Terms and Conditions for Order Placement in Mutual Funds

  • Definitions: Words used but not defined in these Terms and Conditions shall have the same meaning as set out in the terms and conditions that has been signed/ accepted by the client with Reliance Securities Ltd (RSL).
  • Unit - shall mean the unit of mutual fund scheme issued by the Mutual Fund to the investor, which consists of one undivided share in the Net Assets of the Scheme
  • Net Asset Value (NAV) - of the Units of the Scheme will be computed by dividing the net assets of the Scheme by the number of Units outstanding on the valuation date.
  • Purchase - shall mean subscription to the units of the various schemes of the Mutual Fund.
  • Redemption - shall mean sale of the units of the various schemes of the Mutual Fund
  • Switch - shall mean an option to the investor to  shift his existing investment in any of the schemes of the Mutual Fund to another scheme of the Mutual Fund.
  • Systematic Investment Plan (SIP) - shall mean an option available to the investor for investing in a specified frequency of months in a specified scheme of Mutual Fund for a constant sum of investment
  • Mandate: shall mean a one time authorization given to debit money up to a certain limit in a day to purchase any specified scheme of Mutual Fund
  • Types of Systematic Investment Plan
  • SIP - shall mean regular investment where the funds will be debited timely from client’s ledger account held with RSL
  • XSIP - shall mean regular investment where the funds will be debited timely from client’s bank account by signing the physical mandate form
  • iSIP - shall mean internet-based SIP, is a completely paperless way of setting up an SIP. In an iSIP, after client have set up the SIP, client will have to add 'BSE India Limited' as a biller in client’s mapped bank account registered with RSL through internet banking.
  • Systematic Transfer Plan - shall mean option available to investor for transferring of investment amount from one scheme of Mutual Fund to another Scheme of Mutual fund in a specified frequency of months.
  • Systematic Withdrawal Plan - shall mean regular flow of income to client’s ledger account held with RSL or client’s bank account
  • Transaction Instructions - shall mean transactions such as Purchase, Additional Purchase, Redemption, Switch, Systematic Investment Plan, Systematic Transfer Plan, Systematic Withdrawal Plan, Transfer In/ Out, etc
  • Load - shall mean a charge, which the Asset Management Company (AMC) may collect on entry and/or exit from a scheme.
  • Business Day - means a day other than:  a. Saturday and Sunday; b. Bank Holiday or c. Day on which banks are normally open for business. Provided that, with respect to a Scheme this definition shall at all times be subject to the definition of Business Day in the Offer Document of respective schemes of various AMCs.
  • NSE Mutual Fund Service System (MFSS) - The Mutual fund platform provided by NSE for order placement
  • BSE Star - The Mutual fund platform provided by BSE for order placement
  • The client hereby appoint and irrevocably authorize RSL and its authorized employees/agents as his/her agent/distributor to act on his/her instructions provided electronically through the Internet/ email to purchase and/or redeem and/or switch units of mutual funds (“Transaction Instructions”) on the terms and conditions mentioned herein. The client hereby state that all the acts, deeds and things done by the client shall be binding on the client.
  • RSL shall have the discretion to select the Mutual funds and the schemes that it shall offer as part of the online mutual fund transaction facility.
  • In case of purchase, the transaction amount will be debited immediately from the customer’s account eld with RSL.
  • In case of redemption, transaction amount will be credited directly to the customer’s account with RSL for demat units. In case units held in folio mode, customer at its sole discretion can choose to credit the amount in account held with RSL or bank account.
  • In case of all Liquid Plan Mutual Fund Schemes all order requests for purchase and redemption will be processed at 12.45 hrs respectively on a business day (from Monday to Friday) while in case of all Mutual Fund Schemes (excluding Liquid Plan schemes) all order requests for purchase and redemption will be processed at 14.45 hrs on a business day (from Monday to Friday). 
  • In case of purchase, units will be credited to clients Demat account/ Folio as per instruction given by the client will be based on settlement cycle prescribed by exchange timely or by AMC / RTA respectively
  • In case of redemption request, the redemption proceeds will be credited to the customer’s account held with RSL or bank account as selected by customer depending on settlement cycle prescribed by the exchanges.
  • The mandated cut off time observed by Mutual Fund/AMC with respect to purchase/redemption of units at closing NAV of the business day is 14.45 hrs for Mutual Fund Schemes (excluding Liquid Plan Schemes & Transaction Value Greater than 2 lacs), Liquid plan schemes is 12.45 hrs and for Transaction Value Greater than 2 lacs is 14.15 hrs
  • If an order is placed through RSL in liquid scheme prior to 12.45 hrs then the NAV applicable will be that of T-1 day and order placed in non liquid scheme prior to 14.45 hrs then the NAV is applicable will be of T day where T day is transaction day.
  • In case of all Liquid Plan Mutual Fund Schemes all order requests for purchase and redemption placed after 12.45 hrs would be taken up for processing only on the next business day while for all Mutual Fund Schemes (excluding Liquid Plan schemes) all order requests for purchase and redemption placed after 14.45 hrs would be taken up for processing only on the next business day
  • Any transaction request received after cut off time, the same would be processed on the next business day at the applicable NAV.
  • SIP will get triggered between 10:00 hrs to 11.00 hrs on the SIP trigger date. For XSIP/ iSIP where the units are credited to Demat account, funds will be debited on T-2 date and hence for the SIP to be successfully triggered, customer is required to ensure that there are sufficient funds available in their account held with RSL or bank account as per selection.
  • For XSIP, subsequent transactions of SIP will be executed only when the mandate is duly signed and approved by Exchange and for iSIP, transactions of SIP will be executed only when the mandate is registered by customer in their bank account.
  • In case of Tax Savings schemes there could be a minimum lock in period.
  • Exchange will deduct TDS / STT or any other charges as prescribed from the redemption proceeds etc., wherever applicable.
  • The client confirms for all XSIP & iSIP transactions, the payment shall be done though client's own bank account and the proof for the same will be produced by the client whenever required
  • Customer understands that if a sub-broker has sourced the customer account for RSL then for the purpose of Mutual Fund investments, at the request of such sub broker the ARN of the sub broker may be considered as the main broker code and the ARN of RSL will be considered as Sub broker ARN.
  • As per SEBI directives it is compulsory that the customer is KYC (Know Your Client) compliant. The customer hereby undertakes that the information provided by him/her in regard to the KYC is true. In case if customer is not KRA verified the order will be accepted by RSL but will not be pushed to Mutual fund or AMC till the time KRA status is not verified and hence the NAV will be applicable for the scheme on the order push to exchange date and not of the order placement date
  • Customer is requested to check up the personal and bank related details provided by him/her. Neither RSL nor any of the Mutual Funds chosen shall accept any liability which may arise as a consequence of the erroneous information provided by the customer. For change of address or any personal details of the customer, the customer shall send a letter or fax to RSL signed by all the co-holders.
  • Customer confirms that he/she wishes to invest in Mutual Fund units by opening a Mutual Fund folio with the same nomination as that of the DP Beneficiary Owner A/c with Reliance Securities Ltd as the case may be.
  • Customer has to ensure that mutual fund investments are not funded by any third party
  • DP Annual Maintenance Charges/ transaction charges will be levied at the sole discretion of RSL
  • Customers can transact directly with the AMC without any recourse to RSL at any time under the folio(s) tagged with the RSL’s ARN code.
  • Neither RSL, nor any of the Mutual Funds shall be liable for any failure to perform its obligations, to the extent that such performance has been delayed, hindered or prevented by systems failures, network errors, delay or loss of data due to the above and in circumstances of acts of God, floods, epidemics, quarantine, riot or civil commotion and war.
  • RSL shall provide its services on a best effort basis. However RSL shall not be liable for failure of the system or for any loss, damage or other costs arising in any way out of:
  • a.   System failure including failure of ancillary or associated systems, or fluctuation of power, or other environmental conditions; or
  • b.   Accident, transportation, neglect, misuse, errors, frauds of the customers or agents or any third party; or 
  • c.   Any fault in any attachments or associated equipment of the customers; or
  • d.   Any incidental, special or consequential damages including without limitation of loss of profit. 
  • For any queries regarding any Mutual funds transactions or any services customer may call our customer service
  • RSL has disclosed to the customer all the commissions (in the form of trail commission or any other mode), payable to RSL for the different competing Schemes of various Mutual Funds from amongst which the Scheme which is subscribed by me and the same has been displayed by RSL on its website. As per SEBI circular: SEBI/IMD/CIR No. 4/ 168230/09, dated June 30, 2009, the  indicative rate of commission earned by RSL from various fund-houses, whose products are being distributed as displayed herewith
Commission earned inclusive of charges (%)
 Asset TypeScheme Category 1st Year Trail 2nd Year Trail
 Min Max Min Max
 CommodityFoFs  0.15  0.65  0.15  0.65
 DebtOvernight Fund  0.02  0.10  0.05  0.05
 DebtLiquid  0.03  0.25  0.05  0.05
 DebtMoney Market  0.05  0.50  0.05  0.05
 DebtFloating Rate  0.05  0.75  0.05  0.75
 DebtUltra Short Duration  0.05  0.75  0.50  0.50
 DebtBanking and PSU Fund  0.08  0.45  0.05  0.05
 DebtLow Duration  0.10  0.70  0.10  0.70
 DebtCorporate Bond  0.15  0.60  0.15  0.60
 DebtGilt  0.15  0.90  0.60  0.60
 DebtCredit Risk Fund  0.15  1.10  0.90  0.90
 DebtLong Duration  0.25  0.75  0.25  0.75
 DebtShort Duration  0.40  0.80  0.40  0.80
 DebtDynamic Bond  0.40  0.90  0.40  0.90
 DebtMedium to Long Duration  0.40  1.10  0.40  1.10
 DebtMedium Duration  0.50  0.95  0.50  0.95
 EquityIndex Funds  0.05  0.50  0.25  0.25
 EquityThematic Fund  0.35  1.40  0.35  1.40
 EquitySector Funds  0.60  1.45  1.20  1.20
 EquityFocused Fund  0.70  1.50  1.20  1.20
 EquityEquity Linked Savings Scheme  0.70  1.50  1.20  1.20
 EquityMarket Cap Fund  0.70  1.60  1.20  1.20
 EquityContra  0.75  1.10  0.75  1.10
 EquityDividend Yield  0.80  1.05  0.80  1.05
 EquityValue Fund  0.80  1.10  0.80  1.10
 HybridConservative Hybrid Fund  0.20  1.50  0.20  1.50
 HybridArbitrage Fund  0.40  1.15  0.40  1.15
 HybridAggressive Hybrid Fund  0.50  1.40  1.20  1.20
 HybridEquity Savings  0.70  1.45  1.20  1.20
 HybridBalanced Advantage  0.75  1.40  0.75  1.40
 HybridMulti Asset Allocation   0.85  1.50  0.85  1.50
 HybridDynamic Asset Allocation   0.90  1.50  0.90  1.50
 HybridBalanced Hybrid Fund   1.00   1.50  1.00  1.50
 OtherFoFs (Overseas)   0.10  1.10  0.10  1.10
 OtherFoFs (Domestic)   0.10  1.10  0.10  1.10
 OtherSolution Oriented - Retirement Fund   0.85  1.50  0.85  1.50
 OtherSolution Oriented - Children's Fund  1.00  1.50  1.00  1.50

  • All online transactions under Mutual Fund distributor ARN - 29889 are considered as “execute only” basis. RSL do not advise to invest in any asset class or any specific schemes, hence it is important that investor himself/ herself has to find out suitable investment scheme / option after study of offer/related document. There are no assurances or guarantees that the objectives of any of trading / investment in Mutual Funds will be achieved. The investments referred to herein may not be suitable to all categories of traders/investors Investors should read and understand the content of the scheme information documents (SID) / key information memorandum (KIM) and statement of additional information (SAI) of the schemes in which he/she is investing / switching/making redemption.
  • RSL shall have the right to modify these terms and conditions to meet its revised operational procedures or any regulatory requirements arising out of circulars, regulations, notifications etc issued by SEBI, Mutual Funds, AMFI, etc., having any bearing on the mutual fund transactions. RSL may also at its absolute discretion amend or supplement any of the terms and conditions mentioned herein at any time with prior notice of 15 days to the customer.