Trading Member Position

FORMS OF COLLATERALS ACCEPTARLE AT NSCCL

Members and dealers, authorised dealer have to fulfill certain requirements and provide colleteral deposits to become members of the Future and Options segment. All colleteral deposits are segregated into cash component and non-cash component. Cash component means cash, bank guarantee, fixed deposit receipts. T-Bills and dated government securities. Non cash component means all other forms of colleteral deposits like deposit of approved demat securities.

REQUIREMENTS TO RECOME AUTHORISED/APPROVED USER

Trading members and participants are entitled to appoint, with the approval of the Futures and Options segment of the exchange authorised persons and approved users to operate the trading workstation(s). These authorised users can be individuals, registered partnership firms or corporate bodies.

Authorised persons cannot collect any commission or any amount directly from the clients he introduces to the trading member who appointed him. However he can receive a commission or any such amount from the trading member who appointed him as provided under regulation.

Approved users on the Futures and Options segment have to pass a certification program which has been approved b y SEBI. Each approved user is given a unique identification number through which he will have access to the NEAT system. The approved user can access the NEAT system through a pass word and can change such password from time to time.

POSITION LIMITS

Position limits have been specified by SEBI at trading member, client, market and FI I levels respectively.

TRADING MEMBER POSITION LIMITS

The trading member position limits are specified as given below:

a. Trading member position limits in equity index option contracts: The Trading Member position limits in equity index option contracts is higher of Rs.250 Crore or 15 % of the total open interest in the market in equity index option contracts. The limit is applicable on open positions in all option contracts on a particular underlying index.

b. Trading Member position limits in equity index futures contracts: The trading member position limits in equity index futures contracts is higher of Rs.250 Crore or 15 % of the total open interest in the market in equity index futures contracts. This limit is applicable on open positions in all futures contracts on a particular underlying index.

 

Learn option trading course  from expert – Click Here

 

www.Moneymantrastock.com

call @ 099289-77488

 

Leave a Reply

You must be logged in to post a comment.