- An
Investment Bank shall neither offer any investment advice
or service nor endorse or recommend any security for sale
or purchase to the customer.
- All
the securities purchased out of the CMA shall be kept
in the physical possession and custody of the Investment
Bank during the currency of the agreement or under adequate
custodial arrangements separately identifiable from securities
purchased and held under discretionary accounts. On expiry
of the agreement the securities or proceeds thereof as
desired by the customer be handed over to him.
- An
Investment Bank holding an investment under the CMA shall
take all the necessary steps to transfer an investment
in the name of the customer so as to avail of the cash
or stock dividends unless specifically advised otherwise.
- An
Investment Bank shall provide a periodic statement of
the customer’s account on his request.
6.
DISCRETIONARY ACCOUNTS:
In
Discretionary Accounts a customer may authorise an Investment
Bank to act on his behalf in making investment decisions for
the operation of CMA. In exercising such option the Investment
Bank will be free to make decisions regarding the sale, purchase,
transfer, exercising of right etc, with regard to the investments
as defined in para 3 above and may decide the avenues on its
own in which an investment is to be made and timing of their
liquidation or otherwise, and will not be bound to act under
the advice of its customer.
Where
the customer has authorised an Investment Bank to act on his
behalf, an Investment Bank shall observe following guidelines:
- An
Investment Bank shall be responsible for adopting appropriate
measures for taking investment decisions and ensuring
their compliance.
- An
Investment Bank shall hold an investment under the CMA
in its physical possession and custody or under adequate
custodial arrangements for its customers.
- An
Investment Bank shall keep its customers informed about
the operation of account.
- Any
un-deployed balance in the CMA shall rank for calculation
of liquidity as
required
under the Rules of Business for NBFls.
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