Transcript Continuous Funding System

Continuous Funding
System
Modified CFS Regulation, 2005
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CFS Market Offered parallel to the Regular Market
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Max CFS Permissible upto the Gross purchase in
the Regular Market.
CFS Trades of that particular day will not available
for Release.
CFS facility maximum for 22 working days.
Maintaining the leverage position in respect of CFS
& Derivatives not exceeding 15 time of NCB
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Parallel CFS Market
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Markets Schedule
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Opening of Regular Market
9:45
Opening of Release Session
9:50
Opening of CFS Market
9:55
Closure of Regular Market
2:15
Closure of Release Session
2:45
Closure of CFS Market
3:15
Auto release due to ex-dividend basis will be done before the opening of CFS market
All CFS Open trades will be released Forcefully on the First Day.
Capping limit is controlled in real-time
through pre-trade check
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Orders not submitted if CFS capped
Cushion becomes available after release
May not accept new orders in CFS e
ven after release if prices are increased
Parallel CFS Market
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Since the CFS market will be available in parallel to Regular Market therefore
current prevailing rate of the symbol will be used as a base rate for the CFS
transaction at the time of execution.
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All previous CFS trades will be unreleased by default and user will mark
trades to release in contrast to present practice. Presently all trades are
released by default and users mark trades those he/she want to hold or carry
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Can be financer and be fiancée both at a time.
CFS orders will be accepted in the range of 36% annualized badla
Rates.
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NET CAPITAL
BALANCE
1.
A Broker can avail Exposure limit up to the 25 times of his Net Capital
Balance in the Ready Market.
2.
A Broker can avail his Exposure limit up to the 15 times of his Net
Capital Balance in CFS Market against his leverage position in the Regular
Market.
3.
A Broker can avail his Exposure limit up to the 10 times of his Net
Capital Balance in the Future Market.
4.
A broker position will not exceed his leverage position in respect of CFS
and other derivatives not exceeding 15 times of his NCB.
5.
A broker position in Ready and Future altogether will not exceed to the 25
times of his Net Capital Balance Limit.
Case1:
“A Broker can take position in Ready
Market up to 25 times of his Net Capital
Balance Limit.”
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For example: A broker has a Net Capital Balance Rs. 100,000
Total Net Capital Balance Limit available = 100,000 * 25 =2,500,000.
Bought 100,000 shares of SSGC @ 25 in Ready Market (2,500,000)
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As per above scenario
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No Further Buy orders will be accepted in the Ready Market
No Further Sell orders will be accepted in any other symbol in the Ready Market.
Only Sell Orders of SSGC will be accepted in the Ready Market.
No Buy/Sell orders will be accepted in the Future Market.
A broker can take CFS facility up to the 15 times of his NCB Limit according to the
Ready Market Gross Purchase' “ I.e.leverage position”).
i.e. Can trade 60,000 shares of SSGC only in the CFS market.(1,500,000)
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Case2:
“A Broker avails 10 times of his NCB
Limit in Ready Market out of 25 times
NCB Limit.”
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For example:
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A broker has a Net Capital Balance Limit 100, 000
Total NCB limit available = 2,500,000
Limit avails = 1,000,000
Bought 10,000 shares of BOP @ 100 in Ready Market. (1,000,000)
As per above scenario
Further Buy/Sell orders will be accepted in the Ready Market up to the remaining NCB
Limit (i.e.1,500 ,000)
Can avail upto15 times CFS facility of his NCB limit in the CFS Market but according
to the Ready Market Gross Purchase(s) leverage position. (In this case Broker can only
trade 10,000 shares of BOP in CFS market). (1,000,000)@ closing rate of 100.
Buy/Sell orders will be accepted in the Future Market up to the 5 times of his NCB
Limit.(500,000)
Condition : (A broker can only use15 times of NCB value Limit altogether in against
his leverage position in CFS and Future markets.)
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Case3
“ Broker avails 10 time of his NCB
limit out of 25 times in the Ready
Market and 10 times in Future Market.”
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For example:
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Net capital Balance = 100,000
Total Net Capital Balance Limit =2,5000, 000
Limit avails in Ready Market = 1,000,000
Limit avails in Future Market = 1,000,000
Bought 10,000 shares of BOP @ 100 in Ready Market. (1,000,000)
Bought 10,000 shares of LUCK-JAN @ 100 in Future Market. (1,000,000)
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As per above scenario
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Further Buy/Sell orders will be accepted in the Ready Market up to the remaining NCB Limit (i.e.500 ,000)
No further Buy/Sell orders will be accepted in other symbol(s) in the Future Market except Sell Order of
LUCK-JAN.
Can avail up to the 5 times of his NCB Limit in against his leverage position in CFS. (500,000)
(Condition ): A broker will not exceed 25 times of his NCB value Limit altogether in the Ready Market
and Future Market)
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Case4
There is no Net Capital Balance Limit on
the Broker as a Fancier in the CFS
Market.
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Can enter Sell orders in the CFS Market as a Financier.
Questions
Thank You