|
Risk
Management System Policy |
1.
We
have
installed
ODIN
as
a front-end
and
also
use
NEAT
wherever
required.
Both
these software are provided with
controllable risk
parameters.
2.
We have online real-time basis
risk management
software
with well
defined
parameters installed in
our
trading system
provided by outside vendor
who
has
provided similar software and
proven functioning of
the same.
3.
The risk parameters are the
very well defined
by
the
Director(s)
and the risk management
team
sitting at
Head
Office. The
executive
personnel
do
have
limited authority to change any
risk parameters
defined and
instructed to them and
installed in the software.
4.
Further, the trade surveillance
and monitoring of trading activities
of different constituents connected to
our main server is being
viewed
on
continuous
basis
and alerts, warnings are sent
to the erring
constituents immediately and
corrective
actions are taken instantly.
5.
Further,
strict
monitoring and
follow-ups
is
being
kept
on
all
the
sub-broker office
after
day
end reports and any warnings or
correction in
security parameters on the risk
management software is required with
specific
sub-broker office or
a
client is
taken before day end.
6.
Further,
the
analysis
of
trading
activity of
major clients is being
regularly done to
ensure that no risk of bad
debts or faulty activity is carried
out by any constituents.
7.
The company is not having any
margin funding and financing activity
and feel that this is the best policy
to mange the risk and relation with
clients.
8.
There is a continuous upgrading
in the Risk Management system to
prevent the risk to company /
exchange.
9.
Properly verify the credentials
of clients specifically who deal in
large amount of trading. We take
sufficient co-lateral before allowing
clients to trade. And our clients are
safeguarded against the risk from
company, as company do not involve in
any kind of proprietary trading or
investment activity.
10.
Normally give the exposure to
clients on the basis of their funds
and securities lying with company.
Also consider the past history and
business relationship of clients with
the company and allow them exposure
limit accordingly.
11.
During the volatility in the
market, we constantly watch the
position of clients and restrict their
exposure. During sudden crash in the
market, we insist client to make their
payment immediately against their
obligation otherwise we force them to
square up their excess positions.
12.
Also do not entertain clients
for long outstanding position and
restrict them for further trading. If
any client has outstanding position
and no security lying towards margin
with the company, we set the exposure
limit zero to those clients in all
segments.
|