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RISK MANAGEMENT POLICY

 1. Purpose

To empower risk management to perform periodic risk management for the purpose of determining areas of vulnerability, and to initiate appropriate remediation.

2. Scope

Risk management can be conducted on collection of pay in and pay out of funds, margin, limits setting for exposures & turnover for clients, terminal, branches & sub-broker level.

3. Process of  Risk Management

We collect margins by way of cheque from client. And upload the same in our admin software to set exposures to the clients

For Branches and sub broker level the margin cheques are collected by our managers and the same is deposited in our bank account. When the amount gets cleared the same is uploaded to the trading admin software for providing exposure

Policy of pay-in and pay-out of funds

We will normally pay funds to clients within 24 hours after NSE payout for the relevant trading day unless instructions are received from the client to hold the funds or maintain a running account

Pay-in of funds shall normally be pre-poned and pay-out of funds to clients shall normally be postponed appropriately in case of any bank holiday/strikes/festivals, in the intervening period

Policy of  Pay-in and pay-out of securites

Purchases are delivered to the pre-designated DP account in the client’s own name.

Deliveries should be given by the client from his pre-designated DP account in his own name and not from any other DP account.

If there is any change in DP account, the change will have to given by the client in writing much in advance with proof of account

All payment, Receipt of funds from / to clients shall be through account payee cheques, Demand drafts, and by way of direct credit to the account through EFT/RTGS from pre-designed bank accounts of the client held in his own name and issued in client’s own name only.

All payments and receipts of funds shall be received from / paid to respective clients bank accounts only.

Policy of Risk Monitoring

We have ageing analysis in our back office software to monitor debit balance of the clients. Manager will call the clients regularly to recover the debits

Policy of square off of positions

Positions will be squared off if payment is not received from a client with in a period of  2 to 5 days depending upon risk perception.

Policy of Surveillance of Trading Limits and Internal Control

We have the following procedures to implement above policies

Collection of margin on daily basis, surveillance of Trading Limits and system/Network, Client-wise and Terminal-wise limit setting, Order management and execution, Reporting of margins collection to the exchange

Client Registration, Surveillance of Trading limits, Orders and Trades, Collection of Margin and securities, Servicing and interacting with clients.

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