We are glad to have you in our association and are working with heart and soul to,deliver you the best and seamless system of operations. In our endeavor for the same,we have here under laid down our Risk Management System (RMS) Policy. You are requested to understand each and every aspect before commencing your trading.
1 EXPOSURE – INTRADAY As per NSE/BSE – VAR margin rates
2. EXPOSURE– DELIVERY 2 times of Deposit.
3 DERIVATIVES EXPOSURE As per SPAN + G.E. margin rates.
4 LIMITS BEYOND WHICH POSITION CARRY-OVER NOT PERMITTED
If MTM loss reaches 30% to 50% of Deposit during the day, then:
a. Account would be marked in square off mode, i.e. only existing open positions would be allowed to close and fresh bids would not be accepted.
b. (If time is > 3:00 PM) Open/leveraged positions would be squared off commensurate with the available deposit in account
5 INTRA-DAY SQUARE OFF
All trades executed in MIS product would besquared off daily at 3:20 PM. After this time, no trades will be permitted under MIS product.
6 MTM SQUARE OFF
If MTM loss reaches 85% of Deposit, all outstanding positions including client’s deliveries in our Beneficiary A/c will be squared off.
7 *CONVERSION OF Intra-day/MIS –- to --- Delivery/CNC or Carry over/NRML
Before daily square off of Intra-day/MIS trades at 3:20 PM, intra-day/MIS positions can be converted into delivery/CNC or Carry-over/NRML positions by a user based option. It is convertible to the extent of Deposit available in client’s account.
8 T+3 BASED DELIVERY SQUARE OFF
If the payment for deliveries bought, is not received within 3 days, then deliveries (by random choice) to the extent of shortfall in payment would be squared off and further buying would be blocked till additional payment is received.
Please note the following points carefully:
1. If any security(s) is/are not available in our Beneficiary Account, it has to be transferred to our DP A/c first only then limit to sell those would be granted.
2. Extra Leverage (for both intra-day and T+3) would only be allowed in approved securities as per our specified list updated from time to time.
3. If any deliveries bought on one day, are sold on next days (before the delivery actually comes from the Exchange), consequence of such shortage of delivery(s), if any, will be at sole risk of the client.
4. Trading in far-month contracts would be blocked by default. Special permission would have to be attained to permit it.
5. Trading in banned securities would be blocked by default.
6. Intra-day trading in ‘trade to trade segment’ would be blocked by default as per NSE rules.
7. Request for adjustment in exposures or other RMS permissions would be accepted through Branch -in-charge only.
8. *Clients are advised to conduct their product conversions before 3:10 PM to avoid last minute hassles.
Please feel free to enquire anything you have not been able to understand.
You may contact your branch-in-charge for best information.
Points to Remember
1. All Intra-day trade squared off at 3:20 PM.
2. All accounts that reach a loss level of 85% of their Deposit are squared off.
3. If loss level reaches more than 30% to 50% of Deposit, either exposures are reduced or account is squared off.
4. If debits are not cleared within three days of buying securities, those would be squared off.