Risk Managment

To man­age the risk of the com­pa­ny / client from the volatil­i­ty of the mar­ket.
Cash: The clear bal­ance avail­able in the customer’s ledger account in our books.
Mar­gin:The under­ly­ing stake pro­vid­ed by the cus­tomer in the form of cash, and/or stock
Stock qual­i­fy­ing for mar­gin in cash seg­ment trans­ac­tions: Secu­ri­ties in the approved list of Stock Exchange as per SEBI guide­lines.
Total Deposit: The aggre­gate of client deposit avail­able with us in the form of cash, Shares (After Applic­a­ble Hair Cut)
Set­ting up client’s expo­sure lim­it:
In Cash seg­ment, we may pro­vide a expo­sure lim­it to a client which would be a mul­ti­ple of the clear ledger bal­ance in the account of the client plus val­ue of paid up col­lat­er­als com­put­ed after appro­pri­ate hair­cut. The val­ue of the “mul­ti­ple” and the “hair­cut” shall be decid­ed by the com­pa­ny based on Mar­ket Volatil­i­ty and qual­i­ty of col­lat­er­als.
It is not com­pul­so­ry to col­lect upfront mar­gin from clients for Cash seg­ment. Gen­er­al­ly the client is allowed to trade upto cer­tain lim­it, at our dis­cre­tion, depend­ing on var­i­ous fac­tors like finan­cial cred­i­bil­i­ty of the client, request from sub bro­ker regard­ing set­ting client’s expo­sure lim­it etc.
In Futures & Options seg­ment, expo­sure lim­it of each client is set, based on Mar­gin mon­ey giv­en by the client, as per the Exchange Reg­u­la­tions. Upfront mar­gin is col­lect­ed from client.
GSV Secu­ri­ties Pvt Lim­it­ed Right to sell client’s secu­ri­ties or close client’s posi­tion, with­out giv­ing notice to the client on account of non pay­ment of dues. In case of any such sale the client will not be giv­en any notice.
Con­di­tions under which a client may not be allowed to take fur­ther posi­tion
Under the fol­low­ing con­di­tions a client may not be allowed to take fur­ther posi­tion,
1. The client has a due / deb­it bal­ance – Such clients are allowed to close out his open posi­tion but is not allowed to take any new posi­tion.
2. The client has not able to meet his pay-in oblig­a­tion in cash by the sched­ule date of pay-in
3. The client has not met Mar­ket to Mar­ket loss in cash.
4. The “open” posi­tions in a con­tract exceed or are close to mar­ket wide cut-off lim­its.
5. The client’s posi­tion is close to client-wise per­mis­si­ble “open” posi­tions
6. The client had default­ed in meet­ing cash or secu­ri­ties oblig­a­tion lead­ing to com­pul­so­ry close out of the posi­tion.
7. If the exchange is not allow­ing any fur­ther posi­tion in that script.
8. Based on hap­pen­ing of the event com­pa­ny has the risk per­cep­tion that fur­ther trad­ing in the securities/ con­tracts may not be inter­est of its clients and/or the mar­ket.
Intra­day - Cash seg­ment: The amounts of pur­chase (or sale) in a scrip on any trad­ing day that is reversed by the end of the day by mak­ing a con­tra sale (or pur­chase) of the exact same quan­ti­ty, there­by nul­li­fy­ing the orig­i­nal posi­tion.
Deliv­ery Trades: The net pur­chase or sale of scrip in a client account that is set­tled by way of a deliv­ery on T+2. Deliv­ery in respect of sale trans­ac­tions in the cash seg­ment has to be set­tled by the client by ten­der­ing secu­ri­ties in demat form before the pay-in dead­line. Else the client faces the risk of auc­tion.
Sell against Buy­ing: A pur­chase order exe­cut­ed on the Exchange today and the (unde­liv­ered) pur­chased stock sold in its entire­ty on the next trad­ing day. In this case the first trans­ac­tion would be set­tled on T+2 while the sale would be set­tled on the third busi­ness day after the pur­chase trans­ac­tion.
Note – GSV Secu­ri­ties Pvt Ltd.Limited will not be respon­si­ble for any Short pay­out of secu­ri­ty from exchange
GSV Secu­ri­ties Pvt Ltd.Limited Risk Man­age­ment Sys­tem will mon­i­tor the risks at client lev­el. We have mar­gin based auto­mat­ed RMS sys­tem. Total deposits of the clients are uploaded in the sys­tem and client may take expo­sure on the basis of mar­gin applic­a­ble for respec­tive secu­ri­ty as per VAR based mar­gin­ing sys­tem of the stock exchange and / or mar­gin defined by the RMS team based on their risk per­cep­tion.
In case of expo­sure tak­en on the basis of shares mar­gin the pay­ment is required to be made before the exchange pay in date oth­er­wise it will be liable to square off after the pay in time.
As a part of our risk man­age­ment sys­tem, we observe the posi­tion of respec­tive client as well as his cred­it bal­ance avail­able with us, secu­ri­ties lying with us etc. and depend­ing upon the same, we allow them to trans­act or cre­ate the posi­tion or to extend / sub­tract their posi­tion.