Important Update – Guidelines on position in Margin/Intraday Product

Key Points to Note:

1. Time-Based Square-Off under Margin / Intraday Product:
   • For NSE & BSE (Equity & F&O), square-off will commence 10 minutes before the market closes.
   • For MCX & NCDEX, square-off will begin 15 minutes before the market closes.
   • System will stop accepting fresh/new orders for the Margin Product 5 minutes before the scheduled square-off time; the square-off orders can be placed till square-off time.
   • Prior to initiating the square-off of any remaining positions (done on a best-effort basis), the system will cancel all pending orders.
   • In situations where positions cannot be squared off due to reasons such as liquidity issues etc., these will be treated as delivery trades.
2. MTM-Based Square-Off under Margin / Intraday Product:
   • The Client agrees to monitor his open positions and has to ensure that adequate margin is available at all times.
   • If the MTM (Mark-to-Market) loss on a client’s open position reaches or exceeds 50% of available net margin, it is the client’s responsibility to either immediately top up the margin to cover the obligation or reduce the open position accordingly to prevent an exchange shortage (if any) or avoid liquidation actions by the RBL. If MTM loss reaches or crosses stipulated margin percentage (Currently set as 60%) and the client fails in providing requisite Margin or squaring off the position, RBL shall be entitled to square off the positions in its sole discretion without any further notice.
3. Price Change/Movement Based Square off :
   • If a stock’s price moves by 15% or more over the last close price, the margin requirement will be increased up to 100%.
   • Short selling will be restricted for the day in such stocks where price moves upward by 15% or more.
   • Where the price moves upward by 15% or more, Clients are required to either square off the short positions or fulfill their delivery obligations, ensuring appropriate short-sell disclosures are made. (For your reference, short selling is defined as selling a security that the seller does not own at the time of the trade). If the client fails in squaring off the position, RBL shall be entitled to square off the positions in its sole discretion without any further notice.
   • If a square-off of a short position does not occur for any reasons whatsoever, an additional 20% margin will be blocked until the short position or delivery obligation is settled through auction settlement.
   • If a square-off of long position does not occur, positions can be continued, provided that full payment is made on the T Day (Trading Day). Otherwise, these positions will be squared off on or before T+5 day.
4. Other Important Guidelines:
   • Please be aware that intraday trading involves higher leverage and therefore carries a higher level of risk.
   • Conversion of an intraday position to delivery requires the full upfront margin applicable in Delivery Product.
   • The maximum permissible exposure limit may be capped, regardless of your account balance or collateral.
   • If a client holds an open position in stock futures or options contract that, due to physical settlement, may convert into a physical stock obligation, and the client does not have sufficient margin and/or stock to deliver as may be applicable and fulfill this obligation, the client is required to cover the necessary open position during market hours in stipulated / pre-defined time i.e., 1:00 PM. If the client fails to do so, RBL may close the position to avoid client auction / financial risk. The timing of such action is 1:00 PM or afterwords however it may be done earlier depends on the net available margin, liquidity, volatility and risk involved of the stock in the market.
   • RBL reserves the right to add or remove securities at any time as per its sole discretion where margin/intraday facility will be available.
   • By using our Intraday Trading Facility, you acknowledge and agree that being enlisted for this service does not obligate us to execute any intraday orders you request, even if the required margin is available in your account.
   • You also acknowledge and agree that if, due to circumstances beyond our control such as force majeure events, disruptions in communication networks, system failures, slow or delayed system responses, trading halts, or exchange-applied circuit filters, open intraday positions cannot be squared off and are carried forward, you are expected to make your best effort to square them off as soon as possible. Any losses arising from such events will be your responsibility.
   • Furthermore, you agree that you will not hold RBL, its directors, officers, or employees liable for any losses you may incur as a result of using this facility.

For any assistance or clarifications, please do not hesitate to reach out to your Relationship Manager, call us at 1860-2588-888, or email wecare@religareonline.com.

Warm Regards,
Religare Broking