Risk Management Policy
Risk management policy for your trading and demat account.
Products
Customers can place orders for Delivery, Intraday trades across segments i.e. Cash and Derivatives (Derivatives include FnO, Currency, Commodity) on Millions.
In Cash Segment for Delivery or CNC trades, customers are required to have in their ledger balance funds upto the 100% of the gross value of stock at the time of the transaction. Currently no margin is provided for Delivery or CNC trades on Millions. However, client can avail MTF facility on selected stocks.
In Cash Segment for Intraday trades, Millions customers are provided a limit which is as per the exchange defined VAR+ELM for the respective scrips and subject to a minimum of 20%. For e.g.: customer A has effective ledger balance of Rs. 50,000 and wishes to buy a scrip X, assuming that the VAR+ ELM for the scrip X is 25%, customer can buy/sell scrip X only upto worth Rs. 2,00,000 for intraday.
In terms of Delivery / Carry forward Based derivative trades, the Millions customer is provided a margin which is as per exchange defined margin that also is equal to Span + Exposure + Delivery + Special Margin. For Futures and Options traded on NSE/BSE/MCX, the limit provided to the customer is as per margin requirements for the respective contract. For Example, customer wishes to trade in 1 lot of Nifty, assuming the margin required to create position in 1 lot of Nifty is Rs. 1,50,000. The customer needs to have an effective ledger balance of at least Rs. 1,50,000 to initiate the trade.
In terms of derivatives contracts there are specific criteria which define the contracts that can be traded via Millions for both normal and intraday trades in order to protect the consumers from market volatility and fluctuations.
It is pertinent to note that the risk policy continues to evolve and is subject to modification in consequence to market dynamics, business plans, management strategy and internal risk assessments from time to time.
The criteria for trading the areas are summarized below in Table 1.
Table 1: Derivative contract allowed for trading
| Sr. No. | Exchange | Segment | Instrument | CNC/Carryforward | Intraday |
|---|---|---|---|---|---|
| 1. | NSE/BSE | FNO | FUTIDX | All contracts | All contracts |
| 2. | NSE/BSE | FNO | OPTIDX | All contracts | All contracts |
| 3. | NSE/BSE | FNO | FUTSTK | All contracts | All contracts |
| 4. | NSE/BSE | FNO | OPTSTK | All contracts | Contract within 45 days |
| 5. | MCX | COM | FUTCOM | All contracts | Current & next month |
| 6. | MCX | COM | OPTFUT | Current & Next Month | Current & Next Month |
| 7. | NSE | COM | FUTCOM | Current Month | Not Allowed |
| 8. | NSE | COM | OPTFUT | Current Month | Current month |
The product wise summary for trading limit that is available via Millions is summarized below in Table 2.
Table 2: Summary of Product-wise limits
| Sr. No. | Segment | Intraday |
|---|---|---|
| 1. | Cash Segment | 5X* |
| 2. | FnO Derivatives | As per exchange |
| 3. | Commodity (Metal/Bullion) | As per exchange |
Note: *Maximum limit that can be provided for a scrip. The list of permissible intraday scrips specifies the scrip-wise margins.
Customer Trading Limit
The trading limit that is available to the customers is a function of their combined ledger which is available to customers across all segments along with the value of the pledged securities. Trading Limit = Total combined ledger (Net segment-wise ledger) + Pledge value (Net of Haircut).
Note: Valuation of margin pledge holding will be as per previous day closing price or current LTP whichever is lower after applying defined haircut.
Single Order limit
To avoid erroneous trading, below will be the single order level maximum cap applicable for any order.
| Instrument | Max Order Value | Max Order Qty | Max order Lot |
|---|---|---|---|
| FNO | - | - | As per Exchange Lot size. |
| COMMODITY | - | - | As per Exchange Lot size. |
Restricted Stocks and Contracts
In terms of derivatives, Millions has restricted trading in some options and future contracts to avoid manipulation of price and for the protection of consumers. The criteria for restriction is based on the open interest. In order for any derivative to be permissible, minimum open interest should be 10 lots in particular contracts and contract expiry should within the 18 months from current date.
Norms for Trading in Restricted script
In order to exercise additional due diligence some scripts are restricted at Millions platform. Those scrips can be bought through a centralized call and trade desk with predefined norms.
Millions shall not be responsible for non-execution/delay in execution of orders in restricted scripts consequential opportunity loss or financial loss to the customer.
Pre-condition:
- For buying in restricted script clients must have clear credit in account.
- Order will be executed after due diligence from the RMS side.
- Max order value will be 10% of the exchange volume of that script.
- Restricted script will be traded through Centralized call and trade desk.
- Restricted scripts purchased through the Centralized desk will not be allowed to sell the same day.
RMS Square-Off Policy
Timer Based/Intraday Square off
At Millions, a timer based intraday square off policy is followed where all positions created in Intraday will be squared-off from RMS side before closing of Market. All pending orders / unexecuted / partial orders will be cancelled as per intraday product feature. At the respective segments square off times, the positions will be squared-off at the best available price. No fresh position or order cancellation will be allowed after 3:18 pm for intraday timer. The table below specifies the square-off time by each segment. Table 3: Timer based summary time
| Segments | Square off Time |
|---|---|
| NSE/BSE CASH, DERIVATIVES | 3:20 PM onwards |
| COMMODITY | 11:15 PM onwards for 11:30 PM Market closing, 11:40 PM onwards for 11:55 PM Market closing |
Near Circuit:
In the cash segment, fresh intraday positions may not be allowed once the stock`s LTP reaches 90% of the defined circuit limit for the day. Additionally the RMS team reserves the right to square-off adverse open positions i.e. existing positions in loss wherein the stocks LTP reaches 90% of the defined circuit limit for the day, subject to best available price and quantity.
Note : Above Square off will only applicable for higher leverage stock (4 & 5 time ) and non fno stock only.
If Intraday position remains open :
If due to reasons such as connectivity, link or system failure, i.e. circumstances beyond control, an intraday position is not squared-off then it will be treated as a carry forward position and RMS reserves the right to liquidate the same on next trading day as soon as markets open for the day, if required margin is not available.
Mark to Market square-off :
Millions reserves the right to square-off all intraday positions ( cash as well as derivatives ) and carry forward derivatives trades, where-in MTM crosses 80% and above. The position will be reduced on the best effort basis and the customer will be liable for any losses on square-off. All pending orders of the customer will be cancelled. Client needs to Maintain Coverage of 20% against all segment (Ledger + MTM ). If coverage goes below, RMS has the right to sell client holdings up to required coverage.
Ageing based square-off :
Millions reserves the right to liquidate the stock (or/and) Mutual Funds upon ageing of the ledger debit beyond T+4 days. The stock (or/and) Mutual Funds will be sold from customers' accounts on T+5 days after the ledger debit. For e.g: trades executed on Monday will be squared off on next Monday (T+5) where T indicates Trading Day. RMS Liquidation stocks / MF upto 105% of ageing Debit amount or single stock value, whichever is greater. This valuation will be done on previous day closing price.
1. In the case of an ageing debit square-off, Stocks will be liquidated first, followed by Mutual Funds. Within Mutual Funds, the order of liquidation will follow settlement priority: T1 → T2 → T3.
2. Once a Mutual Fund square-off order is triggered, it cannot be reversed even if the client clears the ageing amount after the order has been placed.
Margin shortfall based square-off :
The customer needs to maintain the defined margin to retain position in derivatives segment ( FNO, Commodity ), RMS team reserves the right to initiate liquidation of position up to the required margin at any point of time. If the defined margin or exchange margin is short any open position can be squared-off at the Millions discretion.
Note:
Any option Receivable will not be consider against initial margin shortfall (Span + Exposure).
Margin Shortfall Penalties imposed to clients -
- Dishonoured Cheques
- Changes in Hedge Positions
- Delivery Margin
- Special Margin
- Tender Margin
- Additional Margin
- Mark to Market Margins
CUSPA Process:
As per SEBI Circular SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2022/153 dated November 11, 2022, on Handling of Clients’ Securities by Trading Members (TM) / Clearing Members (CM), if a client fails to make payment for securities purchased, Millions shall pledge the securities in the client's Demat account to CUSPA (Client Unpaid Securities Pledgee Account).
To mitigate the risk, Millions will pledge minimum securities worth 130 % of the net debit balance from the client’s Demat account to the Client Unpaid Securities Pledgee Account (CUSPA).
Example: If the client is having a debit balance of Rs. 100, then Millions will pledge minimum securities value Rs. 130/- to the Client Unpaid Securities Pledgee Account (CUSPA).
If the client fulfills the fund obligation within five trading days after the pay-out, the pledge will be released, and the securities will be available to the client as free balance.
If the client does not fulfill the fund obligation, Millions reserves the right to sell the securities pledged in the CUSPA account to recover the outstanding dues within four days from the date of payout.
Millions shall invoke the pledge only against the delivery obligation of the client. On invocation, the securities shall be blocked for early pay-in in the client’s demat account with a trail being maintained in the client unpaid securities pledgee account.
Margin Trading Facility (MTF)
- Minimum margin requirement would be higher than the requirement as defined by Exchanges, it would be as defined by Millions RMS discretion. You can find List of securities with leverage and margin for trading can be found here.
- Max 5 times limit will be provided on base Margin - Exp – if client had ₹ 1,00,000 margin he can avail exposure of ₹ 5,00,000.
- Such margin would be in the form of cash and/or non-cash collateral (Group 1 stock) as per RMS discretion.
- Interest charges* for using Margin Trading Facility would be charged on the funded amount via MTF as follows: This will be posted weekly.
Sr. No. Interest Rate (p.a.) Upto ₹ 5,00,000 12.49% p.a. ₹ 5,00,000.01 to
₹ 10,00,00013.49% p.a. ₹ 10,00,000.01 to
₹ 25,00,00014.49% p.a. ₹ 25,00,000.01 to ₹ 5,00,00,000 15.49% p.a. - The client understands that Margin Trading Facility would be extended only for the Group 1 Stocks of NSCCL and Stocks as determined by Millions RMS discretion from time to time. Applicable VAR margin also NSCCL or Millions RMS discretion whichever is higher.
- Clients shall be allowed to avail funding up to ₹5,00,00,000 (₹5 Crore) subject to mandatory DDPI activation. Clients who have not activated DDPI shall be restricted to taking positions up to ₹1,00,00,000 (₹1 Crore) only.
- Exposure to a single stock shall be permitted up to ₹1,00,00,000 (₹1 Crore) for Non-F&O stocks and up to ₹2,00,00,000 (₹2 Crore) for F&O stocks.
- If stock concentration exceeds the defined limit, an additional concentration margin of 25% will be demanded from the client or such stock will reduced till the related concentration drops to the defined limit as per EOD calculations.
- In case of Margin Shortfall, the shares will be squared-off after giving margin call if the margin shortfall amount exceeds ₹5,000.
- The Margin Trading position of the client shall be marked to market on a daily basis. Accordingly, at any point of time, if the holding coverage goes below 20% of the total portfolio, the client's holding will be liquidated to the extent of shortage.
- If a stock is no longer in the MTF approved exchange list, any funded position must be closed.
- Client will have to make payment in full for stocks that have been removed from Exchange MTF approved list. Millions reserves the right to liquidate and close client positions if the above requirement is not fulfilled. For Exchange Approved MTF stock- Millions refer both exchange approved stocks list (Group 1 stocks)
- In case of Corporate Action (except Bonus or Stock split) Millions has rights to close MTF position where clients have sufficient funds (Ledger+ Broking Pledge) equivalent to MTF funded close value with sending prior intimation to clients.
- Buying in MTF will be allowed only on Group 1 pledge securities, if any buying done other than Group 1 stocks then MTF funding will not be booked.
- On settlement Holiday, previous day bought holding (MTF BTST Holding) will not be available on trading system for selling.
- Funds transfer against MTF Shortfall will first adjust with Broking books shortfall (Ledger+ Pledge) if any and then available amount will utilize for MTF shortfall.
Note: RMS (Risk Management System) reserves the right to take immediate action on MTF positions at any point of time - including liquidation or any other risk-mitigation measures-whenever there is an increase in margin requirements (by RMS or Exchange), a scrip under MTF enters lower freeze or becomes illiquid, or during exceptional market conditions such as extreme volatility, Exchange actions, or any unforeseen events that may cause or potentially cause a margin shortfall or heightened risk exposure, in order to safeguard the company’s and the client’s interests.
T+5
Pay later product offers you leverage those scrip is not eligible in margin trading facility , allowing you to hold position up to 5 trading days exclude Saturday and Sunday (Holiday).
T+5 Mechanism:If you purchase securities in T+5 product, resulting in a negative balance in your trading ledger, securities will be automatically marked for pledge against the Client Unpaid Securities Pool Account (CUSPA). If payment is not made within T+5 days, our risk management team will sell those unpaid securities in accordance with our RMS policy. The securities will then be automatically invoked to our CUSPA account to meet the exchange securities pay-in obligation.
Physical Settlement of F&O and Commodity
Equity Derivatives :
In case of Stock Future contracts on Expiry day, only intraday trading will be allowed. No fresh carry-forward position will be allowed & no fresh position will allowed in Stock Option contract on day of Expiry in any product type. For carry forward position, if the customer wishes to take or give physical settlement of Stock Future /Stock Option contracts, they would be required to maintain margin, which is to the tune of 100% of the contract value before 10.00 am on expiry day (Tuesday ). (Refer Link for Physical settlement of F&O). If for any reason, in case there is a margin short-fall ( i.e. less than 100% of the contract value) , Millions reserves the right to square-off all the positions ITM, ATM, OTM in margin shortfall. In case the position does not get squared-off for reasons such as liquidity constraints, option contract getting converted to ‘In The Money’ during market hours etc, the costs (penalties/losses) of physical delivery will be applicable to the customer. On Expiry day, delivery margin will blocked for all long stock option positions ( ITM, ATM, CTM) and will be calculated as per Exchange defined norms of VAR+ELM % of underline stock or 20% whichever is higher.
What is CTM (Close-to-Money) for Millions?
CTM stands for Close-to-Money - it refers to option strike prices that are out of money but near to underlying stock’s spot price typically within a 3% to 5% range are considered CTM and delivery margin will block as per RMS policy.
Example: If the underlying stock price of script at ₹1,450 on expiry:
| Option Type | CTM Strike Prices | Reason |
|---|---|---|
| Call long option | 1460, 1480, 1500, 1520 | Strikes just above spot price (within 3–5% range) |
| Put long Option | 1440, 1420, 1400, 1380 | Strikes just below spot price (within 3–5% range) |
On expiry day, CTM options are treated the same as ITM options for the purpose of physical settlement.
If any client has an open position (short stock Future, ITM Call short or ITM Put long) and he wants to give Delivery, client will have to intimate Millions customer support before 10 AM on expiry day. He will also have to ensure that same stock quantity is available in his Demat account and E-DIS is marked for same quantity (if client is Non Poa).
Pre Expiry- if any F&O contract force closure due to corporate action like a Merger or Demerger , the contract will be physically settled and physical settlement policy of Millions will be applicable, clients need to maintain 100% of delivery value.
| Stock Physical Delivery | |||
|---|---|---|---|
| Exchange Margin | Millions Margin | Allow for Trading | |
| Expiry Day-4 day (Wednesday) | 10% of VAR+ELM | 10% of VAR+ELM | YES |
| Expiry Day-3 day (Thursday) | 25% of VAR+ELM | 25% of VAR+ELM | YES |
| Expiry Day-2 day (Friday) | 45% of VAR+ELM | 45% of VAR+ELM | YES |
| Expiry Day-1 day (Monday) | 70% of VAR+ELM | 70% of VAR+ELM | YES |
| Expiry Day (Tuesday) | 100% of VAR+ELM | 100% of Contract Value | NO |
Commodities :
Commodities with compulsory delivery will be closed a day before their respective tender period / delivery intention. Physical Delivery of Positions is not allowed. All the deliverable contracts of MCX enter ‘Tender Period positions' as mentioned by exchange from time to time. Customer's positions will be squared-off one day prior to the start of the ‘Tender Period' of the contract. No positions will be allowed to carry over in Tender Periods. Please note, the creation of new positions in contracts will be blocked 1 day prior to the initiation of the 'Tender Period' or 'Devolvement Period'
Commodity Delivery Options Blocking Before Devolvement Period :
Based on the criteria specified in the SEBI circular exchange shall identify option commodities which shall be settled through devolvement of future contract. Commodity delivery option contracts pertaining to devolvement will be blocked for further trading in Normal product type on Expiry Day. (Only square off allowed for current month expiry options).
On Expiry day all carry forward position of Current month Option will be closed if margin is not maintain as per required margin of devolvement , which will be equal to 100% of the futures contract margin.
Any Long ITM (in the money ) position remain open without sufficient Development margin will be mark do not exercise ,and the option contract will expire worthless.
| Commodity Option Devolvement margin | |||
|---|---|---|---|
| Exchange Margin | Millions Margin | Allow for Trading | |
| Expiry day-2 days | 25% of Underline Margin | Only Premium Value | YES |
| Expiry day-1 days | 25% of Underline Margin | Only Premium Value | YES |
| Expiry day | 50% of Underline Margin | Only Premium Value | Only Intraday |
Payout of Funds
Customers can withdraw the amount available in the Millions trading account at any point of time by placing a fund payout instruction of the trading platform. Calculation for fund withdrawable amount is given in table 4.
Table 4: Calculation of withdrawable funds:
| Action | Components | Remarks |
|---|---|---|
| - | Clear Fund Balance | Effective Ledger Balance Across All Segments |
| LESS | Future Debit | All Open Bills and other debit (if Any)x |
| LESS | Margin Obligation | Total Margin & Unrealised & Realised Loss |
| LESS | Unposted Charges | Unposted DPS/DP Bill/ Shortage Penalties etc |
In case if the customer has traded at the time of the payout request, and wishes to take full payout then the system will release payout after deduction of 5% or Rs. 5000 (whichever is lower). Please Note funds added on any given day will be available for withdrawal on the next day.
Execution of Sale of Securities through E-DIS
In order to execute and sell transactions of available securities in the customer's account, the customer can use E-DIS mode by using a TPIN from CDSL. This PIN is required to be set by the customer. Customers can pre-authorize the sale of stocks via the CDSL TPIN facility, at the beginning of the trading day so that customers do not need to take authorization prior to each sell transaction for holdings. 100% of the sell credit of delivery trades can be utilised for all segments for further buying of new positions on the same day. For example: If the customer sells holding worth Rs. 2,00,000 then the customer will get credit for sell benefit up to 100% of gross sell shall be allowed, which will be Rs. 2,00,000 for new positions on the same day.
Demat Debit and Pledge Instruction (DDPI):
Clients can also execute sale transaction without E-DIS by executing Demat Debit and Pledge Instruction (DDPI) in favour of Millions. By doing this, the client will be exempted with the requirement of entering TPIN for pre-authorising sale transactions.
Credit for Sale (CFS)
- If you sell any stock from your MTF holding and wish to trade in it again, you can only repurchase the same stock after converting your position to intraday (MIS).
The CFS benefit available in our systems is as follows:
| Case | Selling of Stocks | Current |
|---|---|---|
| (a) | From Free Holding | 100% |
| (b) | CUSA | 0% |
| (c) | BTST | 0% |
| (d) | Margin Pledge | 80% or (100% less Haircut value whichever is minimum) |
- If you sell stock from Free Holding - You will get flat 100% of the CFS benefit
- If CUSA stock is sold / You sell stock from CUSA - You will get no CFS benefit
- If you buy the stock and sell on the next day (BTST) - You will get no CFS benefit
- If you sell stock which is Pledged for Margin - You will get a minimum of 80% or (100% less the haircut value of the stock).
Pledge & Unpledge
- Pledge will be allowed for selected stocks defined by exchange and Millions RMS team.
- Pledge Benefit: Pledge benefit will provide on previous day close price or LTP whichever is lower. here.
- Pledge Benefit could be used for all segment on combined basis.
- List of securities with leverage and margin for trading can be found here.
- Pledge timing: up to 9 PM (Exchange working days ).
Unpledge of Shares
At the time of unpledge request, our systems will check that there will be no margin used or negative balance against pledge holdings. Accordingly, collateral benefit is removed on successful unpledge request and limit is reduced on real time basis.When selling a pledged stock, unpledging will happen in real time and in line without the need of un pledging stocks by client before selling. Unpledge timing: up to 3 PM (Exchange working days )
Unpledge of Mutual Funds
Your pledged units cannot be redeemed directly. You need to first unpledge your mutual fund units. Once the unpledge request is processed, you will be allowed to place a redemption request.
Please note that unpledge requests are accepted between 9:00 AM and 3:00 PM on business days, and the units will be added back to your free units on the next business day.
Example: If a client places an unpledge request on Monday, the units will be available for redemption as free quantity on Tuesday.
Note: At the time of placing an unpledge request, our systems will verify that there is no margin utilized or negative balance against the pledged mutual fund holdings. If the conditions are met, the collateral benefit will be removed upon successful unpledge, and your trading limit will be reduced in real-time.
Dormant Account
An account shall be marked dormant if there's no trading activity observed for a period of 24 months. Dormant customer marked inactive at Millions platform; no further trade will be allowed.
Delayed Payment Charges
- Clients must maintain at least 50% of the total margin in cash or cash equivalents.The remaining 50% may be maintained as non-cash collateral, such as pledged shares.
- Cash equivalents include Liquid Mutual Funds/ETFs, Government Securities (G-Sec), Sovereign Gold Bonds (SGB), etc.
- This requirement applies to both intraday and overnight positions.
- Any shortfall in the required cash or cash-equivalent margin will attract Delayed Payment Charges at the rate of 0.0438% per day.
- Delayed Payment Charges will be levied until the cash margin obligation is fully met.
- Clients are strongly advised to maintain the mandated 50% cash or cash-equivalent margin in their trading balance to avoid additional charges.
Below transaction require minimum 50% cash or cash equivalent:
| Trading Activty | Fund Requirement |
|---|---|
| Equity Delivery | 50% cash/ cash Equivalent |
| Option Buy / Sell | 50% cash/ cash Equivalent |
| Future Buy / Sell | 50% cash/ cash Equivalent |
Please refer to the example below for a better understanding:
Cash or Cash Equivalent = 125000/-
Non-Cash Collateral = 300000/-
Total Limit on Millions = 425000/-
Margin used = 400000/-
For the above transaction to be processed, the client needs to have minimum cash or cash equivalent to be Rs.2,00,000/- ( 50% of Rs.4,00,000/-), but we can see that client only has Rs.1,25,000/- cash balance.
So in this scenario, clients will be charged an Interest on the remaining shortfall of Cash Margin ie: Rs.75,000 ( Minimum Cash Required (Rs.2,00,000/) minus Available cash (Rs.1,25,000/-))
Per day Interest charged will be: 0.0438%
So the interest charged will be:
75,000 * 0.0438% = Rs.32.5 per day
E.g.: Customer has a clear ledger Rs.50,000 and non-cash (pledge AHC) Rs. 100,000 and the customer takes a derivatives position that requires Rs. 150,000 margin. For this transaction the customer is required to have Rs. 75000 cash collateral but the customer had only Rs. 50,000 so interest will be charged on shortfall amount Rs.25,000.
Voluntarily Freezing and Unfreezing of Trading Account
As a customer, if you think that your Millions trading account has been compromised or there is a presence of suspicious activity, you will now be able to voluntarily freeze your trading account via IVR or by accessing the Millions portal from app and web.
Freezing your account:
A dedicated IVR number (8655789046) has been allocated for this specific purpose. Once you call this number from your registered mobile number on Millions, you will be asked for your confirmation to voluntarily freeze your Millions trading account.
As soon as the request is received over IVR (interactive voice response), we will proceed to freeze your trading account immediately. Here is what will happen:
- All your pending orders will be cancelled with immediate effect
- Your open positions will NOT be squared off
- You will be logged out of all active sessions
You can also request to freeze your account via Millions app and web. Please follow the steps below:
- In mobile application navigate to Profile > Trader's Controls > Manage Trading Segments. On the web platform go to Money > Trader's Control > Manage Trading Segments
- Click on "Temporarily Suspend Trading Account"
- Acknowledge and enter OTP received on registered mobile
We will be informing you via SMS and Email once we freeze your account. You will also receive details of all your open positions (if any) via Email only.
Re-enabling trading access:
You will only be allowed to enable trading access after 24 hours of voluntary freezing. You can call on the same IVR number (8655789046) and follow the instructions to unblock your trading account. To re-enable it via Millions app or web, please follow the steps below:
- In mobile application navigate to Profile > Trader's Controls > Manage Trading Segments. On the web platform go to Money > Trader's Control > Manage Trading Segments
- Click on "Unfreeze your Trading Account"
- Acknowledge and enter OTP received on registered mobile
We will be informing you via SMS and Email once your account has been unfreezed and ready to trade again.
Note: This policy is in accordance with Exchange Circular NSE/INSP/61529 and 20240408-12 (BSE) w.e.f 1st July, 2024 and can be viewed here.
Breaching in Gross Exposure Position Limit
According to the NSE circular regarding Position Limits in the Equity Derivatives Segment (Futures and Options), Open Interest (OI) of the participants in derivatives shall be measured at a portfolio level by computing the Net Delta adjusted open positions across futures and options for an underlying at a given point in time.
Position Limits for Index Futures and Index Options at client level
Net end of day FutEq (Future + Options) OI limit to be ₹1,500 cr. and gross FutEq OI to be ₹10,000 cr. (i.e. neither gross long FutEq OI nor gross short FutEq OI shall exceed ₹10,000 cr.).
Sample Scenarios of Limit Violation
| Client | Net Delta 1,500 Cr | Gross Long Delta (GLD) 10,000 Cr | Gross Short Delta (GLD) 10,000Cr | Violation |
|---|---|---|---|---|
| Client 1 | 1450 | 10000 | 8550 | NO |
| Client 2 | -1000 | 9000 | 10000 | NO |
| Client 3 | -1600 | 8400 | 10000 | A |
| Client 4 | 1600 | 10000 | 8400 | A |
| Client 5 | 1400 | 11400 | 10000 | B |
| Client 6 | -1400 | 10000 | 11400 | C |
| Client 7 | 2000 | 14000 | 12000 | B, C (B Highest) |
| Client 8 | -100 | 15000 | 15100 | B, C (C Highest) |
| Client 9 | 1600 | 10100 | 8500 | A, B |
| Client 10 | -2000 | 8100 | 10100 | A, C |
In addition to the above specified position limits for index options and index futures, clients shall be allowed to take additional exposure in equity index derivatives subject to the following:
- Aggregate short positions in index derivatives (short futures, short calls and long puts) shall not exceed (FutEq terms for Index options and gross notional terms for Index futures) the holding of stocks.
- Aggregate long positions in index derivatives (long futures, long calls and short puts) shall not exceed (FutEq terms for Index options and gross notional terms for Index futures) the holding of cash and cash equivalent, government securities, T-Bills and similar instruments.As per the above if any clients exceeding specified limits the exchange will collect additional margin on the excess positions from the Trading Member, which will be held in cash for a period of one month. If the client fails to maintain the required additional margin, Millions will impose delay payment charges on the shortfall at a rate of 0.0438% per day until the margin is released.
Position Violation in F&O Ban
- As per the exchange circular, during the ban period, clients must ensure that their Future-Equivalent Open Interest only reduces and does not increase or change direction. Any trade that results in an increase in Future-Equivalent Open Interest will be considered a violation. All penalties imposed by the exchange for such violations will be fully borne by the client.
- If Due to change in Ban period position Future Equivalent Open interest is increase , RMS team Reserve right to liquidate your position.
Sample Scenarios of Position Violation
| Instrument | Symbol | Expiry | Option Type | Strike Price | Base Position | EOD Position | Contract Delta as per 2:00 pm SPAN file | FutEq Base Positions | FutEq EOD Positions | Delta Increase or decrease | Violation | Base Positions to be revised? | Minimum per lot Penalty |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| OPTSTK | ABC | 19-May-2025 | CE | 22500 | -10 | -10 | 0.45 | -4.5 | -4.5 | 0 | |||
| OPTSTK | ABC | 19-May-2025 | PE | 22300 | -10 | -10 | -0.4 | 4 | 4 | 0 | No | No | 0 |
| OPTSTK | ABC | 19-May-2025 | CE | 22500 | -10 | -10 | 0.45 | -4.5 | -4.5 | -4.5 | |||
| OPTSTK | ABC | 19-May-2025 | PE | 22300 | -10 | 0 | -0.4 | 4 | 0 | 0 | Yes | Yes | 5000 |
| FUTSTK | ABC | 19-May-2025 | 0 | FF | -10 | 0 | 1 | -10 | -10 | 0 | |||
| FUTSTK | ABC | 29-Jun-2025 | 0 | FF | 0 | -10 | 1 | 10 | 10 | 0 | No | No | 0 |
| FUTSTK | ABC | 19-May-2025 | 0 | FF | -10 | -10 | 1 | -10 | 0 | -10 | |||
| FUTSTK | ABC | 29-Jun-2025 | 0 | FF | 10 | 10 | 1 | 10 | 10 | 0 | Yes | Yes | 5000 |
| OPTSTK | ABC | 19-May-2025 | 22500 | CE | -10 | 0 | 0.45 | -4.5 | 0 | -0.45 | |||
| FUTSTK | ABC | 29-May-2025 | 0 | FF | 10 | 10 | 1 | 10 | 10 | 0 | Yes | Yes | 5000 |
Market Price Protection (MPP)
MPP, or Market Price Protection, safeguards market orders by automatically converting them into limit orders at a predefined threshold—preventing execution beyond a set percentage from the current market price. Below are the MPP Thresholds by Segment
| TYPE | Exchange | Segment | Instrument | Product | Percent |
|---|---|---|---|---|---|
| MPP | BSE | Derivative | Index future | ALL | 0.1 |
| MPP | NSE / BSE | Derivative | Index option | ALL | 10 ( initial few mins ) |
| MPP | NSE / BSE | Derivative | Stock future | ALL | 1 |
| MPP | NSE / BSE | Derivative | Stock option | ALL | 10 |
| MPP | NSE | Commodities | Future | ALL | 5 |
| MPP | NSE / MCX | Commodities | Option (Buy/Sell) | ALL | 5/20 |
- Index Options at Open: The 10% cap applied only during the first few minutes post-open supports liquidity needs
- Iceberg Orders: Even during trading day iceberg orders maintain a ±10% cap preventing excessive exposure
Example:
You place a market buy order for 500 index option contracts at ₹100 LTP. Without MPP
| QTY | BID | ASK | QTY |
|---|---|---|---|
| 50 | 100 | 103 | 50 |
| 50 | 98 | 104 | 25 |
| 100 | 97 | 108 | 25 |
| 100 | 94 | 115 | 150 |
| 100 | 90 | 120 | 250 |
Stock Lending and Borrowing (SLBM)
Stock Lending and Borrowing (SLBM) allows users to rent idle stocks to earn passive income or borrow stocks to meet short-term obligations or strategies. The SLBM facility is governed by SEBI regulations and operational guidelines.
Eligibility Criteria
To participate in SLBM, users must meet the following requirements:
- Active DDPI Mandate: Users must have an active Demat Debit and Pledge Instruction (DDPI) mandate.
- Margin Maintenance: Sufficient upfront margin must be maintained as per the margin framework outlined below.
Margin Framework
Borrowing Stocks
Clients borrowing stocks under SLBM must maintain upfront margin as per the following:
Margin Requirement: The higher of the two values will be considered:
- 100% of stock value + VAR + ELM
- 125% of borrowed stock value
This margin is:
- Blocked until the positions are closed i.e. Repaid or Settled whichever is earlier
- MTM (Mark-to-Market) margins are adjusted daily based on price movement
Note: The borrowing fee is debited on the transaction day itself.
Example:
- Stock: RIL
- Price: ₹1400
- Quantity: 100 shares
- Rent: ₹15 per share
- VAR + ELM: 5.5%
Margin Calculation:
- Option 1: 125% of ₹1,40,000 = ₹1,75,000
- Option 2: 105.5% of ₹1,40,000 = ₹1,47,700
- Applicable Margin: ₹1,75,000 (higher of the two)
Borrowing Fee: 100 shares × ₹15 = ₹1,500
Total Margin Required: ₹1,75,000 + ₹1,500 = ₹1,76,500
Repayment of Borrowed Stocks
When repaying borrowed stocks:
- Your holdings are validated against the borrowed positions
- An Early Pay-In (EPI) of shares is initiated to release the blocked margin
Stock Renting
Margin Requirement:
- No margin is applicable for renting stocks
- Only free DP holdings are eligible for renting
Upon lending:
- An Early Pay-In (EPI) of shares is triggered in real-time after execution
Recall Transactions
In the event of a Recall:
- The platform validates the existing rented position
- Margin for recall will be blocked when the order is placed and will be debited from the ledger balance once the transaction is executed.
Repay Transaction
In event of a repay trade, an EPN is initiated where the stocks are transferred to NSCCL pool account for release of blocked margin on borrowed shares.
Millions
The broking entity for the Millions trading platform is Raise Securities Private Limited. CIN: U74999MH2012PTC433549. SEBI Stock Broker Registration No: INZ000006031 | Depository Participant (CDSL) ID: IN-DP-289-2016. Exchange Membership No.: NSE: 90133 | BSE: 6593 | MCX: 56320. Registered & Corporate Office: Unit No. 2201, 22nd Floor, Gold Medal Avenue, S.V. Road, Beside Patel Petrol Pump, Piramal Nagar, Goregaon West, Mumbai - 400104.
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