- This document contains important information on trading in all segments; Prospective Constituents should read this document before trading, In the light of the risks involved, you should undertake transactions only if you understand the nature of the relationship into which you are entering and the extent of your exposure to risk.
- A day trader is provided with more exposure for indulging in day trading activities. This may vary from time to time in accordance with the market conditions. The positions taken for intra-day should be cleared before 15 Mins of market closing in all segments by the constituents else the same will be closed out by RMS. We will not be held responsible for the loss arising out of the network congestion / System failure during the last 15 mins of the market hours.
- The exposure set in the Capital Market segment, Futures & Options Segment and Currency Derivatives is different. In the capital market, the client is allowed to take the exposure on a multiplier basis which can be anywhere more exposure limit of initial deposit. Whereas, in all derivatives, Futures & Options segment, where exchanges have stipulated fixed initial margins, exposure margin and special margin if any, it is compulsory to keep 100% margin for Futures & Option either in the form of clear fund balance or as collateral securities.
- User wise and script-wise order value and quantity limit will be defined by RMS based on the risk measurement and the same shall be revised from time to time.
- All compulsory delivery contract in Future and Options (Across all exchanges) segment will be blocked from trading 4 days prior to the expiry day and open position in the above-said script or contracts need to be closed 4 days prior to expiry and RMS will reserve the rights to square such open positions in case not square at client level.
- Surveillance will reduce the positions if the MTM loss incurred on a day is more than 40% of the actual margin requirement. In order to retain the position in such cases is possible only if Funds are transferred from the client’s bank account either through ATOM or fund Transfer.
- Once the MTM loss for the open positions reaches as per the exchange rule of the margin available, the positions should be cleared from the branch concerned, failing which the positions taken will be cleared off from the surveillance dept.
- You should carefully consider whether such trading is suitable for you in light of your financial condition. In case of any market volatility/adverse consequences or loss, you shall be solely responsible for the same and member shall not be responsible, in any manner whatsoever, for the same and it will not be open for you to take a plea that no adequate disclosure regarding the risks involved was made or that you were not explained the full risk involved by the concerned stockbroker.
- The constituent shall be solely responsible for the consequences and no contract can be rescinded on that account. You must acknowledge and accept that there can be no guarantee of profits or no exception from losses while executing orders.
- All the cheque dishonor cases are viewed seriously and if the position is taken based on the bounced cheque same will be cleared from the surveillance dept. The normal rule for 5 days debit will not be applicable while selling the shares in cheque dishonor case. In the case at any point in time, if the client ledger arrived to debit due to whatever market volatile or higher position values in less margin or dishonor of pay in. The client will be responsible to pay the dues to clear the outstanding in his/her ledger. In any circumstances the client fails to pay the due amount, the company will switch to legal activities to recover such amount from the client.
- Every payment from clients should be in the form of a cheque and the same will be considered for margin only after clearance of the instrument. There will not be any exposure provided to clients based on the uncleared funds. Shares in Member Beneficiary & constituent DP Account (If POA gave) will be considered for intra-day exposure in Capital Market segment subject to haircut value. Exposure for delivery will be based only on the clear fund balance.
- Restrictions/Prohibition to take further position or closing existing position: Under any of the circumstances, such as, client’s failure to meet pay-in or margin obligations or clearance of outstanding balance with broker before permissible time limit or beyond such period as may be allowed by broker, the Client may not be permitted to take any fresh or further position until the full clearance of earlier dues, obligation, outstanding, etc. Even, the broker can firstly set-off or adjust the same shall not allow the client to take further/fresh position.
- The system will send MTM warning % alert from 40% and every 10% thereafter. Once MtoM Reached 75% (Square off mode) all pending orders across all segments and exchange will be canceled including stop-loss order by the system. Further fresh orders will not be allowed and open positions can be covered at market price by the system only.
- The system will calculate MtoM warning % considering available cash balance in the respective client account and collaterals will not be considered for this purpose. Collaterals will be considered for margin reporting purposes alone to the respective exchange(s).
- MTM Square orders will be submitted to the exchange at available market price and the order execution price may vary due to market volatility.
- Further, it would be the duty of the client to monitor his/her/its position with the Broker from time to time. In case of any delay or failure in meeting any obligation, margin requirements, etc. from client-side, a broker might close the existing position or open position WITHOUT ANY FURTHER INTIMATION to the client. Such Circumstances may include (but not limited to):
a. Failure to meet pay-in obligation on Pay In a day,
b. Delay in meeting the pay-in or margin requirement,
c. Delay or failure in the clearance of outstanding or dues to the broker,
d. Returning or frequent returning of cheques of the client,
e. Unnecessary / Unwarranted dispute from the client without any substantial cause/reason,
f. The client’s attitude of not coming to the amicable settlement for any dispute can be settled without the involvement of Exchange and /or SEBI,
g. Under such other circumstances as the Broker might think just and proper on case to case basis.
h. As per the prevalent RMS policy of the Broker,
i. Any direction from SEBI/Exchange or such other authorities,
Points to be noted:
- Extreme care is taken while drafting the exposure policy. Even then, the chances for losses may arise in client’s accounts due to the high variation in security prices on reaching DPR levels. The chances are there that once a client initiates a short position in a security and the share may get the upper DPR level and the client could not close out the short position. In such a case, the chances of incurring auction loss are higher and chances for incurring such instances are existing in the market. Similarly, a client goes on a long position in a security and the chances that the shares price reaches the lower DPR on T day and coming days are there in the market. In these instances, the losses are inevitable and the recovery of funds depends on the relationship of the branch team and the client concerned.