rms policies

RMS STANDS FOR RISK MANAGEMENT SYSTEM - TO MANAGE THE RISK OF THE COMPANY FROM THE VOLATILITY OF THE MARKET.

RMS works on the following concepts

Cash

The clear balance available in the customer’s ledger account in our books.

Margin

The underlying stake provided by the customer in the form of cash, FDR and/or stock to mitigate market (price) or settlement (auction) risk.

Exposure

The aggregate of the customer’s obligations arising out of buy + sell trades awaiting settlement in the cash segment and profit/ loss amounts that are yet to be settled on the closed positions.

Exposure multiple

The number of times that exposure is allowed on the underlying margin on the cash segment would have to be made either on the availability of cash margin or on the availability of the stocks (which are to be sold) in our margin account, by executing a transfer before any order is initiated.

Stock qualifying for margin in cash segment transactions

Securities in the approved list of Kalpataru.

Total Deposit

The aggregate of client deposit available with us in the form of cash, shares (after applicable hair cut) and FDR.

NATURE OF CUSTOMER TRANSACTIONS

Intraday - Cash segment

The amounts of purchase (or sale) in a scrip on any trading day that is reversed by the end of the day by making a contra sale (or purchase) of the exact same quantity, thereby nullifying the original position.

Delivery Trades

The net purchase or sale of a scrip in a client account that is settled by way of a delivery on T+2(or as per settlement schedule). Delivery in respect of sale transactions in the cash segment has to be settled by the client by tendering securities in demat form before the pay-in deadline. Else the client faces the risk of auction.

Sell against Buying

A purchase order executed on the Exchange today and the (undelivered) purchased stock sold in its entirety on the next trading day. In this case the first transaction would be settled on T+2 while the sale would be settled on the third business day after the purchase transaction.

Note

Kalpataru Multiplier Ltd. will not be responsible for any Short payout of security from exchange.

MANAGEMENT OF RISK

We have margin based automated RMS system. Total deposits of the clients are uploaded in the system and client may take exposure on the basis of margin applicable for respective security as per VAR based margining system of the stock exchange and / or margin defined by RMS based on their Risk perception. Client may take benefit of “credit for sale” i.e, benefit of share held as margin by selling the same by selecting delivery option through order entry window on the trading platform, the value of share sold will be added with the value of deposit and on the basis of that client may take fresh exposure.

In case of exposure taken on the basis of shares margin the payment is required to be made before the exchange pay in date otherwise it will be liable to square off after the pay in time or any time due to shortage of margin.

For Example

Client XYZ trade in Capital Market Segment and having
Ledger Balance Rs.500000/- Cr.
Stock Before Hair Cut Rs. 250000/-
Stock After Hair Cut Rs. 175000/-
Total Deposit Rs.675000/- Cr.

Kalpataru Multiplier Ltd.

Kalpataru is a wishful Devine Tree and in present context a widely Trusted, Time tested and Transparent Share Broker, Investment Advisor and D.P. of this region.

registration nos:

Kalparatu Multiplier Ltd.: Bombay Stock Exchange Ltd. (BSE): SEBI Regn. No. INB011115236, MEMBER ID : 3016, National Stock Exchange Ltd. (NSE) SEBI Regn. No. INB-231115230, MEMBER ID : 11152, Multi Commodity Exchange (MCX): FMC Regn. No. MCX/TCM/PROP/0834,

National Commodities Exchange of India (NCDEX): FMC Regn. No. NCDEX/TCM/PROP/0896, MEMBER ID : 00921 INZ000045136

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