Policies and Procedures

At Nirmal Bang, we are committed to maintaining transparency, ensuring client security, and adhering to regulatory compliance. Our policies are designed to provide a seamless trading experience while safeguarding your interests. Below are the detailed policies and procedures followed by Nirmal Bang;

1. Account Opening Policies

1.1. Types of Accounts Offered:

  • Trading Account for Equity, Derivatives, and Commodities.
  • Demat Account for holding securities in electronic form.
  • Online Mutual Fund Account.

1.2. Documentation Requirements:

To comply with SEBI's KYC norms, clients must provide:

  • Proof of Identity: PAN Card (mandatory)
  • Proof of Address: Aadhaar Card, Passport, Voter ID, or Utility Bill (not older than 3 months)
  • Bank Proof: Canceled cheque with the client’s name or latest bank statement
  • Income Proof (for trading in derivatives): 6 Month Bank statement, Latest salary slip, ITR, Demat Holding Statement or net worth certificate

1.3. Verification and Activation Process:

  • Once documents are submitted, Nirmal Bang conducts an in-person or online verification.
  • Accounts are typically activated within 2-3 working days after successful verification.
  • Clients will receive login credentials via email upon account activation.

1.4. Modification and Closure of Account:

  • Clients can modify details by submitting a duly signed form with supporting documents.
  • To close an account, clients must clear all dues and submit a request form.

2. Order Placement and Execution

2.1. Modes of Order Placement:

  • Online Trading Platform
  • Mobile Trading App
  • Dealer-Assisted Orders via Call and Trade Service

2.2. Types of Orders Supported:

  • Market Order, Limit Order, Stop Loss Order.

2.3. Order Modification and Cancellation:

  • Orders can be modified or cancelled before execution.
  • Post-execution, orders cannot be modified or cancelled.

2.4. Execution Policy:

  • All orders are routed to the relevant exchange (NSE, BSE, MCX) for execution.
  • Order execution is subject to market availability, liquidity, and price fluctuations.

2.5. Trade Confirmation:

  • Trade confirmations are sent via SMS/Whatsapp and Email instantly after order execution if Dealers place the order.

3. Risk Management and Margin Policy

3.1. Margin Requirement:

  • Margins are collected as per exchange and SEBI regulations.
  • For Equity: VAR + ELM margins.
  • For Derivatives: SPAN + Exposure margins.

3.2. Exposure Limits:

  • Exposure limits are based on the margin deposited by the client.
  • Limits may vary for Intraday, Delivery, and Derivative trading.

3.3. Margin Call and Shortfall:

  • In case of margin shortfall, a margin call is triggered via SMS/Email.
  • If not funded within the stipulated time, Nirmal Bang reserves the right to square off positions.

3.4. Risk Management Measures:

  • Automated risk checks before order placement.
  • Position monitoring to prevent over-leveraging.

4. Settlement Process

4.1. Pay-In and Pay-Out:

  • Equity: T+1 settlement cycle for F&O and T+1 for Equity.
  • Commodities: Settlement as per Exchange norms.

4.2. Fund Settlement:

  • Funds are credited to the client’s linked bank account post-pay-out.
  • Withdrawal requests can be placed online and are processed on the same day if they are placed before the given time, i.e., 3 p.m.

4.3. Securities Settlement:

  • Securities are credited to the client’s Demat account on the settlement date.
  • In case of short delivery, it is settled through auction or close-out as per exchange guidelines.

5. Brokerage and Other Charges

5.1. Brokerage Charges:

  • As mentioned in your submitted Account opening form.

5.2. Other Charges:

  • Transaction charges as levied by exchanges
  • GST on brokerage and transaction charges
  • SEBI Turnover Fees and Stamp Duty

5.3. Hidden Charges:

  • Nirmal Bang does not levy any hidden charges. All fees are transparently communicated to clients.

6. Client Communication

6.1. Modes of Communication:

  • Email and SMS for order confirmation, margin calls, and trade settlement.
  • Contract Notes are sent via email on the day of trade execution.

6.2. Digital Contract Notes:

  • Contract notes are digitally signed and compliant with regulatory guidelines.
  • Clients can access past contract notes through the trading portal.

7. Grievance Redressal Mechanism

7.1. Complaint Filing:

  • Clients can lodge complaints via email or phone or visit the nearest branch.
  • A dedicated email (contact@nirmalbang.com) is provided for grievance redressal.

7.2. Resolution Timeline:

  • All grievances are acknowledged within 48 hours.
  • Resolutions are provided within 15 working days.

7.3. Escalation Matrix:

  • If unsatisfied, clients can escalate issues to the Compliance Officer.
  • Further escalation can be made to SEBI’s SCORES platform.

8. Privacy Policy and Data Security

8.1. Data Collection and Usage:

  • Personal information is collected for KYC and compliance purposes.
  • Data is used for service improvement and marketing communication (with consent).

8.2. Data Security Measures:

  • Advanced encryption techniques for data protection.
  • Regular security audits and compliance with cybersecurity norms.

8.3. Third-Party Sharing:

  • Data is not shared with third parties without client consent, except as mandated by law.

9. Compliance with SEBI and Exchange Guidelines

  • Nirmal Bang follows SEBI regulations and circulars issued by NSE, BSE, and MCX.
  • Compliance audits are conducted periodically to ensure adherence.
  • Trading policies are regularly updated as per regulatory amendments.

10. Disclaimer and Liability

  • Trading in securities is subject to market risk.
  • Nirmal Bang is not liable for any direct or indirect losses incurred due to market volatility.
  • Investment decisions made by clients are at their own discretion and risk.
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1.NSE exchange is Stopping the facility of Stop-Loss Market (SL-M) orders In option trade from 27th Sept 2021 to avoid freak trades and reduce its impact significantly. 2. Introduction of T+1 rolling settlement on optional basis. Stock Exchange may choose to offer T+1 settlement cycle. There shall be no netting between T+1 and T+2 settlements. Circular provisions come into force with effect from Jan: @SEBI_India 3. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 01, 2020. 4. Update your email id and mobile number with your stock broker / depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge. 5. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month. 6.Do not share sensitive information like User ID, Password, OTP, etc., with anyone. Regards, Nirmal Bang.
1.NSE exchange is Stopping the facility of Stop-Loss Market (SL-M) orders In option trade from 27th Sept 2021 to avoid freak trades and reduce its impact significantly. 2. Introduction of T+1 rolling settlement on optional basis. Stock Exchange may choose to offer T+1 settlement cycle. There shall be no netting between T+1 and T+2 settlements. Circular provisions come into force with effect from Jan: @SEBI_India 3. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 01, 2020. 4. Update your email id and mobile number with your stock broker / depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge. 5. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month. 6.Do not share sensitive information like User ID, Password, OTP, etc., with anyone. Regards, Nirmal Bang.

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RISK DISCLOSURES ON DERIVATIVES

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

Source:

1. SEBI study dated January 25, 2023 on “Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment”, wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.