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Investment Advisory Services Agreement

Glide Tech Investment Advisory Private Limited


SEBI Registered Investment Advisers Registration No. INA000014793

THIS INVESTMENT ADVISORY SERVICES AGREEMENT (the “Agreement”) is made on this …………………..,

BETWEEN

Glide Tech Investment Advisory Private Limited, incorporated under the Companies Act, 2013, CIN: XXXXX, having office at office at Motilal Oswal Tower, Rahimtullah Sayani Road, Opp Parel ST Depot, Prabhadevi, Mumbai, Maharashtra, 400025, (hereinafter referred to as the “INVESTMENT ADVISOR” or GTIAPL which expression shall unless excluded by or repugnant to the context, be deemed to include its administrators and permitted assigns) of the FIRST PART

And

Mr/Ms. ………................... (Client), with PAN no XXXXX, and a resident of …………… ………………………… …………… (hereinafter referred to as the “CLIENT” which expression shall unless it be repugnant to the context or be deemed to mean and include, its administrators & permitted assigns) of the SECOND PART;

GTIAPL is a Registered Investment Advisor (RIA) with SEBI Registration No. INA000014793 and offers Investment Advisory services to Clients who register through their websitehttps://www.glideinvest.com (and its subdomains), and/or its mobile applications called “Glide Invest” (henceforth referred to as “Platform”).

Both INVESTMENT ADVISOR and the CLIENT shall also hereinafter individually referred to as Party & collectively as Parties.

Whereas the CLIENT is desirous of availing the advisory services in respect of the analysis of the investment portfolio from the Investment Advisor on the terms & conditions as described hereinafter.

  • APPOINTMENT OF THE INVESTMENT ADVISER:
    • In accordance with the applicable laws, client hereby appoints, entirely at his / her / its risk, the Investment Adviser to provide the required services in accordance with the terms and conditions of the agreement as mandated under Regulation19(1)(d) of the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013.
  • CONSENT OF THE CLIENT
    • I / We have read and understood the terms and conditions of Investment Advisory services provided by the Investment Adviser along with the fee structure and mechanism for charging and payment of fee.
    • In addition to the terms and conditions mentioned herein, I have also read and understood the Terms of Service, Privacy Policy, Grievance Redressal Policy, and other relevant policy as applicable for using “Glide Invest” website/application and shall abide by the same.
    • Based on our request to the Investment Adviser, an opportunity was provided by the Investment Adviser to ask questions and interact with ‘person(s) associated with the investment advice.
    • In case I breach any of the terms and conditions, I shall be solely responsible for the consequences arising out of the same.
    • GTIAPL has not compelled me to avail any/all execution/distribution/ Implementation services through them.
    • All decisions/Implementation relating to act on the investment advice of GTIAPL shall be made solely by me.
    • I hereby declare that all information provided by me to GTIAPL for doing the risk profiling and availing the Services are accurate, factually correct and up to date and I shall be solely responsible for any liabilities arising due to wrongful representation of information, and GTIAPL shall not be liable for any consequential loss or damage caused to me.
    • I understand and agree that investing in securities/investment products recommended by GTIAPL is subject to market risk and other risks and I hereby declare that I will not hold GTIAPL and or its Group Companies/ Directors/ Employees responsible/liable for any loss or damage arising to me pursuant to acting on such recommendations.
  • DECLARATION FROM THE INVESTMENT ADVISER
    • Investment Adviser shall neither render any investment advice nor charge any fee until the client has signed this agreement.
    • Investment Adviser shall not manage funds and securities on behalf of the client and that it shall only receive such sums of monies from the client as are necessary to discharge the client’s liability towards fees owed to the Investment Adviser.
    • Investment Adviser shall not, in the course of performing its services to the client, hold out any investment advice implying any assured returns or minimum returns or target return or percentage accuracy or service provision till achievement of target returns or any other nomenclature that gives the impression to the client that the investment advice is risk-free and/or not susceptible to market risks and or that it can generate returns with any level of assurance.
    • Glide Invest is also involved in other activities like dealing in various products including mutual funds, fixed deposits, bonds, etc through its non-advisory division. Investment Adviser shall maintain arms-length relationship between its activities as an Investment Advisory and other activities provided by the Platform.
  • FEES SPECIFIED UNDER INVESTMENT ADVISER REGULATIONS AND RELEVANT CIRCULARS ISSUED THEREUNDER
    • Regulation 15 A of the amended IA Regulations provide that Investment Advisers shall be entitled to charge fees from a client in the manner as specified by SEBI, accordingly Investment Advisers shall charge fees from the clients in either of the two modes:
    • Assets under Advice (AUA) mode
      • The maximum fees that may be charged under this mode shall not exceed 2.5 percent of AUA per annum per client across all services offered by IA.
      • IA shall be required to demonstrate AUA with supporting documents like demat statements, unit statements etc. of the client.
      • Any portion of AUA held by the client under any pre-existing distribution arrangement with any entity shall be deducted from AUA for the purpose of charging fee by the IA.
      • In case of change of asset under advisory, the client will be charged advisory fee on the updated asset under advisory.
    • Fixed fee mode
  • The maximum fees that may be charged under this mode shall not exceed INR 1,25,000 per annum per client across all services offered by IA.
  • FEES SPECIFIED UNDER INVESTMENT ADVISER REGULATIONS AND RELEVANT CIRCULARS ISSUED THEREUNDER
    • In case “family of client” is reckoned as a single client, the fee as referred above shall be charged per “family of client”.
    • IA shall charge fees from a client under any one mode i.e. (A) or (B) on an annual basis. The change of mode shall be effected only after 12 months of on boarding/last change of mode.
    • If agreed by the client, IA may charge fees in advance. However, such advance shall not exceed fees for 2 quarters.
    • In the event of pre-mature termination of the IA services in terms of agreement, the client shall be refunded the fees for unexpired period. However, IA may retain a maximum breakage fee of not greater than one quarter fee.
  • SCOPE OF SERVICE
    • Investment Advisor will provide the following services to the Client:
      • Assist in articulating the goals and objectives of the Client and/or his/her immediate family (in case of family accounts)
      • Assist in assessing the risk profile and risk tolerance of the Client
      • Develop and provide recommendations based on goals & risk profile and assist in implementing these recommendations through goals, smart portfolios and custom portfolios through the Platform
      • Aggregate and analyse Client’s investments by providing an integrated view of their entire portfolio as per provided Consolidated Account Statement (CAS)
      • Provide advice with respect to the investment in mutual funds, insurance, fixed deposits, and other financial assets, as requested by the Client.
      • Provide advice and recommendations in any other areas of financial planning in which Advisor or Client identifies a need
  • DUTIES & FUNCTIONS OF THE INVESTMENT ADVISER
    • Investment Advisor shall provide Investment Advisory Services to the Client during the term of this Agreement on investment in financial/investment products under all regulated authorities as is permitted under applicable laws and regulations governing Investment Advisor & the financial industry.
    • Investment Advisor shall act in a fiduciary capacity as one of the advisors to the Client with respect to managing its investment-related portfolio holistically & will be providing all back end supporting services. Investment Advisor shall act in a bonafide manner for the benefit and in the interest of the Client.
    • Investment Advisor shall offer non-exclusive, non-binding, non-recourse advice for investment in Securities and other financial products on the terms and conditions as mentioned-herein. This would include detailed risk profiling, goal planning, and/or recommendation of an investment plan. The final decision on the type of instruments; the proportion of exposure and tenure of the investments shall be taken by the Client at its discretion.
    • As part of the services, Investment Advisor offers free transaction execution and tracking facilities through the Glide Invest platform. Investment Advisor does not make it binding on you to avail Investment Advisory Services to avail of the transaction execution facilities through the Platform and that you have the option to use the Platform only for Investment Advisory Services.
    • Pursuant to the SEBI (INVESTMENT ADVISERS) REGULATIONS, 2013 guidelines with respect to Risk Profiling and Suitability Assessment, Investment Advisor shall conduct proper risk profiling and risk assessment for each of the clients. As per risk analysis, risk capacity, risk aversion & client requirement, the Investment Advisor needs to ensure that correct product/service as per client risk tolerance capacity is being offered and/or recommended, which is suitable for client.
    • Investment Advisor shall provide its Investment Advisory services to the client, which it feels is suitable to the client, after obtaining and analyzing all the required information as is necessary from the client Including Risk profile and Product Suitability and post completion of all KYC (Know Your client) and payment formalities. Such investment advise may or may not be in the nature of buying, selling or holding with respect to existing or new securities/investments products.
    • The algorithm/software offered by the Platform shall analyze your Investment Portfolios and/or recommend an Advisory Plan based on the information entered by you after the completion of the risk profile questionnaire. The analysis and/or recommendations provided by the Investment Advisory through the Platform will be in accordance with your investment objective and risk profiling. Nothing contained hereunder in this Agreement shall bind, or require you to rely on, or act on the contents of the recommendations.
    • Investment Advisor shall be in compliance with the SEBI (Investment Advisers) Regulations, 2013 and its amendments, rules, circulars and notifications.
    • Investment Advisor shall be in compliance with the eligibility criteria as specified under the IA Regulations at all times. Investment Advisor shall provide reports to clients on potential and current investments if requested.
    • Investment Advisor shall maintain client-wise KYC, advice, risk assessment, analysis reports of investment advice and suitability, terms and conditions document, rationale of advice, related books of accounts and a register containing list of clients along with dated investment advice in compliance with the SEBI (Investment Advisers) Regulations, 2013.
    • Investment Advisor shall get annual compliance audit conducted as per the SEBI (Investment Advisers) Regulations, 2013.
    • Client's relationship with Investment Advisor for rendering of the investment advisory services herein shall be subject, at all times, to the applicable laws. Investment Advisor may take or refrain from taking any action, as the case may be, and client shall do all things required by the Investment Advisor, to ensure compliance with applicable laws.
    • Investment Advisor undertakes to abide by the Code of Conduct as specified in the Third Schedule of the SEBI (Investment Advisers) Regulations, 2013. Investment Advisor shall not receive any consideration in any form, if the client desires to avail the services of intermediary recommended by Investment Advisor.
    • Investment Advisor is not into the business of tax planning and its management. Investment Advisor to the best of its abilities, may assist the client to familiarize it with the basic tax related understanding at the request of the client without owning any liability in this regard. Such services shall be purely for assistance and for no other purpose.
  • DUTIES & OBLIGATIONS OF THE CLIENT
    • Client will read all Offer Documents including the Scheme Information Document (SID), Key Information Memorandum (KIM) and Addenda for all the mutual fund schemes, including level of risk depicted by riskometer, that client invest in prior to investing.
    • Client shall provide true, accurate and adequate information as requested on the Glide Invest app/website. Client will notify the Investment Adviser promptly of any material change to the information provided by the Client to the Investment Adviser, including any change related to personal information. The Client understands and accepts that failure to do so may adversely affect the quality of the advice or recommendations.
    • Client will consider their specific investment requirements before choosing a fund or a goal-based portfolio.
    • Client will ensure that payments for any transactions are made through their own bank account number; no third party account will be used for payments and that any investments made are from legitimate sources.
    • Client shall not transmit or upload programs or materials on the Glide Invest app/website that contain malicious code, such as viruses, trojan horses, spyware, or other potentially harmful programs or other material or information.
    • Client hereby agrees and acknowledges that any advice provided to the Client pursuant to this Agreement, is exclusively for Client’s knowledge and use, subject to the extent otherwise permitted herein.
    • Client shall not disclose any advice provided by the Investment Advisory to him/her to any third party. Investment Advisor shall not be responsible for any losses that may be suffered by the client or such party as a result of the disclosure of such advice by the client.
    • The Client understands that the dependent family members shall be those members whose assets on which investment advisory is sought/provided, originate from income of a single entity i.e. earning individual client in the family. The Family of Client (wherever applicable) will be reckoned as single client. The Client agrees to provide declaration of independent family member to us at support@glideinvest.com.
    • The Client hereby agrees and acknowledges that the decisions of the Client, notwithstanding the Advisory Services rendered by the provider, and action or omission for financial plans and investment to buy, sell, hold or otherwise deal in the investment securities shall be based on Client’s own independent evaluation of the risks and rewards of the investments and Client’s own verification of all the relevant facts, including financial and other circumstances and a proper evaluation thereof.
    • Client will seek independent tax, accounting, legal and financial planning advice before making any investment transactions.
    • Client will raise queries, if any, by emailing the customer support team at support@glideinvest.com.
  • INVESTMENT OBJECTIVE AND GUIDELINES
    • Investment Advisor would provide investment advice with respect to investment in equity, mutual funds, insurance, commodities and other financial assets, as needed.
    • Investment Advisor undertakes to recommend direct implementation of advice i.e. through direct schemes/ direct codes, and other client specifications / restrictions on investments, if any.
    • Investment Advisor shall provide investment advice and/or recommendations based on the risk profiling conducted for the client, total budgeted investment amount of the client and time period for deployment as informed by the client.
    • Investment Advisor shall communicate the tax related aspects pertaining to investment advice and/or recommendations as applicable on the investment adviser’s fee, if any.
  • RISK FACTORS
    • Investments in securities are subject to market risks and there is no assurance or guarantee that the objective of the investments will be achieved;
    • Past performance of the investment adviser does not indicate its future performance.
    • The performance of the investments/products may be affected by changes in Government policies, general levels of interest rates and risks associated with trading volumes, liquidity and settlement systems in equity and debt markets.
    • Investments in the products which the Clients have opted are subject to wide range of risks which inter alia also include but not limited to economic slowdown, volatility & illiquidity of the stocks, poor corporate performance, economic policies, changes of Government and its policies, acts of God, acts of war, civil disturbance, sovereign action and /or such other acts/ circumstance beyond the control of Investment Advisor or any of its Associates.
    • The names of the products/nature of investments do not in any manner indicate their prospects or returns. The performance in the equity may be adversely affected by the performance of individual companies, changes in the market place and industry specific and macro-economic factors.
    • Investments in debt instruments and other fixed income securities are subject to default risk, liquidity risk and interest rate risk. Interest rate risk results from changes in demand and supply for money and other macroeconomic factors and creates price changes in the value of the debt instruments.
  • VALIDITY OF ADVISORY SERVICES
    • The validity of this agreement starts from the date of signing and will continue to be in force till any of the parties terminate it by giving 1 months’ notice period.
  • AMENDMENTS
    • The Investment Adviser and the client shall be entitled to make amendments to this agreement after mutual agreement. This Agreement may be amended or revised only by an instrument endorsed by the Client and by Investment Advisor.
  • TERMINATION
    • This Agreement may be terminated under the following circumstances, namely-
    • In case of a voluntary termination of the agreement, the client would be required to give a 30 days prior written notice while the Investment Adviser would be required to give a 30 days prior written notice.
    • In case of suspension of the certificate of registration of the IA, the client may terminate the agreement.
    • In case of breach of any condition by Client, the Investment Advisor reserve the right to terminate the agreement without any prior notice.