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Trading Limits/Exposure

Details of Exposure Limits – ODIN

Below given are the details of the Products available in NBSL app (ODIN)

Equity Segment: 1. Delivery 2. Margin 3.PTST

1. Delivery – This Product Type can be used to Sell the Stocks available with the Client. (DP Collaterals (Own Holding) & Pool Collaterals (Pledged Holdings)) and also to Buy the Stocks.

Limit Set Rule: Buying – 1 Times of the Ledger Balance + Pledged Stock. + 80% of the Stocks Sold
Selling – Against the Stock Available

2. Margin* – This Product Type can be used to do Intraday Trading in Cash Segment

Limit Set Rule: Buy/Sell – Ledger Balance + Pledged Stock + 80% of the Stock Sold

Margin Calculation – (Var + ELM )*0.8 i.e. if Var +ELM is 25% then 25*0.8= 20% will be charged.

Example: If Client Buy 100 SBI, Value of the SBI is 100 x 390 = 39000
Actual Margin required is Rs. 39000 * 35.12 % = 13696.80
Intraday Margin required is (Rs. 39000 * 35.12 %) *0.8 = 10,957.44

*All trades in this segment will square off automatically at 3:20 pm

3. PTST – This Product Type can be used T+5 Days Funding

Limit Set Rule: Buy – Ledger Balance + Pledged Stock + 80% of the Stock Sold

Margin Calculation – Var + ELM  i.e. if Var +ELM is 25% then 25% will be charged.

Example: Client Sold Stocks worth Rs. 1, 00, 000.00, he will get benefit of Rs. 80, 000.00 (80%)
If Client Buy 100 SBI and the Value of the SBI is 100 x 390 = 39000
To buy in PTST Margin required is Rs. 39000 * 35.12 % = 13696.80
Client can buy 550 shares of SBI, where in Delivery he can buy only 200 shares.

MTM for cash market needs to be paid on a daily basis

Derivatives Segment / Currency / Commodities: 1. Carry Forward 2. Intraday

1. Carry Forward: This Product Type can be used to Buy / Sell the Futures and Options to Carryforward the Positions till expiry.

Limit Set Rule: Buy / Sell – 1 Times of the Ledger Balance + Pledged Stock. + 80% of the Stocks Sold

2. Intraday – This Product Type can be used to do Intraday Trading in all Derivatives Segment

Limit Set Rule: Buy/Sell – Ledger Balance + Pledged Stock + 80% of the Stock Sold

Margin Calculation – (Span + Exp. Mar )*0.8 i.e. if Span + EM is 25% then 25*0.8= 20 will be charged.

Example: If Client buys 1 lot of SBI (1500 shares) margin required is 2,30,241 (varies from day to day.

Intraday Margin required for same above trade = 1,84,192.8(2,30,241*0.8)

MTM for F&O needs to be paid by T+1

Effective Date & % of Peak Margin and Exposures – Cash Segment

Effective Date Applicable Exposure
June 01, 2021 to Aug 31, 2021
Up to 15 Times
September 01, 2021
Up to 10 Times

Auto Sq.-Off Process

 

 

Particular

Equity (NSE/BSE)

Derivatives

(NSE FO/BSE FO)

Currency

(NSE CD / BSE CD) and

MCX (Non-Metals)

Commodities (MCX)

Timer Auto Square Off – Only Intraday Positions

3.20 PM

3.20 PM

4.50 PM

11.15 / 11.45 PM (As Per Day Light Saving Timing Changes in USA)

 

*The positions taken in Intra‐Day should be cleared within the Time as mentioned above.

NEBSL shall not be responsible for any open position on account of any technical failure after 3:10 pm.

MTM Auto Square Off

First Call = @ 50%, Second Call = @70%, Final Call = @ 80%

Once the MTM Loss reaches to 80% of the MTM Limit set, MTM Auto Square Off System will clear all the positions (Intraday + Carry Forward)

*The positions taken for intra-day should be cleared within the time frame as mentioned above.

NEBSL shall not be responsible for any uncovered open position on account of any technical failure after 3:10 pm.

Enhanced Supervision of RMS

As per circular issued by SEBI and Northeast RMS Policy, no further fresh exposure will be granted to debit clients after T+5 days and if client sq. off his existing holding then also until the settlement takes place, no fresh exposure can be granted.

For the credit clients, existing RMS policy will continue w.r.t exposure and intraday limits.

Note: Debit/Credit Clients based ONLY on free financial ledger balance and for debit clients – no collateral will be considered for exposure.

T+2+5 Days Sq.-Off:
T+2 days debits to be cleared by EOD on T+4th day or Any NEFT/IMPS/RTGS is to be done on or before 10:30 AM on T+5th Day

If the open position clearance not been initiated from Branch, Franchise, then same would be cleared from RMS department – Head office on T+5th Day. In this regard, company shall not be responsible for any loss that incur to the client on individual basis.

* Any probability or guarantee of client Cheque Receipt request will not be considered on 5th Day. At time of selling stocks, below method is followed:
• Stock from Client Unpaid Securities Account (CUSA)
• Stock from Client Collateral Account if any (If sufficient stocks are not available in CUSA)
• Stock from POA Account (If sufficient stocks are not found in CUSA and COLL A/C)

*Incase Stock valuation falls below 65% of the total Ledger Debit, Square Off will be done even before T+4 days. Handling of Client Securities:
With respect to SEBI Circular CIR\HO\MIRSD\DOP\CIRP\2019\75 dated June 20, 2019 – Handling of Client Securities, NEBSL had categorized Client as NON MTF Clients and MTF Clients.

• Ledger Debit of the Client should be cleared by the way of giving Cheques/Fund Transfer on T+4th Day by EOD. If the open position clearance not been initiated from Branch, Franchise, then same would be cleared from RMS department – Head office on T+5th Day. In this regard, company shall not be responsible for any loss that incur to the client on individual basis.

• Client stocks till T+2+4th day will be kept in “Client Unpaid Securities Account”
• On T+2+5th day Stock will be transferred from “Client Unpaid Securities Account” to Client’s Demat Account (POA)
• No further Exposure (Intraday / Carry forward) is allowed after T+2+5 days until total Ledger Balance is fully paid

Disclaimer: RMS policy is subject to Market Conditions. Northeast has rights to change the policy according to Market Conditions without any prior intimation.

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