Yes. For
the purpose of engaging a broker to execute trades on your behalf from time to
time and furnish details relating to yourself for enabling the broker to
maintain client registration form you have to sign the "Member - Client
agreement" if you are dealing directly with a broker. In case you are dealing
through a sub-broker then you have to sign a "Broker - Sub broker - Client
Tripartite Agreement". Model Tripartite Agreement between Broker-Sub broker and
Clients is applicable only for the cash segment. The Model Agreement has to be
executed on the non-judicial stamp paper. The Agreement contains clauses
defining the rights and responsibility of Client vis-à-vis broker/ sub broker.
The documents prescribed are model formats. The stock exchanges/stock broker may
incorporate any additional clauses in these documents provided these are not in
conflict with any of the clauses in the model document, as also the Rules,
Regulations, Articles, Byelaws, circulars, directives and guidelines.
