Original PDF preview
If the preview is unavailable in your browser, open the original PDF in a new tab or download it using the controls above.
Accessible text alternative
Generated using embedded text. This HTML companion is provided for assistive technology and text reflow. Open the original PDF.
POLICY FOR VOLUNTARY
FREEZING OF ONLINE ACCESS
OF CLIENT’S TRADING
ACCOUNT
Version 1 dated June 28, 2024
Policy for voluntary freeze of online access of client’s trading account Ver. 1 – Jun 2024
-1-
Contents
Sr. Particulars Page
No. No.
1 Background 3
2 Scope 3
3 Framework for voluntary freeze / unfreeze of online access of 3 to 5
client’s tradingaccount
4 Review 5
Policy for voluntary freeze of online access of client’s trading account Ver. 1 – Jun 2024
-2-
Policy for voluntary freezing of client’s online access
1. Background :
SEBI vide it’s circular SEBI/HO/MIRSD/POD-1/P/CIR/2024/4 dated
January 12, 2024 and Exchanges vide their circulars dated April 08, 2024
mandated trading members to provide the facility of voluntary
freezing/blocking the online access of the trading account to their clients on
account of suspicious activities.
The said circular also requires the trading members to frame a policy in line
with the framework specified by the Exchanges, which shall be the part of
the trading member’s Risk Management Policy. The trading members shall
disclose the said policy on their website. The said policy shall also form a
part of the account opening kit for all new clients onboarded with effect from
July 01, 2024.
2. Scope:
This policy shall be applicable as and when clients requires to freeze / block
online access to their trading account and subsequently desires to unfreeze
the same.
3. Framework for voluntary freezing of online access of client’s trading
account –
a. Request for freezing
i. Client may request for voluntary freezing / blocking the online access to
their trading account through any one of the following modes that shall
be made –
a) SMS from registered mobile number to our dedicated mobile
number for the above purpose that is 8850451844
b) Trading Member’s App / website
c) Any other legally verifiable mechanism.
d) CHATBOT
ii. Client Validation :
Client shall log in to the mobile application/web trading
application and post 2-factor authentication (password and
OTP). Hence the identity of the client shall be validated.
iii. The client shall submit request for freeze.
Policy for voluntary freeze of online access of client’s trading account Ver. 1 – Jun 2024
-3-
iv. On receipt of such request, the online access of the client's trading
account shall be freezed/blocked and simultaneously all the pending
orders including ‘Good till date’ and Equity SIP orders shall be
cancelled.
v. Post freezing/blocking the client’s trading account, a communication
shall be sent on the registered mobile number and registered e-mail ID
of the client, stating that the online access to the trading account has
been frozen/blocked. The communication shall also provide the details
of all pending orders in the client’s trading account, that have been
cancelled along with the process of re-enablement for getting the online
access to the trading account
vi. Details of open positions (if any) shall also be communicated to the
client along with contract expiry information within such time as
prescribed by regulators. This will eliminate the risk of unwanted
delivery settlement.
vii. Once the online access of the trading account is freezed / blocked such
client may place orders through alternate channels such as call and
trade.
b. Request for Un-freezing
i. Client may request for unfreezing / unblocking the online access to
their trading account through any one of the following modes that shall
be made –
a) SMS from registered mobile number to our dedicated
mobile number for the above purpose that is 8850451844
b) Trading Member’s App / website
c) Any other legally verifiable mechanism.
d) CHATBOT
ii. Once the client tries to login, client will be provided a link to request for
unfreeze of the trading account (since the online access of the client is
freezed / blocked).
iii. Client then needs to authenticate himself by entering the following
details –
Demat account details
Trading ID / Login ID
PAN
Date of Birth
iv. Once the abovementioned data is entered, an OTP shall be triggered to
the registered email id and mobile number of the client.
v. On successful OTP authentication, the online access shall be unfreezed
immediately.
vi. An email acknowledgement shall also be sent to the client informing
him / her of the unfreeze request and the date by which online access
Policy for voluntary freeze of online access of client’s trading account Ver. 1 – Jun 2024
-4-
shall be activated.
vii. On successful reactivation client shall be able to login using
(Traditional login / MPIN / Finger Print / Face ID).
c. Important points
i. All logs of freeze and unfreeze request and communications sent shall
be maintained for audit trail.
ii. Freezing/blocking is only for the online access to the client’s trading
account, and there shall be no restrictions on the Risk Management
activities of HSL.
iii. The request for freezing/ blocking does not constitute request for
marking client Unique Client Code (UCC) as inactive in the Exchange
records.
iv. This policy shall be informed to all clients and shall also be a part of the
account opening kit for all accounts opened with effect from July 01,
2024.
v. The freeze, unfreeze, issue of communication shall be within the
timelines specified by SEBI / Exchanges in this regard.
4. Policy Review :
The said policy shall be a part of K M S S T O C K B R O K I N G C O M P A N Y
P R I V A T E L I M I T E D Risk Management Policy and shall be reviewed along
with the said policy on a half yearly basis.
Policy for voluntary freeze of online access of client’s trading account Ver. 1 – Jun 2024
-5-