Risk Management Policy
RISK MANAGEMENT POLICY
ADOPTED BY
KAI SECURITIES PRIVATE LIMITED
- Limit Setting: Limits shall be monitored on daily basis, taking following criteria’s: Turnover, Exposure, Past trends, Location, Deposit/Collateral.
- Margins: Margin must be collected on all derivative trades. Client level margin will be at management discretion in cash segment Criteria to collect margin will be on the basis of volume of client and brokerage earned from clients. Same client should not figure in default list in more than 5 days in a month
- Trading: Trading in illiquid scrip shall not be permitted. On detection of such trading, the risk manager shall use his discretion to shutdown the terminal after intimating branch manager and sub broker.
- Pay-in Of Fund & Stock: Third party pay-in of securities & fund will not be accepted. Same way pay out of shares and fund will be directly done to client account only.
- Settlement of Fund & Securities: Settlement of Fund & Securities will be made once in a quarter incase of clients authorizing through running account. In case of retention of fund & securities if any, the reason for the same shall be provided in client ledger confirmation.
- Collections: Cash will not be accepted under any circumstances except cheque bouncing. Collection of cheque from clients must be done by T+2 days except clients who have authorized us to have running account balance.