 |
"Customer"
shall mean any person who is an accountholder with
KMB and investing through KMB in the Sweep Plan of
KMAMC. |
|
"Mandate"
shall include Mandate/Power of Attorney executed by
a Customer in favour of KMB to transact on his behalf,
draft of which is attached to this Agreement. Any
modification in the contents of the Mandate shall
require prior consent of KMAMC, which shall not be
reasonably withheld. |
|
"Offer
Document" shall mean a document issued
by KMMF as amended from time to time (including by
way of addenda), offering Units of the respective
Scheme(s)/Plan(s) for subscription. |
|
"Offer
Document of the Sweep Plan" shall mean
the Offer Document of Kotak Mahindra Liquid Scheme
(as amended from time to time) under which the Sweep
Plan is introduced. |
|
"Terms
and Conditions" shall mean the terms
and conditions agreed to by the Customer for investing
through KMB in the Sweep Plan of KMAMC |
|
"Sweep"
shall mean an activity whereby money shall be transferred
from the CASA account of the Customer to the Sweep
Plan or vice versa on receipt of instructions from
KMB. |
|
"Sweep
Plan" shall mean and include the proposed
Sweep Plan under Kotak Mahindra Liquid Scheme or any
other Sweep Plan introduced in future under any Scheme
offered by KMAMC at present or in future. |
|
"Threshold
limit" shall mean the minimum amount
as defined by KMB from time to time and agreed to
be maintained by the Customer in the CASA account.
|
|
"NAV"
shall mean the net asset value as determined by KMAMC
for the Sweep Plan. |
|
"Haircut"
Amount which not available to the customer for withdrawal
as a % of investment into the Kotak Liquid Sweep Plan
option, this is to cover the risk the Bank runs basis
NAV movement on a daily basis. |
Words and Expressions used in this Terms and Conditions shall
have the same meaning as in the Offer Document of the Sweep
Plan.
| 1 |
The
Terms and Conditions and Rules of Accounts and Services
of Bank and words and expressions not specifically
defined herein shall have the respect meanings assigned
to them in the Terms and Conditions and Rules of Accounts
and Services of Bank. |
| 2 |
The
Sweep Account is a combination of a Savings/Current
Account ("CASA Account") with Kotak Mahindra
Bank Ltd. ("KMB") and linked to Kotak Liquid
Sweep Plan ('Sweep Plan') |
| 3 |
KMB
will sweep excess balance in Customers Sweep Account
beyond the threshold limit defined by KMB and agreed
by the Customer into the Sweep Plan, as subscription
to Units of the Sweep Plan, subject to the minimum
limit defined by KMB. |
| 4 |
KMB
shall initiate sweep out over and above the customer
defined threshold limit or the KMB defined threshold
limit. For this purpose, the Customer defined threshold
limit shall always be more than the Bank defined threshold
limit. The minimum amount for sweep out from Customer
Account shall be Rs. 10,000/-. The minimum amount
may change at the sole discretion of the Bank. |
| 5 |
Customer
agrees that KMB is acting as distributor of Kotak
Liquid Sweep Plan and that the Facility is antedant
to the Sweep Account maintained by Customer with KMB
and further agrees to give instructions only to KMB
to sweep excess amounts from his Account for this
Facility. |
| 6 |
The
Customer agrees that the withdraw able balance reflected
in the Sweep Account on any day is an aggregate of
the actual balance in the Sweep Account and the value
of the investments in the Unit Account of KMMF at
purchase price or the previous day's NAV minus haircut.
The Customer agrees that KMB shall not permit any
debit in Customer Account if the funds / total amount
available in his Account with the KMB constitutes
an insufficient balance as per the terms of this Facility
availed by Customer. |
| 7 |
The
Customer agrees that Mutual Funds and securities investments
are subject to market risks and there is no assurance
or guarantee that the objectives of the Sweep Plan
will be achieved. As with any securities investment,
the NAV of the Units issued under the Sweep Plan can
go up or down depending on the factors and forces
affecting the capital and money markets. |
| 8 |
Mutual
Funds are susceptible to NAV movements and the available
balance in the Account can change even without the
Customer initiating any transaction. Thus if the Customer
redeem(s) his/her/their units/shares, the Customer
may receive more or less than what the Customer paid,
depending upon the market value of the securities
in the fund or trust at the time of redemption. Past
results are not a guarantee to future performance.
Yield or performance fluctuates and reflects past
results. Yield or a fund's past performance should
not be considered as an indication or guarantee of
future yield or results. |
| 9 |
The
Customer agrees that KMB shall not process purchase
instructions unless funds in the Sweep Account are
in excess of the threshold. However, Customer shall
not hold KMB liable in case excess funds over the
threshold are not swept into the Sweep Plan by any
event or circumstances beyond KMB's reasonable control.
If for any reason KMB is unable to sweep amounts in
the Sweep Plan, KMB shall at its discretion be entitled
to sweep a lesser amount without notice to Customer
and the Customer shall not hold KMB responsible for
the same. |
| 10 |
The
Customer agrees that the facility of sweeping excess
balances from the Sweep account into the Sweep Plan
may not be effected in case the account is attached
by any statutory Authority / Court of Law or if the
Sweep Account is classified as dormant by KMB on account
of loss of contact with the applicant for a period
of at least six months or upon the death of the applicant
in case of a single name account or by any of the
applicants in case of a joint account. |
| 11 |
The
Customer agrees that two nomination forms, namely,
one under SEBI (Mutual Fund) Regulations, 1996 and
another under the Banking Regulation Act, 1949, will
be signed and submitted to KMB. Both nomination forms
shall contain the same details. Any change made by
Customer in respect of Nomination under the Banking
Regulation Act, 1949 shall also become applicable
in respect of the nomination under SEBI (Mutual Fund)
Regulations, 1996. |
| 12 |
The
Customer agrees that the security and control procedures
provided by KMB are designed to verify the source
of communication and not to detect errors in transmission
or content including discrepancies between names and
account numbers and that KMB, or any intermediary,
may execute an instruction by reference to account
number only, even if the name on the account is also
provided. |
| 13 |
The
Customer agrees and accepts that action taken by KMB
and instructions given by KMB to KMAMC are in pursuance
to the Mandate of the Customer and further agree and
undertake not to make any claims either against KMB
or KMAMC on account of both KMB and KMAMC acting under
the Mandate of the Customer. |
| 14 |
The
Customer agrees that all purchases and redemptions
and all other acts done by KMB for the Customer pursuant
to Sweep Account shall be at the sole risk and cost
of the Customer and KMB shall only be executing the
instructions given by the Customer vide the mandate
letter/POA, in consideration of which limited role
of KMB, the Customer agree(s) to pay to KMB charges
as per KMB's schedule of charges. These charges are
purely banking services related charges and not part
of any expenses relating to the Unit Account. The
investments in the Sweep Plan will be subject to the
terms in its Offer Document as regards its recurring
expense limits. |
| 15 |
The
Customer agrees that KMB shall not be liable for any
loss or damage caused by reason of failure or delay
by the KMMF to deliver any units purchased even though
payment may have been made for the same or failure
or delay in making payment in respect of any Units
redeemed though they may have been delivered and the
Customer shall save KMB harmless and free from any
claim in respect thereof. The Customer agrees with
the terms on which the Sweep Plan is offered and may
be closed and therefore the Customer shall not hold
KMB liable for in case of any closure of the Sweep
Plan. |
| 16 |
The
Customer agrees that KMB shall also not be liable
for any delay, failure or refusal of KMMF/any company/corporation
or other body in registering or transferring units
to the name(s) of the Customer or for any interest,
dividend or other loss caused to the Customer arising
thereof. |
| 17 |
The
customer agrees that KMB shall execute the transaction:
|
Purchases
- Money swept out from customer Bank account
at EOD day 0, purchase transaction executed
with Kotak Mutual Fund after 1:00 pm on day
1, Applicable NAV Day 1. |
|
Redemptions
- Money swept in to customer bank account
at EOD day 0, redemption transaction executed
Kotak Mutual Fund before 10:00 am on day 1,
Applicable NAV Day 0. |
|
| 18 |
The
Customer agrees that KMB shall not be held liable
for or by 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
KMB's reasonable control. |
| 19 |
The
Customer agrees that KMB will not be liable for any
error or inaccuracies in any of the publicly available
information that may be provided to the Customer by
KMB. KMB shall be under no duty to verify compliance
with any restrictions on the investment powers of
the Customer. |
| 20 |
The
Customer agrees that these terms and conditions will
bind not only the Customer but also his/her/their
respective successors and legal representatives in
respect of the Services availed of by the Customer
from time to time. |
| 21 |
Failure
by KMB at any time to enforce any obligation of the
Customer or to claim a breach of any term or condition
or to exercise any power agreed to hereunder or under
any other document executed by the Customer in favour
of KMB will not be construed as a waiver of any right,
power or obligation under these terms and conditions
and it will not affect any subsequent breach and will
not prejudice KMB as regards any subsequent action.
|
| 22 |
The
rights of the Customer hereunder shall not be assigned,
in whole or in part, by the Customer. |
| 23 |
The
Customer agrees that KMB shall always have the right
to stop offering the sweep facility or make available
such facility with regard to any other SEBI registered
Mutual Fund. Provided however, that till such time
the Customer shall have the discretion to terminate
the Sweep Account or continue with the Sweep Facility
with any other SEBI registered Mutual Fund that may
then be available under the Sweep Account Scheme of
KMB. |
| 24 |
The
Customer agrees that KMB shall be under no duty to
assess the prudence or otherwise of any instructions
given by the Customer or to give any advice in relation
thereto and would be justified in acting on the instructions
of the Customer, irrespective of their prudence or
otherwise. |
| 25 |
The
Customer shall be obliged to intimate KMB if there
is any discrepancy in the particulars or details of
any transaction or account or statement, to KMB in
writing within 15 days of the first Applicant receiving
notice thereof, failing which such transaction, statement
or account (as the case may be) shall be deemed to
be correct and accepted by Customer and the Customer
shall not be entitled to question the correctness
or accuracy thereof. |
| 26 |
Any
notice or other correspondence addressed by KMB to
the Customer may be addressed to the first Applicant
at the mailing given by the Customer to KMB. |
| 27 |
The
Customer may instruct KMB to keep amounts in the Sweep
Account in excess of the threshold limit by Bank and
agreed to by the Customer for sweeping the funds from
the Sweep Account. |
| 28 |
The
Customer shall not have any recourse to KMAMC/KMMF
for any acts done by KMB. |
| 29 |
The
Customer agrees that KMB shall be entitled at its
discretion to terminate the sweep facility and retain
the Sweep Account or terminate both the sweep facility
as well as the Sweep Account. In the event of termination
of sweep facility for any of the reasons, the services
of KMB in respect of existing customers shall be limited
to handling redemption requests received from them.
KMMF agrees to accede to such servicing requirements
for redemption requests of the existing clients notwithstanding
the termination of the agreement between the two parties.
On termination, KMB shall forthwith inform its customers
and continue to offer them the facility of redemption
through the on line or offline mode as per the prevailing
circumstances. |
| 30 |
The
Customer hereby agrees that:
|
The
Customer has read and understood the contents
of the Offer Document of the Sweep Plan and
the relevant addenda and agrees to abide by
the terms and conditions of the Sweep Plan.
|
|
The
Customer understands that there is no assurance
on the returns of the Scheme. |
|
The Customer
has neither received nor been induced by any
rebate or gifts, directly or indirectly, in
making this investment. |
|
| 31 |
The
Customer agrees to abide by the relevant rules and
regulations and any amendments there to. |
