RISK MANAGEMENT POLICY
FOR CASH, F& O AND CURRENCY & COMMODITY SEGMENT

For Online Platform

The new policy includes the following aspects.

Broad Parameters for Limit Setting

(A) Limit Setting

(B) Collateral Value

“A”        is total balance of client ledger account in all securities market segment viz. NSE Cash, BSE Cash, NSE F&O, NSE CD, BSE F&O and BSE CD etc. If there is a debit balance the value will be negative.

“B”        is 75% value of all eligible securities as per Annexure A held by client either in his\her pledge account only.  Securities lying in collateral account or client beneficiary account as Margin.

“C”       is 75% of the value of eligible securities sold by the client on T-1 day or T-2 day which are not delivered to Exchange in pay-in or early pay-in and lying in pledge account.

Comments:         

  1. As per my understanding (this will have to be confirmed with RMS Team) the ledger balance on 03.02.2021 is considered after reducing the bill for trade date 01.02.2021 which is posted on 03.02.2021. However, the value of shares purchased is not considered till they are received in pay-out.
  2. On 04.02.2021, the ledger balance at the BOD is considered plus value of shares purchased on 01.02.2021 and received on 03.02.2021, only if the same are not transferred to client’s demat account due to debit balance. In such case, the value of shares are considered post haircut as applicable.
  3. The unpaid shares cannot be retained by Stock Broker beyond T+2+4 days. The Broker will have to sell it on T+2+5th day if not paid by the client or sold by client.

 Intraday: Cash Segments.

Eligibility of this criteria upto..

 Intraday: F&O, Currency & Commodities Segment.

Eligibility of this criteria upto..

 Option: Equity\Currency\Commodity..

Constrain:

 Monitoring of overnight open positions and rules for squaring off

 In any circumstances, clients is not allowed to carryforward his\her position beyond one time in any segment.

Our RMS Team will, at the end of trading session, prepare a Risk Report which will track value of the collaterals and compare it with the debit balances in all segments ledger and margin utilisation of the client. If any violation of limits noticed by them, clients has to reduce the position next day and no leverage will be given on account of that.

VI        Terms & Conditions  

General Conditions for availability of Securities

VII       Discontinuation of Leverage policies

 In times of extreme volatility or major impeding event which might trigger such volatility, the management reserves right to withdraw the same. Decision of the management in this respect shall be final. The company may modify or amend any of these rules without prior notice.

 Comments: The entire leverage issue for very short period till 1st March needs to be calibrated after discussion amongst RMS and COO. Otherwise no change warranted.