Date:19-Jul-2019  Time: 1:34 AM
 
        
Risk Management Policy
All high value transaction entered into by client are monitored and evaluated at 2 stages:

  1. During the trading session to the extent possible
  2. At the time of preparation of the day’s Contract note and Bill

Where high value purchases have been made it is verified whether the client has an adequate credit balance in the account. If not, the client is requested to send a cheque on the same day or latest before the time of high value clearing on the subsequent working day. In the case of very large transaction ( which are generally intimated to us in advance by the clients ) normally an upfront margin is collect prior to the execution of the trade, which is adequate to cover the VAR margin payable to the exchange.

As regards high value sales by clients, we have instructed all clients entering into such transaction to issue the relevant delivery instruction to their DP on the same day and inform to our office. In the event that sales are executed towards the close of trading session and it is not possible for them to issues delivery instructions on the same day, instructions are to be executed on the subsequent day and inform to us. Our clients generally follow the above practice. However some such clients who have been entering into such high value transactions regularly and having evaluated their impeccable record in settling transaction, we do not insist on a confirmation.

Transactions other than high value transactions entered into by clients through remiser’s are also monitored regularly. We are constantly in touch with all clients and remiser’s to ensure that none of their clients has an outstanding balance exceeding modest limits.

Any shortage in the shares received in the pool account resulting out of sale of shares by clients is being informed to the clients before 8:30a.m. on the day of pay-in. They are told to take immediate steps to effect the delivery.

The above risk management procedures have yielded good results and we have had no defaults in receipt of payments, any major auction of shares and bad debts whatsoever.

Further the management of the company is regularly reviewing the above risk management systems to further improve the same according to size of the operation carried out by the company.

 
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