Terms of Service

1) Availing the Research Services

i. By accepting delivery of the research service, the client acknowledges and agrees that they have voluntarily subscribed to the research services provided by Quantace Research and Capital Private Limited, based on their sole discretion and independent judgment.

ii. Quantace confirms that all research services are rendered in compliance with the applicable provisions of the SEBI (Research Analysts) Regulations, 2014, and any other relevant SEBI circulars or guidelines in force.

2) Obligations on the Research Analyst (RA)

i. Quantace and its clients shall be bound by the SEBI Act, 1992, and all applicable rules and regulations, including but not limited to:

• The SEBI (Research Analysts) Regulations, 2014
• The Prevention of Money Laundering Act, 2002 (PMLA)
• Relevant notifications, circulars, and guidelines issued by SEBI and the Government of India from time to time.

ii. Quantace shall ensure that:

• Research recommendations and reports adhere to SEBI-mandated disclosure and conflict of interest guidelines.
• All research activities remain independent and objective, as per the Segregation of Research Activities Policy.
• It maintains proper records of research, client communications, and investment rationale, as required by SEBI regulations.

iii. Clients must:

• Act in compliance with SEBI's Investor Charter when using Quantace's research services.
• Ensure that all investment decisions are based on their own discretion, and Quantace bears no liability for financial losses arising from investment actions based on research recommendations.
• Not engage in any activity that violates SEBI guidelines, including but not limited to market manipulation, insider trading, or unauthorized sharing of research reports and research ideas.

3) Client Information and KYC

i. Client's Responsibility: Clients must provide accurate, complete, and up-to-date Know Your Customer (KYC) details in the standard format prescribed by Quantace. Clients must submit all supporting documents as required by SEBI, RAASB, and the KYC Registration Agency (KRA). Any changes in KYC details (such as address, bank details, or contact information) must be promptly updated by the client with the KRA.

ii. KYC Verification and Storage: Quantace shall collect, verify, store, and periodically update KYC records as per SEBI (Research Analysts) Regulations, 2014, and Prevention of Money Laundering Act, 2002 (PMLA). Client KYC records will be uploaded and checked against KYC Registration Agency (KRA) databases to ensure compliance with SEBI requirements. The firm shall retain client KYC records for a minimum of five (5) years post-termination of the research service as mandated by SEBI.

iii. AML & Fraud Prevention Compliance: In compliance with Quantace's Anti-Money Laundering (AML) Policy, any transactions or client activities that appear suspicious, fraudulent, or non-compliant with SEBI regulations shall be reported to the Financial Intelligence Unit - India (FIU-IND) and relevant authorities. Quantace reserves the right to refuse or terminate services if a client fails to comply with KYC/AML requirements.

iv. Third-Party Verification & Due Diligence: Quantace may use external verification agencies to validate client KYC details. Quantace may request additional due diligence in cases of high-risk clients, such as entities with foreign ownership, politically exposed persons (PEPs), or those flagged under financial monitoring systems.

4) Standard Terms of Service and Client Consent

Client Consent: By subscribing to the research services provided by Quantace Research and Capital Private Limited (Quantace), the client acknowledges and agrees to the following terms:

“I / We have read and understood the terms and conditions applicable to a research analyst as defined under regulation 2(1)(u) of the SEBI (Research Analyst) Regulations, 2014, including the fee structure. I/We are subscribing to the research services for our own benefits and consumption, and any reliance placed on the research report provided by research analyst shall be as per our own judgement and assessment of the conclusions contained in the research report. I/We understand that –

• Any investment made based on the recommendations in the research report are subject to market risk.
• Recommendations in the research report do not provide any assurance of returns.
• There is no recourse to claim any losses incurred on the investments made based on the recommendations in the research report.”

Declaration by Quantace Research: Quantace Research and Capital Private Limited hereby declares the following:

i. "Quantace is duly registered with SEBI as a Research Analyst (RA) pursuant to the SEBI (Research Analysts) Regulations, 2014, with the following details:

ii. "Quantace meets all necessary qualifications and regulatory requirements to render the services contemplated under the SEBI (Research Analysts) Regulations, 2014, and its registration remains valid and in full compliance."

iii. "The research analyst services provided by Quantace do not conflict with or violate any provision of law, rule, regulation, contract, or any other applicable legal requirement."

iv. "The maximum fee that may be charged by Quantace is ₹1.51 lakhs per annum per family of clients, as prescribed under SEBI regulations."

v. "Quantace does not provide any assurance of returns , and past performance of securities or investment baskets does not indicate future performance."

5) Consideration and Mode of Payment

i. The client agrees to pay Quantace Research and Capital Private Limited ("Quantace") the fees for the research services rendered, along with any applicable statutory charges, as mutually agreed at the time of subscription.

ii. Quantace charges a maximum of ₹1.51 lakh per annum per family of clients, as mandated by the SEBI (Research Analysts) Regulations, 2014.

iii. Payments shall be made through the following approved channels:

• Bank Transfers: NEFT, IMPS, RTGS
• Digital Payments: UPI, Net Banking
• Payment Gateways & Centralized Fee Collection Mechanism (CeFCoM) (as prescribed by SEBI)

iv. Payments in cash or from third-party accounts are strictly prohibited.

v. Fees paid are Non-Refundable, except in the following cases, where refunds will be processed on a pro-rata basis for the unutilized period:

• If Quantace suspends services for more than 60 days (or)
• If SEBI cancels Quantace's registration.

vi. Upon successful payment, Quantace will issue a digital invoice/receipt to the client's registered email address.

vii. Fraud Prevention: Clients are advised to make payments only through authorized channels as listed above. Any unauthorized payment requests must be reported to Quantace immediately via support@quantace.in

6) Risk Factors

i. Investment in the securities market is subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BSE and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

ii. By subscribing to research services provided by Quantace Research and Capital Private Limited ("Quantace"), the client acknowledges and agrees to the following risk factors:

• Market Risks: The value of investments may fluctuate due to market conditions, economic changes, geopolitical events, and other factors beyond Quantace's control.
• Sectoral and Thematic Risks: Investments in specific sectors or thematic baskets are subject to risks associated with those sectors, such as regulatory changes, cyclical nature, or technological disruption.
• Liquidity Risks: Certain securities may have low liquidity, making it difficult to buy or sell them at the desired price or time.
• Volatility Risks: Securities markets may experience short-term volatility, which can impact the value of investments.
• No Assurance of Returns: Past performance of securities or investment baskets is not indicative of future results. Quantace does not provide any assurance or guarantee of returns.
• Economic and Political Risks: Macroeconomic factors, such as interest rates, inflation, and global market conditions, as well as political events, may influence investment outcomes.
• Client-Specific Risks: Investments made based on Quantace's recommendations may not align with the client's financial situation, risk appetite, or investment goals. Clients are advised to consult with their financial advisors before acting on recommendations.
• Regulatory Risks: Changes in laws, taxation policies, or SEBI regulations may impact the value and performance of securities.
• Technology Risks: Reliance on technology, such as algorithmic research and digital platforms, involves risks of system failures, cybersecurity threats, or errors in quantitative models.
• Force Majeure: Events such as natural disasters, pandemics, or other unforeseen circumstances may disrupt markets and impact investments.

7) Conflict of Interest

Quantace Research and Capital Private Limited ("Quantace") is committed to ensuring transparency and mitigating any actual or potential conflict of interest in its research services. As required by the SEBI (Research Analysts) Regulations, 2014, Quantace makes the following declarations:

i. Adherence to SEBI Guidelines: Quantace complies with all applicable SEBI regulations, circulars, and directions regarding the disclosure and mitigation of conflicts of interest.

ii. Mandatory Disclosures in Research Reports:Each research report issued by Quantace will include: (I) Financial Interests: Any financial interest that Quantace or its analysts have in the subject securities or entities (II)Beneficial Ownership: Disclosure of ownership exceeding 1% of the total issued capital of the subject company by Quantace or its employees. (III) Compensation Received: Declaration of any compensation received by Quantace or its affiliates from the subject company in the past 12 months. Analyst Independence: (I) Analysts preparing the research reports are prohibited from trading in securities they recommend within restricted periods defined by SEBI. (II)Analysts must disclose any material conflict of interest, including financial interests in securities they Recommend.

iii.Restrictions on Employees: Quantace employees are not allowed to accept gifts, benefits, or remuneration from companies covered in research reports that may compromise their independence.

iv.Segregation of Activities: To maintain the independence of research activities, Quantace adheres to a Segregation of Research Activities Policy , ensuring that research functions are conducted independently of sales, marketing, or advisory services.

v.Client Communication: Recommendations provided to clients are based solely on quantitative models and data analysis, free from subjective or external influences.

vi.Updated Policy: A comprehensive statement of disclosures, including conflicts of interest, is available herehere

8) Termination of Service and Refund of Fees

i.Right to Suspend or Terminate Services:Quantace Research and Capital Private Limited ("Quantace") reserves the right to suspend or terminate research services in the following circumstances:

• Suspension of Quantace's SEBI registration for any reason.
• Cancellation of Quantace's SEBI registration.
• Non-compliance by the client with the terms and conditions outlined in this document.

ii. Refund of Fees in Case of SEBI Actions: In the event of suspension of Quantace's SEBI registration for more than 60 (sixty) days, or cancellation of its registration , Quantace shall: Refund the unutilized portion of the subscription fees on a pro-rata basis for the period starting from the effective date of suspension or cancellation until the end of the subscription period.

iii. Notification to Clients: Quantace will notify clients of any suspension or cancellation of registration within 7 (seven) working days from the effective date of such regulatory action.

iv.Process for Refund: Refunds will be initiated automatically to the client's registered bank account or original payment method. Refunds will be processed within 90 working days from the date of suspension or cancellation notification.

v.No Refund in Other Circumstances: Subscription fees paid are Non-Refundable under any circumstances other than those explicitly mentioned above.

9) Grievance Redressal and Dispute Resolution

i. Scope of Grievances: Clients may escalate grievances related to: (I) Non-receipt of research reports. (II) Missing pages or inability to download the entire report. (III) Any other deficiency in the research services provided by Quantace Research and Capital Private Limited ("Quantace").

ii. Grievance Escalation Process: Clients must report grievances promptly to the designated Grievance Officer: Name: Karthick Jonagadla, Email: grievances@quantace.in and Phone: 9619927668.

iii. Resolution Timelines: Quantace shall address and resolve grievances within 7 (seven) business working days from the date of receipt of the grievance. If resolution requires additional time, Quantace will inform the client of the delay and provide a revised timeline, as permitted by SEBI regulations.

iv. Transparency and Record Maintenance: All grievances and their resolutions will be recorded and retained for a minimum of 5 (five) years, in compliance with SEBI regulations.

v. Escalation to SEBI: If the client is dissatisfied with the resolution provided by Quantace, they may escalate the grievance to SEBI using the SCORES (SEBI Complaints Redress System) portal.

vi. Dispute Resolution Mechanism: Any disputes between Quantace and the client shall be resolved through one of the following mechanisms: Arbitration, in accordance with the applicable laws of India. Any other dispute resolution mechanism as specified by SEBI from time to time.

vii. Clients may also contact the Compliance Officer for further assistance: Name: Shubhada Patil. Email: compliance@quantace.in and Phone: 9930099424.

10) Additional Clauses

i. Voluntary Clauses: Quantace Research and Capital Private Limited ("Quantace") may include additional voluntary clauses in these Terms of Service, provided such clauses: (i) Adhere to the rules, regulations, and circulars issued by SEBI. (ii) Do not contravene any applicable laws or regulatory guidelines.

ii. Notice for Changes: Any amendments, updates, or additions to these voluntary clauses shall be preceded by a 15-day prior notice to clients, communicated via their registered email or other official communication channels.

iii. Binding Nature: All voluntary clauses are an integral part of these Terms of Service and shall be binding upon all clients.

11) Mandatory Notice

Clients are strongly advised to review the Do's and Don'ts while dealing with a Research Analyst (RA) as specified by the Securities and Exchange Board of India (SEBI). The guidelines are outlined in SEBI Master Circular No. SEBI/HO/MIRSD-POD-1/P/CIR/2024/49, dated May 21, 2024, or any subsequent circulars or amendments issued by SEBI from time to time.

12) Optional Centralised Fee Collection Mechanism (CeFCoM)

Quantace Research and Capital Private Limited ("Quantace") will provide guidance to its clients on the optional Centralised Fee Collection Mechanism (CeFCoM) , introduced by SEBI, for secure and transparent payment of fees to Research Analysts (RA) and Investment Advisors (IA).

13) Usage of AI

i. Integration of AI in Research: Quantace Research and Capital Private Limited ("Quantace") employs advanced Artificial Intelligence (AI) technologies to enhance its research capabilities. The AI-driven research models include: (I) Quantitative Models: Leveraging mathematical and statistical techniques to analyze market trends and investment opportunities. (II) Statistical Models: Utilizing probability-based analyses to predict patterns and correlations (III) Machine Learning Models: Applying predictive algorithms to identify actionable insights based on historical data.

ii. Limitations of AI Models: AI models are reliant on historical data and may have limitations in adapting to sudden or unforeseen market anomalies. Performance outcomes from AI-generated insights are subject to the quality and completeness of the underlying data. AI tools cannot predict or account for macroeconomic events, regulatory changes, or geopolitical disruptions.

iii. Continuous Improvement: AI models are regularly updated to incorporate new data, address limitations, and enhance their predictive accuracy. Quantace monitors and reviews AI-driven outputs to ensure alignment with client expectations and regulatory compliance.

iv. Client Awareness:Clients are encouraged to understand the inherent limitations of AI models before relying on them for investment decisions.

14) Acknowledgement

i. By proceeding, you understand that investments are subject to market risks and agree that returns shown on the platform were not used as an advertisement, claim, back-testing, or promotion to influence your investment decisions.

ii. Registration granted by SEBI, membership of BSE, and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

15) Communication Protocol

Recommendations are shared exclusively via registered email. Clients should act only on recommendations received from official Quantace channels. There is a possibility of communication failures via electronic means such as E-mail, which may be beyond our control.

16) Multi-Strategy Research and Market Perspectives

i. Reports based on Technical, Quantitative and Derivative analysis centre on studying charts company's price movement, outstanding positions and trading volume, as opposed to focusing on a company's Fundamentals and, as such, may not match with a report on a Company's Fundamental analysis.

ii. We cater to diverse investor needs by employing multiple strategies within our internal systems. Due to variations in analytical models and methodologies, our views on specific stocks, sectors, or broader markets may sometimes differ or appear contrary across different reports or strategies. These variations are inherent to our multi-strategy approach and do not imply inconsistencies but rather reflect different perspectives on market dynamics.

17) Governing Law and Jurisdiction

These Terms of Service are governed by the laws of India. Any disputes will be subject to the exclusive jurisdiction of courts in Mumbai.

18) Most Important Terms and Conditions (MITC)

i. Standardized Industry Terms: Quantace Research and Capital Private Limited ("Quantace") adheres to the Most Important Terms and Conditions (MITC) as standardized by the Industry Standards Forum (ISF) in consultation with SEBI and the Research Analyst Administrative and Supervisory Body (RAASB).

ii. Mandatory Disclosure: As part of these MITC, Quantace includes the following disclosure: “The terms and conditions and the consent thereon are for the research services provided by the Research Analyst (RA), and the RA cannot execute or carry out any trade (purchase/sell transaction) on behalf of the client. Thus, you are advised not to permit the RA to execute any trade on your behalf.”

iii. Client Awareness: Clients must ensure that: (i) All decisions to act on recommendations are made independently. (ii) Quantace operates solely as a Research Analyst and does not provide any trade execution.

iv. Updates: Any updates to the MITC prescribed by SEBI or ISF will be promptly communicated to clients via their registered email or published here.

For Quantace Research and Capital Private Ltd

Karthick Jonagadla

Managing Director