The following document describes the risk management policy followed by Prudent Corporate Advisory Services Limited (herewith refer as PCAS). Please read it carefully as it pertains to your trading activity.
For sake of better understanding, the square off percentage of 80% is basically the threshold base limit and it should not be construed as exact 80%. The position may get squared off at or around 80% of the base threshold limit. In case of extreme market volatility, it may not be possible to monitor the square off limit from percentage (%) to percentage (%).
Further the square off will also be based on the extreme volatility in the market which may have severe impact on the client and the company. The Company may or may not inform the client on the same in case of such circumstances. (SEBI guideline on close out/square off)
If the client is having MTM loss of more than 40% but less than 80% of his available cash margins, the square off call will be taken by the Risk team. A prior intimation on the same may or may not be given and thus clients are requested to take care of their positions and MTM.
There may or may not be a margin calls or intimation from our RMS desk.
PCAS shall not be liable for any loss that arises due to selling of scrips by the RMS team on non-payment as well as loss in case where selling of scrips has not been carried out by the RMS team as mentioned above due to any reason.
PCAS reserves the right to change the above policies any time in general or in particular case within the Exchange regulations / SEBI regulations / guidelines.