Accounts

Accounts

Main role  Maintaining book of accounts  Funds movement Fund inflows/ Fund outflows  Passing ledger entries for purchase and sale of securities  Making FAN payments  Paying staff incentives  Reconciliation of exchange obligation Capital /Revenue Expenditure/Income

Modes of receiving client money  Cheque delivered at HO/ local branches  Cheques from outstation branches, through CMS  Online funds transfer  Direct deposits by client to our bank account via cheque

Cash  As per exchange rules we are not allowed to accept cash

Cheque  At HO / Mumbai, local branches Cheques are deposited in designated account.  Limits updated after receipt of clear funds.

CMS System  Deposit cheque in designated account, which is with HDFC Bank  HO gets statements from HDFC Bank  Limits set only after confirmation of clear funds  Branch intimates HO about deposits by email  Email should have customer name, login id, amount, cheque number etc.

Online Fund Transfer  Gateways with ICICI Bank, HDFC Bank, UTI Bank, Citibank and Centurion Bank  By far, widest range of payment gateways with banks  Limits updated in real time

Direct deposit by customer  Here customer has to give us copy of the cheque.  Customer has to provide copy of bank pass book or bank statement showing debit of the same to his account.  If these two steps are not followed,there will be difficulties in giving credit to customer.

Pay out of funds  Pay out requests come from email/phone calls/online  Request is noted, processed and the ledger is modified  Risk Manager approves the pay out  Cheque is made and instructions given  In case of online transfer funds can be transferred to HDFC, ICICI Bank or UTI Bank  Normally takes 2 working days

How Payments Are Made  Payment requests are made through 5paisa website or phone call to branch/RM/customer care who in turn log payment request on behalf of client on wire  All the payments are processed twice in a day and sent to risk for approval  Post approval payments files are generated for uploading on internet or for cheque printing

Delays  Client payout request comes before exchange payout  Risk related issues - Short sell, Undelivered shares.

Third Party Cheques  What are third party cheque? Debit in account of party ‘A’ if settled by cheque given by party ‘B’. A broker is not supposed to accept third party cheques as it violates SEBI guidelines.

Software Used  Tradeplus – Accounting Software  Wire – In house Developed Software For MIS

Client Receipts How Collections Are Accounted

 Branches collecting cheques have to enter in wire.Basic details of cheques & alongwith scan image of cheque  Scan image is verified and if matched posting is done  Online transfer is directly posted  Those using 5paisa website funds can get transferred into our account

Bank Reconciliation  Done On Daily Basis

Exchange Related Transactions  Payin & Payout Of Exchange Is Done Daily Basis  Online Margin Requirement Is Monitored & Funded Accordingly  Reconciliation Of Exchange Transactions Done On Daily Basis

Fundflow Monitoring  Daily Funds Requirement And Arrangement For Clients & Exchange Is Controlled  Statements Are Prepared To Monitor Same

Branch Accounting  Data is entered in in-house accounting software developed  Bills are posted and sent to head office for verification  Certain payments are made by branch and some by head office

Other Functions     

Ensure General Ledger Is Updated Ensure Statutory Payments Are Made On Time Ensure Quarterly Results Are Prepared Group Company Reconciliation Rent, Franchisee, Salary & Incentives Payments Processed

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