banner-logo

Disclaimer

  • Mutual Fund Order Execution
  • The following are the important disclaimers, terms and conditions vis-à-vis mutual funds on SmartWealth (“Specific Terms and Conditions” or “Specific T&Cs”).

  • 1. Definitions & Interpretation

  • 1.1 Definitions: Capitalised terms not defined here, shall have the same meaning as given in the Terms and Conditions. 

  • “Account(s)” or “SmartWealth Account(s)” means the user account(s) opened or a user profile created by the customer on SmartWealth to avail the services offered therein.

  • “Affiliates” means any subsidiary, related corporation, parent company, office, representative office, associated company of HDFC Bank, and includes their respective successors and assigns. 

  • “Applicable Law” or “Applicable Laws” means to the extent applicable, all laws, rules, regulations, notices, circulars, codes and guidelines of any regulatory, supervisory, governmental, quasi-governmental, legislative or other authority or body or exchange or clearing house, in each case as supplemented and amended from time to time.

  • ‘Asset Management Company’ or ‘AMC’ means the Asset Management Company whose Mutual Fund Units are distributed by HDFC Bank to the clients.

  • ‘AMFI’ means the Association of Mutual Funds in India. 

  • “FATCA” means:

  • Sections 1471 to 1474 of the Code ("Code" means the U.S. Internal Revenue Code of 1986) or any associated regulations;

  • any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction, which (in either case) facilitates the implementation of any law or regulation referred to in sub-clause (a) above; or

  • any agreement pursuant to the implementation of any treaty, law or regulation referred to in sub-clause (a) or (b) above with the US Internal Revenue Service, the US government or any governmental or taxation authority in any other jurisdiction.

  • “HDFC Group” means HDFC Bank, its group companies and its Affiliates. 

  • “Liquid Fund” shall have the same meaning ascribed to the term in SEBI Master Circular for Mutual Funds, 2024 (as may be amended, supplemented, modified or substituted from time to time). 

  • ‘Mutual Fund’ or ‘MF’ means, a trust set up under the provisions of the Indian Trusts Act, 1882 and registered with SEBI under SEBI (Mutual Funds) Regulations, 1996.

  • “Overnight Fund” shall have the same meaning ascribed to the term in SEBI Master Circular for Mutual Funds, 2024 (as may be amended, supplemented, modified or substituted from time to time).

  • “PMLA” means Prevention of Money Laundering Act, 2002.

  • ‘Registrar’ or “Registrar and Transfer Agent” or “RTA” means any person or entity appointed by the AMC and/or its trustees to manage all aspects of or related to investor servicing for the Scheme(s) of the Mutual Fund.

  • “Representatives” means the employees, officers, directors, representative, advisors, successors and assigns of HDFC Group. 

  • ‘Scheme’ means any scheme formulated and floated by the Mutual Fund from time to time and shall mean each individual scheme of the Mutual Fund and the provisions hereof shall apply to each scheme individually.

  • “SmartWealth” means the digital online platform/ application/website offered by HDFC Bank to manage investments, savings, and financial objectives.

  • ‘SEBI’ means the Securities and Exchange Board of India.

  • “Terms and Conditions” means the terms and conditions entered into by the customer of SmartWealth at the time of onboarding. 

  • “UIDAI” means Unique Identification Authority of India.

  • 1.2. Interpretation 

  • Words denoting the singular will include the plural and vice versa. 

  • Capitalized terms used but not defined herein shall have the same meaning as assigned to them in the Terms and Conditions.

  • The headings in the T&Cs are inserted for convenience of reference only and are to be ignored in construing and interpreting the T&Cs.

  • A gender shall include references to the female, male and neutral genders.

  • 2. General Disclaimers

  • I/We have read and understood the disclaimers set out below: As per the AMFI best practices all financial and/or non-financial transactions would be processed by the AMC/RTAs only for those customers (including existing customers) whose ‘know your customer’ (KYC) status is KYC Verified - Registered KYC. Kindly ensure your Permanent Account Number (PAN) is KYC Compliant to avoid any transaction rejections.

  • As per SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2020/175 dated September 17, 2020 read with circular no. SEBI/HO/IMD/DF2/CIR/P/2020/253 dated December 31, 2020, effective from February 1, 2021, in respect of purchase of units of mutual fund schemes (except liquid and overnight schemes), closing net asset value (NAV) of the day shall be applicable on which the funds are available for utilization irrespective of the size and time of receipt of such application. 

  • (The above rule is already applicable for purchase transactions under Liquid Funds and Overnight Funds).
  • "Cut-off time" refers to the latest time on any business day by which a transaction, instruction, or request can be processed on that same day.
  • For online mutual fund transactions made through SmartWealth, the standard Cut-off time is as follows*; 

    Type of Schemes  Transaction type  Cut-off timings 
    Liquid Funds   Subscription (including switch-in from other schemes)   12:30 p.m 
      Redemption (including switch-in from other schemes)  02:00 p.m 
    Overnight Funds  Subscription (including switch-in from other schemes)  06:00 p.m 
      Redemption (including switch-in from other schemes)  02:00 p.m 
    All other schemes 
    (other than Liquid Funds 
    / Overnight Funds)     		 Subscription (including Switch-in from other schemes)   12:30 p.m 
      Redemption (including switch-in from other schemes)  02:00 p.m

 

  • *These timings are subject to changes that may be brought in by SEBI from time to time.  
  • All transactions and instructions are subject to applicable regulations and fund house guidelines. 
  • As per regulatory requirement, each investor/ holder is required to be KYC compliant and provide extended KYC details. In absence of the same, transactions may get rejected by AMC/RTA.   
  • With effect from 1st October 2015, HDFC Bank has "Opted-out" for transaction charge.  
  • I/We may opt-in or opt-out from making a nomination for the mutual fund investments made by me/us. 
  • In terms of the instructions issued by Ministry of Finance, Government of India, with effect from April 30, 2017, all FATCA non-compliant MF folios (opened during the period July 01, 2014 to August 31, 2015) would be blocked for all types of commercial as well as non-commercial transactions. In case I/we or joint holders have not yet updated my/our “Extended KYC (FATCA)" details, kindly update the same from NetBanking website or submit the physical Extended KYC (FATCA) documents at my/our nearest HDFC Bank branch. 
  • From SmartWealth, client can complete FATCA registration if same is unavailable while onboarding. 
  • W.e.f. January 1,2016 any subscription whether fresh, additional investment, or switch shall not be permitted by the AMCs if the KYC status of PAN for Mutual Funds is not updated as "KYC Registered-New KYC". 
  • The investors who have completed KYC formalities prior to January 01, 2012, vide SEBI circular no. MIRSD/Cir-5/2012 dated April 13th, 2012, are advised to update KYC records by filling 'KYC Details Change Form'. Non-updation of records will lead to rejection of transactions. To access the form and instructions please click on the below links. 
  • https://camskra.com/ 
  • https://www.cvlkra.com/ 
  • Unitholders have been allowed unfettered and unrestricted access to transact at AMC/ RTA. HDFC bank shall thus neither be liable for any mismatch in details with the AMCs/RTA nor to any rejection of transaction thereafter or delay in processing which results in me/us not getting the same day NAV. 
  • I/We may quote the Employee Unique Identification Number (EUIN) in the applicable transaction forms at my/our sole discretion where assistance is provided by any employee/relationship manager/salesperson of HDFC Bank.  If the EUIN is quoted, it may be assumed that it has been done at my/our freewill. I/We hereby irrevocably waive and agree not to dispute, contest or challenge, now or at any time in the future, the inclusion, or use of such EUIN, and shall not at any time allege that its inclusion was by coercion. 
  • 3. Additional Terms and Conditions 
  • I/We confirm that the AMFI registration number (ARN) holder, being HDFC Bank Limited (AMFI Registered Mutual Funds Distributor) has disclosed to me/us all the commissions (in the form of trail commission or any other mode), payable to it for the different competing Schemes of various Mutual Funds from amongst which the Scheme is being recommended to me/us. In case of any queries / requirement to know the latest fees and charge, I/we understand that the same can be done by visiting the website 
  • (https://www.hdfcbank.com/personal/invest/mutual-funds/commissions-on-mutual-funds). 
  • I/We understand that in terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load (Entry load is the commission that an investor has to pay while purchasing units of a mutual fund.)  will be charged by the Scheme to the investor, effective from August 1, 2009. Upfront commission shall be paid directly by the investor to the AMFI registered distributors based on the investors’ assessment of various factors including the service rendered by the distributor. 
  • I/We hereby confirm that the transaction undertaken by me/us in SmartWealth is an ‘execution only’ transaction and HDFC Bank has not provided any advice, and I/we confirm and acknowledge that HDFC Bank has not advised in relation to appropriateness of the transaction and all investment decisions taken by the customer is independent. 
  • I/ We understand the inherent risks in investments in mutual funds that I/we am/are investing in and in my own assessment, I/we find that this investment is suitable for me considering my investment profile. I/We understand that mutual funds investments are subject to market risks and returns from such investments could be volatile and there exists possibility of capital erosion also. I/We would like to go ahead with the investments in mutual funds. I/We have read and understood the relevant scheme related documents carefully before investing. 
  • I/We would visit https://www.hdfcbank.com/personal/invest/mutual-funds/commissions-on-mutual-funds in case if I/we need to understand any commission paid / payable details to HDFC Bank. 
  • 4. Authorisation  
  • I/We agree and understand that this authorisation is voluntary. However, the same is required to be executed by me/us in order to avail of seamless investment platform with integrated bank account, demat account and this SmartWealth. This authorisation and instruction are being issued by me/us in furtherance of, pursuant to and forms an integral part of and supplements the Specific T&Cs. If you do not wish to use the services of HDFC Bank Limited, you need not provide this authorisation.) 
  • I/We hereby voluntarily appoint HDFC Bank Limited. ("HDFC Bank") to purchase, sell, subscribe, or redeem mutual funds on my/our behalf, and to receive the payment of the redemption/sale price and acknowledge receipt of the same as may be instructed by me/us from time to time, on the Specific T&Cs mentioned herein. I/We agree that HDFC Bank may at its sole discretion vary the Specific T&Cs or withdraw any of the facilities provided herein from time to time.  
  • I/We authorise HDFC Bank to execute my /our instructions with regards to purchase or redemption of the units. 
  • To appoint on my/our behalf any agents /nominees/sub-custodian/ trustees or any other service provider as HDFC Bank may deem appropriate for facilitating the services or transactions authorised herein; 
  • To sign all such writings and do all such acts as may be required for redeeming any units/securities; 
  • To collect, receive and give good effectual receipts and discharges for any sum including dividend, interest or income arising from the units/securities and to sign and endorse dividend and interest warrants; 
  • To collect and deposit monies in an account opened in my/our name with HDFC Bank and to make such debits in the said account as may be necessary; 
  • To correspond with and give notice to the mutual fund and corresponding asset management company on my/our behalf; 
  • To instruct the mutual fund and/or the corresponding asset management company to make note of instructions with regards to nomination /changes in investment plan/any other changes. 
  • I/We agree and understand that the transaction rights will be pursuant to the customer executing and granting a mandate in favour of HDFC Bank, in the manner and form as prescribed by HDFC Bank from time to time. A mandate will be applicable to all SmartWealth Accounts whether presently existing or to be opened in future. 
  • With respect to recent SEBI circular which requires 2FA (two-factor authentication), all orders will be authenticated via OTP (one time password) mechanism. 
  • 5. Purchase/Sale / Switch (Including SIP, STP & SWP) 
  • I/We hereby agree and understand that only the transaction instructions received from registered customers of SmartWealth Account would be processed. Only the registered customers can purchase, redeem and switch Mutual Fund units through SmartWealth. 
  • I/We hereby understand that there may be an entry and/or exit load in Mutual Fund schemes, which are mentioned in the offer document of the respective Mutual Fund schemes. I/We shall check, read and understand the same before investing. 
  • I/We hereby agree and understand that investments from residents in the United States of America (US) and Canada are not permitted in certain mutual funds. HDFC Bank (AMFI Registered Mutual Funds Distributor) shall not be liable for rejections of such applications by Asset Management Companies/Mutual Funds, where investor is a resident, domicile or citizen of US and Canada or any sanctioned countries.  
  • I/We agree and understand that purchase instructions shall be processed only after funds sufficient to cover the purchase price and other costs and charges have been received by HDFC Bank. 
  • If for any reasons HDFC Bank is unable to purchase or redeem the full quantity of units such as instructed by me/us, HDFC Bank shall be entitled at its discretion and I/We hereby irrevocably authorise HDFC Bank to purchase or sell (as the case may be) a lesser quantity of units/securities. HDFC Bank shall not be responsible for the non-execution of my/our instruction for the entire quantity or the remaining quantity. 
  • I/We understand that HDFC Bank has currently tied up with majority of the mutual funds and the same has been made available on this platform. In the event I/we am/are interested in a mutual fund scheme that is not available and  I/we am/are interested in making investments in such mutual fund schemes, I/we am/are advised to visit my/our nearest HDFC Bank branch or the relevant mutual fund’s website. 
  •  I/We agree and understand HDFC Bank shall not be liable for any loss that may arise to me/us as a result of the incorrect NAV (Net Asset Value). (For informational purpose, NAV is a mutual fund's price per share or exchange-traded fund's (ETF) per-share value. In both cases, the per-share amount of the fund is calculated by dividing the total value of all the securities in its portfolio, less any liabilities, by the number of fund shares outstanding, applied on units allotted to me/us by the mutual fund. NAV related information and calculations can be obtained from the website of the respective mutual fund. NAV related information of the respective mutual funds will be available on SEBI website.) 
  • I/We understand that execution through SmartWealth Account will be initiated with instant debit hence I/we am/are to check scheme details/business days & Cut-off time before initiating a transaction. 
  • In case a customer wishes to change HDFC Bank as his distributor or wishes to go direct, Asset Management Companies/Mutual Funds shall ensure compliance with the instruction of the customer informing his/ her desire to change his distributor and / or go direct. The investor must not be required to obtain a ‘No Objection Certificate’ from HDFC Bank. 
  • 6. Communication of Instructions 
  • I/We understand and agree that;  
  • If there are multiple holders, only the first holder may give instructions (including amendments to this clause), and such instructions shall be binding on all holders. I/We the second and the third holders irrevocably constitute the first holder above as my/our agent. All instructions given by the first holder above shall be binding on both/all as if given by each of us personally. 
  • If there is only one holder, that holder shall have full authority to give instructions (including any modifications to this clause), and such instructions shall be binding on themselves. 
  • I/We agree that all instructions given by the first (or sole) holder—whether for purchase of units in their sole name —shall be treated as if given individually by each holder concerned, and HDFC Bank is fully authorized to act upon such instructions given from time to time.  
  • Subject to Applicable Laws, the instructions for purchase or redemption of the units may be given through SmartWealth, or in any other manner as may be acceptable to HDFC Bank. 
  • I/We agree and acknowledge that units purchased by giving instructions through any of the above modes will be instructed for redemption through any of the above medium only. 
  • I/We acknowledge that after the first purchase transaction in any Mutual Fund, I/We may not be permitted to transact, for switch and redemption, for a period of 4 to 7 business days till the portfolio number is allotted, depending upon the processing time of the Mutual Fund's RTA. HDFC Bank does not accept any liability for delay in processing time at the Mutual Fund's or RTA’s end. 
  • I/We agree that HDFC Bank may refuse to act on any instruction unless they are given in a manner and form acceptable to HDFC Bank. Further, HDFC Bank shall have no responsibility to determine the authenticity of any instruction given or purported to be given by me/us. I/We shall not hold HDFC Bank liable on account of HDFC Bank acting in good faith on any of my/our instructions. 
  • I/ We agree and acknowledge that HDFC Bank may at its sole discretion not carry out my/our instructions where HDFC Bank has reasons to believe (which decision of HDFC Bank I/We shall not question or dispute) that the instructions are not genuine or are otherwise improper or unclear or gives rise to uncertainty. HDFC Bank shall not, be liable if any instructions are not carried out for any reasons whatsoever. 
  • I/We clearly agree that HDFC Bank needs to receive clear instructions from me/us to induce HDFC Bank to effect fund transfer activities on behalf of me/us. I/We agree to indemnify and keep indemnified at all time HDFC Group and its Representatives, (“Indemnified Parties”) against any loss on account of improper/fraudulent fund transfer instruction purported to be received from me/us. HDFC Bank shall not be obliged to accept from me/us any oral or facsimile instructions. In order to, however, induce HDFC Bank to act upon communications and instructions transmitted by manual procedures (facsimile, mail, messenger, telephone call centre). I/We hereby irrevocably agree that, as long as HDFC Bank acts in compliance with such authorisation / instruction, HDFC Bank shall be indemnified for and held free and harmless from and against any and all responsibility for, any and all costs, claims (existing and future), third party claims, losses or liabilities of any nature (direct or indirect) resulting from any act or omission (or any delay) in acting upon the instructions to transfer or purchase, sell or otherwise dispose of commodities or securities, together with any and all attendant costs and expenses including HDFC Bank’s actual legal fees and expenses, collectively referred to as “Losses”. I/We also acknowledge that the security and the control procedures provided by HDFC Bank are designed to verify the source of the communication and not to detect errors in transmission or content including discrepancies between names and account numbers and that HDFC Bank, or any intermediary, may execute an instruction by reference account number only, even if the name on the account is also provided. Nothing contained herein shall require HDFC Bank to violate any Applicable Laws, rules or the procedures/instructions. HDFC Bank shall have no further duty to verify the content of any instruction and communications, whether or not authorised, sent in its name and accepted by HDFC Bank. HDFC Bank will process the transaction instruction as it is received and will not validate the same for holdings, correctness of transaction and any other information. 
  • 7. Miscellaneous  
  • I/We hereby undertake that the information provided by me/us in regard to the KYC is true.  
  • I/We hereby agree and acknowledge that I/we am/are requested to check the personal and bank related details provided by me/us. Neither HDFC Bank nor any of the Asset Management Companies/Mutual Funds chosen shall accept any liability which may arise as a consequence of the erroneous information provided by me/us. For change of address or any personal details,  I/we shall send an e-mail to SmartWealth support team signed by all the co-holders (if applicable) or convey the same as instructed by HDFC Bank from time to time. 
  • I/We hereby agree and acknowledge that neither HDFC Bank, nor any of the Asset Management Companies/ Mutual Funds shall be liable for any failure to perform its obligations, to the extent that such performance has been delayed, hindered or prevented any Force Majeure Event, and in such case its obligations shall be suspended for so long as the Force Majeure Event continues. 
  • I/We understand that HDFC Bank does not advise to invest in any asset class or any specific schemes, hence it is important that investor himself/ herself has to find out suitable investment scheme / option after study of offer/related document. There are no assurances or guarantees that the objectives of any of trading/ investment in Mutual Funds will be achieved.  
  • I/We understand that the investments referred to herein may not be suitable to all categories of traders/investors and that investors should read and understand the content of the scheme information documents (SID)/ key information memorandum (KIM) and statement of additional information (SAI) of the schemes in which he/she is investing / switching/making redemption. 
  • I/We agree and acknowledge that HDFC Bank shall have the right to modify the Specific T&Cs to meet its revised operational procedures or any regulatory requirements arising out of circulars, regulations, notifications etc issued by SEBI, Asset Management Companies, Mutual Funds, AMFI, etc., having any bearing on the mutual fund transactions. HDFC Bank may also at its absolute and sole discretion amend or supplement any of the Specific T&Cs at any time and notify the same on its website as and when such amendments are effected. 
  • I/We agree and acknowledge that any matter/dispute with respect to nomination and deceased claims with respect to mutual fund units shall be settled by me/us directly with concerned depository participant/ Asset Management Companies / Mutual Fund without any reference to HDFC Bank. 
  • I/We agree and consent to utilize, share my/our KYC information and documents such as identity (name, PAN, age, Aadhaar details etc.), address in HDFC Bank’s records for sending it to Asset Management Companies  / Registrar and Transfer Agents of the AMCs/ insurance company / other investment products’ services providers or any other party related to the transaction, along with other KYC details for the purpose of facilitating transactions based on my/our instructions and use it in the manner consistent with the Specific T&Cs and applicable regulatory requirements as applicable from time to time. 
  • I/We undertake to keep HDFC Bank informed of at all times, of any change/ alteration in particulars furnished to HDFC Bank and authorise HDFC Bank to update any change /alteration in particulars that HDFC Bank may be informed of by me/us and/or is brought to the notice of HDFC Bank and I/we hereby authorise HDFC Bank to contact me/us on such changed/altered particulars. I/We shall be solely responsible to ensure that HDFC Bank has been informed of the correct particulars for communication. I/We agree to indemnify and keep indemnified at all time the Indemnified Parties against any and all losses, claims, third party claims, costs and expenses (including without limitation attorney’s fees and expenses), liabilities, demands, legal proceedings or damages suffered by the Indemnified Parties due to (i) my/our omission to provide correct information or (ii) provision of incorrect particulars or (iii) my/our failure to notify any change in my/our particulars. 
  • I/We agree and acknowledge that HDFC Bank shall have no liability if it does not or is unable to stop or prevent the implementation of an instruction, which is subsequently countermanded. 
  •  I/We agree and acknowledge that where HDFC Bank considers the instructions to be inconsistent or contradictory it may seek clarification from me/us before acting on it or act upon any such instruction as it deems fit. 
  •  I/We agree and acknowledge that HDFC Bank shall have no liability or obligation to keep a record of the instructions to provide information to me/us or for verifying my/our instructions. 
  • I/We agree and acknowledge that any tax implications arising out of any transactions entered in to pursuant to these terms & conditions would be as per the provisions of the Income Tax Act, 1961, or any modification or re-enactment thereof. I/We further agree and declare that any and all tax liability will be my/our sole responsibility. I/We shall execute and deliver to HDFC Bank, from time to time such other documents as may be specified by HDFC Bank for compliance or updating of records if any. I/We have read and understood the terms & conditions and including those excluding / limiting HDFC Bank’s liability. 
  • I/We agree to not hold HDFC Group and its Representatives liable for any losses, claims (existing and future), legal proceedings, actions, demands, risks, charges, taxes, duties, damages, costs, expenses (including without limitation attorney’s fees and expenses), liabilities, suits, counter claim, third party claims, etc. arising on account of delays in putting forth the execution of instructions issued by me/us or on account of material discrepancies in the instruction or for any other reason beyond the control of HDFC Bank or its Affiliates/associates/group companies/subsidiaries.  
  • I/We agree and acknowledge that once a valid transaction has been sent to RTA, HDFC Bank is not responsible in any manner for the execution of the transaction. 
  • I/We agree and acknowledge that SmartWealth contains a variety of information and content, including but not limited to copyrighted material, such as information, text, directories, graphics, photographs, illustrations, images, video and audio clips, sound clips, advertising and promotional materials, data, software, compilations, designs, graphical interface, and overall "look and feel" trademarks, logos, trade names, service marks, and trade identities, whether registered or unregistered, and other forms of information and intellectual property (all of the foregoing collectively and individually are referred to as "Content"). The rights to the Content vest with HDFC Group. I/We agree not to copy, forward, download or share content without obtaining the necessary rights or prior written permissions to do so.