Version 2.

DotEx International Limited Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (East), Mumbai 51, Maharashtra. E-mail support now@nse.co.in Website www.nowonline.in Contact number 1800 22 00 52 (Toll free)

Table of Content

1. 2.

Introduction ................................................................................................... 5 Category ....................................................................................................... 6 2.1 2.2 2.3 2.4 Warning percentages alert ....................................................................... 7 Multiplier field ........................................................................................... 7 Limit field................................................................................................ 10 RMS Rules............................................................................................. 11 Assign Basket ................................................................................. 11 Board lot Quantity Limit ................................................................... 11 Buy Exposure .................................................................................. 11 Buy Exposure Limit ......................................................................... 11 Check Buy Amount used for MFSS ................................................. 12 Check buy security limit................................................................... 12 Check CAC amount used ................................................................ 12 Check CAC Amount used Limit ....................................................... 12 Check holdings ................................................................................ 12 Check holdings for MFSS ............................................................ 12 Check NRI Basket........................................................................ 12 Check Option Intrinsic Value ........................................................ 13 Check sell security limit ................................................................ 14 Consider Adhoc only cash ........................................................... 14 Consider Collateral ...................................................................... 14 Consider collateral on negative cash margin ............................... 14 Consider Collateral only for FO .................................................... 14 Consider Realized Loss ............................................................... 14 Consider Realized Profit and Loss ............................................... 15 Consider Unrealized Loss ............................................................ 15 Consider Unrealized Profit and Loss............................................ 15 Dont allow M to M loss on collateral ............................................ 15 Dont auto square off .................................................................... 15 Exposure Margin CDS order level................................................ 15 Exposure Margin Commodity order level ..................................... 16 Exposure margin FO and Commodities trade level...................... 16 Exposure Margin Fo order level ................................................... 16 Gross Exposure ........................................................................... 16 Gross Exposure derivatives limit .................................................. 16 Gross Exposure for derivatives .................................................... 17 Gross Exposure Limit ................................................................... 17 Gross Exposure trade level .......................................................... 17 Gross Exposure Trade Level Limit ............................................... 17 ICEX Var Margin Order level........................................................ 17
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2.4.1 2.4.2 2.4.3 2.4.4 2.4.5 2.4.6 2.4.7 2.4.8 2.4.9 2.4.10 2.4.11 2.4.12 2.4.13 2.4.14 2.4.15 2.4.16 2.4.17 2.4.18 2.4.19 2.4.20 2.4.21 2.4.22 2.4.23 2.4.24 2.4.25 2.4.26 2.4.27 2.4.28 2.4.29 2.4.30 2.4.31 2.4.32 2.4.33 2.4.34

User manual for RMS

2.4.35 2.4.36 2.4.37 2.4.38 2.4.39 2.4.40 2.4.41 2.4.42 2.4.43 2.4.44 2.4.45 2.4.46 2.4.47 2.4.48 2.4.49 2.4.50 2.4.51 2.4.52 2.4.53 2.4.54 2.4.55 2.4.56 2.4.57 2.4.58 2.4.59 2.4.60 2.4.61 2.4.62 2.4.63 2.4.64 2.4.65 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 3. 4. 5.

Minimum Order Quantity .............................................................. 18 M To M Loss Limit........................................................................ 18 NMCE Var margin order level ...................................................... 18 No Validation................................................................................ 18 Only CNC No Intra day square off ............................................... 18 Option Intrinsic Value based on spot price ................................... 18 Order Quantity ............................................................................. 19 Order Value.................................................................................. 19 Pending Buy Order Value ............................................................ 19 Pending Order Value ................................................................... 20 Pending Sell Order Value............................................................. 20 Position Limit................................................................................ 20 Restrict Fresh Long...................................................................... 20 Restrict Fresh short ...................................................................... 20 Restricted Basket ......................................................................... 20 Scrip basket margin order level.................................................... 20 Scrip basket margin trade level .................................................... 21 Scrip Margin Order Level ............................................................. 21 Scrip Margin Trade Level ............................................................. 21 Sell Exposure ............................................................................... 21 Sell Exposure Limit ...................................................................... 21 Span Margin order level ............................................................... 22 Span Margin Trade level .............................................................. 22 Turnover order level ..................................................................... 22 Turnover order level limit.............................................................. 22 Var and ELM Margin Order Level ................................................ 22 Var and ELM Margin Trade Level ................................................ 22 VAR margin order level ................................................................ 23 VAR margin trade level ................................................................ 23 Var, ELM and adhoc Order Level................................................. 23 Var, ELM and adhoc Trade Level ................................................ 23

Modify category ..................................................................................... 27 View category ........................................................................................ 27 RMS Limits ............................................................................................ 28 Update Limits ......................................................................................... 28 Preset RMS Limit: .................................................................................. 30 View Limits ......................................................................................... 31 Rejected List ....................................................................................... 33 Branch Adhoc to Client ....................................................................... 33

Scrip Margin ................................................................................................ 35 RMS Ban Symbol........................................................................................ 36 Scrip Basket ................................................................................................ 37

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User manual for RMS

5.1 5.2 5.3 5.4 5.5 6. 6.1 6.2 6.3 6.4 6.5 7. 8.

Add Scrip Basket ................................................................................... 37 Modify Scrip Basket ............................................................................... 37 Delete Scrip Basket ............................................................................... 37 Assign Scrip Basket ............................................................................... 38 Get Scrip Basket: ................................................................................... 38 Add Restricted Scrip Basket .................................................................. 39 Modify Restricted Basket ....................................................................... 39 Delete Restricted Basket ....................................................................... 39 Assign Restricted Basket ....................................................................... 39 Get Restricted Basket ............................................................................ 40

Restricted Scrip Basket............................................................................... 39

NRI Scrip Basket......................................................................................... 41 RMS Blocking ............................................................................................. 42 8.1 8.2 8.3 8.4 Block Type NON-SQR OFF ................................................................ 42 Block Type ALL................................................................................... 42 Block Type SQR OFF ......................................................................... 43 Unblock .................................................................................................. 43 Execute Auto square off ........................................................................ 44 Execute Auto square off Unblock........................................................... 44 Execute pre Auto square off .................................................................. 44 Admin square off .................................................................................... 45 RMS Limit Update .............................................................................. 46 RMS Rule ........................................................................................... 49 RMS Rejection.................................................................................... 50 RMS Blocking ..................................................................................... 50 Square off ........................................................................................... 51 RMS Ban Symbol ............................................................................... 51

9.

Square off feature ....................................................................................... 44 9.1 9.2 9.3 9.4 10.1 10.2 10.3 10.4 10.5 10.6

10. FAQ ............................................................................................................ 46

Copyright

User manual for RMS

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The information contained herein may not be copied, retransmitted, disseminated, distributed, sold, resold, leased, rented, licensed, sublicensed, altered, modified, adapted, or stored for subsequent use for any such purpose, in whole or in part, in any form or manner or by any means whatsoever, to or for any person or entity, including the purchaser, without DotEx International Ltd. express prior written consent.

User manual for RMS

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1. Introduction Risk Management System (RMS) is a very critical offering of NOW. NOW has got a rule based RMS module. These rules work in combination with few pre-defined product tags. The product tags available in NOW are: MIS: Margin Intraday square off CNC: Cash and carry NRML: Normal

The behaviors of these products are purely dependent on the set of rules that are selected in the risk template which is known as the category. This highly flexible and configurable tool enables to monitor the risk profile of client/dealer on an online basis. This is monitored across the segments, exchanges, products as well as specific symbols if required. Limits are set for the hierarchy of users, clients etc. as per the risk assessment of each user/client. Salient features Real time margin computation Rule based risk management system (RMS) Customise risk management at various levels o Branch o Users o Client group o Clients o Segment o Product Prompt risk management rejection alerts Comprehensive multi- tier risk management system Margin computation as per exchange norms

User manual for RMS

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2. Category Category is a template which comprises of various risk management rules. Create different RMS rule category by naming it and assigning it to different entities based on the risk relationship. Refer Annexure C for commonly used RMS rule.

Add rules to the category by using drop down from Filter Rules. Filtered rule includes limit rule, multiplier rule, all rules and exchange wise as well i.e. CDS- NSE Currency Derivative Segment, CM Cash Market, COM Commodities Market, F&O NSE Futures & Options. For adding rule to the category, select the rule and click on add button or double click on the rule; or for removing rule from the category select the desired rule from Selected rule field and click on Del button or double click on the rule. In case risk manager dont want to do any risk management for an entity, then select the rule No Validation from the set of rules. This rule ensures that the entity is not checked for any limits; however in case of an entity is blocked from RMS blocking then the same is validated. Risk management is divided in two modes viz. multiplier and limit basis. o Multiplier based rule: In case of multiplier mode of risk management all margin computations are done against a single value i.e. Cash deposit. The multiplier number as defined in corresponding rules is multiplied with cash margin available. o Limit based rule: In case of limit mode, each RMS rules is validated against the respective field or value which is set from RMS update limit window. Set warning alerts at various threshold levels for both modes of risk management, which are as follows.

User manual for RMS

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2.1

Warning percentages alert Set percentage for the following and view alert messages whenever the assigned entities hit the limit. o Mark to Market (MTM) Pc: Set mark to market percentage in number. An alert is generated whenever an entity to whom the category is assigned makes MTM loss which is more than the specified percentage of the available limit. o M To M Pc Incr: Set a number after which M to M Pc alert message gets generated on an incremental basis. For e.g. M to M Pc is set as 70, and M to M Pc Incr is set as 5 then after the first alert gets generated at 70 the subsequent alerts will be generated whenever user or client hit M to M Pc at 75,80,85. o Margin Pc: Set margin percentage in number. An alert is generated when percentage derived from margin used to cash available margin exceeds the specified percentage in margin pc field. o Margin Pc Incr: Set a number after which Margin Pc alert message gets generated on an incremental basis. For e.g. Margin Pc is set as 90, and Margin Pc Incr is set as 2 then alert get generated whenever user or client hit Margin Pc at 92,94,96. Multiplier field Exposure multiplier: Set a number which allows the entity to create exposure in the cash / derivative segment up to number of times of the actual cash margin. This exposure is taking into account the orders and trades done for the product MIS and NRML in the cash / derivative segment. Turnover multiplier: Set a number which allows the entity to make a turnover up to number of times of the available cash margin. The turnover computation takes into account the pending orders as well as the actual trades done in the cash as well as the FO segment for the product MIS and NRML. Buy Exposure multiplier: Set a number which allows the entity to create open exposure on the buy orders and trades done upto number of times of the actual cash margin. The buy exposure takes into account the buy orders for the cash segment for the product MIS and NRML only. Sell Exposure multiplier: Set a number which allows the entity to create open exposure on the sell orders and trades done upto number of times of the actual cash margin. The sell exposure takes into account the buy orders for the cash segment for the product MIS and NRML only M to M multiplier: Set a number to allow the entity to make maximum of MTM loss upto number of times of the actual cash margin in cash and derivative segment. In other words you can allow this rule to utilise higher or lower M to M loss from the cash margin available. For e.g. Available cash margin is Rs10000, Unrealised loss is Rs100, o M to M Multiplier = 1, user or client can place order upto Rs9000 [10000 {1000 / 1(MTM Multiplier)}].
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2.2

User manual for RMS

M to M Multiplier = 0.5, user or client can place order upto Rs8000 [10000 {1000 / 0.5(MTM Multiplier)}]. o M to M Multiplier = 2, user or client can place order upto Rs9500 [10000 {1000 / 2(MTM Multiplier)}]. Margin Factor: Set a number which acts as a factor for blocking the margin for the entities. This factor is applicable for the VAR, ELM rules in case of the cash segment and in case of FO this factor is applicable for the span and exposure margin. For e.g. Available cash margin is Rs.10000, VaR margin for security is Rs.1000 & SPAN margin is Rs.2000, o Margin factor = 1, user or client can place order upto Rs7000 [10000 {1000 x 1(margin factor)} {2000 x 1(margin factor)}]. o Margin factor = 0.5, user or client can place order upto Rs8500 [10000 (1000 x 0.5) (2000 x 0.5)]. o Margin factor = 2, user or client can place order upto Rs.4000 [10000 (1000 x 2) (2000 x 2)]. o Product Wise RMS: Risk management system provides user an option to provide leverage based on products. Risk manager can define different multiplier factors for CNC, MIS and NRML product in cash and derivative segments. Following are product wise fields: o CNC Buy Factor: Define a number to provide leverage on cash segment for purchase in CNC product type. Number entered in buy factor field should be 1 or less than 1. o Cash MIS factor: Define a number to provide leverage on order placed in cash segment for MIS product type. o Cash NRML Factor: Define a number to provide leverage on order placed in cash segment for NRML product type. o Derivative MIS Factor: Define a number to provide leverage on order placed in derivative segment for MIS product type. o Derivative NRML Factor: Define a number to provide leverage on order placed in derivative segment for NRML product type. o Product wise multiplier factor is applicable for following rules: Check CAC amount used* Var margin order level Var margin trade level Var and ELM margin order level Var and ELM margin trade level Var, ELM and Adhoc order level Var, ELM and Adhoc trade level Scrip basket margin order level Scrip basket margin trade level Scrip margin order level Scrip margin trade level Span Margin Order level Span Margin Trade level Exposure Margin Fo order level o
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Exposure Margin CDS order level Exposure Margin commodities order level Exposure Margin FO and commodities trade level For Check CAC amount used rule, CNC buy factor is applicable. Margin used is calculated in case of product wise (MIS / NRML) margin factor as: Margin Used in case of MIS / NRML order = Margin as per above rule X Margin Factor X Product wise multiplier factor Margin Used in case of CNC order = Order value x CNC Buy Factor Margin Factor Product Type Factor Cash Available Margin Var Margin for BEL in NRML Margin Used = Var Margin x Margin Factor Balance Cash Var Margin for ABB in MIS Margin Used = Var Margin x Margin Factor Balance Cash Order Value for SBIN in CNC Margin Used = Order Value x CNC Factor Balance Cash Margin Factor Product Type Factor Cash Available Margin Var Margin for ACC in NRML Margin Used = Var Margin x Margin Factor (6 qty) Illustration 2: 2 NRML MIS 1.5 0.5 70467.26 233.07 4195.26 CNC Factor 1 Illustration 1: 3 CNC NRML MIS Factor 1.5 0.5 50000.00 233.07 1048.82 48951.18 8500.00 12750.00 36201.18 0 36201.18 36201.18

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Balance Cash Span + Exp Margin for NIFTY in MIS Margin Used = Order value x Margin Factor ( 2 lot) Balance Cash Span + Exp Margin for USDINR in NRML Margin Used = Order value x Margin Factor (4 qty) Balance Cash

66272.00 25420.00 50840.00 15432.00

1286.00 15432.00 0

2.3 Limit field Risk parameter is used in cash as well as derivative segment. Set rules for the following in absolute value terms: o Max Order Qty: Define a number upto which maximum order quantity is permissible in single order entry. In other words the number of security/contract placed by an entity in a single order cannot exceed the quantity assigned against the Max Order Qty field. For e.g. Max Order Qty set as 1000 quantity, then single order placed by an entity cant exceed 1000 quantities. o Max Order Value: Define a number upto which maximum order value is permissible in single order entry. In other words the value placed by an entity in a single order cannot exceed the value assigned in Max Order Value field. For e.g. Max Order Value set as Rs.100000, then single order placed by an entity cant exceed Rs.100000. o Max Lot Size: Define a number upto which maximum order lot is permissible in single order entry in derivative segment. In other words the number of contract placed by an entity in a single order cannot exceed the lot size assigned against the Max Lot Size field. For e.g. Max Lot Size set as 10 lots, then single order placed by an entity cant exceed quantities (10xlot size). o Min Order Qty: Define a number upto which minimum order quantity is entered in single order entry. In other words the number of security/contract placed by an entity in a single order contains quantity assigned in Min Order Qty field. For e.g. Min Order Qty set as 50 quantities, then single order placed by an entity cant be less than 50 quantities. o Pending order value: Set a value to restrict entity from placing order upto maximum permissible pending orders i.e. order not yet traded (unmatched order). o Pending buy order value: Set a value to restrict entity from placing buy order upto maximum permissible pending buy orders i.e. buy order not yet traded (unmatched buy order). o Pending sell order value: Set a value to restrict entity from placing sell order upto maximum permissible pending sell orders i.e. sell order not yet traded (unmatched sell order).
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Intrinsic Percentage: Define a number for considering option price for computing eligible option price limit upto which the order is allowed in option contract. For e.g. Intrinsic Percentage set as 5, then eligible option price limit is computed based on intrinsic value and intrinsic percentage.

2.4

RMS Rules 2.4.1 Assign Basket Assign basket rule enable the entities for placing order in specified security in cash segment. Create basket of securities from Surveillance Scrip Basket Add Scrip Basket. Select the rule Assigned Basket and click on Add button. During order validation, order is validated against scrip added to the basket in cash segment only. 2.4.2 Board lot Quantity Limit Rule is applicable for derivative segment only. Board lot quantity rule corresponds to Max Lot Size field in category window. The order validation for derivative orders considers lot numbers as defined in Max Lot Size with this rule. For e.g. Max. Lot Qty. set as 2 Lot, then single order placed by an entity for NFO in NIFTY cant exceed 100 quantities. During order modification the quantity is validated against this rule i.e. quantity modification is restricted upto lot size as defined in Max Lot Qty. 2.4.3 Buy Exposure Buy Exposure is calculated for all buy orders (pending orders + trades) present in that validation level in the cash segment for MIS and NRML product type. During order validation, buy exposure is reduced from available cash by taking buy exposure multiplier into consideration. Order and trades of other segment is ignored while calculating Buy Exposure. 2.4.4 Buy Exposure Limit Buy Exposure is calculated for all buy order (pending orders + trades) present in that validation level in the cash segment for MIS and NRML product type. During order validation, Buy Exposure value in this case is reduced from the value specified in the Buy Exposure Limit. Order and trades of other segment is ignored while calculating buy exposure Limit.

User manual for RMS

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2.4.5 Check Buy Amount used for MFSS Rule is applicable for MFSS segment only. On placing subscription request the order is validated against cash available margin. 2.4.6 Check buy security limit Buy security limit restrict the entity from placing buy order in quantity term for single security. During order validation, buy order quantity limit is checked by taking into account all buy order quantity. Illustration: Buy security limit is specified as 5000 in quantity terms and entity places buy order in quantity as 1000, 2000, 1000, and 1500. The first three buy order is accepted by RMS, however the last buy order of 1500 is rejected as the total order quantity has exceeded 5000 quantity. 2.4.7 Check CAC amount used CNC amount used is calculated for all pending orders + trades under CNC product type in the Cash segment. During order validation, CNC amount is reduced from available cash margin by taking CNC buy factor into consideration. Order and trades of other segment is ignored while calculating CNC amount. 2.4.8 Check CAC Amount used Limit CNC amount used limit is calculated for all pending orders + trades under CNC product type in the cash segment. During order validation, CNC amount is reduced from Delivery Amount Limit value in RMS Set limit. Order and trades of other segment is ignored while calculating CNC amount. 2.4.9 Check holdings Rule is applicable for CNC product type in cash segment only. Sell order is validated against the holding quantity as entered/uploaded in Surveillance Holdings / T1 Holdings. 2.4.10 Check holdings for MFSS Rule is applicable for MFSS segment only. Redemption request is validated against entered/uploaded in Mutual Fund Holdings.

the

holding

units

as

2.4.11 Check NRI Basket Rule is applicable for CNC product type in cash segment only. During order validation for clients, order is validated against the % allowed for issued capital of selected security. This rule works along with NRI scrip basket under surveillance.

User manual for RMS

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2.4.12 Check Option Intrinsic Value Rule is applicable only for option sell contracts. All the out-of-money (OTM) orders is accepted with this rule and for in-themoney (ITM) options, if premium is less than defined % of intrinsic value, the sell order will be rejected. Illustration: The expected result of this rule for Index call and put options at different strikes is given below:
Spot price/LTP 4276.00 4276.00 4276.00 4276.00 Strike Price 3900.00 4000.00 4100.00 4200.00 4300.00 4400.00 4500.00 4600.00 Strike Price 3900.00 4000.00 4100.00 4200.00 4300.00 4400.00 4500.00 4600.00 Intrinsic Value 376.00 276.00 176.00 76.00 -24.00 -124.00 -224.00 -324.00 Intrinsic Value -376.00 -276.00 -176.00 -76.00 24.00 124.00 224.00 324.00 Intrinsic % 50.00% 70.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% Intrinsic % 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% Eligible Option Price 188.00 193.20 88.00 38.00 -12.00 -62.00 -112.00 -162.00 Eligible Option Price -188.00 -138.00 -88.00 -38.00 12.00 62.00 112.00 162.00

Call Option In the money

Remarks Sell orders will be rejected below price 188 Sell orders will be rejected below price 193.2 Sell orders will be rejected below price 88 Sell orders will be rejected below price 38 Sell order will be accepted outright Sell order will be accepted outright Sell order will be accepted outright Sell order will be accepted outright

Out money

of 4276.00 4276.00 4276.00 4276.00 Spot price/LTP 4276.00 4276.00 4276.00 4276.00

Put Option Out money of

Remarks Sell order will be accepted outright Sell order will be accepted outright Sell order will be accepted outright Sell order will be accepted outright Sell orders will be rejected below price 12 Sell orders will be rejected below price 62 Sell orders will be rejected below price 112 Sell orders will be rejected below price 162

In the money

4276.00 4276.00 4276.00 4276.00

User manual for RMS

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2.4.13 Check sell security limit Sell security limit restrict the entity from placing sell order in quantity term for single security. During order validation, sell order quantity limit is checked by taking into account all buy order quantity. Illustration: Sell security limit is specified as 5000 in quantity terms and entity places sell order in quantity as 1000, 2000, 1000, and 1500. The first three sell order is accepted by RMS, however the last sell order of 1500 is rejected as the total order quantity has exceeded 5000 quantity. 2.4.14 Consider Adhoc only cash Rule is applicable for cash segment only. During order validation adhoc cash amount utilized is checked for orders in MIS and NRML product type. This rule ensures that the client get adhoc limit benefit only for cash segment. 2.4.15 Consider Collateral During order validation, collateral value of holdings from Surveillance Holding Update Holdings/Collateral Valuation is considered for cash as well as derivative segment. Alternatively, enter direct collateral value in RMS update limit window instead of using collateral valuation calculated through the system i.e. from Update Holdings/Collateral Valuation. 2.4.16 Consider collateral on negative cash margin Rule is applicable for cash and derivative segment. During order validation, collateral value of holdings or direct collateral is considered with negative cash margin available. The rule should be supplemented with Consider Collateral rule. 2.4.17 Consider Collateral only for FO Rule is applicable for derivative segment only. During order validation, collateral value of holdings or the value specified in the direct collateral is considered. The rule should be supplemented with Consider Collateral rule. 2.4.18 Consider Realized Loss Rule computes mark to market loss amount for all closed position. During order validation, realized loss amount is reduced from available cash margin.

User manual for RMS

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2.4.19 Consider Realized Profit and Loss Rule computes mark to market profit and/or loss amount for all closed position. During order validation, realized profit and loss amount is added or reduced from available cash margin. 2.4.20 Consider Unrealized Loss Rule computes mark to market loss amount for all open position. During order validation, unrealized loss amount is reduced from available cash margin. 2.4.21 Consider Unrealized Profit and Loss Rule computes mark to market profit and/or loss amount for all open position. During order validation, unrealized profit and loss amount is added or reduced from available cash margin. 2.4.22 Dont allow M to M loss on collateral During order validation, collateral value either based on holdings or direct collateral is not considered for mark to market losses. For e.g. Cash Available Margin = 1000; Collateral Value = 300 & MTM Loss = 1100. When an order is placed which requires margin for 1200, the collateral amount wont be considered and order get rejected. The rule should be supplementary either of the following rules: o Consider Realized Loss o Consider Realized Profit and Loss o Consider Unrealized Loss o Consider Unrealized Profit and Loss 2.4.23 Dont auto square off This RMS rule excludes client from being purview under auto-square off feature. 2.4.24 Exposure Margin CDS order level Exposure margin is calculated for all pending orders + trades present in that validation level in currency segment only. During order validation, exposure margin is reduced from available cash by taking margin factor and product wise factor into consideration. Order and trades of other segment is ignored while calculating exposure margin. Exchange based exposure margin is charged for currency segment.

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2.4.25 Exposure Margin Commodity order level Exposure margin is calculated for all pending orders + trades present in that validation level in commodity segment only. During order validation, exposure margin is reduced from available cash by taking margin factor and product wise factor into consideration. Order and trades of other segment is ignored while calculating exposure margin. Exchange based exposure margin is charged for commodity segment. 2.4.26 Exposure margin FO and Commodities trade level Exposure margin is calculated for trades present in that validation level in the future and option & commodity segment only. During order validation, exposure margin is reduced from available cash by taking margin factor and product wise factor into consideration. Order and trades of other segment is ignored while calculating exposure margin. Exchange based exposure margin is charged for F&O and commodity segment. 2.4.27 Exposure Margin Fo order level Exposure margin is calculated for all pending orders + trades present in that validation level in F&O segment only. During order validation, exposure margin is reduced from available cash by taking margin factor and product wise factor into consideration. Order and trades of other segment is ignored while calculating exposure margin. Exchange based exposure margin is charged for F&O segment. 2.4.28 Gross Exposure Gross Exposure is calculated for all pending orders + trades in the cash segment for product type as MIS and NRML. During order validation, Gross Exposure is reduced from available cash by taking Exposure Multiplier into consideration. Order and trades of other segment is ignored while calculating Gross Exposure. 2.4.29 Gross Exposure derivatives limit Gross exposure limit is calculated for all pending orders + trades present in that validation level in the derivative segment for product type as MIS and NRML only. During order validation, Gross Exposure for derivative value in this case is reduced from the value specified in the Gross Exp Der Limit in RMS set limit. Order and trades of other segment is ignored while calculating Gross Exposure Limit.
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User manual for RMS

2.4.30 Gross Exposure for derivatives Gross Exposure is calculated for all pending orders + trades in the derivative segment for product type as MIS and NRML. During order validation, Gross Exposure on derivative is reduced from available cash by taking Exposure Multiplier into consideration. Order and trades of other segment is ignored while calculating Gross Exposure. 2.4.31 Gross Exposure Limit Gross exposure limit is calculated for all pending orders + trades present in that validation level in the cash segment for product type as MIS and NRML only. During order validation, Gross Exposure value in this case is reduced from the value specified in the Exposure Limit. Order and trades of other segment is ignored while calculating Gross Exposure Limit. 2.4.32 Gross Exposure trade level Gross Exposure is calculated for all trades in the cash segment for product type as MIS and NRML. During trade validation, Gross Exposure is reduced from available cash by taking Exposure Multiplier into consideration. Order and trades of other segment is ignored while calculating Gross Exposure. 2.4.33 Gross Exposure Trade Level Limit Gross exposure is calculated for all trades present in that validation level in the cash segment for product type as MIS and NRML only. During trade validation, Gross Exposure value in this case is reduced from the value specified in the Exposure Limit. Order and trades of other segment is ignored while calculating Gross Exposure Limit 2.4.34 ICEX Var Margin Order level VAR margin is calculated for all pending orders + trades present in that validation level under product type as MIS and NRML in the ICEX segment. During order validation, VAR margin is reduced from available cash by taking margin factor and product wise factor into consideration. Order and trades of other segment is ignored while calculating ICEX VAR margin. Exchange based var margin is charged for ICEX segment.

User manual for RMS

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2.4.35 Minimum Order Quantity Rule is applicable for Min Order Qty field in category window. This rule enables entity to fetch order quantity as defined above, in order entry window. 2.4.36 M To M Loss Limit Mark to market limit is calculated for all trades present in that validation level in cash as well as derivatives segment. During order validation, mark to market loss is checked against value defined in M to M loss limit field in RMS Set Limit window. 2.4.37 NMCE Var margin order level VAR margin is calculated for all pending orders + trades present in that validation level under product type as MIS and NRML in the NMCE segment. During order validation, VAR margin is reduced from available cash by taking margin factor and product wise factor into consideration. Order and trades of other segment is ignored while calculating NMCE VAR margin. Exchange based var margin is charged for NMCE segment. 2.4.38 No Validation An entity assigned with a rule No Validation then limit is not checked for any orders; however in case the entity is blocked from RMS blocking then the same is validated. 2.4.39 Only CNC No Intra day square off This rule ensures that entity places orders only in CNC product type in cash segment. In other words, this rule doesnt allow entity place orders in MIS or NRML product type in cash segment. 2.4.40 Option Intrinsic Value based on spot price The rule is applicable only for option buy and sell contract. A price range is calculated depending on the spot price of stock or index value. The orders within the price range are accepted. The price range dynamically changes depending upon spot price. The upper price limit is calculated as: Intrinsic Value + (Intrinsic % * Spot price) The lower price limit is calculated as: Intrinsic Value - (Intrinsic % * Spot price) The price range where both upper and lower limits are 0 is rejected outright. Illustration: The price ranges as per this rule for Index call and put options at different strikes is given below:

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Call Option In the Money

Out of money

Spot price/LTP 4276.00 4276.00 4276.00 4276.00 4276.00 4276.00 4276.00 4276.00 4276.00 4276.00 Spot price/LTP 4276.00 4276.00 4276.00 4276.00 4276.00 4276.00 4276.00 4276.00 4276.00 4276.00

Strike Price 3800.00 3900.00 4000.00 4100.00 4200.00 4300.00 4400.00 4500.00 4600.00 4700.00 Strike Price 3800.00 3900.00 4000.00 4100.00 4200.00 4300.00 4400.00 4500.00 4600.00 4700.00

Intrinsic Value 476.00 376.00 276.00 176.00 76.00 -24.00 -124.00 -224.00 -324.00 -424.00 Intrinsic Value -476.00 -376.00 -276.00 -176.00 -76.00 24.00 124.00 224.00 324.00 424.00

Intrinsic % 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Intrinsic % 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

Higher Limit 689.80 589.80 489.80 389.80 289.80 189.80 89.80 -10.20 -110.20 -210.20 Higher Limit -262.2 -162.2 -62.2 37.8 137.8 237.8 337.8 437.8 537.8 637.8

Lower Limit 262.20 162.20 62.20 -37.80 -137.80 -237.80 -337.80 -437.80 -537.80 -637.80 Lower Limit -689.8 -589.8 -489.8 -389.8 -289.8 -189.8 -89.8 10.2 110.2 210.2

Effective Price Range 689.8 - 262.2 589.8 - 162.2 489.8 - 62.2 389.8 - 0 289.8 - 0 189.8 - 0 89.8 - 0 0-0 0-0 0-0 Effective Price Range 0-0 0-0 0-0 37.8 - 0 137.8 - 0 237.8 - 0 337.8 - 0 437.8 - 10.2 537.8 - 110.2 637.8 - 210.2

Put Option Out of money

In the money

2.4.41 Order Quantity Rule is applicable for Max Order Qty field in category window. This rule enables entity to place order upto quantity as defined above, in a single order entry window. 2.4.42 Order Value Rule is applicable for Max Order Value field in category window. This rule enables entity to place order upto order value as defined above, in a single order entry window. Order value computed for different segment is as follows: o Cash : Price x Quantity o Options : Premium x Quantity o Currency : Price x Quantity x Lot Size o Derivative : Price x Quantity 2.4.43 Pending Buy Order Value Buy pending order value is calculated for all buy pending orders present in that validation level for all the segments. During order validation, buy pending order value is restricted to the value specified in Pending buy order value in the category.
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User manual for RMS

2.4.44 Pending Order Value Pending order value is calculated for all pending orders present in that validation level for all the segments. During order validation, pending order value is restricted to Pending order value in the category. 2.4.45 Pending Sell Order Value Sell pending order value is calculated for all sell pending orders present in that validation level for all the segments. During order validation, sell pending order value is restricted to the value specified in the Pending sell order value in the category. 2.4.46 Position Limit Limit position is set from Surveillance Scrip margin Client position limit or Broker position limit. On setting this limit entity is restricted from placing the order exceeding the limit specified in above fields. 2.4.47 Restrict Fresh Long Rule restricts entity from placing any fresh buy order in any of the enabled segment. However entity can place square off orders. 2.4.48 Restrict Fresh short Rule restricts entity from placing any fresh sell order in any of the enabled segment. However entity can place square off orders. 2.4.49 Restricted Basket This rule disables the entity from placing order in specified securities. Create basket of restricted securities from Surveillance Restricted Scrip Basket Add Restricted Basket. Select the rule Assigned Basket and click on Add button. During order validation, order is validated against security added to the restricted basket in cash segment only. 2.4.50 Scrip basket margin order level Margin is calculated for all pending orders + trades under product type as MIS and NRML in the cash segment for the assigned scrip basket. Create basket of securities from Surveillance Scrip Basket Add Scrip Basket. The margin percentage is blocked depending upon the percentage specified against each scrip/s in the basket. Order is validated only if available cash is more than required scrip basket margin. Order and trades of other segment is ignored while calculating Scrip basket margin.
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User manual for RMS

Scrip margin is computed by taking margin factor and product wise factor into consideration. 2.4.51 Scrip basket margin trade level Margin is calculated for all trades under product type as MIS and NRML in the cash segment for the assigned scrip basket. Create basket of securities from Surveillance Scrip Basket Add Scrip Basket. Trade is validated only if available cash is more than scrip basket margin. Trades of other segment are ignored while calculating Scrip basket margin. Scrip margin is computed by taking margin factor and product wise factor into consideration. 2.4.52 Scrip Margin Order Level Scrip margin is calculated for all pending orders + trades present in that validation level under product type as MIS and NRML in the cash segment. Define scrip margin from Surveillance Scrip Margin. During order validation, Scrip Margin % specified is reduced from available cash by taking margin factor and product wise factor into consideration. Scrip margin is computed by multiplying scrip margin % to order value. Order and trades of other segment is ignored while calculating Scrip Margin. 2.4.53 Scrip Margin Trade Level Scrip margin is calculated for all trades present in that validation level under product type as MIS and NRML in the cash segment. Define scrip margin from Surveillance Scrip Margin. During trade validation, Scrip Margin % specified is reduced from available cash by taking margin factor and product wise factor into consideration. Scrip margin is computed by multiplying scrip margin % to order value. Trades of other segment are ignored while calculating Scrip Margin. 2.4.54 Sell Exposure Sell Exposure is calculated for all sell order (pending orders + trades) present in that validation level in the cash segment for product type as MIS and NRML only. During order validation, sell exposure is reduce from available cash by taking Sell Exposure Multiplier into consideration. Order and trades of other segment is ignored while calculating Sell Exposure. 2.4.55 Sell Exposure Limit Sell exposure is calculated for all sell order (pending orders + trades) present in that validation level in the cash segment for product type as MIS and NRML only.

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During order validation, Sell Exposure value in this case is reduced from the value specified in the Sell Exposure Limit. Order and trades of other segment is ignored while calculating sell exposure limit. 2.4.56 Span Margin order level Span Margin is calculated for all pending orders + trades present in that validation level in all segments. During order validation, span margin is reduced from available cash by taking margin factor and product wise factor into consideration. Exchange based span margin is charged on selection of this rule. 2.4.57 Span Margin Trade level Span Margin is calculated for all trades present in that validation level in all segments. During trade validation, Span Margin is reduced from available cash by taking margin factor and product wise factor into consideration. 2.4.58 Turnover order level Turnover includes all the pending orders and trade placed across segment. During order validation, turnover is reduced from the available cash by taking turnover multiplier into consideration. 2.4.59 Turnover order level limit Turnover is calculated for all trades present in that validation level across segment. During trade validation, turnover value in this case is reduced from the value specified in the Turnover Limit in RMS set Limit. 2.4.60 Var and ELM Margin Order Level VAR margin is calculated for all pending orders + trades present in that validation level under product type as MIS and NRML in the Cash segment. During order validation, VAR as well as the ELM margin is reduced from available cash by taking margin factor and product wise factor into consideration. Order and trades of other segment is ignored while calculating VAR margin. 2.4.61 Var and ELM Margin Trade Level VAR margin is calculated for all trades present in that validation level under product type as MIS and NRML in the Cash segment. During trade validation, VAR as well as the ELM margin is reduced from available cash by taking margin factor and product wise factor into consideration. Trades of other segment are ignored while calculating VAR margin.

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2.4.62 VAR margin order level VAR margin is calculated for all pending orders + trades present in that validation level under product type as MIS and NRML in the Cash segment. During order validation, VAR margin is reduced from available cash by taking margin factor and product wise factor into consideration. Order and trades of other segment is ignored while calculating VAR margin. 2.4.63 VAR margin trade level VAR margin is calculated for all trades present in that validation level under product type as MIS and NRML in the Cash segment. During trade validation, VAR margin is reduced from available cash by taking margin factor and product wise factor into consideration. Order and trades of other segment is ignored while calculating VAR margin. 2.4.64 Var, ELM and adhoc Order Level VAR margin is calculated for all pending orders + trades present in that validation level under product type as MIS and NRML in the Cash segment. Percentage in adhoc field in scrip margin window is considered for the additional margin which is over and above the VAR and ELM. During order validation, if both VAR, ELM and adhoc margin and scrip margin is selected then, whichever is higher is levied. Margin factor and product wise factor is consideration while calculating Var, ELM and adhoc margin. Order and trades of other segment is ignored while calculating VAR / adhoc margin. 2.4.65 Var, ELM and adhoc Trade Level VAR margin is calculated for all trades present in that validation level under product type as MIS and NRML in the Cash segment. During trade validation, VAR, ELM or adhoc margin is higher is reduced from available cash by taking margin factor and product wise factor into consideration. Trades of other segment are ignored while calculating VAR / ad hoc margin. Following table is a ready reference to ensure that the rule needs to be validated form part of the category, which is assigned to the entity. For e.g. the category assigned to client X can have these rules. Sr. No. 1 2 Item Category RMS Rule with Limit Multiplier Segment/ Rule Rule product type Both Cash

Assign Basket

No Validation Scrip Assigned Basket

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4 5 6 7 8 9 10

11 12 13 14 15 16 17

18

19 20 21 22

Assign Restricted Basket Restricted Scrip Basket Margin Factor Span Margin Order Level View holding Check holdings Collateral limit Consider collateral Consider realised loss Consider realised profit and loss Consider unrealised loss Consider unrealised profit and loss Dont auto square off. Scrip basket Scrip basket margin order level. Scrip basket Scrip basket margin trade level. Span margin trade level. Turnover Turnover order level. Turnover limit Turnover order level limit. Exposure Gross Exposure Multiplier Gross Exposure for Derivative Exposure Limit Gross Exposure Limit Gross Exposure Derivative Limit Buy Exposure Buy Exposure Multiplier Sell Exposure Sell Exposure Multiplier Buy Exp. Limit Buy Exposure Limit Sell Exp. Limit Sell Exposure

Cash

Both Cash Both Both Both Both Both

Cash Cash Cash FO Both Both Cash FO Cash FO Cash Cash Cash Cash
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23 24 25 26

Buy Limit Sell Limit Del. Limit Del. Limit

Security Security Amount Amount

27 28 29 30 31 32 33 34 35 36 37 38 39

40 41 42

Max. Order Qty Max. Order Value Min Order Qty Minimum Order Quantity Pending Order Pending Order Value Value Pending Buy Pending Buy Order Value Order Value Pending Sell Pending Sell Order Value Order Value Scrip Margin Position Limit Client / Broker Scrip Margin Scrip margin order level NRI Scrip Check NRI Basket Basket. Adhoc margin Consider adhoc for only cash Gross Exposure Gross exposure trade level Exposure limit Gross exposure trade level limit Only CNC, no intra day square off for cash. Scrip margin Scrip margin trade level. Var and ELM Margin order level Var and ELM Margin Trade level

Limit Check Buy Security Limit Check Sell Security Limit Check CAS Amount Used Check CAS Amount Used Limit Order Quantity Order Value

Both Both Cash Cash

Both Both Both Both Both Both Both Cash Cash Cash Cash Cash Cash

Cash Cash Cash

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43 44 45 46 47 48 49 50

51

52

53 54

Var margin order level Var Margin Trade level Var, ELM and Adhoc order level Var, ELM and Adhoc Trade level M to M Loss M to M Loss Limit Limit Order quantity Board lot quantity limit Collateral limit Consider collateral for FO Dont allow M TO M loss on collateral. Exposure margin FO & Commodities order level Exposure margin FO & Commodities trade level Restrict Fresh Long Restrict Short Fresh -

Cash Cash Cash Cash Both FO FO Both

FO

FO

Both Both

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2.5 Modify category Goto Surveillance Category Modify category to modify or change the RMS rule for that category. Make the respective changes in the category by adding or removing rule & then click on Modify Category to save the changes. On modifying rules in the category, the changes apply retrospectively to all the entities to which the said category is assigned. To unsave the changes click on Cancel button.

2.6 View category To view created categories go to Surveillance Category View category. However, selected category cant be modified from view category function.

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2.7 RMS Limits RMS limit is a window which enables user to provide limits based on various RMS rules. RMS wont validate an order, if limits are provided without appropriate RMS rules. RMS limit window provides a flexibility to set limit at overall level or at following levels: o Segment o Exchange o Product o Trading Symbol RMS limit is set at different entity levels. However limit setting is mandatory at client level. Once user has set limits at various levels, then same cant be removed. Hence user has to take utmost caution while setting limits at multiple level. Before assigning RMS category to an entity, it is assumed that entity has been created from Entity Management and category is also created from Surveillance Category. 2.8 Update Limits Go to Surveillance RMS Limits Update Limits. Update limits feature is used to set the limits for the entity at various levels.

An RMS Update Limit window contains entity hierarchy, which displays branches, users, client group and clients. Select entity from entity hierarchy window by clicking on it or select the entity and click on refresh button.

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Alternatively, user can also filter entities from User option dropdown. User option dropdown shows following options: o Hide Entity List hides User /Client List window, to unhide it drag the hidden window from left to right of the screen. o Hide Entity Tree hides Entity Hierarchy window, to unhide it drag the hidden window beside User/Client List from left to right of the screen. o PRO displays proprietary level o Show all client user displays all Internet investors clients. o Show all clients displays all the clients. o Show all dealers displays all the users. o Show all users displays all the users and internet investor clients. Set RMS rule for the following: (it is recommended to keep all the options as ALL) o Segment o Product o Trading symbol On selecting the entity, limit information is displayed on Present Value window. Double click on limit information in Present Value for setting RMS limit.

Assign RMS category to the entity by selecting the category name from Category dropdown. Limits: Various limit value fields like Cash margin avail, adhoc margin, exposure limit, sell exp limit, etc. is applicable only when appropriate RMS rule is selected in category assigned. o Cash Margin Avail: Set cash deposit of entity by entering the absolute value. This field restricts entity from placing any order exceeding this value.

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o o o

o o o

o o o

Adhoc Margin: Set temporary limit for the day by entering the absolute value in Adhoc Margin field, which is over and above the limit set in cash margin available. Del. Amt. Limit: Set the delivery amount limit by entering absolute value. This limit restricts the entity from placing the order exceeding the delivery based trading limit. Buy Security Qty. Limit: Restrict an entity by setting an absolute quantity value from placing buy order quantity. Sell Security Qty. Limit: Restrict an entity by setting an absolute quantity value from placing sell order quantity. M To M Loss Limit: Set maximum permissible mark to market loss limit in absolute value for entity beyond which order is not allowed to be placed. Exposure Limit: Set maximum permissible exposure limit in absolute value for entity beyond which order is not allowed to be placed. Turnover Limit: Set the maximum permissible turnover limit in absolute value for entity beyond which order is not allowed to be placed. Sell Exp Limit: Set the maximum permissible sell exposure limit in absolute value for entity beyond which sell order is not allowed to be placed. Buy Exp Limit: Set the maximum permissible buy exposure limit in absolute value for entity beyond which buy order is not allowed to be placed. Notional Cash: Set a notional value limit for an entity over and above cash margin available. Branch Adhoc: Set maximum limit for a branch, in turn this amount is apportioned by branch admin to its client. Max Branch Adhoc to Client: Set maximum limit for a client within a branch. The limit set for a client cant exceed the limit provided by branch admin through Surveillance RMS Limit Branch Adhoc to Client.

2.9 Preset RMS Limit: Save the limits i.e. Cash Margin Available, Adhoc margin, Sell Exp limit, etc. by naming it in the field provided (view the circled field named as manoj in the screen displayed below) and click on Save Preset button. The same setting is retrieved by select the name from the field provided and clicking on load preset button. This feature enables user to reload same RMS limit values.

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View multiplier RMS rule setting by clicking on Multiplier>> button and click on Update Multiplier button. Modify or change RMS rules from this window. However changing the category, results in applying the modified rule to already assigned entity. Click Update button to update or add the RMS limits to the entity. Click Refresh button to assign RMS rule to the entity. Customise the view by right click on header and reposition the same as desired.

2.10 View Limits Goto Surveillance RMS Limits View Limits. This function enables to view the RMS limits set for the entity. Customise the view by right click on header. o Reposition columns Arrange the fields as desired by selecting the column heading and clicking on > to add & < to remove from the list. Arrange the sequence of display by dragging the column heading.

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o o o o o

Fit to data The screen is resized to width of data. Fit to header size The screen is resized to width of header. Fit to window The screen is resized to accommodate all the fields in the window. Add Custom Columns This feature enables to add desired expression, for e.g. Balance Cash = Cash Margin Avail Margin Used. Follow the steps to add desired column: Enter the desired column name in the field provided. Double click on first column header and then on symbol (+, -, *, /). Double click on second column header and then on End button. Click on Add button to add a column expression.

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Delete Custom Columns This feature enables user to delete already added custom column. Select the added custom column from Column Name field and click on Delete button.

2.11 Rejected List Go to Surveillance RMS Limits Rejected List. Rejected list shows the list of all rejected orders through RMS. Limit is set by holding Ctrl key and double clicking on the rejected order.

2.12 Branch Adhoc to Client If user wants to decentralize the RMS, user can give additional limit to the branches and the branch admin can use this amount to allocate additional limits to the clients. The sum of adhoc amount given to clients cant exceed the branch adhoc margin (Surveillance - RMS Limits View/Update limit) of that branch. The limit so assigned to the client is over and above the normal margin. The limit set for each client cant exceed the Max Branch Adhoc to client limit set in Surveillance RMS Limit RMS Update/View limit RMS set Limit. Branch adhoc limit is set at a branch level from RMS set limits. Once the branch adhoc is set, the branch admin for the respective branch assigns the adhoc value to its client from Branch Adhoc to Client window. The system checks that, at any point of time the combined value of adhoc limit assigned to clients doesnt crosses the overall branch adhoc limit. Once the client utilises the branch adhoc assigned, branch admin cannot reduce the adhoc amount to the extent of utilised. Go to Surveillance - RMS Limits - Branch ad hoc to client to set adhoc limit for client.
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Enter the adhoc amount to be assigned to client in Client adhoc field. To save the changes, click on Save button.

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3. Scrip Margin This function is used to set the scrip wise margin and ad hoc margin across clients and position limit in quantity for user and client. Go to Surveillance - Scrip Margin. Following fields are validated with corresponding below mentioned rules: Fields Scrip Margin Ad Hoc Margin Broker Position Limit Client Position Limit RMS Rule Scrip Margin Order Level Scrip Margin Trade Level Var, ELM and Adhoc order level Var, ELM and Adhoc Trade level Position Limit Position Limit

Margin and position limit is set for each security. If any one of the field is to be activated, then keep other values to zero, for e.g. scrip margin is to be set for ACC security, the values in Adhoc Margin, Broker Position Limit and Client Position Limit is set to 0. Click on Set margin to update the list. To retrieve earlier set margin, select the respective security and click on Get Margin button. To remove the list of margin or position, select the list and delete the same.

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4. RMS Ban Symbol Restrict an entity from trading in specific securities which is covered under banned securities for the time being in derivative segment, by using this feature. Go to Surveillance RMS Ban Symbol FO Banned Symbol. Select the security from All symbols and transfer it to Banned symbols field by click on >> ADD button and save the same by click on Save button. For removing the security from banned list click on security in banned symbol and click on REMOVE << button and save it. View the list of scrip in banned symbol field by clicking on Get button.

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5. Scrip Basket 5.1 Add Scrip Basket Scrip basket ensures that the entity trades only in specified securities. Go to Surveillance - Scrip baskets - Add Scrip Basket. Scrip basket is created for NSE exchange and across product. Select the individual (single click) or multiple (shift + click) security and click on >> to add security or << to remove the security from the basket. Name the basket by typing the name in Basket name field. To save the basket click on Add Basket button. Specify percentage against the scrip in the basket, if user wants RMS to charge the specified percentage to be blocked towards margin amount. This margin percentage is applicable only for MIS and NRML products.

5.2 Modify Scrip Basket Modify the list of securities added to the basket by going to Surveillance Scrip baskets Modify Scrip Basket. Select the exchange, product type, basket name and series and then add/remove the security accordingly. Click on Modify Basket button to save the changes. 5.3 Delete Scrip Basket Delete scrip basket by going to Surveillance Scrip baskets Delete Scrip Basket. Select the exchange, product type and basket name and then click on Delete Basket button to remove the basket. Once the basket is deleted it cant be retrieved.

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5.4 Assign Scrip Basket After creating scrip basket, the same has to be assigned to the category, so that order is validated for scrip basket order level rule. Follow the steps to assign the basket: o Go to Surveillance Scrip baskets Assign Scrip Basket. o Select RMS category from Category Name dropdown to which user want to assign the scrip basket. o Select the product type under which basket is created. o Select the basket name from Basket Name dropdown and click on Assign Category button. o Click on Assign button to save the changes. o Scrip baskets to be functional Assigned Basket RMS rule should be selected in RMS category. o Scrip basket is assignable to one or more categories.

5.5 Get Scrip Basket: View the list of category assign to basket for exchange and across product; go to Surveillance - Scrip baskets - Get Scrip Baskets.

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6. Restricted Scrip Basket 6.1 Add Restricted Scrip Basket Restricted scrip basket ensures that the entity do not trade in specified securities. Click on Surveillance Restricted Scrip Basket Add Restricted Basket. Basket is created for NSE exchange and across product. Select the individual (click) or multiple (shift + click) security and click on >> to add security and << to remove the security from the basket. Name the basket by typing the name in Basket name field. To save the basket click on Add Basket button.

6.2 Modify Restricted Basket Modify the list of securities added to the basket by going to Surveillance Restricted Scrip Basket - Modify Restricted Basket. Select the exchange, product type, basket name and series and then add/remove the security accordingly. Click on Modify Basket button to save the changes. 6.3 Delete Restricted Basket Delete restricted basket by going to Surveillance Restricted Scrip Basket Delete Restricted Basket. Select the exchange, product type and basket name and then click on Delete Basket button to remove the basket. Once the basket is deleted it cant be retrieved. 6.4 Assign Restricted Basket After creating restricted basket, the same has to be assigned to the category, so that order is validated for scrip basket order level rule. Follow the steps to assign the basket: o Go to Surveillance - Restricted Scrip Basket - Assign Restricted Basket.
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o o o o o o

Select RMS category from Category Name dropdown to which user want to assign the basket. Select the product type under which basket is created. Select the basket name from Basket Name dropdown and click on Assign Category button. Click on Assign button to save the changes. For restricted scrip basket to be functional Restricted Basket should be selected from rules in the RMS category. Scrip basket is assignable to one or more categories.

6.5 Get Restricted Basket View the list of category assign to basket for NSE exchange and across product by clicking on Surveillance Restricted Scrip baskets - Get Restricted Baskets.

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7. NRI Scrip Basket NRI/Institutional traders trade on specified securities subject to ceiling limit. This RMS feature allows user to create a basket of security to allow these clients to trade in that specified security upto specified ceiling limit. To create basket click on Surveillance NRI Scrip Basket - Update NRI Scrip Basket. Select the following: o Series o Symbol Enter issued capital and define percentage of issue capital up to which entity can take position.

View the list of securities in NRI Scrip Basket by going to Surveillance - NRI Scrip Basket - View NRI Scrip Basket.

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8. RMS Blocking RMS blocking feature restricts an entity from buying and/or selling of all or specific security across exchange or product. This feature is effectively used for entity to place only square off orders. Go to Surveillance - RMS Blocking - Block / Unblock Orders. Following are the steps to initiate RMS blocking: o Select entity type as client, client group, dealer, branch or PRO. o Select the entity ID as name of client, client group, dealer or branch or All for blocking entire selected entity type. o Click on: Both Block entity from placing buy & sell order Buy Block entity from placing buy order Sell Block entity from placing sell order o Select type of product from Product field to block for all or any one of the product type. o Select block type from dropdown: All Non Sqr Off Sqr Off o Select desired exchange, series, symbol, option type, strike price and expiry date from Scrips to Block window. Select - -ANY- - option for blocking entire list from dropdown. 8.1 Block Type NON-SQR OFF Select Entity type Entity ID buy/sell/both exchange segment series symbol block order as non-square off and click Block button. This block type enables entity to place square off orders in MIS/NRML product type. Further entities are restricted from placing any fresh order.

8.2 Block Type ALL Select Entity type Entity id buy/sell/both exchange segment series symbol block order as all and click Block button. This block type disables entity from squaring off any open position, neither enables entity from place any fresh order.

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8.3 Block Type SQR OFF Select Entity type Entity ID buy/sell/both exchange segment series symbol block order as square off and click Block button. This block type enables entity to place non-square off orders in MIS/NRML product type.

8.4 Unblock Unblock the blocked combination by selecting the same setting during block and click on unblock button. After blocking any entity, the same is viewed by clicking on View block button. Alternatively, user can view all the block orders of entities by click on View All Blocks button and click on Unblock button to unblock all the blocked combination.

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9. Square off feature RMS square-off feature gives leverage in users hand to mitigate risk. It provides a feature to cancel all open position of entity at ease. Further, it blocks the entity from placing any fresh order. The user executing auto square off feature, must be enabled for Auto sqroff User feature while creating Dealer from Masters Entity Manager. Following listed is the square-off functions available in NOW: 9.1 Execute Auto square off Execute auto square off feature closes all open position of entity in MIS product type for respective segments namely; o Auto Square off (For Cash) o Auto Square off (For Derivative) o Auto Square off (For Commodity) Once auto square off is executed, entities are blocked from taking any further new MIS positions in respective segment and all pending order are cancelled. However entities can place orders in CNC and NRML product type. To execute square off feature, click Surveillance Execute auto square off.

9.2 Execute Auto square off Unblock Once Execute Auto Square off feature is executed entities are blocked from placing any fresh order in MIS product type. However this feature enables entities to place fresh MIS orders in respective segments. Click on Surveillance - Execute auto square off Unblock, o Auto Square off Unblock (For Cash) o Auto Square off Unblock (For Derivative) o Auto Square off Unblock (For Commodity)

9.3 Execute pre Auto square off Risk manager may allow entities to square off open position at their discretion. This feature cancels all pending orders of entity in respective segments.
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Entities are blocked from placing any fresh order in MIS product type in respective segment. However entities can place orders in CNC and NRML product type. Go to Surveillance - Execute pre auto square off, o Execute Pre Auto Square off (For Cash) o Execute Pre Auto Square off (For Derivative) o Execute Pre Auto Square off (For Commodity)

9.4 Admin square off Go to Surveillance - Admin square off. Square off open position at different levels as follows: o Segment o Exchange o Product o Scrip Add or remove client by clicking on >> or <<. To execute square off click on Square off button. Once admin square off function is activated selected client is blocked from placing any new order in respective segment, exchange, product type and security. To enable the client for placing order initiate following steps. o Go to Surveillance RMS Blocking - Block/Unblock Order o Select client from Entity Type o Select client name from Entity Id o Select block type as NON-SQROFF. o Select View Block to view the blocking rule. o Select Unblock button to allow selected client from placing orders.

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10. FAQ 10.1 RMS Limit Update Q Whenever RMS limits are updated, does it reflect in the log info? A Yes, it the updated values are shown in the File Log Info, it also displays which user ID has modified the limits. Q When order is getting rejected for rejection reason as available is ... and required is ... where can the available limits are checked? A User is required to go to Surveillance - RMS Update Limit RMS Set limit to update the cash margin available. Alternatively, user can double click on rejection reason in order book to update limit. Q Is it necessary to assign category when Branch Adhoc Limit is set? A Yes, it is necessary to assign category, but can assign No Validation rule. Q Warning percentage is set in the Category, but warning messages is not getting populated? A In the Preference Menu - User setting - General category, tick Pop-up in now massages. Q How Admin can enable two dealers with an option to for set two different limits for its client i.e. one dealer will update limit in cash segment and other dealer will update the limit in F&O segment? A Admin sets no validation rule for the client at 'all-all-all-all level and creates two level 'cash-all-all-all' and 'FO-all-all-all'. Dealers who are enabled on cash or NFO segment can set limits only at 'cash-all-all-all' or FO-all-all-all level respectively. Q Can collateral valuation be provided for Buy/Sell option contracts? A Collateral valuation is not applicable while buying option contracts; however the collateral benefit is received for option sell contracts. Q What is difference between Notional Cash & Adhoc cash fileds in RMS set limit window? A Notional cash is temporary cash for the day i.e. at the end of day the value in notional cash is flushed. On the other hand adhoc cash is provided for more than a day and the same doesnt get cleaned up at the end of day.

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Q Where to update collateral value computed by members internal backoffice? A Member can update Direct Collateral field in RMS Set Limit window; and multiplier benefit can also be set on the same. Q How to assign limits to a client under a particular branch where in more than one levels are created and limit is to be given at different levels through Branch Adhoc feature? A It is necessary to create all levels at branch level also and give branch Adhoc to each level so that when the Branch admin updates limit through Surveillance Branch Adhoc to clients, he can select that particular level and update the margin and the same is applicable subject to limit at AllAll AllAll level. Q When margin is released for contracts in CDS segment for contract expiring in the same day? A Margin is released at end of day. Q Is Adhoc margin considered while calculating exposure multiplier? A Yes, while validating a margin based on gross exposure for an order in cash segment, adhoc margin is also considered. Q How margin will be blocked at multiple levels with different categories assigned at each level in RMS Update/View Limit? A Margin is blocked at each level as per multipliers defined in respective category. For E.g. At All-All-All-All level the exposure multiplier in the assigned category is 5 and at Cash-All-All-All level the multiplier is 3. An order is placed in cash segment for 500qty at Rs.46 then margin is blocked in the following manner: CASH-ALL-ALL-ALL (500 x 46 =23000 order value) 23000/3= 7666.66 margin is blocked. All-All-All-All (500 x 46= 23000 order value) 23000/5 = 4600 margin is blocked. Q If cash margin is Rs. 5,00,00 and margin factor is 0.5 and Span margin order level rule is chosen, then up to what limit client can buy call or put option? A No leverage is received on buying call or put option with Span Margin order level rule. Hence, maximum limit allowed for placing buy call or put option is Rs.5,00,00. Q Is MTM calculated in buy and sell in CNC product type? A Yes, MTM is calculated for positions taken in CNC product type. The same is displayed in position window.

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Q Is MTM calculated on option long contract? A Yes. MTM value on option contract is displayed on real time basis in the RMS limit window (provided appropriate rules are added) and position i.e. F11 & Alt+F6 window. Q Which field displays the credit from sale of holdings? A Amount utilized present column in RMS View/Update limit displays the credit received from sale of holdings. Provided the rule Check CNC amount used or Check CNC amount used limit is added in the category. Q Is collateral benefit received for CNC product type apart from values in cash margin, adhoc margin and notional cash? A Order is validated by considering values in cash margin + adhoc margin + notional cash for CNC product type. However collateral benefit is not received for orders placed in CNC product type. Q Margin required for fresh order is Rs. 8,000 and cash available margin is Rs. 10,000, however the order get rejected with reason being RSM: Margin exceeds, required 17000, Available:10000 for entity account across exchange across segment across product, why the order got rejected for margin requirement? A Check margin used in value in RMS Update/View Limit window, as during order validation pending orders and traded orders are considered. An order has already been placed for which margin consumed is Rs. 9,000, hence required value is showing 17000 (9000 + 8000). Q How the margin is blocked or unblocked for orders placed by dealer, if category is assigned at dealer level? A Margin is released at dealer level for square off orders as placed on behalf of clients; however the required cash available margin at dealer level should be greater than or equal to margin consumed including margin required for placing such square off order. In case of F&O segment only for intraday position are released. Q When online fund is transferred by an investor client, then which field in RMS update/view limit gets updated? A Admin can check the status of fund transfer in Surveillance RMS Update/View limit in Payin column on real time basis. Q Funds are transferred by an investor client, and then at which level the amount so transferred get updated in RMS update/View Limit? A The fund transferred by online client is updated at ALL-ALL-ALL-ALL level

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10.2 RMS Rule Q How margin is blocked, if two RMS rules are added i.e. Scrip basket margin order level and Var and ELM margin order level? A If both rules are selected and an order is placed for a security for which basket percentage is defined in scrip basket, then higher value as per following is blocked from cash margin i.e. value as per Scrip basket or VAR and ELM margin. Q What is margin required for placing an order for ACC quantity 20, price@700, Gross exposure multiplier is 10? A Order value is 700 x 20=14000 and cash available margin required is 14000/10= 1400. Q If cash margin is set as 1000 and rule selected as gross exposure order level with exposure multiplier as 5 and turnover order level with turnover multiplier as 2, how much margin will get blocked for buying 1 share @Rs.1000? A An amount of Rs. 700 will get blocked from available cash margin i.e. Gross exposure (1000/5) =200, turnover (1000/2) =500 and total margin (200+500) =700 Q Gross exposure and gross exposure for derivative rule is set in a category, if exposure multiplier is 5 and Cash margin available is 100,000. What is the total order value that client can place in F&O and Cash segment? A If category is set at ALL-ALL-ALL-ALL level, then order totaling up to 5 Lakh (100000 x 5) including all segments is allowed. Q How can user stop client from taking one side position without using blocking feature? A User can assign buy exposure or buy exposure limit or sell exposure or sell exposure limit rule, however these rules are applicable only in F&O segment. Q In CDS segment user want to restrict for Order quantity (e.g.10 lots), how it works if Board lot qty & Max order qty rule is selected? A Set max lot size and max order quantity to 10 in the assigned category. Q How "Gross exposure for derivative" rule works for buy or sell in Futures and option segment? A Margin is computed in following manner for option contract: For Future Buy / Sell Contract = Price x Quantity (Lot Size) For Option Buy contract = Premium x Quantity (Lot Size) For Option sell contract = (Strike Price + Premium) x Quantity (Lot Size) Gross exposure derived above divided by gross exposure multiplier. Q If security is bought in CNC in cash segment, can the same be sold on same day?
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A Yes. Security sold in CNC product type first checks position taken for the same day then it check for T1 holding and finally holdings. Q If PS03 file is uploaded for a client who is not created in NOW & later during the day is created in NOW; does square off order for the client is allowed even without sufficient rule? A Yes, square off order are allowed. Q Whether Margin Factor works for the rules Scrip Margin order level and Scrip margin basket order level? A Yes Q How RMS works, if any rule is supplemented with no validation rule? A RMS follows conservative approach. If any other rule is added in category with no validation rule, then other rule would supersede no validation rule. Q When MTM loss limit rule is added & if the limit is hit, will the system allow to square-off the existing position? A Yes, however client cant place any fresh order unless MTM loss limit is increased or MTM loss is dropped. Q If Consider collateral only for FNO rule is selected, whether collateral benefit is displayed in RMS Update/View limit Collateral Value column? A This rule should be supplemented with Consider Collateral rule. On selecting this rule client will receive collateral benefit on F&O segment. Q Is collateral benefit considered for MTM loss, if these rules are added in category namely, consider collateral, consider unrealized loss or consider realized loss, consider realized profit and loss or consider unrealized profit and loss; and M To M multiplier is set to one? A Yes, MTM loss value is adjusted against collateral value during orders validation in MIS & NRML product type. 10.3 RMS Rejection Q If cash margin is in negative value (say -5000) and collateral is in positive value (say 20000), is buy order in CNC product type allowed? A No. Buy order in CNC product type will get rejected for insufficient margin. However orders in MIS and NRML order is allowed up to 15000 (200005000). 10.4 RMS Blocking Q Can a particular option contract for the particular series be blocked? A Yes.

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Q If clients are having right for placing order in Cash/FNO/CDS & want to restrict all clients from placing order in FNO & CDS for a day. What is the fastest way of doing so? A Either add rule Board Lot Qty & put Max Lot size 0 or else, use RMS blocking feature. Q How to block a client from placing Square-Off order in CNC product type and buy sell order in NRML or MIS product type in NSE BE series? A Select the following from blocking buy/sell order in NRML or MIS product type in BE series: Entity Type: client, Entity Id: client code, Buy/Sell: both, Product type: NRML or MIS, Block Type: All, Exchg-Seg: NSE, Series: BE and symbol: Any or specific security. Select the following for blocking square off order in CNC product type in BE series: Entity Type: client, Entity Id: client code, Buy/Sell: both, Product type: CNC, Block Type: SQR-OFF, Exchg-Seg: NSE, Series: BE and symbol: Any or specific security. Q If client is blocked from placing buy/sell order as well as for Non-square off, can he place sell orders in CNC product type? A Once client is blocked from placing buy/sell orders, normal order as well as square off orders wont be allowed. 10.5 Square off Q Admin is executing Auto square off feature, but positions are not squaring off, why? A Check Auto square off user function by modifying ADMIN user from entity manager. Q Admin has executed Auto square-off still dealer is able to place MIS order for the clients? A Auto square-off user option should be unchecked for dealers. Un-tick the function by modifying the dealer and ensure dealer re-login to have the effect. Q If client position is squared off by admin where does it reflect in dealing terminal? A Squared off position is reflected in order book and trade book of the dealer terminal. 10.6 RMS Ban Symbol Q Is RMS ban symbol to update on daily basis? A No, once security added to FO banned symbol list remains till it is manually removed.

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User manual for RMS

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