1. RMS (Risk Management System): A system that helps PCAS manage the risk of the company and clients from market volatility.
2. Cash: The clear balance available in the customer’s ledger account in PCAS books.
3. Margin: The underlying stake provided by the customer in the form of cash.
4. Exposure: The aggregate of the customer’s obligations arising from buy and sell trades awaiting settlement in the cash segment, including profit/loss amounts yet to be settled on closed positions.
5. Exposure Multiplier: The number of times exposure is allowed on the underlying margin in the cash segment. Intraday exposure is based on the availability of cash margin or stocks sold (subject to margin adjustment).

Policy Details

1. Exposure Limits

   1. Delivery (CNC):
      • PCAS provides an exposure limit to clients based on the  clear ledger balance  in the client’s account for  exchange-approved scripts.
      • Full margin is applicable at the time of placing the order.
   2. Intraday:
      • The exposure multiple is three times of available margin.
      • This multiple may be adjusted by the RMS team based on market conditions.
      • All open Intraday positions will be squared off during the last 30 minutes of market closure.
      • Clients cannot carry forward Intraday trades. If a client wishes to carry forward an Intraday trade, they must pay the required margin amount.
   3. Order Types:
      • Clients can place orders in two products:
        • Intraday: Margin is blocked as per the margin requirement for the stock. All open Intraday positions will be squared off during the last 30 minutes of market closure.
        • Delivery (CNC): Full margin is required upfront, and positions can be held overnight.
   4. Order Limit Restriction:
      • Quantity-wise Limit: The maximum quantity per order is 1,00,000 (One Lakh).
      • Value-wise Limit: The maximum value per order is ₹5 Crore.
      • Any order placed above these limits will be automatically rejectedby the system.

2. Penny Stocks:

   • Stocks listed as illiquid by the exchanges are considered penny stocks. These stocks are highly speculative and risky due to low liquidity, large bid-ask spreads, and limited disclosure.
   • PCAS reserves the right to restrict trading or impose limits on penny stocks based on market conditions and RMS policy.

3. Delivery Trades:

   • oDelivery trades must be settled by the client by tendering securities through e-DIS/DDPI mode. Failure to do so may result in the client entering an auction.

4. Newly Listed Shares and Illiquid Securities:

   • Newly listed securities, illiquid securities, and Trade-to-Trade securities are subject to high market risks and price fluctuations.
   • Trading in these securities requires permission from the surveillance department and is subject to the available credit balance.

5. ASM and GSM Securities:

   • PCAS allows trading in ASM/GSM securities under Grade I/Stage I. Scrips with margin requirements (VAR + ELM) exceeding 100% will be blocked for trading.

6. Intraday Margin Exceptions:

   Intraday margins may be reduced due to:
   1. Exchange or government policy changes.
   2. Broker policy changes.
   3. Excessive market volatility or turnover.

7. Risk Management (Online Surveillance):

   PCAS uses a margin-based automated RMS. Client deposits are uploaded into the system, and exposure is allowed based on the margin applicable for each security as per the exchange’s VAR-based margining system.

8. Mark-to-Market Square-Off:

   1. If the MTM loss breaches between 70% to 80% of the available cash margin, the RMS team will square off the client’s positions, with or without prior intimation.
   2. In extreme market volatility, the square-off may occur at or around 70% to 80% of the threshold limit.
   3. PCAS is not liable for any losses arising from the square-off of positions.

1. RMS (Risk Management System): A system that helps PCAS manage the risk of the company and clients from market volatility.
2. Cash:  The clear balance available in the customer’s ledger account in PCAS books.
3. Margin:  The underlying stake provided by the customer in the form of cash or stock pledge to mitigate market or settlement risk.
4. Exposure: The aggregate of the customer’s obligations arising from buy and sell trades awaiting settlement in the cash and F&O segments, including profit/loss amounts yet to be settled on closed positions.

1. Exposure Limits

   • Cash Segment:
     1. Upfront Margin Requirement:lients must maintain an upfront margin as per UVAR + ELM U(Value at Risk + Extreme Loss Margin).
     2. Exposure Limit:  The limit provided will be up to 3 times of available margin.
     3. Limits are calculated based on the available margin (Ledger + Margin Pledge). Un-cleared cheques are not considered as margin.

   • Derivatives Segment:

     • Upfront Margin Requirement: In the derivatives segment, initial margin + exposure margin is mandatory.
     • Exposure Limit: Limits are allowed based on the available margin (Ledger + Margin Pledge). Un-cleared cheques are not considered as margin.
     • Futures and Selling Options: The full initial margin is applicable.
     • Buying Options: The full premium margin is required in cash.

   • General Rules:

     1. Limits are always calculated based on the available margin (Ledger + Margin Pledge).
     2. Un-cleared cheques are not considered as margin for any segment.

2. Order Types:

   Clients can place orders in two products:

   1. Intraday:  Positions cannot be carried forward. All open Intraday positions will be squared off during the last 30 minutes of market closure.
   2. NRML (Normal):  Positions can be carried forward overnight. Intraday positions are subject to around 70% MTM loss threshold.

3. Order Limit Restriction:

   1. Quantity-wise Limit: The maximum quantity per order is 1,00,000 (One Lakh).
   2. Value-wise Limit:  The maximum value per order is  ₹5 Crore. Any order placed above these limits will be  automatically rejected  by the system.
   3. In the case of Option Trading,strike prices above or below 20% of the current market price of the underlying asset are not allowed for trading.
   4. Orders placed for such strike prices will be rejected by the system.

4. Security Margin Pledge:

   1. Only DDPI-enabled demat/trading accounts can avail of the Security Margin Pledge facility.
   2. Only NSE-approved securities are accepted as margin pledges.
   3. Margin pledge valuation is based on the previous day’s closing price, with appropriate haircuts applied.
   4. PCAS reserves the right to liquidate pledged stocks in case of debits or non-payment.

5. Derivatives Expiry:

   1. No fresh buy positions are allowed in Stock Futures & Options on the last day of expiry. Clients can only square off existing positions.
   2. All open positions will be squared off after 2.00 pm on the expiry day.

6. Mark-to-Market Square-Off:

   1. Clients must pay MTM losses through fund transfer (Net Banking/NEFT/RTGS) by 09.00 a.m. on T+1day. Failure to do so will result in automatic square-off on T+1 day after 09.00 a.m.
   2. If the MTM loss breaches between 70% to 80% of the available cash margin + eligible stock pledge, the RMS team will square off the client’s positions, with or without prior intimation.

7. Intraday RMS Processes:

   1. Intraday positions will be squared off if the MTM loss reaches 70-80% of the client’s margin (including clear ledger + eligible stock pledge after haircut).
   2. Intraday positions cannot be carried forward. All pending orders will be cancelled at the end of the trading day.

8. Limits and Margins:

   1. Intraday limits in the Cash segment are based on upfront margin (VAR + ELM). In the F&O segment, limits are based on clear ledger or margin pledge stock after appropriate haircut.
   2. Carry-over limits require a minimum of 35% or VAR + ELM, whichever is higher.

9. Ageing Debit Square-Off (T5):

   1. Clients must clear outstanding dues by T+1. Prudent reserves the right to liquidate securities to cover ledger debits.
   2. Intimation SMS/email will be sent on T4, and selling will occur on T5 for clients with debits of Rs. 500 or more.

10. Release of Fund Payout:

    1. Fund payouts are released as per the settlement cycle. For example, if a client sells stock on Monday, the payout will be released on Tuesday after calculating margin utilization, DPC, and other charges.

11. Client Unpaid Securities Account (CUSPA) and Liquidation Policy

    1. • SEBI Guidelines on Unpaid Securities:
         • As per SEBI guidelines, securities received in pay-out against which payment has been made by clients shall be transferred to the respective demat account within one working day of the pay-out.
         • For securities where payment has not been paid in full or has been made partially by the client (unpaid securities), such securities shall be kept in the Client Unpaid Securities Pledgee Account (CUSPA) by the Stock Broker.
       • Clearing Debit Balance:
         • It is imperative for clients to clear the total debit balance arising from such purchases within 5 days from the Trade day (T+5).
         • Payments must be cleared via fund transfer (NEFT/RTGS/IMPS) or cheque such that clear funds are received by PCAS latest by 09:00 AM on the 5th day from the Trade day.
         • Alternatively, clients may sell stocks held by them within 5 days from the Trade day before 09:30 AM.
       • Liquidation of Securities:
         • If payments are not received as mentioned above, or if the client has not sold the stocks before 09:30 AM, PCAS shall liquidate the client’s stocks to clear the total debits as of T+5 days.
         • Such liquidation shall be carried out after 09:30 AM on the 5th day from the Trade day.
         • MTM losses arising in the futures/cash segment or debits arising through trading in options and not settled by the client on the due date shall also be considered for liquidation under the T+5 days total debit clearance policy.
       • Blocking of Fresh Positions:
         • On the day of liquidation, the client shall be blocked from taking fresh positions oin all segments, including:
           • Equity Cash
           • Equity Derivatives
         • No fresh positions will be allowed in any of the above segments until the total debit balance is cleared.
       • Extension of Debit Balance Beyond T+5 Days:
         • PCAS may, at its discretion and depending on the facts and circumstances, allow the continuation of a debit balance beyond T+5 days.
         • However, no further exposure will be allowed until the total debits are cleared.
         • PCAS reserves the right to liquidate or clear the total debit balance of the client at any time, as decided by the RMS department on a case-to-case basis, depending on:
           • Market conditions
           • Risk associated with the client
           • Market volatility