The parameters of a legal agreement between you and Butterfly Broking Private Limited(BBPL) are as follows.
Important information regarding the terms and conditions that govern your account with BBPL, Member of the NSE, enrolled as a stock broker with SEBI Registration No. INZ000308735 with the Securities & Exchange Board of India ("SEBI"). Your use and access to your account are contingent upon your adherence to all the terms and conditions that are explicitly stated in this document. Kindly review and make a note of this page for your future reference.Under the Companies Act, Butterfly Broking Private Limited, whose registered office is at 143 B Wing, Sanjay Building, Mittal Industrial Estate, Andheri East, Mumbai 400059, owns, operates, and maintains the website.
It is important to acknowledge that the information presented herein is susceptible to modification without prior notification.
Prior to utilizing online trading services, the client is required to fulfil the registration procedure as periodically specified. The Client shall register as a client in accordance with the guidelines provided on the website.During the signup procedure, the client grants BBPL complete and unrestricted permission to retrieve the KYC data and other documents necessary for account opening from CKYC/CVL KRA/DigiLocker.
The client shall be granted a trading password and username by BBPL to access the Online Trading facilities via the BBPL website, telephone, or any other method deemed appropriate by BBPL to utilize the services. BBPL may additionally furnish the client with the username and password necessary to retrieve diverse reports, among other things, from its back-office. All regulations pertaining to the utilization, resetting, and alteration of said credentials shall be dictated by the content available on the website.
The Client acknowledges that the initial password is generated by the BBPL Online Trading System, a fact that BBPL is also cognizant of. The Client consents and pledges to modify his initial password as soon as he receives it. The Client acknowledges that BBPL does not possess knowledge of or access to subsequent credentials.
The client shall have full responsibility for maintaining the confidentiality and security of the username and password. Additionally, the client shall be held solely liable for any orders entered or transactions completed via the BBPL Online Trading System using the client's username and/or password, regardless of whether that person was authorized to do so.
You acknowledge and confirm that you are the author of any instructions established through your online trading account, which necessitates the use of your unique logon credentials each time.
Your Login ID, Password, DOB/PAN, and any other login/trading account information are confidential and known only to you. Your trading account information, logon preferences, and combinations should never be disclosed to a third party. You agree that if you disclose any of these login credentials to a third party, you will be held indemnified for any and all risks and liabilities that may arise as a result of actions or instructions executed from your account using those credentials. BBPL, neither independently nor through any of its agents/employees/directors, shall request from you in any way any authentication information (password/OTP).
The Client shall notify BBPL without delay of any unauthorized use of the Client's Username or Password, along with complete information regarding the unauthorised use, including the date, manner, and transactions conducted in connection with the unauthorised use.
The Client affirms that he possesses complete knowledge and comprehension of the hazards linked to utilizing internet-based trading services, such as the potential for a third party to exploit and misuse his Username and/or Password, as well as the risk of an unauthorized individual hacking into the Client's account on the BBPL Online Trading System and routing orders through the System on the Client's behalf.
Instructions and orders for the purchase, sale, or other transactions involving securities that are transmitted via the BBPL Online Trading System using the Client's Username shall be considered as if they were provided by the Client.
The client consents to the disclosure of pertinent details, including the customer user identification number, and any additional information that may be necessary for order placement via commerce (recorded telephone) in order to ascertain the client's identity. The contracts and transactions executed in furtherance of the orders and instructions, as well as their settlement, shall be governed by the Exchange Provisions.
BBPL reserves the right to impose and modify restrictions on orders placed by clients via its online trading system from time to time. These restrictions may include limits on exposure, turnover, the quantity, value, and type of securities that can be ordered, the companies that permit orders on securities, and more. The Client acknowledges and consents that BBPL may be obligated to promptly modify, decrease, or enforce new limits based on its risk assessment and other pertinent factors. BBPL reserves the right to do so without providing advance notice to the Client. The Client acknowledges and agrees that BBPL shall not be held liable for any such limitation variation, imposition, reduction, or extension, or for the Client's incapability to execute an order via the BBPL Online Trading System as a result of such limitation variation, imposition, or reduction. The Client acknowledges and agrees that BBPL may prohibit or restrict the Client's ability to trade in securities or place orders through BBPL at any time, at its sole discretion and without prior notice.
Despite the fact that orders are typically transmitted to the computer systems of the Exchange within a few seconds of the client placing the order on the BBPL Online Trading System, BBPL shall not be liable for any loss or delay in the execution of any order.
The client consents to BBPL imposing scrip-wise monitoring or similar conditions pertaining to scrip-wise limits, among others. Additionally, the client acknowledges that BBPL reserves the right to impose a variety of surveillance measures, which may vary from client to client depending on BBPL's risk assessment and other pertinent factors.
When a market order is placed, the client consents to receiving the price at which the order is executed by the computer system of the exchange. This price may differ from the current market price of the security at the time the order is input into the BBPL Online Trading System.
The policies establish a maximum order limit of one crore rupees per order. Customers attempting to place orders in excess of one crore rupees will have their orders declined. Customers may also opt to divide the bulk order into basket purchases.
The client consents that the system shall forward to the Exchange all orders placed via all the available channels
BBPL shall consider the online confirmation it delivers to the client via electronic mail or SMS once the order or trade has been executed. This confirmation shall serve as proof of delivery. Whether delivered to the client via electronic mail or another electronic method, it shall be the client's obligation to promptly review all confirmations of transactions, cancellations, or orders. The client shall have the obligation to inquire further with BBPL regarding any confirmations that fail to reach him within the designated time frame.
Any errors in the executed transactions' report, confirmation, or contract note (including execution prices, scripts, or quantities) must be reported in writing to BBPL via fax or electronic mail within twenty-four hours of receipt of the relevant report, confirmation, or contract note. The client shall provide written notification to BBPL via electronic mail or facsimile of any additional discrepancies in the confirmation or account within twenty-four hours from the date of receipt of the initial notice. BBPL shall have the absolute authority to approve or reject any objection raised by the client.
BBPL may experience a temporary lapse in the receipt of transaction status reports from the relevant exchanges or other relevant parties concerning contracts or transactions that it has executed on behalf of its clients. As a result, BBPL has the authority to provide the client with delayed reports regarding transactions that were previously undisclosed to him due to expiration, cancellation, or execution. The client agrees that BBPL is not liable for any losses incurred as a result of any losses caused by late reports, statements, or defects in the reports/statements that are generated by or received from an exchange.
BBPL shall issue contract notes within twenty-four hours of the execution of the transaction, in accordance with the SEBI (Brokers and Sub-Brokers) Rules and Regulations, 1992. If issued in physical form, such a contract note shall be courier-delivered by BBPL to the address specified in this agreement or to any other address the client expressly notifies BBPL. The client consents to BBPL issuing the contract note in electronic format, which shall be delivered to the client-provided email address. In the event that the Client fails to provide written notification of a change in their correspondence address, BBPL shall not be liable for the non-receipt of the trade confirmation. The client acknowledges that promptly reviewing the trade confirmations, contract notes, invoices, or statements of account after their receipt is his responsibility. All confirmations and statements of this nature shall be considered accepted as accurate if the client fails to provide written objections to any of the contents of the trade confirmation or notification to BBPL within a period of 24 hours.
The client agrees that the order may be rejected if, for any reason or under any circumstance, the markets close prior to the Exchange's acceptance of the order. Additionally, the client consents to BBPL's prerogative to reject orders for any reason that the exchange may deem appropriate. The client acknowledges and consents that in the event the Exchange rejects an order, the order shall remain declined and shall not be reprocessed. BBPL reserves the right to decline any order submitted through its website or otherwise for any reason, including but not limited to the following: insufficient funds in the client's trading account, non-availability of securities in the client's Demat account with a designated depository participant, insufficient margin amount if the client chooses margin trading, suspension of scrip-specific trading activities by or on an Exchange, and the application of applicable regulations.
The client agrees that BBPL shall have the right to consider the order as having expired if it is not accepted on the website for any reason. The client possesses knowledge that the electronic trading systems, whether located at the Exchange or in the BBPL facilities, are susceptible to transient interruptions, malfunctions, or failures. Should trade orders not be executed or trades be cancelled as a result of such occurrences or vulnerabilities caused by system or link failure, disruption, or breakdown, BBPL reserves the right to cancel the relevant request or requests with the client and shall not be obligated to carry out the client's desired transactions. Nevertheless, BBPL shall not be held liable for any damages or losses that the Client may incur as a result of such unforeseen circumstances beyond its control.
An off-market transaction occurs when a client uses their trading and demat accounts to execute market transactions through the exchange by providing instructions on their online trading account. This authorization or consent is pertinent to both accounts. Without your consent, the authorization or assent shall not be valid for BBPL to execute any off-market transactions from your account. All off-market transactions shall be executed with your express consent and are not covered by this authorization. Permission and consent are not granted for BBPL to establish an email account on your behalf for the purpose of receiving pertinent communications. BBPL shall not attempt to access an email account on your behalf for any reason associated with this authorization. Additional criteria and limits may be established and are subject to modification at any time in accordance with BBPL's internal policies and the Depositories' rules and instructions.
You grant BBPL the authority to uphold records of all transactions, manage a portfolio view of Your holdings/securities, and provide you with notifications regarding each transaction or instruction executed from Your account through any means possible, including but not limited to emails and notifications from Your trading account.
For auditing purposes, a log of all instructions and transactions entered by you will be maintained; such records may or may not be accessible via the back-office of your online trading account logon.
All logins and consents from clients are encrypted with 256 bits of SSL-certified security. Your every transaction and instruction is protected by a robust firewall. In order to ensure information security and preserve the origin of transactions and instructions, BBPL may or may not retain for a limited time information such as the IP address, device used, date, and time of those activities.
If the client fails to meet the delivery deadline, the subsequent procedures will be implemented: The act of a seller neglecting to transfer the shares to the exchange is referred to as "short delivery." This typically transpires when intra-day short positions become unviable to close due to illiquidity or when equities reach the upper circuit of the exchange. The following are the distinct repercussions of short delivery for the Buyer and the Seller:
As a Buyer
The closeout price will be the highest price documented for that scrip on the exchange during the settlement period of the contract in question and until the date of auction/close out; alternatively, it may be 20% higher than the exchange's official closing price on the day auction offers are requested (or, if no such price is available on that day, the official closing price from the trading day immediately prior to the auction/close out).
As a Seller
The quantity blocked for short delivery shall be released subsequent to the conclusion of the auction settlement process, subject to any deductions required by the close out policy.
Non-Delivery Interval
When there is no "no-delivery period" for corporate actions involving securities and short deliveries of cum transactions that cannot be auctioned on a cum basis or where the cum basis auction payout occurs after the book closure/record date, all such cases shall be closed out at the settlement price until the day of the auction.
A correlation must be established between transactional alerts and the client information that is accessible via them. The correlation between alerts and client/group of client information would aid trading members in identifying, mitigating, and managing such transactions, thereby reducing business risk.
You grant BBPL permission to facilitate the transfer of pay-ins from your trading and demat account to its pool account for the purpose of instructing or selecting scrips/shares that you have chosen. The pool accounts to which BBPL refers here are subject to change at any time.
You grant BBPL permission to deposit/transfer, upon allotment, to my beneficial proprietor demat account with BBPL, the securities, debentures, units of mutual funds, and/or any other investment products applied per your instructions, through your BBPL trading account. The early pay-in account information and settlement account numbers of BBPL are subject to change or update at any time.
Upon notification that BBPL has erroneously deducted funds from your demat account, the securities or shares in question shall be promptly refunded to your account. You acknowledge and consent to the potential occurrence of this circumstance, and grant BBPL permission to reverse the transfer of said securities to your account once the error is discovered.
It is strictly prohibited for any individual to map or associate a Demat account of another broker with your BBPL trading account at BBPL Securities Private Limited. This implies that a Demat account held with another broker cannot be linked or connected to a BBPL trading account.
The Client consents and is obligated to deposit with BBPL without delay any cash, securities, or other acceptable security that BBPL may demand in the form of margin. The Client agrees that BBPL shall have the right to require the Client to deposit a margin with BBPL in excess of what the Exchange specifies. Additionally, BBPL reserves the right to require the Client to maintain in its possession permanently a margin of a value it specifies for as long as the Client wishes to utilize BBPL's Online Trading Service. There will be no interest accrued on the margin. By appropriating the relevant amount of cash or selling or transferring all or a portion of the Securities comprising the Margin, BBPL shall have the absolute and irrevocable authority to set off a portion or the entirety of the Margin against any obligations of the Client or a member of the Client's group (as defined in the terms of this agreement, "Group" shall include all individuals, group companies, firms, entities, and persons specified in the scheme).
The client grants BBPL permission to calculate the market value of margin securities subsequent to the implementation of a haircut as deemed suitable by BBPL. The client agrees to maintain a continuous monitoring of the market value of the securities in question. Additionally, the client agrees to promptly replenish any shortfall in the value of the margin resulting from a decline in the market value of the securities placed as margin, regardless of whether BBPL notifies them of the shortfall or not.
BBPL may, at its unilateral discretion, require the payment of Margin in cash as opposed to or in addition to securities-based Margin. The Client consents to promptly comply with BBPL's requirement regarding the cash payment of the Margin. The stock broker shall have the authority to liquidate/close out any or all of the client's positions for non-payment of margins or other amounts, outstanding debts, etc., and apply the proceeds of such liquidation/close out, if any, against the client's liabilities/obligations, without prejudice to the stock broker's other rights (including the right to refer a matter to arbitration). All financial charges and losses incurred as a result of the liquidation or closing-out shall be the client's responsibility and shall be charged to them.
The client consents to abide by any exposure limits that may be periodically established by the stockbroker, the Exchange, the Clearing Corporation, or SEBI. Additionally, the client is cognizant of the fact that BBPL is obliged to place a sufficient margin deposit with the Exchange in order to facilitate trading for all of its eligible clients, subject to any limits BBPL may impose in light of its risk perception and other pertinent factors. However, there may be situations in which the funds deposited by BBPL with the Exchange prove inadequate during periods of high volatility. In such cases, BBPL's trading terminals could be temporarily halted due to the cumulative impact of multiple clients failing to fulfil their obligations as stipulated in this agreement. Under these conditions, no client shall be entitled to compensation from BBPL for any losses incurred as a result of the trading suspension.
The Client acknowledges and consents that any cash or securities it places with BBPL as margin may also be placed with BBPL as margin with banks, exchanges, or other institutions BBPL deems appropriate. The Client grants BBPL the authority to perform any and all acts, deeds, and things that may be required and expedient in order to place the securities/cash as margin with the Exchanges/Banks/Institutions. Any mention of the sale or transfer of securities by BBPL in these terms shall be construed to include the sale of securities that are a part of the margin that the client maintains with BBPL. As BBPL exercises its right to sell securities pursuant to the Agreement, the Client agrees that BBPL shall have exclusive discretion over the selection of particular securities to be sold.
MIS – (Margin Intraday Square-off) Clients will be required to chose MIS as a product type while placing their orders at TIQS. By selecting MIS as a product type, leverage upto 5x will be available depending on the liquidity of the stock. However, one thing to remember is that all orders in the MIS product type should be compulsorily squared off before 3.20 pm failing to do which will require the TIQS RMS to square-off positions at 3.20 pm.
BBPL shall furnish the hedging benefit to the client or clients in accordance with the SPAN margins and exchange regulations. Assume the client desires to divest from the hedge positions. They should begin by closing the leg that demands the greatest margin.
It is consistently the client's obligation to ensure that adequate margins are maintained for any open positions. Exposure Margins and SPAN may be modified by one or more exchanges at any time during the trading day. Traders must maintain a sufficient margin account to prevent a margin shortfall caused by exchange-imposed adjustments to SPAN and Exposure margins.
In the event that intraday or overnight carry forward margins are insufficient, the client is responsible for the penalties levied by the exchanges. BBPL shall not be liable for any penalties assessed as a result of the client's margin failing to materialize. Our Risk Management shall implement the appropriate measures in the event that any trading accounts experience a margin shortfall.
If the proceeds from the sale of holdings are used for cross-exchange transactions, the exchange may assess penalties (for instance, until resolved, the sale proceeds obtained from selling your holdings of NSE shall not be utilized for trading or investing in BSE).
Purchases and transactions by clients are restricted to the available clear balance in the trading account. Purchases or transactions executed with an undetermined balance are liable to incur penalties that shall be promptly applied to the trading account of the client. Options Premium receivables and any MTM profits realized during the day are settled in cash on T+1 Day. Therefore, clients and traders should be aware of this prior to conducting transactions.
On T+1 days, cash receivables related to the sale of equity shares (Delivery Trades) must be settled. This should be communicated to clients prior to conducting transactions.
Funds pay-in to BBPL – The Client acknowledges and commits to remitting all payments owed to BBPL within the designated time frame. Should payment be delayed, BBPL reserves the right to decline transactions or close the position at their discretion; any associated costs or losses shall be fully and exclusively borne by the Client. All remittances deposited into BBPL shall originate from the client's account and shall not be processed by a third party.
Funds pay-out by BBPL – The client hereby authorizes BBPL, subject to any other agreement or arrangement between the parties hereto, to release all payments owed to him from the trading account maintained by BBPL, upon specific request in this regard. Securities Pay in to BBPL – All trade-related deliveries to BBPL must be completed no later than one day prior to the pay-in date or 24 hours after the sale order execution, whichever occurs earliest. Any losses that may occur if BBPL is unable to complete the delivery on the exchange due to a delay in delivery caused by the client shall be entirely and exclusively borne by the client. Auction debits or penalty charges, if any, incurred as a consequence of non-delivery of securities on the exchange settlement date shall be considered losses for the purposes of this clause. Third-party payments or the sale of shares through BBPL are strictly prohibited. Any violation of this policy will be the sole responsibility of the client. Should the client have previously purchased securities from the exchange in exchange for them in settlements, any costs and consequences associated with that transaction shall be the client's sole responsibility.
Securities pay-out by BBPL – BBPL may directly credit the demat account of the client with the depository participant or maintain the securities account with BBPL on a running account basis.
However, in the event that the client places an order via the website or another method for securities that are currently in the no-delivery period, those securities will not be credited to the client's trading account until the settlement of transactions, as per the Exchange's schedule. BBPL reserves the right to withhold the credit of securities to the client's demat account in the event that the client owes any amount. The client does, however, grant BBPL permission to withhold the securities in order to satisfy the client's obligations to BBPL under this agreement. As margin received, BBPL may regard any sum of money or security that is to the credit of the client.
The Client hereby certifies that he possesses the legal capacity to execute the present agreement and that, at no time prior to the execution of this agreement, the terms of the present do not violate the rights of any party with whom the Client has any prior agreements. He affirms that he will continue to provide BBPL with all information it may require, including but not limited to their Unique Identification Number (issued by SEBI) and PAN Number. Furthermore, he affirms that all information and facts provided to BBPL are accurate
The Client acknowledges and is cognizant of the fact that internet trading is subject to numerous unforeseeable circumstances and intricate hardware, software, systems, communication lines, peripherals, and the like, all of which are susceptible to disruptions and dislocations; furthermore, the Online Trading Service of BBPL may be unavailable at any time and without prior notice. Neither BBPL Nor the Exchange warrants or represents that the Online Trading Service of BBPL will remain continuously and uninterrupted for the benefit of the Client. The Client acknowledges and agrees that any suspension, interruption, non-availability, or malfunction of the Online Trading System or Service of BBPL or the Exchange's systems or services, for whatever reason, shall not give rise to any claim against the Exchange or BBPL.
BBPL affirms that it has complied with and will continue to comply with all statutory and regulatory directives in order to offer Internet trading services via its website and to conduct business in the cash and derivatives segment of the exchange. If not, it intends to do so in the future.
The Client certifies that any and all securities entrusted to BBPL by the Client for margin requirements or other purposes are his property, and the title to such securities is unencumbered and in his sole possession. The Client or clients agree to indemnify and hold BBPL harmless for any loss, damage, or claim or action brought by a third party that is in any way attributable to the improper use of the Client's user ID and password.
The Client hereby certifies and guarantees that BBPL is authorized to execute on its behalf any actions necessary to complete or settle any transactions entered into through or with BBPL or executed by BBPL on behalf of the Client, including any steps required for provisions or to do so. Nonetheless, nothing in this document shall bind BBPL to take such actions.
The Client consents to remit payment to BBPL brokerage, which includes transaction expenses, commission, fees, service tax, and other applicable taxes on a periodic basis. These charges shall apply to the Client's account, transactions, and the services rendered by BBPL.Periodically, at the Client's request, BBPL shall furnish the Client with a schedule detailing the brokerage, fees and commissions, applicable service and other taxes, and additional transaction expenses
The Client agrees that BBPL does not provide investment advice in connection with any of the services offered on the website. The Client acknowledges that in the event that BBPL or any of its employees or representatives provide the Client with any information, recommendation, or advice, the Client shall solely rely on the information or advice at its own risk and expense, without holding BBPL liable or responsible for any such actions.BBPL, in addition to its partners, officers, employees, agents, and affiliates, shall not be liable for the client's investment decisions or transactions.
BBPL does not provide an assurance of error-free or uninterrupted service. Without limitation on the contrary, the service is provided "as is'' and "as available" without any express or implied warranty, including those of merchantability and fitness for a particular purpose. The client acknowledges and consents that BBPL shall not be liable for any consequences arising from delays in order transmission caused by system failures, communication facility breakdowns, or any other delay beyond BBPL's reasonable control, whether such delay is caused by the Exchanges, BBPL's systems, or elsewhere.
The Client hereby authorizes and confirms that BBPL may transmit promotional content via voice calls, SMS, email, or any social media platform, including but not limited to WhatsApp, Facebook, Twitter, and Telegram.
Any alterations to this Agreement shall be executed exclusively at BBPL's discretion and shall be communicated to the client through an appropriate update to the terms and conditions or another relevant section on the website, or through another suitable means.
BBPL may close the transaction of the client in the event of the client's demise, insolvency, liquidation, winding up, or otherwise becoming incapable of receiving, paying for, delivering, or transferring securities that the client has ordered to be bought or sold. The client or his legal representative shall be liable for any losses, costs, and entitlement to any surplus that may result from such a closure.
BBPL shall not bear liability for any consequences arising from unforeseen circumstances that hinder or prevent the fulfilment of their obligations. These circumstances shall not include, but are not restricted to, losses incurred directly or indirectly as a result of exchange or market rulings, trading suspensions, fire, flood, civil unrest, earthquake, war, strikes, system failure, internet link failure, or government or regulatory action.
The validity, legality, and enforceability of the remaining provisions shall not be prejudiced or affected in the event that one or more of the provisions in this Agreement become invalid, illegal, or unenforceable in any respect under any law in force at the time.
You acknowledge that funds withdrawn from your registered bank account will be deposited into your BBPL Trading account and no refunds will be issued. In the event that funds are deducted from your account but not credited to the beneficiary account, the reversal will occur on the source account within a minimum of two business days and a maximum of five business days. In order to initiate a withdrawal from the specified account, please submit a withdrawal request through the BBPL website.