Updation of retention amount

This is with reference to NSE circular no INSP/53820 dt 23.09.2022,

SEBI circular no.  CIR/HO/MIRSD/DOP/CIR/P/2019/75 dt 20.06.2019,

SEBI circular no. SEBI/HO/MIRSD/DOP/P/CIR/2021/577 dt 16.06.2021,

SEBI circular no. SEBI/HO/MIRSD/DOP/P/CIR/2022/101 dt 27.07.2022 and other circulars and directives, FAQ issued with respect to settlement of running account of investors, all of which are available on the websites of NSE, BSE, MSEI and SEBI which investors are requested and required to visit and acquaint themselves with.

The amounts of investor funds which we shall retain with us, as permitted by these regulations in the manner permitted as on the date of settlement are as under:

  1. Funds pay-in obligations for open settlements,
  2. Securities pay-in obligation for open settlements, as permitted,
  3. 50% of EOD margins
  4. 175% of EOD margins

Out of the above, the manner of retention shall be as per above regulations and as per changes in the same from time to time which presently read as under:

  1. Funds retained would comprise amounts computed in (a) and (c) above with addition of shortfall in pledged securities as computed in point 2 below.
  2. Amounts computed in (d) above and (b) above, as permitted, would first be adjusted against value of securities pledged to us towards margin and in case there is shortfall in value of pledged securities available, the said shortfall would be added to funds retention in point 1 above.

For computation of value of securities pledged for margin, haircut would be applied at Value at Risk (VaR) rates specified in VAR file issued by stock exchange / clearing corporation for previous trading day (T-1) and valued at closing prices specified in price file issued by stock exchange / clearing corporation for previous trading day (T-1).

The Retention Statement along with Statement of Funds and Statement of Securities, as required, would be sent within permitted time which is presently 5 working days from date of settlement.

Post settlement of running account, all investors can execute trades within limits permissible by the retained funds and securities, and if required, the investors may provide additional funds and securities if they desire to increase their value of transactions.

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