Equity SIP Policy
Policy on Handling of Equity SIP Orders of Clients
1. Objective
This policy outlines the standard operating procedure for enabling and managing Equity Systematic Investment Plan (SIP) orders for clients trading through our platform. The aim is to promote disciplined investment and facilitate ease of equity investing.
2. Applicability
- This policy applies to all registered clients using the following interfaces:
- Internet-Based Trading (IBT)
- Mobile Applications
- Web Browser Platforms
- Note: Dealer logins do not have access to Equity SIP functionalities.
3. Features of Equity SIP
- 3.1 Stock Selection: Clients can select listed equity stocks of their choice for initiating SIPs.
- 3.2 Initiating SIP: Navigate to the Buy option for the selected stock and choose the SIP tab to configure settings.
- 3.3 Types of SIP:
- Amount-Based SIP: Fixed investment amount each interval.
- Quantity-Based SIP: Fixed number of shares to be purchased each interval.
- 3.4 SIP Frequency Options: Clients may select from:
- Daily
- Weekly
- Monthly
- Quarterly
- Every 15 Days
- 3.5 Installment Configuration: Clients must specify the total number of SIP installments when placing the order.
- 3.6 Price Conditions:
- Market Price: Execute SIP at the prevailing market price.
- Limit Price: Execute SIP only if the stock is at or below/above a specified price. Optional: A Cap Price can be set to control the maximum purchase price.
- 3.7 Validity: SIP orders remain active and execute based on the configured frequency until:
- The specified number of installments is completed, or
- The end date is reached, whichever is earlier.
4. Margin & Fund Management
- 4.1 Requirement of Margin: Adequate margin is essential to ensure execution of Equity SIP orders.
- 4.2 Modes to Maintain Margin:
- Pledge of Demat Securities
- Clear Funds available in the client trading account
- 4.3 Timelines for Fund Transfer: In absence of pledged securities, clients must transfer funds from their registered bank account at least 1 trading day prior to the scheduled SIP execution date.
5. Tracking & Monitoring
Clients can view the status and history of their SIP transactions through the ‘Trades’ > SIP tab on the trading platform.
6. Important Disclaimers
- SIP orders are subject to market conditions, price fluctuations, and margin sufficiency.
- Orders may fail to execute if sufficient funds or pledged margins are unavailable at execution time.
- Clients are advised to monitor SIP investments regularly and adjust or cancel SIPs if needed.
7. Investor Wealth Creation
We encourage clients to utilize SIPs for long-term wealth creation and financial discipline. Equity SIPs allow clients to average purchase costs, reduce the impact of volatility, and simplify investing.