Idea Transcript
JUST TRADE SECURITIES LIMITED SERVICES LIMITED
RISK MANAGEMENT MANUAL
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Risk Management Cell – Just Trade Securities Limited Introduction Just Trade Securities Limited (Trade name-Just Trade) is a Trading and Self Clearing Member (TCM) in Capital Market & Future & Option segment of National Stock Exchange of India Limited. Just Trade is a leading stock broking outfit in the country providing an efficient trading platform for on- line (e-broking) & off-line (CTCL based) stock broking to its retail and institutional clients through its offices spread across the country or through Internet across the globe.
Trading Network & setup Just Trade has two different trading set ups for its e-broking & CTCL based stock broking business. The e-broking products are marketed by the company with the name & style of Just Trade On Line where as the CTCL based products are marketed with the name of Just Trade Off Line. At present, the major volumes of Just Trade stock broking business take place through its CTCL based trading network.
Just Trade Online (e-Broking) Just Trade Online is a fully automated trading platform for seamless on line trading. The trading software has been provided & maintained by M/s Religare Technova Limited, Bangalore. Just Trade Online application access to the clients is available through internet and it is for those clients who wish to trade at their own as per their convenience. These applications are browser based. Therefore, this platform can be accessed via home/office/cyber-café from any where across the globe.
Operation & Settlement The activities related to settlement of funds & securities are performed by the BO software namely Lidha Didha (LD), provided & maintained by M/s Apex Softcell Pvt. Ltd. Mumbai , which at present, is considered as one of the best software available in this industry for this purpose. All back office related activities like client registration, account opening, settlement of funds & securities including maintenance of financial ledger of the client, issuance of contract notes etc. are taken care by the BOS. The branches have also been given access of BOS to view the required details of all their clients. All the required reports/ information are generated by the BOS and made available to concerned persons. Further the clients & branches of the JT can also have access to their BOS related information through the website of JT by using the user id & password given to them for this purpose.
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Risk Management System Need for Risk Management Risk is an integral part of any business & it need not necessarily lead to an adverse result. In stock market, not only shares and securities are traded; in the process, RISK and RETURN are also traded; and, there is a trade off between the risk and the return. Risk taking is essential to an active stock market and legitimate risk taking should not be unnecessarily or unduly avoided, therefore, a good stock broking outfit necessarily requires a robust & efficient risk management system as an integral part of its effective business model with an objective to meet the competition & the expectation of its clients yet it should be able to control the business risks effectively including statutory & regulatory compliances. Considering these objectives in mind JT has framed its risk management policy which is reviewed & revised from time to time & is reproduced as under -
Risk Management System-Process a) b) c) d) e) f)
Identification of area of risk Analysis of factors/reasons causing risk Planning for control of risks associated with the business Strategic decision making for risk management tools and its implementation Measuring results Continuous Improvement
Risk Management Cell- Structure Just Trade (Just Trade Securities Limited) has created a risk management setup which is regionally operational and controlled but centrally administered by the HO. The risk management policies are decided by a committee headed by the senior most official of the company. The risk management cell works under the superintendence & control of RMC Team. In capital market segment, the regulator i.e. SEBI has entrusted the trading members with the discretion/power to put in place a prudent system of risk management for margining to protect themselves from the client default. As regards derivative segment every trading member is under obligation to collect upfront margins (as prescribed by the exchange from time to time) before allowing trading to its clients.
Just Trade Online products Since, Online is a fully automated internet based trading platform; therefore, the risk management function is also fully automated & controlled by the system on real time basis. Trading is allowed to Just Trade Online clients based on upfront margining concept (both in Capital Market & derivative segments) where margining validation happens at order level & no manual intervention is required for risk management.
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Just Trade Off-line Products As a matter of policy in offline products, JTSL follows exposure based margining system, where in the trading / exposure is allowed to the client by comparing his exposure & resultant margins required with his total assets/deposits/margin available with JTSL. This validation is being done at order entry level that means if the exposure taken by the client results into margin requirement in excess of his available capital with JTSL the order shall be rejected by the system & will not get through. Risk containment measures also include capital adequacy requirement, monitoring of client performance and track record, margin maintenance requirements, limits based on margin, online monitoring of client positions and restriction in cases of margins are breached etc. As a matter of policy trading is allowed to the clients only after receipt of adequate capital/assets/margins from the client. Daily Applicable Margins Presently following margins are charged to the trading members by the exchange i.e NSE in the capital market Exchange Margins in Capital Market Segment Daily margin, comprising of the sum of VaR margin, Extreme Loss Margin and mark to market margin is payable which is computed at client level. The exchange charges these margin on upfront basis from the TM. However collection of these margins by the TM from its clients have been left to the discretion of the TMs & the TM have been advised by the regulator to put in place an appropriate margining policy in place in order to safeguard itself against market risk & client default . The pay-in of MTM loss/profit is effected on T+1 day.
Value at Risk VaR margin is a margin intended to cover the largest loss that can be encountered on 99% of the days (99% value at risk). Scrip wise daily volatility is calculated using the exponentially weighted moving average methodology. The VaR margining is applied by the exchange upfront on real time basis during trading time against the capital of TM available with it & not on T+1. VaR margin shall be collected on gross open position of the member i.e gross of all net position across clients including proprietary position of TM. No netting across different settlements is allowed. VaR Margin so collected shall be released along with the pay in, including early pay in of securities. Extreme Loss Margin The Extreme Loss Margin has replaced erstwhile exposure margin after implementation of new risk management framework prescribed by SEBI in May 2005. The ELM for any security shall be higher of:
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1. 5%, or 2. 1.5 times the standard deviation of daily logarithmic returns of the security price in the last six months. This computation shall be done at the end of each month by taking the price data on a rolling basis for the past six months and the resulting value shall be applicable for the next month. The ELM margining is applied by the exchange upfront on real time basis during trading time against the capital of TM available with it & not on T+1. ELM margin shall be collected on gross open position of the member i.e gross of all net position across clients including proprietary position of TM. No netting across different settlements. ELM Margin so collected shall be released along with the pay in including early pay in of securities
Mark-to- Market Margin Mark to market loss shall be calculated by marking each transaction in security to the closing price of the security at the end of trading. In case the security has not been traded on a particular day, the latest available closing price at the exchange shall be considered as the closing price. In case the net outstanding position in any security is nil, the difference between the buy and sell values shall be considered as MTM loss/profit for the purpose of calculating the mark to market margin payable. The mark to market margin (MTM) shall be collected from the member before the start of the trading of the next day. The MTM margin shall also be collected/adjusted from/against the cash/cash equivalent component of the liquid net worth deposited with the Exchange. The MTM margin shall be collected on the gross open position of the member i.e gross of all net position across clients including proprietary position of TM. For this purpose, the position of a client would be netted across its various securities and the positions of all the clients of a broker would be grossed. There would be no netting off of the positions and setoff against MTM profits across two rolling settlements i.e. T day and T-1 day. However, for computation of MTM profits/losses for the day, netting or setoff against MTM profits would be permitted. In case of Trade for Trade Segment (TFT segment) each trade shall be marked to market based on the closing price of that security. The MTM margin so collected shall be released on completion of pay-in of the settlement.
Additional / Adhoc Margins Considering the market volatility the Exchanges/Clearing Corporations have the right to impose any other additional / adhoc margins over & above the margins mentioned above.
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Exemptions from Margins a. Transactions done by all Institutional investors shall be exempted from margin payments For this purpose Institutional Investor would mean :1. 2. 3. 4. 5.
Foreign Institutional Investor registered with SEBI. Mutual Fund registered with SEBI Public Financial Institutions as defined in the section 4A of Companies Act 1956. Banks as defined in section % (1) ( c ) of banking Regulation Act 1949 Insurance Company registered with IRDA.
b. Where Early pay in is made the outstanding position to the extent of early pay in shall not be considered for margin purposes.
Action by Exchange in case of Short fall in Margins & Pay in of funds a. Margin Shortfall In case of any margin shortfall, the trading terminals of the brokers shall be deactivated by the exchanges. b. Pay in Shortfall In case of pay in short fall the trading facility of the member shall be withdrawn & the security pay out if any due to the TM shall also be withheld. Upon recovery of shortage the TM may be permitted to trade subject to his providing deposit equivalent to his cumulative funds shortage, which shall not be adjustable against any margin obligation & would be released after 10 rolling settlements. The exchange would levy the penal interest at such rate which may be decided by it from time to time. SEBI / Exchange Requirement for Margin collection from the client in Capital Market Segment The quantum of margin & the form and mode of collections are left to the discretion of the members in case of capital market segment. It has been advised to the trading members that they should have a prudent system of risk management to protect themselves from client default & the margins are likely to be the most important element of such a system.
Exchange Margins in Derivative Segment The following margins are being charged by NSE in derivative segment on upfront basis except the settlement obligations in the form of day end MTM losses Initial Margin The most critical component of a risk containment mechanism for NSCCL (clearing corporation of NSE) is the online position monitoring and margining system. The actual margining and position ® monitoring is done on-line, on an intra-day basis. NSCCL uses the SPAN (Standard Portfolio
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Analysis of Risk) system for the purpose of margining, which is a portfolio based system. Initial margin is up-front charged for all the open positions of derivative contracts which are computed ® based on NSCCL-SPAN parameters which are defined by the exchange from time to time. At present, during intra day trading session the exchange sends four span files based on which the initial margins are charged/blocked upfront on real time basis. Initial Margin shall include SPAN margins, premium margin, assignment margin and such other additional margins, that may be specified by Clearing Corporation from time to time. Premium Margin In addition to Initial Margin, Premium Margin would be charged to clients. The premium margin is the client wise margin amount payable for the day and will be required to be paid by the buyer of the option till the premium settlement is complete; the seller of the option would receive the premium margin. The premium margin is also blocked on upfront basis against the capital of the TM but is released immediately upon the pay in of premium on T+1. Assignment Margin It is required to be paid on assigned short option contracts against the Interim and Final Exercise Settlement obligations for option contracts on individual securities, till such obligations are fulfilled. All Americans call options may be exercised at any point of time till the maturity of the contract. European calls can not be exercised during the contract period & can be settled only upon its maturity, therefore, call option in index contracts are always settled on maturity because these are Europeans calls.
Special Margins Considering the market volatility & the quantum of open positions in different contracts the exchange also levies special/ Adhoc margins from time to time which are required to be deposited by the TM immediately to the exchange. Just Trade Securities Limited. - Margining System Just Trade Securities Limited (JTSL) has adopted exposure based risk management / margining system the detail of which is reproduced as under JTSL follows exposure based margining system in both capital market & derivative segments where in the exposure / trading is allowed to the client equal to 4 Times of his available capital with JTSL, which effectively works out 25% of margin requirement irrespective of the fact that in which scrip/contract the client takes position. Further such validation is being done at order entry level that means if the exposure taken by the client results into the margin requirement in excess of his available capital with JTSL the order shall be rejected by the system & will not get through. Risk containment measures also include capital adequacy requirement, monitoring of client performance and track record, margin maintenance requirements, online monitoring of client positions and restriction in cases of margins limits are breached etc.
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As a matter of policy trading is allowed to the clients only after receipt of adequate deposit/capital/assets/margins from the client. Clients can put their trades online and the risk management feature will in normal circumstances will function on the following parameters: Up to 7 Times exposure will be given in Margin Product (Intraday) on selected scrips ( Details given in Annexure). The exposure of 0.99% will be given for delivery. Mode of receipt & payment of margins The clients may deposit the required margins/capital/asset for taking exposure in the form of Cheque, DDs , POs, Bank Transfer, Bank Guarantee, FDR & JTSL approved securities etc., the financial ledger balance of the client is also considered for this purpose as deposit. The value of securities for this purpose is calculated with its last closing price, which is further discounted with applicable haircuts in order to arrive at the net value of these securities & the value thus arrived at is considered for the purpose of margining. Please note that no third party payments will be allowed. Trading Platform of Just Trade Securities Limited The responsibility of updating & maintaining the trading platform on a day to day basis is entrusted on the Risk Management Cell. The margin available with every client for trading is arrived at by taking into consideration the total assets with JTSL which is netted against the financial ledger balance of the client & is reflected in the daily margin report. The valuation of non cash assets available with the client is arrived at by applying the applicable haircut (VaR) which is prescribed by the NSE and 10% more on it. Further JTSL has to ensure that all the other required activities for ensuring the correctness of margin, position, client code, scrip master, scrip in ban period, adequate capital with exchanges etc. are carried out before the start of the trading Trading Work Station (TWS) Control TWS is the platform approved by the exchange for the purpose of trading. NEAT: The NSE trading system is called NEAT i.e 'National Exchange for Automated Trading. This is a fully automated screen based trading system, which adopts the principle of an order driven market where order are executed on price & time priority. NEAT Hierarchy:Corporate Manager: The corporate manager is at top level in the hierarchy & can perform all the functions such as order and trade related activities including setting of limits for branch ids & dealer ids and receiving reports for all branches of the trading member. The corporate manager
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is a unique & only one id provided to each trading for each segment which remains at the top of all the trading set up. Branch Manager: Branch Manager is a middle level in hierarchy & can perform the trade for itself & can view the trades of all its dealers (TWS). It can set limits & exposures for all its dealers attached with it. Dealer: Dealers (TWS) are users at the lower most level in hierarchy. They can perform view order and trade related activities only for themselves and does not have access to information on other dealers. Online Surveillance- Derivatives DERIWATCH It is an online risk monitoring system to cope up with the volatilities of future and option market. This software indicates the real time margin requirement and obligation lying with the client as against the trade in F&O segment. Features of DeriWatch: a) Live Margin Report - Reporting of total margin (SPAN margin + MTM Value). Used percentage of the deposit. This report gives the client-wise/ deposit-wise/ used percentage-wise/ margin-wise intra day margin utilization. b) Net Position - Intraday net position of any branch or TM or any of their clients. This helps members to check sale-purchase positions and mark to market losses of their TM/Branch/clients at any given point of time. c) Scrip wise Concentration - This report gives scrip-client wise outstanding summary at any given point of time. When the scrip reaches 80-90% market wide limit, this report is extremely helpful in getting the positions controlled/squared off d) Margin Rates - NSE's applicable margins in derivative as per the risk parameter file. e) Modified Trades - This report will show all the trades in which codes were modified with old code and modified code.
@ Risk Online Derivative Margining Solution @Risk is another solution with JTSL to monitor and manage risks related to exchange margin requirement in case of derivative segment. The main features of the software are Features: a) Margin Report: This report gives details of the margin requirement for the current day. The total margin requirement is the sum of the span and exposure margins. b) Violation Report: If a member crosses his set trading limit, the violation report displays details of the violated limit. c) Trades Report: This report gives the current day trades with the option of desired filters.
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d) Client wise Scrip wise Margin Report: This report gives details of the per scrip margin requirement for the client. e) Market wide Limit Report: This report gives the total quantity for scrip that can be traded in the market, the actual quantity traded and the percentage of used quantity. Other Surveillance Measures and Compliances Clearance: Position of the clients with High M2M% will be Squared-off depending on Market risks. Blocking of certain series of securities: The Series which do not belong to the retail clients are blocked on Surveillance server for retail clients. BE (Trade to Trade Category) Illiquid scrip (as per list given by exchange and internally decided by the risk management team) Bulk Deal & Block Deal Bulk Deals - The Trading member shall make disclosure of Bulk trade executed immediately upon execution of the trade, if the single order where traded quantity either buy or sell is more than 0.50% of number of equity shares of the company listed on the stock exchange Or Within one hour from the closure of the trading session if the cumulative quantity traded under any single client code during the day either buy or sell is more than 0.50% of number of equity shares of the company listed on the stock exchange. The stock exchange shall disseminate this information through its web site after market hours same day for the information of all market participant. Block Deal - In order to provide facilitation for execution of large trades, the stock exchange provides separate trading window for Block Deals from 9.55 AM to 10.30 AM. A trade with minimum quantity of 500,000 shares or minimum value of Rs. 5 crores executed through a single transaction on this separate window of the stock exchange shall constitute Block deal. The stock exchange shall disseminate this information through its web site after market hours same day for the information of all market participant. 5) Market Wide Position Limit (MWPL) in derivative contract: The market wide limit of open position (in terms of the number of underlying stock) in futures and option contracts on a particular underlying stock shall be lower of30 times the average number of shares traded daily, during the previous calendar month, in the relevant underlying security in the underlying segment, Or
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20% of the number of shares held by non-promoters in the relevant underlying security i.e. freefloat in terms of the number of shares of a company. This limit is applicable on all open positions in all futures and option contracts on a particular underlying stock. When the open position in particular scrip exceeds 95% of the market wide position limits of that scrip the scrip goes into Ban Period and all clients/members shall trade in derivative contracts only to square up their positions. Any Increase in positions in that scrip shall be subject to a penalty 1% of the value of increased position subject to a minimum of Rs.5000 and maximum of Rs.1, 00,000. The normal trading in the scrip shall be resumed only after the open outstanding position comes down to 80% or below of the market wide position limit Action taken by RMC The limits of scrip's in the ban period are freeze at the member level through the surveillance in both futures and options segments .Hence a Client can only square up his position and not take any fresh position in the same. Any rolling over of positions to the next months are done through the NEAT Terminal. 6) Trading Member Wise Position Limit (TMPL) Index Based Derivative Contracts Option Contracts - The trading member position limits in equity index option contracts shall be higher of Rs.250 crore or 15% of the total open interest in the market in equity index option contracts. Future Contracts - The trading member position limits in equity index futures contracts shall be higher of Rs.250 crore or 15% of the total open interest in the market in equity index futures contracts. Stock Based Derivative Contracts Market-wise position limit (MWPL) of more than Rs.500Crores, The combined futures and options position limit shall be 20% of applicable MWPL or Rs.300Crores, whichever is lower. Market-wise position limit (MWPL) of more than Rs.500Crores, The combined futures and options position limit shall be 20% of applicable MWPL or Rs.300Crores, whichever is lower. Stock futures position cannot exceed 10% of applicable MWPL or Rs.150Crores, whichever is lower. And the balance is available for options If Market-wise position limit (MWPL) less than Rs.500Crores, The combined futures and options position limit would be 20% of applicable MWPL and futures position cannot exceed 20% of applicable MWPL or Rs.50Crore which ever is lower.
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The Trading Member wise limits are given by the exchange through a circular defining the Market Wide Position Limits, Overall Limits (Stock Futures + Options) and Stock Futures Limits. 7) Client Wise Position Limits in Derivatives The gross open position for each client, across all the derivative contracts on a underlying, should not exceed: - 1% of the free float market capitalization (in terms of number of shares) or - 5% of the open interest in all derivative contracts in the same underlying stock (in terms of number of shares) whichever is higher. Daily client wise position limits in scrip wise quantity limit are made available on the web site of NSE which is referred to by the trading member for compliance.
Penalty on Violation 1% of the value of the quantity in violation (i.e., excess quantity over the allowed quantity, valued at the closing price of the underlying stock) per client or Rs.1,00,000 per client, whichever is lower, subject to a minimum penalty of Rs.5,000/- per violation / per client. When the client level violation is on account of open position of client exceeding 5% of open interest, a penalty of Rs. 5,000/- per instance shall be charged to clearing member.
8) Blocking of scrips which are in RBI ban period: The limit of the NRI and FII would be blocked for trading in any specific securities as notified by the exchange though it’s circular on the subject. These clients are not allowed to trade, as per the RBI directives, in any specified scrip. The limit of these clients would be blocked in the NSE CASH and BSE CASH segments. Process Flow / Activities of Risk Management Cell The entire process of RMC is bifurcated into four Sessions • •
Pre Trading Session Trading Session
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Post Trading Session End of day activities
Pre Trading Session- Activities 7:00 am – 9:00 am
Process Time:
a) Updation of Scrip Master - On a daily basis RMCS team updates the scrip master of NSE on Surveillance, NEAT, with the purpose of effecting the new changes in the series, symbol and corporate benefit of scrip. The Scrip uploaded on the Surveillance are Security (CM) and Contract (FAO), are taken from NSE site. The updation of scrip master is required on all NEAT & BOLT ids, Admin, Mini Admin, Branch Id, Business Partner id, Diet id. The required scrip master files for this purpose are made available on the FTP server of Just Trade Securities Limited. & all the branches, BPs & other users are asked to upload the same from JTSL FTP on their machines before the start of the trading session. The following master files are uploaded for this purpose in NSE 1) Security file ( scrip master updation) 2) Contracts ( Contract master updation) 3) Participant ( custodian participant code updation for institutional clients) 4) FO Participants ( Custodian participant code for NRI clients) Action Taken By RMC All clients with high exposure in derivatives segment are freezed with 90% of the allowed value. The following master files are uploaded for this purpose in NSE 5) Security file ( scrip master updation) 6) Contracts ( Contract master updation) 7) Participant ( custodian participant code updation for institutional clients) 8) FO Participants ( Custodian participant code for NRI clients)
b) Blocking limit for scrip in ban period - All the derivative contracts which have crossed 95 % of the market-wide position limit and currently in ban period are required to be blocked on the TWS to avoid any fresh exposure in the underlying which would result into disciplinary action against RSL. For this purpose a file is being generated from unison wrt scrips in ban period which is uploaded in each CTCL server.
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Trading Session Activities 9.15 am – 4:15 pm
Process Time:
a) Risk Monitoring - The prime responsibility of the risk management cell is to look upon all such potential threats which could act as risk hazards to the business, at the same time, RMC has to give leveraged products/ relaxations to certain set of clients having special approvals/waivers from the competent authorities. Therefore, the task of risk monitoring can be successfully accomplished by using various risk management tools so that it can ensure before the end of trading session that no one takes positions disproportionate to his/its deposits available with JTSL. b) Tracking market movement - Tracking market movements is one of the best practice which allows RMC team to identify how returns covariates with the market volatility and give ample opportunity to them to curb the risk & take appropriate action in time. c) Follow –up and mail tracking - Follow up of all short margin cases is done by the RMC official with the help of margin report either by calling the customer or communicating through messenger. In absence of concrete replies the position of short margin client is proportionately reduced to bring the client at the required maintenance margin. d) Surveillance on member wide position limit - This activity is efficiently and effectively performed by using Connect to NSE from where the RSL net position in a particular security can be seen which is about to breach the limit as reflected through NEAT. As soon as the TMPL reaches 85 % appropriate measures are taken to prevent fresh exposure in the underlying by blocking the fresh exposure in that scrip in our trading system. e) On-line surveillance on FAO MTM - At present FAO MTM profit/loss is analyzed with the help of @Risk (i.e. real time surveillance) application. This application helps in identifying cases which are not fulfilling their day’s obligation i.e. the cases short of span margin. On the basis of report generated by this application an appropriate action is ensured against all SPAN short cases. With the help of this utility the RMC officials follow-up of those cases where Total span requirement is not fulfilled for a day. f)
Enhancement of scrip wise limit - With the objective of giving leverage and allowing calculated risk the scrip wise limit on the unapproved basket is enhanced during the day on the basis of specific request received from the branches/dealer.
Online backup: Immediately, at the end of trading session the online backup of all trades and orders belonging to the current day is kept safely. This activity is performed in lieu of the exchange guidelines to maintain all records for a period of five years. Business Continuity Plan (BCP) of Just Trade Securities Ltd. for its Trading Servers JTSL is running two different products for CTCL and Internet Base Trading. 1. (Internet Base Trading) – with Religare Technova Limited.Trading software name Trade Anywhere.
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2. (CTCL + Internet Base Trading) – with Financial Technologies India Limited trading software named ODIN.
Crisis Management Plan Situation – Sudden Market fall or Market wide circuit breakers activated Any unforeseen and exceptional fall in the market or when the index breaches its limits & market wide circuit breakers are activated and the trading comes at halt during the day. Action by RMC In order to handle this type of crisis situation, RMC will short list those Client codes which are short on Margin and take the action against that, so that that these short clients do not end up with short margin & losses. This will minimize quantum of naked debit balance and thus the default risk. Disconnection of Trading Server with Exchange Connectivity Due to various reasons like fluctuation of Lease line, VSAT connection, problem at Data Centre etc. may lead to exchange disconnection with the trading server resulting in non confirmation or delayed confirmation of trades on the ODIN Admin terminals and Trader Work Stations. This leads to a major chaos and confusion at Dealer as well as Client level because the status of the order is not known to the client. Action by RMC: In order to provide confirmation of trades to branch and clients from NEAT (F&O) Corporate id and Connect2NSE (NSE Cash). Trading Member Level Limit Violation This kind of problem may occur due to following reasons:Member level Violation of Margin Limit On some very exceptional days, trading rights of JTSL gets suspended in a particular Segment of an Exchange due to over utilization of Margin limit. Action by RMC In case of disablement from Trading in an Exchange, a Letter will be sent to bank stating the immediate movement of funds to the Clearing Corporation. Further two separate Letters regarding intimation of funds transfer & restoration of the trading of JTSL are sent to the margin department of the Exchange. Member level Violation of Scrip-wise Position Limit in Derivatives Exchange has applied scrip-wise position limit at member level. In case of violation of the limit, the trading right of member may be disabled. Action by RMC - A Letter is sent to margin department of respective Exchange instructing to square-off a specified quantity of particular scrip in a defined client code. Note : In addition to above the clients are requested to refer to the terms conditions of executed agreements , risk disclosure documents along with the policies and procedures and such other conditions / authorizations signed by the client during opening of account and later.
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