Staff should be provided adequate training to process the account

opening procedure.

Original documents for PAN, Residence proof etc should be verified and
copies kept. All copies and supporting documents sent to the KYC
should be signed by the Client. The Branch should verify the originals

and affix a stamp “Verified with Originals” and sign the same.

First two pages of KYC should be kept at the branch level for signature
verification, etc in future.

A Database of all Clients should be maintained with all the crucial
information in an Excel Sheet for ready reference by the Branch staff.

3. RISK & DEALING

Branch to continuously monitor the trading account of the client &
ascertain risk, and give periodical follow‐up calls for the recovery of dues
[including margins, M to M, VaR etc].

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While allowing positions/exposure, the deposit, Networth etc must be
kept in mind.

Orders for trade should be accepted from clients or authorised persons

only. Requisite authority letter for this has to be obtained, in advance.

For illiquid options, dealers & sub brokers to take care & not entertain

unrealistic prices.

Before executing any trade, client positions/margins etc need to be
checked up.

Caution to be exercised by dealers for any order for illiquid scrips.

Branch should avoid any unfair trade practice as defined in Unfair Trade
Practices Regulations.

Upon execution of trades, confirmation to be given to the client
immediately after market hours. The tele‐conversations relating to trade

confirmations should be recorded and preserved carefully for future
reference/use.

Any request for code‐change should be critically examined. To be
monitored by branch heads personally. In BSE, the erroneous client codes

can be changed at the BOLT itself in the post‐closing session. In NSE, the
changes have to be informed to the CSO, latest by 3:45 PM. Any changes
made thereafter, have to be made in the back office and if made without

the approval of the exchange, they attract penalty.

Any error in punching of orders must be immediately reported at the

CSO for insurance claims. All trade details, along with a brief description
of the incident, terminal no/ BOLT No, Name of the dealer, NCFM Regn

no. Etc have to be furnished immediately to the CSO, which will provide
proper guidance in the matter after reviewing the details.

4. ISSUE OF CONTRACT NOTES / BILLS

Contract notes are to be issued within 24 hours of the trade. Mode of
dispatch to the client and documents evidencing dispatch to be carefully
monitored & maintained.

Name of the person signing contract notes to be printed on the top. The
signatory should be duly authorised by the CSO and his Specimen
signature has to be filed with the exchanges in advance. Any changes in

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the Authorized Signatory must be intimated to the CSO for necessary
actions thereto.

When contract notes are sent by courier, an acknowledgement is to be

properly kept. Similarly, acknowledgements are required to be kept
properly for all contract notes irrespective of the mode of delivery.

Client daily Margin statement is to be printed on a plain sheet and sent
along with the Contract Notes on a daily basis.

If somebody else is collecting /signing the acknowledgement for contract
notes on behalf of the client, then the necessary authority letter of the

client should be obtained / kept. (Format attached as Annexure ‐ 1)

5. COLLECTIONS

A continuous process requiring due importance.

Segment‐specific follow‐ up on a continuous basis required.

Proper verification for 3rd party cheques should be done. 3rd party
cheques are strictly not allowed and cannot be accepted.

For pay orders, verification required to see if they are made from client’s
account only.

For cheque bouncing, the detailed procedure set out by the CSO must be
followed. (refer guidelines attached for procedure)

Squaring‐off process, where collections are not coming, must be adhered
to with proper procedures and documents.

Client funding should not be done with a view to deliberately getting
business.

Where clients are maintaining a running account, it should reach zero
level periodically. Monitoring required.

Monthly confirmation of the running account must be obtained from
clients.

Inter‐segment funds transfer [equity segment only] must be followed as
per the procedure laid down. (refer Annexure ‐ 2 for procedure)

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6. PAYOUT SYSTEMS

Payout is required to be made within 24 hours.

Where bill to bill system of accounting is maintained, payouts are

required to be sent within 24 hours after the same has been received from
the Exchange.

Before payout, branch should ascertain the client’s risk & position when
the payout cheques are to be released.

Securities to the client required to be delivered within 24 hours after the
same have been received from the Exchange.

7. OTHER MATTERS

Board showing the Regd Office of the company should be displayed
outside the Branch office.

SEBI Registration Certificates & BSE, NSE, MCX & NCDEX are required
to be displayed on notice boards at the reception area of the Office.

Name‐board to meet the requirements of the Companies Act [Reg office
address must be mentioned in the name board].

Any advertisement to be given by the Branch or its Sub Broker has to be
referred to the CSO [for seeking approval of the Stock Exchange].

Registration under Shops and Establishment Act or any other local rules
to be arranged.

Municipality permission for putting up Angel’s Sign board to be
obtained from the local authorities (if reqd.)

Employee attendances register to be properly maintained. (As per local
rules)

Client’s complaints register to be maintained /monitored. Redressal
mechanism to be established.

Intimation of changes in contact details of Sub‐broker/ Remisier to be
sent to the CSO instantly.

Provisions of Anti Money Laundering Act should be explained to the
Branch Staff & Sub brokers. All sub brokers have to appoint a Principal
Officer after SEBI registration under the Act and report the appointment

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o

f
The details of Rules etc in this regard

can be had from the Back office.
t
Allotment of CTCL terminal to a Sub broker to be done only after the
h
application for registration as a Sub broker has been received at the CSO
and has been found complete in all respects. It should continuously be
e
ensured by the branch that the terminal allotted is being used by the

rightful user who is NCFM certified, at the location allotted.

s
Risk & hazards including system failure, connectivity‐related issues etc
a
must be explained to Sub brokers.

m
Litigations‐related issues to be reported to / referred to CSO.
e
Branches should ensure that Service Tax registration is immediately

obtained by the Sub broker on his registration as a Remisor or Sub –
broker in BSE and Authorised Person/Sub broker in NSE. A copy of the
t
Service Tax registration should be sent to the CSO.
o

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.

Page 25

GENERAL CHECKLIST ON BSE & NSE COMPLIANCES

8.

Sr No Particulars Due Date Responsibility
1 Bulk deal reporting(0.50% of Same day evening Branch to report
the total no. of shares listed data to CSO
on Exchange)
2 Issue of Contract Notes & Within 24 hrs from the Execution of Branch
ensuring the same is signed trade ( POD’s and acknowledgements
by the person Authorised by to be maintained properly)

the Company and approved
by the Exchange. Client

Margin Statement should be
sent along with the Contract
Notes daily.
3 Reporting of Allotment of Before allotment of terminal Branch
CTCL Terminals or IML
4 Advertisement Approval to be taken at least 7 days Branch to send the
in advance before issuing an matter to the CSO
Advertisement
5 Appointment of Authorised / Approval to be taken before Branch to send
Remisor appointment of authorised persons papers to the CSO
6 Sub broker Registration Papers to be sent to the CSO Branch
immediately on tying up for a Sub
broker relationship.
7 Display of SEBI Regn. At all times Branch
certificates and NSE /BSE
/MCX / NCDEX on Notice

Boards
8 Ensure the NEAT/ BOLT and At all times Branch
CTCL terminals are used by
Authorised persons. Names

of Employees who have left
to be removed immediately
9 Back office logins of At all times Branch
Employees who have left to
be disabled immediately
10 Review operations of SB – At all Times Branch
location of CTCL terminal,
User of the same, review of
trading patterns etc

Page 26

GUIDELINES TO DEAL WITH CASES OF CLIENTS’

DEFAULTS & CHEQUE BOUNCING

Procedure in case of Client defaults:

a)
Contract slips/bills must be signed properly by the clients/authorized

representatives. Proper authorization letter should be taken in case client

sends somebody else for collection. Although signature need not be

perfect, but it should be comparable and undisputable.

b) In case of default‐ if the client states that he is unable to pay immediately

but promises to pay later, adopt the following procedure:‐
• try to take post‐dated cheque/s for amount due;
9. • get the ledger and contract notes signed by the client;
• obtain letter from the client covering the schedule of future payments;

c) Preserve :
• signed contract notes / bills ;
• proof of sending bills/contracts by courier etc.; and
• proof of delivery of bills/contracts by courier etc.
• Arrangement for recording of telephone conversations with
defaulting client should be made covering Amount/s, Due Date/s,
Date of recording Exchange/s and major scrips.

d) In case of adjustment of payments/shares against accounts of
family/friends or third party payments, proper authority letters from all
the parties must be obtained.

e) In case of disputes, order file and trade files of relevant day/s should be
preserved.

f) Time limit : If hopes of recovery by follow up have faded, inform the
Legal department immediately but not later than 15 days in case of
cheque bouncing and within 4 months in other cases. Also send original
above mentioned documents to Legal department at the CSO. For small
amounts i.e. below 50,000/‐ , offer the client the option to settle the
payment for lesser amount and close the business with him, since it is not
economical to initiate such cases.

g) Major defaults older than 6 months may also be intimated to the Legal
department at the CSO for civil recovery.

h) When default has already occurred, do not pass JV for transferring
funds. Obtain letters for all the inter‐exchange, inter‐segment, inter‐
family/friend transfers and third party payments should be backed by
proper authorisations signed by all the parties.

Page 27

i) In case of default, do not allow the client to trade further unless the debit
is cleared. Instances have been seen when despite cheque bouncing,
client was allowed to trade for a long time.

Procedure, in case of Cheque Bouncing

• Legal notice to a client for a cheque bouncing case is sent from the Legal
Department at CSO. For a Legal notice to be sent, the following are to be
kept in mind:

• The Cheque and the Bank memo in original have to be sent to the Legal
Department, CSO.

• If the cheque is already with CSO, proper instructions along with all
details of the client and the cheque have to be sent to CSO

• The Legal notice has to be sent within 30 days of Bank memo.

• In case the memo has become more than 30 days old, the cheque has to
be presented again in order to get a fresh Bank Memo.

• The branch has to inform CSO about the progress made with the client
after issuance of the notice. Also, a legal case will be filed in the courts
only after the branch has requested for the same.

Legal / Process for Recoveries:
Following is the brief note on the litigation process for initiating legal
actions for recoveries of dues from the clients:

a. Branch / Sub‐broker to promptly intimate CSO about Cheque/s
bouncing and / or Ledger Debit/s of clients.

b. CSO‐ Legal & Compliance, calls for required papers (returned
instruments, banker’s advises, copies of Contract Notes, PODs etc.) from
the Branch / sub‐broker.

c. Based on intimation / feedback from Branch / sub‐broker, CSO arranges
to issue legal notice (either as required under Negotiable Instrument Act
or for civil actions) to the Client – Normally a time period up to 15 days
is offered to a client to clear the dues thro’ legal notice.

d. CSO arranges to intimate the Branches / Sub‐brokers of legal actions
initiated by release of notice.

e. Based on intimation from CSO, it is expected that Branch / Sub‐brokers
would also attempt follow‐up actions with the Client for recoveries.
Branch / Sub‐broker are required to arrange follow‐up actions with the

Page 28

client and obtain DD / PDCs, within 15 days’ time. The outcome should
be immediately informed to CSO.

f. Depending upon outstanding debits (Rs. 50,000/‐ and above) and
documentation / papers in order (returned instruments, banker’s
advises, copies of Contract Notes, PODs etc.) and upon expiry of time
limit given in the notice and if the payment has not come, actions
initiated to file criminal / civil/ arbitration case in appropriate court /
Exchange. Branch / Sub‐broker is expected to provide relevant
document in time to the CSO, to initiate the court process. Unless proper
back‐up papers are available, it would be difficult to proceed.

g. For criminal / civil suit/s, after filing the case, the court would list the
matter on its convenient date for verification / admission / further
direction/s. Then, upon hearing and after verifications, at a separate
hearing at a scheduled date, the court may direct the issue of summon/s
to the Opposite party for appearance, as may decided by the court.
Similar procedure would be adopted by the exchange in Arbitration
application/s for fixing the hearing date. Arbitration ref. is required to be
commenced within a period of about 6 months from the date of the last
trade by which the account of client turned into debit. Therefore Branch
/ Sub‐broker should, accordingly, arrange to intimate the CSO.. It has
been observed that the Exchange’s Arbitration mechanism is a faster
process, with an appeal jurisdiction available and hence this mechanism
may be preferable in such matters.

h. Once the case is admitted / listed, it would then undergo a process of
hearing / verification / examination / cross examination of evidence etc.
before a final order / judgment / award is pronounced. Thus, any
litigation is a process involving time, money and resources; and hence,
due care is required to be exercised in initiating / handling the process.

i. MIS Reports to the Branch:

j. CSO would arrange for an updated status report of litigations initiated
thro’ a software module / utility (to be developed), and the Region /
Branch would have viewing facility thereto.

Note: This note is a simplicitor, to list down the process in brief. Court
procedure, at times, may vary.

Page 29

10. Annexures:

(Format of Authority letter for executing trades/collecting contract notes by 3rd
party) (Annexure –

1)

From:________________________
_____________________________
_____________________________

Date:____________
To,
Angel Broking Ltd.
Angel Capital and Debt Market Ltd.
(Cash & F&O Segment)
Angel Commodities Broking Pvt. Ltd.
(Member of MCX and NCDEX)

Dear Sir,

Authority Letter
1. I/We am/are client/s of the above mentioned companies having Client
code _______. Since it is not possible for me/us to personally manage
my/our account / visit your office/Branch from time to time, therefore, I
hereby authorize:

Mr/Ms. __________________________who signs as _____________________:

‐ To collect contract notes, bills, ledgers, payments in my name, and
other correspondences and to correspond on my behalf;
‐ To place orders on my behalf from time to time;

Page 30

2. This authority shall remain in force till I/We inform you of any
change/revocation in writing.
3. I undertake to ratify the above acts done by my authorized person and
the acts done by him/her shall be binding on me.

Yours truly,

_______________________________
(Signature as per specimen recorded in the KYC form)
Name:
Client Code:

NOTE: 1) This authorization does not include the authority to receive
payments/scrips in the name of the authorized person / or to operate Bank/
Demat account, for which a Power of Attorney is required.

2) Sub brokers shall not be authorized to collect the contract notes
on behalf of their clients.

Page 31

( Format for Intersegment transfer NSE Cash to F&O)
(Annexure –2)

Angel Capital & Debt Market Ltd.
G‐1 Akruti Trade Centre,
Road No. 7, MIDC,
Andheri East, Mumbai 400 093

Sub : Request for Transfer of Funds from Cash Segment to F&O Segment.

Dear Sir,

I/We hereby request you to kindly debit my/our ledger account (client code
__________)by Rs._______________
Rupees_________________________________ ____________ _____________ ) in
the Cash Market segment and credit my ledger account / ledger account of my
Family member
Mr./Mrs/M/s_________________________________________________________
_ (client code___________) by the same amount in the F&O Segment

I/We hereby understand that the said amount would be debited in my /our
Ledger account and I/We hereby confirm that we will have no claim
whatsoever from the Company as the same has been done only on my/our
express authority.

Thanking you,

Signature: _______________________

Name: __________________________

Client Code: _____________________

Page 32

(Format for Intersegment transfer F&O to NSE Cash )
(Annexure – 2... Cont)
Date:

To,
Road No. 7, MIDC,

Sub : Request for Transfer of Funds from F&O Segment to Cash Segment

Dear Sir,

__________) by Rs. _______________ Rupees___________________________
__________________ _____________ ) in the F&O Segment and credit my ledger
account / ledger account of my Family member
Mr./Mrs/M/s_____________________
_____________________________________ (client code___________) by the same
amount in the Cash Market segment

express authority.

Thanking you,

Signature: _______________________

Name: __________________________

Client Code: _____________________

Page 33

(Format for Intersegment transfer BSE cash to NSE Cash)

Date:

To,
Angel Broking Ltd.
Road No. 7, MIDC,

Sub : Request for Transfer of Funds to Cash Segment of Angel Capital &
Debt Market Ltd

Dear Sir,

__________) by Rs. _______________ Rupees______________________________
_______________ _____________ ) and credit my ledger account / ledger
account of my Family member
Mr./Mrs/M/s_________________________________________________________
____ (client code___________) by the same amount in the Cash Market segment
of Angel Capital & Debt Market Ltd.

whatsoever from Angel Broking Ltd as the same has been done only on my/our
express authority.

Thanking you,

Signature: _______________________

Name: __________________________

Client Code: _____________________

Page 34

(Format for Intersegment transfer‐BSE Cash to NSE F&O)
(Annexure –2... Cont)

Date:

To,
Angel Broking Ltd.
Road No. 7, MIDC,

Sub : Request for Transfer of Funds to F&O Segment of Angel Capital &
Debt Market Ltd

Dear Sir,

__________) by Rs. _______________ Rupees____________________________
_________________ _____________ ) and credit my ledger account / ledger
account of my Family member
Mr./Mrs/M/s_________________________________________________________
____ (client code___________) by the same amount in the F&O segment of

whatsoever from Angel Broking Ltd as the same has been done only on my/our
express authority.

Thanking you,

Signature: _______________________

Name: __________________________

Client Code: _____________________

Page 35

(Format for Intersegment transfer – NSE Cash or F&O to BSE Cash)

Date:

To,
Angel Capital & Debt Market Ltd
Road No. 7, MIDC,

Sub : Request for Transfer of Funds to Angel Broking Ltd

Dear Sir,

__________) by Rs. _______________ Rupees__________________________
___________________ _____________ ) in the Cash Market Segment / F&O
Segment and credit my ledger account / ledger account of my Family member
Mr./Mrs/M/s_________________________________________________________
____ (client code___________) by the same amount in Angel Broking Ltd.

whatsoever from Angel Capital & Debt Market Ltd as the same has been done
only on my/our express authority.

Thanking you,

Signature: _______________________

Name: __________________________

Client Code: _____________________

Page 36

(Format for sending Intersegment Transfer by branch for multiple clients
or below Rs.3,00,000) (Annexure – 2.. Cont)
Date:

To,
Angel Broking

CSO,
Mumbai
Sub: Inter segment funds transfers

Dear Sir,

Please transfer the following amounts:

From To
Sr Client
No Code Name of client Segment Segment Amount

We are sending separately the authority letters received from Clients for amounts over
Rs.3,00,000/‐.

Thanking You
For Angel Broking,

______________ Branch ________________ ______________
Prepared By Approved By
Branch Head

Page 37

Helplines

Contact Person Designation Location Tel no ‐ Extn

Mr. Manish Khandelwal AVP – Ops & Compliance Akruti (022) 2835 8800 ‐ 592

Mr. Tarang Mehta VP – Legal & Compliance Akruti (022) 2835 8800 ‐ 551

Page 38

CHAPTER – III
Sub – Broker Registration

Page 39

CHAPTER COVERAGE

1. Guidelines for registration as a remisier for individuals

2. Guidelines for registration as a sub‐broker for individuals
with BSE

with NSE and NSE F&O

4. Remisier & Sub Broker Registration Checklist

Page 40

1. Guidelines for registration as a remisier for individuals

Remisier: A person who is engaged by a member primarily to solicit
commission business in securities shall be called a Remisier.

Registration of Remisier is with Bombay Stock Exchange Limited only
(Under Rule ‐ 216 to Rule 235 of Rules, Bye Laws & Regulations of the
Exchange).

Documents required for Remisier Registration are:
• Form B (Form for Approval of Appointment of Remisier)
(Name, Trade Name, Residence address, Office address along with
telephone numbers, Signature across the photo, Sex, DOB, Present
Occupation to be mentioned as investment consultant, Bank A/c details,
PAN No. (PAN is mandatory).
• Certified True Copy of PAN Card required.
• Minimum age requirement of the Applicant should be 21 years.
Age Proof & Address Proof (duly certified – by a C.A/ Notary).

Passport, Driving License, Ration Card, Voters Identity Card, Copy of
Income Tax Return.

• Qualification Proof (duly certified – by a C.A/ Notary)

Minimum Qualification Proof Required

HSC HSC Mark sheet

SSC + Experience of Minimum 2 years in SSC Mark sheet + Experience Letter from

Capital market Broker / Any of his Sub‐brokers (ref note )

Undertaking B (On the Applicant’s letterhead– Remisier Application)
duly signed by the applicant.

• Annexure A (On the Applicant’s letterhead– Remisier is not connected
with any other kind of forward business) duly signed by the applicant.
• Undertaking (On the Applicant’s letterhead– declaration for Remisier
cancellation on receipt of sub‐broker registration certificate from SEBI –
BSE) duly signed by the applicant.
• If the applicant was affiliated with any other Trading Member, then
Discharge certificate from the previous member is compulsory.
• Signature is required wherever applicable

Page 41

For a Sole Proprietorship Firm, the Firm Stamp is required on all the
documents and the proprietory rubber stamp and signature is required
across the photo.

• Additional Requirements for Partnership Firms are:

• Form for approval of appointment as remisior ‐ Form C is required
(name of the firm, address telephone number of the firm, copy of
partnership deed along with ROF status to be attached, Separate
Annexures for Partner to be attached. Bank details should be completely
filled in along with the date of opening of account for the partnership
firm
• Signature of partners required along with partnership rubber‐stamp,
wherever applicable.
• Annexure (separate annexures required for each partner, along with
separate photos on each annexure, stamp and signature across photo
required. In annexures, the following details need to be mentioned i.e.
name of the partner, residential address along with telephone
numbers/education qualifications, present occupation to be mentioned
as “Investment consultant”, Pan number, Bank details should be filled in
along with date of opening of account.
• Certified True Copy of PAN Card of all the Partners & the Partnership
Firm required by the CA/Notary along with membership or notary
number.
• Qualification proof of all the Partners required duly certified by C. A. /
Notary along with membership or notary number.
• Certified True copy of Partnership Deed/ registration certificate attested
by Chartered Accountant/ / Notary along with membership or notary
number.
• Undertaking B (On the Applicant’s letterhead– Remisier Application)
duly signed by all the partners along with the firm stamp.
• Annexure A (On the Applicant’s letterhead– Remisier is not connected
with any other kind of forward business) duly signed by all the partners
along with the firm stamp.
• Undertaking (without any date) (On the Applicant’s letterhead–
declaration for Remisier cancellation on receipt of sub‐broker registration
certificate from SEBI – BSE) duly signed by all the partners along with
the firm stamp.

Page 42

Note:

• All proof submitted should be duly attested by a C.A or a Notary along
with their membership/registration number.
• Kindly fill in the details of date/place/pan number wherever applicable
• Kindly mention applicant name on Form B/ Form C/Annexure
/Undertaking where it is printed as “ NAME OF THE APPLICANT”
• Signatures are required, wherever applicable
• Telephone number should be specified /Bank account opening date
should be mentioned along with the address and account number
• Kindly check that the date of birth is same in all the documents
submitted, in case there is a difference; submit affidavit for the same.
• If Mark‐sheet is submitted as qualification proof, kindly check whether a
passing mark‐sheet is provided (FAIL /EXEMPTION should not be
mentioned)
• All forms to be completely filled in. Wherever clause is not applicable,
please put N.A

Important Points:

• Sub‐ Broker registered with SEBI, Member of Other Exchange, cannot
become a Remisier.
• Only Individual /Proprietary Firm and Partnership Firm can become
Remisier. (A Corporate is not allowed to become a Remisier).
• It may be noted that the applicant can be a Remisier to only One Member
at a time. (Under Rule‐ 221 of Rules, Bye Laws & Regulations of the
Exchange).
• Member/applicant is required to read the form carefully and also to
go through Rules, Regulation and Bye‐laws of the Exchange related to
Remisier before appointing /applying for Remisier registration.

2. Guidelines for registration as a sub‐broker with BSE

Documents required for Sub‐broker registration with BSE are:

Certified True Copy of PAN Card required.
Two Demand Draft/Pay order of Rs.10,000/‐ drawn in favor of
“Securities and Exchange Board of India‐SEBI. & Rs. 1,000/‐ in favor of
Angel Broking Ltd.” Payable at Mumbai (being processing fees of BSE).

Member Sub‐broker Agreement (Name, Trade name and address of
applicant should be filled in wherever applicable (Refer note 1 & 2).

Page 43

Application form for Obtaining Recognition as Sub‐broker (Application
should be completely filled in, whichever clause is not applicable ‐ please
put N.A.

Form B (Application to SEBI for Registration). (Application should be
completely filled in, whichever clause is not applicable ‐ please put N.A)

Annexure A (Reference letter from the Bank ‐ Current or Saving A/c– as
per format enclosed).(Should be on Bank letterhead along with the bank
seal, duly signed by banker and the applicant)
Annexure B (reference letter from the Chartered Accountant– as per
format enclosed) (should be on letterhead of C.A. along with C.A. Seal,
signature & Membership number).

Annexure C (On the Applicants’ letterhead – Applicant is not involved in
any past offence).

Undertaking (On the Applicant’s letterhead – declaration for Remisier
cancellation on receipt of his Sub‐broker registration certificate from
SEBI).

Undertaking from the applicant that SEBI has not taken any action like
cancellation of registration /debarred or prohibited – on the applicant’s
letter head.

Undertaking for Angel from the Applicant (On letterhead of the
applicant & Duly signed)

Minimum age of the applicant should be 21 years. Age Proof (duly
certified – by a C.A/Notary).

PAN Card, (Certified true copy by C A or notary along with their
membership / Registration number)

Residential address proof ‐ (Birth Certificate, School‐Leaving
Certificate, Election Card, Passport, Driving License.)

Qualification Proof (duly certified – by a C.A/ Notary)


HSC HSC Marksheet

SSC + Experience of SSC Marksheet + Experience
Minimum 2 years in Letter from Broker / Any of
Capital market his Sub‐brokers (ref note
below )

Page 44

In case of Name Change ‐ Marriage Certificate/Affidavit is to be
submitted (even if name or Spelling of the applicant differs on sub‐
broker application ‐ name‐change proof is a must).
In case the Applicant is affiliated to any TM of another exchange – SEBI
Registration Certificate & SEBI fees payment proofs to be submitted
(duly attested by C. A)
For a Sole Proprietorship Firm, the Firm Stamp is required on all the
documents signed by the Applicant.
Additional Requirements for a Partnership Firm are:

• Certified True Copy of PAN Card of all the Partners & Partnership Firm
required. (certified by CA /Notary along with their membership
number/registration number)

Undertaking for Angel from the Applicant (On the letterhead of the
applicant & Duly signed by partners along with the seal.)

• Age Proof for all the partners (duly certified – by a C.A/ Notary).
• Qualification Proof for all the partners (duly certified – by a C.A/
Notary).
• A Copy of Partnership Deed Duly Certified by a C. A. / Notary.
• Certificate from Registrar of Firms (ROF) duly certified by C. A.
• All Partners’ Names & Firm Name should be mentioned in the C. A.
Reference Letter, Annexure C & Undertakings.
• Registered Partnership Deed truly certified by CA/Notary along with
registration number (Highlight the clause of Dealing in shares &
Securities in the partnership Deed)
• All Partners’ Signatures (with Stamp) required on Application for
Recognition as Sub Broker, Form B, Annexure C, Undertaking, Bank
letter and Agreement

Additional Requirements for Corporates are:

• Certified True Copy of PAN Card of all the Directors & the Company
required.
• Age proof of all the directors (duly certified – by a C.A/ Notary).
• A copy MOA & AOA/ Form 32 (any change in Director’s list/Sharing
pattern) should be submitted duly certified by a C.A or notary with
registration number (Highlight the point where the clause to deal in
capital market is mentioned.)
• Certificate of incorporation should be submitted duly certified by a
C.A/Notary.
• Annexure E (On the Applicant’s letterhead – Board resolution signed by
all the directors duly certified by a C.A)

Page 45

• Undertaking from the applicant that SEBI has not taken any action like
cancellation of registration /debarred or prohibited – on the applicant’s
letter head
• All Directors’ Names & Company Name should be mentioned in C. A.
Reference Letter & Annexure ‘C’ & Undertakings.
• All Directors’ signature (with stamp) required on Application for
Recognition as Sub Broker Form B, Annexure C, Annexure E and
Agreement.

Undertaking for Angel from the Applicant (On the letterhead of the
applicant & Duly signed by directors along with seal.)

Note:

• Franking of the Member ‐ sub‐broker agreement will be done by the
CSO.

• Signatures are required on all the pages of the Agreement at the end of
the page along with rubberstamp, in case of Sole proprietorship /
Partnership & Corporate firm stamp is required).

• All proof submitted should be duly attested by a C.A or a Notary. It
should consist of their signature, stamp & membership number /
Registration number)

• In case the Sub‐broker is registered as a Sub broker with any other
recognized stock exchange, then a certified copy of the SEBI registration
certificate is to be attached

• Name (SECURITIES & EXCHANGE BOARD OF INDIA OR SEBI) is to
be spelled correctly in demand drafts submitted/Kindly mention name
of the applicant on the reverse side of the demand draft. DD should be
valid for six months and should be of current date (not more than 15
days old).

• Kindly fill in the details of Date/Place/Pan No wherever applicable.

• Kindly mention status in form B as individual/Sole Proprietor / Partner
/ Director as per the constitution

• Kindly check date of birth is same on all the documents submitted; in
case there is difference, submit affidavit for the same

• If Marksheet is submitted for qualification proof, kindly check whether
passing marksheet is provided (FAIL /EXEMPTION should not be there)

Page 46

• All forms to be completely filled in. Wherever clause is not applicable,
please put N.A

with NSE and NSE F&O

Documents required for Sub‐broker registration in NSE are:

Certified True Copy of PAN Card required.

Demand Draft/Pay order ‐ of Rs.10, 000/‐ drawn in favor of “Angel
Capital & Debt Market Limited”).

Member‐Sub‐broker Agreement (Refer note 1 & 2) (Name, Trade Name
& Address of applicant should be filled in wherever applicable).

Form B (Application to SEBI for Registration)( Application should be
completely filled in; whichever clause is not applicable, please put N.A)

Annexure A (Reference letter from the Bank – as per format enclosed)
(Should be on Bank letter head along with bank seal duly by banker and
the applicant)

Annexure B (reference letter from the Chartered Accountant– as per
format enclosed) (should be on letterhead of C.A. along with C.A. Seal,
signature & Membership number).

Annexure C (On the Applicant’s letterhead – Applicant is not involved in
any past offence).

Annexure O (On the Applicant’s letterhead ‐ Applicant should not be
having an equity holding of 10% in another trading member).

Undertaking for Angel from applicant (on letter head of applicant)

Minimum age requirement of the Applicant is 21 years.

Trade Address Proof i.e. Office address proof certified by CA /Notary
along with membership/Registration number

Age Proof (duly certified – by a C.A/ Notary), PAN Card

Qualification Proof (duly certified – by a C.A/ Notary)

Page 47


HSC HSC Marksheet

SSC + Experience of 2 SSC Marksheet + Experience
years in Capital Letter from Broker / Any of
his Sub‐broker (ref note 5)
market prior to 1992

In case of Name Change ‐ Marriage Certificate/Affidavit is to be
submitted (even if the name or Spelling of the applicant differs on sub‐
broker application, change name proof is a must).

In case the Applicant is affiliated to any Trading Member of another
exchange – SEBI Registration Certificate & SEBI fees payment proofs to
be submitted (duly attested by C. A or notary.))

For Sole Proprietorship Firm, Firm Stamp required on all the documents
signed by the Applicant.

Additional requirements for Partnership Firm are:

• Certified True Copy of PAN Card of all the Partners & Partnership Firm
required.
• Age proof for all the partners (duly certified – by a C.A/ Notary).
• Qualification Proof for all the partners (duly certified – by a C.A/
Notary).
• A copy of Partnership Deed duly certified by a C. A. / Notary.
(Highlight the clause of Dealing in shares & Securities in the Partnership
Deed)
• Certificate from Registrar of Firms (ROF) duly certified by C. A.
• Annexure `L1’ (Sharing Pattern) on the letterhead of Firm (duly certified
by C. A.).
• All Partners’ Name & Firm Name should be mentioned in C. A.
Reference Letter & Annexure ‘C’.
• All Partners’ Signature (with Stamp) required on Form B, Annexure C,
and Annexure O & L1 and on agreement.

Additional requirements for Corporate are:

• Certified True Copy of PAN Card of all the Directors & Company
required.
• Age proof of all the directors (duly certified – by a C.A/ Notary).
• A copy MOA & AOA/ Form 32 with ROC For any resignation or
appointment (any change in Director’s list/Sharing pattern) should be

Page 48

submitted duly certified by a C.A. Highlight the point where the clause
to deal in capital market is mentioned. (in Memorandum clause, the
clause of dealing in capital market should be mentioned in main clause)
• Certificate of incorporation should be submitted duly certified by a C.A/
Notary.
• Annexure E (On the Applicant’s letterhead – Board resolution signed by
all the directors duly certified by a C.A).
• Annexure `L1’ (Shareholding Pattern) on the letterhead of Company
(duly certified by C. A.).
• Annexure “O” – Certificate from sub‐broker relating to shareholding
pattern (Should on letterhead of the applicant)
• All Directors’ Names & Company Name should be mentioned in C. A.
Reference Letter & Annexure ‘C’.

All Directors’ signature (with Stamp) required on Form B, Annexure C,
and Annexure O & L1 and on Agreement.

Note:

• Franking of the member sub‐broker agreement will be done by the CSO.
• Name (Angel Capital & Debt Market Limited) is spelled correctly in
demand drafts submitted/Kindly mention name of the applicant on
reverse side of demand draft. DD should be valid for six months.
• Kindly fill in details of date in form B as per proof given
• kindly mention status in form B as individual/Sole Proprietor / Partner
/ Director as per constitution
• Kindly mention correct qualification details in Form B as per proof given
(Eg if HSC marksheet is given, mention HSC on Form B).
• Kindly mention applicant’s name on annexure/undertaking where it is
printed as name of the applicant
• Signatures are required on all the pages of the Agreement.
• On Annexure O ‐ Sharing pattern as on date should be same as that on
Annexure L1.
• In marksheet proof submitted for qualification ‐ kindly check whether
passing marksheet is provided (FAIL /EXEMPTION should not be
mentioned)
• In case of Corporates, in Memorandum clause, the clause for dealing in
capital market should be mentioned in main clauses.
• All proof submitted should be duly attested by a C.A or a Notary. It
should consist of their signature, stamp & membership
number/Registration number)
• In case Sub‐broker is registered as a Sub broker in any other any
recognized stock exchange, then a certified copy of the SEBI registration
certificate is to be attached.

Page 49

• All certification by a C.A should consist of his signature, stamp &
membership no.
• All forms to be completely filled in; whichever clause is not applicable,
please put NA

For F&O Application:

New application form for application of Authorised person in Future &
Options Segment of NSEIL (Annexure D) (In Annexure D following
details need to be filled in i.e. Office address should match with address
given in NSE Cash Application. The applicant’s signature should be at
the end of the application)

In addition to above following, Documents required for Individual firms
are:

Annexure III – Details of individual as on date of the application (Kindly
fill in all the documents submitted by applicant along with individual
signature.)

In Case of Sole Proprietorship Firms, following are required:

In addition to the above requirements for Individuals, Proprietary stamp
required on all the documents submitted by the applicant.

These Documents also required for Partnership Firms:

A Copy of Partnership Deed Duly Certified by a C. A. / Notary along
with membership/Notary Registration number.

Certificate from Registrar of Firms (ROF) duly certified by C. A / Notary
along with membership/Notary Registration number.

Certified True Copy of Firm PAN Card required / Notary along with
membership/Notary Registration number.

Annexure II (Sharing Pattern should be signed by all the Partners along
with rubber stamp of that firm & duly certified by C. A / along with
membership number.

Annexure III details of Partners as on (Kindly fill in all the details as
required /duly certified by CA along with stamp and membership
number, along with partnership firm stamp and signature of all the
partners.

Page 50

In addition to the above, following Documents also required for
corporates:

A copy of MOA & AOA/ Form 32 (any change in Director’s list/Sharing
pattern) should be submitted duly certified by a C.A/notary along with
their Membership / Registration number.
Certificate of incorporation should be submitted duly certified by a C.A /
notary along with their Membership /Registration number.

Annexure E (On the Applicant’s letterhead – Board resolution signed by
all the directors along with firm’s stamp duly certified by C. A along
with the firm stamp.

Certified True Copy of Company PAN Card required by a C.A/notary
along with their Membership /Registration number.

Annexure II (Sharing Pattern should be signed by all the Directors along
with rubber stamp & duly certified by C. A / with membership number.

Annexure III details of directors as on (Kindly fill in all the details as
required /duly certified by CA, along with stamp and membership
number, along with partnership firm stamp and signature of all the
partners.

Please refer all the Annexures mentioned above in the Back Office
accordingly. Also the Sub‐broker registration checklist for Exchanges
(MCX & NCDEX) is available in BO, i.e.

Back O ffice –‐‐‐‐‐‐ Utilities ‐‐‐‐‐‐‐‐‐ Research Report (Angel Research) ‐‐
‐ Miscellaneous (Circulars) ‐‐‐ Sub‐broker Registration Folder ‐‐‐ BSE,
NSE, MCX & NCDEX folders.

Page 51

Remisier and Sub‐Broker Registration

Activity Purpose Status Remarks Scores
Sr.
Maintain adequate stock of application forms depending upon past
consumption/queries for given period, and intimate requisition of
1 application forms to CSO well in advance.
2 Documentation:‐
a. Assist Client in filling up the registration form.
Ensure Clients have submitted all required Documentary evidences.
b. (As per Annexure)
c. All the Proofs should be attested by CA/Notary.
d. CA signature should be always with his seal and Membership number.
Bank letter should be signed by the respective Branch Manager and
e. the applicant.
CA Letter should be attested with his seal and his Membership
f. number.
All the minor details has to be filled up (e.g. signature of the applicant
g. and date).
MOU should be properly read by the SB and should be explained on
h. each and every minor detail.
All the check list has to be attached and
i. constitution(individual/partnership/corporate) has to be mentioned.
j. Qualification proof has to be mentioned and proper proof is required.
Ensure relevant Branch Tag (hand written /rubber stamp) is on the
3 application form.
Re‐check Doc to Ensure that application form is complete in all aspects
before dispatching to CSO. In addition also ensure that the mandatory
fields viz: 'Telephone Number', 'E‐mail Address', 'Pin Code', Residence

& Office address, Trade name, Name of the applicant along with the
4 date and 'Witness Details' have been filled up.
5 Follow up on CSO raised issues relating to customer documentation
On receipt of intimation from CSO of discrepancies/deficiencies in SB
or Remiser, obtain necessary documents/details from Client, promptly
a. resolve and forward it to CSO.
Maintain proper record for Objection case in Remiser or Sub‐Broker
Registration. Follow up and clear objections in 5 calendar days for
b. Remiser and in 15 calender days for Sub‐Broker.
6 On receipt of documents assist to understand the MOU & Tag Sheet.
Proper information has to be given to the Remiser/SB about the
a. charges (VSAT and ODIN charges).
b. Brokerage Structure has to be cleared to all.
In case client wants to submit the application to reclaim the ST assist
them to fill up and ensure about the TAX claculation. All the Segment
should be filled up separately. Chalan Copy, Name of the Applicant
c. and signature of the authorized person from Branch is required.
7 Sub‐ broker tags
Encourage Sub‐brokers tagged under the Branch, to deal with the
b. Branch for any issues and not directly with the CSO.
On receipt of intimation that the Sub‐Broker has been registered,
8 Check that SB details are correct and informed accordingly.

Walk‐ins
To give
9 Walk in Client’s (new) Desk/Conf. Room
presentation
s to new
clients

SB Registration Forms

Completely
10 Dispatching Forms & Documents for Sub‐Broker/Remisier registration filled &
to CSO Documents
verified

Page 52

Log to be
maintained
for all printed
stationery,
Sub‐Broker Registration Forms
the
requisition
for the same
should be
placed well
in advance.

Information

Print outs of the formats of Sub‐Broker Registration
11 For In‐house
Information about the Documents to the new clients
clients
Walk in Clients

Dispatch

A proper
Excel sheet
should be
maintained
for the
12 POD’s for the documents Entries of
sent or
dispatched
dcocuments

& POD’s
received.
SB
13 Branch Process Manual/Sub‐Broker Manual Registration
In Back
Office Daily
14 Sub‐Broker/Remiser in Circulars/Websites and CSO Circulars Basis
Welcome Letter/Tag Approval Sheet needs to be sent to all the Sub‐ Happening/
15 Brokers Not
CSO
CSO Assigned Person/E‐Mail Id for the queries to CSO Person/E‐

(sbregistration@angeltrade.com)/E‐Mail Id for the queries to CSO for mail
16 billing related (remisier@angeltrade.com) Confirmation
Separate
and
Relevant
17 Check List for all the segments Check List
CSO/RO
Process Training/ Test/Test Score/Induction/Test/NCFM Certified/Back and Name of
18 Up of the Process the Person
Happening/
19 Scanning of all the proofs/forms Not
20 Chalan Sheet with Service Tax reclaim sheet/Tax Sheet Calculation Aware/Not

Helplines:

Contact Person Designation Location Tel no – Extn

Pushpa Kotian Executive Premier House 40353100 ext 141

Sameer Kadam Executive Premier House 40353100 ext 142

Mr. Sounak Banerjee Manager‐QA PremierHouse 02240358600 – 288

Page 53

CHAPTER – IV
KYC

Page 54

CHAPTER COVERAGE

1. Introduction

2. KYC – First point of contact for customer delight.

3. KYC processes at Angel (CSO)

4. Documents required

5. Important points to be remembered ?

6. Important links used for KYC

7. Checklist of Documents Required for Opening Demat Account

8. Checklist of Documents Required for Opening Trading Account

9. Checklist of Documents Required for Opening Commodities
Account

10. KYC checklist

Page 55

1. Introduction

Know Your Client, popularly known as KYC, is a process mandated by SEBI
which basically relates to carrying out due diligence by the Stock/Commodity
brokers and/or DP participants, while opening up any new account.

Whenever any entity wants to open a new account, various details like name,
address, financial details, bank account details etc. are required to be furnished
and the documentary proof in respect of such details is also required.

2. KYC – First point of contact for customer delight

With the main focus on Quality Assurance at Angel, and in the quest to provide
Service Truly Personalized leading to Customer Delight for all clients and the
investors, this Branch Manual includes brief details of KYC and requirements
of documentation for the same, and is designed to help all our Branches.

It is expected that this content, besides providing preliminary guidelines, would
reduce the objections in the KYC applications at CSO. Thus, it would lead to
administrative convenience and faster service to the clients associated with Angel,
which in turn will result in Customer Delight at from the first point of contact.

3. KYC processes at Angel (CSO):

Receipt of the KYC given to branches: On an average, 750 forms are received every day
by the KYC department. Here the name of client, branch and sub‐broker information is first
entered in the server from branch end and after the approval of CSO checker the same data
would be approved by CSO, so that the branches (at their end) can check that the forms are
received by the KYC department and approval of the inward entry done at CSO level.

Verification of Documents: The proofs submitted are matched with the information
given by the client on the forms. If the information does not match, the registration
form is put in objection.

Allotment of code: A specific and unique client code is selected according to norms
of Angel and is written on the form. Here, the client can also mention any specific
numbers he wants in his code.

Checking of the PAN number: The client code is generated on the server and
again the client information is verified. The PAN number is also checked with
the income‐tax site. If the details match, then the form is forwarded; otherwise it is
put in objection.

Page 56

Back Office Software: The client details are entered in the back office software.

Verification in back office: The back office data entry is again verified and approved
to ensure if everything is correct.

Uploading on server: The client information is uploaded on the server and again an
approval is given only after the information is cross checked on the server. Here the
information can be edited. Once the approval is given, no information can be edited
after that.

Franking: The client’s form is then franked and details are filled in the form and
checked. The franking charges (Rs100) are debited to the client’s account.

Scanning: Scanning and filling of all the documents and forms of the client is
done and then kept in folders, which are arranged serial wise.

Documents required:

Note: Having a pan card is mandatory for all the a/c opening entities.

4.1. Checklist for individual clients – KYC

Permanent Address:
(Note: Proof submitted by client must contain residential portion & the
same should be legible & reflected on the form).

Valid Passport.
Voter ID.
Valid Driving License.
Bank Pass Book (with bank attestation & seal or on a bank letter head).
Ration Card.
Latest (two month) Telephone Bill.
Latest (two month) Electricity Bill.

Note:

Letterhead of Employer

Page 57

Address proof on employer’s letterhead is not a valid address proof.
In case of married women, Marriage Certificate & Old permanent address &
Document in name of Husband (Driving License, Passport copy, previous year’s I.T return).

Correspondence address:
(Note: Only correspondence address is not valid / permanent address should also be there)

All the proofs mentioned in permanent address proofs are valid as correspondence address.
Rent agreement ‐ Notarised Copy only for Correspondence.
Note: The above Proof of Address should be in the name of CLIENT ONLY

Bank proof:

Passbook should be printed with bank logo on it.
If hand written, then bank stamp is required on it or /and cancel cheque with printed
name & account number on it.

Demat proof:
Client should be first holder in Demat a/c.
Client Name, DP id & client id should be printed and visible with DP logo on it.

Important for DP KYC
The DP KYC form should be filled up in CAPITAL letters only.
PAN Card must be compulsorily obtained for all categories of BO Accounts.
The account‐holder name should be same as in the PAN card.

Please ensure that information like Telephone no, Pin code, Occupation, Category,
residential status, income details, date of birth, other broker details, e‐mail address
etc. are properly mentioned.
All the holders should sign across the photograph.
If there is any correction in the form, all holders should sign it.
Ensure all the holders sign in all the relevant places.

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For details which are not relevant to a client, “N.A.” should be mentioned in DP KYC forms.

The witness signature should be there in a) POA agreement b) Client and DP agreement
c) Nomination form. The nominee details part of the form should be duly filled.
The first 2 pages of DP KYC forms should be photocopied and kept in a file for your record.
For HUF clients a) Karta stamp required with signature b) HUF agreement/Deed copy
c) Details of family members/coparceners
For Minor clients a) Birth certificate b) Proof of address and identity of guardian.
For NRI/NRO clients a) foreign address and RBI approval date b) Attested copy of PIS letter.
For Proof of Identity, either of following documents can be furnished a) Passport
b) PAN card with photograph c) Voters ID d) Driving License. Apart from this, branch
can consult the CSO for any other eligible/valid proof
For Proof of Residence, either of following documents can be furnished a) Passport
b) Voters ID c) Driving License d) Bank passbook e) Ration card f) Electricity or
Telephone bill (not more than 2 months old). Apart from this, branch can consult
the CSO for any other eligible/valid proof.
The identity of the person who intends to open a DP a/c needs to be verified in person
and a stamp stating ‘Identity verified in person’ needs to be affixed on the KYC form.
In case this activity is carried out by sub‐brokers / franchisees / business associates,
then an authorization letter needs to be issued to them.
POA (auto paying) agreement is mandatory in all types of account.
4.2. Checklist for individual clients: For opening DP a/c

The DP form should be filled up in CAPITAL letters only and black ink only
Please ensure that information likes Telephone no, Pin code, Occupation, category,
residential status, income details, date of Birth, other bank details, e‐mail address
etc. is properly mentioned.
Ensure all the holders sign in all the relevant places on the DP form with black ink only.
For details which are not relevant to a client, ‘N.A.” should be mentioned in the DP forms.

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The witness name, address, signature should be there in a) POA agreement
b) Client DP agreement c) Nomination form.

The first 2 pages of DP forms should be photocopied and kept in a file for your record.

The account‐holder name should match with all the proofs provided.

4.3. Checklist for HUF client: For KYC and DP a/c opening

Photo copy of HUF PAN Card needed to open trading a/c in HUF status and
a PAN card copy of Karta is mandatory to open a HUF account.

Rubber stamp required wherever signature appears.

For HUF clients, HUF family Declaration is required along with the PAN card of Karta.

HUF status should be mentioned in the Bank & Demat A/C.

POA (auto paying) agreement page should be duly signed by all the co‐parceners.

4.4. Checklist for partnership firms:

Copy of Partnership Deed.

Copy of Pan Card of Partnership Firm & all partners.

Bank Statement of Partnership firm & Dominating Partner (51 % sharing).

Demat Proof of Dominating Partner (Highest 51% Sharing) or joint account of
Partners whose jointly holding should be more than 51%).

Undertaking letter is required if the partner has the lowest percentage
and wants to operate the partnership account e.g. C (in case A–50%, B–30%, C–20%),

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Copy of Residence Proof of all partners along with photograph of all the partners.
(Separate photo page for each segment).
All Signature(s) of the Client must be sealed with the stamp of the Partnership Firm.

4.5. Checklist for proprietor:

Rubber stamp required where ever signature appears. BANK PROOF (Bank proof should
be in the name of the firm).
All other proofs & details same as individuals.

4.6. Checklist for a Limited Company: For opening KYC & DP
a/c

Copy of PAN card of the company.

PAN card copy + residence proof & Details of Promoters / Partners /Key managerial
Personnel of the Company/Firm in specified format.

Bank and Depository Account Details of company.

Copies of the balance sheet for the last 2 financial years (copies of annual balance sheet
to be submitted every year).

Last two years IT returns (if the company is newly formed, then NETWORTH certificate
of the company is required on original letterhead of the C.A. & it should be duly attested
by C.A).

Copy of latest share‐holding pattern including list of all those holding more than 5% in
the share capital of the company, duly certified by the Company Secretary/
Whole time Director/MD (Copy of updated shareholding pattern to be submitted every year).

Certified True Copies of the Memorandum and Articles of Association. If not as per MOA,
form 32 is required. Copy of the Resolution of board of directors' approving participation in
equity / derivatives / debt trading and naming authorized persons for
dealing in securities.
Photographs of Whole time directors / Authorized persons / individual promoters
holding 5% or more, either directly or indirectly, in the shareholding of the company
and of persons authorized to deal in securities.

If registered with any other broker, then the name of broker and concerned Stock exchange
and Client Code Number.

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NOTE:
Attestation by MD/ Company Secretary ‐ In case of corporate account, Specimen Signatures
of Authorized person appearing on Board Resolution as well as Annexure page should be
duly attested by MD/ Company Secretary.

DP Board resolution to contain authority ‐ The new DP Board resolution format to be obtained
from the client in case of corporate account. The old DP board resolution format
will not be valid from now on.
DP A/c:
BOARD RESOLUTION: Required on company letterhead with the same format
mentioned in Demat form.
4.7. Check list for NRIs: For KYC & DP a/c

Photocopy of PAN card copy is required.
Must have separate client codes for NRE A/C and NRO A/C of NRI clients.
For Proof of residence – Passport copy.
Copy of Power of Authority (POA) issued in favor of the person who will act
on behalf of NRI along with proof of identity of POA holder (if applicable).

Demat Account proof.

Local address for communication (if any).

For NRE/NRO clients a) foreign address and RBI approval date b) Compulsory PIS
letter from bank.
Note: All the documents should be self‐attested by the client and stamped, wherever required.
and no NRI account will be opened without obtaining the PIS letter (Issued by the bank)
from the client.
5. Important points to be remembered
TRIPARTITE AGREEMENT ‐grey in colour ‐ at the end of the KYC form, and is to
be fill up by a registered sub broker only, & signed by the client & the sub broker.

Please ensure that information like telephone no, pin code, email address, occupation,

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category, residential status, income details, date of birth, other bank details etc.
is properly mentioned.

Please note: while filling up KYC form for any segment, ensure that the DATE field
(apart from date of birth) is empty.

While sending client registration form to CSO, kindly ensure that all the segments
of client registration form are kept together and are sent with a covering letter with all
the details in it for each client. Ex: branch SB tag, client name, segments & sign of
the KYC person of the branch.

Please do not dispatch any other document not related KYC with client registration
form. Ex: client cheque, documents address for other departments.

For changes in client details in the back office: please provide (last 2 months)
clear, visible proof and it should be in client’s name only, and it should contain
the client’s Branch and SB tag (stamp) including the client code.

It has been noticed that trades take place under the codes, which are not open in
the respective segments. This creates a mismatch in the trade file and the updation
gets delayed and is hampered by such codes.

For instance the mismatch happens due to following reasons:

• Punching error from the dealer’s end.

• Account open in one segment and traded where not opened. Ex: A code
is opened ONLY in BSE Cash but traded in Futures and Options.

• No code exists at Angel but traded and/or the code is of another branch.

Note:

Kindly follow up on an urgent basis so as to avoid any kind of errors regarding mismatch.

General

Stamp ‐ In case of Partnership or Proprietorship accounts, Client should not affix any rubber
stamp of the Firm’s name on DP AOF.

Affidavit ‐ In case of any kind of name mismatches, affidavit would not be accepted. Only
an additional/alternate identity proof can be accepted for minor mismatch such as Pramita
and Prameeta. In case of major mismatch in name such as Mina and Tina, both are two
different names and in such case the document submitted has to be rectified.

Agreement date ‐ Date should not be affixed on any agreement page of AOF. The same
will be stamped at CSO only.

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In person verification ‐ In‐person verification stamp of ABL employee should be affixed
adjacent to the photograph in DP AOF.

6. Important links used for KYC

Back Office ‐ Branch / SB Login – RM link Homepage

6.1.KYC Manual ‐ for Branches / Sub‐Brokers / Channel Partners /
Clients
http://196.1.115.136/newangeltrade/vini/kyc/kyc_index.html
(Exhibit.1, 2 &3)
Exhibit.1

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Exhibit.2

Page 65

Exhibit.3

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6.2. KYC Received – to track the status of the new clients’ KYC registration
forms at CSO. (Exhibit.4)
Exhibit.4

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6.3 KYC Details – to track the status of client registration forms after the
process at CSO. (Exhibit.5)

Exhibit.5

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6.4. Welcome Kit – to track the status of the Welcome Kit of each new

registered client. (Exhibits 6 & 7)

Exhibit.6

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Exhibit.7

To do list for Branches

Maintain adequate stock of blank KYC forms, depending upon past consumption/client
accounts opened for given period, and intimate requisition of blank KYC to CSO well
in advance.

Assist Client in filling up KYC.

Ensure Clients have submitted all required Documentary evidences. (As
per Annexure)

Verify copies of Documents received with their Originals, and put
‘Verified with Original’ along with ‘Identity Verified In‐Person Stamp on copies
For In‐Person Verification.

Ensure relevant Sub‐broker Tag (hand written /rubber stamp) is on KYC.

Ensure that KYC is complete in all aspects before dispatching to CSO. In addition,
also ensure that the non‐mandatory fields viz: ‘Telephone Number’, ‘E‐mail Address’,
‘Pin Code’, and ‘Witness Details’ have been filled up.

Maintain proper record of KYC received from Client and submitted to CSO. Also scan
or file hard copies of the KYC (first two pages only).

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Prepare Covering Letter for KYCs to be submitted to CSO. (As per Annexure)

Courier KYC along with Covering letter to CSO.

File Acknowledgement Copy of Covering letter received from CSO.

On receipt of intimation from CSO of discrepancies/deficiencies in KYC, obtain
necessary documents/details from Client promptly resolve & forward it to CSO.

Maintain proper record for Objection cases from KYCs. Follow up & clear
objections in 7 calendar days.

On receipt of undelivered Welcome Kit from CSO, hand over the same to clients,
and forward correct/complete address of client, as applicable, to the CSO.

Obtain relevant Documentary Proofs from Clients for any changes to be made
in the Client’s account. Forward the details & documents to CSO.

On receipt of Mismatch File from CSO at 12:30, 2:30, and 3:30 pm, immediate action
should be taken and necessary correction should be made on the relevant Terminal. To
ensure this; a Dealer should be present to make the corrections right up to 4:15 pm.

In case client has account in one exchange, but has traded on another exchange,
on receipt of Franked KYC from CSO, get KYC duly filled, and submit the same to
CSO as soon as possible.

Ensure Sub‐brokers have Tag before opening client accounts on behalf of the Sub‐brokers.
Shifting of direct Clients to Sub‐broker later on is not allowed.

Encourage Clients/Sub‐brokers tagged under the Branch, to deal with the Branch
for any KYC related issues and not directly with the CSO.

On receipt of intimation that the Client’s account has been opened, Check that Client
details are correct as entered into the system through ‘Utilities’ option in Back office
and intimate any discrepancies to the CSO.

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To, Date: ________________
Angel Broking
(KYC Department)
G‐1, Akruti Trade Centre,
Road No‐7, MIDC, Andheri (E),
Mumbai – 400 093

Dear Sir,
Subject: KYCs submitted for A/c Opening

With reference to the captioned subject, enclosed herewith are KYCs for the following Clients:

Sr. Client Exchange (9)
No Name BSE NSE MCX NCDEX

Total

Yours faithfully,
For
Signature

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7. Checklist of Documents Required for opening trading A/C

Client Type
Documents Required Firms/
Individual Corporate
(Partner / Director in case of Non Individuals)
I) Identity cum Address Proof
Passport 9 9
Voter's ID 9 9
Driving License 9 9
Documents issued by Statutory or Regulatory Authorities/ Banks /
Financial Institutes/ Affiliated Colleges/ Professional Bodies/
Central and state Government 9 9
II) Identity Proof
Pan Card 9 9
SEBI MAPIN Card 9 9
Photo ID issued by Employer under MAPIN 9 8
III) Address Proof
Ration Card 9 8
Bank Pass Book with address 9 8
Flat Maintenance Bill 9 8
Latest Electricity/Telephone Bills (not more than 2 months old) 9 8
Insurance Policy 9 8
Rent Agreement 9 8
Certificate Issued by Employer under MAPIN 9 8
IV) Additional Documents for Firm/Corporate
Annual reports for last two financial years (copy of annual balance
sheet to be submitted every year) 8 9
Partnership Deed 8 9
Latest share holding pattern including list of all those holdings more
than 5% of share capital of companies certified by Company Secretary /
Director / MD (to be submitted annually) 8 9
Board Resolution 8 9
MOA & AOA/ Partnership Deed 8 9
Photograph of partners/Whole time directors/ Authorized person/
Promoters holding 5% or more in the share capital of the Company 8 9
Bank and Depository Account Details 8 9
If registered with any other broker, then the name of broker and
concerned Stock exchange and Client Code Number. 8 9
Details of Promoters/Partners/Key managerial Personnel of the
Company/Firm in specified format. 8 9
Unique Identification Number (wherever applicable) 8 9
Name, address of the Company/Firm 8 9
Registration number (with ROC, SEBI or any government authority) 8 9
Note A: If client submits any one document listed in list I, the client is not required to submit any
Documents listed in II or III.
Note B: The client must submit all relevant documents checked in list IV according to his beneficiary type.

8. Checklist of documents required for opening commodities A/C

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NCDEX MCX
Beneficiary Type Beneficiary Type
Documents Required
Firms / Firms /
Individual Corporate Individual Corporate
I)Compulsory documents to be enclosed
Passport 8 8 9 8
Pan Card 9 8 9 8
Letter from Banker 9 8 8 8
Demat statement 9 8 8 8
Three photographs 8 8 9 8
Salary Slip 8 8 9 8
Ration Card 8 8 9 8
II) Proofs to be enclosed
MCX‐ any one proof
NCDEX‐ any two proof
(Partner / Director in case of Non Individuals)
Passport 9 9 8 8
Voters Id 9 9 9 9
Driving License 9 9 9 9
Ration Card 9 9 8 8
Income Tax Return 9 9 9 9
III) Additional Enclosures for Firm/ Corporate
(Compulsory documents to be enclosed)
Board Resolution 8 9 8 9
MOA & AOA/ Partnership Deed 8 9 8 9
Annual reports for last three financial years 8 9 8 8
Annual reports for last two financial years 8 8 8 9
Income Tax Returns for last three years 8 9 8 8
Income Tax Returns for last two years 8 8 8 9

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Networth Certificate by Chartered Accountant 8 9 8 8
Valuers Certificate (in case of immovable property) 8 8 8 9

KYC Checklist
Score Grade ‐
Sr. Activity Weightage
0 Remarks
1 NSE & BSE Trading account form Verification 15 0
Ensure Clients have submitted all required Documentary

evidences. (As per Annexure) & form is complete in all
respects (Tele No, Mob No., valid Email ID, Pin code, A/C
a 4
opening cheque, Signature Verification & witness details)
(Link: 196.1.115.150> Risk
Management>KYC>Support>KYC Manual)
Verify copies of Documents received against Originals, and

the 'Verified with Original' stamp is affixed on required proofs 2
b by an employee….Ref - KYC Manual
Ensure relevant Branch/Sub-broker Tag (hand written
2
c /rubber stamp) is on KYC form
In-person Verification by an Angel employee along with
employee code, name and signature (ABL - BSE forms & 5
d ACDL - NSE forms)…….Ref - KYC Manual
Maintain adequate stock of blank KYC depending upon past
consumption/client accounts opened for given period, and 2
e intimate requisition of blank KYC to CSO well in advance.
2 Necessary Activities 15
Ensure the inward entry is done (with the relevant columns
ticked) before dispatching the forms along with the
documents to CSO 2
(Link: 196.1.115.150> Risk Management>KYC>Inward
Entry>KYC Inward)
a
Account modification needs to be done with the relevant
account modification letter duly signed by the client (as per 2
b the circular) Ref - KYC Manual
Relevant formats are being attached along with the forms
(e.g NCDEX Declaration cum confirmation letter, name 3
c confirmation letter etc.) Ref - KYC Manual
Data entry is being done in BO and the data entry number

should be written on the forms
(Link: 196.1.115.150 > Angel broking 3
ltd.>Utilities>Branch_Client_Master_Entry>Client Master
Module (Test)
d
Mandatory for NRI client - PIS and POA in demat account (no
5
e intraday, commodities and FNO transaction as of now)
3 Demat account opening form Verification 15 0

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BO account is opened on the basis of an account opening
form duly filled in all respect, which is verified by the
collection centre / branch executive. Critical areas
5
mentioned below. (Refer entire checklist for DP KYC) The
details which are not relevant to a client, N.A." should be
mentioned in DP KYC forms...Ref - KYC Manual
a
An authorized official (ABL employee sign) of the DP at
collection centre shall put the 'verified with original' stamp
on the DP KYC form after verification with the original 2
document & sign the same along with the relevant employee
code….Ref - KYC Manual
b
PAN Card must be compulsorily obtained for all categories of
BO Accounts. The account holder name should be same as
in PAN card. The PAN number and Pan Card holder name is
1
verified with the IT site and then only further process of
account opening takes place in the back office system...Ref -
KYC Manual
c
In-person verification done for all the accounts opened in the
2
d branch by an Angel ABL employee
e Account Opening Cheque 5
4 CSO feed Back 5 0
On receipt of intimation from CSO of
discrepancies/deficiencies in KYC, obtain necessary
1
documents/details from Client, promptly resolve and forward
a it to CSO.
Grade obtained in Daily/Monthly MIS of objection report and
the objection percentage 3
b (from kyc.cso@angeltrade.com)
KYC Forms & Printing Stationary & MIS to be maintained for
1
c client and blank forms
5 Follow Up 10 0
Maintain proper record for Objection cases from KYC. Follow
up and clear objections in 8 calendar days. On receipt of
a Mismatch File from CSO at 12:30, 2:30, and 3:30 pm, 5
immediate action should be taken and necessary correction
should be made on the relevant segment
In case client has account in one exchange, but has traded

on another exchange, on receipt of Franked KYC from CSO,
b get KYC form duly filled, and submit the same to CSO as 5
soon as possible. To ensure this, KYC executive should do
the needful to do the correction
6 Sub- broker and Client tags 2 0

Ensure Sub-brokers have Tag before opening client accounts
a on behalf of the Sub-brokers. Shifting of direct Clients to 1
Sub-broker later on is not allowed
Encourage Clients/Sub-brokers tagged under the Branch, to
b deal with the Branch for any KYC related issues and not 1
directly with the CSO
7 Important Links to be checked 5 0

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Important Links to be checked on daily basis -
1) ECN - (Link: 196.1.115.150> ECN>Reports>Contract
Note)
2) DP charges (AMC) - (Link: 196.1.115.150 >D.P.>Reports
> Ledger/Bill Info)
a 3) Account Opening Details - (Link: 196.1.115.150 > KYC > 5 0
Status Report > A/C opening Details)
4) KYC received - (Link: 196.1.115.150 > KYC > Status
Report > KYC received)
5) Scan Images - (Link: 196.1.115.150 > KYC > Client Info >
Scan Images)
8 Direct clients 5 0
Assist to understand the KYC process/ required
a documentation for direct(walk in Client’s -new) in a 2
Desk/Conf. Room
b ECN Promotion and Updation 3 0
9 MIS and Register maintenance 5
MIS of form received from clients and dispatched to CSO
a along with blank form details to be maintained & relevant 5
registers maintained at the branch
10 Others 23 0
KYC Manual (KYC & Marketing Executives)...Ref - KYC
a 2
Manual
b Training & Online test scores 2
Welcome kit link needs to be checked (After the client code
generation) 2
c (Link: 196.1.115.150 > KYC > Status Report > Welcome Kit)
Websites and Circulars/CSO Assigned Person/E-Mail Id for 2
d queries (kyc.cso@angeltrade.com and nri@angeltrade.com)
NCFM Certification as per HR policy 1
e Relevant Stamps as per the compliance requirement 5
KYC training provided to SB's/Usage of back office utilities
5
f and reports
g Commodities confirmation Letter & Brokerage Calculation 3
h Understanding of the KYC checklist 1
TOTAL 100 0
Grades Scores
A+ 90 to 100
A 80 to 89
B+ 70 to 79
B 60 to 69
C 51 < 59
D <50

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Helplines
Contact Person Designation Location Tel no ‐ Ext

Ms. Pramita Poojary Sr. Manager V Mall (022) 3083 7400 ‐ 488
Mr. Deepak Redekar Manager ‐ KYC V Mall (022) 3083 7400 ‐ 423
Mr. Subodh Salvi Asst. Manager ‐ KYC V Mall (022) 3083 7400 ‐ 444
Mr. Sounak Banerjee Manager – QA Premier (022) 40358600 ‐ 288

Page 78

CHAPTER – V
Dealing

Page 79

CHAPTER COVERAGE
1. Introduction

2. Risk & Dealing

3. Dealer: Pre‐Market Activity

4. Dealer: Market Activity

5. Dealer: Post Market Activity

6. Other activities

7. Dealers Call Evaluation Process

8. Basics of Stock Market

9. Securities :‐ (a) Regulator
(b) Participants

10. Secondary Market :‐ (a) Stock Exchange
(b) Stock Trading
11.Products in the Secondary Markets

12.Products and Services we offer at Angel

13.Derivatives

14. Miscellaneous :‐ (a) Corporate Actions
(b) Index
(c) Clearing & Settlement
and Redressal
(d) Auction Procedure

15.Dealing BPS Checklist

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Introduction
) The scenario of dealing has changed in recent times. Earlier it was mere the
execution of trades, but recent changes mean not just execution but also advising
the clients

) At Angel, there are two basic software for dealing :
i) ODIN – Open Dealer Integrated Network
ii) NEAT ‐ National Exchange for Automated Trading
2. Risk & Dealing
As all are aware that risk and dealing go hand in hand because equity as an
Asset class have the highest risk reward ratio so identifying, monitoring and
Keeping control over day to day dealing activities acquires more significance.

) Branch to continuously monitor the trading account of the client and ascertain risk,
and give periodical follow‐up calls for the recovery of dues (including margins, M to
M, VAR etc)

) While allowing positions/exposure, the deposit, net worth etc must be kept in mind

) Orders for trade should be accepted from clients or authorized persons only.
Requisite authority letter for this has to be obtained, in advance

) For illiquid options, dealers and sub brokers to take care and not entertain
unrealistic prices

) Before executing any trade, client positions/margins etc need to be checked

) Caution to be exercised by dealers for any order for illiquid scrip

) Branch should avoid any unfair trade practice as defined in Unfair trade practices
regulations

) Upon execution of trades, confirmation to be given to the client immediately after
market hours. The telephonic‐conversations relating to trade confirmations should
be recorded and preserved carefully for future reference

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) Any request for code‐change should be critically examined. To be monitored by
branch heads personally. In BSE, the erroneous client codes can be changed at the
BOLT itself in the post‐closing session. In NSE CASH (whether ODIN users OR NEAT
users Any changes have to be made by informing in the back office as changes are
NOT ALLOWED at the terminal end. But in NSE FO (ONLY ODIN TERMINAL users) the
changes have to be done only by coordinating with CSO team. NEAT TERMINAL users
can change the codes from their end respectively informing CSO regarding the same.

3. Dealer: Pre‐Market Activity
) Reporting to branch at 9.00 A.M

) Punctuality about report time has to be maintained at all times

) All dealers has to be present in morning meet along with risk management person
available at branch who will inform the dealers beforehand about the clients who are
in pure risk or projected risk on a daily basis compulsorily so that risk is controlled
and kept under check by continuous monitoring and morning meet has to happen
between 9.15 A.M to 9.30 A.M on a daily basis on all trading days

) Downloading of NSE/F&O files from common site (http:// 196.1.115.1/common see
Exhibit :1) in C drive of the PC

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Exhibit: 1 Downloading files from common site for NSE Cash & F&O
) Delete the old files of previous day from C drive or overwrite them with the new
downloaded files and login to the systems by 9.30 A.M using User Id and password

) Market watch will appear as shown in Exhibit :2

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Exhibit: 2 Market watch of NSE Cash & F&O

Page 84

) Similarly downloading of BSE files from common site for ODIN login (http://
196.1.115.1/common/ODIN/Odin Ver 7 see Exhibit :3) in
C:/ODINNSEBSEMCXNCDEX/Client/Masters folder of the PC

Exhibit: 3 Downloading files from common site for BSE ODIN
) ODIN is the only system which is developed by Financial technologies in which all the
four segments NSE Cash/F&O BSE Cash and Commodities can be traded. The
masters7ver.zip file has to be downloaded daily and extracted in Masters folder for
the same to be done

) Overwrite the old files of previous day from Masters folder with the new
downloaded files and login to the systems by 9.30 A.M using User Id and password

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Exhibit: 4 Market watch of ODIN
) Positional calls, Long term calls as advised by research team are to be informed to
the client by any mode of communication (e‐mail, messenger, phone, etc) between
9.35 A.M to 9.50 A.M proactively

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4. Dealer: Market Activity
) Dealing (9.55 A.M TO 3.30 P.M)

) Dealers should ideally have an excel sheet where they should a priority to which
client has the potential of giving business on a regular basis and they should promote
the angel positional calls to them during trading hours proactively

) Phone etiquette skills has to be maintained by mentioning dealer name whenever
any dealer picks up the phone (Ex :Vijay, Priti, etc) and Scrip, price, quantity and
trading code has to confirmed by the dealer before execution of any trade

) Energy level during market hours has to be very good at all times irrespective of any
market condition or other factors

) Dealers should have good hold of risk management practices and they should ideally
keep track of their priority and day trading clients debit/credit position on a daily
basis for they are the biggest revenue generators for us and they should be provided
with the best possible service by us

) Cordial relation has to be maintained with day traders as well as clients who are
trading on the phone at all times

) Politeness, salutation, greetings over phone to the client will add extra flavor during
trading hours and client will feel delighted irrespective of market conditions

) At no point should a dealer lose one’s cool during market hours and should have a
through professional approach over handling clients

) Trade confirmation during trading hours is essential and has to be given at all times
especially for pending limit orders buy/sell compulsorily

) Dealers will compulsorily confirm trade confirmations for the day to each and every
client who has executed any trade for the day on any terminal on a recorded line

) Dealers should ideally be reading business newspapers on a daily basis and going
through market news which happened during the day at the end of the day to keep
themselves updated in case of any customer queries

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) Dealers should have good hold over settlement and NSE/BSE settlement number for
the week should be displayed in the branch at the beginning of the week itself by
printout or written on whiteboard distinctly and clearly

) Dealers should be always update on Auction details ,Ex‐Rights record date, Dividend
record date ,bonus record date etc basically corporate actions of existing companies
for quick and promt reply to customer queries

) Dealers should always keep oneself updated about other products like mutual funds,
personal loans, insurance etc and promote the same to prospective clients for cross
selling of different products

) Dealers should keep updating themselves about new market tools like Falcon and
utilize the services of the same during market hours to service the client in the best
possible way

) The use of CRMS software should be utilized by all dealers and it should be used
more proactively to show the desired results

) If any dealer is not having NCFM certification in any particular segment he/she
should clear the exam at the earliest for self improvement as well as better
understanding of market

) A dealer who is dealing into equities must at least clear NCFM Cash and F&O module
and BSE Cash module and subsequently get himself NCFM certified in Commodities
segment as well

6. Other activities
) Contract notes are to be issued to the client within 24 hours of the trade

) Collection of cheques segment wise (verifying if third party, chq bouncing cases) is a
continuous process and should be given due importance specially for clients who are
trading on a continuous basis and a procedure of receiving the cheque on a T+2
should be maintained for the same

) Squaring‐off process, where collections are not coming, must be adhered to and
where clients are maintaining a running account, it should reach zero level
periodically and proper monitoring is required for the same

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) Payout of cheques are to be done after checking clients risk and position and
similarly after cheque collection the securities are required to be delivered within 24
hours after the same is received from the exchange to the clients beneficiary
account

7. Dealers Call Evaluation Process
) Main Objective – To standardize dealer services in all branches

) Improvement Areas – (i) Process knowledge of dealers
(ii) Communication skills
(iii) Clarity and accuracy in communication
) Goal statement – To maximize the accuracy of trades executed via
Dealer terminals and providing client best trade
Services
) Project benefits – (i) Prompt dealing service
(ii) Standardized service across all branches
(iii) Timely process updates via periodic trainings to
Streamline gaps identified
(iv) Reduction in complaints due to 100% call
Recording at Dealer’s end
(v) Identifying process loop holes & effective
Feedback mechanism
(vi) Attain customer delight

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8. Basics of Stock Market
What is meant by a Stock Exchange?
The Securities Contract (Regulation) Act, 1956 [SCRA] defines ‘Stock Exchange’ as any body of
individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or
controlling the business of buying, selling or dealing in securities. Stock exchange could be a
regional stock exchange whose area of operation/jurisdiction is specified at the time of its
recognition or national exchanges, which are permitted to have nationwide trading since
inception. NSE was incorporated as a national stock exchange.
What is an ‘Equity’/Share?
Total equity capital of a company is divided into equal units of small denominations, each called a
share. For example, in a company the total equity capital of Rs. 2,00,00,000 is divided into
20,00,000 units of Rs. 10 each. Each such unit of Rs. 10 is called a Share. Thus, the company then
is said to have 20,00,000 equity shares of Rs. 10 each. The holders of such shares are members of
the company and have voting rights.
What is a ‘Debt Instrument’?
Debt instrument represents a contract whereby one party lends money to another on pre‐
determined terms with regards to rate and periodicity of interest, repayment of principal amount
by the borrower to the lender. In the Indian securities markets, the term ‘bond’ is used for debt
instruments issued by the Central and State governments and public sector organizations and the
term ‘debenture’ is used for instruments issued by private corporate sector.
What is a Derivative?
Derivative is a product whose value is derived from the value of one or more basic variables,
called underlying. The underlying asset can be equity, index, foreign exchange (forex), commodity
or any other asset. Derivative products initially emerged as hedging devices against fluctuations
in commodity prices and commodity‐linked derivatives remained the sole form of such products
for almost three hundred years. The financial derivatives came into spotlight in post‐1970 period
due to growing instability in the financial markets. However, since their emergence, these
products have become very popular and by 1990s, they accounted for about two thirds of total
transactions in derivative products.
What is a Mutual Fund?
A Mutual Fund is a body corporate registered with SEBI (Securities Exchange Board of India) that
pools money from individuals/corporate investors and invests the same in a variety of different
financial instruments or securities such as equity shares, Government securities, Bonds,
debentures etc. Mutual funds can thus be considered as financial intermediaries in the
investment business that collect funds from the public and invest on behalf of the investors.
Mutual funds issue units to the investors. The appreciation of the portfolio or securities in which
the mutual fund has invested the money leads to an appreciation in the value of the units held by
investors. The investment objectives outlined by a Mutual Fund in its prospectus are binding on
the Mutual Fund scheme.

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The investment objectives specify the class of securities a Mutual Fund can invest in. Mutual
Funds invest in various asset classes like equity, bonds, debentures, commercial paper and
government securities. The schemes offered by mutual funds vary from fund to fund. Some are
pure equity schemes; others are a mix of equity and bonds. Investors are also given the option of
getting dividends, which are declared periodically by the mutual fund, or to participate only in
the capital appreciation of the scheme.
What is an Index?
An Index shows how a specified portfolio of share prices is moving in order to give an indication
of market trends. It is a basket of securities and the average price movement of the basket of
securities indicates the index movement, whether upwards or downwards.
What is a Depository?
A depository is like a bank wherein the deposits are securities (viz. shares, debentures, bonds,
government securities, units etc.) in electronic form. There are two main Depositories in India
namely Central Depository Services Limited (CDSL) & National Securities Depository Limited
(NSDL). Angel Broking Ltd. Is a Depository Participant registered with CDSL.
What is Dematerialization?
Dematerialization is the process by which physical certificates of an investor are converted to an
equivalent number of securities in electronic form and credited to the investor’s account with his
Depository Participant (DP).
What are the segments of Securities Market?
The securities market has two interdependent segments: the primary (new issues) market and
the secondary market. The primary market provides the channel for sale of new securities while
the secondary market deals in securities previously issued.
9. Securities
What is meant by ‘Securities’?
The definition of ‘Securities’ as per the Securities Contracts Regulation Act (SCRA), 1956, includes
instruments such as shares, bonds, scrips, stocks or other marketable securities of similar nature
in or of any incorporate company or body corporate, government securities, derivatives of
securities, units of collective investment scheme, interest and rights in securities, security receipt
or any other instruments so declared by the Central Government.
What is the function of Securities Market?
Securities Markets is a place where buyers and sellers of securities can enter into transactions to
purchase and sell shares, bonds, debentures etc. Further, it performs an important role of
enabling corporates, entrepreneurs to raise resources for their companies and business ventures
through public issues.

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Transfer of resources from those having idle resources (investors) to others who have a need for
them (corporates) is most efficiently achieved through the securities market. Stated formally,
securities markets provide channels for reallocation of savings to investments and
entrepreneurship. Savings are linked to investments by a variety of intermediaries, through a
range of financial products, called ‘Securities’.
Which are the securities one can invest in?
) Shares
) Government Securities
) Derivative products
) Units of Mutual Funds etc., are some of the securities investors in the securities
market can invest in.

9.1 Regulator
Why does Securities Market need Regulators?
The absence of conditions of perfect competition in the securities market makes the role of the
Regulator extremely important. The regulator ensures that the market participants behave in a
desired manner so that securities market continues to be a major source of finance for corporate
and government and the interest of investors are protected.
Who regulates the Securities Market?
The responsibility for regulating the securities market is shared by Department of Economic
Affairs (DEA), Department of Company Affairs (DCA), Reserve Bank of India (RBI) and Securities
and Exchange Board of India (SEBI).
What is SEBI and what is its role?
The Securities and Exchange Board of India (SEBI) is the regulatory authority in India established
under Section 3 of SEBI Act, 1992. SEBI Act, 1992 provides for establishment of Securities and
Exchange Board of India (SEBI) with statutory powers for (a) protecting the interests of investors
in securities (b) promoting the development of the securities market and (c) regulating the
securities market. Its regulatory jurisdiction extends over corporate in the issuance of capital and
transfer of securities, in addition to all intermediaries and persons associated with securities
market. SEBI has been obligated to perform the aforesaid functions by such measures as it thinks
fit. In particular, it has powers for:
) Regulating the business in stock exchanges and any other securities markets
) Registering and regulating the working of stock brokers, sub–brokers etc.
) Promoting and regulating self‐regulatory organizations
) Prohibiting fraudulent and unfair trade practices
) Calling for information from, undertaking inspection, conducting inquiries and audits
of the stock exchanges, intermediaries, self –regulatory organizations, mutual funds
and other persons associated with the securities market.
9.2 Participants

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Who are the participants in the Securities Market?
The securities market essentially has three categories of participants, namely, the issuers of securities,
investors in securities and the intermediaries, such as merchant bankers, brokers etc. While the corporates
and government raise resources from the securities market to meet their
obligations, it is households that invest their savings in the securities market.
Participants in
Securities
Market
Issuers of Investors in Intermediaries

Securities Securities
Limited Retail Institutions Main Broker

Companies
e.g. Angel
Listed Individuals / Sub-Broker

HUFs /
Partnerships

To be Listed Corporates Remisier

after Initial
Public Offering
Is it necessary to transact through an intermediary?
Intermediaries have primarily set up to cater to the large investor base. It is advisable to conduct
transactions through an intermediary. For example an investor needs to transact through a
trading member of a stock exchange if an investor intend to buy or sell any security on stock
exchanges. An investor need to maintain an account with a depository if an investor intend to
hold securities in demat form. An investor need to deposit money with a banker to an issue if an
investor are subscribing to public issues. An investor gets guidance if an investor are transacting
through an intermediary. Chose a SEBI registered intermediary, as he is accountable for its
activities. The list of registered intermediaries is available with exchanges, industry associations
etc.
Who is a Main Broker?
A main broker is an intermediary of the Stock Exchange. A main broker is required to hold a
registration certificate issued by SEBI. A broker's registration number begins with the letters ‘INB’
What is a Branch?

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A Franchisee is a business unit which operates its business under the name of the main broker
They are on a profit sharing basis with us. At Angel, Franchisees are also referred to as Business
Partners.
What is a Franchisee Branch?
A Franchisee is a business unit which operates its business under the name of the main broker.
Sub‐broker is a sub‐intermediary of the Main Broker. He too is required to hold a registration
certificate issued by SEBI. A sub‐broker's registration number begins with the letters ‘INS’. At
Angel he is also referred to as a Business Associate or a Channel Partner.
Who is a Sub‐Broker / Remisier?
A sub‐broker is a sub‐intermediary of the Main Broker. He too is required to hold a registration
certificate issued by SEBI. A sub‐broker's registration number begins with the letters ‘INS’. They
are on a revenue sharing basis with us. At Angel they are also referred to as a Business Associates
or a Channel Partner.
What is the difference between a Sub‐broker & a Remisier?
A Sub‐Broker is one who can be allotted a terminal(s) in his name, whereas a remisier cannot be
allotted a terminal and has to operate from our Branches / Franchisees. The revenue sharing
percentage is lesser for a remisier as compared to a Sub‐broker.
What is our organization structure?
Angel Broking is a main Broker having several own Branches / Franchisee Branches under its umbrella.
Angel Clients may be operating directly from the Branches / Franchisee Branches or may be attached to
sub‐intermediaries like Sub‐Brokers / Remisiers. The Head Office of Angel Broking, located at Mumbai is
known as the “Central Support Office (CSO)”

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10. SECONDARY MARKET
Introduction
What is meant by Secondary market?
Secondary market refers to a market where securities are traded after being initially offered to
the public in the primary market and/or listed on the Stock Exchange. Majority of the trading is
done in the secondary market. Secondary market comprises of equity markets and the debt
markets.
What is the role of the Secondary Market?
For the general investor, the secondary market provides an efficient platform for trading of his
securities. For the management of the company, Secondary equity markets serve as a monitoring
and control conduit—by facilitating value‐enhancing control activities, enabling implementation
of incentive‐based management contracts, and aggregating information (via price discovery) that
guides management decisions.
What is the difference between the Primary Market and the Secondary Market?
In the primary market, securities are offered to public for subscription for the purpose of raising
capital or fund. Secondary market is an equity trading venue in which already existing/pre‐issued
securities are traded among investors. Secondary market could be either auction or dealer
market. While stock exchange is the part of an auction market, Over‐the‐Counter (OTC) is a part
of the dealer market.
10.1 Stock Exchange
What is the role of a Stock Exchange in buying and selling shares?
The stock exchanges in India, under the overall supervision of the regulatory authority, the
Securities and Exchange Board of India (SEBI), provide a trading platform, where buyers and
sellers can meet to transact in securities. The trading platform provided by NSE is an electronic
one and there is no need for buyers and sellers to meet at a physical location to trade. They can
trade through the computerized trading screens available with the NSE trading members or the
internet based trading facility provided by the trading members of NSE.
What is Demutualization of stock exchanges?
Demutualization refers to the legal structure of an exchange whereby the ownership, the
management and the trading rights at the exchange are segregated from one another.
How is a demutualised exchange different from a mutual exchange?
In a mutual exchange, the three functions of ownership, management and trading are
concentrated into a single Group. Here, the broker members of the exchange are both the
owners and the traders on the exchange and they further manage the exchange as well. This at
times can lead to conflicts of interest in decision making.

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A demutualised exchange, on the other hand, has all these three functions clearly segregated, i.e.
the ownership, management and trading are in separate hands.
Currently are there any demutualised stock exchanges in India?
Currently, two stock exchanges in India, the National Stock Exchange (NSE) and Over the Counter
Exchange of India (OTCEI) are demutualised.
Angel is a member of which stock exchanges?
Angel is a member of The Stock Exchange, Mumbai (BSE), and National Stock Exchange (NSE) for
the Equity & Derivatives Segment. Angel is also a member of the NSE’s Commodity Exchange
(NCDEX) & Multi Commodity Exchange.
Memberships
On
Exchanges
BSE NSE NCDEX MCX

Angel Broking Ltd. Angel Capital & Debt Angel Commodities Angel Commodities

Market Broking (P) Ltd. Broking (P) Ltd.

10.2 Stock Trading
What is Screen Based Trading?
The trading on stock exchanges in India used to take place through open outcry without use of
information technology for immediate matching or recording of trades. This was time consuming
and inefficient. This imposed
limits on trading volumes and efficiency. In order to provide efficiency, liquidity and
transparency, NSE introduced a nationwide, on‐line, fully automated screen based trading system
(SBTS) where a member can punch into the computer the quantities of a security and the price at
which he would like to transact, and the transaction is executed as soon as a matching sale or buy
order from a counter party is found.
What is BOLT?
BSE’s On‐Line Trading (BOLT) is a software which is given by BSE to the members of the BSE
exchange. Bolt software is developed by CMC. The software gets connected with BSE through
various connectivity like Lease line V‐SAT and ISDN (Back –up line).

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Hot key functions in BOLT :
Bolt
F1 – login
F2 – Market Watch(touch line)
F3 – order entry
F4 – pending order
What is NEAT?
NSE is the first exchange in the world to use satellite communication technology for trading. Its
trading system, called National Exchange for Automated Trading (NEAT), is a state of‐the‐art
client server based application. At the server end all trading information is stored in an in
memory database to achieve minimum response time and maximum system availability for users.
It has uptime record of 99.7%. For all trades entered into NEAT system, there is uniform response
time of less than one second.
Hot Key Functions in NEAT :
F1 – Buy
F2 – Sell
F3 – Pending
F6 ‐ Best Five
F8 ‐ Trades
What is ODIN?
Open Dealer Integrated Network (ODIN) is a product from financial technologies. It is a Computer
To Computer Link (CTCL) network of terminal. It is an advanced network of linking multiple
terminal to one master terminal through private network provided to branches, sub‐broker etc.
Hot key functions in ODIN :
F1 – Buy
F2 – Sell
F3 – Pending
F4 – Market watch
F5 – Best Five
F8 – Trades
How to place orders with the broker?

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An investor may go to the broker’s office or place an order on the phone/internet or as defined in
the Model Agreement, which every client needs to enter into with his or her broker.
How does an investor get access to internet based trading facility?
There are many brokers of the NSE who provide internet based trading facility to their clients.
Internet based trading enables an investor to buy/sell securities through internet which can be
accessed from a computer at the investor’s residence or anywhere else where the client can
access the internet. Investors need to get in touch with an NSE broker providing this service to
avail of internet based trading facility.
What is a Contract Note?
Contract Note is a confirmation of trades done on a particular day on behalf of the client by a

trading member. It imposes a legally enforceable relationship between the client and the trading
member with respect to purchase/sale and settlement of trades. It also helps to settle
disputes/claims between the investor and the trading member. It is a prerequisite for filing a
complaint or arbitration proceeding against the trading member in case of a dispute. A valid
contract note should be in the prescribed form, contain the details of trades, stamped with
requisite value and duly signed by the authorized signatory. Contract notes are kept in duplicate,
the trading member and the client should keep one copy each. After verifying the details
contained therein, the client keeps one copy and returns the second copy to the trading member
duly acknowledged by him.
What details are required to be mentioned on the contract note issued by the stock broker?
A broker has to issue a contract note to clients for all transactions in the form specified by the
stock exchange. The contract note inter‐alia should have following:
) Name, address and SEBI Registration number of the Member broker.
) Name of partner/proprietor/Authorized Signatory.
) Dealing Office Address/Tel. No./Fax no., Code number of the member given by the
Exchange.
) Contract number, date of issue of contract note, settlement number and time period
for settlement.
) Constituent (Client) name/Code Number.
) Order number and order time corresponding to the trades.
) Trade number and Trade time.
) Quantity and kind of Security bought/sold by the client.
) Brokerage and Purchase/Sale rate.
) Service tax rates, Securities Transaction Tax and any other charges levied by the
broker.
) Appropriate stamps have to be affixed on the contract note or it is mentioned that
the consolidated stamp duty is paid.
) Signature of the Stock broker/Authorized Signatory.

What is the maximum brokerage that a broker can charge?
The maximum brokerage that can be charged by a broker from his clients as commission cannot
be more than 2.5% of the value mentioned in the respective purchase or sale note.

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Why should one trade on a recognized stock exchange only for buying/selling shares?
An investor does not get any protection if he trades outside a stock exchange. Trading at the
exchange offers investors the best prices prevailing at the time in the market, lack of any
counter‐party risk which is assumed by the clearing corporation, access to investor grievance and
redressal mechanism of stock exchanges, protection up to a prescribed limit, from the Investor
Protection Fund etc.
11. Products in the Secondary Markets
What are the products dealt in the Secondary Markets?
Following are the main financial products/instruments dealt in the Secondary market which may
be divided broadly into Shares and Bonds:
Shares:
Equity Shares : An equity share, commonly referred to as ordinary share, represents the form of
fractional ownership in a business venture.
Rights Issue/ Rights Shares : The issue of new securities to existing shareholders at a ratio to
those already held, at a price. For e.g. a 2:3 rights issue at Rs. 125, would entitle a shareholder to
receive 2 shares for every 3 shares held at a price of Rs. 125 per share.
Bonus Shares : Shares issued by the companies to their shareholders free of cost based on the
number of shares the shareholder owns.
Preference shares : Owners of these kinds of shares are entitled to a fixed dividend or dividend
calculated at a fixed rate to be paid regularly before dividend can be paid in respect of equity
share. They also enjoy priority over the equity shareholders in payment of surplus. But in the
event of liquidation, their claims rank below the claims of the company’s creditors,
bondholders/debenture holders.
Cumulative Preference Shares: A type of preference shares on which dividend accumulates if
remained unpaid. All arrears of preference dividend have to be paid out before paying dividend
on equity shares.
Cumulative Convertible Preference Shares: A type of preference shares where the dividend
payable on the same accumulates, if not paid. After a specified date, these shares will be
converted into equity capital of the company.
Bond: Bond is a negotiable certificate evidencing indebtedness. It is normally unsecured. A debt
security is generally issued by a company, municipality or government agency. A bond investor
lends money to the issuer and in exchange, the issuer promises to repay the loan amount on a
specified maturity date. The issuer usually pays the bond holder periodic interest payments over
the life of the loan. The various types of Bonds are as follows:
Zero Coupon Bond: Bond issued at a discount and repaid at a face value. No periodic interest is
paid. The difference between the issue price and redemption price represents the return to the
holder. The buyer of these bonds receives only one payment, at the maturity of the bond.

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Convertible Bond: A bond giving the investor the option to convert the bond into equity at a fixed
conversion price. Treasury Bills: Short‐term (up to one year) bearer discount security issued by
government as a means of financing their cash requirements.
12. Products and Services we offer at Angel
Equity Investment
Why should one invest in equities in particular?
When an investor buys a share of a company an investor becomes a shareholder in that
company. Shares are also known as Equities. Equities have the potential to increase in value over
time. It also provides an investor portfolio with the growth necessary to reach an investor long
term investment goals. Research studies have proved that the equities have outperformed most
other forms of investments in the long term. This may be illustrated with the help of following
examples:
a) Over a 15 year period between 1990 to 2005, Nifty has given an annualized return of 17%.
b) Mr. Raju invests in Nifty on January 1, 2000 (index value 1592.90). The Nifty value as of end
December 2005 was 2836.55. Holding this investment over this period Jan 2000 to Dec 2005 he
gets a return of 78.07%. Investment in shares of ONGC Ltd for the same period gave a return of
465.86%, SBI 301.17% and Reliance 281.42%.
Therefore,
) Equities are considered the most challenging and the rewarding, when compared to
other investment options.
) Research studies have proved that investments in some shares with a longer tenure
of investment have yielded far superior returns than any other investment.

However, this does not mean all equity investments would guarantee similar high returns.
Equities are high risk investments. One needs to study them carefully before investing.
What has been the average return on Equities in India?
Since 1990 till date, Indian stock market has returned about 17% to investors on an average in
terms of increase in share prices or capital appreciation annually. Besides that on average stocks
have paid 1.5% dividend annually. Dividend is a percentage of the face value of a share that a
company returns to its shareholders from its annual profits. Compared to most other forms of
investments, investing in equity shares offers the highest rate of return, if invested over a longer
duration.
Which are the factors that influence the price of a stock?
Broadly there are two factors: (1) stock specific and (2) market specific. The stock‐specific factor
is related to people’s expectations about the company, its future earnings capacity, financial
health and management, level of technology and marketing skills. The market specific factor is
influenced by the investor’s sentiment towards the stock market as a whole. This factor depends
on the environment rather than the performance of any particular company. Events favourable
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100
to an economy, political or regulatory environment like high economic growth, friendly budget,
stable government etc. can fuel euphoria in the investors, resulting in a boom in the market. On
the other hand, unfavourable events like war, economic crisis, communal riots, minority
government etc. depress the market irrespective of certain companies performing well. However,
the effect of market‐specific factor is generally short‐term. Despite ups and downs, price of a
stock in the long run gets stabilized based on the stock specific factors. Therefore, a prudent
advice to all investors is to analyze and invest and not speculate in shares.
What is meant by the terms Growth Stock / Value Stock?
Growth Stocks:
In the investment world we come across terms such as Growth stocks, Value stocks etc.
Companies whose potential for growth in sales and earnings are excellent, are growing faster
than other companies in the market or other stocks in the same industry are called the Growth
Stocks. These companies usually pay little or no dividends and instead prefer to reinvest their
profits in their business for further expansions.
Value Stocks:
The task here is to look for stocks that have been overlooked by other investors and which may
have a ‘hidden value’. These companies may have been beaten down in price because of some
bad event, or may be in an industry that's not fancied by most investors. However, even a
company that has seen its stock price decline still has assets to its name ‐ buildings, real estate,
inventories, subsidiaries, and so on. Many of these assets still have value, yet that value may not
be reflected in the stock's price. Value investors look to buy stocks that are undervalued, and
then hold those stocks until the rest of the market realizes the real value of the company's assets.
The value investors tend to purchase a company's stock usually based on relationships between
the current market price of the company and certain business fundamentals. They like P/E ratio
being below a certain absolute limit; dividend yields above a certain absolute limit; Total sales at
a certain level relative to the company's market capitalization, or market value etc.
How can one acquire equity shares?
An investor may subscribe to issues made by corporates in the primary market. In the primary

market, resources are mobilized by the corporates through fresh public issues (IPOs) or through
private placements. Alternately, an investor may purchase shares from the secondary market. To
buy and sell securities an investor should approach a SEBI registered trading member (broker) of
a recognized stock exchange.
What is Bid and Ask price?
The ‘Bid’ is the buyer’s price. It is this price that an investor needs to know when an investor has
to sell a stock. Bid is the rate/price at which there is a ready buyer for the stock, which an
investor intends to sell. The ‘Ask’ (or offer) is what an investor needs to know when an investor is
buying i.e. this is the rate/ price at which there is seller ready to sell his stock. The seller will sell
his stock if he gets the quoted “Ask’ price.
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101
If an investor looks at a computer screen for a quote on the stock of say XYZ Ltd, it might look
something like this:
Bid (Buy side) Ask (Sell side)
____________________________________________________________________
Qty. Price (Rs.) Qty. Price (Rs.)
_____________________________________________________________________
1000 50.25 2000 50.35
500 50.10 1000 50.40
550 50.05 1500 50.50
2500 50.00 3000 50.55
1300 49.85 1450 50.65
____________________________________________________________________
Total 5850 8950
_____________________________________________________________________
Here, on the left‐hand side after the Bid quantity and price, whereas on the right hand side we
find the Ask quantity and prices. The best Buy (Bid) order is the order with the highest price and
therefore sits on the first line of the Bid side (1000 shares @ Rs. 50.25). The best Sell (Ask) order
is the order with the lowest sell price (2000 shares @ Rs. 50.35). The difference in the price of the
best bid and ask is called as the Bid‐Ask spread and often is an indicator of liquidity in a stock. The
narrower the difference the more liquid or highly traded is the stock.
What is a Portfolio?
A Portfolio is a combination of different investment assets mixed and matched for the purpose of
achieving an investor's goal(s). Items that are considered a part of an investor portfolio can
include any asset an investor own‐from shares, debentures, bonds, mutual fund units to items
such as gold, art and even real estate etc. However, for most investors a portfolio has come to
signify an investment in financial instruments like shares, debentures, fixed deposits, mutual fund
units.
What is Diversification?
It is a risk management technique that mixes a wide variety of investments within a portfolio. It is
designed to minimize the impact of any one security on overall portfolio performance.
Diversification is possibly the best way to reduce the risk in a portfolio.
What are the advantages of having a diversified portfolio?
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A good investment portfolio is a mix of a wide range of asset class. Different securities perform
differently at any point in time, so with a mix of asset types, an investor entire portfolio does not
suffer the impact of a decline of any one security. When an investor stocks go down, an investor
may still have the stability of the bonds in an investor portfolio. There have been all sorts of
academic studies and formulas that demonstrate why diversification is important, but it's really
just the simple practice of "not putting all an investor eggs in one basket." If an investor spread
an investor investments across various types of assets and markets, an investor will reduce the
risk of an investor entire portfolio getting affected by the adverse returns of any single asset
class.
13. Derivatives
What are Types of Derivatives?
Forwards: A forward contract is a customized contract between two entities, where settlement
takes place on a specific date in the future at today’s pre‐agreed price.
Futures: A futures contract is an agreement between two parties to buy or sell an asset at a
certain time in the future at a certain price. Futures contracts are special types of forward
contracts in the sense that the former are standardized exchange‐traded contracts, such as
futures of the Nifty index.
Options: An Option is a contract which gives the right, but not an obligation, to buy or sell the
underlying at a stated date and at a stated price. While a buyer of an option pays the premium
and buys the right to exercise his option, the writer of an option is the one who receives the
option premium and therefore obliged to sell/buy the asset if the buyer exercises it on him.
Options are of two types ‐ Calls and Puts options:
‘Calls’ give the buyer the right but not the obligation to buy a given quantity of the underlying
asset, at a given price on or before a given future date. ‘Puts’ give the buyer the right, but not the
obligation to sell a given quantity of underlying asset at a given price on or before a given future
date. Presently, at NSE futures and options are traded on the Nifty, CNX IT, BANK Nifty and 116
single stocks.
Warrants: Options generally have lives of up to one year. The majority of options traded on
exchanges have maximum maturity of nine months. Longer dated options are called Warrants
and are generally traded over‐the counter.
What is an ‘Option Premium’?
At the time of buying an option contract, the buyer has to pay premium. The premium is the
price for acquiring the right to buy or sell. It is price paid by the option buyer to the option seller
for acquiring the right to buy or sell. Option premiums are always paid upfront.
What is ‘Commodity Exchange’?
A Commodity Exchange is an association, or a company of any other body corporate organizing
futures trading in commodities. In a wider sense, it is taken to include any organized market
place where trade is routed through the mechanism, allowing effective competition among
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buyers and among sellers – this would include auction‐type exchanges, but not wholesale
markets, where trade is localized, but effectively takes place through many non‐related individual
transactions between different permutations of buyers and sellers.
What is meant by ‘Commodity’?
FCRA Forward Contracts (Regulation) Act, 1952 defines “goods” as “every kind of movable
property other than actionable claims, money and securities”. Futures’ trading is organized in
such goods or commodities as are permitted by the Central Government. At present, all goods
and products of agricultural (including plantation),
mineral and fossil origin are allowed for futures trading under the auspices of the commodity
exchanges recognized under the FCRA.
What is Commodity derivatives market?
Commodity derivatives market trade contracts for which the underlying asset is commodity. It
can be an agricultural commodity like wheat, soybeans, rapeseed, cotton, etc or precious metals
like gold, silver, etc.
What is the difference between Commodity and Financial derivatives?
The basic concept of a derivative contract remains the same whether the underlying happens to
be a commodity or a financial asset. However there are some features which are very peculiar to
commodity derivative markets. In the case of financial derivatives, most of these contracts are
cash settled. Even in the case of physical settlement, financial assets are not bulky and do not
need special facility for storage. Due to the bulky nature of the underlying assets, physical
settlement in commodity derivatives creates the need for warehousing. Similarly, the concept of
varying quality of asset does not really exist as far as financial underlyings are concerned.
However in the case of commodities, the quality of the asset underlying a contract can vary at
times.
14. Miscellaneous
Corporate Actions
What are Corporate Actions?
Corporate actions tend to have a bearing on the price of a security. When a company announces
a corporate action, it is initiating a process that will bring actual change to its securities either in
terms of number of shares increasing in the hands on the shareholders or a change to the face
value of the security or receiving shares of a new company by the shareholders as in the case of
merger or acquisition etc. By understanding these different types of processes and their effects,
an investor can have a clearer picture of what a corporate action indicates about a company's
financial affairs and how that action will influence the company's share price and performance.
Corporate actions are typically agreed upon by a company's Board of Directors and authorized by
the shareholders. Some examples are dividends, stock splits, rights issues, bonus issues etc.
What is meant by ‘Dividend’ declared by companies?
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Returns received by investors in equities come in two forms a) growth in the value (market price)
of the share and b) dividends. Dividend is distribution of part of a company's earnings to
shareholders, usually twice a year in the form of a final dividend and an interim dividend.
Dividend is therefore a source of income for the shareholder. Normally, the dividend is expressed
on a 'per share' basis, for instance – Rs. 3 per share. This makes it easy to see how much of the
company's profits are being paid out, and how much are being retained by the company to
plough back into the business. So a company that has earnings per share in the year of Rs. 6 and
pays out Rs. 3 per share as a dividend is passing half of its profits on to shareholders and
retaining the other half. Directors of a company have discretion as to how much of a dividend to
declare or whether they should pay any dividend at all.
What is meant by Dividend yield?
Dividend yield gives the relationship between the current price of a stock and the dividend paid
by its’ issuing company during the last 12 months. It is calculated by aggregating past year's
dividend and dividing it by the current stock price.
Example: ABC Co.
Share price : Rs. 360
Annual dividend : Rs. 10
Dividend yield : 2.77% (10/360)
Historically, a higher dividend yield has been considered to be desirable among investors. A high
dividend yield is considered to be evidence that a stock is underpriced, whereas a low dividend
yield is considered evidence that the stock is overpriced. A note of caution here though. There
have been companies in the past which had a record of high dividend yield, only to go bust in
later years. Dividend yield therefore can be only one of the factors in determining future
performance of a company.
Why do companies announce Stock Split?
If the value of the stock doesn't change, what motivates a company to split its stock? Though
there are no theoretical reasons in financial literature to indicate the need for a stock split,
generally, there are mainly two important reasons. As the price of a security gets higher and
higher, some investors may feel the price is too high for them to buy, or small investors may feel
it is unaffordable. Splitting the stock brings the share price down to a more "attractive" level. In
our earlier example to buy 1 share of company ABC an investor need Rs. 40 pre‐split, but after
the stock split the same number of shares can be bought for Rs.10, making it attractive for more
investors to buy the share. This leads us to the second reason. Splitting a stock may lead to
increase in the stock's liquidity, since more investors are able to afford the share and the total
outstanding shares of the company have also increased in the market.
Index
What is the Nifty index?
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S&P CNX Nifty (Nifty), is a scientifically developed, 50 stock index, reflecting accurately the
market movement of the Indian markets. It comprises of some of the largest and most liquid
stocks traded on the NSE. It is maintained by India Index Services & Products Ltd. (IISL), which is a
joint venture between NSE and CRISIL. The index has been co‐branded by Standard & Poor’s
(S&P). Nifty is the barometer of the Indian markets.
Clearing & Settlement and Redressal
What is a Clearing Corporation?
A Clearing Corporation is a part of an exchange or a separate entity and performs three
functions, namely, it clears and settles all transactions, i.e. completes the process of receiving
and delivering shares/funds to the buyers and sellers in the market, it provides financial
guarantee for all transactions executed on the exchange and provides risk management
functions. National Securities Clearing Corporation (NSCCL), a 100% subsidiary of NSE, performs
the role of a Clearing Corporation for transactions executed on the NSE.
What is Rolling Settlement?
Under rolling settlement all open positions at the end of the day mandatorily result in payment/
delivery ‘n’ days later. Currently trades in rolling settlement are settled on T+2 basis where T is
the trade day. For example, a trade executed on Monday is mandatorily settled by Wednesday
(considering two working days from the trade day).
The funds and securities pay‐in and pay‐out are carried out on T+2 days.
What is Pay‐in and Pay‐out?
Pay‐in day is the day when the securities sold are delivered to the exchange by the sellers and
funds for the securities purchased are made available to the exchange by the buyers. Pay‐out day
is the day the securities purchased are delivered to the buyers and the funds for the securities
sold are given to the sellers by the exchange. At present the pay‐in and pay‐out happens on the
2nd working day after the trade is executed on the stock exchange.
What is short selling?
Short selling is a legitimate trading strategy. It is a sale of a security that the seller does not own,
or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers
take the risk that they will be able to buy the stock at a more favorable price than the price at
which they "sold short."
What is a No‐delivery period?
Whenever a company announces a book closure or record date, the exchange sets up a no‐
delivery period for that security. During this period only trading is permitted in the security.
However, these trades are settled only after the no‐delivery period is over. This is done to ensure
that investor's entitlement for the corporate benefit is clearly determined.
What is an Ex‐dividend date?
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The date on or after which a security begins trading without the dividend included in the price,
i.e. buyers of the shares will no longer be entitled for the dividend which has been declared
recently by the company, in case they buy on or after the ex‐dividend date.
What is an Ex‐date?
The first day of the no‐delivery period is the ex‐date. If there is any corporate benefits such as

rights, bonus, dividend announced for which book closure/record date is fixed, the buyer of the
shares on or after the ex‐date will not be eligible for the benefits.
What is Arbitration?
Arbitration is an alternative dispute resolution mechanism provided by a stock exchange for
resolving disputes between the trading members and their clients in respect of trades done on
the exchange. If no amicable settlement could be reached through the normal grievance
redressal mechanism of the stock exchange, then an investor can make application for reference
to Arbitration under the Bye‐Laws of the concerned Stock exchange.
What is a Book‐closure/Record date?
Book closure and record date help a company determine exactly the shareholders of a company
as on a given date. Book closure refers to the closing of the register of the names of investors in
the records of a company. Companies announce book closure dates from time to time. The
benefits of dividends, bonus issues, rights issue accrue to investors whose name appears on the
company's records as on a given date which is known as the record date and is declared in
advance by the company so that buyers have enough time to buy the shares, get them registered
in the books of the company and become entitled for the benefits such as bonus, rights,
dividends etc. With the depositories now in place, the buyers need not send shares physically to
the companies for registration. This is taken care by the depository since they have the records of
investor holdings as on a particular date electronically with them.
What is Buyback of Shares?
A buyback can be seen as a method for company to invest in itself by buying shares from other
investors in the market. Buybacks reduce the number of shares outstanding in the market. Buy
back is done by the company with the purpose to improve the liquidity in its shares and enhance
the shareholders’ wealth. Under the SEBI (Buy Back of Securities) Regulation, 1998, a company is
permitted to buy back its share from:
a) Existing shareholders on a proportionate basis through the offer document.
b) Open market through stock exchanges using book building process.
c) Shareholders holding odd lot shares.
The company has to disclose the pre and post‐buyback holding of the promoters. To ensure
completion of the buyback process speedily, the regulations have stipulated time limit for each
step. For example, in the cases of purchases through stock exchanges, an offer for buy back
should not remain open for more than 30 days. The verification of shares received in buy back
has to be completed within 15 days of the closure of the offer.
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The payments for accepted securities has to be made within 7 days of the completion of
verification and bought back shares have to be extinguished within 7 days of the date of the
payment.
What is EPS, P/E, BV and MV/BV?

Earning Per Share (EPS): EPS represents the portion of a company's profit allocated to each
outstanding share of common stock. Net income (reported or estimated) for a period of time is
divided by the total number of shares outstanding during that period. It is one of the measures of
the profitability of common shareholder's investments. It is given by profit after tax (PAT) divided
by number of common shares outstanding.
Price Earning Multiple (P/E): Price earning multiple is ratio between market value per share and
earning per share.

Book Value (BV): (of a common share) The company's Net worth (which is paid‐up capital +
reserves & surplus) divided by number of shares outstanding.

(MV/BV ratio)Market value to book value ratio: It is the ratio between the market price of a
security and Book Value of the security.
What is a Stock Split?
A stock split is a corporate action which splits the existing shares of a particular face value into
smaller denominations so that the number of shares increase, however, the market capitalization
or the value of shares held by the investors post split remains the same as that before the split.
For e.g. If a company has issued 1,00,00,000 shares with a face value of Rs. 10 and the current
market price being Rs. 100, a 2‐for‐1 stock split would reduce the face value of the shares to 5
and increase the number of the company’s outstanding shares to 2,00,00,000,
(1,00,00,000*(10/5)). Consequently, the share price would also halve to Rs. 50 so that the market
capitalization or the value shares held by an investor remains unchanged. It is the same thing as
exchanging a Rs. 100 note for two Rs. 50 notes; the value remains the same . Let us see the
impact of this on the share holder: ‐ Let's say company ABC is trading at Rs. 40 and has 100
million shares issued, which gives it a market capitalization of Rs. 4000 million (Rs. 40 x 100
million shares). An investor holds 400 shares of the company valued at Rs. 16,000. The company
then decides to implement a 4‐for‐1 stock split (i.e. a shareholder holding 1 share, will now hold 4
shares). For each share shareholders currently own, they receive three additional shares. The
investor will therefore hold 1600 shares. So the investor gains 3 additional shares for each share
held. But this does not impact the value of the shares held by the investor since post split, the
price of the stock is also split by 25% (1/4th), from Rs. 40 to Rs.10, therefore the investor
continues to hold Rs. 16,000 worth of shares. Notice that the market capitalization stays the
same ‐ it has increased the amount of stocks outstanding to 400 million while simultaneously
reducing the stock price by 25% to Rs. 10 for a capitalization of Rs. 4000 million. The true value of
the company hasn't changed. An easy way to determine the new stock price is to divide the
previous stock price by the split ratio. In the case of our example, divide Rs. 40 by 4 and we get
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the new trading price of Rs. 10. If a stock were to split 3‐for‐2, we'd do the same thing: 40/(3/2) =
40/1.5 = Rs. 26.60. Pre‐Split Post‐Split 2‐for‐1 Split No. of shares 100 mill. 200 mill. Share Price Rs.
40 Rs. 20 Market Cap. Rs. 4000 mill. Rs. 4000 mill. 4‐for‐1 No. of shares 100 mill. 400 mill. Share
Price Rs. 40 Rs. 10 Market Cap. Rs. 4000 mill. Rs. 4000 mill.
What is an Auction?
On account of non‐delivery of securities by the trading member on the payin day, the securities
are put up for auction by the Exchange. This ensures that the buying trading member receives the
securities. The Exchange purchases the requisite quantity in auction market and gives them to
the buying trading member.
Auction Procedure
Normal Trading in BSE or NSE Segment:
CASE ‐ I

T : Monday (+) 500 Shares o Reliance
T+1 : Tuesday
T+2 : Wednesday Delivery in Angel Pool
(Pay In ‐ Pay Out day)
T+3 : Thursday Transfer to DP

CASE ‐ II

T : Monday (‐) 500 Shares of Reliance
T+1 : Tuesday
T+2 : Wednesday Delivery before 10:30AM
(Pay In ‐ Pay Out day)
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T+3 : Thursday Market Auction
Considering that the client that the sold share is his short position, the shares get auctioned. The
internal auction happens on T+2 basis. Bill gets generated on the T+2 day. Confirmation of the
auction can be received on the same day the bill is prepared.
In case the internal auction does not happen the share goes in the market for the Market
auction. The market auction is conducted by BSE on the T+3 day.
The internal auction takes place @7%
7% ‐ Closing of T+2 day
Or
7% ‐ T day (whichever is higher)
In case of market auction, it is charged anywhere between 10% ‐ 15% + PENALTY. Penalty
depends on the script.
Auction for Trade to Trade Segment

Trade to Trade segment shares by default have a compulsory delivery rule. If u buy then have to
compulsory take the delivery and if you sell, then have to compulsory give the delivery. No intra
day is allowed in this segment.
In case of selling the shares of this segment, the client has to give compulsory delivery. In case he
is not able to then the shares get auctioned in the market.
⇒ Only Market Auction
⇒ 15% minimum ‐ if on BSE
20% minimum – if on NSE cash
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Physical Shares
Shares which have a compulsory D‐MAT label have to be dematerialized for the purpose of
trading. The share on physical form i.e. Share Certificates which are not dematerialized can also
be sold in the market subject to provisions.
In such cases the shares BEFORE 1999 – 2000 can only be sold in the market but the rate
applicable to such shares is lower than the current market rate. The Pay in and Pay out happens
on T+1 day.
Some physical shares are also there in trade to trade segment. Provisions applicable to them are
same as that to normal trade to trade segment. In case of shares that are short there is a
compulsory market auction. The charges auction applicable to in the auction:
⇒ Only Market Auction
⇒ Above 15% ‐ if on BSE
Above 20% – if on NSE cash
⇒ The rate on which auction is done can be the T day or T+1 day or T+2 day which ever
closing rate is higher.

There are exceptional shares which are listed on the exchanges where the shares in physical form
can be sold even after 1999 – 2000 i.e. if they are bought on 06/11/2006 then they can be sold
on 10/11/2006 provided the shares have been transferred to the client account. If such shares
are bought then the delivery might come in 15 to 20 days depending on the company. E.g. State
Bank of Travancore.
Dealing BPS Check List
OVERALL
GRADE: SCORE: 0
Ideal
Branch Process
Activity Purpose Activity Remarks
Scores Type
Timing
Pre Market Activity
Reporting 9 A.M Punctuality 9 A.M Daily
Discuss market
outlook for the
Check if the day and check 9.15
Dealers practice a angel long term A.M to
Daily
Pre‐Market research calls 9.30
meeting as well as A.M
positional calls
if any for the
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day
Presence of Risk
Management
person required in
9.15
pre‐market to Identifying
A.M to
update the dealers Pure risk Daily
9.30
regarding the customer
A.M
current risk status
of their clients in
pure/projected risk
A call before
market will give 9.35
Promotion of angel
the image of A.M to
positional and long Daily
personalized 9.50
term calls
service to the A.M
client
Dealing Market Activity
Promotion of angel
Keeping the
(Intra‐day &
client 9.55
positional calls) by
interested A.M to Daily
phone, messenger
during market 3.30 P.M
etc during market
hours
hours proactively
This will avoid
Dealers should
any punching
ideally confirm
error which 9.55
Scrip,Price,Quantity
should not A.M to Daily
& Trading code
happen and 3.30 P.M
before executing
avoided at all
any trades
costs
Dealers should
ideally confirm More trade
limit order trades confirmations 9.55
buy /sell to clients will give rise to A.M to Daily
as soon as more trades 3.30 P.M
execution of trades execution
happen
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Dealers should
ideally always This will avoid
check the clients any kind of mis
net position on a deals which 9.55
regular basis and should not A.M to Daily
confirm the same happen and 3.30 P.M
with the client avoided at all
before market costs
closure
Post Market Activity
Trade
confirmations for The client
the day have to should agree & 3.30 P.M
informed to the confirm about to 4.15 Daily
client on a daily net position of P.M
basis on a recorded the day
line
To use the
Usage of CRMS
software in
software by every 4.30 P.M
giving optimum
dealer and using to 5.30 Daily
service to the
the system as a P.M
client in all
value addition
possible ways
Awareness
about recent
market news
and upgrade
one's market 5.30 P.M
Post market
knowledge by to 6.00 Daily
meeting
obtaining P.M
information of
corporate
actions on
particular scrips
Other Requirements
NCFM / BCCM Certified
NSE CASH
NSE ‐ F&O
BSE‐ Cash
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COMMODITIY
Total 0

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CHAPTER – VI
Security of Your Shares – DP / DEMAT

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CHAPTER COVERAGE

1. Introduction

2. Advantages of having DP a/c with Angel

3. Different features of Angel’s DP
4. Tracking of transfer of shares
5. Charges for Depository Services
6. Benefits and connectivity requirements
7. Compliance requirement for Branch
8. Filling of DIS for different transactions
9. Points to be noted for Dematerialization of Shares
10. Useful utilities and link for DP services (cross net)
11. Pay‐in shortage confirmation
12. Pay‐out Process and shortage confirmation
13. Auction Bills
14. Marking of shares for F&O collateral and margin reports
15. Corporate action
16. Important notes
17. Additional useful utilities/links for DP & Demat services
18. DP/Demat checklist

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1. Introduction of Angle DP

) Angel provides its DP services through CDSL.
) The depository services are offered to create a seamless transaction platform to execute
trades through the Angel Group of Companies and to settle these transactions through
Angel Depository Services.
) As a DP, we have always worked to anticipate and fulfill the changing needs of our
esteemed customers.
) Our efforts in this direction have gradually started Paying off, as we have grown by leaps
and bounds, and have been able to provide DP services to 3, 10,000 clients spread over
119 branches.
) The present asset size under our DP has reached Rs.3241 crore as on September ’2008.
) Initiatives like strict adherence to compliances, ethical business practices, pro‐active
services and innovative products have helped us to stand tall amongst our competitors.
) With the help of steady growth in the investor base, we are able to service our DP clients’
at the most competitive rates.
) We aim to continually serve our clients’ needs by providing quality services in a timely
fashion at cost effective rates.

2. Advantages of having DP A/C with Angel

Fig. 1
The channel partners during the course of interaction with existing or prospective clients should
highlight the benefits of holding DP services with Angel which are as given below:
) Angel is in a better position to know the requirements of its clients on an instant basis.

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) No physical instructions are required for client’s selling obligations – as we provide
automated pay‐in facility to our clients for trades done through Angel Broking
Limited/Angel Capital & Debt Market Ltd. (POA)
) The transaction charges are the lowest in the industry and have been kept so to ensure
that our clients get more value for their money.
We provide the clients with options which have unique features like:‐
) Viewing, downloading and printing the holdings of the Demat account along with valuation
of holding on a real time basis. This facility can be accessed anytime/anywhere and is
sourced directly from the CDSL database, if you subscribe to the Easy facility offered by
CDSL.
) SMART (SMS Alerts Related to Transactions) is CDSL's SMS alert facility in which registered
clients will receive alerts for all types of debits and for credits due to IPO allotments and
corporate actions in their Demat account. Thus, SMART acts as an effective risk control
mechanism for monitoring the Demat account for the client
) On subscription to Easiest offered by CDSL the client can submit his own delivery
instructions on the internet without the intervention of his DP. Thus gets the leverage of
delivering his own instruction at his leisure from anywhere.
Following are some of the important reports mentioned below which can be viewed by the clients:
i. Pay‐in & Pay‐out shortage report
ii. Report of Holding, Ledger & transaction in Demat and Trading A/c
iii. Client profile
iv. Settlement Calendar
v. ISIN Master Etc.
Further, the clients can download the DP form formats e.g. Account Modification, SMS facility form etc.
directly from our website www.angeltrade.com under Depository services > Download DP forms.

3. Different features of Angel’s DP

Fig. 2
) No risk of loss, wrong transfer, mutilation or theft of share certificates.
) Efficient Demat mechanism.
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) Hassle‐free automated pay‐in of sell obligation by the Clearing Member.
) Reduced paper work.
) Speedier settlement process. Increase in liquidity of your securities because of faster
transfer and registration of securities in Client’s account.
) On‐time disbursement of non‐cash benefits like bonus and rights into client’s own account.
) Efficient pledge mechanism.
) Wide Branch coverage.

) Personalized / attentive services of a trained Help Desk.
) Centralized billing & accounting.
) All in one combined monthly ‘Bill‐cum‐Transaction‐Cum‐Holding‐cum‐Ledger’ statement.
4. Tracking of transfer of shares

Through our Back‐Office software we are offering certain Value Added Facilities to our
Clients in addition to the facilities offered by CDSL mentioned as below:‐
) Our web‐enabled Back‐Office software allows the client to view his online transaction
statement, status of transaction and holding for any historic period.
) The clients can have access to the ledger account as well as the Client profile online.
) We also maintain the account and update the back office on a real time basis, as per the
instructions given by the investors from time to time.
) The Sub broker / Clients login can view / print DP transaction statements for a period of 1
year (i.e. 365 days) and can view holdings statement as on any date from January 01, 2008
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5. Charges for Depository Services through CDSL W.E.F 01‐JUL‐2007

S C H E M E S
Sr. Services
H.N.I./Traders Investors
1 Annual Membership Charges Rs.700/‐ Rs. 300/‐

2 Deliveries/Debit (Market & Off Market)

1. Within Angel DP Rs. 11/‐ txn Rs. 11/‐ txn
Rs. 16/‐txn Rs. 21/‐ txn
2. Outside Angel DP
(Charges are inclusive of CDSL
tariff)
3 Pledge (Creation/Closure/Invocation) Rs. 25/‐ Per ISIN Rs. 25/‐ Per ISIN

4 Dematerialisation Rs. 4/‐ per certificate Rs. 4/‐ per certificate
plus Rs. 30/‐ per plus
request towards postal Rs. 30/‐ per request
charges towards postal
charges
Rematerialisation Actual CDSL charges Actual CDSL charges
plus Rs 30/‐ per request plus Rs 30/‐ per
towards postal charges request
towards postal
charges

Other Terms:
) Agreement Charges (Stamp Duty) of Rs. 100/‐ is payable per account (one time only at time
of account opening)
) Power of Attorney (POA) charges Rs.135 (Rs.100/‐ stamp paper and notary charges of Rs
35/‐one time only at time of account opening).
) For availing Easiest facility of CDSL, The charges as levied by CDSL would be collected from
clients at actual.
) In case of every Corporate Accounts, CDSL AMC of Rs. 500/‐ shall be charged extra.
) CDSL levies transaction charge of Rs. 6/‐ per delivery transaction.
) CDSL levies Rematerialisation charges as higher of the following – A fee of Rs 10/‐ for every
100 securities or part thereof: A flat fee of Rs 10/‐ per certificate.
) Services tax, Education cess and other statutory levies (if any) would be charged extra
wherever applicable as per the prevailing rates.
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6. Benefits and connectivity requirements

A channel partner can also become a sub‐DP of Angel Depository Services and avail of various benefits
for his own clients:
) The channel partner can execute the delivery instructions on behalf of their clients,
mapped through Angel CSO. The clients will give the delivery instructions to the channel
partner, who in turn can punch the instructions into the back office. These instructions
may be scanned into the system or even faxed to CSO, which will verify and authenticate
the transaction. The original DIS needs to be sent to CSO within the next 2 days.
) The channel partner can view transaction, holding, ledger, bills and other reports of their
clients.
) The channel partner can issue welcome letters to their clients for new a/c opening.
) The channel partner can view signatures of their clients.
) Online messages can be sent by the CSO to the channel partner and vice versa.
) The channel partner can also monitor the status of transactions of their clients with the
CSO.
Connectivity requirements:
The Channel Partner can easily get the DP interface by signing up a simple request form (Master
Creation Form) and an Agreement with Angel for providing DP services. Training is provided
accordingly. Login id and password for DP interface will be allotted to the Channel partners

7. DP compliance requirement for branch

) ANGEL board mentioning DP services to be displayed at a visible location at the branch
) Person handling the DP desk has to be BCCD certified.
) DP Agreement (Sub‐brokers & Franchisees), if the Cross net login is given
) Hand Delivery register for DIS/DRF/Other documents and inward/outward records of all DP
documents to be maintained
) Hand Delivery of DIS to 3rd party should be given only on basis of authority letter provided
by the client
) Dispatch Proofs (POD) of DP documents need to be filed separately and log of the
documents couriered to be maintained with POD nos.
) Reason on ‘OFF MARKET’ Delivery Instruction Slip needs to be mention on the slips by
clients on submission
) Processed original DIS to be forwarded to CSO within 2 days
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) In‐person Verification of the applicant
) Time and date stamp & initial of DP executive on the processed DIS
) Best Effort stamp on same day Pay‐in / off‐market slips
8. Filling of DIS for different transactions

8.1. If clients sell shares on BSE (i.e. in Angel Broking Ltd) & have not opted for POA:
Always give transfer as Market Transfer
CMBPID : IN606125
CM Name : Angel Broking Ltd.
Settlement No : 0809XXX
Market Type : Rolling Market
8.2. If clients sell the shares on NSE (i.e. Angel Capital & Debt Market) & have not opted for POA:
Always give transfer as Market Transfer
CMBPID : IN556929
CM Name : Angel Capital & Debt Market Ltd.
Settlement No : 2008XXX
Market Type : Normal (In case of Trade to Trade: Trade for
. Trade)
8.3. If clients are giving shares as security/margin:
Give off market transfer to
In case of BSE : DP id : IN301549
DP Name : HDFC Bank Ltd
Client id : 14216209

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In case of NSE : DP id : IN301151
In case of F & O : DP id : IN301549
A link is available in back office for online tracking of pending DIS. The branches can login into the
below mentioned link and check the status of DIS that has been dispatched to CSO. Steps to be
followed:
) Log‐in to Angel back office (http://196.1.115.150 – Depository POA Report.
) Click on DIS report
) Select from date, to date, Branch Tag and RECO option
) The generated MIS can be exported to excel.
9. Points to be noted for Dematerialization of Shares

) Ensure that only the scrips eligible for Dematerialization are sent to CSO for further
processing. The details of the scrips which are under Demat are available in the cross‐net
as well as on www.cdslindia.com .
) Before dispatch, ensure that the DRF copies sent to CSO are filled in completely and signed
by all accountholders.
) Verify the account holder’s signature with our DP system‐ Cross Net.
) In case of HUF / Corporate accounts, kindly ensure the seal of HUF / Corporate is there on
DRF.
) Ensure that the name appearing on the certificate surrendered for Demat is in the same
order as appearing in the DP account.

A separate link has been introduced (http://196.1.115.136/rmnew/main.asp) to track the status of
Demat Request Form (DRF) from branches to CSO. Presently, branches forward the DRFs to CSO
and maintain details in excel. The branches are not able to track the receipt of DRF at CSO. Now,
with the implementation of above link, branches will have the following benefits:
) Online tracking and inwarding of DRF
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) Verification of Client Signature from DRF link
) Verification of Vanishing company details from DRF link
) Maintenance dispatch details to CSO
This will help branches to reduce their dependency on CSO for follow up calls and will also enhance
efficiency at branch end. We have attached the detailed process flow for ready reference of
branches
10. Useful utilities and link for DP services (cross net)

) DIS Punching into the Cross Net ‐ On receipt of DIS from the client, the Branches have to
enter the DIS instruction in the Cross Net and scan the DIS into the system.
The Branches have to navigate through the following process for making the entry of DIS and
scanning the copy of DIS.
Login to Cross Net Æ Settlement Æ Off Market / Inter Depository.
Off Market: This option has to be selected when the clients wants to give delivery in other
Beneficiary A/c i.e. transfer from CDSL to CDSL. For same day execution DIS, following are the
timelines for the branch.
Monday to Friday – before 6.00 pm and Saturday – before 2.30 pm
Inter Depository: This option has to be selected when the client wants to give delivery in the
Pool A/c i.e. transfer from CDSL to NSDL. For same day execution DIS, following are the
timelines for the branch.
Monday to Friday – before 5.00 pm and Saturday – before 1.00 pm

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Print Screen for DIS Link in Cross Net
Click on
Settlements to Enter
Instructions
In Settlements, the entry can be done for
On Market, Off Market, Early Pay-in

DIS Punching Screen when Off market / Inter Depository option is selected.

The DIS Slip can be scanned by navigating through the following process.
Login to Cross Net Æ Settlement Æ Slip Scan.
Displays the Screen of Slip Scanning.
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) Other Options in Cross Net
1. A/c Opening letter: When a client opens a new Depository Participant account with us,
the branches need to send the Account opening letter to the customer. The format of
the letter is available in Cross Net.
2. A/c freezing Letter: Account freezing letter to be sent to the client.
3. Clear Login: The locked login ids. of the Cross Net can be unlocked through this link.
4. Messages: With the help of the Messages link, branches can directly send the mail to
the users mapped in the list.
5. Client Summary: This link provides the complete client summary with the details of the
holding that was last updated into the system.
6. Client Password: The user of Cross net can change password on the said link.
Other Options in Cross Net.
You can clear login for

locked users. Here you have
Other Options
You can send messages to
like you can print
Head Office and End Users
Letter for Account
Client Summary report
gives you a span shot of
Opening or
client accounts with Freezing, Scan A/c
Holding, Outstanding Opening Form
Amount, Telephone
b t hi h
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The ledger for specified period can be viewed / printed through this link.

) DP Transaction and Holdings Statements
The branches login in Cross Net can view / print transaction statement for 365 days and also
view Holdings Statements of the clients as on any date starting from January 01, 2007 / account
opening date whichever is later.
For viewing the Transaction Statement the Branches have to navigate through the following
process:
Login to Cross Net Æ Reports Æ Transaction Statement Æ Enter DP Client Id. and From date
– To date. Click on Preview
View / Print of Transaction Statement
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To view the Holdings Statement as on any date from January 01, 2007 the branches should navigate
through the following process.
Login to Cross Net Æ Reports Æ Transaction / Holding / Bill Æ Enter DP Client Id. and from date – To
date. Click on Preview

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View Holdings Statement
11. Pay‐in shortage confirmation

) The Pay‐in shortage file can be viewed in the Back office software on navigating through
the below mentioned process on T+1 day after 11:00am and 3:00pm and 9:00pm on T+2
day respectively.
) The shortage confirmation must be conveyed to the clients by the Branch or the SB
proactively to avoid any losses to the clients.

Link: Share Reports Æ NSE Delivery Reports / BSE Delivery Reports Æ In Options – Statements >
Pay‐in Reconciliation
Enter Settlement Type and Settlement No. and select Branch tag and Option – Only Shortage, then
the Pay‐in shortage file will be displayed (Figure 3)
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The branches have to intimate the CSO via mail about the reason for shortage in the excel format.

Fig. 3
12. Pay‐out of shares and shortage confirmation:

) Pay‐out of securities are received from the Clearing House on T+2 days in Angel’s pool
account, from where it is shifted to Angel’s beneficiary account where it is held client‐wise.
) Securities held in Angel’s beneficiary account can be transferred to client’s DP account on
request.
) For this purpose, the Branch or the SB has to mark a pay‐out of shares in our back‐office.
) The shortage confirmation must be conveyed to the clients by the Branch or the SB
proactively to avoid any losses to the clients.
) The pay‐out shortage report can be checked after 3:00pm on T+2 day and after 11:30pm
on T+3 day

Link for Pay‐out marking by the Branch:
For checking the BSE/NSE Pay‐out request the branches have to login into the Back office software
and navigate through the below mentioned process.
Link: Share Reports Æ BSE Pay‐out Request or Approval / NSE Pay‐out request or Approval.
Enter the Sett No, Sett Type, Party Code, and Scrip Code, Branch/Sub‐ broker and Option details
and then click on Submit.
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The following screen will appear in the Back office software. (Figure 4 and 5)
The branches have to enter the total quantity for Pay‐out of shares in the Marked Qty column and
then click on Submit.
Fig. 4
Fig. 5
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Checking Branch marking Pay‐out of shares
Fig. 6
Pay‐out Shortage
Pay‐out shortage can be viewed by navigating through the following process.
Share Reports Æ BSE Delivery Reports (Hist) / NSE Delivery Reports (Hist) Æ In options – Shortage
Reports ÆClients Pay out New
The details of all the Pay‐out Shortage for the specified settlement is displayed on the screen. (Figure 7)
Figure 3: Pay‐out Shortage File
Fig. 7
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13. Auction Bills:

The printouts of the Auction bills can be taken from the following:
Links:
• Shares Reports > Printing > BSE Contract cum Bill V2
• Shares Reports > Printing > NSE Contract cum Bill V2
•
The timelines for the branch to print Auction bills and intimate clients are as follows:
• Internal Auction ‐ Bill needs be checked after 9.00 am on T+3 day (BSE)
• Market Auction ‐ Bill needs be checked after 4.00 pm on T+3 day (BSE)
• Internal Auction ‐ Bill needs be checked after 9.00 am on T+3 day (NSE)
• Market Auction ‐ Bill needs be checked after 9.00 am on T+4 day (NSE)

14. Marking of shares for F&O collateral and margin reports

) Approved Scrip F&O list ‐ The branches should check the list of all the Approved Scrips for
marking shares for F&O Collateral Account. The list is available in the Risk Management
Link (http://196.1.115.136/rmnew/main.asp) by navigating through the following process.
) Link: Risk Management Æ Other Information Æ Approved Scrip FO (Figure 8)
) The request for marking shares for F&O Collateral should be given from the displayed list
only.

Fig. 8

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Pay‐in from Margin Account
The branches can view details of all the Pay‐in for a particular settlement from the Margin Account
by navigating through the following process. The Branches and Sub‐Brokers can view / identify
from this report if any of their clients have sold the shares which they have given to us as a
security/margin, and whether the same are to be released and used for pay‐in.
Link: Share reports Æ Display Æ Shortage Reason (Figure 9)
Enter the following details: Settlement: From – To > Exchange Segment > Report Title – Client only
Bits Report> Click on Show report (On the right side)

Fig. 9
Margin Holding and Pay‐out request
The branches can view the clients holding in the Margin Account by navigating through the
following process. This would ensure that shares given for margin can now be released through
this option
Share Reports Æ PP Holding and Pay‐out mark. (Figure 10)
Enter the following details:
Exchange Segment
Report type: Report – For holdings request and Pay‐out request – For Marking Pay‐out from the

Holdings
Enter Client Code, Scrip code and from date – to date.
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Fig. 10
Points to be noted by the Branch for release request of shares from Margin Account
) The CSO team would ‘by default’ release the shares of clients from Margin account based
on clients selling & shortage position on t+1 day and shall not wait for branch
communication.
) Any additional shares transferred by clients from outside DP account for ‘Pay‐in’ would
stand to the credit of clients or would get adjusted against the shortage of another client.
In this scenario, the client who has transferred excess shares would get close out @ 7%.
This effectively means that clients need not transfer shares from outside DP if they have
the required quantities of shares in our Margin account to meet their selling obligation.
) Now, if clients wish to transfer shares from outside DP account and does not want CSO to
touch shares lying in Margin account, then a communication to this effect needs to be sent
to CSO before 11.30 a.m. on ‘T+1’ day.
) However, branch executives continue to inform to CSO for release of shares in following
exceptional situations like,
) if Shares are held under ‘Sub Broker Tag’,
) If shares are sold on the same day of transfer to margin account. Though this is not
advisable as shares requested for transfer to margin account shall not be sold for next 3
working days. The Pay‐in in such situation would be met by CSO on a best effort basis and
shall be at clients own risk. We strictly solicit that shares requested for transfer to margin
account shall not be sold for next 2‐3 working days.
) If shares are sold and client is under ‘Shifting Mode’‐ Client Shifting from one tag to
another or from one branch to another.
15. Corporate action:

) Splits, dividends, mergers, acquisitions, rights, buy back are all examples of corporate
actions.
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) Ex‐date – The date on which security trades without the benefit of a corporate action.
) Record date ‐ The date on which the company (RTA) proposes to determine the holders
who are entitled to receive the benefit of corporate action.
) The Branches should verifying Corporate Action Report link and mark pay‐out after
checking the clients’ ledger Debit/Credit before the record date and take extra care for
timely submission of client’s DIS for corporate action.
) The client’s having shares in our beneficiary account needs to be informed on Rights /
Buyback as per list provided from CSO
) In case Rights/Buy Back confirmation letters from clients needs to be acquired and
maintained at the branches.
Link: https://196.1.115.150 > Angel Broking Ltd > Log‐in > Share Reports > Display >
Corporate action announced
16. Important notes:

) Credit will not be given for shares given from 3rd party id.
) If clients are giving shares from new Demat account which is not registered with Angel,
then kindly ensure you send us a copy of the new Demat account details on or before the
pay‐in day.
) The Branch or SB must educate the clients on the policy of 7% of internal closeout on
shortages and also connectivity snag as mentioned in our KYC agreement.
) Original DIS collected from clients should be forwarded to CSO within 2 days.
) In case of Off‐market transaction DIS, the reason for such transfer should be taken in
writing on the back side of DIS from clients along with their signatures.
) Acknowledgement to be given to client for each receipt of DIS and date & time stamp to be
pasted on our copy (back side).
) Best effort stamp needs to be affixed in case, if the client submits the DIS with same day’s
execution date
) DIS books received from CSO / branches need to be dispatched to clients or handed over
to clients, and proper record needs to be maintained.

) Person handling the DP back office function should be a BCCD certified person.

) If DP back office rights are assigned to any SB / franchisee, than a DP – franchise
agreement is to be obtained from SB / franchisee.

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17. Additional useful utilities / links for DP services & Settlements:

VIEW IPO ALLOTMENT:
This option would show the client‐wise / branch‐wise allotment received from companies

who came out with an IPO. The branches can view shares allotted to our clients in an IPO and
proactively inform them about the same. (First hand information)
Link: Log on to www. Angelbackoffice.com > Select Depository POA > Login to view > IPO allotment
report / POA status / PAN pending clients details etc. can be viewed
DP bill and ledger info:
This link would give details of sub‐broker‐wise/Client‐wise outstanding DP dues. Kindly make use

of this link for DP bill collection to eliminate/ reduce any bad debts. We believe that this link would
be useful for follow ups with clients for DP dues.
Link: Log on to www. Angelbackoffice.com > Risk Management > Login to view > DP / Ledger & Bill Info.
can be viewed
VIEW NON PAN CLIENTS:
Branches can view all the NON‐PAN clients attached to the branch and shall follow‐up with these

clients for PAN. (Non PAN clients to get de‐ activated w.e.f. 01/01/2007)
Link: Log on to www. Angelbackoffice.com > Select Depository POA > Login to view > PAN pending
clients details etc. can be viewed
VIEW POWER OF ATTORNEY (POA) STATUS:
Branches can view the POA status (active / non‐active) of all clients attached to a particular branch.
This is a useful link which helps you to know whether the client is registered as POA client or not.
(Useful for following up for pay‐in shortages)
Link: Log on to www. Angelbackoffice.com > Select Depository POA > Login to view > POA status can be
viewed
18. DP & Settlement Checklist

DP /Settlement Checklist
Score Grade ‐
0 Remarks
1 Knowledge & awareness 8 0
BPM 4.0 version Refered (Link: Harmony > E‐Wise > Process Manual >
a 2
Dp/Demat)
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Awareness of NSE ‐BSE & Settlement date difference (year‐2008 or fin yr ‐
b 1
0809 first 4 digits respectively)
Code N & W for Normal and Trade for trade marked respectively for NSE and
c for BSE D & C Rolling or T for T and settlement no. difference ‐ for usage of 1
backoffice reports
Awareness to check Client Position (Inter settlement/Exchange) (The branch
calls the CSO for information on customer status while this information is
f readily available to them through a software which connects them to the 1
online CSO database) (Link: 196.1.115.150 > Angel broking ltd.> Share reports
> Delivery reports (NSE/BSE) > Clientwise report)
Power of Attorney‐ availability check & IPO Allotment report ( Link:
g 1
196.1.115.150 > POA)
Shares given as Margin/ Security FO‐COMM before updating should not be
h allowed to sell it, Risk in Sell/Buy in FO (Link: 196.1.115.150> Risk 1
Management > RMS Report > Collection)
i Inform client that no Adjustment should be made 1
Pay‐in shortage report sent to CSO before 10:00am and final shortage report
sent before 12:00pm. Records is maintained settlement wise (Link:
2 8
196.1.115.150 > Angel broking ltd.> Share reports > Delivery reports > NSE/BSE
Delivery report>Statements > Pay‐in Reconciliation)
Pay‐out shortages informed to client before 10:00am and records of call the
maintained in excel with time of call (Link: 196.1.115.150 > Angel broking
3 8
ltd.> Share reports > BSE/NSE Delivery reports > NSE/BSE Delivery report >
Shortage report > Client pay‐out New)
4 Auction 5 0
To check if the Branch informs the customer of the Auction procedure‐ 7%for
internal close‐out given to customer (Note:‐ currently the customer is not
a 3
informed by the Branch and if charged when the T+2 deliverables not met and
then the dissatisfied customer is transferred to the CSO to the deal with it)
Auction debit/credit is intimated to client and records maintained for the
same. Auction bill is printed and sent to clients (Link : 196.1.115.150 > Angel
b 2
broking ltd.>Shares Reports à Printing > BSE Contract cum Bill V2 & Shares
Reports à Printing > NSE Contract cum Bill V2)
Pay‐out is marked after checking client ledger in RM. Records maintained for
the clients to whom pay‐out marked (Link: 196.1.115.150 > Angel broking
5 5
ltd.> Share reports > Delivery reports > BSE/NSE Payout request & BSE/NSE
Payout Approval)
6 Corporate action 8 0
Default Pay‐out is give to clients before the record date as per the corporate
a action list forwarded by CSO fortnightly subject to risk (Link: 196.1.115.150 > 3
Angel broking ltd.> Share reports > Display > Corporate action)
The branch is informing the customer about the Rights/Buyback issue for the
b 5
shares he holds with Angel as per the details provided by CSO. Letter to be
taken from the client if interested [ MIS to be maintained on the calls made to
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clients ]
Check list for Observing the DP process at the Branch
7 DIS 10 0
Delivery Instruction Slips‐ Originals to be couriered to CSO regularly (DIS
a pending to be sent to CSO needs to be NIL) Link: http://196.1.115.150 – 3
depository POA report ‐ DIS Report
The Delivery Instruction Slip should be dully filled in and signed by all the
accountholders and if there is any correction/change in Delivery Instruction
b 2
Slip, all holders should sign it for corrections in all the relevant places. Date
and time stamp, initial is affixed on original & client copy
DIS is scanned and forwarded through Crossnet (Link: http://196.1.115.150 >
c 1
Depository Participant > Settlement> Slip Scan)
Check availability of the DIS book at the branch and how proactively the
branch exec calls the customer to get the signatures and get the forms filled
d up. (branch should confirm/acquire mobile/contact number of the customer 1
when accepting such request) (Link: http://196.1.115.150 – depository POA
report ‐ Slip stock)
e Availablity of "Best effort stamp" & awareness of off market slip compliance 3
8 DRF process 10 0
In case of HUF / Corporate accounts, kindly ensure the seal of HUF / Corporate
a is there on DRF. Verification of name of client in DP A/c & name appearing on 1
the certificate surrendered for Demat
Ensure that, the scripts which are eligible for dematerialization are only sent to
CSO for further processing. The details of the scrips which are under Demat
b are available in Crossnet as well as on www.cdslindia.com (New Link : 2
196.1.115.150 > Risk Management > D.P. > DRF Inward > List of Vanishing
company)
Ensure before dispatch, the DRF copies sent to CSO should be filled in
completely and signed by all accountholders, also Ensure that the name
c appearing on the certificate surrendered for Demat should be in the same 2
order as appearing in the DP account. Verify the account holder's signature
with our DP system‐ Crossnet
Inward of the DRF done regularly & DRF details checked. (Link: 196.1.115.150
d 5
> Risk Management > D.P. > DRF Inward > DRF Inward Register)
BCCD CDSL Compliance requirement (5 marks each for process owner and
9 10
back‐up)
Inward/Outward Register & POD's maintained for Documents forwarded to
10 CSO/Client and Hand Delivery of DIS Booklet/DRF/AOF given to Clients (CDSL 10
Compliance requirement)
11 Others 10 0
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a Process Training & Test 1
b Back Up ‐ name of the employee 2
DP Agreement between Sub‐Brokers using Crossnet ‐ (Sub‐brokers &
c 1
Franchisee) Compliance
Client ID mapin proof /Modification request details record maintained with
d 1
the branch
DP‐Settlement training provided to SB's/Clients on usage of back office utilities
e 5
and reports
12 DP Service Board 3
13 DP E‐statements promotion (ratings as per no. of clients registered) 5
Total 100 0

Grades Scores
A + 90 to 100
A 80 to 89
B+ 70 to 79
B 60 to 69
C 51 to 59
D </= 50
(Updated on 17/11/2008)
Help lines:
Name Department Location Contact No.
Mr. Saurabh Bhoot AVP – DP Settlement Akruti 2835 8800 – 390
Mr. Vilas Naram Asst Manager – DP Akruti 2835 8800 – 551

Settlement
Mr. Jagannath K DIS Akruti 2835 8800 – 583
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Mr. Dipak Sawant DP Akruti 2835 8800 – 580
Mr. Nilesh P DRF Akruti 2835 8800 – 581
Mr. Anil Lolap Pay‐in Akruti 2835 8800 – 565
Mr. Nitin H Pay‐out Akruti 2835 8800 – 562
Mr. Pradeep M Auction Akruti 2835 8800 – 552
Mrs. Bharti Kambli Collateral Akruti 2835 8800 – 560
Mr. A. Arockiam Corporate Action Akruti 2835 8800 ‐ 205
Mrs. Aparneswari N Asst Manager – QA Premier 30817400 – 290

House
_____________________

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CHAPTER – VII
Banking Operations

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CHAPTER COVERAGE

1. Introduction

2. Banking operations at branches

3. Cheque bouncing procedure

4. Essential reports to be viewed by the branches

5. Process for requesting for a pay‐out

6. The Bank Reconciliation Policy

7. The policy for Inter Segment Fund Transfer

8. Exhibits related to banking

9. Annexures

10. Banking Checklist

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1. Introduction

The ensuing pages contain a list of procedures which should be followed
by the Branches in relation to Banking Operations. The employees of

the Branches are expected to ensure compliance with these laid down
procedures.

Any deviation from the laid‐down procedures would require prior

authorization of the Head of Operations ‐ CSO.

In order to ensure compliance with these procedures it is paramount that

the employees of the branch understand the functioning of the Back
office software, with reference to banking operations.

Hence we also present herewith the functioning of Web‐enabled
Centralized Software, which would help in ensuring compliance with the

procedures.

The various steps by which a Branch can access the Web enabled back
office Software are also explained.

Every Branch is first and foremost allocated a unique User Id and
Password that is private, confidential and distinctive.

The Branch can thus access the Back Office Software at any time desired
by it, as the software is accessible 24 Hours a Day, 7 Days a Week.

2. Banking operations at branches

2.1. Bank account opening:

In case local branch of existing bank is not present in the area of Angel’s
branch, then that branch should recommend local Bank having strong
presence in their location, co‐ordinate the account opening process with
Bank and CSO to ensure speedy opening of the Account.

2.2. Collections:

On receipt of Cheques from Clients/Sub‐brokers:
• Ensure that Client Details have been mentioned at the back of the
Cheque.
• Promptly pass receipt entries in the system for Cheques received ‐ as
per Exhibit A.1 to A.8.
• Duly number the Pay‐in Slip and save it date wise. (On request from
the CSO, promptly submit a copy of the same.)

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• Bank Cheques in High value clearing, wherever applicable.
• Promptly deposit the Cheques in the Bank. (Cheques received from
clients
should be deposited only in Client Bank account).
• Ensure that Post‐dated cheques & Blank cheques from clients are
noted separately and reviewed by a responsible person. The same
should be kept under lock and key.
• Ensure that all 3rd party cheques received are backed up by the
necessary authorisation – as per Annexure 1
• For Pay Orders, verification is required to see if they are made from
client’s account only.

) Instruct Sub‐brokers, who are directly depositing Cheques in the Bank, to
promptly
intimate the Branch (Annexure.2) of the same, and submit the deposit
slips with the
branch or e‐mail the details in prescribed format

2.3 Online funds Pay –In
What is online funds pay‐in:
Client logs into Angel Website à goes to Funds – Funds Pay In à Enters
Amount à Selects
Segment à Submits à Selects bank where he has a/c from drop down à
Submits à Logs into
bank internet site using his ID/Pwd à Continue/Confirms transaction à
Acknowledgement of
payment from Angel website.

Process at CSO:
Every 15 minutes pay‐in banking team downloads client fund transfer data
and posts the
entry in client ledger. In case of query/issue, CSO will coordinate with
vendor and resolve
the issue.

Benefit to Angel:
1. Money comes into Angel real time – there is no cheque deposit/return,
clearing time,
cost of collection etc
2. Credit is given to customer real time
3. There is no Reversal issue for the client

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Process of Online funds Pay –In

1. Customer logs into Angel Web site
2. Clicks on E‐Broking
3. Clicks on Back Office

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) Click on “Angel Broking Ltd” (for example, other segments can also
be clicked to get into relevant screen)

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) Enter User Name & Password

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) Click on Funds – Funds Pay‐In

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149

) Enter Amount

) Select Segment from drop down

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150

) Select Bank from drop down where client has his/her bank account

***We currently give this facility to the clients having accounts with the 11 banks listed in
the drop down. More banks would be added in due course.
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) Select Bank and Click on Submit

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) You are re‐directed to selected bank web site

) Enter Customer ID/ Internet banking user ID

) Enter IPIN/ Internet banking password

) Click on ‘Log In’

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) Select Bank account from drop down

) Click on ‘Continue’
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154

) Check Pay‐In details

) Click on ‘Confirm’

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155

) You are re‐directed back to Angel web site for acknowledgement of payment
which can be saved/ printed for records

***Please wait for the above acknowledgement screen shot to be displayed since this
completes the transaction
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) In case of Cheque Return of Party:

• Prepare list of Client‐Wise Cheque Returns and monitor the recovery.
• Follow “Guidelines to deal with cases of Clients defaults” as per Branch
Compliance Manual.

) Squaring ‐off process, where collections are not coming‐in, to be adhered to,
with proper procedures and documents.

) Where clients are maintaining a running account, it should periodically reach
zero level. Monitoring required.
) Monthly confirmation of running account must be obtained from clients.

2.4. Bank reconciliation:
) In case a Branch has authority to make entry in the Bank Book, ensure that:
• Bank Books have been updated daily.
• Bank Reconciliation has been completed daily.
• Queries/Pending issues on Bank Reconciliation has been resolved promptly
and pending queries followed up promptly.
• In respect of Local Bank:

All bank statements up to previous month have been received / collected from
the Local Bank, preserve copy at branch and promptly submit original to CSO.
) Check ‘Suspense Reco’ in Back office daily, follow up and update Client details
for Cheques deposited by the branch /sub‐broker and the entries lying in the
suspense a/c due to some error.(Exhibit. D.4 to D.6)

) Ensure compliance with Internal Circular on Bank Reconciliation Policy.

2.5. Payments:
) Ensure that the payout is marked only after ascertaining clients’ risk &
position.
) Ensure that all marking for pay‐out of funds is done within the stipulated time,
i.e. 10.00 am to 1.30 pm (for pay order /DD) and 10.00 am to 2.30 pm (for
cheques and manual requests).
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) Branch should ascertain clients’ risk & position before payout cheques are to
be released / delivered.
) On receipt of Client’s payout Cheques from Banks/CSO, hand over to the
clients/sub‐brokers as soon as possible.
) All stale cheques have to be cancelled and promptly sent to CSO.

2.6. Online funds Payout for clients having accounts with HDFC & ICICI

Salient features of online payout:
) Reduced time of credit of payout amount – clearing time eliminated
) Client need not go to the bank to deposit payout cheques
) Extended time for marking payout – up to 4.30 AM for same day credit
) Client can mark payout at his convenience
) Online Acknowledgement of payout marking
) Acknowledgement on email on payout marking and also in case the payout
amount has changed due to position taken by client post marking payout
) Completely automated process
) Branch need not prepare and send excel sheets in specific formats for online
transfers of payout

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2.7. Inter Segment Fund Transfer:
) Send Fund Transfer requests to CSO via E‐mail/Fax in the specified format
(Annexure.3), ensure CC has been sent to RM, Accounts and relevant Branch
Head.
) Fax/Courier duly signed Consent Letters (Annexure.4) to the CSO for Fund
Transfer requests above Rs.300,000/‐ and for transfers within Family member
accounts.
) Preserve all original Consent Letters at the Branches, so that the original copy
can be retrieved whenever required.
) Ensure Compliance with Internal circular on Inter Segment Fund Transfers.

3. Cheque bouncing procedure:
Legal notice to a client, for a cheque bouncing case, is sent from the Legal
Department at CSO. For a Legal notice to be sent, the following steps are to be
followed:
) The Cheque and the Bank memo in original have to be sent to the Legal
Department, CSO.
) If the cheque is already with CSO, proper instructions along with all details of
the client and the cheque have to be sent to CSO.

) The Legal notice has to be sent within 30 days of Bank memo.
) In case the memo has become more than 30 days old, the cheque has to be

presented again in order to get a fresh Bank Memo.

) The branch has to inform CSO about the progress made with the client after

issuance of the notice. Also, a legal case will be filed in the courts only after the
branch has requested for the same.

4. Essential reports to be viewed by the branches

4.1. Accounts Reports:
i) Cash Book: To view the petty cash entries pertaining to respective
branches(Exhibits B.1 to B.3)
ii) Bank Book: To view the collection/payments made by/to clients for each
individual Branch. (Exhibit. B.4)
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iii) General Ledger: To view the SB/client deposit (05/30 series respectively) for each
individual branch. (Exhibit B.5)

4.2. Party Ledger:
To view the details of the transactions done by the clients i.e. collection, payment,
bills and JV’s (for each individual branch). Refer exhibit B.6
5. Process for requesting for a pay‐out
There are two methods for requesting for a pay‐out:
i) Through CMS: The branch can mark a pay‐out request through the link
‘cheque pay‐out marking’ under the RM link (Exhibit C).
ii) Manual Request: This request should be made in the format given.
(Annexure 5)
iii) Online funds Pay out for clients having accounts with HDFC & ICICI Bank:

Salient features of online payout:
) Reduced time of credit of payout amount – clearing time eliminated
) Client need not go to the bank to deposit payout cheques
) Extended time for marking payout – up to 4.30 AM for same day credit
) Client can mark payout at his convenience
) Online Acknowledgement of payout marking
) Acknowledgement on email on payout marking and also in case the payout
amount has changed due to position taken by client post marking payout
) Completely automated process
) Branch need not prepare and send excel sheets in specific formats for online
transfers of payout

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Process of Online funds Pay –out
• Customer logs into Angel Web site
• Clicks on E‐Broking
• Clicks on Back Office

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) Click on “Angel Broking Ltd” (for example, other segments can also be clicked to
get into relevant screen)

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) Enter User Name
) Enter Password

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Go to “Funds”
Go to “Funds Pay‐Out”

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) Mark payout in eligible segment

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) Click on “Payment Mode: By Funds Transfer”

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) Registered bank Account number will be displayed automatically in the
drop down

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) Select registered bank account number and click on “Submit”

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When the customer is marking payout for the first time using online mode
after registration of account number by Payout team at CSO, above
verification screen will be displayed
) Client has to enter the bank account number for which he has
requested registration to CSO for verification

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) Enter Account number requested for registration

) Click on “Submit”

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) In case the account number requested for registration and the account number
entered by the client in the verification box matches, this pop up will be displayed

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) Client has to verify the payout marked by him segment wise and click on “I Accept”
for payment processing by Angel or “Reject” for non processing

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) On clicking “I Accept”, the above acknowledgement screen is displayed
which the client can “Print” for records

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) In case the client is not registered for online payout mode, the above screen will
be displayed on clicking Funds Æ Funds Pay‐Out

The client would need to send cancelled copy of cheque/copy of bank statement from
the HDFC or ICICI account that he wants to register for payout.
The document can be sent either as a scanned image to bankingqueries@angeltrade.com
with the subject line as : <Client Code> ‐ Cancelled copy of cheque/bank statement for
payout through online funds transfer registration.
Alternatively, physical document can be sent to Payout team at CSO‐Akruti
Please Note:
) Currently online payout mode is available only for clients having bank
accounts with HDFC & ICICI Bank

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) Clients who have registered HDFC/ICICI bank accounts at the time
of account opening will by default have these accounts in the drop
down when they login for the first time. An automatic pop up will
be displayed for them to verify this account number, in case the
account number is incorrect, they need to send a cancelled copy of
cheque/copy of bank statement to CSO in hard or soft copy for
registration. In case wrong account number is verified, the payout
would be rejected by the bank.
) Marking done till 4.30 AM will be processed on the same working
day by around 1.00 PM
) Marking done from 4.31 AM onwards will be processed the next
working day by around 1.00 PM
) In case a client is registered for online payout, the credit would go
into respective ICICI/HDFC account even if branch marks payout for
the client. Cheque would not be processed for such clients
) For activation of online payout facility, the client has to send a copy
of cancelled cheque/copy of bank statement from his HDFC/ICICI
account to payout team at CSO either by email or by post/courier
(refer instruction on payout screen shot on previous page). Email
needs to come from the registered email ID of the client in KYC
records. In case of bank statement, address must match with our
KYC records
) For deactivation also, he needs to send a email/written request to
payout team at CSO with reason for deactivation
) In case of multiple HDFC/ICICI bank accounts, all such registered
accounts will be displayed to the client on the payout marking
screen on clicking Payout mode: By Funds transfer
) In case the client has registered multiple HDFC/ICICI bank accounts
with Angel for online payout and the branch marks payout for such
a client, the payout amount by default would go to the bank
account in which the client took the last payout himself using online
mode.

6. The Bank Reconciliation Policy
Please Refer To The Bank Reconciliation Policy – Internal Circular As Below
Dear All,
As you are all aware of the problems faced by most of the branches, as well as sub
brokers and ultimately by the client, concerning reversal of the Cheque receipt entry,
due to non receipt of credit by us in the bank account. We reverse the cheque receipt
entry after 7 days if we do not receive the credit in the bank account. This may occur
because of the following reasons:
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) Cheques deposited in a particular segment, but entry passed in another
segment.
) Cheques deposited in a particular bank, but entry passed under another
bank’s code.

) In case of combined cheques deposits, where we deposit more than one
cheque in a single slip. In this case, we get single credit in the bank for all the
cheques deposited in that slip and we are unable to assign the credits to
different clients.

) Cheques entries are passed in the books without depositing the cheques into
the bank.

) Mentioning the incorrect details in the pay‐slip while depositing the
cheques, like incorrect Account Number, Company Name etc.

) Error on the part of the bank to provide timely credit.

In all these cases, as mentioned earlier, either we will not receive credit in the
same segment, or will receive credit in another segment, or we will not receive
the credit at all, or the bank may hold it in its suspense account for lack of
appropriate details.
To avoid these cases, we have provided one link in our Inhouse System (Risk
Management link) section, Accounts Utility ‐> Bank Reconciliation ‐> Reco > 5
days; in this link we can see the pending entries for which we have not
received the credit for more than 5 days in the Bank. In that link there’s also
one option called Remarks, to put the necessary remark. After the remarks
have been entered, at CSO we will give the necessary effect to the respective
entries.
As a matter of Policy, CSO will reverse the entry after every Sixth Day from the
date of entry, if we do not receive the credit in the bank or no proper remark
has been given in the Bank Reco Link. For e.g. In Bank Reco report dated
05/10/2008, we can see the cheques deposit entry till 04/10/2008. Any entry
pending for more than 5 days i.e. till date 30/09/2008, has to be checked and
accordingly remarked on by 04/10/2008. On 05/10/2008, after verifying the
remark, CSO will give the necessary effect and CSO will reverse the entry in
case of no Remark.
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However following points are to be noted:
) Since the link is updated and available for you to view at any time, no further
communication will be sent to the branches or to the sub broker for reversal
of entries either by E‐mail or Telephone.

) All client queries in this respect have to be handled by the Branches only.

) In case of Outstation cheques, relaxation of another 5 days will be given.

) Also ensure that you get acknowledgement from the Bank on the Pay‐in Slip
copy, which aids us in taking up the matter with the Bank in case of any
issue.

Hope this will be agreeable to all and we expect your kind Co‐operation in
this procedure.
7. The policy for Inter Segment Fund Transfer
To,
The Branch Heads / Channel Partners/Sub Brokers
Dear Sir,
Sub: Inter‐Segmental Fund Transfers
This is with regard to the procedure to be followed for Inter‐Segmental
Transfer of Funds. Henceforth, all are requested to follow the procedure
mentioned below:
A ‐ For Transfer over Rs.3, 00,000/‐ :
) The request has to be sent as per the branch request format (attached) by
email, to RM and Accounts, with a copy marked to the Branch Head.(Annexure
3)
) The copy of consent letter from the client, in the specified format (attached),
has to be sent separately i.e. faxed or couriered (Annexure 4). The same has
to be duly signed by the client and approved by the Branch Head.

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B ‐ For Transfers below Rs.3, 00,000/‐ :
) The Branch requests forms, if sent by e‐mail, have to mark to the RM with a
copy to Branch Head.
) The Branch requests forms can also be faxed to Accounts.

Other points to be noted:
) All originals are to be preserved at the Branches, so that the original copy can
be retrieved whenever required.
) Before forwarding the request to the CSO, please ensure that the requests are
properly dated and signed by the client. Please verify the signatures if possible.
) Care is to be taken that only credit balances will be transferred and, further,

that the transfers do not result in a debit balance.
) Care should be taken to see that there is some logical basis for the transfer
requests, i.e. say, either the entire credit is transferred against the debit
balance in the other segment, or credit available to the extent of the debit in
the other segment should be transferred or a round figure should be
transferred from one segment to another.
) Please send requests of funds transfers of clients mapped to your branch only.
All are requested to take cognizance of the aforesaid.
Thanking You,
For Angel Broking
Head – Operations
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8. Exhibits related to banking

Angel Back‐Office:
Exhibit A.1

) To begin with, Branch should access Angel Back office by going to our Web Site
at www.angelbackoffice.com. (Exhibit A.1)
) Select the relevant Company, e.g. Angel Broking Ltd, for the purpose of logging
into the system.

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User Login:
Exhibit A.2

) On selecting the Company, the screen is opened. (Exhibit A.2)
) Enter the distinctive User Id and Password allotted to the Branch, in order to
view the next screen.

(Please note: Viewing rights shall be restricted to those allocated to the
Branch)

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BSE Capital Market Back – Office:
Exhibit A.3

) On entering the User Id and Password, the above screen is displayed. (Exhibit
A.3)
) This is the main screen through which all subsequent Reports/Masters can be
accessed, depending on the rights allocated to the Branch.

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Voucher Entry:
Exhibit A.4

) In order to pass Receipt entries for Cheques Deposited in the bank, select
Finance Transactions → Entry Transactions → New Voucher Entry.
) The screen as above will be displayed. (Exhibit A.4)

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Exhibit A.5

) Select the Financial Year by clicking on the Drop Down list as displayed in
Exhibit A.5.

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Exhibit A.6
) Select ‘Receipt Bank’ by clicking on the Voucher Type Drop Down list as
displayed in Exhibit A.6

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Exhibit A.7

) Select ‘Bank Book’ by clicking on the Book Type Drop Down list as displayed in
Exhibit A.7

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Exhibit.A.8

) Enter the Bank Code, A/c code, A/c Name, Amount, and Narration in the Fields
as shown in Exhibit A.8

) Click ‘Save’ to update the entry in the system.

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Account Books:
Exhibit B.1

) In order to view the various Accounts Books, select Finance Reports → Display
Reports → Account Book.
) The screen as per Exhibit B.1 will be displayed.

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Account Reports:
Exhibit B.2

) Move cursor to Accounts Reports. The screen as per Exhibit B.2 is displayed
with 3 options: Cash Book, Bank Book, and General Ledger (GL).

) The Branch can select any one of the three options.

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Cash Book:
Exhibit B.3
) If Cash Book or Bank Book has been selected, enter the A/c code in the ‘From
A/c’ Field. On clicking ‘Submit’, the Bank Book/Cash Book is displayed as per
Exhibits B.3 or B.4.

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Bank Book:
Exhibit B.4
) If Cash Book or Bank Book has been selected, enter the A/c code in the ‘From
A/c’ Field. On clicking ‘Submit’, the Bank Book/Cash Book is displayed as per
Exhibits B.3 or B.4.

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Exhibit B.5
) On clicking ‘Submit’ in Exhibit B.3, the GL for the selected Account is displayed
as per Exhibit B.5 for clients of the respective branch.

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Party Statement:
Exhibit B.6
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CMS generation report:
Exhibit C
) The Payout Marking Screen as shown in Exhibit C can be accessed through
‘Risk Management.
) The Branch can mark the Payouts by entering the relevant amount in the
Payout.
) Balance fields for relevant company.

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Cheques deposited but not cleared report:
Exhibit D.1

) The Branch can view Cheques Deposited but Not Cleared Report through ‘Risk
Management’. The screen as per Exhibit D.1 will be displayed.

) Click on the Branch Name to view Sub‐broker‐wise Cheques Deposited but Not
Cleared Report.

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Exhibit D.2

) On clicking Branch Name in Exhibit D.1, Sub‐broker‐wise Cheques Deposited
But Not Cleared report is generated as displayed in Exhibit D.2
) Click on any Sub‐broker Name to view Client‐Wise Cheques Deposited but Not
Cleared Report for the selected Sub‐broker.

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Exhibit D.3

) On clicking Sub‐broker Name in Exhibit D.2, Client wise Cheques Deposited But
Not Cleared report is generated as displayed in Exhibit D.3.

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Suspense Reco:
Exhibit D.4

) Branch should access Sundry Client Reco Report (Exhibit D.4) daily to identify
Cheques submitted to CSO for which corresponding credit entry has not been
passed.

) In order to access Sundry Client Report, select Utilities → Utility Services → In
house Report → Suspense Reco.

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Exhibit D.5

) Enter From – To date, From – To Branch and Click on Show Report. Screen as
per Exhibit D.5 will be displayed.
) Identify the entries relevant to the Branch, and click on the corresponding
Voucher Number.

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Exhibit D.6
) On clicking on ‘Voucher Number’, the screen as per Exhibit D.6 will be
displayed.
) Fill in the relevant fields and Click ‘Save’.

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9. Annexure 1
Format of authority letter for receipt of 3rd party cheques
From:________________________
_____________________________
_____________________________
_____________________________
Date:____________
To,
Angel Broking Ltd.
Angel Capital and Debt Market Ltd.
(Cash & F&O Segment)
Angel Commodities Broking Pvt. Ltd.
(Member of MCX and NCDEX)
Dear Sir,
Sub: Authorization letter (third party cheques)
Ref: Client Code ______________ Name of Client
_____________________________

With reference to the above Trading Account maintained by the above‐named
client with you, and with reference to the payment obligations to yourselves
by the said client, I/WE hereby remit an amount of
Rs. ___________________ vide cheque no. _________________drawn
on _____________________________________________ [Bank] dated
______________favoring _____________________________________, with
my/our full consent and express knowledge that the said amount would be
utilized by yourselves against debit balances of the above named client. I/WE
would have No objection and hereby authorize you therefore. I/WE also agree
that I/WE do not have any right or claims against yourselves on this account.

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Thanking You,
Name and Sign.
(of the third party)
I/WE agree to the above and request you to accept the remittance towards
the debit balances in above numbered trading account
Thanking You,
Signature:
Name:
Client Code:

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Annexure 2
Format for cheques/DDs to be deposited (client pay‐in of funds)
Company:
Bank :
Date :
Pay Into The A/c Of :
Drawee Bank Cheque No. Amount Party Code Party name Segment

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Annexure 3
Inter Segment Fund Transfer:
Branch Request Form
Note: In case of Family Transfer only.
Date:
To,
Angel Broking
CSO,
Mumbai
Sub: Inter‐Segment Funds transfers
Dear Sir,
Name of client To Client From To

From
Sr No Code Code Segment Segment Amount

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We are sending separately the authority letters received from Clients for amounts
over Rs.3, 00,000/‐.
Thanking You
For Angel Broking,
______________ Branch ________________ ______________
Prepared By Approved By
Branch Head

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Annexure 4
Consent letter format
Date:
To,
_____________ Ltd.
Road No. 7, MIDC,
Sub : Request for Transfer of Funds from _____ Segment to _____ Segment.
Dear Sir,
__________) by Rs._______________(Rupees___________________
________________________________) in the ____________________
_________________________________ Segment and credit ledger account
Mr./Mrs/M/s_____________________________________________________
____________________ (client code___________) by the same amount in the
_______________________________ Segment.
express authority.
Thanking you,
Signature : _______________________
Name : _______________________
Client Code : _______________________
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Annexure 5
Format of manual pay‐out request:
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Annexure 6
Family Transfer format
Date: DD/MM/YYYY
To,
Angel Broking
CSO,
Mumbai
Sub: FAMILY JV
Dear Sir,
FROM TO FROM TO
Sr Client
No Code Client Code Segment Segment Amount
1

Kindly do the Needful.
Thanking You
For Angel Broking,
_ _ _ Branch ____________
_ Prepared By Approved By
Branch Head

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Annexure 7
Family transfer Consent letter
Date:
To,
Angel Broking Ltd
Road No. 7, MIDC,
Sub : Request for Transfer of Funds to Angel Broking Ltd
Dear Sir,
I/We hereby request you to kindly debit my/our ledger account (client code __________)
by Rs. _______________ Rupees_____________________________________________
_____________ ) in the Cash Market Segment / F&O Segment and credit my ledger
account / ledger account of my Family member Mr./Mrs/M/s
_____________________________________________________________ (client
code___________) by the same amount in Angel Broking Ltd.
I/We hereby understand that the said amount would be debited in my /our Ledger
account and I/We hereby confirm that we will have no claim whatsoever from Angel
Capital & Debt Market Ltd as the same has been done only on my/our express authority.
Thanking you,
Signature:_______________________
Name:__________________________
Client Code:_____________________
Relation with Client : _____________________
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10. Banking Checklist

Banking Checklist
Are branches following collection process
10
1 laid down
Client details on reverse of cheque/Client
a code on CMS deposit slip 2
Mention correct segment in deposit
slip/cheque and also pass entries in the
b correct segment in BO 2
c Store pay ‐ in slip date wise. 2
Deposit cheques in high value wherever
d applicable. 2
Is the branch making entries in BO on the
e same day of receipt of pay in cheques 2
Are clients making direct deposits (if yes
then zero, if no, then are the entries being
made in BO on submission of stamped 5
deposit slip by bank either physically or
2 scanned images
Are SBs sending original deposit slips to
Branch on daily basis
5
(For remote location SBs it is on weekly
3 basis)
In case of non CMS banks, is the option of
'at par' cheques from nationalized banks
5
being deposited in CMS been tried. Is the
4 option of putting odd figures tried
In case of cheque return, is the branch
following guidelines to deal with defaulting 5
5 clients
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6 Reconciliation 10
Is bank reco done daily (incase Reco is
a handled by Branch) N/A
Are they resolving pending queries and
following the reconciliation policy? (Reco >
b 5 days Link) 10
Does the branch follow cut off time for
7 payout marking 10
10:30 am to 1:30 pm ( Pay order / Demand
a draft) 5
10:30 am to 2:30 pm (Cheque / Manual
5
b instructions)
Is the branch updating payout verifier link
8 in RM before 11.30 am 5
Is the branch maintaining client
acknowledgement for delivery of payout
9 cheques 5
Is the branch informing and retaining
records for such information for return
cheque details to the RM department at
10 the branch 5
Is the branch checking for client risks real
time before delivery of payout cheques (in
cases where the client does not collect the
11 payout cheque on date of issue) 5
Is the branch promoting online funds pay in
using Angel web site and online funds
payout to clients having accounts with
12 HDFC & ICICI Bank 10
Are they maintaining original consent
13 letters in case of Family Transfer 5
Inter‐segment Fund Transfer (ISFT) ‐ are
14 they following guidelines 10
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ISFT requests to CSO their mail / fax in the
specified format ‐ ensure cc to RM / Banking 2
a / Branch heads
For 3.0 lakhs and above are they sending
3
b duly signed consent letter
c Are they maintaining original consent letters 3
Are they ensuring compliance with internal
2
d circular on ISFT dated 22/11/05
15 Process Test & Score 5
16 Other Details
Did the person handling banking in the
branch receive initial training or was
a he/she covered under VNC session.
Is the branch referring to Branch Process

b Manual in case of doubts
Does the branch have back up staff for

c banking
Feed Back or Suggestions for CSO
Total Score 100
Helplines
Mr. Bhavesh Raichura Manager – Akruti (022) 2835 8800 ‐ 106
Operations
Mr. Maheshkrishnamoorthy VP ‐ Operations Akruti (022) 2835 8800 ‐ 460
Mr. Hitesh Thakkar Sr. Executive ‐ QA Prem. House (022) 4035 8600 ‐ 282

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CHAPTER – VIII
Investment Advisory Desk

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CHAPTER COVERAGE

1. Introduction – Investment Advisory at Angel

2. IAD: Pre‐Market Activity

3. IAD: Market Time Activity


5. Other activities

6. Certifications

7. Reading Research reports, sector reports, event
updates

8. IAD Checklist

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1. Introduction ‐ Investment Advisory at Angel
Investment Advisory Desk (IAD) is a unique initiative of Angel to bring Investors and our
Research Services together. IAD assists investors in investing in fundamentally good
companies with a long term horizon in mind. IAD is the face of Angel to its investors
whereby it assists them in achieving their investment objectives. It is a service to guide
investors in all the ups and downs of the market. All the investment‐related queries of the
clients are solved through this channel. It also works as a feedback mechanism for the
Research Team.
Investment Advisory Process Chart

The main functions of the Investment Advisory are:

) Advice ‐based broking business model.

) A timely flow of information from the research team to the clients.

) To advise Investors regarding fundamentally good companies keeping long term
horizon in mind.

) To help clients understand Macro Economic trends and Sectoral / Company specific
developments

) Solving investment related queries of clients on mail, messenger & telephone.

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) To help clients in portfolio restructuring based on sound in‐house research.

) To keep dealers, sub‐brokers, marketing people, branch manager & clients updated on
daily market outlook.

) Regular Investment Seminars / Portfolio Restructuring Camps to educate investors
about the benefits of long term investment in equities to create wealth.

) Helps clients in minimizing risk and maximizing returns.

IAD Manual for Branches
2. Pre Market Activity
) Reading Business News paper , Technical Report, Market Outlook, Derivative Report,
Weekly review :

This activity should be of prime importance for any advisor & should not be ignored in any
circumstances as the advisor needs to be updated on a daily basis. Reading business dailies like
The Economic Times, Business Standard, Business Line, Financial Express etc. should be the
first activity after coming to the office. Also keenly following the global market updates via any
media like television, internet should also be a critical part of the job. One should also read
everyday reports of Angel like Market Outlook, Technical report & Derivative report.
) Attending CSO Morning Tele Conference. ( Gujarati Conference for Gujarat Region)
This activity is done by the CSO Advisory team in order to disseminate the fundamental,
technical, derivative view for that day’s market by teleconference. All major news, events,
global markets updates are discussed & also queries received from branches are solved. This is
the Advisory initiative to disseminate our research views amongst the dealers, Advisors,
Relationship Managers (RMs) and important channel partners across all branches. The
Investment Advisory Desk team reviews the fundamental developments across the world,
analyzes the events in the news and co‐ordinates with the Fundamental Research team to
evaluate the impact of these events on the various sectors and stocks. After this analysis, these
views are circulated amongst the branches through a tele‐conference. The Technical Advisory
team presents their opinion about the market for the day. Derivatives views are also
communicated in this conference. At the end of the conference, an Advisor addresses selected
queries from branches. The queries are received from the branches on the previous evening.
The aim of this conference is to ensure that all Angel employees have the standardized official
view of Angel Research on the developments in the markets. Besides, it also educates the
employees by helping them understand how various events affect the valuation of a stock.
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The English teleconference starts at 9.20 Am everyday (Monday to Friday) & ends at 9.30 Am.
There is also a Gujarati teleconference which is conducted specially for the Gujarat region
from 9.30 Am to 9.40 Am.
The objective here is to disseminate the information in a standardized way across all the angel
branches & the same is expected of the Advisor, when he communicates these ideas to clients
& channel partners. The Advisor has to join this teleconference every day & has to take care of
this dissemination of information.
) Explaining the morning conference discussion, news, events etc. in detail to the RM
and Dealers.
The Advisor can ensure that dealers be present in this teleconference, so that dealers, who
are normally the first point of contact for the clients also are thoroughly updated about the
news, events, views of the respective departments. Also he could, after the teleconference
explain to the Dealers/RM’s anything that they would not have understood & also discuss if
possible some more news that he would have himself read.
3. Market time Activity
) Promoting Angel Top picks Weekly Report and Other daily reports to the clients, sub‐
brokers and Employees. ‐ 1) By mailing these reports. 2) By Telephonic
Conversation 3) By Client Meet

Investment Advisory Desk sends the morning reports, including the Market Outlook, Technical
Report, Derivative Report and the Derivatives statistics to the various employees, clients and
channel partners. These reports are received from the respective departments or culled from
the Angel Back office and then forwarded to the recipients mentioned above.
The Advisor at the branch has to make his own folders in the mail box to disseminate the
reports send to him by the CSO Advisory. He should then send these reports to the recipients,
which may consist of the direct clients, Sub brokers, sub broker clients, prospective clients etc.
He should also send Angel Top Picks to his set of clients, which is a weekly document, prepared
by CSO Advisory & also aggressively promote these stocks. IAD also flashes regular calls to
clients, recommending them to buy a stock that is one of the Angel Top Picks. These calls are
flashed on ODIN, Pandion and also sent to some clients through SMS. The aim of this activity is
to give guidance to clients so that they may buy fundamentally sound companies to build a
strong portfolio.
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Also, he should be responsible for sending Research reports, weekly report, IPO note or any
other reports like Result Updates, Sector report etc to his set of clients. Also periodic meetings
with the clients should be taken up by the Advisor to discuss his portfolio & advise accordingly.
Clients have a number of queries regarding the fundamentals of stocks, corporate action in a
stock, advice on building a portfolio, impact of particular news on a stock etc. This should be
done during the market hours
) Passing Fundamental Calls, Technical Calls & Derivative Strategies to Clients &Sub‐
brokers
Once the market starts he should be in charge of guiding clients, RM’s, dealers on Angel’s
view, & promoting Angel Fundamental calls, technical calls & derivative strategies. He should
call up clients & sub brokers depending on their respective profiles & guide them accordingly.
The stress should be put on promoting only Angel calls & for technical calls, he has to always
mention stop losses & target.
) Client profiling using CRMS Software & Back office. Communicating with clients and
Mapping them to dealers
He should be given the task of profiling the clients as to whether the client is an investor,
trader or an investor‐trader & accordingly should be authorized to map the clients to a an
appropriate dealer.
) Activating Dormant Clients.
Normally a branch has a lot of dormant clients. It should be an important part of the Advisor’s
job to activate dormant clients. Again if dormant clients are activated the credit should be
given to the concerned person else the credit will go to the dealer who just executes the trade
.Hence dormant clients need to be mapped under Advisory person or proper record of the
same needs to be maintained.
4. Post Market Activity:
) Meeting prospective and existing Clients after market hours and explaining them
various investment strategies, stock updates etc:
The marketing team can bring in prospective clients to the Branch Advisor & the advisor inturn
can interact with the client, help him in guiding on his portfolio, can also send his portfolio to
the CSO for restructuring. In this way, the prospective client could be converted into a new
client & Advisor can share the credit with the marketing team.
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He can also arrange to meet existing clients & discuss various investment strategies with him,
assist him in buying & selling of securities.
) Evening Interaction with Dealers and Relationship Manager regarding market news
and daily calls.

This would help in analyzing the success ratios of the calls, views given on that day & act as a
feedback mechanism. It would also be a value adding initiative as a lot of important queries
could come in from the dealers/RM’s which could be forwarded to the CSO Advisory.
5. Other Activity:
) Attending audio conference on Fortnightly Presentation, conducted by CSO Advisory:
This teleconference is again hosted by the CSO Advisory team & the purpose is to explain the
PowerPoint presentation that has been prepared for the fortnightly Advisory Seminar at the
branches.
The Branch Advisor has to join this conference, try to understand it thoroughly & should note
down some important pointers for each slide of the presentation. If he still has any doubts, he
can revert back to the CSO Advisory for clarification.
) Conducting fortnightly presentation at branch on Saturdays and Making MIS of
fortnightly Presentation and queries for morning conference:
This is another activity that goes to promote our Research views amongst our employees and
clients. The IAD team at the CSO prepares a presentation pertaining to the current market
scenario. This presentation contains topics and themes that are relevant to the existing market
environment. They also include concepts that are in the news but are not very well understood
by the general public, e.g. the sub‐prime crisis.
This presentation is given by an assigned person at the branch to the clients. These clients are
invited to attend the presentation by the branches themselves, well in advance. These
presentations are conducted on every alternate Saturday. They serve a number of purposes.
They educate the clients, provide them with another personalized value‐added service and at
the same time, educate our own employees. They also provide these Advisors an exposure to
public speaking, thereby improving their own skills. This activity also improves the knowledge
level of the Advisor & also he has to be remain updated about the queries which the clients
come up with. He can forward these queries, if required, to the CSO Advisory, which inturn can
be solved by CSO Advisory in the morning teleconference.
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The Advisors also have to prepare the MIS of the Clients that have attended the presentation
which consists of Client Name, telephone number, Client code (If existing) & send it to the CSO
Advisory
) Sending client Portfolios to CSO for Restructuring:
An important function of the Investment Advisory Desk is to restructure the clients’ portfolio.
This is a value‐added service offered to clients completely free of cost. Clients, who wish their
portfolios to be restructured, send it to the CSO Advisory through the Branch Advisors or
Dealers. The IAD team analyzes the existing portfolio and gives its recommendations on
individual stocks. These recommendations are based on the view of the Fundamental Research
team. Various other things are also kept in mind while restructuring of a portfolio. For
example, the portfolio should be well diversified and yet not have too many scrips, there
should not be too much exposure to a single scrip or sector etc. While giving a
recommendation to buy particular scrip, the impact on the rest of the portfolio also has to be
borne in mind. Thus, portfolio restructuring is one of the most important and complex function
of the IAD team, aimed at providing the clients full value for their association with Angel.
6. NCFM: The Advisor should at least clear Cash market & Derivative market NCFM module.
7. Reading research reports, sector reports, event updates etc:
Reading would be one of the most important aspects of the job. Importance should be given
for reading research reports, other reports & keeping oneself always updated about the
current market scenario on a proactive basis.
Investment Advisory Checklist
Sr. Activity Activity Timing Status Remarks
1 Pre Market Activity
Attending CSO Morning Tele Conference.
9.15 A.M to 9.30 A.M
A (Gujarati Conference for Gujarat Region)
Explaining the morning conference discussion,
news, events etc. in detail to the RM and 9.30 A.M to 9.35 A.M
B Dealers.
2 Dealing Market Activity
Promoting Angel Top picks, Weekly Report and
Other daily reports to the clients, Sub‐brokers
a As req
and Employees. 1) By mailing these reports. 2)
By Telephonic Conversation 3) By Client Meet

Passing Fundamental Calls, Technical Calls &
b 9.55 A.M to 3.30 P.M
Derivative Strategies to Clients & Sub‐brokers.

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Client Profiling using CRMS Software 1)
c Communicating with client and Mapin of Clients. 9.55 A.M to 3.30 P.M
2) Activating dormant clients
d Activating Dormant Clients. 9.55 A.M to 3.30 P.M
3 Post Market Activity
Meeting prospective and existing Clients after
a market hours and explaining them various 4.30 P.M to 5.30 P.M
investment strategies, stock updates etc.
Evening Interaction with Dealers and
b Relationship Manager regarding market, news 5.30 P.M to 6.00 P.M
and daily calls.
4 Other Requirements
Attending audio conference on Fortnightly
a Fortnightly
Presentation, conducted by CSO Advisory.
Conducting fortnightly presentation at branch
on Saturdays and Making MIS of fortnightly
b Fortnightly
Presentation and queries for morning
conference...
Sending client Portfolios to CSO for
c As req
Restructuring.
NSE Cash
d NCFM
NSE F&O
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CHAPTER – IX

PortfoIio Management Services

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CHAPTER COVERAGE

1. Why should one invest?

2. Portfolio Management Services

3. Portfolio Management Service (PMS) at Angel

4. Key elements of Angel’s PMS

5. PMS operational process flow and research domain

6. Different products in PMS offered by Angel

7. Benefits which investors gain from our PMS

8. Fee structure

9. PMS operational process at CSO

10. Documents necessary for PMS

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1. Why should one invest?

Investment is the process of delaying Current Consumption in favor of
increased future Purchasing Power.

One of the most compelling reasons for people to invest is the prospect of
not having to work their entire Life.

2. Portfolio Management Services:

Managing a portfolio of Investments can be time‐consuming. If one
doesn’t have much time or desire, hiring a professional may be more
appropriate.

Portfolio Management Services (PMS) to investors assists them in
managing their Investments amidst changing market dynamics and
increasing complexities of investing.

Portfolio Management includes :
• Personalized Service.
• Interaction with Fund Manager.
• Regular Feedback and Reports.
• Pro‐active Management of Funds.
• Holdings not impacted by entry/exit of big Investors.
• Can remain liquid (not‐invested) for long periods.

3. Portfolio Management Service (PMS) at Angel

Angel’s PMS provides Discretionary Portfolio Management Services

Follows a disciplined Investment Process.

Adheres to quality Investments.

Limiting any risks associated with Investments.

Provides low Portfolio Turnover (no trading).

Focus on generating Absolute Returns rather than Relative Returns.

Investment Philosophy :
Angel’s Investment Philosophy is based on two important attributes:
• Capital Preservation
• Wealth Creation
Our objective, at all times, is to protect and then expand the client’s Portfolio.

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4. Key elements of Angel’s PMS

Bottom‐up Stock Selection.

In‐depth, independent Fundamental Research.

High‐quality companies with sustainable competitive advantages.

Focus on companies with a certain size & scale.

Disciplined valuation approach, applying multiple valuation measures.

Medium to Long‐term vision, resulting in low portfolio turnover.

5. PMS – Operational process flow

Fig.1

Research Domain

Fig.2

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6. Different products in PMS offered by Angel

The five products offered by Angel’s PMS are:

1) Angel Oyster
2) Angel Bluechip
3) Angel NRI
4) Angel Growth
5) Angel Equity & Derivatives Fund

6.1. Angel – Oyster
Bottom‐ up concentrated portfolio, with emphasis on Value Investing.

Objective:
To generate Wealth on a consistent basis, rather than outperform by
taking higher risk.
Early identification of stock, to ride through the entire Investment Cycle.

Investment strategy:
A blend of Value and Growth stocks.
Ensuring a balanced Portfolio, with a relatively medium risk profile.

Investor profile:
Safety of Capital is of utmost importance.
The scheme would be suited for Investors having a long term
perspective.

6.2. Angel Bluechip:
Bottom‐up concentrated portfolio, with Emphasis on GARP (Growth at
Reasonable Price).

Objective:
The scheme will seek to achieve returns through broad‐based
participation in equity markets, by creating a diversified equity portfolio
of medium to large capitalized companies.

Major proportion of large and medium capitalized stocks.
Medium capitalized stocks not to exceed 25%.
Sectoral exposure not to exceed 25%.

Investor profile:
The scheme would be suited for investors with medium to low risk
appetite, having long term perspective.

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6.3. Angel – NRI
Long term upside of the INDIA Growth story, by diversifying across the
major themes.

The Angel NRI:
NRIs will have to open an NRE / NRO Savings Bank A/c at the
appropriate designated branch by RBI.
NRIs will have to open a Portfolio Investment Scheme (PIS) Account at
the appropriate branch designated by RBI.
In order to invest in the Secondary Markets in India, NRIs need to obtain
RBI permission.

[Note: Portfolio Investment Scheme(PIS) is a scheme of the Reserve Bank
of India (RBI) defined in schedule 3 of Foreign Exchange Management
Act 2000 under which the ‘Non Resident Indians’ and ‘Person of Indian
Origin’ can purchase and sell shares and convertible debentures of
Indian Companies on a recognized stock exchange in India by routing all
such purchase/sale transactions through their account held with a
Designated Bank Branch.]

6.4 Angel Growth
The objective of the scheme is to generate capital appreciation in the
medium to long term through investments in equities and equity related
instruments comprising of predominantly Mid‐Cap and Small‐Cap
companies.

Focus on growth themes such as Infrastructure, Services, Manufacturing
& domestic consumption.
Overweight on Mid‐Cap and Small‐Cap stocks. However quality Large‐
Cap stocks may also be considered for investment depending on market
conditions.
The scheme will seek to achieve returns through broad based
participation in equity markets by creating a diversified equity portfolio.
The portfolio will however, be overweight on Mid‐Cap and Small‐Cap
companies.
Combination of Top‐Down & Bottom‐Up approaches. Portfolio to
comprise of a combination of growth & value stocks

Parameters Driving Investment Decision:
Over‐weight on Mid‐Cap and Small‐Cap stocks. However, quality Large‐
Cap stocks may also be considered for investment, depending on market
conditions.
Portfolio to comprise of a blend of growth & value stocks. However, the
portfolio shall be overweight on growth stocks.

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The portfolio strives to limit the exposure to any one sector to less than
25% of the portfolio size.

The portfolio strives to limit the exposure to any one stock to less than

10% of the portfolio size.

Investor profile:

The scheme would be suited for investors with a moderate risk appetite.
Recommended investment horizon is 15 to 18 months.

6.5. Angel Equities & Derivatives Fund

Equities & Derivatives:
Objective:
To generate moderate returns by deployment into Equity assets and

partially hedging the portfolio, using options and futures & achieving
this with a margin of safety.

Additionally the funds lying idle would be deployed in arbitrage
between cash and future and /or placed in low maturity debt funds and
low risk F&O Strategies.

Features:
Investments would be in fundamentally strong large cap and Mid Cap

companies having high liquidity in Options.
Partial hedging of open positions would be done by writing options.

Investor profile:
The scheme would be suited for investors with low to medium risk

appetite, having a long term perspective.
Suitable for HNI’s and Corporates, who want to park money for a

consistent Return from the market, even if the market remains flat.

7. Benefits which investors gain from our PMS

Expert and Experienced Portfolio Management Team.

Entry timing for individuals’ scrip's and portfolio construction in phased
manner.

No time involvement from your side, while we focus on delivering
attractive Risk – Adjusted Returns to You.

Wealth Management Solutions.

Dedicated website to view Portfolio Information.

Quarterly account Performance Statements.
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Realized Profit/Loss statement for tax purposes.

Dedicated Customer Service Desk.

8. Fee structure:

Two part fee structure:
The following charges will be applicable.

1. Asset Management Fees: 2.00% per annum on daily average NAV &
charged to the account on a quarterly basis.
2. Brokerage: 0.5% per transaction + STT + other charges as applicable.

Performance Fees: No profit sharing

Returns calculated after accounting for all charges.

9. PMS Operational Process at CSO:

Operational Process:
Clients fill the PMS ‐ KYC form.
Form is verified by the department with all the necessary formalities.
Data entered into the back office software.
Form sent to the KYC department for the client code generation.
After receiving the client code, the buying & selling on behalf of clients is
done.
Clients’ Welcome Letter is sent, along with the investor’s User ‐ Id &
Password, by mail.

10. Documents necessary for PMS

[All documents have to be self attested by clients]
For individuals ‐ Indian residents:
Address proof
Identity proof
PAN card copy (all Holders)
Latest Bank statements (1st Holder)
PMS ‐ KYC form.
Demat A/c Proof.

For HUF clients
Similar documents as in the case of individuals (Karta’s Name):
Declaration of all members by Karta

For NRI’s
NRE / NRO Savings A/c details
PIS account details
Trading A/c (NSE / BSE) at ANGEL

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Demat account proof at ANGEL
Passport copy of all the holders
Copy of VISA / IQAMA or any other permit
PAN card of all the holders.

For corporate
True copy of Memorandum & Articles of Association
True copy of Board Resolution. (on Company’s letter head)
Annual Reports with Profit & Loss A/c and Balance Sheet for last two
Years
Income Tax Returns for last two Years
PAN Card – Company
PAN Card – All Directors / Authorized Signatories
Latest Bank Statements of the Company
List of Shareholders holding ( > 5%)
Form No. 32 (in case of change in Directors)

For partnership firm:
Certified copy of the Partnership Deed
PAN cards (Firm & Partners)
Demat proof of the joint dominating partner
Bank Statement of the firm & the dominating partner,

For trust:
Trust Deed
Certificate of Registration
Pan Card of all Trustees
Bank Proof of Trust
Address proof of Trust
Income Tax Returns of the trust for last two years.

Helplines


Ms. Lata Gandhi Assistant Manager– Acme (022) 4040 3800 ‐ 308

PMS operations

Mr. Bhavik Zaveri Senior Executive Executive – Acme (022) 4040 3800 ‐ 307

PMS

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CHAPTER – X
Initial Public Offer (IPO) & Mutual Funds (MF)

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CHAPTER COVERAGE

1. What are Mutual Funds ?

2. What are the benefits of investing in Mutual funds?

3. Why MF with Angel?

4. Back‐end support: Angel Back office (MF)

5. What is Initial Public Offer or IPO?

6. Hierarchy for an IPO

7. About Angel’s IPO Distribution

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1. What are Mutual Funds?

Mutual Funds are funds operated by an investment company, which

raises money from the public and invests in a group of assets (shares,
debentures etc.), in accordance with a stated set of objectives.

It is a substitute for those who are unable to invest directly in equities or
debt because of resource, time or knowledge constraints.

Mutual Fund is the common pool of money into which investors place
the contributions that are to be invested in accordance to the stated
objective.

In India, the mutual fund is constituted as a trust and the investor
subscribes to the “units” issued by the fund.

Mutual Funds are usually long term investment vehicles, though there
some categories of mutual funds, such as money market mutual funds

which are short term instruments.

2. What are the benefits of investing in Mutual Funds?

There are several benefits of investing in a Mutual Fund:

Small investments: Mutual funds help you to reap the benefit of returns,
by a portfolio spread across a wide spectrum of companies with small
investments.
Professional Fund Management: Professionals with considerable
expertise, experience and resources manage the pool of money collected
by a mutual fund. They thoroughly analyze the markets and economy to
pick good investment opportunities.

Diversification: An investor with limited funds might be able to invest
in only one or two stocks/bonds, thus increasing his or her risk.
However, a mutual fund will spread its risk by investing in a number of

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sound stocks or bonds. A fund normally invests in companies across a
wide range of industries, so the risk is diversified.

Professional expertise: Fund managers in mutual funds are
professionals who track the markets on a minute‐to‐minute basis. With

their mix of professional qualifications and market knowledge, they are
better placed than the average investor to understand the markets.

Transparency & Liquidity: Mutual Funds regularly provide investors
with information on the value of their investments. Mutual Funds also
provide complete portfolio disclosure of the investments made by

various schemes and also the proportion invested in each asset type.

Choice & Convenience: The large number of Mutual Funds available in

the market offers the investor a wide variety to choose from. An investor
can pick up a scheme depending upon his risk/ return profile.

Relatively inexpensive: When compared to direct investments in the
capital market, mutual funds cost less. This is due to savings in
brokerage costs, demat costs, depository costs, etc.

Flexibility: Through features such as regular investment plans, regular
withdrawal plans and dividend reinvestment plans, you can

systematically invest or withdraw funds according to your needs and
convenience. These are called Systematic Investment Plans (SIP) and

Systematic Withdrawal Plans (SWP).

Regulations: The mutual funds are registered with SEBI and they
function within the provisions of strict regulations designed to protect

the interests of the investors.

3 Types and schemes of Mutual Funds

Type of

Mutual Fund
Schemes

Structure Investment Special

Objective Schemes

Open Ended Growth Funds Index Schemes

Ended
Close Income Funds Industry specific
Schemes

Interval Funds Balanced Funds Sectoral

Money Market

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A) On the basis of Structure:

1) Open‐ended funds: Open ended funds are ones that sell & repurchase units at
all times. The Asset under management keeps fluctuating depends on investors
buying or selling units. An AMC might stop selling units if the fund size becomes
too big to manage. However repurchase of units is done at all times.

2) Close‐ended funds: Close ended funds are one that makes a onetime sale of
units. After the offer closes CEF’s do not let the investors buy directly from the
fund. To provide liquidity to the investors, these funds are traded in the stock

markets. Sometimes the fund house also offers buy backs at regular intervals.

3) Interval funds: These funds combine the features of both open‐ended & close‐
ended funds wherein the funds is close‐ended for the first couple of years and
open ended thereafter. Funds having fixed dates of buying and sales.

B) On the basis of Investment objective:

1) Growth Funds/ Equity funds: Funds that invest in equity shares are called
equity funds

2) Income /Debt funds: These funds invest predominately in high‐rated fixed
income‐bearing instruments like bonds, debentures, government securities,
commercial paper and other money market instruments

3) Balanced fund: These funds invest both in equity shares and fixed income‐
bearing instruments (debt) in some proportion.

4) Money Market funds / Liquid funds: These funds invest in high liquid money
market instrument.

C) Special Schemes

1) Index funds: These funds invest in the same pattern as popular market indices

like S&P 500 and BSE index

2) Industry Specific scheme /Sectoral funds: These funds invest primarily in
equity shares of companies in a particular business sector or industry.

D) Other Schemes:
1) Diversified funds: These funds invest in companies spread across sectors.

2) Tax saving funds: These funds offer tax benefits to investors under the Income
Tax Act Sec 80c.

3) Gilt funds: These funds invest in Central and State Government securities.

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4) Offshore funds: These funds facilitates cross border fund flow. They invest in
securities of foreign companies. They attract foreign capital for investment.

4. MF Sales process flow

Meet the Prospect client

Understand his Investment
A
requirements

Provide Acknowledgement
Portfolio Recommendation

Portfolio Report

No Investment decision
on Consensus Basis
Track Portfolio on

regular Basis
Concentrate on Yes
other New Investors
Form Filling Procedure
Suggest changes /
modifications

Investment more Yes
Promote New
than 50,000.
Investment Ideas
Fill KYC
No

Form Submission with AMC

A B

Collect the Investment amount and

inform him about Entry load to be

levied as per the scheme applied for

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5. MF Application form process flow

Accurate forms filled and
Documents attached

Enter the RM / Employee
Code

Preliminary checks done by No
Back Office, to ensure all
details are entered correctly

Yes
Xerox of Form & Documents for
Official record

Submit Application Form before Cut‐
off Time to AMC

Xerox of the form to be retained and

details to be entered in TR entry

Xerox of Application & Acknowledgement
Copy to be given to the Client.

Mutual Fund Application Form Process Flow (CSO/Branch)

1) Form detail:
a) Distribution information: Check for ARN 39242 number (39242 is Angels code)
Mandatory.
b) Sub‐agent code will be the employee code.
Folio No.: If a client has already invested in any other fund scheme the same Folio no.
can be entered and no need for documents. For fresh Investment all documents need
to be enclosed.
2) Application information: Details to be filled accordingly. In case of a minor investor
the guardian details are mandatory.
3) Mode of holding: Single/Joint/Anyone or survivor
To be ticked accordingly. Cases where more than 1 application detail are filled and
the mode of holding is not specified, it will be considered as joint by default.
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4) Status/Occupation: To be ticked accordingly.
5) Application contact information: Address/Contact no. is mandatory.
6) Bank account details: Account detail is mandatory.
7) Scheme detail: To be ticked accordingly. In case if nothing is ticked, growth option
will be by default selected.

Mandatory Documents to be Attached with MF Application Forms

A For Individual clients

PAN Card Mandatory for all investments; irrespective of amount (w.e.f. 02/07/07).

Joint Applicant’s PAN Card also required. In case of Minor; PAN Details of Guardian
1 should be attached.

In case PAN card is not available; Form No.60/61 or Form No. 49A along with Address
Proof is required to be submitted.

Cheque/ DD in favor of the Schemes / Escrow Account (details given on the
2
application form) in case of MF and IPO respectively

Individual Investor (Investment by POA Holders)

1. Original Power of Attorney duly notarized OR

2. Copy of the Power of Attorney notarized in original by an Indian Notary.

POA document should contain the following details of both the parties to the

3
document :

a) Name
b) Address
c) Signature
In case all holders (including joint holders) of an investment want to appoint a single
person as the POA, name, address and signature of all the holders, besides the POA
holder, should be available in the POA document.

B For Non Individual/Corporate Bodies

1 PAN Card Mandatory for all investments; irrespective of amount (w.e.f. 02/07/07)

Cheque/ DD in favor of the Schemes / Escrow Account (details given on the
2
application form) in case of MF and IPO respectively

3 Memorandum & Articles of Association attested copies

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4 Board Resolution stating they are authorized to invest in MF units / IPO

List of Authorized Signatories whose signature is present on the application
5
form

For Non Individual/Corporate Bodies‐ through Power of Attorney,

Original Power of Attorney duly notarized OR

Copy of the Power of Attorney notarized in original by an Indian Notary.

6 POA document should contain the following details of both the parties to the

document :

1. Name
2. Address
3. Signature

Partnership Firms
Certified True copy of Partnership Deed by duly highlighting the relevant clause

allowing investment in units of Mutual Fund. The certification as “True Copy”

should be in original.

In case of investment through Power of Attorney, original Power of Attorney

duly notarized OR

Copy of the Power of Attorney notarized in original by an Indian Notary.

7
All partners should be executors to the POA and their signatures on POA

should match with signatures on Partnership Deed.

POA document should contain the following details of both the parties to the

document :

1. Name
2. Address
3. Signature

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Karta of Hindu Undivided Family (HUF)
A certified true copy of deed of HUF, original or photocopy originally notarized.
8 A letter signed by all the members to the HUF identifying the Karta of the HUF.

No joint holder is allowed in HUF investment. Such applications to be rejected.

Banks & Financial Institutions
A certified copy of Board / Investment Committee Resolution authorizing the

said investment The resolution should be on the letterhead. If photocopy it

should be attested (in original) by Company Secretary / Director / Authorized

Signatory
9

A certified copy of list of Authorized Officials to make such investment along with the
Specimen signature of Authorized Officials. ASL should be on the letterhead. If
photocopy it should be attested (in original) by Company Secretary / Director /
Authorized Signatory
Certified True copy of Memorandum & Articles of Association / Bye –laws,
including certificate of Registration and provision authorizing the entity to

invest in securities duly highlighted.

6. Why MF with Angel?

ANGEL CAPITAL & DEBT MARKET LTD. (ACDL) is empanelled
with almost all Asset Management Companies (AMCs) to act as a
distributor for the mutual fund schemes offered by them. The AMFI
Registration No. (ARN) of ANGEL is ARN‐39242 which is required to be
affixed on all forms procured by ANGEL, so that the same is covered by
the Registrars processing the transactions.

Most Competitive Sharing Structure:

Our Channel Partners are also offered a very competitive brokerage
structure for the Mutual Fund mobilizations by them, which is in line
with industry practice.

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Advisory ‐Based Website:

All the ANGEL Branches have access to the MF/IPO BackOffice
Software which can be accessed via the Mutual Funds & IPO link in our
Back Office section on Angel website. The User ID and Login Password
are provided to all the branches by the CSO.

This service is not limited only to ANGEL Branches, but is also available
to the Channel Partners and our most valued End Clients as well.

All the relevant data pertaining to IPOs would be uploaded at the CSO
level. The Branches do not have to exercise any function regarding IPOs
at their end in the software. The summary of IPOs and the brokerage
data of IPOs can be viewed by the branches.

Alternatively, the branches can also access this link via
www.angelmf.com.

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Login Screen Appears as Below:
As soon as the TAG of a branch is created, its corresponding Login ID &
Password is created in the MF Back office Software which can be
obtained from our Operations Team at the CSO.

Put your login
ID & password

4. Back‐ end Support: Angel BackOffice (MF)

The MF BackOffice Software is an important value‐added service
provided not only to branches, but also to sub‐brokers and the clients as
well.

Access to the Back Office is via the ANGEL website through a user id &
password, which is provided to the sub‐brokers and clients by their
respective branches.

The module of our Back Office Software for Mutual Funds / IPO is
displayed below. All users can access the software via the Mutual Funds
& IPO link in our Back Office section on the Angel website. The User ID
and Login Password would be provided to all the branches by the CSO.

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The important features of the Software are:

• MIS/AUM Data (Region‐wise, Branch‐wise, Sub‐broker‐wise,
Applicant‐wise, etc)
• Sub broker Details (Addition, Modification)
• Applicant Details (Addition, Modification)
• Transaction Entries of Mutual Funds.
• Reconciliation of Transactions with Feeds Received from Registrars on a
Daily Basis.
• Earning Rates – view for the branches.
• Brokerage Paid to Sub brokers.
• Portfolio of Applicants – Merging & Emailing Directly to Clients.
• NAV History, Dividend History, Factsheets of Schemes and Growth
Calculator.
• Login Management for Branches, Sub brokers and Applicant.

SUB BROKER DETAILS

The menu below is for entering sub‐broker details. The details can also
be edited, in case of change of address, contact no., and details can also
be added. This works as an entire database or MIS for sub‐brokers of all
branches. Each branch & RM can access its respective set of sub‐brokers
only.

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APPLICANT ADDITION

Applicant Addition is a function which will be exercised by all the
branches while creating the MIS / Transaction entries of their new clients
/ applicants. This can be done after completing the TR entries; as also
while making Transaction entries; the applicant, if new, gets
automatically created and his details can be later on updated by retaining
the photocopies of the application forms. It is necessary to ensure that all
details provided by the Applicant on the form are updated in the
software esp. PAN No. and email address as his online welcome letter
and portfolios needs to be sent by us. Like Sub broker Data, even the
applicant details can be modified, whenever required.

APPLICANT, FOLIO & SUB‐BROKER QUERIES

This query master helps the users in tracing out transactions based on the
information available with them ‐ pertaining to applicants, investment
folio no’s or sub‐broker codes or names.

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Applicant Query:

Applicant Merging is an exercise which branches can undertake on a
weekly basis. For e.g. an applicant might apply in two/three schemes
with slight variation in names such as Sheela S. Shetty, Sheela Sadanand
Shetty, Sheela Shetty, and if one is sure that all these three portfolios
belong to one single applicant, then MERGING of Portfolios can be done.

Folio Query:

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Subbroker Query:

APPLICANT MATCHING

This function goes hand‐in‐hand with Applicant Creation and
Transaction Entries. On using this option, a list of transactions appears
on the screens, which are pending for matching them to their respective
applicants. In case the applicant has been created, the transaction can be
matched with the respective client. In cases where the applicant name is
not present, one has to create it and then match the transaction. This way
the portfolio of the applicant is built up. All the transactions pertaining to
one applicant should be matched with the same applicant account.

This function is being done on a centralized basis by our MF/IPO
Operations Team at the CSO. Branches do not have to exercise this
Option

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ADD MUTUAL FUND TRANSACTIONS / UPDATION OF
DAILY MF TRANSACTIONS IN THE SOFTWARE

Transaction Entries have to be done by the branches on a daily basis as
and when the Mutual Fund business is procured by them, through Sub
brokers or Direct Clients. Transaction Entries are necessary to get the
proper MIS / Revenue

Projection and Reconciliation of our Daily Feeds received from the
Registrars (CAMS, KARVY, and TEMPLETON) on a daily basis. These
Daily Feeds are uploaded by the CSO regularly, as soon as they are
received by us from the Registrars.

Separate Options are given for Sub‐broker Business and Direct Business.
Business procured under Branch’s Direct sub‐broker code (ending with
0000) would also come under Sub‐broker Business; whereas business
done under direct ECODES of RM / Employees needs to be added under
Transactions for Direct‐Client.

Marketing Spends, if any committed, should be recorded while doing TR
entries so that amounts can be released against Debit Notes received
from the branches.

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Proper Scheme TYPE should be chosen (Regular / NFO) and Status
(NOR, SIP, STP etc.) from the Options provided.

ADDITION OF PREVIOUS PURCHASES OF APPLICANTS

In case an applicant already has some previous MF purchases, those can
be added so that his portfolio which is being generated by our software
also contains the details and returns pertaining to his earlier transactions.
Pls. note that these previous investments will not earn us any brokerage
and will not add to our MIS/AUM.

This facility is extended to sub‐brokers as well as to the Applicants. In
this way, we would be providing the client with a value‐added service
which helps him to view his consolidated portfolio on one central
window.

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MIS /AUM REPORT

Branches / Sub‐brokers / RMs can view their respective MIS bifurcations
giving scheme‐wise details also. This section should preferably be
viewed by selecting Daily Feed rather than TR Entry, because Daily
Feeds are up‐to‐date as they are received from Registrars, whereas
transaction entries would be done by branches and might not be updated
in case of investments being done directly by clients / sub brokers under
ANGEL ARN – 39242.

Alternatively, even AUM (Assets Under Management) of your respective
Region / Branch can be viewed on this same Menu.

MIS DETAIL REPORT

The MIS Report can also be obtained in a much more detailed manner
which would also give details on the basis of each transaction / business
procured by the branch for a particular period. This Report should be
used to reconcile the TR entries with the Daily Feeds, which are
uploaded by CSO on a daily basis. Daily Feeds are the actual processed
transaction entries (captured under our ARN Code), which are sent to us
by the Registrars on a daily basis. Normally three days’ time is taken for
the Daily Feeds to reflect in the Software, after the day of login of forms
at Registrar.

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APPLICANT PORTFOLIO

This is a very important feature provided by this Software and through
this we can update our clients at regular intervals about the status of
their investments. This portfolio can be viewed by the client using the
Login provided by us. We have also initiated a system in the software,
wherein, as soon as a new applicant is created, the Welcome Letter
containing his Login Details will be automatically mailed to the applicant
(providing the email details are given by the applicant). One can view
the statement as per the holdings, portfolio return, performance, etc.

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FACTSHEETS

DIVIDEND HISTORY

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NAV HISTORY

SCHEME PERFORMANCE

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GROWTH CALCULATOR

BROKERAGE

The brokerage figures of the branches and sub‐brokers (In Amounts, Out
Amounts & Retention) are available in this menu. The data given is
based on actual receipt basis i.e. brokerage received & processed by the
CSO Operation Team.

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LOGIN MANAGEMENT

The login management function provides the branches with the facility
of viewing login id and password for their sub‐brokers and applicants.
Each sub‐ broker / applicant can view only their respective records. It is
advisable that the first password received be reset

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Mutual Fund Check list of Documents before submission

A For Individual clients
In the Application Form following fields are Mandatory to be checked

PAN Card Mandatory for all investments; irrespective of amount (w.e.f. 02/07/07).
Joint Applicant’s PAN Card also required. In case of Minor; PAN Details of Guardian
1 should be attached.
It is mandatory w.e.f. 03/03/2008 that all applicants investing Rs.50,000/‐ and above

in Mutual Funds should be KYC Compliant. The details of KYC Regulations in Mutual
2 Funds are further detailed in this document.
3 Dist/Broker Code to be mentioned as ARN‐39242
Sub broker code allotted to your branch/Sub broker. (same code which you are using
4 for IPO investment.)
5 Investor Name
6 Signature
7 Amount
8 Investor’s Bank details

Scheme Name, Option (Growth/Div.Reinv/DivPayout) properly mentioned
9
10 Cheque ‐ in favor of the Scheme name, properly written & signed

Keep photocopies of all the above documents for office use before submission.
11

B For Non Individual/Corporate Bodies
In the Application Form following fields are Mandatory to be checked
1 PAN Card Mandatory for all investments; irrespective of amount (w.e.f. 02/07/07)
2 Dist/Broker Code to be mentioned as ARN‐39242
It is mandatory w.e.f. 03/03/2008 that all Non‐Individuals investing Rs.50,000/‐ and

above in Mutual Funds should be KYC Compliant. The details of KYC Regulations in
3 Mutual Funds are further detailed in this document.
4 Investor Name
5 Signature
6 Amount
7 Investor’s Bank details
8 Scheme Name, Option
9 Cheque ‐ in favor of Scheme name, properly written & signed
10 Memorandum & Articles of Association attested copies
Board Resolution: stating that it is resolved in the board meeting that we are
11 authorised to invest in Mutual Funds & the limit of investment

List of Authorized Signatories whose signature is present in the application form
12

Take photocopies of all the above documents for office use before submission.
13

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Prescribed Documents (PAN Mandatory) for KYC

For Individual Investors
Proof of Identity:
1. Photo PAN Card
2. In case of Non Photo PAN Card ‐ in addition to copy of PAN Card,
any one of the following: Driving License / Passport copy / Voter ID /
Bank Photo Pass Book.

Proof of Address (any one of the following):
1. Latest Telephone Bill: Landline/Mobile (not more than 3 months prior
to the date of application).
2. Latest Electricity Bill (not more than 3 months prior to the date of
application).
3. Passport copy.
4. Latest Bank Passbook/Bank Account Statement (not more than 3
months prior to the date of application)
5. Latest Demat Account statement (not more than 3 months prior to the
date of application).
6. Voter ID.
7. Driving License.
8. Ration Card.
9. Rent Agreement.

For Overseas Address of NRIs:
Overseas Bank Account Statement (not more than 3 months prior to the
date of application).
Any other document duly certified by local authority in the country of
residence.
In case the documents are in any language other than English, the same
must be translated to English and certified by a Government Authority in
the country of residence or by the Indian Embassy. In case investors
provide more than one address, proofs of both the addresses need to be
provided.

For HUF
Units can only be held in the name of Karta on behalf of the HUF

Proof of Identity (any one of the following):
Copy of PAN Card of the HUF.

Proof of address (HUF)
1. Latest Bank Passbook (not more than 3 months prior to the date of
application).
2. Bank account statement (not more than 3 months prior to the date of
application).

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Alternately, any of the documents listed for proof of address for an
individual can be provided by the karta.

Non individuals (PAN Mandatory)

Companies / Bodies / Corporate (Certified copy of the following):
1. Certificate of incorporation.
2. Memorandum & Articles of Association.

3. Resolution of the Board of Directors authorizing investment in mutual
funds.

4. Power of Attorney granted to its managers, officers or employees to
transact business on its behalf (Authorized Signatories List).

Partnership firms (Certified copy of the following):
1. Certificates of Registration, in case of registered Partnership Firms.

2. Any other officially valid documents in respect of holding a power of

attorney to transact (Authorized Signatories List and resolution /
authority to invest).

Trusts, foundations, NGO’s Charitable Bodies,
Clubs/Mutual Fund Schemes (Certified copy of the following) :

1. Certificate of Registration, in case of registered Trusts.
2. Any other valid documents in respect of holding a power of attorney

to transact (Authorized Signatories List and resolution / authority to
invest)
3. Offer Document of the Mutual Fund Scheme.

Initial Public Offering (IPO)

7. What is Initial Public Offer or IPO?

A corporate may raise capital in the primary market by way of an Initial
Public Offer (IPO).

An Initial Public Offer (IPO) is the selling of securities to the public in
the primary market.

It is the largest source of raising funds for the company to finance their
expansion and further growth plans.

Initial Public Offering (IPO) is when an unlisted company makes either
a fresh issue of securities or an offer for sale of its existing securities or
both for the first time to the public. This paves the way for listing and
trading of the issuer’s securities.

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The sale of securities can be either through book‐building or through
normal public issue.

Book Building is basically a process used in Initial Public Offer (IPO) for

efficient price discovery. It is a mechanism where, during the period for
which the IPO is open, bids are collected from investors at various prices,
which are above or equal to the floor price. The offer price is determined

after the bid closing date.

Price at which securities will be allotted is not known in case of offer of

shares through Book‐Building, while in case of offer of shares through
normal public issue, price is known in advance to investor.

Floor price is the minimum price and Cap Price is the maximum price at
which the bids can be made.

8. Hierarchy for an IPO

SEBI

NSE BSE Registrar Company Escrow Bank

BRLM/Merchant Bankers/Syndicates

Angel 23/12798‐38 Other Sub syndicates

Angel Branches

Sub brokers Remisers Franchisee

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9. PRE IPO PROCESSES

1) Sub‐Syndicates Agreements (SSA) for distribution of IPOs

For distribution of IPOs a tie up agreement is made with BRLM/Syndicates. This

is an activity which needs to be done for each and every forthcoming IPO before

the IPO date is announced. This agreement gives us the right to distribute the
IPO forms, accept forms, bidding of forms, exchange, and submission of forms

to banks on behalf of BRLMs/Syndicates.

Documents Involved

For 1st Agreement (with NSE under ACDL)

• List of Bidding Collection Centers

• Details of NSE VSAT/LL and User IDs for activation

• List of Branches for Distribution of forms
• Letter of requisition of Forms printed with our CODE i.e. 23/12798‐38

• (to be printed on ACDL Letterhead)

• Letter to NSE for activation of USER IDs

For 2nd Agreement (with BSE under ABL)
• List of Bidding Collection Centers

• Details of BSE IP Address for activation

• List of Branches for Distribution of forms
• Letter of requisition of Forms printed with our CODE i.e. 23/12798‐38

• (to be printed on ACDL Letterhead)

• Letter to BSE for activation of USER IDs
Note – In case of only 1 BRLM/Syndicate member appointed for Issue,

both NSE and BSE Agreements will be submitted.

Procedure:

There are basically two sources of getting proposal for SSA i.e. Direct and
Indirect. In direct proposal BRLMs/Syndicates directly approach and send us a

proposal for Sub‐syndicate agreement of their forthcoming IPO. Secondly, we
refer to some sites for the basic details of forthcoming IPOs which give us an

idea about those IPOs which are in pipeline along with other details viz. Name
of BRLMs/ Syndicates, Bankers and Registrars appointed for IPO, etc.

(Sites – Sebi.com, Primedatabse.com, moneycontrol.com, capitalmarket.com,

etc.)

We always tie up with at least 2 members using the ACDL and ABL member

code.

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2) Distributions of IPO Form
Once all the formalities of Agreements are done and the date of Issue is
announced by BRLMs, the forms distribution schedules are sent to us by them.

This gives us an idea about the quantum of allotted forms and list of Angel
Branches, the forms are directly sent by them. Once branches receive their

forms they further circulate it to their Sub‐brokers and Clients.

3) Basic information of IPO to Branches

3.1) Process description:

IPO product notes and basic details are forwarded to the Branches.

Basic IPO details like Issue opening dates, closing dates minimum and maximum

qty, bid lot, Registrars to the issue, Issue Size, etc. are forwarded to the

branches,

Recommendation ‐ Product notes recd from Syndicates, Angel Product Note

and recommendations (if any) are sent to all the branches which help them to
advise their sub‐brokers and Clients.

Brokerage & Incentives – Information about the Brokerage and Incentives
payable to Sub‐brokers is being forwarded from CSO to all branches in advance

to circulate with their sub‐brokers.

Banking Matrix – Banking Matrix received from syndicate provides information

of banks where we can submit the IPO forms on day‐to–day basis. These details

are provided to branches in advance so that they can arrange to send forms to
other locations within the stipulated time if banking location is not available at

their end.

4) Updating of IPO Information on Angels Website

All information about Current and Closed IPOs are available on the
Angeltrade.com site in services/IPO page. This site can be viewed to all.

Uploading of information:

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Log‐on with your

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261

5) Updating IPO Masters for Offline IPO Utility.

Offline IPO utility is available to all branches in our back‐office where they can do
offline entries of IPO forms accepted by them during the IPO period.

Basic details received from Syndicates/BRLMs are updated in the utility masters before
the IPO open date.

10. IPO PROCESSES

1 Collection and Verification of Forms

All the collected forms need to be verified and preliminary checking of documents is

necessary as this may lead to rejection of Forms at Registrar level.

Preliminary checking of the following:

1) Demat Detail –NSDL or CDSL ( NSDL is 8 digit code and CDSL is 16 digit

code)
2) Quantity – has to be in lots as specified

3) Status – has to be mentioned (IND, HUF/ etc)
4) Price – as per price band

5) Contact No. – preferably mobile & land line nos (both)
6) Applicant Signature

7) PAN card details – for all applications, irrespective of amount

8) Category – Retail /HNI/ QIB
9) Cheque Payable to Escrow Account – has to be checked as per Category –

different Category has different escrow account which is mentioned on the form
below Angel’s code

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10) Cheque Details – amount in cheque should tally with application (if cheque

amount is higher than balance is refunded and application can be accepted)

11) Outstation payment – either through Cheque ‐payable at – par or DD payable

at the submitting city.

2 Bidding of IPO Forms in Offline Utility

Branches send their bids in an offline format through the IPO utility accessible
by them via ACDL BackOffice Login. The user id & password for the utility is
provided to all the branches. All these bids are centrally uploaded by the CSO

Team on the Exchange.

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Generation of CSV file: All the entered transactions get’s generated in a CSV file at a

particular interval and then has to be uploaded in NEAT System.

3) Uploading of Bids at NSE

This is very important process in Book Building without which the IPO process
cannot be completed. Successful uploading of all our bids is ensured by the TRS

No. which is provided by the exchanged against each & every uploaded bid.

Log on to NEAT software.

In the Supplementary Menu, select Offline Order entry and specify the
destination of CSV file and clik Open to get the file upload. Below is the

snapshot for the same.

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3) Confirmation of TRS for each Bidded form

Once the CSV file is uploaded on NEAT, a REVERT file containing TRS number against
each Application Name is received. This needs to be uploaded in our Offline IPO Utility.

This process shows the Confirmation of TRS No.

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4) Back‐up of Offline IPO Utility

On closing day of IPO a back up is taken of all the uploaded bids. This is maintained for
further reference & reconciliation purpose when we receive Brokerage files for that
particular IPO.

6) Co‐ordination of Branches for Modification/Cancellation of Bids.

There is a stipulated time frame decided by Exchanges for
Modification/Cancellation of bids. These requests are recd from Branches and
steps are taken accordingly by the team. The results are then communicated to

the respective Branches.

11. POST IPO PROCESSES

Details related to Allotment and listings of IPO records are received from

Syndicate. This is then forwarded to All Branches and Feedback Team for
further information. This gives the clients an Idea about the Ratio of Allotment

decided by the Registrars as it varies from IPO to IPO.

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12. Query Management Process:

Resolving all query or complain received in regards to IPO.

There are 3 types of queries:

1) Pre‐IPO queries
2) Queries during IPO

3) Post IPO queries

1) Pre‐IPO queries:

• Queries related to forthcoming IPOs, Opening, Closing dates, Size of

Issue, Payment options, etc come Pre IPO Queries.
• These queries are been handled by CSO Ops, solved in a stipulated

time‐frame. Such queries can be further bifurcated into 3 parts:
queries from Branches, Queries from Sub‐brokers and Queries from

Clients

2) Queries during IPO:

These are queries related to the current IPOs from Client, Branches or SBs. Such

queries consist of Banking of forms, uploading of bids or form filling, different
payment option, TRS related queries, etc.

3) Post IPO queries:

Queries related to Allotment and listing dates, Allotment Ratio, confirmation of

Allotment, Credit of Shares in Clients Accounts and Queries related to Refund of
Amount comes under this category.

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13. Annexure

1.1) Annexure 1.

Application Form. Page 1.

A

B U

C
D

F

E
G

H

I

J

K

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Application number is a unique no. required for tracking the MF investment.

B Æ ARN & Name of Distributor shows the ARN of an individual or company under
whom the transaction will be mapped by the Registrar. All MF forms distributed by

ANGEL should bear ARN‐39242 stamp.

C Æ Existing folio no is required to be filled in by Investor for his additional investments
in the same scheme or Mutual Fund invested through the same distributor.

D Æ Name of 1st Applicant denotes the name of primary applicant. If there are more
than one applicants, then fields for 2nd and 3rd applicants also needs to be filled in.

E Æ Date of birth is not mandatory except in case of investments done for minors.

F Æ Email ID is an optional field but we insist on this detail so that our Welcome Letter

reaches all our clients which are sent through email.

G Æ Telephone no is also an optional field but it is suggested that investors give this

detail so that they can be contacted in case of any further requirement.

H Æ PAN Details is mandatory field for all investments.

I Æ Contact Detail i.e. Address for communication is mandatory so that account

statements or any kind of further communication can be sent at by the AMC to the
investors.

J Æ Bank Particulars are also required to be mentioned in case of further Debit (SIPs) or
credit (Redemption / Dividend proceeds).

K Æ Acknowledgements slips should also be filled up so that necessary follow‐up can
be done, if required.

U Æ Sub‐broker code is mandatory as Angel needs to pays brokerage to them.

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Page 2.

M N O

L P

Q

R

S

T

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270

The scheme under which the amount needs to be invested should be mentioned

M Æ Option is mandatory field ie Growth or Dividend, if nothing is mentioned then
Growth option is treated by default.

N ÆCheque amount (Investment Amount) needs to be given

O ÆBank details on which the cheque is drawn

P ÆCheque no/Date needs to be mentioned

Q Æ SWP is an systematic withdrawl plan which gives you an option of systematic
redemption of your investment on a specific date upto the period as specified by the

investor

R Æ STP is an systematic transfer plan in which you can opt for systemetic transfer of

your fund from one scheme to another

S Æ Nomination is an optional field in which you have to mentioned the details of your

nominee.

T ÆSignature(s) is mandatory field wherein the investor has to put down his specimen

signature. Signature of all Joint Applicants are required.

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1.2) Annexure 2.

SIP Form

A B

C

D

E

F

G

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A Æ ARN & Name of Distributor shows the ARN of an individual or company under

whom the transaction will be mapped by the Registrar. All MF forms distributed by

ANGEL should bear ARN‐39242 stamp.

B Æ Sub‐broker code is mandatory as Angel needs to pays brokerage to them.

C Æ Existing folio no is required to be filled in by Investor for his additional investments
in the same scheme or Mutual Fund invested through the same distributor.

D ÆName of 1st Applicant denotes the name of primary applicant. If there are more
than one applicants, then fields for 2nd and 3rd applicants also needs to be filled in.

E ÆSIP Details are mandatory, as based on this detail the investors SIP would get
deducted at future date.

F ÆBank Particulars needs to be mentioned in case of further Debit (SIPs) or credit
(Redemption / Dividend proceeds).

G ÆSignature(s) is mandatory field wherein the investor has to put down his specimen

signature. Signature of all Joint Applicants are required.

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1.3 Annexure 3.

KYC Forms

Individual Page 1.

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274

Individual Page2

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275

Non‐individual. Page 1.

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276

Non Individual Page 2.

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277

1.4 Annexure 4.

Application Form for appointment of Sub‐broker Mutual Funds/IPOs

Applied For MFIPOINSLOAN

SB Code 0300120148

Name JAYKUMAR R. BRAHAMBHATT

Address1 132, BHU TADIYA VAS, GAM CHOCK PASE,

Address2 MALANA, PALANPUR

PIN No 385001

Tel No (res) No

Tel No (off) No

Mob No No

Email ID NO

AMFI No ‐

ARN Date

AMFI Expiry Date

Category INDIVIDUAL

Presently working as Sub broker of ‐

IPO 0

Mutual Fund 0

Family code NO

PAN No AOTPB8252Q

Bank Name STATE BANK OF INDIA

Bank Add BRANCH MALANA, PALANPUR

Act No 10944194102

Existing Sub Broker Equity Tag ‐

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1.5 Annexure 5.

Welcome Letter for Sub‐broker.

Dear Associate,

Allotment of Code
We thank you for your preference in partnering with Angel. Here is a warm

welcome from the Angel Group, for becoming our Business Associate.

We are pleased to inform you that your application has been processed and you
have been allotted a code number which is (0106110378)

You are requested to quote this code number in all your correspondence with us
and also use it in all the business transactions without any prefixes or suffixes.

The Code been allotted for all your Distribution Business activities conducted with

Angel.

You can even view your Business MIS online by visiting our site www. angelmf.com

and Clicking on Backoffice Login will prompt you for your LOG IN DETAILS which
are as follows:

USER ID: xxxxxxxxx

Password: xxxxxx
We look forward to a mutually rewarding association with you.

In case of further assistance for activation of the code you can contact us at our

corporate office, Tel: 022–30817400 or mail us at mf@angeltrade.com,
& for any kind of support you can reach us at our distribution office, Tel 022 ‐
4230 3600

or E‐mail us at: wmshelpdesk@angeltrade.com

With Best Regards,
For ANGEL CAPITAL & DEBT MARKET LTD.

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What are the checks that one should note?

(1) Demat Detail –NSDL or CDSL ( NSDL is 8 digit code and CDSL is 16
digit code)

(2) Quantity – has to be in lots as specified

(3) Status – has to be mentioned (IND,HUF/ etc)

(4) Price – as per price band

(5) Contact No. – preferably mobile & land line no’s (both)

(6) Applicant Signature

(7) PAN card details – for all applications; irrespective of amount

(8) Category – Retail /HNI/ QIB

(9) Cheque Payable to Escrow Account – has to be checked as per Category
–different Categories have different escrow accounts, which are
mentioned on the form below Angel’s code

(10) Outstation payment – either through Cheque ‐payable at – par or DD,
payable at the submitting city.

Uploading of Bids: The branches send their bids in an offline format
through a utility (IPO Utility) accessed by the IPO team at Akruti. The
user id & password for the utility is provided to all the branches.

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Banking of Forms: As of now, for Mumbai branches‐ forms are collected
at the CSO on the last day of bidding by evening 6.00 pm and banked
centrally. Regional Offices bank the forms at their respective banking
centre.

Advisory Services offered in the Weekly review, wherein forthcoming
IPOs (in which Angel is a distributor) are covered, and fundamental and
technical aspects of the IPO are offered by analysts.

Competitive Sharing Pattern: The brokerage shared by ANGEL with its
sub‐brokers is in line with the industry practice.

Angel Website gives details of the ongoing and forthcoming IPOs as
well as ratings, if any, by our dedicated Research Team.

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Q. Who should be contacted for the Mutual Fund & IPO Operations?

1) Ms. Munira Memon & Mr. Pramod Padalkar (for operational queries)
Contact: 022‐ 39535300 respectively.

2) Mr. Pramod Vinerkar for IPO related processes and queries.
(Contact: 022 – 3953 5300)

Queries. (022‐ 3953 5300)

For Operational queries of MF/IPO
Email: mf@angeltrade.com
ipo@angeltrade.com

For Advisory & Marketing Related queries
Email: wmshelpdesk@angeltrade.com

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CHAPTER ‐ XI
Trading in the new age E‐Broking Services

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283

CHAPTER COVERAGE

1. Introduction

2. E‐broking products offered by Angel

3. USP’s of Angel’s E‐broking service

4. The salient features of Angel’s E‐broking Service

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1. Introduction

E‐Broking is a service provided by Angel for online trading in equities
and commodities using the internet as a connecting platform.

It enlists the power of electronics to connect buyers and sellers in

geographically separate locations in a live trading domain.
One can use his computer over the Internet or via proprietary networks

to trade in real time.

2. E‐Broking products offered by Angel

Angel provides for on‐line trading on BSE, NSE (Cash and F&O),
NCDEX and MCX through our 4 unique E‐Broking platforms, which are
both browser and application based; especially designed for traders as
well as investors.

The four e‐broking platforms which Angel provides to its clients are:

• Angel Investor
• Angel Trade
• Angel Diet
• Angel Anywhere

Fig.1

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2.1. Angel Trade / Angel Investor

Exhibit.1

Angel trade and Angel Investor are browser‐based products, ideal for
investors and low volume traders. (Exhibit.1)
No installation is required.
The online trading platform can be accessed through any web‐based
browser like internet explorer or Netscape navigator.
Angel Investor has a static page (without streaming quotes) and works
behind most active firewalls. It is ideally suited for clients working in
corporate and IT parks.
Angel Trade gives the convenience of real time quotes and online trading
facility for multiple exchanges on a single screen.
Online funds transfer, real time news and message flashs help make
trading a convenient experience.

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2.2. Angel Diet:

Exhibit.2

Angel Diet is an application based trading platform (Exhibit.2). Real time quotes, multiple
exchanges on single screen, online fund transfer and real time trading tips and news flash
are some of the hallmarks of the product.
The product is very versatile, packed with features to give a day trader high leverage in his
trades .
It is very much easy to use and convenient to traders who churn in large volumes.

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2.3. Angel Anywhere:
Exhibit.3

Angel Anywhere is a server application‐based online trading platform

for the equities domain.(Exhibit.3)
It has been embedded with technical analysis tools and chart studies to

enable traders do technical analysis of the market.

Angel Anywhere is offered to clients who have a technical bent of mind.

3. The USP’s of Angel’s E‐Broking service

The USP’s of Angel’s E‐Broking services are as follows:

Our internet trading platform gives state‐of‐the‐art trading facility, real‐
time order and trade confirmation, e‐contracts and 24X7 on‐line web‐
enabled back‐office system at the click of a button.
Comfort and Privacy.
Streaming quotes and Technical tools.
Real‐time news and message flash.
Advantage of multiple exchanges on a single screen.
Auto pay‐in of shares.
Intra‐day calls & flash news for a comfortable and convenient trading
experience.
Historical charts with technical tools for technical analysis of the markets.

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4. The salient features of Angel’s E‐Broking service

Multiple exchanges on a single screen: Online trading on BSE / NSE
(Cash and F&O), MCX and NCDEX on a single screen. (Exhibit.4)

Exhibit.4

Speed: Use of latest technology to generate efficient uptime and greater
stability to give high speed.
Competitive brokerage rates: Providing our clients the best value‐added
services at the most competitive brokerage rates.
Optimum margins: Angel gives the trading exposure at optimum
margin level.
Online funds transfer: The clients enjoy the convenience of online
transfer of funds from their bank accounts, to the margin account of
Angel, online. (Exhibit.5)

Exhibit.5

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Personalized service: HNI clients can avail of personalized advisory
services, from our trained and experienced dealers, on trading
opportunities.
Off line services: Clients are free to make a telephone call to any of our
103 well‐equipped branches across the country.
Technology: Angel provides the latest infrastructure tools to support
and integrate the back‐end and front office functionalities.
Back office infrastructure: Angel provides an automated web‐enabled
centralized back‐office, whereby the clients have access to their trade
confirmation reports, holding statement, their net position, the margins
and the statement of accounts and ledgers on a 24 X 7 basis.
Technical support: Removal of technical difficulties through an online
support system, manned by qualified professionals.
E ‐ Contract notes cum bills: Angel provides contract notes cum bills in
electronic form, resulting in ease of access to trades carried out by the
clients on any particular day.
E – Broking Training Centre: E‐Broking training centre helps train
clients on online trading platform, and also creates awareness about the
stock – markets.

Helplines


Ms. Duran Fernandes Executive – ETC Acme (022) 4000 4400 ‐ 226

Ms. Bhakti Karande Executive ‐ ETC Acme (022) 4000 4400 ‐ 226

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CHAPTER ‐ XII
Risk Management

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291

CHAPTER COVERAGE

1. Introduction

2. Importance of Risk Management

3. Processes in Risk Management

4. How to identify, monitor and control risk?

5. Online Risk System

6. Offline Risk System and two major reports in Offline Risk
System

7. Comprehensive Risk Report

8. Pure Risk and Projected Risk, How are they calculated?

9. Collection Report

10. Benefits of Online and Offline system

11. F&O margin violation report

12. Case Studies: F&O Margin Violation Report against F&O
Ledger balance in Collection Report.

13. SB Credit

14. Penal Charges

15. Risk Management Checklist

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1. Introduction

Risk Management is a discipline or systematic process that enables
people and organizations to cope with uncertainty by taking steps to

protect their vital assets and resources.

In context to our business, it is a process whereby the company (could be
a broker, institution, stock exchange) lays down a clear process of how its

risks should be managed.

2. Importance of Risk Management

Risk Management is an integral part of good management.
It is an iterative process that, with each cycle, can contribute
progressively to organizational improvement by providing

management with a greater insight into risks and their impact.
The application of sound risk management allows for continual

improvement in decision making, processes and helps achieve
management goals towards GROWTH, ROI and “CUSTOMER

DELIGHT”.

3. Processes in Risk Management

The different processes involved in Risk Management are:
Identifying risk.

Deciding how much exposure should be given to each client.
Deciding the frequency of collection of margins.
Deciding how much risk is acceptable.

Controlling risk on a continuous basis.
Monitoring exposure taken on a continuous basis.

4. How to identify, monitor and control risk?

At Angel, we have the best of software systems and reports which help
us to identify, monitor and control risk effectively.
These are as follows:
• Online Risk System
• Offline Risk System

5. Online Risk System

Online Risk System: Online Risk System is the system which provides
the net position data of each client, sub‐broker and branch on a real time
basis.

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These are as follows: (Exhibits.1 &2
• Increment / Decrement positions.
• Exposure ‐ Gross Exposure & Net Exposure.
• Current Outstanding Positions.
• Scrip‐ wise intra day trades.
• Risk Clients ‐ Projected Risk & Pure Risk.

Exhibit.1: Online Risk Client (BSE Cash)

Exhibit.2: Online Risk Client (NSE F&O)

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6. Offline Risk System and the two major reports in Offline
Risk System

Offline Risk System: Offline Risk System is the system which gives
complete information on the risk and collection status of each client, sub‐
broker and branch as on the last trading day.
There are 2 major reports in the offline risk system:
• Comprehensive risk report.
• Collection report.

7. Comprehensive Risk Report

As the name suggests, this report looks after the risk aspect of the sub
broker and of Angel as a whole.
This is the major difference between the Collection Report and the
Comprehensive Risk Report.
The columns which require explanation are Risk before Remisior Credit,
Remisior’s Credit, Branch Details, and Risk after Remisior’s
Credit.(Exhibit.3)
It shows the list of clients, sub‐brokers and branches which come under
Pure and Projected Risk.

Exhibit.3

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Risk before Remisior Credit: This column states the Risk of the branch
and once we drill down, we come to know the risk of various sub brokers
mapped under that branch as well as the risk of direct clients under that
branch. We have further bifurcated Risk into Projected Risk and Pure
Risk. Projected Risk is calculated by applying a certain percentage of
haircuts on the collateral and the resultant figure is compared with the
ledger balance. Needless to say, where the resultant figure is more than
the ledger balance, that particular client code will not be reflected in the
Projected Risk. On the other hand Pure Risk is one‐to‐one risk, i.e.
whatever is the valuation of collateral with us, the same is compared
with the ledger balance. If, for a particular client code, his ledger balance
is more than the collateral with us, his code would be reflected under
Pure Risk column. Kindly note that a detailed calculation of the
subbroker’s risk is not available, since we will be concentrating on the
Risk after Remisior’s Credit column. This column is kept for the
subbroker to know where he is standing at the end of the day.
Calculations of the figures under Projected Risk and under Pure Risk
will be dealt with in the Risk after Remisior’s Credit column.

Remisior’s Credit: Unlike in Collection Report, where only the
subbroker’s brokerage is considered, in this report under this column not
only is the subbroker’s brokerage considered, but also any deposit given
by that sub broker is credited. The modus operandi for brokerage
remains the same as explained in the Collection Report, the difference
being only in presentation. The first sub ‐column under Remisior’s Credit
reveals the figure of brokerage accrued and due, while the second sub ‐
column reveals the figure of brokerage accrued but not due. The third
sub‐ column reveals the figure of any deposit given by the sub ‐broker.
The summation of these three sub ‐columns is shown under the sub ‐
column Total.

Branch Details: This column reveals the branch code and the branch
name assigned to various branches opened all across India. The branch
code assigned is unique in nature. Once you drill down under any
branch, you will find direct clients mapped under that branch as also the
various sub‐brokers who have registered under that branch. The sub‐
brokers who are registered are also allotted a unique sub ‐broker code
and name.

Risk after Remisior Credit: This is the most important column which we
need to keep a close watch on. Any figure appearing in projected risk or
pure risk sub‐ columns pertains to our risk, since all adjustments
pertaining to the brokerage due to the sub‐ broker as well as the deposit
given by the sub‐ broker have been deducted from his projected as well
as pure risk, to derive our projected or pure risk.

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8. Pure Risk and Projected Risk. How are they calculated?

Pure Risk: All debits left after the deposits and holdings value are
considered, i.e. debits exceeding the holdings and the deposit held with
us.
Pure risk is calculated as follows: Total Ledger Balance – Total Holding –
Collateral given in FO / MCX / NCDEX.
Projected Risk: It is calculated on the margins of commodities and F &
O.
Projected Risk is calculated as follows: Total Ledger Balance + 50% of
Initial Margin in FO / MCX / NCDEX – Collateral given in FO / MCX /
NCDEX – Total Holding after applying Hair Cut.
The hair cut to be applied is as follows: For stock falling under Approved
Category 10% Haircut is applied, and for stock falling under Non –
Approved Category 100% Haircut is applied.
The logic behind applying 50% Haircut of Initial Margin is that we
presume that the client will pay at least 50% of the margin.

9. Collection Report

As the name suggests Collection Report concentrates on codes of those
clients from whom we need to collect money on account of either shares
purchased in the cash segment, intra‐day loss incurred in the cash /
derivative / commodities segment or position taken in the derivative /
commodities segment.
As far as Risk Management is concerned, the Collection Report is of two
types: one showing collection on Net basis, and the other on Gross basis.
Needless to say, Gross collection report will show only codes of those
clients who are in debit.
In other words a particular sub‐ broker, whose client has a credit balance,
won’t find a place in this report.
On the other hand Net collection report will also list codes of those
clients who have a credit in their ledger balance.(Exhibit.4)
Gross Collection Report: Gross Collection Report consists of the
following columns: BSE Ledger, NSE Ledger, FO (Net), NCDEX (Net),
MCX (Net), Total, Deposit, SB Code, SB Name, Brokerage, Net Debit,
Holding.(Exhibit.5)
There is not much difference between the Gross Collection Report and
the Collection Report, as far as reading them is concerned. The major
difference between the two is that the Gross Collection Report lists those

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client codes from whom payment needs to be collected under a said sub
broker, while the Collection Report also takes into account credit balance
of other client codes mapped under the same sub broker, over and above
the client codes listed under Gross Collection Report.

Exhibit.4: Collection / Net Collection report

Exhibit.5: Gross Collection Report

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10. Benefits of Online And Offline system

The online & Offline system helps us to
Assign limits and exposure.
Identify the risk clients.
Collection of margins.
Check the current open positions
Release Payout of shares and cheque.
Release brokerage to the sub‐broker / franchisee
Check if the positions are squared off.

11. F&O Margin Violation Report

As the name suggests, this report shows the list of branches, sub brokers
and clients having margin shortage. (Exhibit.6)
The report concentrates on those client codes from whom we need to
collect money on account of either position taken in the F&O segment or
MTM loss incurred or both.

Exhibit. 6

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12. Case Studies: F&O Margin Violation Report against F&O
Ledger balance in the Collection Report

Exhibit 7
Ledger Holding
Party Net Net
Deposit Party Name Allowed Collection
FO NCDEX MCX Code Debit Default
BSE NSE NBFC TOTAL Appr. Non.Appr. TOTAL
(Net) (Net) (Net)
DILIP
3.01 ‐0.00 ‐0.42 0.00 0.00 0.00 2.58 0.00 D6527 DHANRAJ 2.58 11.60 0.00 11.60 0.00 2.58 ‐
MUNO
3.01 ‐0.00 ‐0.42 0.00 0.00 0.00 2.58 0.00 TOTAL 2.58 11.60 0.00 11.60 ‐ 2.58 ‐
Net
Gross Overall
Party Ledger Initial Margin Shortage Overall Exposure
Sauda Date
Code
Party Name
Balance
Colleteral
Margin Shortage (%)
Shortage
Shortage in Lacs

(in Lacs)
(in Lacs)

08/09/2006 D6527
DILIP DHANRAJ
‐73,799.46 0.00 31,420.19 0.00 0.00 % 0.00
‐
2.00
MUNOT 42,379.27

In the above case (Exhibit7), it can be seen that the client has a ledger
credit of Rs.0.74 lacs, the collateral column shows nil value and there is a
margin requirement of Rs.0.31 lacs. The summation of the above reflects
a net overall shortage credit of Rs.0.42 and the same figure is also
reflected in the main collection report. In the above case, credit of
Rs.42000 odd has been considered in the collection report since the credit
effect is on account of the excess ledger balance and not the collateral.

*************************

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Exhibit 8
Ledger Holding
Coll
Party Net Net
Deposit Party Name Allowed ecti
BSE NSE NBFC TOTAL Appr. Non.Appr. TOTAL on
(Net) (Net) (Net)
SALIM
0.00 1.41 0.84 0.00 0.00 0.00 2.24 0.00 S11233 CHIMTHANWA 2.24 1.57 0.22 1.78 0.00 2.24 ‐
LA
0.00 1.41 0.84 0.00 0.00 0.00 2.24 0.00 TOTAL 2.24 1.57 0.22 1.78 ‐ 2.24 ‐

Gross
Net Overall Expos
Sauda Party Ledger Initial Margin Shortage Overall
Party Name Colleteral Shortage ure
Date Code Balance Margin Shortage (%) Shortage
(in Lacs) in Lacs
(in Lacs)
08/09/ SALIM 1,517,170.56

S11233 83,705.92 442,526.18 0.00 0.00 % 0.00 ‐990,938.46 27.36
2006 CHIMTHANWALA

In the above client code (Exhibit.8), it can be seen that the client has a ledger debit
of Rs.0.84, collateral against margin of Rs.15.17 lacs, and Margin requirement of
Rs.4.43 lacs. The entire margin requirement is sufficiently getting covered against
the Collateral. So, as such, there is no margin shortage, but still in the collection
report a figure of Rs.0.84 lacs is reflected. This is on account of ledger debit in FO
or, in other words, his mark to market loss, which needs to be collected. In the
above case, kindly note that ledger debit is not adjusted against Collateral, in spite
of the fact that the Collateral value is sufficient to clear the entire ledger debit also.
*************************

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Exhibit 9

Ledger Holding
Col
Party Net Net lec
Deposit Party Name Allowed
FO NCDEX MCX Code Debit Default tio
BSE NSE NBFC TOTAL Appr. Non.Appr. TOTAL n
(Net) (Net) (Net)
ATISH
0.22 0.00 1.96 0.00 0.00 0.00 2.18 0.00 A3614 RAMESH 2.18 0.21 0.00 0.21 0.00 2.18 ‐
AGRAW
0.22 0.00 1.96 0.00 0.00 0.00 2.18 0.00 TOTAL 2.18 0.21 0.00 0.21 ‐ 2.18 ‐
Gross Overall Net Overall
Party Ledger Initial Margin Shortage Exposure
Sauda Date Party Name Colleteral Shortage Shortage
Code Balance Margin Shortage (%) in Lacs
(in Lacs) (in Lacs)
ATISH R
08/09/2006 A3614 15,971.64 0.00 180,196.55 196,168.00 108.86 % 196,168.19 196,168.19 9.00
AGRAWAL

of Rs.0.16 lacs with NIL collateral and margin requirement of Rs.1.80 lacs. Thus, in
the collateral column a figure of Rs.1.96 lacs is reflected, which includes mark to
market loss plus margin requirement on account of his open position. Even margin
shortage column is reflecting the same amount as reflected in the collection report.
*************************

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Exhibit 10

Ledger Holding

Coll
Party Net Net
Deposit
Code
Party Name
Debit
Allowed
Default
ecti
FO NCDEX MCX on
(Net) (Net) (Net)

SURESH KUMAR
0.00 0.00 ‐0.46 0.00 0.00 0.00 ‐0.46 0.00 S11140 ‐0.46 1.70 0.11 1.81 0.00 ‐0.46 ‐
B JAIN
0.00 0.00 ‐0.46 0.00 0.00 0.00 ‐0.46 0.00 TOTAL ‐0.46 1.70 0.11 1.81 ‐ ‐0.46 ‐

Gross Overall Net Overall Exposu

Sauda Party Ledger Initial Margin Shortage
Party Name Colleteral Shortage Shortage re
Date Code Balance Margin Shortage (%)
(in Lacs) (in Lacs) in Lacs
SURESH
08/09/200
S11140 KUMAR B ‐129,681.96 148,421.25 83,706.63 0.00 0.00 % 0.00 ‐194,396.58 4.77
6
JAIN

In the above client code (Exhibit.10), it can be seen that the client has a ledger credit
of Rs.1.30 lacs, collateral of Rs.1.48 lacs against Margin and a margin requirement of
Rs.0.84 lacs. Since the summation of the ledger balance and collateral is sufficient to
cover the entire Margin requirement, there is no margin shortage. The summation
also shows net overall shortage credit of Rs.1.94 lacs. However, in the collection
report, credit of only Rs.0.46 lacs is reflected. This is on account of ledger credit of
Rs.1.29 lacs minus margin requirement of Rs.0.84 lacs. No credit of collateral is
given in the collection report.

*************************

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Exhibit 11

Ledger Holding
Party Net Net
Deposit Party Name Allowed Collection
(Net) (Net) (Net)
0.03 ‐0.23 0.15 0.00 0.00 0.00 ‐0.05 0.00 R5246 RAJESH KUMAR D ‐0.05 0.58 0.00 0.58 0.00 ‐0.05 ‐
0.03 ‐0.23 0.15 0.00 0.00 0.00 ‐0.05 0.00 TOTAL ‐0.05 0.58 0.00 0.58 ‐ ‐0.05 ‐

Net
Gross Overall
Party Ledger Initial Margin Shortage Overall Exposure
Sauda Date Party Name Colleteral Shortage
Code Balance Margin Shortage (%) Shortage in Lacs
(in Lacs)
(in Lacs)
RAJESH ‐
08/09/2006 R5246 14,527.89 29,637.75 0.00 0.00 0.00 % 0.00 0.00
KUMAR D 15,109.86

of Rs.0.14 lacs with collateral of Rs.0.29 lacs. In this case, although there is net
overall shortage credit of Rs.0.15 lacs, the collection report shows a debit of Rs.0.15
lacs. This is on account of the mark to market loss suffered by the client, which
needs to be collected as the same cannot be adjusted against Collateral.

***********************

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Exhibit 12

Gross Overall
Net
MTM
Ledger Initial Margin Shortage Overall Exposure
Party Code Party Name Colleteral Shortage Loss
Balance
Margin Shortage (%)
(in Lacs)
Shortage in Lacs
in Lacs
(in Lacs)

SHAH SANDEEP
S8884 ‐747,166.94 0.00 768,510.82 21,344.00 2.77 % 0.21 0.21 0.71 5.02
J

In the above client code (Exhibit.12), it can be seen that the client has a ledger
credit
of Rs.7.47 lacs with NIL Collateral and margin requirement of Rs.7.69 lacs. Thus,
the summation results in margin shortage of Rs.0.21 lacs. Here you can see, there is
a figure of Rs.5.02 lacs in the MTM loss column. This column represents the loss
incurred by the client on account of options sold by him.

13. SB credit:
Sub‐broker credit interest is given on the sub‐broker brokerage and deposit with angel. The calculation and
logic is as under:
Credit is given:
• Sub‐broker’s brokerage ledger across all segments is taken as a net figure to derive the amount in
column (A).

• Sub‐broker’s cash deposit across all segments is taken as a net figure to derive the amount in
column (B).

• Debit of all clients under the sub‐broker having amount less then Rs 1000/‐ on which no penalty is
levied, are added and reflected in column (C).

• Debit and pure risk above Rs.1000/‐ which have not been penalized are summed up and
represented in column (D).

• Debit of the clients on which the penal is charged for that day is added in column (F).

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14. Penal Charges
Clients having debit for more than prescribe days,(which is more than actual Pay‐in days to the
exchange plus the additional day given by Angel) will be charged interest in their ledger.
Logic and calculation of the same is as under:
) It runs on a concept of voucher date and effective date to calculate the penal charges. Voucher
date is a date on which the transaction is done and posted in the back office ledger. Where as
effective date will be actual pay‐in days as per exchange + Excess days granted to a clients to pay
the required amount. So the transaction date will be the T day and effective date will be the T+4
day in the Penal software. For example clients buys on Monday (T day) and he need to pay the
required amount by T+4 i.e. Friday. In this case Monday’s date will be consider as the voucher date
and Friday’s date will be considered effective date.
) Separate ledger will be maintained by the penal software to calculate the running balance of a
client which will be different then the back office / Risk management ledger. Penal software ledger
will run on Effective date and not on voucher date. Entries in the penal ledger will be considered /
posted on the Effective Date only and not on voucher date. For example if any buying is done on
Monday. The debit will reflect in the back office/ risk management ledger on the same day i.e.
Monday, but the same will be posted/considered in the penal ledger only on subsequent Friday
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) which is the Effective date.
) Effective date for debit/buying will be considered on T+4 as defined to a Region(Can differ from
region to region), where as credit /selling transaction will be done on T+2 to all the clients. All the
Cheque entry will be considered on T day itself, the effective date for Cheque entered in the system
is the same as voucher date.
) In case of derivatives segments (Equities + commodities) effective date will be one day lesser
then the cash segment for example if a particular region is on T+4 days calculation then for
derivatives it till be on T+3. Margin will be completely adjust against the non‐ cash collateral if any,
In‐case of excess non cash collateral the balance will be ignored. Incase if the margin is still short
after adjusting with non‐cash collateral then it will be adjust against the ledger(cash collateral) to
compute final debit/credit for that segment individually.

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) Individual segment running balance will be computed as per the effective date and then netted off
for that calendar date. The net balance if debit will then attract penal charges @ 18% p.a
) Clients whose net balance is less then Rs 1000/‐ for a day and clients who have not traded for last
six months across segments are excluded from penalty.
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15. Risk Management Checklist

Risk Management Review Check List
Activity Purpose Status Remarks
Before 9.15 a.m
Report on Clients in Pure / Projected Risk
with Open Position in Futures & Options
Market
Sub Broker / Client Report with Identifying Pure risk customer

Incremental / Dereamental in
Comprehensive & Collection Gross &

Net.
Between 9.15 to 9.45

To update the dealers

regarding the Current Risk
status of their clients and the

plan of action during the day
with respect to Risk
Attending Pre‐Market Dealers meeting Management.

First Follow with the Sub Broker / Clients
regarding their Risk according to the Understanding and use of the
reports obtained above comprehensive Risk report

Inform the CSO about the
Sending the Reports along with the status of the Major Risk clients
Remarks regarding the follow up and and seconding to the dealers
taking collective actions to CSO & the for not executing the saudas for
Branch Dealing Team debit clients
Login the Online Systems (Ideally in Diff for real Time basis Risk
PC.) Management
1st Collection Follow up
Keeping the Client on Square up Mode (if Status for the Overall Risk
required) Clients

Monitoring the Online Risk Management
for real Time basis Risk
and Informing the SB / Clients regarding
Management
the new Position and the MTM against
the Shortfall

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Pay Out Check (if fresh buying is seen, For avoiding pay out against
stop the payout‐ both in terms of cash Debits aroused during the
and securities for debit clients) market

Sending the 1 st Collection Report follow
up to CSO along with the list of clients
taken the limits for intra day
2st Collection Follow up (in consideration
with feedback given in the First Follow
up)
the Shortfall

Pay Out Check (if fresh buying is seen,
stop the payout‐ both in terms of cash
and securities for debit clients)
Informing the Clients which have taken
Limits for Intraday Trading to Squaring up
the Position.

the Shortfall to Square up the Position
Informing the Clients which have taken
Limits for Intraday Trading to Squaring up
the Position.

Finally Preparing the Final Collection
Report along with the Remarks and the
Total Collection Figure
Final Pay Out Check (if fresh buying is
seen, stop the payout‐ both in terms of
cash and securities for debit clients)and
inform the CSO banking Team for Stop
the Payout process for the Debit Clients

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Sending the Final Report the CSO
Informing the SB / Clients regarding the
Final Positions which have exposed them

to Risk.
Checking the Cheque returns are done

for the clients in Shortfall

Instructing the CSO regarding the Fund
/Securities Transfer at Client Level to

other Segments and Collateral Account.
Process Training CSO/RO

Process Test Appeared/Not
Process Test Score Cleared/Not

Back Up Name of the Person
Branch Process Manual RM

NCFM / BCCM Certified

Subbroker Revenue Generation

comparison with Risk & limits of the SB
Fortnightly Basis

Bad Debts and Action taken Week basis

On 4th & 14th of Every Month.
Sub Broker Payout File
Error Trade Details Daily after Market Hours

Helplines


Mr. Bhavin Parekh AVP – Online Risk Mngmt Akruti (022) 2835 8800 – 333

Mr. Vishal Kanani Sr.Manager – Risk Mngmt Akruti (022) 2835 8800 – 227

Mr. Vishal Gohil Asst. Manager – Risk Mngmt Akruti (022) 2835 8800 ‐ 224

Mr. Shoaib Qureshi Asst. Manager ‐ QA Premiere House 02240358600 – 291

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CHAPTER ‐ XIII
Margin Funding

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313

CHAPTER COVERAGE

1. Introduction

2. Policy

3. Account opening for Margin Funding

4. Margin Requirements

5. Buy

6. Sell

7. Funds Payout

8. Shares Payout

9. Risk Management

10. Interest Charge

11. Repayment

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1. Introduction

“Margin Funding” allow you to take higher exposure on the funds as well as unlock the value of
your existing portfolio & take advantage of investment opportunities in the market without the
involvement of fresh funds. One can use the shares in his current portfolio to make fresh
purchases in the market.
If utilized prudently, this product can help unlock the value of Securities even during depressed
Stock Market conditions and provide customers with the much‐needed liquidity during pressing
times.
Advantages:
1. Provide instant liquidity without having to sell your Securities.
2. Allow you to grab investment opportunities instantly without any need to pay first.
3. Leverages your funds available for investments.
4. Benefits like bonuses and dividends continue to accrue to the borrower.
5. Any appreciation in the value of the Securities given as margin would automatically allow
enhancement in drawing power.
6. Interest calculated on the amount utilized & the time for which it is utilized.

2. Margin Funding Policy

Margin funding is a facility where client can keep his position to the extent of his drawing power
and margin value, where drawing power would be based on respective margin on approved list
of securities as specified by Angel Infin Private Limited (AIPL):
1. Facility will be provided against approved Scrips categorized into A, B and C with approved
limits and margin requirement of respective Scrip in the said categories. AIPL reserves the right
to modify, alter, delete, add any of the scrip appearing in approved list without assigning any
reason. In case where the client want to take exposure in any specific scrip (other than the scrips
where unlimited exposure is allowed) for more than 0.25% of market cap of the company, then
client would have to give higher margin i.e. 30%,40% & 45% on respective A,B & C category.

2. It is necessary to have client’s IT return & balance sheets/net worth certificates & other
relevant document as required by AIPL as per KYC guideline issued by RBI on Feb. 21,2005.
3. All clients have to provide upfront margin in the form of securities/Cheques. (Incase of
securities as margin, hair‐cut as applicable to various categories of approved securities would
apply).In case cheque is given for margin then margin requirement would be fulfilled on
clearance of the cheque.
4. If any security is withdrawn from approved list, Client would not be allowed to take additional
position in such scrip & if he does so then such additional position would be treated as
unapproved. Also, withdrawn scrips provided as security earlier would be required to be
replaced by other approved scrips or by cash collateral.
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5. Client would have to pay the margin shortfall before the margin percentage falls by 60%. The
client would be informed at every stage when the margin Percentage begins to fall from the
desired levels. (For Example, client X is having ‘B’ category scrips is required to keep margin at
35%. Each time the margin falls below 35 % client would be informed for the same until only 14%
is left (35‐60%of 35) and if the margin continues to remain unfulfilled, AIPL would square off the
positions to get the margins back to acceptable levels. Square off would take place at the
moment the scrip price comes down to the extent so as to trigger the square off even if the price
recovers afterwards Incase of square off, the ‘C’ category scrips would be sold first and then ‘B’
and at last ‘A’ category scrip.AIPL reserves the right to square off in any manner as it decides.
6. Securities purchased will be transferred to Demit a/c of client on which AIPL would have POA
and AIPL will have full authority on the securities lying in the demat account.
7. ALL the securities would be valued at last traded/Closing price of either BSE or NSE as per
discretion of AIPL but in case of margin requirement, the lowest price during the trading hours
would also be considered.
8. In case Square up done by AIPL at its discretion, all the losses in relation to same will be borne
by client. AIPL would not be responsible incase the securities are not squared up for any reason
like no buyer of securities etc. even if value of securities fall below the debit balance of client in
AIPL and client would have to fulfill the margin requirement.
9. The client should confirm the available quantity & unsettled transaction before liquidating the
position for any scrip. Any loss occurred due to such transaction would be borne by clients.
10. In case of purchase made by the client is more than the total available limit i.e. margin and
funding amount, then AIPL would have right not to accept the whole transaction and client would
be responsible for any amount due to broker because of such transactions.
11. AIPL may require, at any point of time, any additional margin on the basis of volatility or risk
perception in the scrip.
12. MTM loss can be accepted in the form of cash and/or approved securities or combination of
both.
13. If the client want any securities funded by AIPL in his another demat account through off
market transfer, he has to pay so much of the amount so as to keep the margin as per norms.
14. There would be no funding on the securities purchased during the No Delivery period or lock‐
in shares.
15. The shares purchased/Sold would be used first for Margin funding subject to other things are
complied with. If client want to buy/Sell any approved scrip as a normal Buy/Sell (it means not to
be considered for margin funding) then client has to intimate the same to us by 4 PM on the
same day otherwise the positions would be considered first for margin Funding.
16. If the client is buying same scrip in one exchange and selling it to another exchange then this
would be treated as square off transaction unless the client informs otherwise well in advance.

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17. The minimum loan amount would be 1 lakh.
18. The interest would be charged on T+2 basis from client.
19. Any credit received in the loan account of the client would be first appropriated against
interest due, penal interest and finally, the balance in the principal loan account, if any.
20. The AIPL would charge the interest at such rates with right to revise at its discretion , which
would be debited at the end of the month calculated on the basis of daily outstanding.
21. If the client makes default in making payment of interest on time then AIPL would charge 2%
penal interest per month over and above the normal interest charged to him.
22. The shares purchased under margin funding can be sold but client’s ledger must have a
sufficient credit balance in his ledger at the end of the day of sale, to repay the dues to AIPL
otherwise shares would not be released for pay in.
23 Any sell trade done by client for shares lying in margin funding would be released for pay in
obligation even if there is any margin shortfall in margin funding subject to condition that the
client is not under the risk at angel level after considering all segments(for which client is
registered with us) but client has to fulfill the margin shortfall in next 7 trading days otherwise
the open position in normal broking books would be squared off to the extent to recover the
margin shortfall in margin funding
24. The back dated trades for last 15 days can be funded subject to condition that client should
be active on the date of trade which is to be funded
25. AIPL would have right at its sole discretion to add, alter, modify, delete any or all clauses of
this policy.

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3. Account opening for Margin Funding

The client, who is willing to avail Margin Funding facility, should execute the following documents
with the assistance of angel’s relationship manager.
1) Master Financing Agreement ‐ The agreement would be executed between Client & Angel
Infin Pvt. Ltd.(referred as “AIPL” afterwards). It would contain all the terms & Conditions
between both of the parties regarding disbursement, interest, Margin and Repayment. This is
a basic document which would decide the future course of transactions.

2) Irrevocable Power of Attorney – This Contains the Power granted by Client to Angel for
opening & operating the client’s Bank as well as Demat account. In simple term, both Bank &
Demat account would be under Control of AIPL and AIPL would execute all transaction on the
behalf of clients. This power is grated to AIPL because for margin funding facility client has to
compulsorily open a specific bank account from where AIPL would meet the client’s exchange
obligation after financing to him/her. So it is the only way to give the funds to client.

3) Letter of Continuity – This document states that the facility would be of continuation nature
and disbursement and repayment can happen any number of time within the limits of
amount sanctioned to client.

4) Demand Promissory note – By this, Client Promises to repay the loan as and when called by
Lender i.e. Angel Infin Pvt. Ltd.

All the above docs should be sent by branches to CSO after completion of all the requirements.
The branch should make ensure that all documents as required are in place and photocopies are
verified with originals. The responsibility of Credit Verification i.e. sanction amount, interest rate
to be charged etc. of the clients entirely lies at the Branch end. CSO has the right to approve or
reject any or all of the parameters.
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Opening of Demat & Bank Accounts under POA of AIPL
For Margin Funding facility, two bank accounts (Current account & savings account with Kotak
mahindra bank) and one Demat account would be opened in client’s name. The current account
& Demat account would be used for margin funding (has to be opened under POA of AIPL) and
savings account would be opened to facilitate fund transfer to the client. Both the account
opening forms would be part of our Margin Funding Loan Document Kit.
The current bank account of client would be opened in Mumbai under POA of AIPL and client
would have no control on this account. The margin funding to client would be done in this
account so that client’s exchange obligation would be met through this account. (This account
would be Zero balance maintenance account).
The savings account would be opened with Kotak bank’s branch nearest to client’s location so
that client is able to operate it easily. This account would be Zero balance account and client will
get cheque book and ATM card and phone banking facility for this savings account. The ATM can
be used at any of Kotak and HDFC bank’s ATM network free of charge. The payout to client would
be given in this savings account. (Payout can be given by DD also on request of client ).
The Branch will coordinate with Kotak mahindra bank at local level to open the bank account of
the client, as the both current(with Mittal court, Mumbai) & Savings (Local branch of client
location) account can be opened by any Kotak bank branch.(it means the Client residing at
kolkata, both current and savings account can be opened by kotak’s kolkata branch). This process
would make the bank account opening process faster as branches can resolve the bank account
related discrepancies at local level and get the account opened earliest. For this branch has to
provide the bank account opening form duly filled up with all respects to Kotak mahindra bank.
The Power of attorney would be given from CSO end to Kotak bank directly for all cases.
The demat account would be opened with CDSL DP of Angel broking limited under POA of AIPL
irrespective of the fact that client is already having demat account . For Demat account, client
would have to give POA in favour of Angel Broking Limited also for Auto Pay in/Pay out against
the exchange obligation of client, in normal course, the way its currently carried out. The branch
will send DP forms duly filled up to CSO for account opening.
In addition to above, After opening of bank account as well as Demat account, the client would
be mapped for margin funding
Please note that he above mentioned documents / procedures are mandatory, & in any case no
account will be opened if any of the documents in not submitted / any discrepancy is found in the
same.
The charges of account opening would be debited from client ledger.

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4. Margin

The client has to give the margin to AIPL before availing the margin Funding facility. The margin
can be given either in cash or in the form of share. The shares given as margin must be in
approved scrip list of AIPL. The shares would be valued after applying the appropriate haircut on
it.
In case of cash margin, the cheque should be in favour of Angel Infin Pvt. Ltd. In case of margin in
form of shares, then shares must be transferred from client’s demat account to AIPL account and
CMR should be given to branch which in turn send it to CSO for updation in records.
Limit setting

Once the client has given the margin, The system would calculate the limits available to client but
this would be on higher side i.e. taking into consideration that client would buy all ‘A’ group Scrip
only. IF client is going to buy ‘B’ & ‘C’ group scrip, then client has to calculate how much funding
would be available to client on the margin given by him.
Explanation: If a client has given margin say Rs. 1 lakh then system would fix the limit of Rs. 4 lakh
assuming that all ‘A’ category scrip are going to be bought. ( On A group margin is 25%, so
funding would be 3 lacs and total buying allowed would be 4 lacs). If client want to buy ‘B’
category scrip, then he can buy shares of Rs.285714/‐ i.e. 35% margin on B category so taking 1
lakh margin buying allowed would be 100000/35%=285714/‐)
5. Buy

The client would be made available the list of approved scrips and Funding percentage allowed
on them through back office login. The client would buy/Sell shares from his normal trading
account and if client has given the margin then only approved scrips bought by client would be
considered first for margin Funding and remaining would not be considered for funding purpose
for which client would have to make full payment as per normal transaction. The client would be
able to view the trades which are considered for margin funding through back office login.
The funds to the extent of buying obligation against approved scrip subject to funding limits set
for client, will be transferred to Client Kotak bank account (POA) from AIPL Bank A/c. The funds
are further transferred to broker’s account from Client’s POA account to meet the exchange
obligation on T+2 Day. The amount of funding given to client would be reflected in client’s ledger
and on this amount interest would be charged.
The shares are credited in client DP account (under POA of AIPL). The shares lying in such Clients
DP account will be then transferred to AIPL A/c on T+2 day.
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Shortage/Auction :‐ Incase client has not received full quantity of shares as bought then the no.
of shares delivered short may be either given the delivery after 2 days or payout of funds can be
received by the client. In case there is no delivery of shares and Auction payout is received then
the amount would be credited in client’s account on payout day and No. of shares short would be
reduced from client’s holding under Margin funding.
Buy Process

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6. Sell

The client would sell the shares from his trading account as a normal and if the shares sold by the
client are lying under margin funding facility then these shares would be taken first as sold unless
the client informs otherwise to branch by 4 PM on the day client has sold the shares.
The sales proceeds are credited to client’s bank account (under POA) on T+2 day and than further
transfer from client POA Bank account to AIPL bank account would be done.
The shares earlier transferred to AIPL pool A/c, will be Transferred back to Client POA A/c to the
extent of quantity sold , from where broker would debit the client account to meet the exchange
obligation.
After deducting the Principal Amount & interest charged, the balance amount will be margin of
client to be used either for further purchase of shares or Pay‐out to client (as the case may be).In
case of funds payout, the amount would be transferred to client’s savings bank account (Kotak)
or DD to be issued as per request by client.
Sell Process
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7. Funds payout

If the client wants to withdraw the funds, then withdrawal would be allowed only to the
extent that after withdrawal the margin is maintained as per the norms. If the withdrawal
request can be processed then funds would be transferred to Client’s Kotak saving bank
account or issue a DD to client as per request of the client.
8. Shares Payout

If the client wants to transfer the shares to his Demat account, then withdrawal would be
allowed only to the extent that after withdrawal the margin is maintained as per the norms.
If the withdrawal request can be processed then shares would be transferred to client’s
demat account from AIPL account after obtaining the CMR for the Demat account where the
shares are to be transferred.
9. Risk Management

The client has to maintain the margin at all times as per the requirement. The risk
management team would keep a close watch on all the client’s position and incase the
margin is required from the client then client would be informed accordingly from CSO. The
client would have to meet the margin requirement before the square off triggers. The square
off would trigger once the margin percentage goes down by 60%. In case the client is having
various categories of shares then the weighted average margin requirement would be
considered i.e. the combined effect of category of shares and margin percentage would be
considered. Incase after informing to client and the margin requirement is not fulfilled then
square off would take place and C category shares would be sold first and after it B and A
category would be sold. The selling would be done to the extent the margin comes to the
required level and after square off client would be informed for the same.
10. Interest Charge

It is to be noted here that, the interest on funding amount will be calculated on Daily
outstanding i.e. ledger debits and posted in client’s ledger at the end of the month. In case
the client fails to pay such interest , penal interest of additional 2% p.m. may be levied to the
client. The Ledger of client would be sent on quarterly intervals.
11. Repayment

Every sell off done by the client would be first adjusted against the interest charge and than
towards the loan. The client can repay the loan and again take it till the agreement is active.
If client want to repay and close the account, then client would have to repay whole debit
balance and the interest charge till the date of repayment and once there in no dues to client
the account can be closed and if any payout is due, it would be given to the client.

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CHAPTER ‐ XIII
Technology at Angel

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CHAPTER COVERAGE

1. How Importance of IT for angel

2. What are the Hardware requirements for our clients

3. What Service standards which angel follows for an ideal IT setup

4. Which are the different technologies which angel provides for
connectivity

5. For all exchanges: cash, F&O & commodities

6. Processes followed by IT at regional branches.

7. Annexure 1: Odin checklist: followed everyday

8. Annexure 2: Wan link testing: followed on weekly basis

9. Annexure 3: UPS testing: followed fortnightly

10. Angel – Advancing with technology

11. New Branch Commissioning

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1. Importance of IT for Angel

The rapid advances and the paradigm shift in the attitude towards
adopting the latest technology have changed the broking industry in

recent years.

This massive orientation has resulted in the process of cutting down
heavily on operational costs, the benefits of which are being ultimately

passed on to the clients.
Angel provides its customers with the latest technologies available. Thus,

technology speeds up, and further enhances, the flow of information

between the trading floor and the end customer, which is crucial in
today’s fast paced trading environment.

This, in turn, has given Angel a competitive edge over other broking
firms.

Fig. 1

2. Hardware requirements for the clients

Following are the Hardware requirements:
PC configuration: 2.2 GHz Core 2 Duo, 1 GB RAM, 80 GB
Hard Disk, CDROM / DVD ROM, K3/Mouse/LAN card
10/100.
Operating System: Microsoft Windows 2000 Professional
(with Service Pack 4) or XP Professional (with Service Pack 2).

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Effective Antivirus Software, which the clients have to regularly update
with latest patches, to avoid virus problem.
The clients also have to make sure they update the Operating System
with the latest Windows update patches which are released by Microsoft
from time to time.

Monitor Recommendation: 15” tft to be used for back office & marketing
people. 17” LCD can be used for dealing
17” LCD can be provided to HNI

3. Service standards which Angel follow for an ideal IT setup

Clean & Dust‐free server room with proper AC / cooling. Entry must be
restricted to selected IT personnel only.
Network/computer/power cables near sitting places should be properly
dressed & away from the body parts. All the cables should be properly
numbered.
Environment near the PC must be dust free. Proper UPS power with
proper earthing should be maintained. Avoid eatables, tea, coffee, soft
drinks near the PC.
Printers: Use proper stationary (Do not use papers punched with holes/
stapled paper/ improper recycled papers). Do not use any stickers for
network laser printers.
Maintain stock register for incoming/ outgoing material with all details.
All processes instructed from Angel IT‐CSO have to be followed strictly ‐
such as ODIN checklist, WAN link testing, Activity of the day report,
MIS specifications/Inventory details, UPS testing.
Patch Deployment – Windows Antivirus: Regularly update all O.S with
latest windows patches. Also have proper antivirus in place, which
should be regularly updated.

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4. Different technologies which Angel provides for
connectivity

Different technologies available for connectivity are:

Technologies available for connectivity are:

4.1. PSTN Dial Up:

Advantages:
• No Capex
• Fast & Easy deployment
• Good for initial setup

Disadvantages:
• Supports only one PC
• Costly for long hours.
• Depends on condition of line.

4.2. ISDN Dial Up:
• Better quality of line.
• Multiple terminals on one single line.
• Low Capex.

4.3. Private V‐Sat Network:

Advantages:
• Stable and cost effective connectivity.
• Not exposed to environmental condition.
• Faster delivery & deployment.
Disadvantages:

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• Initial onetime cost & recurring cost involved

• Higher response time.

4.4. ADSL / Fixed ISDN Line:

Advantages:
• Higher band‐width at lower cost.

• Fixed cost irrespective of usage.
• No capex – CPE provided by Tata.

Disadvantages:

• Availability depends on Tata feasibility.

4.5. Tulip – RF Wireless Connectivity

Advantages:

• One time installation cost & recurring cost involved
• Better response than V‐Sat.

• ISDN backup irrespective of the solution.
• Fixed cost irrespective of.

Disadvantages:
• Site feasibility is a must.

5. For all exchanges: Cash, F&O and Commodities.

5.1 ODIN Diet Snapshot: Single Client Code (Exhibit.1)

Exhibit.1

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5.2 ODIN Client Snapshot: Multiple Client Codes (Exhibit.2)

Exhibit.2

6. Processes followed by IT at regional branches:

Following “ODIN Checklist” daily as per the excel sheet.(Annexure.1)
Pro‐actively checking the UPS status, Network equipment, Servers on
daily basis.
Testing of ODIN Backup Server occasionally, to ensure that it is
functioning properly and can be used during disaster.
Hardware Requisition Slip for ordering any hardware from CSO.
Filling up Call Reports – for Desktops calls attended.
Testing of UPS on weekly basis for backup time.
Material movement form for inter‐branch transfer of material.
Branch visit report – IT person visiting the R.O from CSO.
Maintaining stock register for material received & issued.
Approval of price from IT, CSO before placing local orders.
Daily MIS report, Server downtime reports – reporting to CSO.
Carrying out preventive maintenance periodically from vendors for
printers UPS.

6.1. Documentation:

Maintaining proper filing system for installation reports, delivery challans,
vendor quotes, HRS, Daily call reports.

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Maintaining machine specifications up‐to‐date for desktops, servers,
printers, network equipment, WAN links & ISP’s, internet connectivity,
UPS, IP list for local LAN & server.
Maintaining test reports, WAN link testing and UPS testing.
(Annexure.2 & 3)

6.2. Server Hardening:

Server Harding is the succeeding service from the Server Scanning services,
by hardening or closing the vulnerable holes found in the Server.
Servers are depended upon to deliver data in a secure, reliable fashion.
There must be assurance that data integrity, confidentiality and availability
are maintained.
One of the required steps to attain this assurance is to ensure that the
servers are installed and maintained in a manner that prevents
unauthorized access, unauthorized use, and disruptions in service.
Server hardening is the first line of defense against a possible intrusion.
The process ensures that all non‐essential services are shut down and a
strict access control policy is put in place.
All relevant security updates are applied to the system to safeguard against
all known vulnerabilities.

6.3. Some of the general steps included in the Server Hardening procedure
include:

Installing the operating system from an IT approved source.
Applying vendor supplied patches, latest service packs & windows patches,
hot fixes.
Removing unnecessary software, system services, and drivers.
Setting security parameters, file protections and enabling audit logging
Implement a Hardware Power On password.
Disabling or changing the password of default accounts.
The server must run legally licensed versions of the operating system and
software.
The server must run only necessary services. All unnecessary services should
be shut down.
After the administrator determines what default accounts are required on a
server, all other default accounts must be disabled.

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6.4. Knowledge Management:

The idea behind having a knowledge base is to create a database for
sharing knowledge across all the Angel branches.
Solution for any problem worked out by a particular branch should get
updated in this system & all other branches can get the ready solution. This
will help us reduce our down‐time.
For this we have created user IDs for all the regional Hub’s to access this
software, with the help of which they can share knowledge regarding
client’s issues as well as server‐related issues.
Following are the two ways to access this software. (Exhibits.3&4)
1. Through MPLS : “http://196.1.115.136/helpdesk”
2. Through Internet : http://203.199.13.173/helpdesk

Exhibit.3

Exhibit.4

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Annexure.1

7. ODIN Checklist: Followed everyday

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333

Annexure.2

8. WAN Link Testing: Followed on weekly basis.

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334

Annexure.3

9. UPS Testing: Followed fortnightly

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335

10. Angel – Advancing with technology

Angel perennially endeavors to tender to all the clients the best of quality
and value‐added services that shall prove useful to their functioning.

It has always been Angel’s quest to make our services very easy,

convenient and comfortable for all our clients to access, utilize and reap
the benefits.

Angel has always laid the emphasis on technological innovations and has
believed that with better, faster, newer and more efficient technologies

coming in, the same should necessarily be forwarded to all our clients so
that they can have the best of services delivered to them.

We provide dedicated terminals both at the Branch premises and at the

premises of the client.

Our latest technology facilitates trades in BSE/NSE, Cash /Derivatives

Segment through a single connectivity.

We also enable installation of BOLT / NEAT terminals at remote places

via advanced connectivity technology.

11. New Branch Commissioning

We have an exclusive team at the CSO to handle new branch roll‐outs.

This team takes care of the entire setting‐up of upcoming offices across
India, right from the designing of the data center to implementation,
recruitment of IT personal, procurement of IT equipment, setting up of
processes, till the time the Data Centre is handed over to the operations
team.

Escalation Matrix

Network (022‐28358800)
ISDN, L/L , TATA Response
ADSL & Fixed ISDN VSAT SAAZ NMS Time
NAME Ext No. NAME Ext No. NAME Ext No.

Level Hema

0 Sachin Chandran 404 Immediate

Madhavi

Pawar 174
Level After 15
Vijay /Kiran Mohammadi
1 Naralkar 411 Siddiqui 297 min
Nayan
Uttekar 410 Kartik 185

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336

Malcom 231

Ramdas 231

Satish
Level Bhupendra After 30

2 Bhoir 440 Shekhar Birari 412 Kartik 388 min

Level After 45

3 Jayraj Joshi 423 Jayraj Joshi 426 Jayraj Joshi 426 min

Systems (022‐28358800)

Response
System Admin Desktop Application (Odin etc.) Time
NAME Ext No. NAME Ext No. NAME Ext No.
Level 408 / After 15
1 Jitesh/Uday 407 Dilesh/Vishal 407 / 433 Shetty 406 min
408 /

Uday 407 / 433 Roopesh 406

Level 408 / After 30
2 Randhir 409 Jitesh/Randhir 407 / 433 Vaibhav 406 min
408 /

Devang 406

Level Farhad After 45
3 Mavji 189 Farhad Mavji 189 Ajay Govale 408 min

Level Kuntesh

4 Desai 786

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CHAPTER – XIV
Commodities Operations

Page
338

CHAPTER COVERAGE

1. Introduction

2. Essential Reports to be viewed by branches

3. Deliveries & Settlement

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339

1. Introduction

The ensuing pages contain the list of procedures to be followed by the
branches in relation to Commodities Operations not specifically covered
elsewhere. Hence KYC, Banking, Compliance, Dealing, Risk Management,
Marketing procedures relating to commodities are not covered here.

The branches are expected to ensure compliance with these laid down
procedures.

The chapters are divided as follows:
• Functioning of Back Office Software
• Collaterals
• Deliveries & Settlement
• Commodities SB registration
• Help Line

2. Essential Reports to be viewed by branches

Exhibits related to Commodity Back Office Operations.
Angel Commodity Back Office.

Exhibit A.1

To begin with, the Branch should access Angel Back Office by going to our
Website at http://www.angelbackoffice.com/

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Exhibit A.2

Select the relevant Company, e.g.: Angel Commodities Broking (P) Ltd
NCDEX, for the purpose of logging in the system for either of the Segments
i.e. NCDEX & MCX.

User’s Login: Exhibit A.3

On selecting the Company, the login screen opens (Exhibit A.3)
Enter the distinctive User Id and Password allotted to the Branch, in order to
view the next screen.

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NCDEX Back office Main page. Exhibit A.4

On entering the user name & password, the above screen is displayed
(Exhibit A.3)
This is the main screen, through which all subsequent Reports can be
accessed, depending on the rights allocated to the Branch.

Links under the Back Office Report:

MCX Client‐Wise Margin:

Path: Share Accounting → Share Reports →FO Reports→ MCX Client‐
Wise Margin

This is a customized report which gives client‐wise basic funds status for the
segment , taking the Margin Levied on the client’s open position on a given
day into consideration.

We can see the Client Bill Amount (MTM) for the day, the Ledger Balance,
the Net Cash Available (after adjusting the Bill amount with the Ledger
Balance, the Collateral (i.e. Cash & Non Cash) Available, Total Margin (i.e.
Initial Margin, Exposure Margin & Additional Margin) and lastly, the Net
Funds (i.e. shortage /excess )after adjusting the Net Cash Available and the
Total margins.

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Exhibit A.5

MCX Confirmation Report:

Path: Share Accounting → Share Reports →FO Reports→ MCX
Confirmation Report.
The Confirmation report gives the details of the trades executed for a client on
a particular date. This report gives similar details as provided in the Contract
Note to a Client. The report displays details of the commodity and the contract
in which the client has traded along with its Order No, Trade No, Date &Time
of trade, Sell/Buy Quantity, Rate, Terminal No., and contract value, along
with the taxes levied on them.

Exhibit A.6

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MIS Report :

Path: Share Accounting → Share Reports →FO Reports→ MCX –MIS
Report.

The MIS Report consists of various customized reports which help one do
Business analysis.

Exhibit A.7

Sauda Summary :

This report gives the details of the total Saudas done by a client / Sub broker
for the selected period in the report. The report can be viewed Branch‐Wise,
Sub broker‐Wise, Client‐Wise, and Commodity – Expiry date‐Wise.

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Exhibit A.8

Net Position :

This report gives an important overview of the daily trading activities, with
details of a client’s Net Open Position for a commodity on a given Expiry date.

Exhibit A.9

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Note:
In this report the date is an important field, without which the data reflected
would be incorrect.

Turnover Report :

This report gives details of the Total Volumes generated and the Gross
Revenue earned through trading by the clients of a given branch, for a
selected date. The report can be viewed Branch‐Wise, Sub broker‐Wise,
Client‐Wise, and Commodity – Expiry date‐Wise. The report can be
customized by using the Option Report Type. The Turnover & the Levies
which give the details of other charges levied on the client trade like
Turnover /Transaction Charges, Stamp Duty will be displayed.

Exhibit A.10

Bill & Contract Printing:

Path : Share Accounting → Share Reports →NCDEX_Print_ Reports

• Through this option, the client / sub broker can print bills & contracts.

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Exhibit A.11

Finance accounting: Finance Report: Display Report:

The Link provides the Sub‐link for the financial details for the Client /Sub‐
broker/Branch.

Party Ledger:
As the name suggests, it shows the ledger of the client. The ledger consists of
the MTM Bill posting, the Banking entry, the Other Charges entry etc.

General Ledger:
The ledgers of the Sub broker Mapped under the branch can be obtained from
the General Ledger. The ledger may consist of the Provisions for the brokerage
Shared with the Sub broker by Angel, other Charges levied on the Subroker.

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Exhibit A.12

Utilities: Utilities service

The link gives way to further sub‐links like Client Details and Research
Report.

In Client Details, the report shows details of the Clients, mapped under each
Branch.
The report provides details like the Client Name &Code, his Address, and
the Branch Tag & the Sub broker Tag which the client is mapped under, as
well as the PAN card number, DP Account & Brokerage slab details, the
active / active Status along with the activation date.

The Angel Research report ‐ all the research views & material provided by
Angel can be seen through this link.

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Exhibit A.13

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3.Deliveries & Settlement

Commodity Physical Settlement
Introduction:

The deliveries in commodities should be planned well in advance as the
delivery involves:

1. Sales Tax Law / VAT laws of the state where the delivery center is
situated.
2. Separate Demat Account in NSDL & CDSL
3. Warehousing Cost
4. Other procedures :
The Commodities traded on the Exchange platform as on date can be broadly
classified into the following three categories
a. Compulsory delivery:
On the expiry of the contract, all the outstanding open positions mandatorily
result in delivery.
b. Seller option contract:
Delivery is marked to the corresponding buyer randomly, on receipt of the
valid delivery intention by the Seller to give delivery. Such buyers will
compulsorily have to take delivery, whether they have requested for delivery
or not.
c. Intention Matching Contracts:
On expiry, exchange matches Intentions for both the buyer and the seller.
Upon successful matching of request with request to commodity and
warehouse location, delivery is allocated.

For more details on delivery procedures, please visit NCDEX physical
delivery guide using the following path:
http://www.ncdex.com/Downloads/ClearingServices/21§2§Physical_Deliv
ery_Guide_06July07.pdf

Pre Requisites for Delivery

Apart from a trading account with the respective exchange, there are the
following pre requisites:

Commodity Demat Account

Deliveries may take place in Demat form or in the form of warehouse
receipts. It is mandatory to open an electronic (Demat) account with both the
depositories i.e. National Securities Depository Limited (NSDL) and Central
Depository Services (India) Limited (CDSL) for taking delivery of
commodities, since the pay‐out may be received at either of the depositories
and currently there is no provision for Inter‐depository transfers.

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Sales Tax / VAT Number:

Both seller & buyer should have sales tax registration at the location of the
warehouse. In case the client does not have a sales tax registration, he has to
appoint a C&F agent for the same. Angel Commodities Broking Pvt Ltd can
offer these services as a C&F agent exclusively for our clients in locations
where they do not have Sale Tax Registration. Presently, we have
registration numbers at Gujarat, Delhi, Madhya Pradesh, Tamil Nadu,
Maharashtra & Karnataka. Clients have to submit their / agent’s Sales Tax
information at the time of tendering their delivery intention. Buyer clients
have to make pay‐in for the relevant sales tax amount along with delivery
funds pay‐in as mentioned earlier. Pay‐out of sales tax amount will be given
to seller clients by E+5 day. Seller client has to generate and send the Invoice
to buyer client within 2 working days after Sales Tax Settlement is
completed. Buyer client will receive the bill after Sales Tax Settlement is
completed.

Delivery Policy at Angel:

1. All deliveries must be planned and intimated to the Head‐Office at least 5
days in advance of the contract expiry. The delivery may be either a delivery
of sale (obligation to give delivery) or a delivery of purchase (obligation to
take delivery). We are enclosing herewith standard formats (as Annexure 'A'
and 'B') for the same. The client must give their intimation as per the formats
enclosed. In case of intimation to take deliveries (Refer to Annexure 'A'), you
have to indicate your preferred location for deliveries. Preferred location is
only indicative of client's preference. That in no way means that the client
will inevitably get the delivery in the specified location. If the deliveries are
from centers other than the preferred location, the client will have to accept
his delivery in any other centre where the delivery is received and marked to
him by the Exchange.

2. If client is either giving or taking delivery, the onus to meet the Sales Tax or
VAT obligation lies with the client. In case he is appointing a C & F Agent,
he must intimate the same to the CSO in the prescribed format (As per
Annexure A & B)

3. All open positions of clients in respective contracts on the final expiry date
should be backed up by deliveries and/or funds, and the same is to be
intimated to the CSO at the time of making the request for delivery.

4. Defaults
The client has to bear all the penalties levied by the exchange on account of
defaults relating to deliveries, like sales tax number, Demat account number,
impure quality , position limits etc, as specified from time to time by the
Exchanges. The penalty percentages that the exchange levies depend upon

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351

the category under which the commodity falls, & the penalty percentages are
displayed in the contract specification available on the exchange website.

5. Margin
The client has to pay the tender period margin from the start of the tender
period till the expiry of contract. Tender Period refers to the trading hours
during the last 5 working days prior to, & including, the expiry date of the
contract.

Other additional information

1. ISIN Information
Once buyer/seller gets delivery in Demat form, he has to check the validity
of the ISIN. The validity of the ISIN could be checked on the Exchanges’
websites. The link for the same is
http://ncdex.com/marketdata/hist_isin_details.aspx (NCDEX)
http://www.mcxindia.com/demat.aspx (MCX).

Every ISIN has a validity date and a final expiry date. If the ISIN is valid on
the settlement date for the next expiry contract, he can sell the same in the
said expiry contract. If the validity period is over, he has to get the
commodity revalidated to give delivery on the Exchange platform. However,
if validity and final expiry dates are the same, then it cannot be sold on the
exchange platform. It has to be remitted and sold in the physical market.

ISIN Information

Final
ISIN Premium / Contact Contact
ISIN descriptor Validity Grade Expiry Discount(%) Address Number Person
Date
Behind
Armaan

Hotel

Jeera ‐ Near Hero
NCMSL 05 Honda
05 May 02767 ‐
INC000051119 Commodity Sep ‐0.10 Showroom
Multilink 2006 JEERA12 2006 Unjha‐ ‐
395996
Point Sidhpur
Highway
Unjha
384170

For example, in the above ISIN, the commodity is valid upto 05 May 2006
and its final expiry date is 05 Sep 2006. Thereby the client can sell the same
for contracts expiring upto April without any revalidation. For selling in
contracts from May 2006 upto August 2006, he can do the same by
revalidating the commodity. Since the above ISIN is expiring on 05 Sep 2006,
it cannot be sold in contracts expiring from September 2006 onwards and has

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to be compulsorily rematerialized as the same cannot be marked for delivery
at the exchange.

Note:
At the time of Re – validation, it is not necessary that the Validity of the ISIN
will be extended; it depends on the Commodity’s Quality.

2. Revalidation
The beneficiary holding the commodities under an expired ISIN cannot
deliver the commodities to the exchange and will make a request for
revalidation to the warehouse in the prescribed form. The client has to pay
the assaying charges applicable to the commodity. Once the commodity is
passed he gets the Demat credit with a new ISIN no.
Please note that there will be deduction in the quantity of the commodity
received after revalidation as per the standard deduction % prescribed by
the Exchanges applicable towards sampling, moisture loss etc.

3. Warehouse Cost
The warehouse cost has to be borne by the holder of the commodity till the
time he holds the commodity in the warehouse. Warehousing cost differs
from commodity to commodity as prescribed by the warehouses from time
to time.
In case of MCX, the exchange periodically issues circulars with respect to the
warehouse charges applicable to various commodities.
In case of NCDEX, the indicative warehouse charges for various
commodities are displayed in the following link
http://www.ncdex.com/ClearingServices/Clearing_Services_others.aspx

4. Remat
If client intends to take physical delivery, then he has to make a Remat
request. Remat request form has to be submitted at the DP. DP generates the
Remat request number. The client can contact the warehouse for the physical
delivery. The client can send his representative to the warehouse along with
an authority letter, photo id proof and the acknowledged remat request slip.

5. Websites
The following websites for MCX & NCDEX respectively can be referred to
for further details.
• http://www.mcxindia.com/
• http://www.ncdex.com/aboutus/index.aspx

Note:
For further understanding & clarification, please refer to the monthly
settlement calendar issued by the Exchanges from time to time.

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Annexure ‘A’
(On the client’s letterhead)

Intimation to take delivery

To,
Commodities Operations Team
Angel Commodities Broking Pvt Ltd.
G‐1 Akruti Trade Center, Road no – 7,
MIDC, Andheri (E) Mumbai‐400093
Fax No.28398850

Sub: Intention of Taking Physical delivery

Sir,

We wish to take the delivery of __________ (Commodity) of _________ (Quantity) at the
______ (Exchange) platform through ____________ (Name of the Commission Agent) in the
____________ (Commodity & Expiry) contract.
Following are further details:

Commodity ISIN Qty Location CDSL/NSDL

We request you to transfer the said Commodities to the Commodity Demat Account
mentioned below.
Sale Tax (VAT) details
Person/Entity Name & Address
State Sale Tax Number
VAT Registration Number

Demat A/c. details are (for CSDL):
DP Name:
DP ID:
A/C. No.:

Demat A/c. details are (for NSDL):
DP Name:
DP ID:
A/C. No.:

We certify that all the information mentioned above is correct and we undertake to maintain
all records in our books for necessary inspection and audit by the Exchange/Government
Authorities. We further confirm that the delivery given to the Agent as mentioned above shall
be deemed to be delivery received by us under the regulation.

Signature& Stamp of the client

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354

Annexure ‘B’
(On the client’s letterhead)

Intimation to give delivery
To,
Commodities Operations Team
Angel Commodities Broking Pvt Ltd.
G‐1 Akruti Trade Center, Road no – 7,
MIDC, Andheri (E) Mumbai‐400093
Fax No.28398850

Sub: Intention of Giving Physical delivery

Sir,

We would like to give the delivery of __________ (Commodity) of _________ (Quantity) at
the ______ (Exchange) platform through ____________ (Name of the Commission Agent) in
the ____________ (Commodity & Expiry) contract.
Following are further details:

Commodity ISIN Qty Location CDSL/NSDL

Sale Tax (VAT) details
Person/Entity Name & Address
State Sale Tax Number
VAT Registration Number

Demat A/c. details are (for CSDL):
DP Name:
DP ID:
A/C. No.:

Demat A/c. details are (for NSDL):
DP Name:
DP ID:
A/C. No.:

We certify that all the information mentioned above is correct and we undertake to maintain
all records in our books for necessary inspection and audit by the Exchange/Government
Authorities. We further confirm that the delivery given to the Agent as mentioned above shall
be deemed to be delivery received by us under the regulation.

Signature& Stamp of the client

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Helpline:

Concerned person Location Contact
No.
Mr. Vishal Kachalia Akruti 28358800‐ 471
Mr. Yogesh Shinde Akruti 28358800‐473
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356

CHAPTER ‐ XV
Quality Assurance

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357

CHAPTER COVERAGE

1. Definition of Quality

2. Key Benefits of Quality to an organization

3. Angel’s definition of Quality & QA Policy

4. Role of Quality Assurance Cell at Angel

5. BPS

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358

1. Definition of Quality:

The degree to which a set of inherent characteristics fulfills the
requirements.

This definition of quality could be further explained if we know ‘what do
customers require in terms of quality?’
Fig. 1
In short, Quality is nothing but our perception about QCS.

2. Key Benefits of Quality to an organization:

Fig. 2

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359

3. Angel’s Quality Definition:

Products & Services that totally satisfy and often exceed customer needs
& expectations, in all respects, to delight him.

4. Angel Quality Assurance Policy:

“We are committed to being the leader in providing World Class
Products & Services which exceed the expectations of our customers,
achieved by teamwork and a process of continual improvement”.

Fig. 3
Quality Assurance Cell structure

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360

4. Role of the Quality Assurance Cell at Angel:

FEEDBACK / CENTRALIZED HELPDESK

Helpdesk Process Flow:
Fig. 4
Help Desk at the CSO

The Help desk at the CSO is fully equipped to resolve all queries,
feedback, suggestions, escalations or grievances of branches, clients and
SB’s with regards to trading & other operational issues.

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Help Desk Queries : 022‐ 2835 5000

Client complaints @
QA cell (CSO)

st
Angel broking, 1
floor, premier feedback@ang

house, MIDC, eltrade.com
Andheri (e), M‐93

Fig. 5
The Help Desk at the CSO receives queries via phone, mails and post,
pertaining to all the processes or departments. This centralized desk
works under direct supervision of the Head of Operations and Quality
Assurance cell. This team is well versed with all the processes of Angel
which enables it to provide prompt resolutions to client’s queries. The
queries received relate to:

Back Office Software usage
• BO training to associates / clients.
• Resetting of back office user ID and Password
• Viewing the net positions
• Verifying details in Client Summary page
• Security holdings
• Client portfolio
• Open positions
• Deliveries expected
• Ledger positions
• Transaction details.

Back Office DP
• Viewing of the holdings
• Transaction charges
• DP ID
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362
• ISIN no.
• Resetting the password for using CROSS
• Training on other online DP reports and statements

Banking
• Pay – in & Pay – out details
• Errors in Pay‐ out markings
• Confirmations of pay – out cheques

KYC
• Change in personal details
• Change in bank details
• New a/c opening procedures
• Confirmation of required documents
• View brokerage slabs
• Shifting the code from one SBs / Branch to another SBs / Branch

Demat
• Checking the holdings in the pool a/c
• Demat status
• Information on corporate action
• Transfer of shares from pool a/c to DP a/c.

Miscellaneous

• Provide internal directory numbers to customers.
• Information regarding access to Risk management link
• Non‐ receipt of Contract bills
• Sauda confirmations
• Viewing open positions in commodities
• Providing other support functions.

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Helpdesk at Branches:

Pre‐Setting & Post‐Setting of a helpdesk at branches is the responsibility
of the QA cell at CSO, which involves the following:
Fig. 6
Currently, we have been successful in setting up CRM Desks at 68 branches across Country.

Help Desk Manager Software:
Help Desk Manager IP Address: ‐ http://203.199.13.173/helpdesk
Link: http://196.1.115.136/helpdesk
Unique features of Helpdesk Manager Software:
Fig. 7
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364

Core Activities of CSO Help Desk:

Fig. 8

Centralized Helpdesk can be contacted:
Postal Address : Quality Assurance
Angel Broking Ltd.
Quality Assurance Cell
1st Floor, Premier house,
Plot no‐ 38, Central road,
Above Citi Financial, MIDC,
Andheri (E), Mumbai – 400093

Monday to Friday : 9.00 a.m. to 8.00 p.m.
Saturday : 10.00 a.m. to 4.00 p.m.
Telephone no : 022 ‐ 2835 5000 (6 Lines)
Email ‐ id : feedback@angeltrade.com

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Training

Fig. 9

Branch Helpdesk:
Today Customer Service is employed by organizations to generate competitive advantage over
their competitors. Also in today’s economy, the best assets for an organization are its
customers/clients. Therefore it is essential to invest in driving customer satisfaction and improving
upon the quality of customer service.
Thus, Angel has come with the concept of Branch CRM desk, an initiative of QA. Today we are
successfully handling this desk at 74 branches.

CRM Training Module:
Customers are the core requirement for any business and as such there is a need to foster and
maintain great customer relationships. Quality Assurance Cell’s initiative is to enhance the
communication skills, leadership potential, personal effectiveness and effective selling skills among
the employees of the organization so that we can attain our customers delight.
Sub‐Broker Induction
One day seminar is coordinated by the QA cell on monthly basis for new Business Associates
associated with Mumbai Regional offices / Branches. For outstation Sub brokers the same is done
at respective Regional / Branch offices & depending on the size of associates converted during a
particular month.

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Agenda during the SB workshop:
Training sessions are conducted by the process owners. Sessions include:
Quality Assurance
E‐Broking
Commodities
Wealth Management Services
Research (Technical Analysis)
KYC
Risk Management
DP / Demat
Banking

Highlights:
o The Sub brokers receive the latest updates on products & services & important
operational processes.
o Training kit comprising of latest research report, brochures, Sub broker process
manual, compendium of circulars are distributed to SBs.
o SBs get an opportunity to clear all their doubts on operations part.
o Also they get an opportunity to interact one‐on‐one basis with our process owners.
o SBs can then cascade this information to clients maintaining healthy relationships with
clients; trying to attain customer delight

Feedback:
Feedback is collected from the SBs towards the end of every training session; the sub‐Brokers
give suggestions & express their requirements through this feedback form.
Format for Feedback form

Date:
Sub Broker Name: _______________________________________
Sub Broker Tag: ______________ Branch Name: _____________
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367
Dear Business Associate,
Thank you for joining us in the Training Programme. We would request you to share your valuable feedback.
1. Do you need further in‐depth training Programme on operational procedures?

Yes No

If yes, please specify in which topics ___________________________________
2. How would you rate our Training Programme?

Outstanding

Very Satisfactory

About average

Somewhat unsatisfactory

Would you like to specify anything particular?
___________________________________________________________________
___________________________________________________________________
3. How would you rate our Training Facility & Customer Relationship Management?

Outstanding
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368

Very Satisfactory

About average

Somewhat unsatisfactory
4. How would you rate our Training Faculty / Presentation?

Welcome Address Excellent Good Average

E‐broking Excellent Good Average

WMS Excellent Good Average

KYC Excellent Good Average

DP/Demat Excellent Good Average

Banking Excellent Good Average

Risk Management Excellent Good Average
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369

Technical Analysis Excellent Good Average

4. Your suggestion and overall observation on the Programme.
___________________________________________________________________
___________________________________________________________________
Thank you for your valuable feedback.
Quality Assurance
feedback@angeltrade.com www.angeltrade.com

Based on the feedback received from Sub‐brokers a report is generated.
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370

i
l
l
e
:
n
p
H
e
Induction Training for Mumbai Based Sub-Brokers
Overall Rating : Very Satisfactory
Help line:
The Sub-broker Induction Training was conducted on 5th May,2007 at CSO, Akruti Trade Centre.The participants have given a
positive response to our efforts & have felt very satisfactory after the training.The report is based on the feedback received
from Sub-broker participants, at the end of entire session. The sub-Brokers also gave suggestions & expressed their
Meghana Ganga
requirements through the feedback form.
Contact Person
Sbsupport@angeltrade.com
Attendance: - Branch Wise
Sr. No Branch Name Total no. of confirmations Received Present Absent
1 Fort 3 Nil 3
2 Borivali 3 Nil 3
(Akruti)
3 Acme 9 6 3
4 Vile Parle 4 2 2
371
Page
5 Thane 2 2 Nil
Premier House
Total : 21 10 11
Location

Feedback Details- ( Statistics out of 10 forms / participants)
Sample SB Workshop Feedback:
Quality Assurance Cell
Somewhat
Sr.No. Issues Outstanding Very Satisfactory About Average Not Commented
unsatisfactory
Rating for Induction

1 Programme Nil 10 Nil Nil Nil
Rating For Training

2 Facility & CRM 2 7 Nil Nil 1
Suggestions : -
4035 8600 (258)
→ More Advtg. / Mktg. Aids to be given to S-Bs
Tel no – Extn.
→ Weekly Reports & Circulars to be sent regularly
→ Conduct indepth operational trainings
→ Impart Knowledge & Information on Commodities , Technical Analysis , Back Office & E-broking
Front Office
The Front Office in any organization is the department responsible for the Brand image of the company. It
has an influence role of image building; it is the first and last point of contact for a customer.
QA has initiated in providing training to front office at Regional / branch offices. FO executives can assist
the Branch Managers and help him to have better control on facility and admin activities at the branch.
Fig. 10
Training for FO includes:
I Front office process manual
II Presentation & Interaction session
Corporate presentation
Products & Services
Operations Processes

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372

Communication Skills
Office Administration (Infrastructure & Facility)
Quality Standards
Housekeeping & Hospitality

III Vocational Counseling by Regional / Branch head
IV Sharing of KPA’s
Online Operation Trainings
Quality Assurance has taken an initiative to assist in providing online training through VNC for various
processes across all branches throughout India.
The Benefits of VNC training are as follows:
1) Easy accessibility
2) Cost Efficient
3) Effective utilization of time and resources.
VNC, or Virtual Network Computing, is software that makes it possible to view and interact with a computer
from any other computer or device connected to the internet. VNC is even cross‐platform, so a person using
a Windows‐based computer can connect to and interact with a Unix system without any problems
whatsoever.
Fig. 11

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373
Voice of Customers

The "Voice of Customer" (VOC) is a process used to capture the requirements/feedback from the customer
(internal or external) to match customer’s expectation on products and service quality. This process is all
about being proactive and innovative to improvise services according to customer needs.
At Angel, VOC is conducted for SBs and Clients across the branches It is conducted twice in a year to
Process Flow for VOC:
Fig. 12

Types of Survey:

Fig. 13
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374

Angel Satisfaction Survey‐(Client & Sub‐broker):
This is one the most important surveys conducted by the QA cell. In this survey, QA aims to gather a feedback
from Angel Business Associates across the country on the factors like service promptness, staff
responsiveness, resolutions provided, and understanding of their needs and problems; as also for their
clients. This helps to analyze and identify the performance of Branch with respect to the client servicing. This
in turn will help the BPS (Branch Process Standardization) team to standardize the Branch operations and
performance.
Quality Feedback Request
This is one of the unique initiatives taken by the Quality Assurance Cell to the get client feedback immediately
after the registration process. The Quality Feedback Form is send along with the Welcome Kit to our new
clients to get their feedback regarding our initial services provided to them. QA believes that customer must
be delighted from the time he gets associated with Angel.
Call Evaluation and Monitoring

Dealers Call Evaluation Process:
The objective of this process is to standardize dealer services in all branches. It mainly focuses on
maximizing the accuracy of trades executed via dealer terminals and providing the clients with the best
trade services.
Features:
Fig. 14

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375

Process Flowchart:
Fig. 15
• The call recording systems will be installed for dealers at all branches
• Weekly calls will be evaluated by a dedicated team at the CSO.
• MIS of the evaluation will be forwarded to the Branch Head and the Management.
Along with the above feedback mechanism, refresher and other trainings will be provided to the
dealers.

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Front Office Executive Call Evaluation Process:
Mock call evaluation & feedback are done on a monthly/ Quarterly basis for the front office
executives. This is to improve communication skills, call Quality & ensure / excel client
servicing. The evaluation is done on certain parameters which are already defined in the Front
office process manual. Each call is rated on a scale and the feedback (evaluation report) is
shared with the FO executives & Regional / branch managers once in month. One on one tele
counseling is given to each FO executive.

CSO Feedback Call Monitoring:
Call Monitoring is the key to improve Call Quality & enhance the outcome of customer service provided to
them.
As a Quality initiative, Angel has started with the Call Monitoring program for its Helpdesk executives at

CSO and is in a process to initiate it at the branches too.
Fig.4 depicts the Call Evaluation cycle.
It involves various activities like:
• Call Monitoring
• Call Evaluation
• Feedback
• Implementation
*HDE ‐> Help Desk Executive
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377
Call Monitoring Cycle

Recording of
calls through
Call hitting CSO
Help Desk. Help ‐ Desk
Manager

Implementation Query
on Feedback. evaluation by
Supervisor

Feedback /
Corrective
measures given
Fig. 16
Training and Evaluation for Help desk:
In order to have the knowledge enhancement for help desk team, periodic test is conducted for the team
.The test papers are designed for separate processes in the objective form so as to check their current skill
sets on various operational processes as displayed in sample test papers.
The test series are reviewed by the process owners and thereby training is imparted to them on the
respective areas to enhance their process knowledge.
Branch CRM desk Call Monitoring:
This is a new initiative taken by quality assurance team. The calls of the CRM desk based across the
branches will be evaluated by CSO and feedback will be provided to them in order to improve on the
quality of the services provided by the customer through various parameters.
Hence, this process will enhance the quality service to customers at all touch points which will lead to
“Customer Delight”.
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378
Business Process Standardization or BPS
BPS is a QA initiative with a mission to standardize processes throughout Angel branches. This
process aims at building a bridge to connect all Angelites across the country to CSO in order to
build a uniform system and help share best practices to support our effort to achieve 'Customer
Delight'.
Fig. 17
Fig. 18
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379

Branding through Quality:
Setting Basic Quality Standards which brings uniformity across Angel for all departmental functions (Recruitment,
BD, Dealing & RM, Quality assurance, Facility & research) across branches. Also, it keeps a check on the practices
which have an impact on Customer service and make the needed changes and to continuously work at providing
'Good Service' to all Angel customers across the nation.
Standard Operating Procedures (SOP):
A Standard Operating Procedures checklist guides us to follow all mandatory process requirements and also
keep a check on any non‐compliant practices. It Identifies knowledge and skill gaps at the Branches and
recommend necessary trainings or role reversals will also be a part of this process study.
Ops process wise checklist covers:
• Risk Management
• Dealing
• Banking
• KYC
• DP / Demat
• Branch Quality STD’s
• Facility
• Help Desk
• Business development (B2C)
• Compliance
• HR
• MF Operations
• IT

Continual development plan:

The BPS is also a step to build a culture of continuous improvement across Angel, wherein it becomes a part

of life. In order to drive this the 3rd important part of the BPS is the Process & Skill Up‐gradation and Support Plan
which translates in the form of:‐
• Quarterly Training calendar
• Periodical review of BPS actionable

Quarterly Training calendar
The BPS team submits a list of training needs which they have identified during their study of the branch. This
includes Skill, Knowledge and also Behavior related gaps at the Branch. The team also recommends the necessary
trainings or role reversals. The Training & Development department at CSO then liaison with the branch manager
and roll out a training calendar.
The Training modules are customized as per the gaps identified and any new tools introduced to make the
processes more efficient.
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380
Periodical review of BPS actionable
Regular reviews of the actions agreed on will help the branches connect to the CSO and any support needed to
help the Branch achieve the ideal standard can be timely provided. There is a yearly follow‐up calendar gets
issued for the same.
Branch process standardization flow

Fig. 19
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381

Fig. 20
Ratings / Rankings:
Rating and Ranking Process is initiated in order to scale improvements towards BPS initiative in regions and
branches. The activity is carried out by QA team in cord with CSO Operations Team. Rating process would help
branches to understand their current standings w.r.t different processes and areas for improvement.
Branches are rated on quarterly basis on different processes and are ranked on overall performance which
enables CSO & branches to understand their current efficiency level. Ratings and rankings acts a Performance
Barometer for BPS which further creates a healthy competition among all branches nationwide.
Root cause analysis (RCA):

Root cause analysis report is generated in order to understand the key factors which are making negative
deviation for the process. This report helps CSO operations team to understand the quality level of any process
and the reason for its standing at the current scenario. RCA Report is being releases at the end of every
quarter. Format of the RCA report is been attached in Appendices:
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382
Branch Precommissioning Desk:
Objective:
Enterprise to maintain collaborative efforts towards a new RO / branch set up, to achieve
standardization, cut down on TAT for operation & ultimately helps stream line branch activities.
Core Activities:
1) Branch Precommissioning Manual.
2) Establish a branch – CSO connect.
3) Observe & maintain precom checklist.
4) Receive Precom requirements (e.g. Branding, Admin, IT set up).
5) Coordinate with depts. at CSO & follow up.
6) Help the Regional Director / RM to obtain a final go ahead for start of ops.

Once all the requirements as per precom checklist have been fulfilled & formalities are completed by the RO
/ branch, necessary standards are achieved; the precom desk obtains a NOC from CSO HOD’s.
NOC format

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383

Based on the NOCs a ‘certificate of completion’ is issued to the new RO/branch.

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384

Checklist I: Pre‐ commissioning
Branch Pre‐commissioning checklist
DEPT WORK
Process RESPONSIBLE STATUS REMARKS
Mandatory Requirements

Application for electricity and Telephone
connectivity
Registration of shops and establishment license
SEBI registration certificate.
Requirements for CTCL IDs (NCFM Certificates)
NOC for Generators
NOC for Earthing Pit
VSAT NOC if required
Feasibility Check & finalizing for Service provider
Signage permission from municipality (if reqd).
Awareness Pre‐Commissioning manual
Branch Structure
Target date of Commissioning
Region
Branch Head & contact no
Branch Address
Total Area
Flooring
Color code (walls, furniture)
Reception
Managers cabin
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385
Meeting room
Dealing room
Back office
Server room
Store room
Pantry and washroom area
Cabinets and drawers
Glass coding and soft boards
Branch Requirements
Fire Extinguisher
Water Dispenser or supply of Mineral water
Bottles
Cash safe
Tool kit
Lcds
Office Printers
EPABX (MOH, Welcome note, PRI)
No: of telephone lines required
Courier Tie up
Installation Of Air Conditioners
UPS / Generator
Compliance Boards
BSE /NSE Boards
Commodities
F&O Board
DP Id Board
Promotional Materials
OUTSIDE BOARD / Signage/ Glow Sign
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386
Internal posters
Envelopes
Leaflets and Brochures
Research Reports: (Weekly reports, Knowledge
series, Budget report
Visiting Cards, letter heads
Display Stand
QA Dispenser
Sample Client Welcome Kit
Canopy (for launch program)
A/Cs
Subsidiary bank account
Cash Verification certificate
Petty cash policy document and Vouchers
Connectivity
VSAT / LEASED LINE / ISDN / ADSL
Installation of VSAT
NSE
BSE
NCDEX
MCX
IT Requirements
IT personnel
Technical training for staff
No. of Computers Required/To be acquired from
CSO
VSAT Connectivity
Bill PRINTERS
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387
Connectivity Devices
Servers
INTERNET CONNECTIVITY
preparing the network design
Internal Cabling
UPS for Server room
designing a server room like flooring etc.
Rack for Servers & networking Equipments,
modems etc
Air conditioning for Server room
Selection of IP scheme
DHCP Server setup
MPLS connectivity for Back office & admin
Segregation of LAN & WAN setup with proper
access‐list
Server installation & hardening
Odin installation
ISDN
Broadband connection
Awareness of Manuals
Pre commissioning
HR Manual
Branch Process Manual
Sales Process Manual
SB Manual (RO copy)
STAFF REQUIREMENT
Total no of Staff
No. of Sales/Marketing B2B or B2C
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388
Dealers.
Risk Management
Banking
CRM & FO exec
DP Demat
Subbroker Registration
KYC
No. of Office boys & Security
IT Person
Submission of Employee documents
Appointment Letters.
Creation of Back office ID for Branch.
Creation of E‐mail Id for Branch Staff.
Hr Induction
Salary Accounts of Employees
Creation of Corporate Employee card
Functional Trainings and Online Test
DP Demat
Kyc
SB regn
Banking
Sales (online Test)
Risk Management
Dealing
Launch
Soft Launch
Launch Event( if any, pls mention the schedule)
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389

Helplines:
Contact Person Designation Location Tel no – Extn.

Ms. Fatima Shaikh Sr. Manager ‐ QA Premier House (022) 24035 8600 – 3

Mr. Siddharth Sathe AVP‐ QA Premier House (022) 24035 8600 – 2

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390

Central Support & Registered Office:
Akruti Trade Centre, Road No ‐ 7, MIDC, Andheri (E), Mumbai ‐ 400 093.
Tel : (022) 2835 8800 / 3083 7700 Fax: (022) 2835 8811

Corporate Office:
612, Acme Plaza, M.V. Road, Opp. Sangam Cinema, Andheri (E), Mumbai ‐ 400 059.
Tel : (022) 4000 3600 / 2835 9600 Fax: (022) 4000 3699

Premier House Office:
1st Floor, Premier House, Plot No‐38, Central Road, Above Citi Financial,
MIDC, Andheri (E), Mumbai – 400 093. Tel: 4035 8600

Visit us at : www.angeltrade.com
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391

Branch Process Manual-Feb09

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Version 4.

Sr. No Particulars Page No.

II Compliance 19‐38

10 Annexures 30‐37

10 Secondary Market : a) Stock Exchange 95‐99

11 Products in Secondary Markets 99

12 Products and Services we offer at Angel 100

14 Miscellaneous: a) Corporate actions 104‐111

15 Dealing BPS Checklist 111

10 Useful utilities and link for DP services (cross net) 124

11 Pay‐in shortage confirmation 129

12 Pay‐out process and shortage confirmation 130

13 Auction Bills 133

14 Marking of shares for F & O collateral and margin reports 133

15 Corporate actions 135

16 Important notes 136

17 Additional useful utilities/ links for DP & Demat services 137

18 DP/ Demat checklist 137

5 Process for requesting for a pay‐out 160‐175

10 Banking Checklist 210

IX Portfolio Management Services 222‐230

10 Documents necessary for PMS 229

10 About Angel’s IPO Distribution (Pre and post IPO process) 259

11 Annexure 268

10 Benefits of Online and Offline system 299

11 F&O margin violation report 299

12 Case Studies: F&O Margin Violation Report against F&O 300

14 Penal Charges 306

15 Risk Management checklist 310

XIII Margin Funding 311‐323

10 Interest Charge 323

11 Repayment 323

10 Angel advancing with technology 336

11 New Branch Commissioning 336

Contact Person Designation Location Tel no – Extn

6.4. Welcome Kit – to track the status of the Welcome Kit of each new

Individual Corporate Individual Corporate

Ensure Clients have submitted all required Documentary

Verify copies of Documents received against Originals, and

Data entry is being done in BO and the data entry number

In case client has account in one exchange, but has traded

6 Sub- broker and Client tags 2 0

Contact Person Designation Location Tel no ‐ Ext

Mr. Deepak Redekar Manager ‐ KYC V Mall (022) 3083 7400 ‐ 423

Mr. Subodh Salvi Asst. Manager ‐ KYC V Mall (022) 3083 7400 ‐ 444

Mr. Sounak Banerjee Manager – QA Premier (022) 40358600 ‐ 288

Issuers of Investors in Intermediaries

Limited Retail Institutions Main Broker

Listed Individuals / Sub-Broker

BSE NSE NCDEX MCX

Contract Note is a confirmation of trades done on a particular day on behalf of the client by a

An investor may subscribe to issues made by corporates in the primary market. In the primary

Qty. Price (Rs.) Qty. Price (Rs.)

1000 50.25 2000 50.35

500 50.10 1000 50.40

550 50.05 1500 50.50

2500 50.00 3000 50.55

1300 49.85 1450 50.65

The first day of the no‐delivery period is the ex‐date. If there is any corporate benefits such as

T+2 : Wednesday Delivery in Angel Pool

T+3 : Thursday Transfer to DP

T+2 : Wednesday Delivery before 10:30AM

T+3 : Thursday Market Auction