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Trading and DP account opening for Individual

Kindly keep the following points in mind before submitting your forms to ensure a smooth application process:

• Passport Size Photo (2 Nos.)
• Aadhaar Card Photocopy
• Photocopy of ID/Address Proof (2 copies) The given address and the proof of address should be same
• Signatures wherever marked and applicable.
• PassPort and Visa copy is compulsory for NRI clients
• The photocopy should be signed by the clients
• If it is a Joint Account, both of the clients should sign all the forms
• The First account holder has to sign first
• Photocopy of PAN Card is compulsory (2 copies)
• A Cheque (Cancelled/for Investment) from the bank mandate provided
• Signatures in all the proofs
• All photocopies should be signed by the Client

Account opening for PMS

• Resident/Individual/Non-Resident/Non-Individual
• Passport Size Photo (5 Nos.): 4 on the forms, 1 given separately
• Aadhaar Card Photocopy
• All photocopies should be signed by the Client
• Self Attested Photocopy of PAN Card is compulsory (4 copies)
• Self-attested copy of ID/Address Proof (4 copies) The given address and the proof of address should be same
• A Cheque (Cancelled/for Investment) from the bank mandate provided (to be drawn in favour of own name)
• Signatures where ever applicable and Marked in bank account opening form, Trading Application, Demat Application and PMS agreement.
• If it is a Joint Account, both of the clients should sign all the forms
• The First account holder has to sign first

NRI (additional)
• Self Attested Pass Port and Visa copy are compulsory for NRI clients.
• Separate Portfolio Investment Scheme (PIS ) bank account
• Approval from RBI for trading in EQ/FNO/MF & PMS.
• Foreign Address proof.

Account opening for Paterson SIP

• New investors who wish to enrol for SIP through NACH (Automated clearing services) should also fill up the Trading and Demat Application forms in addition to this form.
• Existing investors must provide their Account number and need not fill the forms mentioned in point no. 1.
• For further details of this service, like minimum amount, risk factors, etc., investors should, before investment, refer to the Product Note(s) issued till date, available free of cost at any of the branches/offices or distributors or from the website.
• The SIP through NACH Form, Trading and Demat Application forms (in case of new investors), along with the necessary Cheque or copy thereof should be submitted at least a month in advance of the date of the first NACH debit transaction.
• The bank branch provided for NACH should participate in the local MICR clearing. The investor shall inform his/her Banker about the NACH mandate and Paterson Securities (P) Ltd. will not be liable for any transaction failures due to rejection by the investor’s bank/branch.
• SIP through NACH is presently available only on the 10th of the month. If any other date is mentioned, 10th date will be automatically fixed. In case these dates are non-business days for the service, then SIP will be processed for the next business day’s NAV related price or the Scrip current market price at the time of purchase.
• For more information on this facility, please read the terms & conditions mentioned on the overleaf of the NACH mandate form.

Trading and DP account opening for corporates

• Public and Private Limited Companies
• Memorandum and Articles of Association with Certificate of Incorporation - A clause stating that the investments in shares/debentures etc.
• Pan Card Copy of the Corporate
• A resolution stating the List of Authorized Signatories for opening and operating Demat and Trading account with specification of Paterson Securities Private Limited and also mention the authorized person, who will be operating the account.
• Address Proof of the Corporate
• Address Proof and Pan Card Copy of Authorized Signatories
• Latest Bank Statement of the Corporate
• A cancelled Cheque from the Bank Mandate Provided
• A file copy of the Two Years Income Tax Returns Filed
• Passport Size Photograph of all the authorized Signatories 2 each
• All the Photocopies are compulsorily to be self-attested

For Partnership Companies

(Only for Trading Account. Demat account to be opened in the name of Individual Partners only)

• Partnership Deed
• Pan Card Copy of the Firm
• A resolution stating the List of Authorized Signatories for opening and operating the Demat and Trading account with Paterson Securities.
• Address Proof of the Firm
• Address Proof and Pan Card Copy of Authorized Signatories
• Bank Statement of the Firm
• A Cancelled Cheque from the Bank Mandate Provided
• A file copy of Two Years Income Tax Returns Filed
• Passport Size Photograph of all the authorized Signatories (2 each)
• Registration Certificate of the firm.

What is a depository?

A Depository provides the facility for holding and/or transacting securities in, book entry form i.e. electronic form by way of dematerialization (so that they exist only as electronic records). A depository functions somewhat similar to a commercial bank.

What is Dematerialization (DEMAT)?

Dematerialisation is a process by which physical certificates are converted into electronic form.

What is Rematerialization (REMAT)?

Rematerialisation is the process of converting securities held in a demat account in electronic form back into physical certificate form.

How can I avail of a Depository Service?

To avail of the services offered by a depository, the investor has to open a demat account with a registered DP.

What is a DP?

A Depository Participant (DP) is an agent of the depository who is authorized to offer depository services to investors. Financial institutions, banks, custodians and stockbrokers complying with the requirements prescribed by SEBI/ Depositories can be registered as

DP. An investor will always interact with a DP for the services and cannot directly approach the depository for any services.

Who is Registered Owner of Securities?

When securities of a company are held in physical form by an investor, Name of the investor is recorded in the books of the company as a ‘Registered Owner’ of the Securities. Each certificate is identified by Folio number, certificate number and distinctive range numbers.

Who is a Beneficial Owner (BO)?

When physical shares are converted in to electronic form, the depository becomes ‘Registered Owner’ in the books of the company and investors name is removed from books of the company. Depository is holding shares in its records on behalf of the investors who have opened a demat account with the depository. Hence all benefits are given to the actual investor who is called as a ‘Beneficial Owner’ (BO) of the securities.

What are Depository Services?

Depository provides following services to the investors through a DP:
• Opening a demat account.
• Dematerialization, i.e. converting physical securities into electronic form.
• Rematerialisation, i.e. converting electronic securities balances held in a BO account in physical form.
• To maintain the record of holdings in the electronic form.
• Settlement of trades by delivering/receiving underlying securities from/in BO accounts.
• Settlement of transactions between BOs entered outside the Stock Exchange.
• Receiving electronic credit in respect of securities allotted by issuers under IPO or otherwise on behalf of demat account holders.
• Receiving non-cash corporate benefits, such as allotment of bonus and rights shares or any other non-cash corporate benefits given by the issuers in electronic form on behalf of its demat account holders.
• Pledging of dematerialized securities & facilitating loans against shares.
• Freezing of the demat account for debits, credits, or both.
• Internet facilities “easy” and “easiest”, if the DP is registered for the same with CDSL.

What should I do to open a demat account?

To open a demat account you need to submit the following forms and documents:
• Identity Proof (photocopy of anyone)
• Passport
• Driving license
• Voter ID

Can I open more than one account with the same DP?

Yes, there is no restriction on the number of accounts you can open with a DP.

Am I restricted to having account with only one DP?

No, there are no restrictions on the number of DPs you can open accounts with

What is the legal framework governing the depository functions in India?

Following are the acts and regulations under which a depository functions:
• The Depositories Act, 1996
• SEBI (Depositories and Participant) Regulations
• CDSL Bye-laws which are framed under the above two documents
• Prevention of Money Laundering Act (PMLA), 2002.

In whose name will the investments be made?

As per the SEBI Norms, all the investments are made in the Investor’s names only. For this purpose, separate bank and demat account are opened, wherein all the stocks are credited and all the non-cash benefits like bonus are credited directly to the demat account. Similarly, all the cash benefits like dividends are credited to the investor’s account directly.

Who is a Portfolio Manager?

Any person who pursuant to a contract or arrangement with a client, advises or directs or undertakes on behalf of the client the management or administration of a portfolio of securities or the funds of the client, as the case may be is a portfolio manager.

What is the difference between a discretionary portfolio and a non-discretionary portfolio?

The discretionary portfolio manager individually and independently manages the funds of each client in accordance with the needs of the client. The non-discretionary portfolio manager manages the funds in accordance with the directions of the client. Paterson offers Discretionary PMS.

What contract should be made between the portfolio manager and his clients?

The portfolio manager, before taking up an assignment of management of funds or portfolio of securities on behalf of the client, enters into an agreement in writing with the client clearly defining the relationship and setting out their mutual rights, liabilities and obligations relating to the management of funds or portfolio of securities containing the details as specified in Schedule IV of the SEBI (Portfolio Managers) Regulations, 1993.

What is the minimum specified value of funds or securities for a PMS account?

As per SEBI regulations, the portfolio manager is required to accept funds or securities having a minimum worth of five lac rupees from the client while opening the PMS account.

What is the maximum investment limit in PMS?

There is no maximum limit for investment in the PMS.

What is the investment horizon?

The ideal investment horizon is scheme specific:
• Paterson Developer – 2-3 years
• Paterson Multiplier – 3 years
• Paterson Generator – 1 year and above

Is there a lock-in period for PMS?

No, there is no lock-in period and the client can exit/redeem their funds at any point in time.

How can I check the NAV positions and transactions?

To be launched soon.

How will I receive the contract notes?

The E-Contracts can be sent by e-mail or the physical copies (by mail/courier).

Are there different forms for different schemes?

No, the same form can be used for any scheme.

What would be the amount invested in the market on a constant basis?

The fund manager will decide on the allocation by investment type based on market conditions.

Can the portfolio be customized to suit my preferences?

The discretion to invest primarily lies with the Fund Manager with the objective to maximize your returns. At the same time, we understand that each client is unique and might not wish to invest in certain sectors/stocks, etc. We can take these into consideration at the time of portfolio structuring.

In whose name will the investment be made?

As per the SEBI Norms, all the investments are made in the Investor’s names only. For this purpose, separate bank and demat account are opened, wherein all the stocks are credited and all the non-cash benefits like bonus are credited directly to the demat account. Similarly, all the cash benefits like dividends are credited to the investor’s account directly.

What is the documentation needed to open a PMS account?

The following forms will be required:
• PMS Application Form
• Bank account opening form – this is a PMS specific bank account
• DP account – Paterson Securities Pvt Ltd
• Cash and Derivative account form

The following documents will be required:
• Address proof
• ID proof
• PAN card copy
• Aadhaar Card

Is the Permanent Account Number (PAN) compulsory and Aadhaar Number?

Yes.

Which is our designated bank?

IndusInd Bank is our designated bank for all PMS activities.

What is the fee structure for PMS?

The fee structure from PMS is scheme specific and it may be either a fixed amount or a performance-based fee or a combination of both.

How are the management fees charges?

The management fees are charged as a percentage of the funds under management and are levied on a quarterly basis.

What are the upfront payments?

Entry load of 2% is the only upfront payment.