Brokers  





The Exchange has three types of intermediaries called Members, Dealers and Sponsors, who contribute to the Exchange's activities by trading and enabling listing of companies on the Exchange. Members and Dealers may carry out the activities of trading, underwriting, market making and participation in bought out deals, but Dealers cannot sponsor an issue for listing. Sponsors can perform the function of sponsorship of issues, but are not permitted to participate in secondary market activities.

Key Information

 Base Minimum Capital deposited with the Exchange

 The Base Minimum Capital is taken as security for due performance and fulfillment by the member of his operations and obligations towards the Exchange. The minimum base capital is Rs. 4 lakhs. All members have to comply with the Base Minimum Capital requirements before their activation. The members may opt for Base Minimum Capital by way of Cash, FDRs, Bank Guarantee or Securities.

        Cash to be deposited with the Exchange- minimum 25 % i.e. Rs. 1 lakh

        Deposit of Fixed Deposit Receipts (FDRs)- (25 %) issued by approved banks

        Deposit /lodgement of Securities- (maximum 50 %) with approved custodian (HDFC Bank Ltd.) with 20% margin. OR

        Irrevocable Bank guarantees (in lieu of securities - maximum 50 %) from approved banks

 Members can also deposit additional base capital with the Exchange. The cash component of the additional base capital to be deposited should be a minimum 30%.

 Intra-day Limits :

 Turnover Limit : Members are subject to intra-day trading limits. Gross Turnover (buy+sell) for the day shall not exceed twenty five times (25) the base capital deposited by the members.

 Members desirous of increasing their limits will have to submit additional deposits by way of cash, bank guarantees, fixed deposit receipts and securities.

Trading Members violating the intra-day gross turnover limit at any time on any trading day shall not be permitted to trade forthwith.

Gross Exposure Limit : Members are subject to gross exposure limits. Gross  exposure, being the aggregate of the cumulative net outstanding positions (purchase or sales) in each security shall not exceed eight and half times (8.5) the base capital deposited by the members. Gross Exposure at any point of time shall also include net outstanding positions of the previous settlement till the securities pay-in for the previous settlement.

Members desirous of increasing their limits will have to submit additional deposits by way of cash, bank guarantees, fixed deposit receipts and securities.

Margins :

All margins imposed by the Exchange are payable on T+1 day. 

The Exchange collects the following margins from brokers depending on their positions/ exposures and market volatility, in line with SEBI requirements:

    a) Daily Margin

    Daily margin payable by the member consists of value at Risk Margin and Mark to Mark Margin.

    b) Mark to Market Margin

    Mark to market margin is computed on the basis of mark to market loss of a member. Mark to market loss is potential loss, in case the cumulative net outstanding position of the member in all securities at the end of day is closed out. Mark to Market margin is calculated by marking each transaction in a scrip to the closing price of the scrip at the end of trading. MTM Profit/loss across different securities within the same settlement is set off to determine the MTM loss for a settlement. Such MTM losses for settlements are computed at client level.

    c) Value at Risk  Margin

    Value at Risk Margin is computed for all securities in the rolling settlement. All securities are classified into three groups for purpose of var margin:

 

 

 

 

 

 

			
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