Policies and procedures

Zerodha

Zerodha Broking Ltd. (erstwhile Zerodha, hereinafter referred to as Zerodha) is a member of the National Stock Exchange, Bombay Stock Exchange and Multi-Commodity Exchange in the Equity, Equity Derivatives segment, Currency Derivatives segment and Commodity segment having its registered office at #153/154, 4th Cross, Dollars Colony, Opp. Clarence Public School, J.P Nagar 4th Phase, Bangalore - 560078, Karnataka, India.

For the purpose of these Policies & Procedures, wherever the context so mentions "Client","You" or "Your", it shall mean any natural or legal person who has agreed to open an account or initiate the process of opening an account with Zerodha by providing their information while registering on the platform as a user. Zerodha allows any person to surf the website without registering on the website. The term "We", "Us" , "Our" and "Team Zerodha" shall mean M/s Zerodha and/or Zerodha Commodities Pvt. Ltd.

Funds

System of Payin and Payout of funds:

Payin: Clients can transfer funds into the Trading Account only from such bank accounts which are registered with Zerodha. Any transfer from a non-registered bank account will not be considered and the client does not get any trading limit credit for such transfers.

The client can transfer funds from the instant payment gateway facility available on the trading platform or on the backoffice. Such transfers will be charged at ₹9 + GST per transfer.

If a client chooses to transfer using NEFT or by means of cheque, there will be no cost.

If the client transfers funds via cheque, the details of the transfer along with a copy of the cheque should be made available to Zerodha for the credit to be updated on the trading account.

Payout: All payouts will have to be compulsorily placed on the Backoffice access provided to the clients. All payout requests will be processed electronically and the credit shall come to the client’s primary bank account within 24 hours of having processed the payout request.

Withdrawal requests for EQ/Currency will be processed at 8:30 PM on working days. If you place a withdrawal request before 8:30 PM, the money will be credited to your account the next bank working day.If you place a withdrawal request after 8:30 PM, it will be processed on the next working day and you will receive the funds in 48 hours.

The payout window for Commodities is 8:00 AM every day - requests placed before 8:00 AM will be honored on the same day. Requests placed after 8:00 AM will be honored the next day.

Payout windows are closed on Saturday and Sunday - this means if you place a request on Saturday or Sunday or after 8:30 PM on friday, it will be honored only on Monday.

Margins

Client Funding: Zerodha does not engage in the business of Client Funding. Clients are required to have sufficient balance in their accounts to hold/carry forward positions.

NSE/BSE Equity: Zerodha has a policy of giving up to 20 times exposure on a broad spectrum of stocks; no margin is given for delivery trades. The client needs to have enough money in his trading account to take delivery of shares failing which Zerodha can cut the position. Comprehensive real-time margins at Zerodha can be viewed here.

NSE/BSE Futures and Options: Zerodha does not engage in the business of Client Funding. Clients are required to have sufficient balance in their accounts to hold/carry forward positions.

NSE/BSE Futures and Options: Leverage provided here is subject to market conditions and changes in its proportion are dynamic. Comprehensive real-time margins at Zerodha can be viewed here.

MCX Commodities: Intraday (MIS) trading is allowed in all Non Agri products sans Brent Crude and Silver 1000. Leverage provided is subject to market conditions and changes in its proportion are dynamic. Currently 50% of SPAN is required to trade intraday. Carry Forward (NRML) positions require 100% SPAN

Cover Orders: Currently available for NSE/BSE/CDS Equity and FO typically the margin benefit under this is higher relative to MIS positions.

Risks pertaining to commodity options that devolve into futures on expiry:

• All open options contract will be devolved into futures on the expiry date of the options contract.
• The exchange blocks a margin equivalent to 25% of the margin required to hold the devolved future contract 2 days before expiry and 50% of the margin, 1 day before expiry.
• Failure to produce the margin in the trading account can lead to a square-off of open positions at the discretion of the RMS team.
• The margin block will be applicable for contracts part of the exchange’s sensitivity report.
• Zerodha / Zerodha Commodities Pvt. Ltd. may also consider imposing additional margins apart from the ones described above from time to time.

Intraday products (MIS/BO/CO) square off timings:

Item	Equity/Cash	Equity derivatives	Currency futures	Commodity
Intraday Margin Time (MIS and CO)	3:20 PM onwards	3:25 PM onwards	4:45 PM onwards	25 minutes before Close

*Note: Intraday square off timings can change based on the discretion of our risk management department.
A Call & Trade charge of ₹50 will be applicable for all positions squared off by our RMS desk, including auto square off.

If any intraday position or an MIS trade is not squared off on the same day due to any link or system failure or any risks associated with internet/wireless based trading which may occur at the end of the Client, Zerodha or the respective Exchange, it shall be treated as a Cash and Carry ("CNC") or NRML position and carried forward to the next trading day. In case of such a situation arising, the onus of squaring off the position will be on the Client. Our RMS desk shall square off any such position, without the requirement of a margin call, if the necessary cash is not available in the Client's account.

Margin policies: The margin policies for trading through Zerodha can be obtained by clicking on this link

Note

• A Call & Trade charge of ₹50 is applicable for positions squared of due to insufficient funds.
• An order placement charge of ₹20 plus GST will be levied for all OFS, Buyback and Takeover orders placed through Zerodha.
• Option premium received from writing options will not be considered as Cash/Capital.
• MIS is not available on currency options.
• Cover Order is not available for stock options.
• Positions which do not have sufficient funds can be cut any time at the discretion of our RMS desk. There will be no margin calls or intimation from our RMS desk.
• Any open positions can be squared off at the discretion of our RMS desk If the funds available in your account are short of exchange specified margins. There will be no margin call before the position is squared off. During times of extreme volatility, the loss could be more than the funds available in your account before the position is squared off. All resulting charges or debts that might occur from such square offs will have to be borne by the client.
• Collateral margin will not be considered for equity delivery positions.
• All BO, CO and MIS positions will automatically be squared off at the end of the each trading day.
• Trading in mcx contracts will be banned a day prior to the delivery intention period.
• Zerodha blocks only SPAN margin for overnight positions on commodities. The exchange has offered a provision for brokers to collect an Additional Margin of 5%, which Zerodha has chosen not to collect at its own discretion and passed on the benefit to its clients.
• Basket orders will not be allowed on penny stocks.
• Basket Orders will be allowed only on orders which are over ₹25,000 in turnover per leg.
• AMO (After-Market Orders) will be allowed only if the value of each order is above ₹25,000.
• AMO will be cancelled if the price entered is more than 10% away from the LTP in either direction.
• Fines levied by the exchange for short margin will be payable by the client.
• Clients will have to ensure all Co, Mis, and intraday products are closed by the EOD.
• BO and CO is not allowed in preopen for Equities.
• Payments will only be accepted from the client’s registered bank account, cash and DD payins are not accepted.
• Commodities with staggered delivery will be closed 10 days prior to the delivery date in order to avoid physical delivery, also commodities with compulsory delivery will be closed a day before their respective delivery intention periods.
• On the start of the delivery intention period, clients will not be informed before closing any open positions to avoid compulsory delivery notice. Clients are advised to close their positions well in advance.
• For Commodities, on the start of delivery intention period, no contract will be available under MIS or CO product type.
• Physical Delivery of Commodities is not allowed.
• Because of illiquidity of stock option contracts, market orders have been disabled on stock options. Only limit orders are allowed. Place a limit buying order higher than the current price or selling order below the current price, this will act as good as market order but will also protect from any impact cost due to illiquidity.
• Instruments available for trading at Zerodha are subject to the discretion of the risk management team, and these may change from time to time for various reasons.
• Stocks and scrips which are currently in the derivatives (including Futures & Options) segment and they fail to meet:
  (I) the Eligibility Criteria (specified vide SEBI Circular number CIR/DNPD/3/2012 dated July 23, 2012) for a continuous period of three months; and
  (II) the Enhanced Criteria (specified vide SEBI Circular number SEBI/HO/MRD/DP/CIR/P/2018/67 dated April 11, 2018),
  shall be physically settled.
  With reference to the above two stated Circulars along with any further updates regarding the same from SEBI or any Exchanges from time to time, where stocks/scrips which fail to meet both such Eligibility Criteria and Enhanced Criteria, Zerodha’s policy on settlement with respect to such stocks can be read here.
• Due to exchange imposed member level open interest restrictions, not all strike prices for option contracts may be available for trading. Know more.
• In case your account is in debit balance and/or if you have insufficient funds to manage your trading positions, you will be charged an interest of 0.05% per day as delayed payment charges. Know more.

All information mentioned here is subject to change at the discretion of our Risk management team.

Collateral margins

• For all pledge requests placed before 4:00 PM, the collateral margin will be available to trade on T+1 day (next working day). All requests placed after 4:00 PM will be processed only on the next working day.
• Margins will be provided after the applicable haircut. You can click here for the applicable haircut on various stocks. A haircut of 10% would mean that if you pledged stocks worth Rs 1 lakh, Rs 90,000 (90% of 1 lakh) will be added as collateral margin to your trading account.
• You can see this margin under the heading Direct Collateral on our trading platforms Pi (desktop), Kite (Web/mobile), and NEST.
• You will be able to use this entire margin after haircut for taking intraday or overnight positions in Futures, and for writing Options of equities, indices, and currencies. You will not be able to use this margin to buy Options or take further positions on the equity segment.
• Exchanges stipulate that for overnight F&O positions, 50% of the margin needs to compulsorily come in cash and the remaining 50% can be in terms of collateral margin. If you don’t have enough cash, your account will be in debit balance and there will be an delayed payment (interest) charges charge of 0.05% per day applicable on the debit amount. So, if you take positions that requires a margin of Rs 1 lakh, you will need at least Rs 50,000 in cash irrespective of how much collateral margin you have. Assuming you don’t have this Rs 50,000, whatever you are short by will be the debit balance for the day, and delayed payment (interest) charges will be applicable for that amount. You can check this link to know more on how the delayed payment (interest) charges will be computed.
• Liquid bees are considered as cash equivalents by the exchange, so the above 50% rule wouldn’t apply. So margin received from pledging liquid bees will be as good as having cash in your trading account.
• All delayed payment (interest) charges accumulated will be debited once every month on the ledger. A link to see cumulative delayed payment (interest) charges calculation can be found on the holding page itself.
• All pledged stocks will be debited from your demat account until they are unpledged again. The entire process of pledging and unpledging will cost Rs 60 plus GST per scrip irrespective of the quantity. So if you pledge 100 shares of Infosys and 200 shares of Reliance, the total cost (pledging + unpledging) will be Rs 120 plus GST (Rs 60 x 2). This charge will be debited from your ledger the day you place the pledge request.
• You will continue to get benefits of all corporate actions like dividends, splits, bonuses, etc. on the stocks you have pledged.
• This facility is available only for those clients who have opened a demat account through ILFS or Zerodha with PoA duly mapped to Zerodha. It is not available for non PoA accounts.
• Zerodha reserves the right to liquidate any stock in case debit arises in the client's account and subsequent non payment of such debits.
• Zerodha reserves the right to make any changes in the policy with due intimation to the client.

Debit balance

Delayed payment charges

Zerodha follows the practice of posting the settlement obligation towards their transaction in the client ledger on the settlement date. All clients are advised to make the payment before the pay-in time on the settlement day, though there are instances wherein client may delay the payment beyond the settlement date. Although, it is obligatory for a broker to meet the settlement obligation in time, therefore, in order to ensure timely receipt of funds from clients towards their payment obligation, “charges for delayed payment” are levied in the client’s account. The sum towards “charges for delayed payment” is levied to discourage delayed payment from clients who do not deposit the required sum of money before the payin time on the payin day. “Charges for delayed payment” are levied on the respective ledger debit of the clients at a rate of 0.05% per day of the debit balance in the account. For the purpose of reckoning debit balance, the debit balance in the client ledger is consolidated across all segments of the respective exchange after giving effect to the release of margin.

Charges on FO position

In the Equity Derivative Segment and Currency Derivative Segment, we accept the approved securities from clients for margin purpose. Exchanges stipulate that for overnight F&O positions, 50% of the margin needs to compulsorily come in cash and the remaining 50% can be in terms of collateral margin. If you don’t have enough cash, your account will be in debit balance and there will be an interest charge also called delayed payment charges of 0.05% per day applicable on the debit amount. So assume you take positions that require a margin of Rs 1 lakh, you will need at least Rs 50,000 in cash irrespective of how much collateral margin you have. Assuming you don’t have this Rs 50,000, whatever you are short by will be the debit balance for the day, and interest will be applicable for that amount. Liquid bees are considered as cash equivalents by the exchange, so the above 50% rule wouldn’t apply. So margin received from pledging liquid bees will be as good as having cash in your trading account. Check this blogpost if you have any queries regarding pledging.

Contract notes and margin statement

Zerodha will issue contract notes & margin statements to its clients within 24 hours of the trade taking place. Along with the Contract Note, the client shall also be furnished with a copy of the daily margin status which is also available to be viewed on their respective Backoffice Personal Ledger.

Demat accounts

Zerodha will maintain client’s securities in a designated account called the Client Beneficiary Account. The securities of Zerodha will be kept in a separate demat account termed as Zerodha Beneficiary Account. The clients’ and Zerodha’s own securities will not be mixed with each other.

Zerodha will open all DP Accounts with its DP Partner IL&FS Securities Services Ltd. A client has the facility of linking his existing Demat Account to the Trading Account and taking delivery of stocks or opening a new Demat Account with Zerodha’s DP Partner, IL&FS Securities Services Pvt. Ltd. A client who wants to fully engage in trading in the Delivery Segment of NSE/BSE, will have to compulsorily open an account with IL&FS Securities Services Ltd. Transfer of shares from a third-party Demat account in to Zerodha’s pool account and subsequent selling of such stocks is not allowed.

Trades

The trades of clients shall be carried out in the respective client code only. The dealers shall take utmost care while executing the trades of the clients regarding the accuracy of Client Code, Quantity, Price, etc.

Closing of accounts/dormant account

The Clients account shall be closed upon a specific request from the client. The closure shall be effective only after a period of one month has elapsed from the date of application/intimation or the date of settlement of account whichever is later.

Settlement of account shall mean that there is no outstanding balance of shares or funds in the books of the client and Zerodha and the same is confirmed by the client. The date of confirmation shall be the effective date of settlement. As far as dormant accounts are concerned, we do not close such accounts, but mark the same as “Inactive” till further action by the concerned client.

Investor grievances

The Compliance Officer shall be the designated officer for handling the Investors Grievances and Client Complaints. The email ID you can write to in case you have any grievance is [email protected].

The resolution of the Complaint shall be done at the earliest and the same shall be recorded in the register along with the date of resolution.

Zerodha PMLA Policy

Anti Money Laundering Measures

Background

The Prevention of Money Laundering Act, 2002 came into effect from 1st July 2005. Necessary Notifications / Rules under the said Act were published in the Gazette of India on 1 st July 2005 by the Department of Revenue, Ministry of Finance, and Government of India.

SEBI vide circular dated 18th January 2006 required Market intermediaries to lay down policy framework for anti money laundering measures to be followed. Zerodha being a Stock Broker needs to adhere to the same. SEBI has also issued a Master circular dated 19th December 2008, which consolidates all the requirements/obligations issued with regard to AML/CFT until December 15, 2008

Objective

Money laundering has now become one of the major concerns of international financial community. Money Laundering is not just an attempt to disguise money derived from illegal activities. Rather, money laundering is involvement in any transaction or series of transactions that seek to conceal or disguise the nature or source of proceeds derived from illegal activities, including drug trafficking, terrorism, organized crime, fraud and many other crimes.

The objective is to have a system in place for preventing any money laundering financial transaction through us and also to identify, monitor, report any such transaction to appropriate authorities.

“Know Your Customer “(KYC) is the guiding principle behind the Anti-Money Laundering (AML) measures. It incorporates the “Know Your Customer” Standards & “Anti Money Laundering” Measures, hereinafter to be referred as “KYC Standards” and “AML Measures ". The objective of is to “have in place adequate policies, practices and procedures that promote high ethical and professional standards and prevent the Company from being used, intentionally or unintentionally, by criminal elements ". KYC Standards and AML Measures would enable the Company to know/ understand its customers, the beneficial owners, the principals behind customers who are acting as agents and their financial dealings better which in turn will help the Company to manage its risks prudently

The management of the company is fully committed to establish appropriate policies and procedures for ensuring effectiveness and compliance with respect to all relevant legal requirements.

The regulatory / statutory requirements

An officer of the company will be designated as “Principal Officer” who will ensure proper discharge of all legal requirements with respect to the same Mr. Venu Madhav, Compliance Head is the Principal Officer responsible for

• Compliance of the provisions of the PMLA and AML guidelines
• Act as a central reference point and play and active role in identification & assessment of potential suspicious transactions
• Ensure that Zerodha discharges its legal obligation to report suspicious transactions to concerned authorities.

The main aspect of this policy is the customer due diligence process which means:

• Obtaining sufficient information about to the client in order to identify who is the actual beneficial owner of the securities or on whose behalf transaction is conducted
• Verify the customers identity using reliable independent source document, data or information
• Conduct on-going due diligence and scrutiny of the account/ client to ensure that the transaction conducted are consistent with the clients’ background/ financial status, its activities and risk profile.

The customer due diligence process includes three specific parameters:

• Policy for acceptance of clients : Each client should be met in person Complete KYC to be done for all clients No account to be opened in a fictitious/benami name or on an anonymous basis
• Clients Identification Procedure (Risk profiling) All clients to be classified as per the risk into 3 categories Low, Medium and High Risk
• Suspicious Transaction identification and reporting Any unusual activity compared to past transactions Sudden activity in Dormant accounts Sudden High volume / high value transactions
• Central Depository Securities Limited (CDSL) communique no. CDSL/OPS/DP/POLCY/2017/176 dated April 05, 2017 and CDSL/OPS/DP/POLCY/2017/354 dated July 18, 2017, advises that the Beneficial Owners should submit/update their Aadhar Card copy with the Depository Participant. Please ensure that you update your Aadhar Number with Zerodha as per the mentioned notices.

The principal officer shall report the nature, amount, date and all related details of any and all suspicious transactions recorded.

1. Client identification

Before opening any Trading account with us, the following measures shall be taken:

• In person verification of the client
• Identify beneficial ownership and control, i.e., determine the persons who beneficially own / control the account.
• Collect information about client's background, occupation and also check the name of the introducer.
• Collect and verify all original documents from the client.
• Collect a certified copy of valid documents showing details of his permanent address, current address, PAN, nature of his occupation, financial status and also a recent photograph.
• For clients trading in F&O segment, documentary proof of his financial details will be collected.
• In case of Corporate client, collect copies of certificate of incorporation, Memorandum of association and other documents as required by SEBI
• In case of Corporate client, collect adequate information of the persons authorised to deal on behalf of the company.
• The client shall be interviewed personally regarding the purpose of opening the account i.e., whether short term trading or long term investment.
• Prior experience in stock market
• Introducer details

2. KYC updation process

All corporate clients must submit annual report every year. In case of individual clients, Client Master details shall be sent to all clients, who will confirm either that the details are updated or shall be advised to submit details if required. He shall also specify his present occupation and financial income details per annum in the same declaration.

The information should be adequate enough to satisfy competent authorities (regulatory/ enforcement authorities) in future that due diligence was observed by us in compliance with the Guidelines.

Failure by prospective client to provide satisfactory evidence of identity should be noted and reported to the principal officer.

Further, we should also maintain continuous familiarity and follow-up with the client where inconsistencies in the information provided are noted.

The account will not be opened where we are unable to apply the above KYC policies, e.g., non co-operation of the client in providing full information etc

3.Client categorisation

Each client will be marked into 3 categories, High Risk, Medium Risk and Low Risk from the point of view of the anti money laundering laws. The categorization will be made based on the following parameters/ factors of risk perception:

• High Networth Clients
• Trusts/ NGOs / Charities receiving donations
• Companies having close family shareholdings (The above are considered of High Risk as per SEBI guidelines) The other parameters are nature of business activity, trading turnover, manner of making payment etc. Provision will be made in the back office software for noting categorization of each client. The high-risk client will require regular KYC update.

The clients will be placed under low, medium and high-risk category based on their turnover per day. Corporates / HNIs having respectable social and financial standing, Clients who make payment on time and take delivery of shares can be considered as Low

4. Suspended Persons

SEBI and other authorities suspend or debar persons / entities from participating in securities market on several instances. We as a Broker are required to ensure that such persons do not trade through us.

We shall lay down systems for identifying transactions which is not in consonance with the financial status declared/ shown by the client. Also, unusual activities compared to past transactions, sudden activity in dormant accounts, activity inconsistent from declared business activity, should be traced. This shall require appropriate changes in our back office software.

Systems shall be put in place for identifying transactions likely to be market manipulation, and which appears to be insider trading and also any transaction which seems to have no bonafide intention. Regular communications by means of mailers, SMS, Email are sent to clients at various intervals requesting them to update their latest financial and KYC details available with us.

Role of Compliance Team & Internal Audit: The compliance team will play an important role in ensuring compliance of the above policies and procedures. The account opening team will exercise adequate due diligence as stated above. There will be periodic checking by the Principal Officer and the same report will be properly filed

here is a system of concurrent audit, which will also include ensuring compliance of the

• Due diligence in KYC norms.
• Generation of exception reports
• Trading in dormant client codes
• Level of awareness of staffs

5.Illiquid Securities

The Exchanges specifies a list of Illiquid Securities where higher due diligence is to be exercised by the Brokers. The list is displayed in our website for client's information. The trade pattern in such scrips by our clients is monitored. In case of high volume in any scrip compared to Exchange volume, the client is asked to submit clarification.

6. Employee Training

We have policy for ongoing employee training programme so that the total staffs of our company completely aware of the provisions of AML and CFT procedures and amendments thereof. These training programmes are totally focused for frontline staff, back office staff, compliance staff, risk management staff and staff dealing with new customers as it is very crucial that all those concerned fully understand the rationale behind these guidelines, obligations and requirements, implement them consistently and are sensitive to the risks of their systems being misused by unscrupulous elements, if there is any lapse on the part of any staffs of the company.

A register of attendance of participation in such Education/ training program is maintained for the employees, kept secured with the Compliance Department.

As resolved Zerodha shall take adequate measures as per its internal policy to prevent money laundering and shall also put in place a frame work for PMLA policy. The policies and procedures as mentioned above shall not be final as it may adopt additional measures to safeguard its interest with respect to activities associated with PMLA.

Zerodha brief

Zerodha has introduced the concept of discount broking in India. This concept is very popular in the US with companies like Ameritrade, Zecco, etc. Our focus is on helping traders stay ahead of the rest of the pack by offering innovative solutions to the problems that exist in the trading domain.

We decided to create Zerodha based on an in-depth understanding of how the odds are always stacked against active traders in the financial markets. A study conducted by us revealed that almost 90% of active traders in the markets lose money in the long run. One of the fundamental drivers that define this reality is the fact that brokerages in India have always charged traders a percentage brokerage, regardless if one makes or loses money on a particular trade. This insight inspired us to create a whole new way of trading.

Never pay high brokerage again. Trade at 20 only

Since last December Zerodha has gone zero brokerage for Equity Delivery trades. Yes, EQ delivery is free. For other trades like EQ Intraday, F&O, Currencies and Commodities, you pay a simple 0.03% or 20 per executed order (whichever is LOWER) as a transaction fee regardless of your trade size. This is our way of simplifying things. To reiterate, you pay only 0.03% or 20 per executed order that you place, irrespective of how many trades are executed for that particular order.

For example: You place an intraday ‘buy’ order for 300 shares of Reliance. This order may get executed at different times until the whole 300 are bought. However, we at Zerodha charge you only for the order that you placed, irrespective of how many trades it takes to complete the order. The same charges apply for trading intraday or Futures & Options.

To know more: http://zerodha.com/pricing

Other Charges:

• Account opening (Trading & Demat) – ₹ 200 (Market rates are Free to ₹ 1500)
  Account opening (Trading, Demat & Commodities) – ₹300
  Note: Please go through the 'Refund & Cancellation Policy', to have a complete understanding of the refund rules and procedures.
• Annual Maintenance Charges for Demat (payable at the end of the year) – Rs 300 (Market rates are Rs 300 to Rs 1000) Annual Maintenance Charges for Trading Account - ZERO If you print your own forms through our website, we give you a discount of ₹100 on Account Opening Charges.
• DP Charges – Rs 8 (Zerodha) plus ₹5.5 (CDSL) (applicable only when you are selling your Delivery position after having held for more than two days). (Market rates are usually between Rs 12 to Rs 25)
• STT, GST, NSE Turnover and Transaction Charges, SEBI charges are all as applicable market-wide
• GST will be levied additionally on all charges mentioned in this document as and wherever applicable.

Margins:

• For Delivery positions, 100% cash will be required *square-off of all intraday CASH positions if not converted happens at 3:20 p.m. every day
• For holding Futures overnight, exchange stipulated margins are required. *square-off of all FUTURES & OPTIONS positions starts at 3:25 p.m. every day if you don’t have the requisite margin.

Trade on Kite. Speed. Stability. Security.

Kite is a minimalistic, intuitive, responsive, light, yet powerful web and mobile trading application offered by Zerodha. Bandwidth consumption of less than 0.5 Kbps for a full marketwatch, extensive charting with over 100 indicators and 10 chart types, advanced order types like Brackets and cover, millisecond order placements, and more. Used by over 70,000 clients and serving over 5 million requests a day with no hiccups.

Our Genesis: Zerodha was conceived to address the problems of every trader – excessive cost and substandard support. At Zerodha, we are firmly committed to working towards our vision of creating a brokerage-free world to benefit the most important stakeholders when it comes to the financial markets - YOU. We are equally committed to providing the best possible customer experience through highly personalized service and support. To find out more about us feel free to visit our website. For queries you could create a ticket on our support portal or call us at 080-40402020 or 080-33102020.

Alternative Means of Communication in Case of L/L Failure in Internet

There are 2 types of trading backup system/processes planned for handling the subject i.e. 'Call and Trade' desk at HO and dealer desk located in branch locations. All successfully registered clients would be provided with Call and trade numbers and the clients would have to call us on these numbers and authenticate their account information before the dealer can place trades.

All clients on any issue in internet or connectivity failure or in any other difficulty can call on the nation wide accessible number to receive 'Call and Trade' service. After successful authentication i.e. manual authentication after providing personal identification details to call and trade dealer, clients can access their account as required. Clients being served at dealing desk can access their accounts with help of dealers at these locations.

Additional charges of ₹50 per executed order:
A) for orders placed through our support/dealing desk.
B) intraday (MIS/BO/CO) positions squared off before market closing by our RMS team.

Note: Trading using our Call & Trade desk involves many uncertain factors which include complex hardware, software, systems, and communication lines. These are susceptible to interruptions.

Zerodha charge list

Business continuity

Document control information

Author	Mohamed Arif
Document	Business Continuity Management
Version	1.0.0.2
Reviewer	Mr. Shrikant Pandit
Review notes
Version notes 1.0.0.1
Keywords

Proprietary notice

This document contains confidential information of Omnesys Technologies Pvt Ltd, which is provided for the sole purpose of permitting the recipient to evaluate the deployment document submitted herewith. In consideration of receipt of this document, the recipient agrees to maintain such information in confidence and to not reproduce or otherwise disclose this information to any person outside the group directly responsible for evaluation of its contents, except that there is no obligation to maintain the confidentiality of any information which was known to the recipient prior to receipt of such information from Omnesys Technologies Pvt Ltd, or becomes publicly known through no fault of recipient, or is received without obligation of confidentiality from a third party owing no obligation of confidentiality to Omnesys Technologies Pvt Ltd.

Business continuity management

Information security aspects of business continuity management

• A managed process must be developed and maintained for business continuity throughout the organization that addresses the information security requirements needed for the organization’s business continuity.
• A comprehensive Business Continuity Plan (BCP) must be developed and implemented in order to maintain or restore business operations in the required time scales following interruption to, or failure of, critical business processes. The BCP must include effective Disaster Recovery procedures for quickly recovering from an emergency with minimum impact to the company’s operations.
• Business Continuity Plan must be developed based on critical business processes and the likely disruptive events along with their probability, impact and consequences for information security identified through Business Impact Analysis.
• A single framework of business continuity plans must be maintained to ensure all plans, across businesses and processes are consistent, to consistently address information security requirements, and to identify priorities for testing and maintenance.
• Zerodha's systems are hosted at the Netmagic Tier-3, and Amazon Internet Services Private Limited Mumbai data centres in Mumbai.
• At present we have Production server and Backup server in place and both were Sinked together to get the data updated in the backup server on real time. Also the data is backed up through storage folder in a secured way, one copy of backup on same server itself, other copy in backup server & external media devices. Even we will take the backup of SQL database on daily basis and store it securely.
• In case of primary server failure then alternate communication will be carried from the secondary server and will continue the trading platform.

Disaster recovery policy

Author	Mohamed Arif
Document	Business Continuity Management
Version	1.0.0.2
Reviewer	Mr. Shrikant Pandit
Review notes
Version notes 1.0.0.1
Keywords

Proprietary notice

This document contains confidential information of Omnesys Technologies Pvt Ltd, which is provided for the sole purpose of permitting the recipient to evaluate the deployment document submitted herewith. In consideration of receipt of this document, the recipient agrees to maintain such information in confidence and to not reproduce or otherwise disclose this information to any person outside the group directly responsible for evaluation of its contents, except that there is no obligation to maintain the confidentiality of any information which was known to the recipient prior to receipt of such information from Omnesys Technologies Pvt Ltd, or becomes publicly known through no fault of recipient, or is received without obligation of confidentiality from a third party owing no obligation of confidentiality to Omnesys Technologies Pvt Ltd.

Recovery procedures

Network failure:

Our systems are hosted at the Netmagic Tier-3, and Amazon Internet Services Private Limited Mumbai data centres in Mumbai with state of the art redundancy measures.

Network failure:

Every day we are taking backup of database one copy in a database server itself and other copies are stored in backup server and external media device also for need of restoration on need basis.

The Database is restored from these copies on failure.

If there is a problem with the database when we can restore the database from the backup node to server immediately and even if that backup system has a problem we can restore the data from the external device.

System / hard disk failure:

To avoid single points of failure we plan to run a parallel servers which are running simultaneously thus adding redundancy, so that customer can be provided service with limited downtime delay.

Alternative arrangements for customers for uninterrupted service:

We have a helpdesk where we can accept orders from the clients in case of failure of systems after proper authentication of the client.

Refund & cancellation policy

The Refund & Cancellation policy for all payments made towards account opening using the payment gateway shall stand as under:

• The Fees paid towards account opening charges for enabling equities as well as commodities is non-refundable.
• Pick up of required documents related to the account opening procedure is subject to availability of our representatives, given at any particular time and location.
• In case your account has not been opened by Team Zerodha, after the tenth day passing by from the day of collection of all necessary supporting documents and receipt of all due authorizations from you, you may request for a full refund of the charges as paid by you towards account opening.
• In case you have paid the charges relating to account opening multiple times, please create a ticket here and we will initiate the necessary procedure to refund your money.

Note: The completion of the refund procedure is subject to agencies such as banks, payment gateways.

Policy for inactive clients

All that you need to know in case your trading account is not active for more than 12 months.

CSR policy