The collection of the pay in, margin is done at HO level.
All amounts are accepted only in the form of Account Payee Cheques and in no case cash is accepted from any client.
All the cheque received from the clients are entered in the back office system only after verification of bank particulars available with us.
In case any cheque is deposited directly by the client to the Company`s Bank account without submitting necessary supporting same shall be treated as third party cheques and shall be credited to Client Suspense Account and client will not be allowed any exposure on such cheques till the time client submits necessary supporting documents.
All the third party cheques shall be credited into clients suspense account and the clients are asked to take the payment back for these cheques.
The company have a RMS Team which is responsible for setting up of Client wise Trading limits as prescribed below:
- Trading Limits :
Limits are allowed to the clients as per margining norms of the relevant exchanges. Client is required to provide upfront margin in the form of funds / securities (after appropriate haircut as prescribed by Exchange from time to time) before punching any trade.
- Margin Calls :
First Margin call will be given as soon as the MTM Loss reaches 50 % of the Total Available Margin and client will be asked to submit fresh margin or reduce the positions and the client will be in square off mode until he provides fresh margin or his MTM comes below 40% of Free Balance.
Second Margin call will be given when MTM Loss exceeds 65% of Available Clear Balance and if client does not bring in fresh margin or reduces his exposure himself before MTM reaches 80% of clear balance his positions will be squared off without further notice.
For this purpose calls to be made on registered Mobile No /emails sent to registered email addresses/ fax sent of registered fax no. shall be treated as valid delivery of margin calls.
In case of Square off of the positions best efforts to be made to leave open positions to the extent that could ordinarily be carried forward as per Exchange norms on the available free balance after setting aside the MTM Loss for the day till 3.00 p.m..
While closing out, the positions with highest margin/highest MTM Loss will be closed off first.
- Debit Balances:
In equity Segment all debits must be cleared off latest by T+2, else RMS may sell deliveries on T+3 by 12.30 p.m. to regularize the account. However in case market value of outstanding stock less debit balance in the account remains less than 25% of debit balance client will not be allowed to wait till T+3 and asked to reduce the outstanding position or deposit fresh margin same day by 2.30 p.m. else proportionate position shall be squared of same day by 3.15 p.m. by RMS. And if client does not deposit fresh margin and or does not reduces himself reduce the outstanding position the same will be squared off as soon as market value of outstanding stocks less debit balance in accounts remains less than 15% of debit balance.
Further in case of outstanding debit balances the company shall retain securities of the client equivalent to the debit balance after providing for haircut equivalent to previous day VAR or 50% of the value whichever is higher.
- Policy for physical settlement of stock futures and options:
As stated in this SEBI circular, starting from July 2018 expiry, F&O positions are being settled moved from cash settlement mode to compulsory physical delivery settlement in a phased manner. Starting from October 2019 expiry, all stock F&O contracts will be compulsorily physically settled. If you hold a position in any Stock F&O contract, at expiry, you will be required to give/take delivery of stocks.
The deliverable quantity is computed as under:
Unexpired Futures Long futures shall result in a buy (security receivable) position Short futures shall result in a sell (security deliverable) position
In-the-money call options Long call exercised shall result in a buy (security receivable) position Short call assigned shall result in a sell (security deliverable) position
In-the-money put options Long put exercised shall result in a sell (security deliverable) position Short put assigned shall result in a buy (security receivable) position
The quantity to be delivered/received shall be equivalent to the market lot * the number of contracts that result in a delivery settlement.
Equity Futures & Options trading shall be allowed to Buy & Sell (NRML, MIS, CO, BO) till Wednesday EOD .On Thursday fresh Buying and Selling of current month Options contracts shall be blocked for trading in all order types (NRML, MIS, CO, BO). Only square off mode shall be allowed.Current month Future contracts shall be allowed to trade in MIS, CO, BO only.NRML Order Type: Current month Futures and Options contracts shall be in square off mode in NRML order type. Open positions can be closed only.In case you do not have 100% full margin for delivery, all current month NRML order type positions shall be auto squared off at 2 PM on expiry day. We will not square off if complete delivery margin is available i.e lotsize*price.Square OFF Timing for MIS, CO, BO Orders: Current month Future contracts shall be squared off at the usual time of 3.25 PM
The Exchange stipulated margins (Var + ELM) are levied from expiry minus 4 days for long ITM options in the following manner:
Day Margins applicable
E-4 Day (Friday EOD) 20% of VAR+ELM
E-3 Day (Monday EOD) 40% of VAR+ELM
E-2 Day (Tuesday EOD) 60% of VAR+ELM
E-1 Day (Wednesday EOD) 80% of VAR+ELM
Client can sqoff his positions till Thursday by maintaining the margins by 2PM failing which positions will be sqoff by RMS team.
- Policy on MCX delivery.
Finvasia donot allow delivery in MCX. Finvasia block all the delivery based contracts in MCX for day one day before the tender period.Client has to sqoff the position before 10.30PM failing which positions will be sqd off by RMS
- Policy for ASM and GSM Stocks:
Only delivery buying is allowed in ASM stock. No intraday is allowed in ASM stocks.Only delivery selling is allowed in GSM stocks as per the prescribed rules given by the Exchange.
- Trading Products:
MIS/CO/BO : This product can be used for trade for intraday only.
Cash and Carry ("CNC") : This product is used when client wants to take delivery of shares in NSE and BSE.
NRML : This product is used when client want to carry the position overnight for Futures and option in NSE,MCX,NCDEX and currency.
MIS Order /bids cannot be placed after autosqoff get executed .
Intraday products (MIS/BO/CO) square off timings:
Equity derivatives: 3.25PM
Currency futures: 4.45PM
* When market closingtime is 11.30PM/When market closing time is 11.55PM
Note: Intraday square off timings can change based on the discretion of our risk management department.
If any intraday position or an MIS trade is not squared off on the same day due to any link or system failure or any risks associated with internet/wireless based trading which may occur at the end of the Client, Finvasia or the respective Exchange, it shall be treated as a Cash and Carry ("CNC") or NRML position and carried forward to the next trading day. In case of such a situation arising, the onus of squaring off the position will be on the Client. Our RMS desk shall square off any such position, without the requirement of a margin call, if the necessary cash is not available in the Client's account.