ERROR ACCOUNT POLICY

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KMS STOCK BROKING CO PVT LTD
Error policy to handle client code modifications
1. Trades are executed in respective clients account and are not transferred from one client code to
another client code or from client code to pro or vice-versa in the back office of the member.

2. Modifications of Client codes of trades on the Exchange platform, if any, are done only to rectify a
genuine error in entry of client code at the time of placing/ modifying the related order as per the
provisions of Circular Ref. No.: NSE/INVG/2011/670, dated August 26, 2011).The following would
constitute genuine errors with regard to client code modifications:
• Error due to communication and/or punching or typing such that the original client code/name and
the modified client code/name are similar to each other.
• Modification within relatives (‘Relative’ for this purpose would mean “Relative” as defined under the
Companies Act, 1956).

3. Shifting of any trade on account of genuine error (institutional or non institutional) to error account
are subsequently liquidated/closed out in the market and are not shifted to other client code.

4. “Error Accounts” are classified properly and UCC uploaded to Exchanges.

5. Trades transferred to ‘Error Accounts’ are reviewed/monitored properly to check the genuineness
and to prevent the use of client code modification facility for purposes other than correcting mistakes
arising out of client code order entry

6. The trades modified by the member to the “Error Code” has been settled in Error Account.

7. This policy would be modified time to time as per circulars of SEBI/Exchanges