- All
reasonable expenses incurred by the Investment Bank on handling
of transactions of sale or purchase of the securities under
the CMA shall be permissible to be charged to the customer.
- An
Investment Bank shall fix criteria of minimum amount below
which funds will not be accepted under the Cash Management
Account Scheme. However, the minimum amount acceptable to
an investment Bank will have to be clearly defined.
- The
securities purchased by an investment Bank under these rules
shall not be pledged with a third party. Likewise, no charge
or encumbrance in favour any party shall be created by the
said investment held in the cash Management Account against
any credit facility availed by the said investment Bank.
- An
investment Bank shall notify in advance its fees and commission
in its schedule of charges for the CMA services.
- The
acquisition of securities under the CMA shall not be made
or held in the name of the investment Bank.
- The
investment Banks will be responsible to make deductions
on behalf of the customer who place their funds with them
under the CMA under the income. Tax and other relevant laws
in force from time to time as is being done by the investment
Bank itself and be responsible to deposit the same in the
Government, Treasury in the prescribed manner and time frame.
5.
NON-DISCRETIONARY ACCOUNTS:
These
are accounts in which the customer has decided to exercise
his own option for the operation of the cash Management Account.
In exercising his own option the customer will inform the
investment Bank in writing prior to entering into any transaction
regarding sale, purchase, transfer, exercising of right etc.
and the investment Bank will act under the instructions so
received from his own customer. In handling such Accounts
the investment Bank may not under any circumstances make any
decision on its own discretion.
Where
are accounts in which the customer has decided to exercise
his own option for the operation of the Cash Management Account,
the Investment Bank shall observe the following guidelines:
- All
orders either for sale or purchase of any security shall
be executed only when received in writing from the customer
- An
Investment Bank shall strictly follow and act on the advice
of its customer
before
entering into any transaction involving sale or purchase
of any investment.
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