A Note on SERVICE OFFERING of Alice Blue Commodities

Alice Blue Commodities Pvt. Ltd is trading and clearing house registered with the Multi Commodity Exchange of India Limited (MCX), National Commodity & Derivatives Exchange Limited (NCDEX). Starting off in 2006, as a small trading firm in Chennai, the firm has grown to have a pan-India presence with 7 offices and over 750 franchisees. Helping its esteemed clientele trade in equity, currency and the commodity market, Alice Blue has its presence in all the markets and catering its market segment in an efficient manner. The firm has been providing its clients with excellent technological infrastructure and technical advice from their Research Team, based at their head office in Chennai.

The Service/Product Offerings: Normal Trading Account Services Prepaid Brokerage Payment System T20 Scheme 3rd Party Mutual Fund Products and Research Investment Planning

As a new client, the firm charges you with Rs. 600 as your account opening fee. This payment, made through a cheque, along with a cancelled cheque, and required documentation will enable a client to register with SEBI and open a Trading Account with Alice Blue. The average Turn Around Time, from document submission to account activation is 3 days. While other major players like ShareKhan and Karvy Broking, make it mandatory for a client to keep upto Rs. 10000 as the Minimum Balance, Alice Blue provides clients with Zero balance accounts and Market Exposure of upto 8 times*. Alice Blue provides NSE certified ODIN Trading Platform for Online clients (clients trading on their own terminals) for carrying out any transaction. There are trading desk at each of its branch offices, operated by qualified and experienced traders, providing clients, both online and offline, with updated insights into the market and also carrying out the trade on the clients behalf. Having a stringent client validation protocol (manual verification), client information security is maintained at all levels of interaction. The client is charged a brokerage of 3-5% of the transaction value, depending on the value of the transaction. Apart from charging brokerage per transaction post-transaction, they also provide the client with the facility to prepay the annual brokerage by making an initial payment of RS.12000 at the start, with the brokerage for individual transaction being deducted from the Prepaid Deposit. The clients under this scheme are given the benefit of a fixed brokerage of 2.5% on the transaction value. The most important product innovation introduced by Alice Blue, as a part of their expansion of service/product portfolio is the T20 or Trade at 20. This was introduced by Alice Blue, in May 2013. The T20 Plan, allows the client to conduct transactions of any value, while charging him/her with a fixed brokerage of Rs.20 or 0.1% (0.01% for certain instruments), whichever is

loer.. The launch of T20 was an instant success with over 100 accounts being registered on the day of the launch. Since the launch, as per observation, over 60% of enquiries coming in for new account opening are under the T20 plan. Along with reduced brokerage, the firm provides the client with a system independent trading platform called NEST. NEST is a trading platform, integrated to the company website, allowing people to trade, irrespective of the computer being used. Segment 1. 2. 3. 4. 5. Equity Equity F&O Currency Commodities Commodity Spot Brokerage Rs.20 or 0.1% whichever is lower per order Rs.20 or 0.1% whichever is lower per order Rs.20 or 0.01% whichever is lower per order Rs.20 or 0.01% whichever is lower per order Rs.20 or 0.1% whichever is lower per order

Dedicated investment planners at the branch offices, based upon the clients risk profile and needs, help them with portfolio management. The firm provides clients with 3rd party mutual fund products along with detail research results based on various criteria like NAV, fund performance, volatility etc., on the company website, which helps clients pick out the product as per his/her needs, making the whole process of investment in Mutual Funds are less complicated process. Important Service/Technological Innovations: Integration of NEST online trading platform, on the company website, for T20 account holder. This online platform helps the clients trade in the market of their choice, without having the necessity to download ODIN. This liberates the client from having to use a specific computer/device for trade. Use of Atom IMPS for payments. Changing over from cheques as a mode of transfer of money to the Alice Blue account, now clients can use ATOM Interbank Money Payment System. This system allows the client to transfer money to his Alice Blue Account, through the internet/mobile phone/ IVR. This system has taken out the problem of client having to come to the nearest branch to make payments through cheques. Regular updates from the research team flash on the ODIN terminal or the NEST terminal during the day, enabling clients to take better informed decisions. Note: The firm being a trading and clearing house, did not have a Product/Service manager and the Branch head (VP), was responsible for service delivery to the clients.

*Market Exposure is subject to trade frequency, volume and value over a 3 month period and is subject to change without prior notice to the client.