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