Patel Wealth(because advice matters)

Introduction

Access control is a mechanism to ensure that authorised personnel have access to the information and information processing resources that are assigned to them. It also helps track the accountability.

Logical access control ensures that only authorised personnel have access to the information or data in electronic form; this includes access to the Operating system, application, trading system and associated information.

Scope

This policy applies to all the users. The physical and logical access to information and information processing resources are covered in this policy.

Policy

Logical Access Control

User Management User Creation

A unique User ID should be created for every individual who is given access to the information processing facilities. IT department will create a new user-id and provide the rights as requested by the user’s department head.

User rights modification

The concerned business team head must notify the IT department for modification of the rights of any user whose job functions have changed or the user has been transferred to another department.

User Deletion

The team head must immediately notify the IT Department for disabling / deleting the user-id of any user who has resigned / has been terminated from the service. The head should also mention the date on which the user id should be disabled / deleted with the request. In emergencies, such requests can be made over phone;however, it must be followed by an email.

On receipt of notification, the IT Department must immediately carry out the requested action on the specified date. All user-ids of ex-employees, that were disabled, must be deleted after 15 days, unless explicitly requested by the business team head.

Deactivation of user-ids

A user-id would be disabled if a user has not logged in for more than 45 days. In case the owner of this user-id is not with the company any more, the IT Department should delete the user id after the Head of Department authorizes the deletion through mail.

A user-id will be locked if there have been more than 3 invalid login attempts.

Reactivation of User Account

The IT Department should reactivate user accounts that have got locked / disabled after receiving a request from the Department Head. IT Department will verify the validity of the user before reactivating the account.

Shared user-IDs

Users must not share their user-ids. If there is a business requirement or need to share user-ids, this must be authorized. Details of such User IDs if created must be shared solely within the designated members of the group. IT Department will maintain a document on list of such user IDs.

Administrator (privileged) rights

Administrator logins and privileged access rights allow users to override system controls.

Users must not be allowed to work with “administrator” ID or with privileged rights. Where users need administrative rights for executing their job responsibilities, the IT Department may provide the user with the privileged rights only for the required period.

Access Control List (ACL)

The IT Department must maintain an access control list giving details of the access given to a user.

The ACL should be reviewed and should be updated as and when any user Ids are created, modified, disabled or deleted from the domain.

Access for printing facilities

The access to printing facilities is provided to users on a need-to-do basis. Users, whose job description does not require printing, must not be given access to printers.

It is the responsibility of users to ensure that printers are used for official purpose only and personal documents are not printed using these facilities.

Where required, senior personnel or departments processing sensitive information will be provided with a separate printer, access to this printer will be provided only to those department staff or senior personnel.

Network access for third party laptops

Vendors / Client’s Laptops are not allowed to be connected to the company’s network. If any such laptop needs to be connected to the network, it must be approved by the IT department.

IT department will ensure Vendor / Client Laptops have high end Business grade Anti-virus as well as VPN connection for allowing them to be connected to the Network.

Access to Storage media

Floppy Disks, CDR / CDRW

The workstations and laptops will not be provided with Floppy disk drives, CD-Writers. This is to ensure that no employee can transfer official data onto these devices.

If users require any of these devices for their workstation or laptop, the head of the department must authorise the same by sending an email to the IT department.

The IT department must ensure that access to Floppy Disk drives, USB Drives, DVD, CDR / CDRW are disabled in BIOS and if required provide access only to authorized personnel.

Access to USB ports

To ensure that no unauthorised transfer of information happens using any I/O devices through USB port, company will not allow access to the USB port on any computer for connecting such devices.

Any user requiring access to USB ports for connecting input-output devices must get an authorisation from both the department head and IT head.

Email and Internet access

Internet and email are provided to the employees for carrying out the business functions of the company. The department heads must authorise the use of Email facilities, for example Web mail, public email servers etc. Users are responsible for following the Email and the Internet policy.

Unattended systems

Users must ensure that unattended systems must be logged-off or locked so that no unauthorised person can gain access to the same. If system limitations prevent locking of a workstation / server, suitable password enabled screen saver must be used.

Precautionary Measures

i. ID Card for every employee

ii. Access to server room restricted to authorized IT personnel only

iii. Each desktop needs domain authentication during startup

iv. Server (share) access is permitted only after domain authentication

v. File server access allowed based on senior management’s instructions.

vi. Information sharing on a strictly need to know basis within the team.

Refusal of orders for penny/illiquid stock:

PWAPL may from time to time limit (quantity/value)/refuse orders in one or more securities due to various reasons including market liquidity, value of security(es), the order being for securities which are not in the permitted list of the PWAPL/exchange/SEBI. Provided further that PWAPL may require compulsory settlement/advance payment of expected settlement value/delivery of securities for settlement prior to acceptance/placement of order(s) as well. The client agrees that the trade related losses, if any on account of such refusal or due to delay caused by such limits, shall be borne exclusively by the client alone. PWAPL may require reconfirmation of orders, which are larger than that specified by PWAPL's Risk Management, and is also aware that PWAPL has the discretion to reject the execution of such orders based on its risk perception. PWAPL also reserves the right to publish its own list of illiquid/penny stocks. Such refusal by PWAPL to place orders in illiquid/penny stock shall not constitute violation of code of conduct prescribed by SEBI/Exchange for stock brokers.

Setting up of Client's Exposure Limits:

Setting up client's exposure limits and conditions under which a client may not be allowed to take further position or PWAPL may close the existing position of a client. PWAPL may from time to time impose and vary limits on the orders that the client can place through PWAPL's trading system (including exposure limits, turnover limits, limits as to the number, value and/or kind of securities in respect of which orders can be placed etc). The client is aware and agrees that PWAPL may need to vary or reduce the limits or impose new limits urgently on the basis of the PWAPL's risk perception and other factors considered relevant by PWAPL including but not limited to limits on account of exchange/SEBI directions/limits (such as broker level/market level limits in security specific/volume specific exposure etc.), and PWAPL may be unable to inform the client of such variation, reduction or imposition in advance. The client agrees that PWAPL shall not be responsible for such variation, reduction or imposition or the client's inability to route any order through the PWAPL's trading system on account of any such variation, reduction or imposition of limits. The client further agrees that PWAPL may at any time, at its sole discretion and without prior notice, prohibit or restrict the client's ability to place orders or trade in securities through PWAPL trading system, or it may subject any order placed by the client to a review before its entry into the trading system and may refuse to execute/allow execution of orders due to but not limited to the reason of lack of margin/securities or the order being outside the limits set by PWAPL/exchange/SEBI and any other reasons which PWAPL may deem appropriate in the circumstances.

The client agrees that trade related losses, if any an account of such refusal or due to delay caused by such review, shall be borne exclusively by the client alone. PWAPL is required only to communicate/advise the parameters for the calculation of the margin/security requirements as rate(s)/percentage(s) of the dealing, through anyone or more approved means or methods such as post/speed post/courier/registered post/registered A.D./facsimile/e-mail/voice mails/telephone (telephone includes such devices as mobile phones etc.) including SMS on the mobile phone or any other similar device; by messaging on the computer screen of the client's computer; by informing the client through employees/agents of PWAPL; by publishing/displaying it on the website of PWAPL/making it available as a download from the website of PWAPL; by displaying it on the notice board of the branch/office through which the client trades or if the circumstances, so required, by radio broadcast/television broadcast/newspaper advertisements etc; or any other suitable or applicable mode or manner.

The client agrees that the postal department/the courier company/ newspaper company and the e-mail/voice mail service provider and such other service providers shall be the agent of the client. Once parameters for margin/security requirements are so communicated, the client shall monitor his/her/its position (dealings/trades and valuation of security) on his/her/its own and provide the required/deficit margin/security forthwith as required from time to time.

The client is not entitled to trade without adequate margin/security and that it shall be his/her/its responsibility to ascertain beforehand the margin/security requirements for his/her/its orders/trades/deals and to ensure that the required margin/security is made available to PWAPL in such form and manner as may be required by PWAPL. If the client's order is executed despite a shortfall in the available margin, the client shall make up the shortfall immediately. The client further agrees that he/she/it shall be responsible for all orders(including orders that may be executed without the required margin in the client's account) &/or any trade related claim/loss/damage arising out of the non availability/shortage of margin/security required by PWAPL&/or exchange &/or SEBI.

PWAPL is entitled to vary the form (Le., the replacement of the margin/security in one form with the margin/security in any other form, say, in the form of funds instead of shares) &/or quantum &/or percentage of the margin &/or security required to be deposited/made available, from time to time.

The margin/security deposited by the client with PWAPL are not eligible for any interest. PWAPL is entitled to include/appropriate any/all payout of funds &/or securities towards margin/security without requiring specific authorizations for each payout.

PWAPL is entitled to transfer funds &/or securities from his account for one exchange &/or one segment of the exchange to his/her/its account for another exchange &/or another segment of the same exchange whenever applicable and found necessary by PWAPL.

The client also agrees and authorize PWAPL to treat/adjust his/her/its margin/security lying in one exchange &/or one segment of the exchange/towards the margin/security/pay in requirements of another exchange &/or another segment of the exchange.

PWAPL is entitled to disable/freeze the account &/or trading facility/any other service facility, if in the opinion of PWAPL, the client has committed a crime/fraud or has acted in contradiction of the Mandatory and Voluntary Client Registration Documents or/is likely to evade/violate any laws, rules, regulation, direction of a lawful authority whether Indian or foreign or if the stock broker so apprehends.

Delayed payment charges/Imposition of penalty:

The client agrees that any amount, which are overdue from the client towards trading or an account of any other trade related reason to the PWAPL will be charged with delayed payment charges at 2% per month or 24% per annum or such other rates as may be specified by PWAPL from time to time. The client agrees that PWAPL may impose fines/penalties at above rate for any orders/trades/deals/actions of the client which are contrary to the Mandatory and Voluntary Client Registration Documents/rules/regulations/bye laws of the exchange or any other law for the time being in force. Further where PWAPL has to pay any fine or bear any punishment from any authority in connection with/as a consequence of / in relation to any of the orders/trades/deals/actions of the client, the same shall be borne by the client. The client agrees to pay PWAPL brokerage, commission, fees, all taxes, duties levies imposed by any authority including but not limited to the stock exchanges. The client agrees that he/she/it shall be liable for penal interest on T+1 basis. Any client's debit after T+2 day from the date of trading shall result in client's securities (either received as delivery or as collateral) being liquidated. The client shall have no right to plead or expect that his/her/its debit should be allowed to remain unpaid on an infinite basis as it is anyway subject to penalty rate. This delayed payment charges will be levied for the actual period for which the debit has remain unpaid/non cleared after it has become due. Any delay in payment of M2M loss on any segment shall also result in client's securities (either received as delivery in cash segment or as collateral) and also all such other collaterals of the client being liquidated by us, to the extent of such Mark-to-Market loss. Further all outstanding position of the client in all segment shall also be liable to be closed out in the market and costs, consequences, loss etc. if any arising out of such close-out shall be for client to bear. Further PWAPL shall be at liberty to prescribe such higher margin percentage at its own discretion for such defaulting clients. PWAPL.if it so desires, can also close the accounts both trading and demat of such defaulting clients.

Applicable Brokerage Rate:

The client shall be subject to brokerage slab as agreed by client, evidenced by the client having duly signed the tariff sheet after mentioning the tariff rates therein.

The Right to sell clients' securities or close clients' positions, without giving notice to the client, an account/of non-payment of client's dues. (Limited to Margin/Settlement Obligations):

PWAPL maintains centralized banking and securities handling processes and related banking and depository accounts at designated place. The client shall ensure timely availability of funds/securities in designated form and manner at designated time and in designated bank and depository accounts(s) at designated place, for meeting his/her/its pay in obligation of funds and securities. PWAPL shall not be responsible for any claim/loss/damage arising out of non availability/short availability of funds/securities by the client in the designated account(s) of PWAPL for meeting the pay in obligation of either funds or securities. If the client gives orders/trades in the anticipation of the required securities being available subsequently for pay in through anticipated payout from the exchange or through borrowings or any off market delivery(s) or market delivery(s) and if such anticipated availability does not materialize in actual availability of securities/funds for pay in for any reason whatsoever including but not limited to any delays/shortages of the exchange or stock broker level/non release of margin by the stock broker etc., the losses which may occur to the client as a consequence of such shortages in any manner such as an account of auctions/square off/closing outs etc., shall be solely to the account of the client and the client agrees not to hold the PWAPL responsible for the same in any form or manner whatsoever. In case the payment of the margin/security is made by the client through a bank instrument, PWAPL shall be at liberty to give the benefit/credit for the same only on the realization of the funds from the said bank instrument etc. at the absolute discretion of the PWAPL. Where the margin/security is made available by way of securities or any other property, PWAPL is empowered to decline its acceptance as margin/security &/or to accept it at such reduced value as the PWAPL may deem fit by applying haircuts or by valuing it by marking it to market or by any other method as PWAPL may deem fit in its absolute discretion.

PWAPL has the right but not the obligation, to cancel all pending orders and to sell/close/liquidate all open positions/securities/shares when Mark to Market (M2M) percentage reaches or crosses stipulated margin percentage mentioned on the margin sheet whichever is earlier. PWAPL will have sole discretion to referred stipulated margin or M2M percentage depending upon the market condition. In the event of such square off, the client agrees to bear all the trade related losses based on actual executed prices.

If in case open position (Le. short/long) gets converted into delivery due to non square off because of any reason whatsoever, the client agrees to provide securities/funds to fulfill the pay-in obligation failing which the client will have to face auctions or internal close outs; in addition to this the client will have to pay penalties and charges levied by exchange in actual and losses, if any. Without prejudice to the foregoing, the client shall also be solely liable for all and any penalties and charges levied by the exchange(s).

PWAPL is entitled to prescribe the date and time by which the margin/security is to be made available and PWAPL may refuse to accept any payments in any form after such deadline for margin/security expires. Notwithstanding anything to the contrary in the Mandatory and Voluntary Client Registration Documents or elsewhere, if the client fails to maintain or provide the required margin/fund security or to meet the funds/margins/securities pay in obligations for the orders/trades/deals of the client within the prescribed time and form, PWAPL shall have the right without any further notice or communication to the client to take any one or more of the following steps:

i) To withhold any payout of funds/securities.

ii) To withhold/disable the trading/dealing facility to the client.

iii) To liquidate one or more security(s) of the client by selling the same in such manner and at such rate which PWAPL may deem fit in its absolute discretion. It is agreed and understood by the client that securities here includes securities which are pending delivery/receipt.

iv) To liquidate/Square off partially or fully the position of sale &/or purchase in anyone or more securities/contracts in such manner and at such rate which PWAPL may decide in its absolute discretion.

v) To take any other steps which in the given circumstances, PWAPL may deem fit. The client agrees that the trade related loss(s) if any, on account of anyone or more steps as enumerated herein above being taken by PWAPL, shall be borne exclusively by the client alone and agrees not to question the reasonableness, requirements, timing, manner, form, pricing etc., which are chosen by PWAPL.

Auction Policy :

As per the Exchange Settlement Norms the Pay in Obligation is paid in to the exchange. If Client fails to deliver the relevant securities, Auction of Securities will be arise. It could be internal Auction or Exchange Auction. There is different process for both cases.

Internal Auction:

As per the Exchange Settlement Norms the Pay in Obligation for securities are adjusted at Member level.It could be possible that within the member’s client, there could be opposite positions in the same scrip, which then, necessitates the internal adjustment.

The price of securities will be considered as highest price of the scrip prevailing in the NSE/BSE from the first day of the relevant trading shortage day till the day of closing out on the auction day whichever is higher.

Exchange Auction:

In case of default in security pay in by the Client and the shortage is at Exchange level, the member shall be procuring the price defaulting securities from the Exchange. The price of securities will be considered as provided by Exchange + 6% penalty and other statutory charges.

(Above defined parameters are subject to change from time to time)

Conditions under which a client may not be allowed to take further position or PWAPL may close the existing position of a client:

Client may take exposure up to the amount of margin available with us. Client may not be allowed to take position in case of non-availability/shortage or margin as per our RMS policy of the company. The existing position of the client is also liable to square off/close out without giving notice due to shortage of margin/non making of payment for their pay-in obligation/outstanding debts.

De-registering a client Notwithstanding anything to the contrary stated in the Mandatory and Voluntary Client Registration Documents PWAPL shall be entitled to terminate the Mandatory and Voluntary Client Registration Documents with immediate effect in any of the following circumstances:

i) If the action of the client are prima facie illegal/improper or such as to manipulate the price of any securities or disturb the normal/proper functioning of the market, either alone or in conjunction with others.

ii) If there is any commencement of a legal process against the Client under any law in force.

iii) On the death/lunacy or other disability of the Client.

iv) If a receiver, administrator or liquidator has been appointed or allowed to be appointed of all or any part of the undertaking of the client.

v) If the Client has voluntarily or compulsorily become the subject of proceedings under any bankruptcy or insolvency law or being a company goes into liquidation or has a received appointed in respect of its assets or refers itself to the Board for Industrial and Financial Reconstruction or under any other law providing protection as a relief undertaking.

vi) If the Client being a partnership firm, has any steps taken by the Client and/or its partners for dissolution of the partnership.

viii) If the Client have taken or suffered to be taken any action for its reorganization, liquidation or dissolution.

viii) If the Client has made any material misrepresentation of facts, including (without limitation) in relation to the Security.

ix) If there is reasonable apprehension that the Client is unable to pay its debts or Client has admitted its inability to pay its debts as they become payable.

x) If the Client suffers any adverse material change in his/her/its financial position or defaults in any other agreement with the stock broker.

xi) If the Client is in breach of any term, condition or covenant of this Mandatory and Voluntary Client Registration Documents.

However notwithstanding any termination of the Mandatory and Voluntary Client Registration Documents, all transactions made under/pursuant to this Mandatory and Voluntary Client Registration Documents shall be subject to all terms and conditions of this Mandatory and Voluntary Client Registration Documents and parties to this Mandatory and Voluntary Client Registration Documents submit to exclusive jurisdiction of courts of law at the place of execution of this Mandatory and Voluntary Client Registration Documents by Stock Broker. Client Acceptance of Policies and Procedures stated here in above: I/We have fully understood the same and do hereby sign the same. These policies and procedures may be amended/changed by the broker provided the change is informed to me/us with through anyone or more approved means or methods such as post/speed post/courier/registered post/registered AD/telegram/e-mail/voice mails/telephone (telephone includes such devices as mobile phones etc.) including SMS on the mobile phone or any other similar device; by messaging on the computer screen of the client's computer; by informing the client through employees/agents of PWAPL; by publishing/displaying it on the website of PWAPL/making it available as a download from the website of PWAPL; by displaying it on the notice board of the branch/office through which the client trades or if the circumstances, so require, by radio broadcast/television broadcast/newspapers advertisement etc; or any other approved suitable or applicable mode or manner by an advance notice of 15 days.

I/We agree that the postal department/the courier company/newspaper company and the e-mail/voice mail service provider and such other service providers shall be my/our agent. These policies and Procedures shall always be read along with the Mandatory and Voluntary Client Registration Document and shall be compulsorily referred to while deciding any dispute/difference or claim between me/us and PWAPL before any court of low/judicial/adjudicating authority including arbitrator/mediator etc.

Temporarily suspending or closing client's account at Client's request

On the written request of the client, the client account can be suspended temporarily and can be re-activated on the written request of the client only. During suspension period, the market transaction will be prohibited. However client's pending settlement can take place. PWAPL can withhold the payout of client and suspend his trading account due to surveillance action or judicial or/and regulatory order/action requiring client suspension. On the written request of the client, the client account can be closed provided the client adheres to formalities for account closure including settlement of all dues in the account and closing of all open position. If the client wishes to again open a broking account then the client shall have to complete the KYC and account opening formalities once again. PWAPL also reserve rights to suspend client's account if client's PAN or UID has been asked for latest financial documents updates from exchange or any regulatory body and client is not supporting for submission of the said documents.

Policy for Dormant Accounts:

A Trading Account (Irrespective whether having debit or credit balance) shall be classified as dormant account in case there are no transactions for a period in excess of 365 days from the last transaction date. A dormant account can be re-activated on receipt of a request for reactivation along with valid proof of identity or Client can also send mail from his/her registered email id.

Policy for Minor Trading Account:

A minor demat account can be open for the purpose of IPO/FPO subscription. This is limited purpose trading/demat account where minor trading account allowed only to sell share/s allotted in IPO/FPO and no further buy of security or trading allowed.

We, at Patelwealth.com acknowledge and accept that the personal details that you impart to us, is to be kept in strict confidentiality and to use the information only in the manner which would be beneficial to our customers. We consider our relationship with you as invaluable and strive to respect and safeguard your right to privacy.

We shall protect the personal details received from you with the same degree of care, but no less than a reasonable degree of care, to prevent the unauthorized use, dissemination, or publication of these information as we protect our own confidential information of a like nature.

We shall use the personal information to improve our service to you and to keep you updated about our new product or information that may be of interest to you. The information collected from you would be used in the right spirit and context in which it is intended to be used. Your information would be used by us to process your trading request and to carry out the settlements of your obligations.

We would ensure that we collect personal information only to the extent it is necessary to administer our services in the best possible manner and what is required under the various regulations of Indian Laws. To ensure high quality services and high degree of value addition to you, we may combine the information given by you on the web or through other channels.

Under certain circumstances we may be required to share the information given by you with the third parties, where we feel they can contribute to add value and improve the quality of services imparted by us to you. We shall take all reasonable steps to ensure that the confidentiality of your information is maintained by imposing strict confidentiality standards on all the third parties with whom we part this information. In all circumstances we shall ensure that your personal information is protected by strict confidentiality agreement. We shall not allow any third parties to retain your personal information longer than what is warranted by the nature of services rendered.

We would also impart your personal information wherever it is required to be disclosed under law to any of the governmental agency or regulatory bodies.

We ensure that the personal information given to us by you on the web is placed in the secured portion of our web-site. We use the most advanced encryption technology, Secure Socket Layer (SSL), to ensure that the information transmitted between you and us across the Internet is safe and cannot be accessed by any outsider. SSL has been universally accepted on the World Wide Web for authenticated and encrypted communication between clients and servers.

To ensure security of access to the personal information and transaction details, the access to the secured zone of our website is restricted by the unique login ID and Password selected by you. You should be very careful in handling the ID and password and you should ensure that you do not reveal it to anybody, nor do you keep it in writing. You should keep changing your password periodically.

To ensure safety of your trading access, our technology automatically logs you out of the site if no activity is registered for 30 minutes. However, you should ensure that each time you leave your terminal you log yourself out. This prevents someone else from accessing your account if you leave your computer and your session has not "timed out"

To enable us serve you better, it is necessary that your personal information available with us is updated and accurate. Our web-site enables you to update your personal information. You can also send us an e-mail at Customer Service and we shall ensure that your information is updated and protected from any misuse or unauthorised revelation.

PATEL WEALTH ADVISORS PVT. LTD. Welcomes your comments regarding this privacy statement. If you believe that PATEL WEALTH ADVISORS PVT. LTD. has not adhered to this privacy statement, please contact PATEL WEALTH ADVISORS PVT. LTD. by email at support@patelwealth.com, and we will use commercially reasonable efforts to promptly determine and remedy the problem.

Information Sharing and Disclosure/Disclaimer.

• PATEL WEALTH ADVISORS PVT. LTD. will preserve your personal information without selling or renting it to anyone.
• Only those people or companies will have access to the information that is authorized to do so.
• PATEL WEALTH ADVISORS PVT. LTD. shall not deliberately disclose customer’s personally identifiable information to any unauthorized third person, save and except where such information shall be disclosed in good faith and for the purpose of law for the time being in force or to protect the rights and property of PATEL WEALTH ADVISORS PVT. LTD.
• The information and material contained in these pages and the terms, conditions, and descriptions that appear are subject to change without prior notice. The information contained in this website, including text, graphics, links or other items are provided on an ’as is’, ’as available’ basis.
• PATEL WEALTH ADVISORS PVT. LTD. does not warrant the accuracy, adequacy or completeness of the information and material contained in this policy and expressly disclaims liability for errors or omissions in this information and material. No warranty of any kind, implied, express or statutory, including but not limited to the warranties of not receiving any downloads/ documents and freedom from computer virus, is given in conjunction with the information and materials.
• In no event will PATEL WEALTH ADVISORS PVT. LTD. be liable for any damages, including without limitation direct or indirect, special, incidental, or consequential damages, losses or expenses arising in connection with this website or use thereof or inability to use by any party, or in connection with any failure of performance, error, omission, interruption, defect, delay in operation or transmission, computer virus or line or system failure, even if PATEL WEALTH ADVISORS PVT. LTD., or representatives thereof, are advised of the possibility of such damages, losses or expenses. Hyperlinks from and to other websites are at your own risk; the content, accuracy, opinions expressed, and other links provided by these resources are not investigated, verified, monitored, or endorsed by PATEL WEALTH ADVISORS PVT. LTD.
• PATEL WEALTH ADVISORS PVT. LTD. also in no event shall be liable for any technical failure or for any inability to use by any party for browsing/downloading/extracting any information/data/documents from this website.

1. Introduction to aml

Money Laundering is nothing but a transaction or a series of transactions undertaken with a view to switching around proceeds received or earned from unlawful activities and/or to concealing the true identity of the person/entity who has earned such proceeds. Financial Institutions & intermediaries have been largely used by criminal and terrorist groups to launder money for their unlawful activities. Hence, there is need to develop a proper PMLA framework.

A financial intermediary must therefore institute PMLA measures at client level & transaction level. There is need to adopt proper surveillance measures to monitor demat& trading activities.

2. Background

This Policy has been framed by PWAPL in order to comply with the applicable Anti Money Laundering (AML) Standards/ Combating the Financing of Terrorism (CFT) /Obligations of Securities Market Intermediaries under the Prevention of Money Laundering Act, 2002 and pursuant to the recommendations made by the Financial Action Task Force on anti-money laundering standards, SEBI had issued the Guidelines on Anti Money Laundering Standards vide their notification No.ISD/CIR/RR/AML/1/06 dated 18th January 2006, vide Circular No.ISD/CIR/RR/AML/2/06 dated 20th March 2006 vide letter No. ISD/AML/CIR-1/2008 dated December 19, 2008,vide Circular No. ISD/AML/CIR-1/2009 dated September 01, 2009, Vide Circular No. ISD/AML/CIR-2/2009 date October 23,2009, vide Circular CIR/ISD/AML/3/2010 dated December 31, 2010, vide Circular No. ISD/AML/CIR-1/2010 dated February 2010, vide Circular number CIR/MIRSD/11/2014 dated March 12th, 2014, vide Circular SEBI/HO/MIRSD/DOS3/CIR/P/2018/104 dated July 04th, 2018 and vide Circular No. SEBI/HO/MIRSD/DOP/CIR/P2019/113 dated October 15, 2019, SEBI/HO/MIRSD/MIRSD-SEC-5/P/CIR/2023/022 dated February 03, 2023&SEBI/HO/MIRSD/MIRSDSECFATF/P/CIR/2023/091 dated June 16, 2023 had issued the obligations of the intermediaries registered under Section 12 of SEBI Act, 1992. As per these SEBI guidelines, PWAPL have ensured that proper policy frameworks are put in place as per the Guidelines on Anti Money Laundering Standards notified by SEBI.

3. Objective:

The purpose of this document is to instruct & educate employees of PWAPL and its associates about the efforts needed on their part to detect and deter money laundering and/or terrorist financing activities. It shall be the responsibility of all employees of PWAPL and associates to ensure that implementation of PMLA policy is done as per spirit & intent of law.

PWAPL shall consider carefully the specific nature of its business, organizational structure, type of client and transaction, etc. to satisfy itself that the PMLA measures taken by it are adequate and appropriate to follow the spirit of the suggested measures and the requirements as laid down in the PMLA.

4. Scope:

Global measures taken to combat drug trafficking, terrorism and other organized and serious crimes have all emphasized the need for financial institutions, including securities market intermediaries, to establish internal procedures that effectively serve to prevent and impede money laundering and terrorist financing.

Our PMLA policy is in line with these measures and mandates that all employees & AP ensure the fulfillment of the aforementioned obligations.

To be in compliance with these obligations, the senior management shall be fully committed to establishing appropriate policies and procedures for the prevention of ML and TF and ensuring their effectiveness and compliance with all relevant legal and regulatory requirements. We shall:

• issue a statement of policies and procedures, on a group basis where applicable, for dealing with ML and TF reflecting the current statutory and regulatory requirements
• ensure that the content of these Directives are understood by all staff members
• regularly review the policies and procedures on the prevention of ML and TF to ensure their effectiveness. Further, in order to ensure the effectiveness of policies and procedures, the person doing such a review shall be different from the one who has framed such policies and procedures
• adopt client acceptance policies and procedures which are sensitive to the risk of ML and TF
• undertake client due diligence (“CDD”) measures to an extent that is sensitive to the risk of ML and TF depending on the type of client, business relationship or transaction
• have in system a place for identifying, monitoring and reporting suspected ML or TF transactions to the law enforcement authorities; and
• develop staff members’ awareness and vigilance to guard against ML and TF

Policies and procedures to combat ML shall cover:

• Communication of group policies relating to prevention of ML and TF to all management and relevant staff that handle account information, securities transactions, money and client records etc. whether in branches, departments or subsidiaries;
• Client acceptance policy and client due diligence measures, including requirements for proper identification;
• Maintenance of records;
• Compliance with relevant statutory and regulatory requirements;
• Co-operation with the relevant law enforcement authorities, including the timely disclosure of information; and
• Role of internal audit or compliance function to ensure compliance with the policies, procedures, and controls relating to the prevention of ML and TF, including the testing of the system for detecting suspected money laundering transactions, evaluating and checking the adequacy of exception reports generated on large and/or irregular transactions, the quality of reporting of suspicious transactions and the level of awareness of front line staff, of their responsibilities in this regard.
• The internal audit function shall be independent, adequately resourced and commensurate with the size of the business and operations, organization structure, number of clients and other such factors

The purpose of this document is to guide all the employees of PWAPL and employees of its associates on the steps that they are required to take and implement to prevent and identify any money laundering or terrorist financing activities. It shall be the responsibility of each of the concerned employees that they should be able to satisfy themselves that the measures taken by them are adequate, appropriate and follow the spirit of these measures and the requirements as enshrined in the “Prevention of Money Laundering Act, 2002”.

Some of these suggested measures may not be applicable to every circumstance or to each department, Branch / AP. However, each entity should consider carefully the specific nature of its business, type of customer and transaction to satisfy itself that the measures taken by the employees are adequate and appropriate to follow the spirit of these guidelines.

5. Implementation of this policy

CLIENT DUE DILIGENCE The CDD measures comprise the following:

The main aspect of this policy is the Customer Due Diligence Process which means:

• To obtain sufficient information in order to identify persons who beneficially own or control the securities account. Whenever it is apparent that the securities acquired or maintained through an account are beneficially owned by a party other than the client, that party shall be identified using client identification and verification procedures. The beneficial owner is the natural person or persons who ultimately own, control or influence a client and/or persons on whose behalf a transaction is being conducted. It also incorporates those persons who exercise ultimate effective control over a legal person or arrangement
• To verify the customer’s identity using reliable, independent source document, data or information.Where the client purports to act on behalf of juridical person or individual or trust, the registered intermediary shall verify that any person purporting to act on behalf of such clientis so authorized and verify the identity of that person.
• To identify beneficial ownership and control, i.e. determine which individual(s) ultimately own(s) or control(s) the client and/or the person on whose behalf a transaction is being conducted i.e. UBO;

• For clients other than individuals or trusts: Where the client is a person other than an individual or trust, viz., company, partnership or unincorporated association/body of individuals, the intermediary shall identify the beneficial owners of the client and take reasonable measures to verify the identity of such persons, through the following information:
• a. The identity of the natural person, who, whether acting alone or together, or through one or more juridical person, exercises control through ownership or who ultimately has a controlling ownership interest.
• Explanation: Controlling ownership interest means ownership of/entitlement to:
• i. more than 10% of shares or capital or profits of the juridical person, where the juridical person is a company;
• ii. more than 15% of the capital or profits of the juridical person, where the juridical person is a partnership; or
• iii. more than 15% of the property or capital or profits of the juridical person, where the juridical person is an unincorporated association or body of individuals.
• b. In cases where there exists doubt under clause above as to whether the person with the controlling ownership interest is the beneficial owner or where no natural person exerts control through ownership interests, the identity of the natural person exercising control over the juridical person through other means
• Explanation: Control through other means would include exercised through voting rights, agreement, arrangements or in any other manner.
• c. Where no natural person is identified under any of clauses above, the identity of the relevant natural person who holds the position of senior managing official.
• For client which is a trust: Where the client is a trust, the Company shall identify the beneficial owners of the client and take reasonable measures to verify the identity of such persons, through the identity of the settler of the trust, the trustee, the protector, the beneficiaries with 10% or more interest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership.
• Exemption in case of listed companies: Where the client or the owner of the controlling interest is a company listed on a stock exchange, or is a majority-owned subsidiary of such a company, it is not necessary to identify and verify the identity of any shareholder or beneficial owner of such companies.
• Applicability for foreign investors: Dealing with foreign investors’ may be guided by by SEBI Master Circular SEBI/HO/AFD-2/CIR/P/2022/175 dated December 19,2022 and amendments thereto, if any, for the purpose of identification of beneficial ownership of the client

• d. To verify the identity of the beneficial owner of the client and/or the person on whose behalf a transaction is being conducted, corroborating the information provided in relation to (c); and
• e. To understand the ownership and control structure of the client.
• f. To conduct ongoing due diligence and scrutiny, i.e. Perform ongoing scrutiny of the transactions and account throughout the course of the business relationship to ensure that the transactions being conducted are consistent with the registered intermediary’s knowledge of the client, its business and risk profile, taking into account, where necessary, the client’s source of funds;
• g. To review the due diligence measures including verifying again the identity of the client and obtaining information on the purpose and intended nature of the business relationship, as the case may be, when there are suspicions of money laundering or financing of the activities relating to terrorism or wherethere are doubts about the adequacy or veracity of previously obtained client identification data; and
• h. To periodically update all documents, data or information of all clients and beneficial owners collected under the CDD process.

6. Client acceptance policy

Client acceptance policies and procedures aim to identify the types of clients that are likely to pose a higher than average risk of ML or TF. To apply client due diligence on a risk sensitive basis depends on the type of client business relationship or transaction. The following safeguards shall be followed by the company while accepting the clients

• No account is opened in a fictitious / benami name or on an anonymous basis.
• Non face to face clients. Non face to face clients means clients who open accounts without visiting the branch/offices of the registered intermediaries or meeting the officials of the registered intermediaries. Video based customer identification process is treated as face-to-face onboarding of clients;
• Clients with dubious reputation as per public information available etc.
• Do not accept clients with identity matching with a person known to have criminal background: To check whether the client’s identity matches with any person known to be having criminal background or is not banned in any other manner, whether in terms of criminal or civil proceedings by any enforcement/regulatory agency worldwide.
• To ensure that an account is not opened where the company is unable to apply appropriate CDD measures/ KYC policies. It shall apply in cases where it is not possible to ascertain the identity of the client, or the information provided to the intermediary is suspected to be non - genuine, or there is perceived non - co-operation of the client in providing full and complete information. In such a case, the company shall continue to do business with such a person and file a suspicious activity report. The company shall also evaluate whether there is suspicious trading in determining whether to freeze or close the account. A cautious step shall be taken to ensure that we do not return securities of money that may be from suspicious trades. The Company shall consult the relevant authorities in determining what action shall be taken when suspicious trading is suspected.

* To undertake enhanced due diligence measures as applicable for Clients of SpecialCategory (CSC). CSC shall include the following:

• a) Non - resident clients;
• b) High net-worth clients;
• c) Trust, Charities, Non-Governmental Organizations (NGOs)and organizations receiving donations
• d) Companies having close family shareholdings or beneficial ownership
• e) Politically Exposed Persons” (PEPs): PEP shall have the same meaning as given in clause (db) of sub-rule (1) of rule 2 of the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005.The additional norms applicable to PEP as contained in paragraph 14 of the Master Circular shall also be applied to the accounts of the family members or close relatives of PEPs.
• f) Clients in high risk countries. While dealing with clients from or situate in high risk countries or geographic areas or when providing delivery of services to clients through high risk countries or geographic areas i.e. places where existence or effectiveness of action against money laundering or terror financing is suspect, RE apart from being guided by the FATF statements that inter alia identify such countries or geographic areas that do not or insufficiently apply the FATF Recommendations, published by the FATF on its website (www.fatf-gafi.org) from time to time, shall also independently access and consider other publicly available information along with any other information which they may have access to. However, this shall not preclude RE from entering into legitimate transactions with clients from or situate in such high risk countries and geographic areas or delivery of services through such high risk countries or geographic areaS.

7. Client identification procedure:

The KYC policy shall clearly spell out the client identification procedure (CIP) to be carried out at different stages i.e. while establishing the intermediary – client relationship, while carrying out transactions for the client or when the intermediary has doubts regarding the veracity or the adequacy of previously obtained client identification data.

Following requirements shall form part of CIP:

• To place appropriate risk management systems to determine whether their client or potential client or the beneficial owner of such client is a politically exposed person. Such procedures shall include seeking relevant information from the client, referring to publicly available information or accessing the commercial electronic databases of PEPs.
• To obtain senior management approval for establishing business relationships with PEPs. Where a clienthas been accepted and the client or beneficial owner is subsequently found to be, or subsequently becomes a PEP, we shall obtain senior management approval to continue the business relationship
• To take reasonable measures to verify the sources of funds as well as the wealth of clients and beneficial owners identified as PEP.
• To obtain adequate information to satisfactorily establish the identity of each new client and the purpose of the intended nature of the relationship.
• The information must be adequate enough to satisfy competent authorities (regulatory / enforcement authorities) in future that due diligence wasobserved in compliance with the directives. Each original document shall be seen prior to acceptance of a copy.
• Failure by prospective client to provide satisfactory evidence of identity shall be noted and reported to the higher authority within the organization.
• To conduct ongoing due diligence where it notices inconsistencies in the information provided. The underlying objective shall be to follow the requirements enshrined in the PMLA, SEBI Act and Regulations, directives and circulars issued thereunder so that the intermediary is aware of the clients on whose behalf it is dealing.

RELIANCE ON THIRD PARTY FOR CARRYING OUT CDD

PWAPL may rely on a third party for the purpose of –

• identification and verification of the identity of a client and
• Determination of whether the client is acting on behalf of a beneficial owner, identification of the beneficial owner and verification of the identity of the beneficial owner. Such third party shall be regulated, supervised or monitored for, and have measures in place for compliance with CDD and record-keeping requirements in line with the obligations under the PML Act.
• While doing so, PWAPLL shall ensure:

• To immediately obtain necessary information of such client due diligence carried out by the third party;
• To take adequate steps to satisfy itself that copies of identification data and other relevant documentation relating to the client due diligence requirements will be made available from the third party upon request without delay;
• To be satisfied that such third party is regulated, supervised or monitored for, and has measures in place for compliance with client due diligence and record-keeping requirements in line with the requirements and obligations under the Act;
• The third party is not based in a country or jurisdiction assessed as high risk;
• PWAPL shall be ultimately responsible for CDD and undertaking enhanced due diligence measures for such clients.

8. Risk – based approach:

• It is generally recognized that certain clients may be of a higher or lower risk category depending on the circumstances such as the client’s background, type of business relationship or transaction etc. As such, each of the client’s due diligence measures on a risk sensitive basis shall be applied. The basic principle preserved in this approach is that an enhanced client due diligence process shall be adopted for higher risk categories of clients. Conversely, a simplified client due diligence process may be adopted for lower risk categories of clients. In line with the risk-based approach, the type and amount of identification information and documents that shall be obtained necessarily would depend on the risk category of a particular client.
• Further, low risk provisions shall not be applied when there are suspicions of ML/FT or when other factors give rise to a belief that the customer does not in fact pose a low risk
• RISK ASSESSMENT:

• Risk assessment to be carried out to identify, assess and take effective measures to mitigate money laundering and terrorist financing risk with respect to clients, countries or geographical areas, nature and volume of transactions, payment methods used by clients, etc.
• The risk assessment carried out shall consider all the relevant risk factors before determining the level of overall risk and the appropriate level and type of mitigation to be applied. The assessment shall be documented, updated regularly and made available to competent authorities and self-regulating bodies, as and when required.

• To identify and assess the ML/TF risks that may arise in relation to the development of new products and new business practices, including new delivery mechanisms, and the use of new or developing technologies for both new and existing products. To ensure:

• To undertake the ML/TF risk assessments prior to the launch or use of suchproducts, practices, services, technologies; and
• Adoption of a risk based approach to manage and mitigate the risks.

The risk assessment shall also take into account any country specific information that is circulated by the Government of India and SEBI from time to time, as well as, the updated list of individuals and entities who are subjected to sanction measures as required under the various United Nations' Security Council Resolutions. These shall be accessed by the company at the URL

http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml and

http://www.un.org/sc/committees/1988/list.shtml

9. Record keeping requirements & retention of records

Records pertaining to transactions of clients shall be maintained and preserved for a period of five years from the date of the transaction. Record of documents evidencing the identity of the clients and beneficial owners (e.g., copies or records of official identification documents like passports, identity cards, driving licenses or similar documents) as well as account files and business correspondence shall be maintained and preserved for a period of five years even after the business relationship with the client has ended or the account has been closed, whichever is later. Records shall be maintained as are sufficient to permit reconstruction of individual transactions (including the amounts and types of currencies involved, if any) so as to provide, if necessary, evidence for prosecution of criminal behavior or if there be any suspected drug related or other laundered money or terrorist property, the competent investigating authorities would need to trace through the audit trail for reconstructing a financial profile of the suspect account. To enable this reconstruction, the following information of the client shall be maintained in order to maintain a satisfactory audit trail:

a. the beneficial owner of the account;

b. the volume of the funds flowing through the account; and

c. for selected transactions:

• i. the origin of the funds
• ii. the form in which the funds were offered or withdrawn, e.g. cheques, demand drafts etc.
• iii. the identity of the person undertaking the transaction;
• iv. the destination of the funds;
• v. the form of instruction and authority.

System is been maintained to record all such transaction as prescribed under rule 3 of the PML Rules as follows:

• All cash transactions of the value of more than Rs 10 lakh or its equivalent in foreign currency.
• All series of cash transactions integrally connected to each other which have been valued below Rs 10 lakh or its equivalent in foreign currency where such series of transactions take place within one calendar month and the monthly aggregate exceeds an amount of ten lakh rupees or its equivalent in foreign currency.
• All cash transactions where forged or counterfeit currency notes or bank notes have been used as genuine or where any forgery of a valuable security or a document has taken place facilitating the transactions;
• All suspicious transactions whether or not made in cash and including, inter-alia, credits or debits into from any non-monetary account such as Demat account, security account maintained by the registered intermediary.

It may, however, be clarified that for the purpose of suspicious transactions reporting, apart from ‘transactions integrally connected’, ‘transactions remotely connected or related’ shall also be considered.

In case there is a variance in CDD/AML standards prescribed by SEBI and the regulators of the host country, branches/overseas subsidiaries of intermediaries are required to adopt the more stringent requirements of the two.

Record of information related to transactions, whether attempted or executed, which are reported to the Director, FIU‐IND, as required under Rules 7 & 8 of the PML Rules, shall be maintained and preserved for a period of five years from the date of the transaction with the client.

In the case of transactions where any investigations by any authority has been commenced and in the case of transactions which have been the subject of suspicious transactions reporting all the records shall be maintained till the authority in forms of closure of the case.

10. Information to be maintained:

Following information in respect of transactions referred to in Rule 3 of PML Rules shall be maintained:

• the nature of the transactions;
• the amount of the transaction and the currency in which it is denominated;
• the date on which the transaction was conducted; and
• the parties to the transaction.

11. Monitoring of transactions:

Special attention shall be paid to all complex unusually large transactions / patterns which appear to have no economic purpose. Internal threshold limits for each class of client accounts shall be defined and special attention shall be paid to transactions which exceeds these limits.

The background including all documents/office records /memorandums/clarifications sought pertaining to such transactions and purpose thereof shall also be examined carefully and findings shall be recorded in writing. Further such findings, records and related documents shall be made available to auditors and also to SEBI/Stock exchanges/FIUIND/ other relevant Authorities, during audit, inspection or as and when required. These records shall be preserved for a period of five years from the date of transaction with such client.

Record of the transactions in terms of Section 12 of the PMLA shall be preserved and those transactions of a suspicious nature or any other transactions notified under Section 12 of the Act shall be reported to the Director, FIU-IND. Suspicious transactions shall be regularly reported to the Senior Management.

12. Suspicious transaction monitoring and reporting:

All are requested to analyze and furnish details of suspicious transactions, whether or not made in cash. It should be ensured that there is no undue delay in analysis and arriving at a conclusion.

What is a Suspicious Transaction?

• Clients whose identity verification seems difficult or clients appear not to cooperate
• Substantial increase in activity without any apparent cause.
• Large number of accounts having common parameters such as common partners / directors / promoters / address / email address / telephone numbers / introducers or authorized signatories;
• Transactions with no apparent economic or business rationale
• Sudden activity in dormant accounts;
• Source of funds are doubtful or inconsistency in payment pattern;
• Unusual and large cash deposits made by an individual or business;
• Transfer of investment proceeds to apparently unrelated third parties;
• Multiple transactions of value just below the threshold limit of Rs.10 Lacs specified in PMLA so as to avoid possible reporting;
• Clients transferring large sums of money to or from overseas locations with instructions for payment in cash;
• Purchases made on own account transferred to a third party through off market transactions through DP Accounts;
• Suspicious off market transactions;
• Large deals at prices away from the market.
• Accounts used as ‘pass through’. Where no transfer of ownership of securities or trading is occurring in the account and the account is being used only for funds transfers/layering purposes.
• All transactions involving receipts by non-profit organizations of value more than rupees ten lakhs, or its equivalent in foreign currency;
• Clients of high risk countries, including countries where existence and effectiveness of money laundering controls is suspect or which do not or insufficiently apply FATF standards, as ‘Clients of Special Category’. Such clients should also be subject to appropriate counter measures. These measures may include a further enhanced scrutiny of transactions, enhanced relevant reporting mechanisms or systematic reporting of financial transactions, and applying enhanced due diligence while expanding business relationships with the identified country or persons in that country etc.
• Irrespective of the amount of transaction and/or the threshold limit envisaged for predicate offences specified in part B of Schedule of PMLA, 2002, file STR if we have reasonable grounds to believe that the transactions involve proceeds of crime.”

What to Report?

• Any suspicious transaction shall be immediately notified to the Money Laundering Control Officer, Compliance Officer, Principal Officer or any other designated officer.
• The notification may be done in the form of a detailed report with specific reference to the clients, transactions and the nature /reason of suspicion.
• The notification may be done in the form of a detailed report with specific reference to the clients, transactions and the nature /reason of suspicion.
• In exceptional circumstances, consent may not be given to continue to operate the account, and transactions may be suspended, in one or more jurisdictions concerned in the transaction, or other action taken.
• The Principal Officer/Money Laundering Control Officer and other appropriate compliance, risk management and related staff members shall have timely access to client identification data and CDD information, transaction records and other relevant information
• It is likely that in some cases transactions are abandoned or aborted by clients on being asked to give some details or to provide documents.
• It is clarified that intermediaries should report all such attempted transactions in STRs, even if not completed by clients, irrespective of the amount of the transaction.

13. List of designated individuals or entities

An updated list of individuals and entities which are subject to various sanction measures such as freezing of assets/accounts, denial of financial services etc., as approved by the Security Council Committee established pursuant to various United Nations' Security Council Resolutions (UNSCRs) can be accessed at its website at https://press.un.org/en/content/press-release
http://www.un.org/sc/committees/1267/consolist.shtml
www.un.org/securitycouncil/sanctions/1718/press-releases.

Precaution shall be taken to ensure that no account is opened whose name shall be appearing in such list.

Periodic review of the existing account shall be conducted to ensure that no existing account are linked to any of the entity or individual included in the list.

Any resemblance found shall be reported to SEBI and FIU-IND.

14. Procedure for freezing of funds, financial assets or economic resources or related services:

• Section 51A of the Unlawful Activities (Prevention) Act, 1967 (UAPA), relating to the purpose of prevention of, and for coping with terrorist activities was brought into effect through UAPA Amendment Act, 2008. In this regard, the Central Government has issued an Order dated August 27, 2009 detailing the procedure for the implementation of Section 51A of the UAPA.
• Under the aforementioned Section, the Central Government is empowered to freeze, seize or attach funds and other financial assets or economic resources held by, on behalf of, or at the direction of the individuals or entities listed in the Schedule to the Order, or any other person engaged in or suspected to be engaged in terrorism. The Government is also further empowered to prohibit any individual or entity from making any funds, financial assets or economic resources or related services available for the benefit of the individuals or entities listed in the Schedule to the Order or any other person engaged in or suspected to be engaged in terrorism.
• To ensure that no accounts are opened in the name of individuals/entities appearing in the lists of individuals and entities, suspected of having terrorist links, which are approved by and periodically circulated by the United Nations Security Council (UNSC).
• In order to ensure expeditious and effective implementation of the provisions of Section 51A of UAPA, Government of India has outlined a procedure through an order dated February 02, 2021 (Annexure 1) for strict compliance. These guidelines have been further amended vide a Gazette Notification dated June 08, 2021

15. Reporting to FIU:

In terms of the PMLA rules, brokers and sub-brokers are required to report information relating to cash and suspicious transactions to the Director, Financial Intelligence Unit-India (FIU-IND) 6th Floor, Hotel Samarat, Chanakyapuri, New Delhi - 110021 as per the schedule given below:

The Principal Officer will be responsible for timely submission of CTR, STR and NTR to FIU-IND. Utmost confidentiality shall be maintained in filing of CTR, STR and NTR to FIU-IND. No nil reporting needs to be made to FIU-IND in case there are no cash/ suspicious/ non – profit organization transactions to be reported.

Irrespective of the amount of transaction and/or the threshold limit envisaged for predicate offences specified in the PMLA, 2002, an STR shall be filed, if there are reasonable grounds to believe that the transactions involves proceeds of crime.

16. Principal officer

The company has designated the Principal Officer who shall be responsible for implementation and compliance of this policy shall include the following:

• Compliance of the provisions of the PMLA and AML Guidelines
• Monitoring the implementation of Anti Money Laundering (AML) and Combating Financing of Terrorism (CFT) Policy
• Reporting of Transactions and sharing of information as required under the law
• Ensuring submission of periodical reports to Top Management. The report shall mention if any suspicious transactions are being looked into by the respective business groups and if any reporting is to be made to the authorities.
• Ensure that PWAPLdischarges its legal obligation to report suspicious transactions to the concerned authorities.

17. Designated director

“Designated Director” means a person designated by the Board of Directors to ensure over all compliance with the obligations imposed under The Prevention of Money Laundering Act, 2002 and the Rules framed there under, as amended from time to time, and include the Managing Director or a Whole‐time Director duly authorized by the Board of Directors. The Company shall appoint a Designated Director and communicate the details of the Designated Director, such as, name, designation and address to the Office of the Director, FIU‐IND and update the same whenever there is any change.

18. Details of designated director & principal officer

19. System and procedure for hiring of employees

• The Department Heads shall be involved in hiring of new employees, shall adequately carry out the screening procedure in place to ensure high standards in hiring new employees.
• Bona fides of employees are checked to ensure that the employees do not have any link with terrorist or other anti-social organizations.
• Reference of candidate: - Candidate having reference would be called for the interview. In case of employee having applied through newspaper would be called for the interview after scrutinizing his/her bio-data.
• Background of the candidate: - Background of the employee should be clean & under no circumstances candidate who has left earlier employer due to dispute should be selected.
• Third party verification of candidate: - If necessary third party verification should be done by making phone call.
• Experience: - Candidate should have to appear for the skilled test depending on the exposure.
• Candidate should be aware for PMLA 2002 guidelines. Proper training should be given if he/she is not aware.

20. Employees training:

• Importance of PMLA Act & its requirement to employees through training.
• Ensuring that all the operating and management staff fully understands their responsibilities under PMLA for strict adherence to customer due diligence requirements from establishment of new accounts to transaction monitoring and reporting suspicious transactions to the FIU.
• Organizing suitable training programs wherever required for new staff, front- line staff, supervisory staff, etc.
• Briefings to new employees at induction programs and rounds of small meetings and presentations at branch locations.
• Adequate training should be given to all the concerned employees to (a) ensure that the contents of the guidelines are understood and (b) develop awareness and vigilance to guard against money laundering and terrorist financing.
• As of now, AML policy will be covered during the induction training given to all new recruits and also during the on-going compliance sessions.

21. Investors education

As the implementation of AML/CFT measures being sensitive subject and requires us to demand and collect certain information from investors which may be of personal in nature or has hitherto never been called for, which information include documents evidencing source of funds/income tax returns/bank records etc. and can sometimes lead to raising of questions by the client with regard to the motive and purpose of collecting such information. There is, therefore, a need for us to sensitize the clients about these requirements, as the ones emanating from AML and CFT framework. We shall circulate the PMLA Circulars and other specific literature/pamphlets etc. so as to educate the client of the objectives of the AML/CFT program. The same shall also be emphasized on, in the Investor Awareness Programs conducted by us at frequent intervals of time. The importance of the same is also made known to them at the time of opening the Account.

Note: This policy has been reviewed in terms of SEBI/HO/MIRSD/MIRSD-SEC-5/P/CIR/2023/022 February 03, 2023 &SEBI/HO/MIRSD/MIRSDSECFATF/P/CIR/2023/091 dated June 16, 2023 by Board of Directors of erstwhile PWAPL during its meeting held on 06thJuly, 2023and is being circulated to all concerned for compliance of the same.

In order to mitigate the Risk in Securities Business of the Company, the management of the Company is agreed to accept and implement the below mentioned Risk Management Policy. The Policy will help the Member to mitigate the risk, monitor the different margin obligations, and protect the clients.

Setting up client exposure limit

Exposure is allowed to the clients depending upon the margin available in form of funds or approved securities values after deducting an appropriate haircut. Clients is liable to pay Applicable initial margins, withholding margin, special margins or such other margin as Are considered necessary by the Exchange. Further Patel Wealth at its discretion may collect additional margin or may even reduce the margin even though not required by the Exchange. Clients are supposed to maintain sufficient balance with the Patel Wealth Pre Trade Depending on the channel through which they trade. Patel Wealth may even levy additional Margin or relax the margins earlier imposed based on factors such as, client’s level positions, Volatility in particular stock or the market in general. Exposure allowed to clients may very Depending in the clients past trading performance, quality of collateral market circumstances And dynamics and other such factors.

Imposition of penalty/ delayes payment charges

• The client is required to adhere exchange/members’ guidelines and due diligence with trading.
• Clients are required to make
• i. Securities pay in on T+1 day
• ii. Funds pay in on T+1 day
• In case of default in security pay in by the client and the shortage is at member level, the member shall Be procuring the defaulting securities/quantities from the market and the value of the security + shortfall in the value of the original transactions, if any, and penalty (decided by the Member from time to time) shall be recovered from the defaulting client. Further the client shall borne all Expenses, cost incurred by PWAPL with respect to default in security pay in. In case of the default of securities pay in by the client and the shortage is from exchange, auction value of the respective exchange plus penalty (decided by the member from time to time) shall be recovered from the Defaulting client.
• In case of funds default by the client, the member shall be liquidating the stocks to recover the money; any shortfall arising out of liquidating securities by the members shall also be recovered from the defaulting Client along with interest (decided by the member from time to time).
• In case of debit balance in the client account, the same shall be liable for the delayed payment charges. The calculation of these charges is an automated process.
• In accordance with the SEBI circular No. CIR/HO/MIRSD/DOP/CIR/P/2019/75 dated June 20, 2019, regarding handling of client’s security by Trading Members / Clearing Members, effective from 01 October, 2019 If there is overdue debit balance in clients trading account for more than 5 days from the date of purchase, The securities shall be squared off from Risk management team without any pre confirmation from the client.
• Similarly, if clients’ ledger is credit on settlement day, the securities purchase by clients’ shall directly be transfer to his/her/its beneficiary account and PWAPL shall not retain those securities.
• In accordance with the SEBI circular No. CIR/HO/MIRSD/DOP/CIR/P/2019/75 dated June 20, 2019, in case client fails to pay due on settlement day, PWAPL shall retain that/those security/ies and no any trading related benefit will given to client/s.
• In case client/s wishes to give securities as collateral for the purpose derivative transaction, he/she/it needs to transfer such securities in separate beneficiary account as define by PWAPL. Also securities purchase by client/s either paid or unpaid, shall not transfer directly to collateral account.

Conditions under which a client may not be allowed to take further position or The broker may close existing position of a client:

• In the event where overall position in any scrip or derivative contract has reached the Limit prescribed by regulators or exchanges.
• In case the there is debit balance in client’s account.
• On the basis of risk management system of Patel Wealth.
• in case there is apprehension that the client is debarred entity by any regulatory authority.
• In case where Patel Wealth perceives risk with regard to any regulatory action or with regard To delay or non-payment of margin or any other obligations Patel Wealth may block or suspend the trades of such clients.
• In case where suspicious transactions are observed, including but not limited to off market Transactions.
• in any other case where the Patel Wealth deems fit according to its internal policy on management.
• In Case of debit balance:- Client will not be granted further exposure when debit balance arise Out of clients failure to pay the required amount ans such debit balances continues beyond the fifth Day ,as reckoned from date of Pay-in.
• Further, we have change in our RMS policy w.e.f 01 May 2017 to consider client ledger balance And stock balance of across all exchange and across all segments and same practice continue onwards.

The objective of this policy to have effective surveillance frame work for DP’s. It will also help identify adverse situation in markets and pursue appropriate preventive action thereby providing Investor protection. The alerts will be provided by depository (NSDL) all such alerts will be verified by the compliance officer and due diligence of such clients will be undertaken once again.

DP shall maintain a record of all alerts provided by the Depository (NSDL) and will also record the action taken against such alerts.

Any adverse observation in the alerts will be reported to NSDL. This policy was place before the board the director and approved by the boards on the 1st August 2023.

This policy shall be reviewed once in a year and shall be revised as and when required. Following alerts will be generated by DP.

• Client has opened several multiple accounts that is account open with same PAN /mobile number / email id/ bank account no. / Address Etc. all such account shall be closed with immediate effect record thereof will be kept by DP.
• Any mail getting bounced for any BO account the records thereof will be kept by the DP.
• Frequent changes in details of demat account such as, address, email id, mobile number, Authorized Signatory, POA holder etc.
• Any BO making frequent off market transactions in a month shall be examined by DP and due diligence of such client and reason of such off-market transaction will be recorded by the DP.
• Off-market transfers not commensurate with the income/Net worth of the client.
• Any pledge transaction not commensurate with the income/Net worth of the client. The new net worth shall be obtained by the DP.
• Off-market transfers (High Value) immediately after modification of details in demat account
• Review of reasons of off-market transfers provided by client for off-market transfers vis-à-vis profile of the client e.g., transfers with reason code Gifts with consideration, frequent transfers with reason code Gifts/Donation to unrelated parties, frequent transfers with reason code off-market sales
• Alert for newly opened accounts wherein sudden Increase in transactions activities in short span of time and suddenly holding in demat account becomes zero or account becomes dormant after some time.
• Any other alerts and mechanism in order to prevent and detect any type of market manipulation activity carried out by their clients.

In point 8,9,10 all such cases DP shall conduct due diligence of the client and shall ensure there is no adverse observation and if found shall be reported to NSDL.

DP will report to NSDL in the prescribed format at the end of every quarter the status of alerts.

The compliance officer shall be responsible for supervision and surveillance of policy.

The data of alerts provided by NSDL and generated by the DP and the action taken against such alerts shall be placed before the board.

Compliance officer shall ensure the internal audit of such all alerts and shall further ensure the any adverse observation are submitted to DP.