4. Investment advice, only related to securities shall fall under the purview of SEBI. In case of any services offered by IA related to products/services not under the purview of SEBI, IA shall make disclosure to the client and take appropriate declaration and undertaking from the client that such products/services  and the services of IA in respect of such products/services do not come under regulatory purview of SEBI  and that no recourse is available to the client with SEBI for grievances related to such products/services or services of IA in respect of such products/services.

5. This agreement is for the investment advisory services provided by the IA and IA cannot execute/carry out any trade (purchase/sell transaction) on behalf of the client without his/her/its specific and positive consent on every trade. Thus, the client is advised not to permit IA to execute any trade on his/her/its behalf without explicit consent.

6.The fee charged by IA to the client will be subject to the maximum of amount prescribed by SEBl/lnvestment Adviser Administration and Supervisory Body (IAASB) from time to time (applicable only for Individual and HUF Clients).

Note:

  (i)    The current fee limit under Fixed Fee mode is  Rs 1,51,000/- per annum per family of client. Under Assets under Advice (AUA) mode, maximum fee limit is 2.5 per cent of AUA per annum per family of client.

  (ii)   The IA may change the fee mode at any time with the client’s consent; however, the maximum fee limit in such cases shall be higher of fee limit under the fixed fee mode or 2.5 per cent of AUA per annum per family of client.

  (iii)  The fee limits do not include statutory charges.

  (iv)  The fee limits apply only for investment advice related to securities under purview of SEBI.

  (v)   The fee limits do not apply to a non-individual client/ accredited investor.

7. IA may charge fees in advance if agreed by the client. Such advance shall not exceed the period stipulated by SEBI; presently it is maximum one year.  In case of pre• mature termination of the IA services by the client or the IA,  the client shall be entitled to seek refund of proportionate fees only for unexpired period. However, IA is entitled to retain a maximum breakage fee of not greater than one-quarter fee.

8. Fees to IA may be paid by the client through any of the specified modes like cheque, online bank transfer,  UPI,  etc.  Cash payment is not allowed.  Optionally the client can make payments through Centralized  Fee Collection Mechanism (CeFCoM),  managed by BSE Limited (i.e. currently recognized IAASB).

9. The IA is  expected to know the client’s financial  details for providing services.  Hence, the   client   is   required  toshare  the  financial   information   (e.g.   income,   existing investments,  liabilities,  etc.) with the IA.

10. The IA is required to carry out the client’s risk profiling and suitability analysis before providing services and thereafter on an ongoing basis. The services provided will be in line with the assessed risk profile.  IA shall also communicate the assessed risk profile to the client.

11.  As part of conflict of interest management, the client or the client’s family members will not be provided any distribution services by IA or any of its group entity/ family members. IA shall, wherever  available,  advice direct plans (non-commission  based) of products only. The IA shall endeavor to promptly inform the client of any conflict of interest that may affect the services being rendered to the client.

12.  For any grievances,

  Step 1: The client should first contact the IA using the details on its website or following contact details:

  (IA to Provide details as per ‘Grievance Redressal I Escalation Matrix’)

  Step 2:    If the resolution provided by IA is unsatisfactory, the client can lodge grievances through SEBl’s SCORES platform at www.scores.sebi.gov.in

  Step 3: If the client remains dissatisfied with the outcome of the SCORES complaint, the client may consider the Online Dispute Resolution (ODR) through the Smart ODR portal at https://smartodr.in

13. The SEBI  registration,  enlistment with  IAASB,  and NISM certification  do not guarantee the performance of IA or assure returns to the client.

14. Clients are  required to  keep contact  details,  including mail id  and mobile number/s updated with the IA at all times.

15. The IA shall never ask for the client’s login credentials and OTPs for the client’s Trading Account, Demat Account and Bank Account. Never share such information with anyone including IA.

Other Terms and Conditions

16. The Investment Advisor’s role is to only recommend buy/hold/sell financial products. The actual investment shall be undertaken by the Client.

17. The Client has the sole discretion to decide on whether to act upon the advice tendered by the Investment Advisor and the Investment Advisor shall have no power, authority, responsibility or obligation to ensure or cause the client to act upon the advice tendered by investment advisor.

18. The Client expressly acknowledges and agrees that all investments are subject to third party risks, market risks etc., and in no circumstance shall the Investment Advisor be liable for any losses suffered by the Client as a result of any investment made pursuant to this Agreement. A list of such risks has been described in Section 24 of this agreement; however, it shall in no manner serve as conclusive list of all possible risks that could arise out of such investment.

19. Validity of advisory services: This agreement will be for a period of 1 year on acceptance of invoice and will auto-renew every year unless cancelled.

20. Termination:
 20.1 It is agreed that party to this Agreement shall have the right to terminate this Agreement without having to assign any reasons, by providing the other party, a ninety (90) days’ prior written notice of the same.

  20.2 It is further agreed that in the event of termination of this Agreement, the Client shall be liable to pay the fee due till the date of termination of this Agreement on a pro-rata basis or a maximum of one quarter of breakage fee, whichever is lower

  20.3 In case of a voluntary termination of the agreement, the client would be required to give a 90 days’ prior written notice

  20.4 In the event of a voluntary/mandatory termination by the Investment Advisor, the Client shall be refunded the fees for an unexpired period. Investment Advisor will provide transitional support to allow client to continue investing and financial planning on their own or transfer it to any other person you indicate.

21. Terms of Fees and Billing

  Option A (Gold Plan) – Fees will be charged as percentage of assets under advisory will be charged for investment portfolios at the beginning of the year. Illustration(s) on how the fee will be determined. if you have 50 Lacs AUA at the beginning of this agreement and the fees are charged at 1% per annum then 50,000 will be charged as investment advisory fee for the full year. If AUA increases to 55 lacs at the end of Quarter 1 then incremental 1% on the incremental 5 lacs (Rs 5,000) will be charged at the beginning of Quarter 2 and will be prorated for the remaining period of the agreement (in this above case it will 3750)

  Option B (Profit Share Plan) – in this plan a fixed 25,000 INR is charged as one time onboarding fee and there will be a 8% profit share billed at the end of every quarter. Here for example if the client starts with an AUA of 50 lacs and gets Rs 4 lac profit at the end of Quarter 1, then the profit share of 8% (32,000 INR) will be billed at the end of Quarter 1

In both Option A and Option B, CrispIdea follows a high water mark principle ensuring that the incremental billing will happen only if AUA / Profit is growing beyond the previously charged fee

AUA includes investment products like Mutual funds, PMS, AIF, Equity (Shares/Stocks), Bonds, Physical Gold, Annuities etc. Any discussion on assets like Real estate, Insurance, ULIPs, cash, FD etc. will not be considered as part of AUA.

Fees will be collected quarterly or annually upfront depending on the plan chosen

22. Liability of Investment Adviser:

  22.1 We shall not incur any liability by reason of any loss, which you may suffer by reason of any depletion in the value of the assets under advice, which may result by reason of fluctuation in asset value, or by reason of non- performance or under-performance of the securities/funds or any other market conditions.

  22.2 The Parties hereby agree that the risks and losses incurred by the Client in pursuance of financial advice rendered by the Investment Advisor shall be borne solely and exclusively by the Client and/or any legal representative of the Client.

  22.3 The Client Further agrees that any risk undertaken and/or loss incurred by employing the unique financial advice rendered by the Investment Advisor to a third party shall be the responsibility and/or the liability of the Client and/or any legal representative thereof.

  22.4 The Investment Advisor undertakes to render financial advice best suited to the Client’s requirement with diligence. The Investment Advisor shall not be liable for any loss incurred by the Client during or after the term of this Agreement. 

23. Force Majeure:

We shall not be responsible for delays or errors occurring by reason of circumstances beyond our control, including but not limited to acts of civil or military authority, national emergencies, work stoppages, fire, flood, catastrophe, acts of God, insurrection, war, riot, or failure of communication or power supply. in the event of equipment breakdowns beyond our control, we shall take reasonable steps to minimize service interruptions but shall have no liability with respect thereto.

24. Risk Acknowledgment

  24.1 The Investment Advisor does not guarantee the future performance of any of the Securities purchased or any specific level of performance, the success of any investment decisions or strategy that the Investment Advisor may use. The Client understands that investment advices given to the Client by the Investment Advisor are subject to various market, currency, economic, political and business risks, and that those investment decisions may not always be profitable.

   24.2 Market and Other Related Risks

The Client expressly agrees and acknowledges that all investments are subject to market and other related risks and there is no assurance or guarantee, whether directly or indirectly, that the value of or return on investments will always be accretive, and that it could depreciate to an unpredictable extent. The Client further agrees and acknowledges that the details of risk foreseen by the Investment Advisor and risk relating to the Securities recommended by the Investment Advisor for investment or disinvestments includes but is not restricted to the following:

   (i) Investment in equities, derivatives and mutual funds are subject to market risks and there is no assurance or guarantee that the objective of the schemes will be achieved.

   (ii) With any investment in Securities, the net asset value of the Portfolio can go up or down depending upon the factors and forces affecting the capital market.

   (iii) The performance may be affected by changes in Government policies, general levels of interest rates and risk associated with trading volumes, liquidity and settlement systems in equity and debt markets.

   (iv) Investments in debt instruments are subject to default risk and interest rate. Interest rate risk results from changes in demand and supply for money and other macro-economic factors and creates price changes in the value of the debt instruments. Consequently, the net asset value of the Portfolio may be subject to fluctuation.

   (v) Investments in debt instruments are subject to reinvestment risks as interest rates prevailing on interest or maturity due dates may differ from the original coupon of the board, which might result in the proceeds being invested at a lower rate.

   (vi) Engaging in Securities lending is subject to risks related to fluctuations in collateral value/settlement/liquidity/counter party.

   (vii) Use of derivatives instruments like index, futures, stock futures and options contracts, warrants, convertible, Securities, swap agreements or any other derivative instruments, including but not restricted to, for the purpose of hedging and Portfolio balancing, as permitted under the Regulations and guidelines will expose to certain risk inherent to such derivatives. The Client is aware that the derivatives are highly leveraged instruments and even a small price movement in the underlying security could have a large impact on their value.

25. APPLICABLE LAW and Jurisdiction

You agree that the laws of the India, without regard to principles of conflict of laws, will govern these Conditions of Use and any dispute of any sort that might arise between you and CrispIdea Private Limited or its affiliates. The place of Jurisdiction will be Bangalore, Karnataka, India.