POLICIES & PROCEDURES
Tradejini Financial Services Pvt Ltd
Jayanagar 4th Block Bangalore-560011
SEBI REGISTRATION NO.: INZ000160938
(NSE: CM-FO-CD | BSE: CM-FO-CD | MCX: FO | MSEI: CM-FO-CD)
CDSL Depository Participant: IN-DP-470-2020
Mutual Fund ARN : 87156
Trading
CNC (Cash And Carry): If you want to buy for Delivery (buy stock and hold them overnight) in CM segment, you will have to place your orders under product type “CNC”.
- Clients are required to have sufficient fund balance in trading account for buying.
- You need to have enough quantity of shares in your Demat account for selling shares.
- Demat account Should be mapped to your trading account
- If you have opened your account online, you should update the DDPI or alternatively may use E-DIS facility.
- Short selling is not allowed in this product
NRML (Normal):If you wish to carry forward your Derivative positions to the next trading day, you will have to place your orders under product type “NRML”.
- Product Can be used in Future and Option Orders (NSE – FNO, CDS and MCX)
- Placing order under product type NRML will require full margins as specified by Exchanges
- Further on violation of peak/EOD margin by clients, the margin requirement will be increased by 5% / 10% over and above that of exchange requirement at the sole discretion of RMS team of Tradejini.
MIS (Margin Intraday Square off): If you wish to trade for intraday purpose in any Exchange and segment (CM or F&O), you will have to place your orders under product type “MIS”.
- Margin leverage will be provided for this product
- Intraday margins for Cash are pre-determined, so you will get up to 5 times exposure on your cash. Margin Multiplier
- Intraday margins for Futures and writing options (NSE FNO) are 100% of the SPAN + Exposure margin prescribed by the exchange. Margin Multiplier
- Intraday margins for Futures and writing options (NSE CDS) are 100% of the SPAN + Exposure margin prescribed by the exchange. Margin Multiplier
- For Commodity Futures: 100% of the margin prescribed by the exchange. All MIS orders not closed by clients will be subject to Auto square off during last 15 minutes before respective market close time. Margin Multiplier
- No leverage for Option buying.
- If you have taken an MIS Position and wish to carry forward the same, you will have the option of converting the position to NRML, subject to availability of sufficient funds in your account to meet the margin requirement. You need to do this conversion of Product type before the MIS position is auto closed out
Smart Orders
Cover Order
Cover order is like any other market order but placed with a compulsory stop loss. It’s very useful along with risk management by having compulsory stop loss for intraday trader because of the higher intraday leverage.
Bracket orders
Bracket orders are designed to help limit your loss and lock in a profit by "bracketing" an order with two opposite-side orders. A BUY order is bracketed by a higher-side sell limit order and a lower-side sell stop loss order. A SELL order is bracketed by a higher-side buy stop loss order and a lower side buy limit order.
Note:
- Cover order & Bracket Orders are not available for Stock options, Currency options and Commodity Options.
- Cover order & Bracket Order are compulsorily intraday products, hence the system will- automatically square-off them during last 15 min before market closing time in case not closed by clients.
- Cover order & Bracket Order are not allowed in market preopen period.
Margins
Tradejini Provides consolidated Margin for Equity and Commodity Segment. Tradejini does not engage in the business of Client Funding. Clients are required to fund sufficient balance in their accounts to hold/carry forward positions.
NSE/BSE Equity Margin :Tradejini has a policy of giving up to 5 times leverage for stocks on which F&O trading is allowed. This leverage is given only for trading Intraday. No leverage is given for delivery trades. The client needs to have enough fund in his trading account to take delivery.
NSE Futures :100% of Total Margin (Span + Exposure) is required to take intraday positions and as well as to carry forward positions.
NSE Currency Futures :100% of Total Margin (Span + Exposure) is required to take intraday positions and as well as to carry forward positions.
MCX Commodity Futures :100% of Total Margin is required to take intraday positions as well as to carry forward positions.
NSE/MCX Option : 100% of Total Margin is required to take intraday positions as well as to carry forward positions.
Real time margin can be calculated at Tradejini – Tradejini Margin Calculator
| Item | Equity/Cash | Futures | Options | Currency | Commodity |
|---|---|---|---|---|---|
| Margin Benefit for intraday trades (MIS) | Upto 5 times | 100% of Exchange prescribed margin | None for buying. For Sell same as Futures | 100% of Exchange prescribed | 100% of Exchange prescribed margin |
| Intraday Margin Time (MIS) | 9:15 to 15 min before market closes | 9:15 to 15 min before market closes | 9:15 to 15 min before market closes | 9:00 to 15 min before market closes | 10:00 to 15 min before market closes |
Note
- For Intraday Trading no Margin leverage is provided. Depending on volatility & market conditions such as high volatility or adverse market conditions the margins can be raised even more than 100%.
- Only FNO traded scrip’s are allowed to be traded in MIS.
- Clients are advised to maintain adequate funds in their Accounts. When the funds available in their account falls short of exchange specified margins requirement the open positions can be squared off from our RMS Team. During times of extreme volatility, there will be no margin call before the position is squared off. The loss could be more than the funds available in clients account before the position is squared off. All resulting charges or debits from such square offs will have to be borne by the client.
- All Intraday positions will be subject to square off if your losses exceed 50% of the available funds in your account. During times of extreme volatility, there will be no margin call before the position is squared off.
- Option premium received from writing options will not be considered as Cash receipt.
- Fines levied by the exchange for shortage of margin will be payable by the client.(Any Margin Shortfall other than Upfront margin)
- Collateral margin will not be considered for equity delivery buying.
- Call & Trade charge of Rs.20 is applicable for all positions squared off at RMS desk.
- All Intraday products (MIS, Cover Order and Bracket Order) positions will automatically be squared off during last 15 min before market closes. Call & Trade charge of Rs.20 is applicable for all positions squared off at RMS desk.
- Market rate orders are not allowed for illiquid Options Contracts.
- Trading in MCX compulsory delivery contracts will be banned a day prior to the delivery intention period.
- Physical Delivery of Commodities is not allowed.
- Trading in Agriculture commodities is not allowed.
- Open position in Commodities with staggered delivery will be closed 8 days prior to the delivery date in order to avoid physical delivery, also open positions in commodities with compulsory delivery will be closed a day before their respective delivery intention periods.
- On the start of the delivery intention period, clients will not be informed before closing any open positions to avoid compulsory delivery notice. Clients are advised to close their positions well in advance.
- In case your account is in debit balance and/or if you have insufficient funds to manage your trading positions, you will be charged an interest of 18.25% p.a. as delayed payment charges.
- If any intraday position is not squared off on the same day due to any reason, it shall be treated as a Cash and Carry in case of Cash Segment or NRML position in case of F&O Segment and will be carried forward to the next trading day. In such cases If there is any margin shortfall in Client’s account, our RMS desk shall square off position without any margin call.
Funds
PAY-OUT (Fund transfer from Tradejini to customer account)
Payin
Payments will be accepted from the client’s registered bank account only in the form of Online Bank Transfers, Payment Gateway transfers, UPI or Cheques. Cash deposit and Demand Drafts are not accepted. Tradejini offers multiple Funds Transfer options to suit the various customer needs and convenience.
- Payment Gateway : Transfer up to Rs.15 lakhs instantly through back office and online trading platform using instant transfer facility. This is chargeable @ Rs.9 plus GST per transfer irrespective of the amount.
- NEFT/RTGS : Customers can use fund transfer facility from their Bank wherein they can register ICICI Bank a/c of Tradejini Financial Services Pvt. Ltd, to which they can transfer funds. The Fund receipt confirmation typically takes 1-3 hours for RTGS and NEFT. There will be no charges for such transfers by Tradejini. You will get SMS confirmation once the amount is credited to your trading account.
- IMPS : IMPS transfer will be updated in back office in real time through API.
- UPI : UPI transfer can also be done.
- An SMS confirmation will be sent once the amount is credited to your account.
Note : Clients are not supposed to transfer amount from their un-registered bank accounts as the same will not be credited to their accounts. In case client wants to transfer amounts from additional bank accounts other than those registered with Tradejini, they must first map the same using prescribed forms along with proof before transferring the amounts.
Payout
All pay-outs will have to be placed on the Back office access provided to the clients. Tradejini approves the pay-out request as mentioned below.
- Pay-Out is processed once a day and will be done to the Primary bank account mapped to the clients trading account
- Pay-Out placed on a calendar day will be processed during next working day morning
- Please note Pay-Out will not be processed on Saturday, Sunday and holidays
- You will get SMS confirmation once the pay-out is processed
Collateral Margins (Margin against Stock)
We understand that not all clients can bring in cash to trade and since securities are assets, we could give margin against such assets for the client to trade. Tradejini gives margin to its clients for the exchange approved securities held by the client in their demat account to the extent of Margin Pledge created by them after applying suitable Hair cut.
Note
- This facility is available only for those clients who have opened a Trading and demat account through Tradejini with suitable Margin Pledge creation.
- On Clients request through the back office login the shares can be Margin Pledged. Such Pledged Shares for margin can be viewed in the back office login as Margin holding.
- You would continue to remain as the beneficiary owner of the securities that you have Pledged and you will continue to get all corporate actions benefits like dividends, splits, bonuses, etc. directly from the respective companies.
- For all pledge creation requests placed before 10:00 PM and OTP verified, the collateral margin will be updated for trade on next working day. All requests placed after 10:00 PM will be processed only on the next working day
- You would continue to remain the owner of the securities that you have transferred and you will continue to get all corporate actions benefits like dividends, splits, bonuses, etc. by way of a journal entry or shares credit to your trading account ledger.
- For all pledge & unpledge requests placed before 5:00 PM, the collateral margin will be updated for trade on T+1 day (next working day). All requests placed after 5:00 PM will be processed only on the next working day
- All unpledge requests placed before 03:30 PM, will be processed on the same working day.
- The unpledge requests placed after 03:30 PM will be processed on the next working day.
- Margin Pledge/Unpledge will cost Rs.32 plus GST per scrip per pledge irrespective of the quantity and the same will be debited to your Trading account Ledger.
- Margins will be provided after the Exchange applicable haircut. Example : If applicable Haircut Percentage= 12.5% Pledge stock worth = Rs.1,00,000 Collateral Margin will be = Rs.87,500.
- Collateral Margin will be shown as Direct collateral in Trading Terminal
- You will be able to use this entire margin after haircut for taking intraday or overnight positions in Futures, and for writing Options of Stocks, Index, currencies & Commodities
- Collateral Margin amount will not be allowed to buy Options & Cash delivery.
- For Carry forward positions a minimum of 50% of the required margin needs to be compulsorily in terms of cash and the remaining 50% can be in terms of collateral margin. Example : Exchange Required Margin: Rs.100000 In term of cash Rs.50,000 In terms Collateral Margin: Rs.50,000.
- Tradejini reserves the right to make any changes in the policy with due intimation to the client.
- Any shortfall in the Cash component of the margin needs to be replenished immediately. Non Maintenance of 50% cash component of margin will attracts Interest of 0.035% per day and the same will be debited to ledger on a daily basis.
- Tradejini has all the rights to liquidate the Margin stocks in case any debit arises in the client’s account and subsequent non-payment of such debits.
- 10% Cash margin is compulsory for Futures & Options positions to meet daily MTM obligations.
- Option premium have to be paid full in cash and collateral cannot be used for Option buying
Contract Notes and Margin Statement
Investor Grievances
The Compliance Officer shall be the designated officer for handling the Investors Grievances and Client Complaints. The email ID on which you can write in case you have any grievance is complaints@tradejini.com. The resolution of the Complaint shall be done at the earliest and the same shall be recorded in the register along with the date of resolution. Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances
Online Surveillance
The surveillance team watches the online trades as they happen and extra ordinary volume in the particular scrip is immediately investigated by calling up the branch and asking for details of clients and as per the details made available, the client’s previous purchase or sales transactions are looked into. Further any big value transactions are checked for whether the client is not trading beyond ones known Income (i.e. Income declared in KYC)
Margin penalty
Tradejini is required to collect upfront margins and MTM from its clients in Equity Derivatives, Currency Derivatives, and Commodity derivatives segments.
Upfront Margin: Initial Margin (Span & Exposure), net buy premium, physical delivery margins, Addition Margin and Special Margin. MTM: Marked to market losses
As per SEBI and Exchange regulations, penalty is applied as a percentage of the shortfall amount.
Short amount will be calculated: Total required margin – Client clear Ledger Balance Plus margin holding after haircut.
Client Clear Ledger calculation:
From the client ledger the balance will be taken without considering unsettled bills. Generally it is T-1 for FNO and T-1/T-2 for Cash depending settlement holiday.
Margin holding Calculation:
(T day holding quantity * previous day closing rate) – Previous days Var rate
Note:
- T day MTM profit and option net premium credit will not be considered for margin
- On Settlement holiday both T & T-1 day MTM profit and option net premium credit will not be consider for Margin
- Option net premium credit will not be adjusted to other segment premium debit
- Net Premium credit will not be consider for option writing margin
Physical Delivery - Derivative Contracts
SEBI in their circular has mandated physical settlement of all derivative open positions. Starting from October 2019 expiry, all stock F&O contracts will be compulsorily physically settled. Open position in stock derivatives will be physically settled & settlement obligation computed accordingly.
As mandated by exchange, the following positions in respect of contracts identified by Exchange shall be physically settled:
- All open futures positions after close of trading on expiry day
- All in-the-money Options contracts which are exercised and assigned
The settlement obligations shall be computed as under:
a. Unexpired Futures
- Long futures shall result into a buy (security receivable) position
- Short futures shall result into a sell (security deliverable) position
b. In-the-money call options
- Long call exercised shall result into a buy (security receivable) position
- Short call assigned shall result into a sell (security deliverable) position
c. In-the-money put options
- Long put exercised shall result into a sell (security deliverable) positions
- Short put assigned shall result into a buy (security receivable) positions
The quantity to be delivered/ received shall be equivalent to the market lot multiplied by number of contracts which result into physical settlement.
Please click here to refer more details on the settlement procedure prescribed by exchang
Tradejini RMS Policy on Physical Settlement
For Stock Futures
Margins requirement for all Stock Futures contracts will be increased one day prior to expiry (Wednesday and Thursday) in a phased manner and it will range from 50% to 100% of contract value by expiry day. Physical Delivery margin will be debited to your ledger along with Span and exposure. Example: SBIN Future margin requirement is 20% then you will be debited additional 40% each for last 2 days taking the total margin to 100% on Expiry day.
Check the margin requirement on our Margin calculator
For Stock Options
The margins will be levied as illustrated below:
For In the Money Options: ITM
Delivery Margin Calculation – Four trading days Prior to Expiry
Applicable Additional Margin As Per Exchange
| EOD | Premium + Additional Margin | Days |
|---|---|---|
| Expiry -4th trading Day | 20% of VAR+ELM | Friday |
| Expiry -3rd trading Day | 40% of VAR+ELM | Monday |
| Expiry -2nd trading Day | 60% of VAR+ELM | Tuesday |
| Expiry -1 trading Day | 80% of VAR+ELM | Wednesday |
| Expiry Day | 100% of VAR+ELM | Thursday |
SBIN Spot Rate: 321
SBIN 320 CE
Lot Size: 3000
VAR + ELM: 15%
CALCULATION:
| Lot Size | Strike Price | Contract Value | Var + ELM% | Var + ELM | Additional Margin | Additional Days Margin |
|---|---|---|---|---|---|---|
| 3000 | 320 | 960000 | 15% | 144000 | 28800 | Friday @ 20% of VAR+ELM |
| 3000 | 320 | 960000 | 15% | 144000 | 57600 | Monday @ 40% of VAR+ELM |
| 3000 | 320 | 960000 | 15% | 144000 | 86400 | Tuesday @ 60% of VAR+ELM |
| 3000 | 320 | 960000 | 15% | 144000 | 115200 | Wednesday @ 80% of VAR+ELM |
| 3000 | 320 | 960000 | 15% | 144000 | 144000 | Thursday @ 100% of VAR+ELM |
For Close to the Money Options: CTM
NSE defines three ITM (in-the-money) strike prices immediately below the final settlement price as CTM (close-to-money) strikes.
Example: SBIN final settlement is Rs.323
“Close to the money” Call options stick price: 310CE ,315CE, 320CE
“Close to the money” Put options stick price: 325PE, 330PE, 335PE
CTM Contracts are allowed to carry until expiry if you maintain sufficient margins as explained above.
Exchanges have provided an option to “Do not exercise long CTM” contracts. You should have sufficient cash balance to take physical delivery in case of Long CALL Options/ Short Put Options and Sufficient Demat holding in your demat account in case of Long PUT options/ Short Call Options. If client balance of Funds/Securities is not sufficient for taking/giving delivery, the position will be marked as “Do not exercise” and the option contract will expire worthless.
Example:
For ATM Put Option Long
Actual Intrinsic value is Rs.4
Lot Size: 3000
Actual Value: 3000*4: Rs.12000
If you leave this position for expiry and if you do not have 3000 shares of SBIN in your Demat account, we will mark this position as ‘Do not exercise’ and the option contract will expire worthless.
For ATM Call Option Long
Actual Intrinsic value is Rs.7
Lot Size: 3000
Actual Value: 3000*7: Rs.21000
If you leave this position for expiry and if you do not have sufficient balance (325*3000= Rs.975000) in your ledger account, we will mark this position as ‘Do not exercise’ and the option contract will expire worthless.
Out of the money contracts (OTM)
All OTM options will expire worthless. There will be no delivery obligations.
Spread and covered contracts
Difference in premium will be posted to your ledger.
Note :
- Margin shortage penalties will be charged as prescribed by the exchange for all F&O positions (including long options contracts).
- All costs arising out of such delivery obligations will be applied to the client’s account.
- Interest will be charged at 0.05% per day if your account results in a debit balance when the additional margins are applicable (two days before the expiry day.
- Delivery of shares: you should have shares in your demat account equal to the deliverable quantity. In case quantity is short will attract auction penalty for entire deliverable quantity, which will be borne by you.
- Delivery of Funds: you should have sufficient balance in your account to take physical delivery. If you have debit balance after physical delivery, Tradejini will liquidate the received stocks up to an extent of debit. Interest will be charged at 0.05% per day on the debit balance.
- Stocks received by means of physical settlement can only be sold after receiving delivery of stock in the demat account.
- You need to have a demat account linked to your trading account to trade in compulsory delivery contracts. This is to ensure that the stocks are credited in your demat account in the event of physical delivery
- All physically settled contracts will carry an STT levy of 0.1% of the contract value for both the buyer and the seller of the contract value.
- Any notional delivery will attract STT (Long in Futures and short in ITM call Option)
- Fresh long option positions will not be allowed on Wednesday and Thursday of the expiry week. Fresh positions will be allowed for futures and options writing contracts throughout the month.
- In the event that you do not fulfil these margin obligations on time, your positions are liable to be squared off. Any loss arising out of such square off would be the sole responsibility of the client. For any reason our RMS team is not able to square-off a margin shortfall position(s) and leads to compulsory physical delivery, the costs and risks of physical delivery will be applicable to the client.
- Contracts settled through physical settlement are illiquid closer to expiry. Any losses arising out of liquidation of position(s) with margin shortfall by our RMS team have to be borne by the client. It is advisable for a client to square-off such positions on their own well in time or add funds to carry the position(s) to expiry.
- Since there is a substantial increase in effort and risk to settle these F&O positions resulting in physical delivery, a brokerage of 0.25% of the physically settled value will be charged. For all netted-off positions (spread contracts, iron condor, etc), the brokerage will be charged at 0.1% of the physically settled value.
- If any short fall of funds and deliverable stocks, on the expiry day, our RMS team may square off all your open positions in ‘In-the-money’ options and stock futures to avoid physical settlement. Tradejini will not be responsible for any losses arising out of above actions / square-offs.