3.1 True and Accurate Information; Ownership: The information I have provided on my Trading Account Opening Application and all other forms is current, accurate, truthful and complete. I specifically confirm that the information I have provided with regard to my Tax residence is accurate.
Under penalties of perjury, I declare that all information provided by me to MFS in the application forms and all forms, to the best of my knowledge and belief are true, correct and complete.
I acknowledge and agree that MFS reserves the right to perform any type of search either manual or electronic in order to verify my residential details, tax status as a US person or US specified person or my tax residence under CRS. In the event of any inconsistency between the search results and the information provided by me, MFS reserves the right to terminate this agreement and close my Account/s.
I also agree to duly comply with DUE DILIGENCE procedures of MFS under FATCA. If I am identified as a Recalcitrant Customer, MFS reserves the right to terminate this agreement and close my Account/s.
The Account Holder agrees to duly comply with all due diligence procedures of MFS under CRS.
Unless otherwise required by this Agreement, I agree to notify MFS of any change to the information I provided on my Trading Account Opening Application and any other form promptly, but in any event within thirty (30) days of such change. I agree to indemnify and hold MFS, its Affiliates, and their respective directors, officers and employees harmless from and against any and all Claims or Losses arising out of or relating to my failure to provide true and accurate information on my Trading Account Opening Application or to update such information as required. I further represent that no one else has an interest in my Trading Account except me and any other person that I have previously disclosed to MFS through the Trading Account Opening Application or otherwise in a manner specified by MFS. MFS shall be authorized to send Statements of Account, notices, and other important documents to me at the address stated on my Trading Account Opening Application (or to such other address as I may notify to MFS from time to time), and any such documents shall be deemed to have been delivered to me once they have been left at that address.
3.2 Fees, Commissions and Trading Account Minimums: I agree to pay Commissions, charges, and other fees promptly and as set out from time to time in MFS’s schedule of fees. A copy of the schedule of fees is available on the MubasherTrade Web Site, and MFS may modify the schedule of fees at any time by posting a modified schedule on the MubasherTrade Web Site. MFS will generally post the revised schedule of fees on the MubasherTrade Web Site at least two (02) Weeks before the date on which the revised schedule of fees will take effect, and will notify me that there have been changes to the fee schedule when I next log into my Trading Account. I authorize MFS automatically to debit my Trading Account for any Commissions, charges and fees as set out in MFS’s schedule of fees from time to time, and I agree that MFS may share such Commissions or mark-ups and markdowns with an introducing broker or person who refers my Trading Account to MFS. I further agree that MFS may require me to make a minimum payment to open a Trading Account and to maintain a minimum balance in the Trading Account thereafter. If my Trading Account’s value falls below the minimum balance or my Trading Account is inactive, MFS may charge additional fees or, if it deems appropriate in its discretion, close my Trading Account. The Trading Account maintenance fees are described in the schedule of fees on the MubasherTrade Web Site. Charges not included in MFS’s schedule of fees: MFS may not receive notice of certain charges levied on the Customer until several days or weeks following particular trades, so pass-through charges may not be immediately charged to the Customer’s account following a trade in certain securities. Such charges may not have been included in MFS’ schedule of fees as they are one off charges which are trade specific or Customer specific. MFS reserves the right to charge the Customer as and when MFS is informed of such charges by the Clearing broker/s or custodians even if such charges have not been included in MFS’s schedule of Fees. I agree to pay such charges or permit MFS to debit my Account upon receipt of notice of such charges which are not included in MFS’s schedule of fees.
3.3 Taxes. I agree that MFS, may, in its discretion, deduct or withhold from any Trading Account or from any amount due to me, all forms of tax (whether a tax of the Kingdom of Bahrain, the United States of America or of any other country) imposed in accordance with Applicable Regulations. In accounting for taxes or in making deductions or withholdings of tax, MFS may estimate the amounts concerned. Any excess of such estimated amounts over the final confirmed liability shall be credited to my Trading Account. Any deficiency of such estimated amounts under the final confirmed liability may be deducted or retained from any amounts that MFS and/or its Affiliates may owe to, or be holding for, me. If I have closed my Trading Account by the time a deficiency becomes apparent, I confirm that I shall remain liable for, and will be required to pay an amount to MFS in respect of, that deficiency.
Taxes with-held from distribution of dividends and pay-outs by the companies will also be deducted from the amounts receivable by the Account Holder and the Account Holder will not contest MFS’s decision on such tax deduction.
Omnibus Client will be subject to tax laws and regulations of the Kingdom of Bahrain and other markets/countries in various jurisdictions in which MFS trades on behalf of the Omnibus Client via Omnibus Account. The Omnibus Client shall not claim his right for exemption of taxes considering any treaties between the Omnibus Client’s country of residence and the country of the Financial Markets in which the Omnibus Client trades.
3.4 Account Types: MFS offers many different account types. Account types may be subject to certain restrictions and eligibility requirements, and certain services are not available to all customers and account types. Further information on this subject is on MubasherTrade Web Site. I am responsible for selecting the account type that is appropriate for my needs and circumstances. MFS reserves the right to limit the number of Trading Accounts I maintain (or have a beneficial interest in) at any one time.
3.5 Joint Accounts: If there is more than one Account Holder, the legal ownership of the Trading Account will be as designated on the Trading Account Opening Application. If no designation is made, each Account Holder directs MFS to establish the Trading Account as joint tenants having equal share in the Trading Account with rights of survivorship.
If there is more than one Account Holder, each Account Holder agrees to be jointly and severally liable for all obligations arising under this Agreement, any Transaction or otherwise relating to the Trading Account, including responsibility for Orders entered through the Service or using any user ID and password assigned to the account, regardless of which Account Holder gives such instructions, enters such Orders or changes such password. Each Account Holder has full authority, acting individually and without notice to any other Account Holder, to deal with MFS as fully and completely as if such Account Holder were the sole Account Holder including, (a) to trade for the Trading Account pursuant to this Agreement, (b) to receive all correspondence and documents in respect of the Trading Account (and a notice or other document delivered to one of the Account Holders shall be deemed to have been received by all Account Holders), (c) to receive or withdraw money from the Trading Account, (d) to execute agreements relating to the Trading Account, and (e) to deal with MFS fully. Each Account Holder authorizes MFS to follow the instructions of any one Account Holder concerning any matter pertaining to the Trading Account. This includes purchase and sale of Securities and/or Other Property, delivery of any or all Securities and/or Other Property in the Trading Account to any Account Holder or to any third party, or disbursement of any or all monies in the Trading Account. MFS is not responsible for determining the purpose or propriety of any instruction received from any Account Holder as against any other Account Holder, or of any disposition of payments or deliveries of Securities and/or Other Property between or among Account Holders. At its sole discretion, MFS reserves the right to require joint action by the Account Holders in matters relating to the Trading Account and to require written instructions from one or all Account Holders. If MFS receives instructions from any Account Holder that, in MFS’s opinion, conflict with instructions received from any other Account Holder, MFS may comply with any of these instructions or advise each Account Holder of the apparent conflict and take no action as to any of these instructions until the conflict has been resolved to MFS’s satisfaction. The Account Holders acknowledge that MFS has possession over the collateral in the Trading Account, whether owned by the Account Holders individually or jointly.
In the event of a dispute between or among Account Holders of which MFS has notice, MFS reserves the right, but is not obligated, to place restrictions on a Trading Account. For example, if an Account Holder requests a restriction be placed on access to funds in the account because of a pending litigation or dispute between Account Holders, MFS may prohibit all transfers of funds from the account, with such restrictions to remain in place until MFS actually receives and has a reasonable amount of time to act on appropriate court documentation or a written, notarized instruction signed by all Account Holders. MFS also may, at the expense of the Account Holders, commence or defend any action or proceeding for or in the nature of interpleader to have the dispute resolved judicially. If a suit or proceeding for or in the nature of interpleader is brought by or against it, MFS may deliver the account into the registry of the court, at which time MFS will be deemed to be and will be released and discharged from all further obligations and responsibilities under this Agreement.
Each Account Holder agrees that, on the death or disability of an Account Holder, divorce of married Account Holders, or other event that causes a change in ownership or capacity with respect to the Trading Account, the remaining Account Holder(s) will immediately give MFS official written notice and/or proof of such change of ownership or capacity. All expenses due at the date of such notification shall be charged to the Trading Account. MFS will not be responsible for any transfers, payments or other Transactions in the Trading Account made at the direction of a former Account Holder or incapacitated Account Holder before MFS actually received and had a reasonable amount of time to act on such official written notice. Following receipt of such official written notice, MFS may require additional documents and reserves the right to retain such assets in and/or restrict Transactions in the Trading Account as it deems advisable in its sole discretion to protect itself against any Losses. Any former Account Holder and the estate of any deceased or incapacitated Account Holder will remain jointly and severally liable for any Losses in the Trading Account arising out of or relating to Transactions initiated before MFS actually received and had a reasonable amount of time to act on such official written notice. MFS will not notify other Account Holders of the actions taken by any one Account Holder. Each Account Holder agrees that notice provided to any one Account Holder will be deemed to be notice to all Account Holders for all purposes.
3.6 Requesting Certificates. I authorize MFS to register any Securities and/or Other Property in my Trading Account in the name of MFS or any other nominee, including any custodian or sub-custodian, or to cause the Securities and/or Other Property to be registered in the name of, or in the name of any nominee of, a recognized depository clearing organization. My ownership of these Securities and/or Other Property is reflected in MFS’s records. Without abrogating any of MFS’s rights under this Agreement and subject to prior satisfaction of any indebtedness I may have to MFS, I am entitled to receive physical delivery of fully paid certificated Securities and/or Other Property from my Trading Account. On my written instructions, and on paying any applicable fees (as described on the MubasherTrade Web Site), any certificate that is capable of being produced or obtained by MFS in physical form will be sent to me on my request.
I understand that I may only have a contractual (and not a proprietary) right to the return of Securities or Other Property held in my name with a custodian, sub-custodian, nominee, depository or clearing organization in certain jurisdictions. Where this is the case, it is possible that my Securities or Other Property may not be returned in full if such custodian, sub-custodian, nominee, depositary or clearing organization becomes insolvent or otherwise defaults on its obligations. I agree that MFS shall not be responsible for any Losses that I may suffer in such circumstances.
3.7 Any securities traded on an OTC market i) shall be recorded in the Client Account as securities held by MFS with the Custodian on behalf of the Client ii) or shall be delivered to a different custody account as instructed by the Client.
3.8 Personal Information. The respective rights and responsibilities of MFS and myself regarding the collection, processing and use of my personal information and my rights to limit the use and disclosure of such information, are set forth in the MubasherTrade Privacy Statement published on the MubasherTrade Web Site at http://global.mubashertrade.com as amended from time to time. Such rights and responsibilities are further defined by Applicable Regulations. In the event of any controversy regarding MFS’s collection, use, processing, transfer, or receipt of any information about me, I agree that my remedies will be expressly limited to those specifically provided by the Applicable Regulations, in accordance with this Agreement. I authorize MFS from time to time to obtain reports concerning my credit standing and business conduct. I also authorize MFS, without notifying me, to request a new credit report in connection with any review, extension or renewal of my Trading Account and to contact such banks, financial institutions and credit agencies as MFS shall deem appropriate to verify information regarding myself. On written request, MFS will advise me whether it obtained credit reports, and if so, will provide the name and address of the reporting agency that furnished the reports. In addition, I understand that MFS reserves the right to report to consumer and securities credit reporting agencies any Debit Balance or negative credit information pertaining to any Trading Account held by me at MFS. I authorize MFS to share credit bureau information and any other personal information that MFS obtains with its Affiliate(s) and with unaffiliated third parties in accordance with the MubasherTrade Privacy Statement. I further authorize MFS to investigate my current and past investment activity, and in connection therewith, to contact such futures commission merchants, exchanges, broker dealers, banks, and compliance data centres as MFS shall deem appropriate. I understand that upon reasonable request made by me in writing to MFS, I shall also be allowed, at my sole cost and expense, to copy such records.
I understand that according to FATCA, MFS is required to submit my account details and any other Personal Information to the Internal Revenue Service of the United States of America, (IRS), tax authorities of Bahrain, CBB, or local tax authorities, any other regulators or third parties as per applicable statutory requirements from time to time, if my account falls under the category of a Reportable “U.S. Account” or “Recalcitrant Customer / Recalcitrant Account Holder” under FATCA. Therefore, I authorize MFS to disclose all current and historical data related to my Personal Details, Account Balances, Financial Income [profit/loss] Gross proceeds on sale of securities and any other information to IRS, CBB, local tax authorities or any other regulators or third parties.
I understand that in compliance with CRS (and as per applicable statutory requirements from time to time), MFS is required to submit my account details and any other Personal Information (including but not limited to all current and historical data related to my/our personal details, TIN, account balances, financial income [profit/loss] gross proceeds on sale of securities) or forms provided by me/us to the CBB, local tax authorities, any other regulators or third parties. Such information will finally be reported to my/our country of Tax residence.
I authorize MFS to disclose all current and historical data related to my Personal Details, Account Balances, Financial Income [profit/loss] Gross proceeds on sale of securities and any other information to IRS, CBB, local tax authorities or any other regulators or third parties.
I understand that once my Personal Information has been submitted as set out above, such Personal Information is no longer protected by the Bahraini law. Also my above Personal Information may be passed to other authorities or third parties under the provisions of the US laws, CRS or any other applicable law and my Personal Information can be used by such authorities for law enforcement actions.
In the event of such disclosure above mentioned, I hereby release and discharge MFS from its obligation of non-disclosure under this agreement, MubasherTrade Privacy Statement or any other applicable Bahraini or other law or regulation.
3.9 Satisfaction of Indebtedness. I agree to satisfy any indebtedness to MFS and pay any Debit Balance in any of my Trading Accounts on demand. My Trading Account will not be closed until I cause to be delivered to MFS all Securities and/or Other Property that the Trading Account is short and all funds to pay in full for all Securities and/or Other Property that the Trading Account is long. If I have a Debit Balance in my Trading Account and I own an interest in any other Trading Account (including those accounts held by me with Affiliates of MFS), MFS may, to the extent permitted by law, effect a transfer or demand a distribution from such other account to cover any Debit Balance due to MFS, without notice to me, my personal representatives, heirs, executors, administrators, trustees, legatees or assigns and regardless of whether the ownership interest shall solely be mine or held jointly with others. I agree that, on MFS’s written demand; I will execute all documents necessary to effect a distribution from such other account and to cause such funds to be paid immediately in order to satisfy my indebtedness to MFS. MFS’s rights under this paragraph are in addition to and with full reservation of MFS’s rights to take any additional action, including legal action, to recover any indebtedness I may owe to MFS. I agree to indemnify and hold MFS and/or its Affiliates harmless from and against any costs or Losses incurred in connection with enforcing its lien or any other remedies available to it. In enforcing its rights hereunder, MFS may act in its discretion without regard to any tax or other consequences that I may face as a result of such actions. I further agree to pay and shall be liable for all reasonable costs and expenses of collection, including but not limited to, attorney’s fees, witness fees and travel expenses. In the event MFS incurs expenses other than for the collection of deficits, with respect to any of my Trading Account(s), I agree to pay such expenses.
3.10 Lien and Liquidation; Remedies. I agree that all Securities and/or Other Property held in Trading Account(s) by me either individually, jointly with others or as a guarantor of the account of any other person (including, where permitted, those accounts held by me with Affiliates of MFS and irrespective of the number of Trading Accounts I may have with MFS) or which may at any time be in MFS’s possession or control or carried on the books of MFS for any purpose, including safekeeping and all rights, whether due or not, that I may have against MFS will be subject to a first, perfected and prior lien, security interest and right of set-off and held as security by MFS or its Affiliates for the discharge of any indebtedness or obligation I may have to MFS and/or its Affiliates, however such obligation may have arisen. I understand that MFS, to the extent permitted by law, may at any time and without giving me prior notice, use, sell, liquidate, realize, close out and/or transfer any or all Securities and/or Other Property to satisfy any indebtedness or obligation to MFS, however such obligation may have arisen. Any proceeds arising from such sales or realisations will be applied by way of set-off to reduce or discharge my liabilities or obligations owed to MFS or its Affiliates. Any proceeds remaining thereafter will be credited to my Trading Account. In the event of a breach or default by me under this Agreement, MFS will have the rights and remedies available to a secured creditor under all Applicable Regulations in addition to the rights and remedies provided in this Agreement. I will be liable to MFS and will indemnify MFS and its Affiliates against all liabilities, costs, Claims or Losses and expenses incurred by MFS or its Affiliates in respect of any action taken pursuant to the provisions set out in this paragraph.
Where a debit balance remains on my Trading Account, I agree that I shall on request pay sufficient funds (or, if agreed with MFS, deliver sufficient Securities or Other Property) into the Trading Account to remove the debit balance. If I fail to do so within 48 hours (or such longer period as may be agreed by MFS) of the time at which MFS requests payment, MFS may commence court proceedings in my country of residence or in any other jurisdiction or commence arbitration proceedings in order to recover the amount owed. For the purposes of this paragraph, I will be deemed to have received MFS’s request to deposit additional funds or Securities and/or Other Property at the time at which such request is (i) sent to me by email, (ii) posted on the MubasherTrade Web Site and notified to me by email, or (iii) notified to me by telephone.
I agree that MFS may in its discretion, at any time and from time to time, without notice to me, apply and/or transfer any or all of my funds between any of my Trading Accounts. To the maximum extent permissible by any Applicable Regulation, I hereby also grant to MFS the right to pledge, re-pledge, hypothecate, invest or loan, either separately or with the Securities and/or Other Property of other customers, to itself as broker or to others, any of my Securities or Other Property held by MFS as collateral. MFS shall at no time be required to deliver to me the identical Security or Other Property delivered to or purchased by MFS for any of my Trading Account. Should I take delivery of currencies through settlement of trades, MFS is obliged to make full payment for the delivery on 24 hours’ notice. This authorization shall apply to any and all Trading Accounts carried by MFS for me and shall remain in full force until all Trading Accounts are fully paid for by me or notice of revocation is sent by MFS.
I further agree that in the event of: (a) my death or judicial declaration of incompetence, (b) the filing of a petition in bankruptcy, or a petition for the appointment of a receiver, or the institution of any insolvency or similar proceeding by or against me, (c) the filing of an attachment against any of my Trading Accounts with MFS, (d) MFS’s determination that any collateral deposited to protect one or more of my Trading Accounts is inadequate, regardless of current market quotations, to secure the said account or accounts, (e) my failure to provide MFS any information requested pursuant to this Agreement, or (f) any other circumstances or developments that MFS deems appropriate for its protection, then, in MFS’s sole discretion, it may take one or more, or any portion of, the following actions: (i) satisfy any obligation that I may have to MFS, either directly or by way of guaranty of surety, out of any of my funds or property in its custody or control, (ii) pledge, transfer or sell or purchase any or all Securities or Other Property as the case may be which are held or carried for me in the Trading Account (including those accounts held by me with Affiliates of MFS) or any other account in which I have an interest, either individually or jointly with others, (iii) cancel, terminate, accelerate, liquidate and/or close out any or all agreements or Transactions or any and all outstanding Orders or contracts, or any other commitments made on my behalf and calculate damages in a manner it believes appropriate, and (iv) take any other action as MFS, in its discretion, deems appropriate with respect to any of the foregoing and apply the proceeds to the discharge of the obligation. I also agree that any of the above actions may be taken without demand without prior notice of sale or purchase or other notice to me, my personal representatives, heirs, executors, administrators, trustees, legatees or assigns and regardless of whether the ownership interest shall solely be mine or held jointly with others and that in liquidation of my long or short positions, MFS may, in its sole discretion, offset in the same settlement or it may initiate new long or short positions in order to establish a spread or straddle which in the sole discretion of MFS may be advisable to protect or reduce existing positions in a Trading Account. Any sales or purchases hereunder may be made at MFS’s discretion on any Financial Market(s) or on any other market or trading facility where such business is then usually transacted or at a public auction or private sale, and MFS may purchase the whole or any part thereof free from any right of redemption.
3.11 Disclaimer of Liability. I understand and agree that MFS and/or its Affiliates will not be liable to me or to third parties, or have any responsibility whatsoever, for: (a) any Claims or Losses arising out of or relating to a cause over which MFS and/or its Affiliates do not have direct control, including the failure of electronic or mechanical equipment or communication lines, telephone or other interconnect problems, unauthorized access, theft, operator errors, government restrictions, Force Majeure Events, exchange or Financial Markets rulings or suspension of trading; or (b) any special, indirect, incidental or consequential damages (including lost profits, trading losses and damages) that I may incur in connection with my use of the Service provided by MFS under this Agreement.
3.12 Restrictions on Account Services. I understand that, to the extent permitted by law, MFS may place trading, disbursement, service or other restrictions on my Trading Account for reasons including court order, tax levy or garnishment, request of a government agency or law enforcement authority, a Debit Balance in my Trading Account, or in the event of a dispute between joint Account Holders. I understand that MFS may be required to liquidate or close out Securities and/or Other Property in my Trading Account to satisfy any such court order, garnishment, tax levy or other legal obligation. MFS will not be held liable for any Claims or Losses that arise out of or relate to any such Transaction and I agree to indemnify and hold MFS and/or its Affiliates harmless from and against any Claims or Losses they may incur in taking such actions. I understand that MFS may refuse for any reason to accept share or other ownership certificates for deposit into my Trading Account.
I agree that if restrictions or prohibitions are enforced by markets, regulators, or by a policy introduced by any Executing Broker or Custodian of MFS in relation to trading in certain securities then such restrictions will be applicable to my Trading Account.
3.13 Termination of this Agreement and Termination of Trading Accounts. This Agreement shall continue in effect until termination on my part and/or by MFS. I may close my Trading Account at any time, after all Debit Balances are paid, on written or oral notice to MFS. MFS reserves the right to terminate my Trading Account or to block my access to the Service with or without notice, for any reason or for no reason. The terms and conditions set out in this Agreement will survive termination of my Trading Account and will continue to apply to any disputed or other remaining matters involving my relationship with MFS. After the termination of my Trading Account, I will remain liable to MFS for payment of any indebtedness or obligation to MFS, plus interest as provided under this Agreement.
3.14 Transfer of Accounts. By submitting a Trading Account transfer request, I authorize MFS to act on my behalf to initiate a transfer of the Securities and/or Other Property in my Trading Account to an account I have established with another broker-dealer. Once MFS receives a transfer request in good order, MFS will submit the instruction to the other firm, which is then responsible to facilitate delivery/receipt of the assets in question. MFS may, under certain circumstances, reject the transfer request before or after initiation and I will be notified of any such rejection electronically, by telephone or otherwise. MFS is not liable for any Claims or Losses I may sustain in connection with the Securities and/or Other Property in the Trading Account as a result of the rejection or between the time that it decides to reject a transfer request and my receipt of notice of the rejection. It is my responsibility to ensure that my instructions are accurate before submitting a transfer request to MFS. A transfer request cannot be amended or cancelled after MFS receives and initiates the transfer. MFS may in its discretion attempt to abide by a subsequent request for a change to a transfer request, but it is not obligated to do so, and MFS will not be liable for any Claims or Losses that arise out of or relate to an attempt to amend or cancel a transfer request. If I arrange for a transfer to be directed to my Trading Account by contacting the delivering firm directly, I am responsible for ensuring that such transfer is initiated properly and that MFS’s instructions are given to the delivering firm in exactly the form required by MFS for identification of me and my Trading Account for proper Transaction posting. I understand that any erroneous, mismatched, or incomplete identifying information on an incoming or outgoing transfer may result in such transfer being rejected, lost, posted to an incorrect account, or returned to the originating firm without notice to me, and I agree to indemnify and hold MFS and/or its Affiliates harmless from and against any Claims or Losses arising out of or relating to: (i) any erroneous, mismatched, or incomplete identifying information on a transfer; and (ii) any transfer for which MFS is in compliance with applicable regulatory or self-regulatory requirements dealing with account transfers.
Unless otherwise indicated on MFS’s Trading Account transfer form, I authorize MFS to liquidate any positions in non-transferable assets, deduct any Debit Balance and transfer the resulting balance. I understand that after receiving a transfer request, MFS will cancel, or will instruct the delivering firm to cancel, all open Orders for my Trading Account and to fulfil the transfer request as needed.
3.15 Refusal of orders/restrictions on trading in penny stocks and illiquid stocks
MFS’ may at his discretion refuse to execute any buy or sell of any scrip / shares / stock / derivatives contract on behalf of the client including but not restricted to dealings in penny stocks, illiquid stocks, infrequently traded stocks /contract or any other category, etc. if MFS / Exchanges / Regulatory Authorities is of the view that such execution would adversely affect market integrity or give rise to regulatory / disciplinary actions / concerns. The restriction on the stock/securities may be as to the price, quantity or mode of placement of orders. MFS reserves the right to disable certain scrips for trading on online trading platform and/or authorised persons terminals or put quantity or price restrictions while putting trade orders. The penny stock would mean any stock trading at a price less than USD 0.1 or equivalent in other currency or at a price less than the face value or any other stock specified by the Regulatory Body/Stock Exchange as such or which are appearing in the list of illiquid securities issued by the Exchanges every month. In general terms, it is a low priced, speculative security or a very small company, regardless of market capitalization.
The above referred restrictions are placed on the trading activities of the client as the stock may be exposed to price rigging and other market manipulative activities. Clients may note that for risk mitigation, MFS shall have the right to reject the orders placed by the client and/or put circuit breakers to discourage trades getting executed at unrealistic prices from the current market price of the security or prohibit the client from trading in illiquid securities which creates artificial liquidity or manipulates prices or to discourage client from cross/ synchronized trading and MFS shall not be liable for any loss arising out of non-acceptance or rejection of the client orders for any such reason if the client fails to give sufficient reason for placing such orders.