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Continuous Funding System. Modified CFS Regulation, 2005 CFS Market Offered parallel to the Regular Market CFS Market Offered parallel to the Regular.

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Presentation on theme: "Continuous Funding System. Modified CFS Regulation, 2005 CFS Market Offered parallel to the Regular Market CFS Market Offered parallel to the Regular."— Presentation transcript:

1 Continuous Funding System

2 Modified CFS Regulation, 2005 CFS Market Offered parallel to the Regular Market CFS Market Offered parallel to the Regular Market Max CFS Permissible upto the Gross purchase in the Regular Market. Max CFS Permissible upto the Gross purchase in the Regular Market. CFS Trades of that particular day will not available for Release. CFS Trades of that particular day will not available for Release. CFS facility maximum for 22 working days. CFS facility maximum for 22 working days. Maintaining the leverage position in respect of CFS & Derivatives not exceeding 15 time of NCB Maintaining the leverage position in respect of CFS & Derivatives not exceeding 15 time of NCB

3 Parallel CFS Market Markets Schedule Markets Schedule Opening of Regular Market 9:45 Opening of Regular Market 9:45 Opening of Release Session 9:50 Opening of Release Session 9:50 Opening of CFS Market 9:55 Opening of CFS Market 9:55 Closure of Regular Market 2:15 Closure of Regular Market 2:15 Closure of Release Session 2:45 Closure of Release Session 2:45 Closure of CFS Market 3:15 Closure of CFS Market 3:15 Auto release due to ex-dividend basis will be done before the opening of CFS market Auto release due to ex-dividend basis will be done before the opening of CFS market 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 limit is controlled in real-time through pre-trade check Capping limit is controlled in real-time through pre-trade check Orders not submitted if CFS capped Orders not submitted if CFS capped Cushion becomes available after release Cushion becomes available after release May not accept new orders in CFS e May not accept new orders in CFS e ven after release if prices are increased ven after release if prices are increased

4 Parallel CFS Market Since the CFS market will be available in parallel to Regular Market therefore current prevailing rate of the symbol will be used as a base rate for the CFS transaction at the time of execution. Since the CFS market will be available in parallel to Regular Market therefore current prevailing rate of the symbol will be used as a base rate for the CFS transaction at the time of execution. All previous CFS trades will be unreleased by default and user will mark trades to release in contrast to present practice. Presently all trades are released by default and users mark trades those he/she want to hold or carry All previous CFS trades will be unreleased by default and user will mark trades to release in contrast to present practice. Presently all trades are released by default and users 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% annualized badla Rates. CFS orders will be accepted in the range of 36% annualized badla Rates.

5 NET CAPITAL BALANCE 1. A Broker can avail Exposure limit up to the 25 times of his Net Capital Balance in the Ready Market. 2. A Broker can avail his Exposure limit up to the 15 times of his Net Capital Balance in CFS Market against his leverage position in the Regular Market. 3. A Broker can avail his Exposure limit up to the 10 times of his Net Capital Balance in the Future Market. 4. A broker position will not exceed his leverage position in respect of CFS and other derivatives not exceeding 15 times of his NCB. 5. A broker position in Ready and Future altogether will not exceed to the 25 times of his Net Capital Balance Limit.

6 Case1: “A Broker can take position in Ready Market up to 25 times of his Net Capital Balance Limit.” For example: A broker has a Net Capital Balance Rs. 100,000 For 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 25 in Ready Market (2,500,000) As per above scenario As per above scenario No Further Buy orders will be accepted in the Ready Market No Further Buy orders will be accepted in the Ready Market No Further Sell orders will be accepted in any other symbol in the Ready Market. No Further Sell orders will be accepted in any other symbol in the 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 according to the Ready Market Gross Purchase' “ I.e.leverage position”). 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 position”). i.e. Can trade 60,000 shares of SSGC only in the CFS market.(1,500,000) i.e. Can trade 60,000 shares of SSGC only in the CFS market.(1,500,000)

7 Case2: “A Broker avails 10 times of his NCB Limit in Ready Market out of 25 times NCB Limit.” Case2: “A Broker avails 10 times of his NCB Limit in Ready Market out of 25 times NCB Limit.” For example: For example: A broker has a Net Capital Balance Limit 100, 000 A broker has a Net Capital Balance Limit 100, 000 Total NCB limit available = 2,500,000 Total NCB limit available = 2,500,000 Limit avails = 1,000,000 Limit avails = 1,000,000 Bought 10,000 shares of 100 in Ready Market. (1,000,000) Bought 10,000 shares of 100 in Ready Market. (1,000,000) As per above scenario As per above scenario Further Buy/Sell orders will be accepted in the Ready Market up to the remaining NCB Limit (i.e.1,500,000) Further Buy/Sell orders will be accepted in the Ready Market up to the remaining NCB Limit (i.e.1,500,000) Can avail upto15 times CFS facility of his NCB limit in the CFS Market but according to the Ready Market Gross Purchase(s) leverage position. (In this case Broker can only trade 10,000 shares of BOP in CFS market). closing rate of 100. Can avail upto15 times CFS facility of his NCB limit in the CFS Market but according to the Ready Market Gross Purchase(s) leverage position. (In this case Broker can only trade 10,000 shares of BOP in CFS market). closing rate of 100. Buy/Sell orders will be accepted in the Future Market up to the 5 times of his NCB Limit.(500,000) Buy/Sell orders will be accepted in the Future Market up to the 5 times of his NCB Limit.(500,000) Condition : (A broker can only use15 times of NCB value Limit altogether in against his leverage position in CFS and Future markets.) Condition : (A broker can only use15 times of NCB value Limit altogether in against his leverage position in CFS and Future markets.)

8 Case3 “ Broker avails 10 time of his NCB limit out of 25 times in the Ready Market and 10 times in Future Market.” Case3 “ Broker avails 10 time of his NCB limit out of 25 times in the Ready Market and 10 times in Future Market.” For example: For example: Net capital Balance = 100,000 Net capital Balance = 100,000 Total Net Capital Balance Limit =2,5000, 000 Total Net Capital Balance Limit =2,5000, 000 Limit avails in Ready Market = 1,000,000 Limit avails in Ready Market = 1,000,000 Limit avails in Future Market = 1,000,000 Limit avails in Future Market = 1,000,000 Bought 10,000 shares of 100 in Ready Market. (1,000,000) Bought 10,000 shares of 100 in Ready Market. (1,000,000) Bought 10,000 shares of 100 in Future Market. (1,000,000) Bought 10,000 shares of 100 in Future Market. (1,000,000) As per above scenario As per above scenario Further Buy/Sell orders will be accepted in the Ready Market up to the remaining NCB Limit (i.e.500,000) Further Buy/Sell orders will be accepted in the Ready Market up to the remaining NCB Limit (i.e.500,000) No further Buy/Sell orders will be accepted in other symbol(s) in the Future Market except Sell Order of LUCK- JAN. No further Buy/Sell orders will be accepted in other symbol(s) in the Future Market except Sell Order of LUCK- JAN. Can avail up to the 5 times of his NCB Limit in against his leverage position in CFS. (500,000) Can avail up to the 5 times of his NCB Limit in against his leverage position in CFS. (500,000) (Condition ): A broker will not exceed 25 times of his NCB value Limit altogether in the Ready Market and Future Market) (Condition ): A broker will not exceed 25 times of his NCB value Limit altogether in the Ready Market and Future Market)

9 Case4 There is no Net Capital Balance Limit on the Broker as a Fancier in the CFS Market. Case4 There is no Net Capital Balance Limit on the Broker as 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.

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