Max Net Exposure to 1 Cr in Navia Trading Platform for Commodity Trades and

Max Order Value to 1 Cr. in Navia and Rocket Plus Platform for Commodity Trades

We have set Max Net exposure to Rs. 1 Cr. for Commodity trades in Navia Trading Platform. Due to segregation of margins requirement of the regulators we have to report client balances in different segments to the exchanges and allocate the same at clearing corporation or Clearing member end. We have to do this at the beginning of the day. We have no idea in which segment the client will utilize the balance so we allocate the amount based on the last traded segment. However in the Trading platform we allow clients to utilize the same funds across all segments including Commodity segment. Many brokers require that you separately allocate funds for commodity segment but we allow you to use your equity/equity derivative/currency derivative allocated fund also for Commodity trading. This exposes us to a risk of sudden large trades in Commodity by clients whose funds are allocated in equity/equity derivative/currency derivative segment at the CC or PCM level. To safeguard our interest here we have restricted Max net exposure to Rs. 1 Cr. in Navia Platform for Commodity Trades and Max Order value to Rs. 1 Cr. in Navia and Rocket Plus Platform for Commodity Trades.  This does not mean that you cannot have a higher than 1 Cr. net exposure. It only means that you would first need to intimate us, and we will do a re-allocation of your funds to the CC/PCM and then enhance your limit to take higher exposure. 

Alert when sales from demat account exceeds 1 Cr in Navia Platform

For every security you sell from your DP account,  margins are required at the exchange. However at Navia we do not collect margins from clients to sell their DP holding securities. Now with the introduction of segregation of client collaterals by the regulators which is explained above we are forced to set a 1 Cr. Sale limit on DP holding. This does not mean that you cannot sell your DP stocks above 1 Cr. in value. It only means that you would first need to do early payin to block DP stocks towards obligation after which we will enhance your DP sale limit

Restriction to un-hedge partially in Rocket Plus

If you have a hedge position the margin requirement comes down. So when you try to partially remove the hedge the margin requirements may increase substantially. Our Rocket Plus system would not allow you to partially un-hedge if your account is resulting in a margin shortfall due to partial hedge removal. Such orders will be rejected by our RMS.