Continuous Continuous Funding SystemFunding System

Modified CFS Regulation, Modified CFS Regulation, 20052005

CFS Market Offered parallel to the Regular CFS Market Offered parallel to the Regular MarketMarket

Max CFS Permissible upto the Gross Max CFS Permissible upto the Gross purchase in the Regular Market. purchase in the Regular Market.

CFS Trades of that particular day will not CFS Trades of that particular day will not available for Release.available for Release.

CFS facility maximum for 22 working days.CFS facility maximum for 22 working days. Maintaining the leverage position in respect Maintaining the leverage position in respect

of CFS & Derivatives not exceeding 15 time of CFS & Derivatives not exceeding 15 time of NCBof NCB

Parallel CFS MarketParallel CFS Market Markets ScheduleMarkets Schedule

Opening of Regular Market          9:45Opening of Regular Market          9:45 Opening of Release Session       9:50Opening of Release Session       9:50 Opening of CFS Market              9:55Opening of CFS Market              9:55 Closure of Regular Market           2:15Closure of Regular Market           2:15 Closure of Release Session        2:45Closure of Release Session        2:45 Closure of CFS Market               3:15Closure of CFS Market               3:15 Auto release due to Auto release due to ex-dividend basisex-dividend basis will be done before the opening of CFS will be done before the opening of CFS

marketmarket All CFS Open trades will be released Forcefully on the First Day.All CFS Open trades will be released Forcefully on the First Day.

Capping Capping limitlimit is controlled in real-time is controlled in real-time through pre-trade checkthrough pre-trade check

Orders not submitted if CFS cappedOrders not submitted if CFS capped Cushion becomes available after releaseCushion becomes available after release May not accept new orders in CFS eMay not accept new orders in CFS e ven after release if prices are increasedven after release if prices are increased

Parallel CFS MarketParallel CFS Market Since the CFS market will be available in parallel to Since the CFS market will be available in parallel to

Regular Market therefore current prevailing rate of the Regular Market therefore current prevailing rate of the symbol will be used as a symbol will be used as a base ratebase rate for the CFS transaction for the CFS transaction at the time of execution.at the time of execution.

All previous CFS trades will be unreleased by default and All previous CFS trades will be unreleased by default and user will mark trades to releaseuser will mark trades to release in contrast to present in contrast to present practice. Presently all trades are released by default and practice. Presently all trades are released by default and users mark trades those he/she want to hold or carryusers mark trades those he/she want to hold or carry

Can be financer and be fiancée both at a time.Can be financer and be fiancée both at a time. CFS orders will be accepted in the range of 36% CFS orders will be accepted in the range of 36%

annualized badla Rates.annualized badla Rates.

NET CAPITAL NET CAPITAL BALANCE BALANCE

1.1. A Broker can avail Exposure limit up to the 25 A Broker can avail Exposure limit up to the 25

times of his Net Capital Balance in the Ready times of his Net Capital Balance in the Ready

Market.Market.

2.2. A Broker can avail his Exposure limit up to the 15 A Broker can avail his Exposure limit up to the 15

times of his Net Capital Balance in CFS Market times of his Net Capital Balance in CFS Market

against his leverage position in the Regular against his leverage position in the Regular

Market.Market.

3.3. A Broker can avail his Exposure limit up to the 10 A Broker can avail his Exposure limit up to the 10

times of his Net Capital Balance in the Future times of his Net Capital Balance in the Future

Market.Market.

4.4. A broker position will not exceed his leverage A broker position will not exceed his leverage

position in respect of CFS and other derivatives position in respect of CFS and other derivatives

not exceeding 15 times of his NCB.not exceeding 15 times of his NCB.

5.5. A broker position in Ready and Future altogether A broker position in Ready and Future altogether

will not exceed to the 25 times of his Net Capital will not exceed to the 25 times of his Net Capital

Balance Limit.Balance Limit.

Case1:Case1: “A “A BrokerBroker can take position in can take position in Ready Market up to 25 times Ready Market up to 25 times

of his Net Capital Balance of his Net Capital Balance Limit.”Limit.” For example: A broker has a Net Capital Balance Rs. 100,000For example: A broker has a Net Capital Balance Rs. 100,000

Total Net Capital Balance Limit available = 100,000 * 25 =2,500,000.Total Net Capital Balance Limit available = 100,000 * 25 =2,500,000.Bought 100,000 shares of SSGC @ 25 in Ready Market (2,500,000)Bought 100,000 shares of SSGC @ 25 in Ready Market (2,500,000)

As per above scenarioAs per above scenario No Further Buy orders will be accepted in the Ready MarketNo Further Buy orders will be accepted in the Ready Market No Further Sell orders will be accepted in any other symbol in the No Further Sell orders will be accepted in any other symbol in the

Ready Market.Ready Market. Only Sell Orders of SSGC will be accepted in the Ready Market.Only Sell Orders of SSGC will be accepted in the Ready Market. No Buy/Sell orders will be accepted in the Future Market.No Buy/Sell orders will be accepted in the Future Market. A broker can take CFS facility up to the 15 times of his NCB Limit A broker can take CFS facility up to the 15 times of his NCB Limit

according to the Ready Market Gross Purchase' “ I.e.leverage according to the Ready Market Gross Purchase' “ I.e.leverage position”).position”).

i.e. Can trade 60,000 shares of SSGC only in the CFS market.i.e. Can trade 60,000 shares of SSGC only in the CFS market.(1,500,000)(1,500,000)

Case2:Case2:“A Broker avails 10 times of “A Broker avails 10 times of

his NCB Limit in Ready Market his NCB Limit in Ready Market out of 25 times NCB Limit.”out of 25 times NCB Limit.”

For example:For example: A broker has a Net Capital Balance Limit 100, 000A broker has a Net Capital Balance Limit 100, 000 Total NCB limit available = 2,500,000Total NCB limit available = 2,500,000 Limit avails Limit avails = 1,000,000= 1,000,000 Bought 10,000 sharesBought 10,000 shares of BOP @ 100 in Ready Market.of BOP @ 100 in Ready Market. (1,000,000) (1,000,000) As per above scenarioAs per above scenario Further Buy/Sell orders will be accepted in the Ready Market up to the Further Buy/Sell orders will be accepted in the Ready Market up to the

remaining NCB Limit (i.e.1,500 ,000)remaining NCB Limit (i.e.1,500 ,000) Can avail upto15 times CFS facility of his NCB limit in the CFS Market Can avail upto15 times CFS facility of his NCB limit in the CFS Market

but according to the Ready Market Gross Purchase(s) leverage but according to the Ready Market Gross Purchase(s) leverage position. (In this case Broker can only trade 10,000 shares of BOP in position. (In this case Broker can only trade 10,000 shares of BOP in CFS market). (1,000,000)@ closing rate of 100.CFS market). (1,000,000)@ closing rate of 100.

Buy/Sell orders will be accepted in the Future Market up to the 5 times Buy/Sell orders will be accepted in the Future Market up to the 5 times of his NCB Limit.(500,000)of his NCB Limit.(500,000)

Condition : (Condition : (A broker can only use15 times of NCB value Limit A broker can only use15 times of NCB value Limit altogether in against his leverage position in CFS and Future marketsaltogether in against his leverage position in CFS and Future markets.).)

Case3Case3 “ Broker avails 10 time “ Broker avails 10 time

of his NCB limit out of 25 of his NCB limit out of 25 times in the Ready Market and times in the Ready Market and

10 times in Future Market.”10 times in Future Market.” For example:For example: Net capital Balance = 100,000Net capital Balance = 100,000 Total Net Capital Balance Limit =2,5000, 000Total Net Capital Balance Limit =2,5000, 000 Limit avails in Ready Market Limit avails in Ready Market = 1,000,000= 1,000,000 Limit avails in Future MarketLimit avails in Future Market = = 1,000,0001,000,000 Bought 10,000 sharesBought 10,000 shares of BOP @ 100 of BOP @ 100 in Ready Marketin Ready Market.. (1,000,000) (1,000,000) Bought 10,000 sharesBought 10,000 shares of LUCK-JAN @ 100 of LUCK-JAN @ 100 in Future Marketin Future Market.. (1,000,000) (1,000,000) As per above scenarioAs per above scenario Further Buy/Sell orders will be accepted in the Ready Market up to the Further Buy/Sell orders will be accepted in the Ready Market up to the

remaining NCB Limit (i.e.500 ,000)remaining NCB Limit (i.e.500 ,000) No further Buy/Sell orders will be accepted in other symbol(s) in the Future No further Buy/Sell orders will be accepted in other symbol(s) in the Future

Market except Sell Order of LUCK-JAN.Market except Sell Order of LUCK-JAN. Can avail up to the 5 times of his NCB Limit in against his leverage position Can avail up to the 5 times of his NCB Limit in against his leverage position

in CFS. (500,000) in CFS. (500,000) (Condition ): (Condition ): A broker will not exceed 25 times of his NCB value Limit A broker will not exceed 25 times of his NCB value Limit

altogether in the Ready Market and Future Market)altogether in the Ready Market and Future Market)

Case4Case4There is no Net Capital There is no Net Capital

Balance Limit on the Broker as Balance Limit on the Broker as a Fancier in the CFS Market.a Fancier in the CFS Market.

Can enter Sell orders in the CFS Market as a Financier.Can enter Sell orders in the CFS Market as a Financier.

QuestionsQuestions

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