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RMS Works On The Following Concepts

RMS works on concepts related to cash, margin, exposure, and transactions offered to clients. Cash refers to the clear balance in a client's ledger account. Margin is the underlying stake provided by the client to mitigate risks. Exposure is a client's obligation from unsettled buy/sell transactions and open F&O positions. Exposure multiple is the number of times exposure is allowed based on available cash margin. Only securities in the approved list can be used as margin. Intraday trades must be reversed on the same day, while delivery trades settle on T+2. Selling against unsettled buying allows selling the same scrip bought the previous day, but the broker is not responsible for short delivery. Online surveillance monitors trades and

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Abhimanyu Yashwant Altekar
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197 views

RMS Works On The Following Concepts

RMS works on concepts related to cash, margin, exposure, and transactions offered to clients. Cash refers to the clear balance in a client's ledger account. Margin is the underlying stake provided by the client to mitigate risks. Exposure is a client's obligation from unsettled buy/sell transactions and open F&O positions. Exposure multiple is the number of times exposure is allowed based on available cash margin. Only securities in the approved list can be used as margin. Intraday trades must be reversed on the same day, while delivery trades settle on T+2. Selling against unsettled buying allows selling the same scrip bought the previous day, but the broker is not responsible for short delivery. Online surveillance monitors trades and

Uploaded by

Abhimanyu Yashwant Altekar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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(1) RMS works on the following concepts:

1.1)Cash: The clear balance available in the customer’s ledger account in our books.

1.2) Margin: The underlying stake provided by the customer in the form of cash
to mitigate market (price) or settlement (auction) risk.

1.3) Exposure of client: Exposure of Client means a client’s obligation arising out of (i)
Buy and Sale entered into on behalf of the client in cash segment which are yet to be
Settled and (ii) open position in F&O segment.

1.4) Exposure multiple: The number of times that exposure is allowed on the underlying
margin on the cash segment would have to be made on the availability of cash
margin by executing a transfer before any order is initiated.

1.5) Stock qualifying for margin in cash segment transactions: Securities in the approved list
of Zerodha.

1.6) Total Deposit: The aggregate of client deposit available with us in the form of cash only.

2. Transaction offered to clients:

2.1) Intraday trades: Intraday transactions are, sale – Purchase in any scrip which are
reversed by contra transaction of Purchase- Sale in the same scrip and in the same
quantity, so that net quantity carried is NIL on a particular trading day.

2.2) Delivery Trades: This is net Purchase or Sale of a particular scrip in client’s account
which is settled by Delivery on T+2 Days.
In case of sale transactions client has to give securities to company in demat form
before pay- in, else he will bear auction debit.

2.3 Sell Against unsettled Buying: This is sale against unsettled buying in particular
scrip. Under this kind of transaction a client can buy particular scrip in particular quantity
on day one and can sell the same scrip in same quantity on the immediately next trading
day.

Note ; In this case Zerodha will not be responsible for any short pay out of security received
from Exchange resulting in short delivery in client’s account

Online Surveillance
The surveillance team watches the online trades as they happen and extra ordinary volume
in the particular scrip is immediately investigated by calling up the branch and asking for
details of clients and as per the details made available, the clients previous purchase or
sales transactions are looked into.
Further any big value transactions are checked for whether the client is not trading beyond
ones known Income (i.e. Income declared in KYC)

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