Karvy's New Product - I Zone.

FAQ – I ZONE
What is I ZONE?
I ZONE is a consolidated Internet Based product which covers BROKING,
DP, MF and IPO through a single account. For a client to register for I
ZONE, he has to submit an application form and submit at any of the
branches.
Why I ZONE?
Karvy has decided to provide Internet based services to all clients.
Henceforth, any client registered with KARVY will be registered as an I
ZONE client.
What are all the services available to a client who has registered himself as
an IZONE client?
Trading in Cash Segments of NSE & BSE
Trading in Derivatives Segment of NSE
Depository Services
Online Application services to Mutual Funds
Online Application services to IPOs
How much time will it take to open an account?
All valid applications will be processed within 72 hours from the time of
receipt of application at Head Office. Welcome Letter & Kit with DIS Booklet
will be sent to clients on activation of demat account. Intimation of opening
of IZONE account will be sent to the client through Email and SMS.
Valid Email ID and mobile number are mandatory for opening IZONE
account.
Can the client start trading immediately on opening the IZONE account?
No, the client can only start trading only on receiving the password.
How will the client get his Password?
The client will receive an e-mail and an SMS on opening of the trading
account for confirmation of the email address. Once the client replies to the
email received by him, the account is activated for trading and password is
sent through email. An SMS alert is also sent to the client on activation of
the account and generation of the password.
Where can the clients trade?
The client registered for I ZONE will be provided with Login and Password to
trade on his own through Internet.
In addition, All I ZONE clients can also trade through the respective
branches where the client has submitted his application and through the
Regional Office to which the branch is linked.
I ZONE clients also have an option to trade through the Call Center located
at Hyderabad by using the TPIN provided to them.
How can the client trade through Call Centre?
The client has to contact the Call Centre by dialing the Toll Free No. 1800
425 8283 and identify himself by dialing his Account No. & TPIN provided to
him. On identification, he can place the order with the Call Centre
executives.
The client already has a demat account with Karvy DP. Can the exiting
account be used to open IZONE account?
YES. Existing demat account of the client can be linked to the IZONE
account even if the existing demat account with Karvy DPMs located at
Lucknow, Bangalore or Mumbai. The client need not open a new demat
account separately for IZONE.
The client has a demat account with another DP other than Karvy. Can he
use the same account to open an IZONE account?
NO. The client needs to open a new demat account with Karvy DP. Demat
accounts with Karvy DP is mandatory for opening I ZONE account. Demat
accounts with other DPs cannot be linked to the IZONE account.
Will the brokerage earned from IZONE clients be considered as branch
earnings?
YES. All income generated from a client registered through a branch will be
considered as that particular branch earnings irrespective of the place
where the client has traded.
How does a client deliver the shares which he has sold?
The client has to give a Power of Attorney in favour of Karvy for withdrawing
securities from his demat account against his sale positions.
Is POA mandatory?
YES POA is mandatory
How will the client transfer funds against the purchases made in his trading
account?
At present payment gateways of 4 banks (IDBI, HDFC, ICICI and UTI) are
enabled. Clients who have bank accounts in these banks and have net
banking facility can transfer funds online.
Does the client need to have bank accounts with the designated banks?
NO, Clients having bank accounts with ICICI, IDBI, AXIS and HDFC will
have more advantage as they can transfer funds online. Clients having bank
accounts with any MICR code bank can register.
Is margin money mandatory?
Yes, margin money of minimum amount of Rs.5000 is mandatory.
When can the client get refund of margin money?
Client will get exposure on margin money and can adjust to purchases
made or can request for withdrawal only after first trade.
How will payout of funds be given to client?
All payout of funds to clients will be given directly from Head Office through
online transfer / RTGS / CMS.
What is the brokerage charged to the clients?
Brokerage schedule is given in page 10 of the form and is same for all
clients. However, recommendations of the regions and branches will be
considered for exceptional cases.
How is the risk management done for IZONE clients? Is RMS same as the
current set up?
RMS of IZONE clients is similar to the normal clients. IZONE clients will be
allowed to trade through the same platform GOTX whether he trades
through net or at branch. Hence there will not be any difference.
Branches are instructed not to trade on NEAT for any IZONE / internet
clients.
How are contract notes issued to IZONE clients?
ECN (Electronic Contract Notes) will be issued for trades done by IZONE
clients and will be sent through mail to the email address registered with
us.
Will the branch be able to view the trades of IZONE clients, if the client
trades online?
YES. The branch trading platform and the client trading platform is
integrated and connected to the same server. Hence any trade or order
placed by the client through internet can be viewed by the branch and
similarly any order placed by the branch can be viewed by the client on his
internet trading platform.
Can client trade through his net and through branch simultaneously?
YES. Client can place order on his internet platform and can call branch to
cancel / modify the order. A client can on a same day trade at branch,
through internet and through the Call Center.
Can the client do trading in Commodities and Forex?
NO, I ZONE application is not currently integrated with Commodities &
Forex trading platforms.
Can all clients avail online MF and IPO facilities?
MF and IPO is currently available only to clients having accounts with the
banks where we have payment gateway (IDBI, ICICI, HDFC and AXIS).
Are we tying up with any other banks?
Payment gateways of Bank of Rajasthan and Citi Bank will be made live
shortly. We are also in discussion with many other banks for establishing
payment gateways.
Can client apply for MF from funds available in broking ledger?
NO. Client cannot apply for MF from the funds available in broking account.
He needs to transfer funds separately for applying MF / IPO. Payments
through cheques are not permitted against MF or IPO transactions.
How should the client pay the charges for demat accounts?
Clients can pay the charges for demat accounts through cheques. Client can
also make online transfer of amounts to trading accounts and the charges
for demat accounts will be adjusted against ledger credits in trading
account
Are the existing broking forms at branch valid?
YES. Branches can use the existing broking forms available with them for
opening normal trading accounts (not IZONE accounts) till the stocks are
extinguished. But clients who have opened trading accounts using these
forms cannot avail the facilities available to IZONE clients.
Can orders pertaining to IZONE clients be placed in the NEAT Platform?
NO. Orders of IZONE clients should not be placed on the NEAT trading
platform. Any orders placed on NEAT platform for IZONE clients will be
squared off and the trade will be removed from the clients account.
Is upfront account opening charges mandatory?
YES. Upfront collection of account opening charges is mandatory.
Where should be the cheque for account opening charges, margin
collections and subsequent collections are deposited?
Entry should be done in broking.karvy.com and cheques should be
deposited only in the following accounts.
Bank
Name
Account No. IFSC Code Bank Branch
DESIGNATED BANK ACCOUNTS
IDBI 002103000002165 IBKL0000002
BASHEERBAGH
HYDERABAD
UTI 008010200043643 UTIB0000008
BEGUMPET
HYDERABAD
ICICI 000805006565 ICIC0000008
KHAIRTABAD
HYDERABAD
HDFC 0210340001488 HDFC0000021
LAKDIKAPUL
HYDERABAD
ALTERNATE BANK ACCOUNTS
KVB 1410129000000014 KVBL0001410 SECUNDERABAD
PNB 4437001500000040 PUNB0443700
BANJARA HILLS
HYDERABAD
ING
VYSYA
323011015420 VYSA0003230
AMEERPET
HYDERABAD
While doing entry of application money and margin money in
broking.karvy.com, it is mandatory to enter the details of application
number against which the cheque is received.
While doing entry for subsequent collections, only account number of the
client which is registered with us will be allowed.
Can cheques issued by a third party be accepted?
NO. Third party cheques should not be accepted.
Branches should ensure that the cheque for application amount and first
margin is issued from the account which is mentioned by the client in the
application form.
Any third party cheques which are accepted from clients subsequently
towards margin / collections will be automatically identified by the system
and exposures / credits given against such cheques will be reversed.
What is our website for trading?
www.karvyonline.com
What are the advantages of I ZONE Account?
Integrated platform for Broking, DP, IPO, and MF services
Real time price feed
Online Research Calls
How can the branch track the application status?
Application status tracker facility is available in broking.karvy.com. Once
the client code is activated the client will be intimated of the same over mail
/ SMS and through welcome letter sent by courier.
Will limits be provided on cheque collections?
Yes, limits will be provided based on entry of details of cheques received
from clients in broking.karvy.com. The cheques should be deposited only in
the designated / alternate bank accounts mentioned above.
If any cheque has not been collected within 72 hours from the date of entry
in broking.karvy.com, exposure / credit given against the cheque will be
reversed and positions / purchases will be squared off if the client has
margin shortfall on account of the reversal.
For any Clarifications please contact:
krish@karvy.com
venkatpavan@karvy.com
gr.sunil@karvy.com
kmathew@karvy.com