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PRISM (Parallel Risk Management System) is the real-time position monitoring and
risk management system for the Futures and Options market segment at NSCCL. The
risk of each trading and clearing member is monitored on a real-time basis and
alerts/disablement messages are generated if the member crosses the set limits.
Clearing members, who have violated any requirement and / or limits, may reduce
the position by closing out its existing position or, bring in additional cash
deposit by way of cash or bank guarantee or FDR or securities. Similarly, in
case of margin violation by Trading members, clearing member has to set its
limit for enablement.
The initial margin on positions of a CM is computed on a real time basis i.e.
for each trade. The initial margin amount is reduced from the effective deposits
of the CM with the Clearing Corporation. For this purpose, effective deposits
are computed by reducing the total deposits of the CM by Rs. 50 lakhs (referred
to as minimum liquid networth). The CM receives warning messages on his terminal
when 70%, 80%, and 90% of the effective deposits are utilised. At 100% the
clearing facility provided to the CM is withdrawn. Withdrawal of clearing
facility of a CM in case of a violation will lead to withdrawal of trading
facility for all TMs and/ or custodial participants clearing and settling
through the CM.
Similarly, the initial margins on positions taken by a TM are computed on a real
time basis and compared with the TM limits set by his CM. The initial margin
amount is reduced from the TM limit set by the CM. Once the TM limit has been
utilised to the extent of 70%, 80%, and 90%, a warning message is received by
the TM on his terminal. At 100% utilization, the trading facility provided to
the TM is withdrawn.
A member is provided with warnings at 70%, 80% and 90% level before his trading/
clearing facility is withdrawn. A CM may thus accordingly reduce his exposure to
contain the violation or alternately bring in Additional Base Capital.
This violation occurs when the exposure
margin of a Clearing Member exceeds his liquid networth, at any time, including
during trading hours. The liquid net worth means the effective deposits as
reduced by initial margin and net buy premium. In case of violation, the
clearing facility of the clearing member is withdrawn leading to withdrawal of
the trading facilities of all trading members and/ or clearing facility of
custodial participants clearing through the clearing member.
This violation occurs when the open position of the trading member /custodial
participant exceeds the Trading Member wise
Position Limit at any time, including during trading hours. In case of
violation the trading facility of the trading member is withdrawn.
In respect of initial margin violation, exposure margin violation and position
limit violation, penalty is levied on a monthly basis based on slabs as
mentioned below.
This occurs when the open position of any client exceeds the client-wide positon limit
The TM/ CM through whom the client trades/ clears his deals is liable for such
violation.
In the event of such a violation, TM / CM should immediately ensure,
(i) that the client does not take fresh positions and
(ii) reduces the positions of such clients to be within permissible limits.
Additionally, in the event of such a violation,
penalty would be charged to Clearing
Members for every day of violation.
1% of the value of the quantity in violation (i.e., excess quantity over the
allowed quantity, valued at the closing price of the underlying stock) per
client
or
Rs.1,00,000 per client, whichever is lower,
subject to a minimum penalty of Rs.5,000/- per violation / per client.
when the client level violation is on account of open position of client
exceeding 5% of open interest, a penalty of Rs. 5,000/- per instance is charged
to clearing member.
The Clearing Member can recover the penalty so charged from the respective
Trading Member / Client violating the requirement of position limits and in
cases where it is levied and collected from Trading Member, such trading member,
in turn, can recover the same from the respective clients who violated the
position limits.
Disclosure for Client Positions in Index based contracts
Any person or persons acting in concert who together own 15% or more of the open
interest on a particular underlying index is required to report this fact to the
Exchange/ Clearing Corporation. Failure to do so is treated as a violation and
attracts appropriate penal and disciplinary action in accordance with the Rules,
Byelaws and Regulations of the Clearing Corporation.
For futures contracts, open interest is equivalent to the open positions in the
futures contract multiplied by last available traded price or closing price, as
the case may be. For option contracts, open interest is equivalent to the
notional value which is computed by multiplying the open position in that option
contract with the last available closing price of the underlying.
At the end of each day during which the ban on fresh positions is in force for
any scrip, when any member or client has increased his existing positions or has
created a new position in that scrip the client/ TMs are charged a
penalty.
The penalty is recovered from the clearing member affiliated with such trading
members/clients on a T+1 day basis along with pay-in. The amount of penalty is
informed to the clearing member at the end of the day..
This violation takes place when a clearing member utilises the collateral of one
TM and/ or constituent towards the exposure and/ or obligations a TM/
constituent, other than the same TM and/ or constituent.
When option contracts are exercised by a CM, where no open long positions for
such CM/ TM and/ or constituent exist at the end of the day, at the time the
exercise processing is carried out, it is termed as violation of exercised
positions.
Position Limits
Liquid Assets |
Margins |
NSCCL SPAN |
PC SPAN
Payment of margins |
Position Limits |
FII / MF position limits
Client Margin Reporting |
Data and reports download |
Formats for collaterals
Other formats |
Cross Margin
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