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.
Finvasia don’t allow fresh carryforward positions in stocks futures and options from Monday onwards in the Expiry week due to physical settlement and also due to increase in margins on daily basis till Thursday and to collect the margins if client wants physical delivery of his trades. 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 12.00 noon failing which positions will be sqoff by RMS team.
If client wants to convert his buy/sell position in stocks futures and options for physical delivery, he/she has to inform Finvasia by Wednesday and also make sure to have sufficient margins or stocks in his /her account. Clients can trade in MIS if he wants to trade in physical delivery contracts from Monday till Thursday.
- Policy for ASM and GSM Stocks:
Clients shall be restricted to take fresh or new position on ASM and GSM stocks. In case they have bought the stock/s or transferred from another DP, client can sell the stock/s as per the prescribed rules given by the Exchange.