Policy on Facility of Voluntary Freezing/Blocking of Trading Accounts by Clients

Preamble:

SEBI vide Circular No. SEBI/HO/MIRSD/POD-1/P/CIR/2024/4 dated January 12, 2024 titled "Ease of Doing Investments by Investors – Facility of voluntary freezing/blocking of Trading Accounts by Clients" and the framework issued by NSE & BSE on the facility of voluntary freezing/blocking the online access of the trading account by the clients vide circular dated April 08, 2024 mandates the trading member to implement necessary policy and procedures.

Purpose/ Background:

At times, suspicious activities are noticed by clients in their trading account but the facility of freezing/blocking of the accounts is not available to clients. Accordingly, SEBI/Exchange have directed all stockbrokers to frame a policy wherein the facility of voluntary freezing/blocking the online access of the trading account by initiating hot listing request on account of suspicious activities is made available to their client.

This policy outlines the mechanism termed as “Hotlisting” for client that allows him to voluntarily block or freeze his trading account if he detects any suspicious or fraudulent activities. By initiating a hotlist, he can ensure that his trading account is temporarily suspended, preventing any further unauthorized transactions.

Methods of Hotlisting:

Method 1: INDstocks Website

Client can visit www.indstocks.com and log in using his OTP. By following the below steps, client will be able to voluntarily block/freeze his trading account:

  • Go to Menu
  • Select My Permissions
  • Choose INDstocks Account
  • Click on Trading Account Hotlisting
  • Submit OTP & Confirm

Method 2: Email Request from Registered Email ID

Client can send an email from his registered email address to stoptrade@indmoney.com. with the subject line “Hotlisting of Trading Account

On receipt of clients request through any of the above methods, INDmoney shall take the following actions:

  • Validate the request received from the client.
  • Upon validation, INDmoney will issue an acknowledgement & confirmation of Hotlisting on registered email id and mobile number of the client.
  • Subsequently, freeze/block the online access to the client's trading account on both INDstocks App & website within the prescribed timelines*.
  • Issue a notification of open positions (if any) and contract expiry information within one hour of freezing/blocking the trading account.
  • The re-enablement process of client Trading account will be shared on his registered email-id.

*15 minutes in case the request is received during the trading hours and within 15 minutes before the start of trading / Before the start of the next trading session in case the request is received after the trading hours and 15 minutes before the start of the trading

Maintenance of Appropriate Records / Logs:

INDmoney shall maintain the appropriate records/logs including, but not limited to, request received to freeze/block the online access of trading account, confirmation given for freezing/blocking of the online access of the trading account and cancellation of pending orders, if any, sent to the clients

Re-enabling the client for online access of the trading account:

Clients can submit request of re-enablement through the following method:

Method 1: Register Reactivation Request

Client can visit www.indstocks.com and log in using his OTP. Follow these steps to register his re-enablement request:

  • Go to Menu
  • Select My Permissions
  • Choose INDstocks Account
  • Click on Trading Account Hotlisting
  • Submit OTP & Confirm

Validation and Confirmation

INDmoney will carry out necessary due diligence including validating re-enablement request received and upon confirmation will:

  • Issue a confirmation of request on registered email id and mobile number.
  • Online access to the trading account on both INDstocks App & website will be re-enabled.

Review of the Policy

The Company reserves the right to amend or modify this Policy on Facility of voluntary freezing/blocking of Trading Accounts by Clients in whole or in part to ensure the effectiveness. Further, in order to ensure the effectiveness of policies and procedures, the person doing such a review shall be different from the one who has framed such policies and procedures. Any such amendment will be made only after obtaining the requisite approvals.