Terms and conditions

The following terms and conditions apply to all CDSL Online Investment Account opened and maintained with Cholamandalam Distribution Services Limited (hereinafter referred to as “CDSL”).

1. Interpretation

“CDSL Online Investment Account Opening Form” means the account on which the customer effects the transactions pursuant to the terms and conditions as agreed upon.

“Application Form” means the CDSL Online Investment Account Opening Form provided by CDSL to the customers in accordance with its general operating procedures.

“AMC” means Asset Management Company, a company registered with SEBI, which takes investment / divestment decisions for the Mutual Funds and manages the assets of Mutual Funds.

“Business Day” means a Business Day or Working Day or a day by any name called on which the AMC / Channel Partner / Service provider accepts application forms and more specifically as defined in the Scheme Information Document of the respective schemes.

“Customer” means any person or persons who hold(s) and operate(s) CDSL Online Investment Account to invest in various investment products including but not limited to units in various Mutual Funds as may be offered by the AMC / Channel Partner from time to time.

“Fees” means and includes upfront fees or such other fees by whatever name called and charged by CDSL, as decided and / or amended from time to time.

“KYC” means Know Your Customer policies in respect of money laundering, corruption and terrorism, which are appropriate for the line of business, which meets or exceeds the applicable regulatory and industrial requirements aimed at ascertaining the customer’s identity and where appropriate or required by the regulatory authorities.

“Mutual Funds” shall means various Mutual Funds / Mutual Fund Houses registered with Securities Exchange of Board of India (SEBI).

“NAV” shall mean the Net Asset Value of the units of the Mutual Funds and the plans and options therein, calculated on every Business Day, in the manner provided in the Scheme Information Document of the respective Mutual Funds or as may be prescribed by SEBI regulations from time to time.

“SID / SAI” means Scheme Information Document / Statement of Additional Information document issued by the AMC, as amended from time to time (including by way of addendum), offering Units of the respective schemes / plans for subscription.

“KIM” means Key Information Memorandum abridged Scheme Information Document and prospectus of the Mutual Fund that is a part of the scheme’s application form.

“Person” include any individual, government, statutory body, corporate, business, firm, partnership, cooperation or unincorporated body etc.,

“Products” means any financial / investment products offered by CDSL including Mutual Funds, portfolio management or any other collective investment scheme or any financial product and non financial product authorized or recognized by the SEBI or any other regulatory authorities (or deemed to be authorized or recognized under law) and distributed by or made available through CDSL from time to time on CDSL platform www.cholamoneymanager.com.

“Channel Partner / Service Provider” means and includes any person with whom CDSL has a business agreement to provide relevant products / services as may be offered through CDSL Online Investment Account.

“Transactions” means any transaction (both financial and non financial transaction) effected under the CDSL Online Investment Account in respect of any financial products / Mutual Funds and includes applications for subscription, switching, transferring and redemption of units.

“Unit” means an interest of an investor(s) in the scheme of Mutual Funds consisting of each unit representing one undivided share in the net assets of that scheme as evidenced by the account statement.

2. Scope and Application

The terms and conditions herein shall apply to services provided by CDSL to the customer of all transaction facilities in respect of all products including Mutual Funds under the CDSL Online Investment Account.

CDSL Online Investment Account is subject to the satisfactory completion of the account opening form and acceptance by CDSL. Upon acceptance, CDSL shall register the Customer after due compliance with respect to KYC and Prevention of Money Laundering Act.

The relationship between Customer and CDSL shall be on a principal-to-principal basis. The Customer shall have no right whatsoever to bind or act on behalf of CDSL.

Customer shall not, without the prior written consent of CDSL, assign, charge or encumber any Investment Account or the customer’s rights therein, or create or permit to create, in favour of any person (other than CDSL) any interest by way of trust or otherwise in any CDSL Online Investment Account. CDSL shall not be required to recognise any person other than the customer as having any interest in any CDSL Online Investment Account. However in cases where in customer requests to mark lien on his Mutual Fund Units, (provided that the underlying product terms of offering do not state otherwise), in all such cases, customer shall have to convert the online folio into an offline folio in order to meet the requirement of lien against his Mutual Fund Units.

3. Authorisation

I / we hereby authorise CDSL to purchase and redeem units of Mutual Fund and other investment / Financial Products on my / our behalf, as may be instructed by me/us from time to time, on the terms and conditions mentioned herein. I / we agree that CDSL may at its sole discretion vary the terms and conditions or withdraw any of the facilities provided herein from time to time.

I / We irrevocably authorize CDSL to execute my / our instruction with regards to purchase or redemption of the units.

Transaction right will be pursuant to the customer executing and granting a mandate in favour of respective AMC / Channel Partner, in the manner and form as prescribed by AMC / Channel Partners through CDSL from time to time. A mandate will be applicable to all CDSL Online Investment Account whether presently existing or to be opened in future.

4. Purchase / sale

I / We understand that only the transaction instruction from registered customers of CDSL Online Investment Account would be processed by CDSL. Registered customers can only purchase, redeem and switch Mutual Fund units, and for all other investment / Financial Products, purchase option alone may be in online mode, and remaining process shall be entirely through offline mode.

I / We understand that there may be an Entry and / or Exit load in Mutual Fund schemes, which are mentioned in the offer documents and I / We shall be liable to read and understand the same before investing. I / We also understand that the Investments from residents in The United States of America and Canada are not permitted in certain Mutual Funds and also understand that CDSL shall not be liable for rejection of such application by Mutual Funds, where investor is resident of US and Canada.

Purchase instruction shall be processed by CDSL only after receipt of confirmation from respective AMC / Channel Partner on availability of sufficient funds to cover the purchase price and other costs and charges and the same having been duly realized by AMC / Channel Partner.

If for any reasons, CDSL is unable to process the purchase or redemption request for the full quantity of units as instructed by me / us. I / We irrevocably authorize CDSL to purchase or sell (as the case may be) a lesser quantity of units. CDSL shall not be responsible for the non-execution of my / our instruction for the entire quantity or the remaining quantity.

I / We understand that, CDSL does not restrict me / us for transacting directly with the AMC without recourse to them at any time under the folio(s) tagged with their broker code.

I / We agree and acknowledge that the facility provided herein is presently available with respect to select AMCs only with whom CDSL has entered into a service agreement.

I / We agree and acknowledge that any instruction given or purported to be given by me / us before the cut off time, as may be intimated by CDSL to me / us from time to time, would be processed on the same day. Any instruction received after the prescribed cut off time will be processed on the next working day.

I / We agree that the cut-off timing mentioned by CDSL is prior to the statutory cut-off timing specified under the Regulations and the SID/SAI for operational convenience.

I / We acknowledge that the units of the scheme shall be allotted, redeemed or switched, as the case may be, at the Net Asset Value (NAV) on the date of the application by the Mutual Fund before the cut-off time as specified by CDSL and consistent with the terms of the Scheme. However CDSL shall not be liable for any loss that may arise to me / us as a result of the incorrect NAV applied on units allotted to me / us by the Mutual Fund.

I / We acknowledge that any transaction request executed on a holiday would be processed on the next business day and respective NAV would be applicable as per the Mutual Fund’s offer document.

I / We acknowledge that transactions once placed cannot be cancelled.

I / We acknowledge that if a purchase transaction get rejected due to technical reasons or otherwise, the amount debited from my/our registered bank account towards the said purchase transaction will be refunded to my / our registered bank account by either the payment gateway vendor appointed by CDSL or directly by the concerned AMC or such other channel partner as per the bank account into which the funds have been received.

5. Statement of Account

I / We agree and acknowledge that the AMC shall regularly send communications like Statement of Accounts, Reports, information etc. only to the first holder, and CDSL shall not be liable / responsible for sending the same. I further agree and acknowledge that the consolidated statement of account sent by CDSL to the first holder is strictly basis the data feeds received from the respective Registrar & Transfer agents and Product Providers.

6. Communication of Instructions

All instruction (including instruction for modification of this clause) shall be given only by the first holder above, on behalf of both / all of us and for these purpose. I / We, the second and the third holders above irrevocably constitute the first holder above as my / our agent to do so. All instruction given by the first holder above shall be binding on both / all of us as if given by each of us personally. I / We hereby authorize CDSL to act on such instruction given from time to time.

The instruction for purchase or redemption of the units may be given as may be acceptable to CDSL.

CDSL may refuse to act on customer instruction unless they are given in a manner and form acceptable to CDSL. However CDSL shall have no responsibility to determine the authenticity of any instruction given or purported to be given by me / us. I / We shall not hold CDSL liable on account of acting in good faith on any of my / our instructions.

CDSL may at its discretion not carry out my / our instructions where CDSL has reasons to believe that the instructions are not genuine or are otherwise improper or unclear or raise a doubt. CDSL shall not be liable if any instruction is not carried out for any reasons whatsoever. I / We clearly agree that CDSL needs to receive clear instruction from me / us. I / We agree to indemnify CDSL against any improper / fraudulent fund transfer instruction purported to be received from me / us. CDSL shall not be obliged to accept from me / us any oral or facsimiles instruction. CDSL shall be indemnified for and held free and harmless from and against any and all costs, claims, losses or liabilities of any nature (Direct or Indirect) resulting from act of omission (or any delay) in response to transaction executed by the customer on our website www.cholamoneymanager.com to purchase or sell or otherwise dispose off investment products, together with any and all attendant costs and expenses, collectively referred to as losses.

I / We also acknowledge that the security and the control provided by CDSL are designed to verify the source of the communication and not to detect errors in transmission or content and that CDSL may execute an instruction by reference account number only, even if the name on the account is not provided. Nothing contained herein shall require CDSL to violate any applicable laws, rules or the procedures / instructions. CDSL shall have no further duty to verify the content of any instruction and communication submitted by the customer, whether or not authorized. CDSL will process the transaction instruction as it is received and will not validate the same for holdings, correctness of transaction and any other information.

7. Third Party Risk

CDSL shall not be liable for any loss or damage caused by reason of failures or delay of Mutual Fund / Channel Partner to deliver any units purchased even though payment has been made for the same or failure or delay in making payment in respect of any redemption. I / We shall indemnify and save CDSL harmless and free from any claim in respect thereof. CDSL shall also not be liable for any delay, failure or refusal of the Mutual Fund / any company / corporation or other body in registering or transferring units to my / our names of for any interest, dividend or other loss caused to me / us arising thereof.

8. Fees and Charges

All sales and purchase(s) and all other acts done by CDSL for me / us pursuant to these terms and conditions shall be at my / our risk and cost and in consideration thereof, I / We agree to pay fees / charges as per CDSL schedule of fees / charges and also agree to any changes arising in the CDSL schedule of fees / charges going forward for the services. I / We also understand that any such changes will be communicated via email 14 days ahead of implementation and will be displayed in the website of CDSL.

I / We agree and understand that any such fees / charges will be in addition to those levied by the respective AMC / Mutual Funds. All fees, charges and reimbursement of expenditure shall be paid or made in full by me / us without any counter claim, set off or withholding and all my / our liabilities and obligations hereunder to CDSL shall be joint and several.

9. Rights / Authorities of CDSL

I / We hereby authorize CDSL to do the following acts on my / our behalf at such manner as it may in its discretion think fit for the purpose of performing its duties and responsibilities set out hereunder.

  • The instructions given by me / us to CDSL for transacting in mutual fund units will be forwarded by CDSL to the AMC in electronic log file format and the AMC will process the said transactions on the basis of such electronic log file only.
  • To do or omit to do all such things as CDSL may in its discretion consider to be necessary or desirable in order to perform its duties hereunder or to comply with any laws, orders, rules, regulations or directions of any Government or regulatory or other authorities.
  • Appoint on my / our behalf any sub-custodian / vendor or any other person doing any acts or deeds hereunder including the keeping of instruments in safe custody.
10. CDSL Liability

CDSL shall not, in the absence of gross negligence on the part of CDSL, be liable to me / us for any act, omission or delay by the Mutual Fund / Channel Partner or for any claims which I / We may suffer or incur as a result of or in course or discharge by CDSL of its nominee, agent or sub-custodian of CDSL duties.

Without prejudice to what is stated above, CDSL shall not be held liable for a reason of any loss or damage or failure to comply or delay in complying with its obligations under these terms and conditions which is caused directly or indirectly by any event or circumstances beyond CDSL’s reasonable control. These include system failure, network errors, delay or loss of data due to the above and in circumstances of acts of God, floods, fire, epidemics, quarantine, riot or civil commotion and war.

I / We further agree to indemnify CDSL for any loss that may arise as a result of system failure, accident or any of the reasons mentioned above. I / We further agree to indemnify CDSL for any losses, damages, expenses, costs, liabilities and claims of whatsoever nature caused by fraudulent or unauthorized use of my / our signatures and / or unauthorized use of my / our Telephone Personal Identification Number and / or login access to my CDSL Online Investment Account.

CDSL will be under no duty to verify compliance with any restrictions on my / our investment decisions.

CDSL will not be liable for any loss, damage, cost, charges or expenses directly or indirectly caused by reasons of any defects or imperfections or mechanical or other failure with relation to computer, cable, telex, internet, software, telephone or postal system.

While CDSL will make every effort to have its online systems available at all times, CDSL makes no guarantees with respect to the availability of such systems. CDSL will make every effort to resolve availability issues such as network problems, virus attacks etc. in an expeditious manner. Notwithstanding these, CDSL as such will not be liable for any loss, damage, cost, charges or expenses directly or indirectly caused by reasons of lack of such availability.

11. Diligence by the customer
  • I / We shall be responsible for keeping the user name and password pertaining to my / our CDSL Online Investment Account confidential and secure and shall be solely responsible for all orders entered and transactions done by any persons whosoever using the Account’s Username and / or Password whether or not such person was authorized to do so. Also, I / We are aware that authentication technologies and strict security measures are required for the internet access and undertake to ensure that the user name and password provided to me / us and our authorized representative are not revealed to any third party including employees of CDSL and undertake to exercise all caution to protect the same.
  • I / We are aware that online access over the internet involves many uncertain factors and complex hardware, software, systems, communication lines, peripherals, etc. are susceptible to interruptions and dislocations, hence I / We agree that shall not have any claim against any CDSL on account of any suspension, interruption, non availability or malfunctioning of the systems or non-execution of orders due to any link / system failure for any reason beyond the control and risk borne by the CDSL.
  • CDSL Online Investment Account Opening form is operated for my / our own wealth management needs. The money deployed for transaction in this account is from my / our savings from legitimate sources.
12. Electronic Payment Gateway

I / We understand that funds transfer for purchase of investments will be done by using an electronic payment gateway facility for net banking offered presently through Tech Process Solutions Private Limited (TPSL) or other service provider providing Payment Gateway services for CDSL. I / We agree not to use or permit the use of the Payment Instruction Services or any related services for any illegal or improper purposes. Whilst utilizing the Payment Instruction Services for making any payments for any services obtained whether on-line or otherwise, I / We shall ensure that all caution is exercised from my / our end.

I / We hereby acknowledge that availing the Payment Instruction Service is at my / our risk. These risks would include but not be limited to the following risks:

i) Technology Risks

I / We understand that the technology for enabling the transfer of funds and other services offered could be affected by virus or other malicious, destructive or corrupting code, programme or macros. It may also be possible that the site of CDSL or the bank may require maintenance and during such time it may not be possible to process the request of the clients. This could result in delay in the processing of instructions or failure in the processing of instructions and other such failures and inability. I / We understand that CDSL disclaims all and any liability, whether direct or indirect, whether arising out of loss of profit or otherwise arising out of any failure or inability by CDSL to honor any client instruction for whatsoever reason. I / We understand and accept that CDSL shall not be responsible for any of the aforesaid risks. I / We also accept that CDSL shall disclaim all liability in respect of the same.

ii) Limits

I / We agree that CDSL may from time to time impose minimum and maximum limits on investments that may be transferred by virtue of the payment transfer service given to me / us hereunder. For instance, Bank / Service Provider providing Payment Gateway Services may impose transaction restrictions within particular periods or amount restrictions within a particular period or even each transaction limits which shall be the basis for implementing the above limits. I / We shall be bound by such limits imposed and shall strictly comply with them.

iii) Misuse of Password

I / We acknowledge that if any third person obtains access to the password of the Client, such third person would be able to provide Payment Instructions to the Bank / Service Provider providing Payment Gateway Services. I / We shall ensure that the terms and conditions applicable to the use of the password as contained in the Electronic Payment Gateway for Net Banking Terms and Conditions are complied with at all times. I / We declare that, the transaction amount is to be transferred only through my registered bank details and confirm that, if CDSL / AMCs finds the transaction pertains to third party payment, CDSL /AMC’s shall reject the transaction immediately as per SEBI / AMFI guidelines from time to time.

iv) Mistakes and Errors

I / We understand that the filling in of applicable data for transfer would require proper, accurate and complete details. In the event of my Account receiving an incorrect credit by reason of a mistake committed by some other person, CDSL or the bank shall be entitled to reverse the incorrect credit at any time whatsoever without my / our consent. I / We shall be liable and responsible to CDSL and accede to accept instructions without questions for any unfair or unjust gain obtained by me / us as a result of the same.

v) Internet Frauds

I / We understand that the Internet per se is susceptible to a number of frauds, misuse, hacking and other actions, which could affect Payment Instructions to the Bank / Service Provider providing Payment Gateway Services and that while CDSL shall aim to provide diligent security to prevent the same, there cannot be any guarantee from such Internet frauds, hacking and other actions, which could affect Payment Instructions to the Bank / Service Provider providing Payment Gateway Services. I / We shall separately evaluate all risks arising out of the same.

vi) Withdrawal of Facility

CDSL shall be entitled to withdraw the online investment services at any time whatsoever, after providing 7 days notice and communicating the withdrawal process, at its own discretion.

vii) Indemnity

I / We indemnify CDSL from and against all losses and damages that may be caused as a consequence of breach of any of the Electronic Payment Gateway for Net banking Terms and Conditions and the same terms and conditions mentioned herein above.

viii) Binding nature of above terms and conditions

I / We agree that by use of this facility, I / We shall deem to have agreed to all the above terms and conditions and such terms and conditions shall be bound on me / us in the same manner as if I / We have agreed to the same in writing.

I / We also undertake and agree that CDSL shall not be liable in any manner for breach from my / our end of any of the terms mentioned in above clauses (i) to (viii).

13. Role of CDSL

I / We expressly agree and acknowledge that any information contained in CDSL website www.cholamoneymanager.com, brochures, reports, articles, materials or otherwise communicated by CDSL shall not be construed by me / us as investment ideas and that all decisions to purchase or sell or hold investment products by me / us shall be on the basis of my / our own personal judgment arrived at after due consideration.

I / We understand and agree that CDSL does not in any manner:

  • Guarantee payments on any units; or
  • Guarantee of liquidity of any units; or
  • Provide any buy / sell or other recommendations; or
  • Make any offer to buy back any units; or
  • Guarantee the payments of interest or dividend; or
  • Guarantee any good delivery.
  • Promise, indicate or guarantee any returns; or
  • Guarantee the redemption or repayment of any units on maturity; or

If notwithstanding anything stated herein CDSL or any employee of CDSL gives any advice or representation to me / us, CDSL shall have no liability for any such advice or representation made, as it will be my / our responsibility to make an independent assessment of the same.

I / We understand that CDSL will disclose the commission details on mutual fund sales, in its website as per SEBI Circular dated 30th June, 2009.

I / We understand that any sum invested through CDSL Online Investment Account platform is not a deposit with CDSL and is not bank insured nor is the amount received by CDSL. I / We also understand that the same is not endorsed or guaranteed and does not constitute obligations for CDSL or any of its subsidiaries / associates or parent or affiliate companies and CDSL role is only as described in these terms and conditions. The investments purchased are subject to market / investment risks, including the possible loss of principal amount invested wherein the value of units will fluctuate. If I / We redeem my units, I / We may receive more or less than I / We paid depending upon market value of the investment at the time of redemption. I / We understand that the past results are not a guarantee to future performance and yield or past performance of funds should not be considered as an indication or guarantee of future yields or results.

14. Authority to CDSL

I / We authorized CDSL to do, perform or execute upon my / our express instruction and at my / our risk and cost, all or any of the following acts, deeds matters and things:

  • To subscribe to the units of the investment products on my / our behalf and to pay to the units so purchased, on my / our instructions
  • To receive the account statement pertaining to the above units and to acknowledge receipt of the same.
  • To redeem / sell the units held by me / us (whether solely or jointly with others), and to facilitate receipt of the payment of redemption / Sale price and acknowledge receipt of the same, based on my / our instructions.
  • To correspond with and give notice to the Mutual Fund and corresponding AMC on my / our behalf.
  • To instruct the Mutual Fund and / or the corresponding AMC to make note of instructions with regards to nomination / changes in investments plan / any other changes.
15. Change of Particulars

I / We agree and undertake to notify CDSL immediately of any change in the particulars or any information relating to CDSL Online Investment Account or to the applicability of the terms and conditions herein, supplied to CDSL. CDSL shall at all times be entitled to rely on the records in the application form last submitted by me / us unless any change in the particulars therein have been notified to CDSL or updated online by me / us. CDSL is not obliged to verify any particulars furnished or updated online by me / us and CDSL shall not be liable or responsible for any loss suffered or incurred by me / us or any other person by reason of any error or omission in the completion of the Application Form or in the furnishing or online updation of the particulars.

16. Holding pattern and Customer details

The holding pattern in the customer’s investment portfolio with CDSL would be based on CDSL account holding pattern. Also there would be no changes allowed in the holding pattern once CDSL Online Investment Account is activated.

The other requisite data (which is not part of the form) required to be reported to AMC / RTA will be extracted from CDSL Online Investment Account details maintained for the First holder.

The mode of holding in all customer joint accounts is treated as “Anyone or Survivor” in CDSL account details maintained by the First Applicant / First Holder until or unless specified otherwise.

Options will be provided to the Customers to apply for Units in single name of anyone or more names of the joint account holders of the bank account subject to the terms and conditions of the relevant AMC Scheme Information Document (SID).

17. Personal Representatives

I / We understand and agree that all acts performed by CDSL prior to receiving written notice of the death / incapacity / incapability of the account holder shall be valid and binding upon me / us and my / our successors in title.

In the event of the account holders death, CDSL shall be absolutely protected in acting under the terms and conditions herein, until CDSL receives actual notice of death from the legal personal representatives or executors of the account holder. The legal personal representatives or executors will be recognized by CDSL as having the sole authority to act under these terms and conditions on behalf of the deceased account holder only upon the legal personal representatives or executors producing the relevant legal documents which establish them as the legal representatives of the deceased account holder, however I / We understand and agree that CDSL shall have the right to freeze the access / usage of the online account on receipt of such intimation and the account may be operated in offline mode if the legal personal representatives are established as per law.

18. Correspondence

Any notice or other correspondence addressed by CDSL to me / us may be addressed to the first holder above at the address given by me / us above or to such address as CDSL may be aware. If according to me / us there is any discrepancy in the particular or details of my transaction or account statement then I / We shall be obliged to intimate the same to CDSL in writing in 10 days of the first holder receiving notice thereof, falling which such transaction, statement of accounts, as the case may be, shall be deemed to be correct and accepted by me / us and I / We shall not be entitled to question the correctness or accuracy thereof.

19. Termination

I / We agree that CDSL or I / We may terminate my / our CDSL Online Investment Account by giving 30 days prior notice in writing or any other mode of communication to the other party provided that I / We shall not be relieved of my / our obligations hereunder notwithstanding such termination incurred prior to the date on which such termination shall become effective.

20. Governing Law and Jurisdiction Clause

All disputes and differences arising out of, under or in connection with these terms and conditions or anything done hereunder shall be settled by Arbitration in accordance with the provisions of The Arbitration and Conciliation Act, 1996 or any statutory amendments thereof and shall be referred to the Sole Arbitration of an Arbitrator nominated by CDSL. The award given by such Arbitrator shall be final and binding on all parties to this Agreement. In the event of an appointed arbitrator dying or being unable or unwilling to act as arbitrator for any reason, CDSL, on such death of the arbitrator or his inability or unwillingness to act as arbitrator, shall appoint another person to act as arbitrator. Such person shall be entitled to proceed with the reference from the stage it is left by his predecessor. The venue of arbitration proceedings shall be at Chennai at the Registered Office of CDSL which is presently at ‘DARE HOUSE’, No.2 (Old No: 234), NSC BOSE ROAD, PARRYS, CHENNAI – 600 001 within the exclusive jurisdiction only to the courts of Chennai. Further these terms and conditions are subject to and shall be construed in accordance with the laws prevalent in India.