Policies and Procedures

1. COLLECTION OF MARGINS
 

Margins, by whatever name called & defined by the Exchanges viz. Initial margin, Mark-to-Mark Margin, Exposure margin, Pre-expiry margin, Tender period or delivery period margin, Additional margin and Special cash margin or any other margin specified by Exchanges/Regulator from time to time. WMG Broking reserves the discretion to call for a higher percentage of margins from the client, than stipulated by the Exchanges/Regulator, depending on its risk assessment or Surveillance parameters or volatility in the markets. All margins are collected in the form of Funds and collaterals. Funds are collected by way of Account payee cheque (clearance required within 5 days)/NEFT / RTGS / IMPS etc. Collaterals can be in the form of pledged securities under MPR framework, Fixed Deposit Receipt, BGs, Warehouse Receipts, and any other form decided by WMG Broking subject to guidelines from Regulator/Exchanges from time to time. The threshold/apex limit for each form of collaterals, the ratio of funds and collaterals and their haircuts are solely at discretion of WMG Broking subject to the guidelines laid down by Exchanges/Clearing House /Regulator. Acceptance & Approval of Margins on fixed Deposit Receipt, BGs, Ware-House Receipts will be decided by WMG Broking on case-to-case basis.
 

2. REPORTING OF CLIENT'S MARGINS TO EXCHANGES & PENALTY FOR MARGIN VIOLATIONS
 

Margin reporting to Exchanges will be carried out as per the norms and guidelines of the Exchanges/Regulators. In case of open positions at multiple Exchanges/Segments, WMG Broking can apportion the available funds and collaterals on its discretion and practice. Applicable penalties on instances of shortages will be debited to clients' ledger with applicable tax rates subject to regulatory guidelines from time to time.
 

3. EXPOSURE SETTING
 

WMG Broking has absolute discretion in setting the exposure limit of a client. Exposure varies from time to time and it is depending upon the net cash & collateral available in a client's trading account. At any point in time, margin prescribed for any product/segment shall not be lower than the minimum margin stipulated by the Regulator/Exchanges from time to time. WMG Broking reserves the right to withdraw the exposure limit of a client at any point of time, without any further notice, if there are any dues/margin shortages in the client's account or based on Market conditions/Risk and Settlement policy of WMG Broking. During the day Fund Transfers and collateral pledge under MPR framework will be updated on Realtime basis. In case of Cheques, exposure will be updated subject to clearance/ internal approval. Squaring off trades in F&O, selling of unsettled positions in "cash product" and the shares lying in client's beneficiary account of WMG Broking DP/B2B with delivery POA/e-DIS/DDPI/Blocked Mechanism can be effected without any additional exposure. 100% credit balance is required in the trading account for trading in Trade-to-Trade scrips and other select stocks. WMG Broking has the absolute discretion to set Margin requirement limits for every trade. Margin requirements are set based on our Risk and Settlement policy and Market conditions. For trades in Equity segment, Margin is based on the security selected. This is made available in the Trading platform. For trades in Derivative segment, Upfront Margin is based on SPAN + Exposure margin, Additional margin, Delivery Margin and any other margin as stipulated by the Exchanges. WMG Broking reserves the right to block trades in any securities/contracts, based on risk assessment or Surveillance parameters of WMG Broking/Exchanges/Regulator or on PMLA guidelines, though such client position may be within Exchange position limits. Single Order Value Limit for Cash market segment is Rs.50 Lakh and for Derivative segment is Rs.3 Crores or decided by management from time to time subject to Quantity limit/value limit specified by the Exchange. Any change for this value will be made as per Credit Policy of WMG Broking subject to restrictions of Exchanges/Regulator. No fresh trades will be allowed in banned scrips/contracts. Any changes in the Risk and Settlement Policy shall be subject to the approval of Risk & Settlement Committee.
 

4. LIQUIDATION OR SQUARING/CLOSING OUT OF CLIENT'S OPEN POSITIONS
 

If shares purchased by clients are pending in WMG Broking's pool/CUSPA account due to non-payment of required funds, such shares will be sold to the extent of amount due, at any point of time after settlement pay-in time stipulated by exchange. Clearance from CUSPA will be done as per SEBI guidelines including for PIS clients. Pending cheques in client's ledger will not be considered while such clearance. If total debit/MTM % in the client's account is greater than or equal to the stipulated % of the total Collateral, then the existing positions will be squared. In the Derivative segment, if there is no sufficient margin, the open positions will be squared. If there is any position taken during the banned period, such position will be square off any point of time without further notice. WMG Broking shall attempt liquidating necessary positions security/Commodity hitting the daily price filter (circuit) to avoid any dues in client's account. The losses, if any, arising on the square-off trades shall be borne by the client. Open positions that are not squared-off for reasons beyond the control of WMG Broking viz. technical issues, price band etc. shall be squared-off in the immediate session thereafter or whenever the security/commodity/contracts is traded. WMG Broking reserves the right to square off any position taken without sufficient margin at any point of time without any further notice. WMG Broking reserves the right to square off existing positions if cheques received against these are dishonored. WMG Broking reserves the right to invoke/sell pledged shares/any other collateral to cover MTM losses. In addition to above points, there will be auto square off of positions (Cash & Derivative) taken in INTRADAY option. The timings of auto square off will be displayed on the internet trading website. WMG Broking reserves the right to close the positions and the shares available as Collateral/holdings to recover the outstanding dues. In case of Physically Settled Derivative contracts, current month FAO contracts need to roll over/close before two days prior to final settlement day. WMG Broking reserves the right to square off such contracts, If there is no sufficient margin/securities in the client account for long/short positions. In case of Commodity derivatives, requirements for valid delivery should be met on or before commencement of delivery period or else positions will be squared off.
 

5. SECURITIES PAY-OUT MECHANISM:
 

A. The securities received in pay-out against which payment has been made by clients, shall be transferred to the demat account of the respective clients within one working day of the pay-out. Such securities shall be transferred directly from the pool account of WMG Broking to the demat account of the respective client.

B. The securities that have not been paid for in full by the clients (unpaid securities), shall be transferred to client demat account and will be auto pledged to WMG Broking 'Client Unpaid Securities Pledgee Account'.

C. The securities auto pledged in the “client unpaid securities pledgee account” shall either be unpledged to the respective client upon fulfilment of client’s funds obligation or shall be disposed off in the market by WMG Broking within five trading days after the pay-out. The unpaid securities shall be sold in the Unique Client (UCC) of the respective client and will be invoked/unpledged in DP. Profit/loss on the sale transaction of the unpaid securities, if any, shall be transferred to/adjusted from the respective client.

D. In case of securities (where inter-depository transfer is not available) held in a particular depository (i.e. SGB, Gsecs) and the client does not have an account in the said Depository, the client will have to open an account.
 

6. PHYSICAL SETTLEMENT OF FAO CONTRACTS

All open Stock futures positions after close of trading on expiry day and all in-the-money stock options contracts which are exercised and assigned on expiry day are settled physically. Obligations in physical settlement of F&O segment for a particular expiry shall be netted with Obligations in Capital Market segment of corresponding trade date. Changes will be applicable as per the guidelines of regulators, exchanges and clearing corporations from time to time.
 

7. POLICY ON PENNY STOCKS

Definition: Any stock which is trading on a stock exchange at a price less than the face value is defined as a penny stock. Further, such stocks can be fundamentally weak in terms of net worth, sales, market capitalization and/or profitability and may have violated provisions of the Listing Agreement of the exchange in which they are listed or have large number of investors' complaints pending against them. WMG Broking will have the right to refuse execution of trades in the above stocks. List of penny stocks is available in the customer care site. Further, as per SEBI circular CIR/MRD/DP/6/2013 dated February 14, 2013, clients are requested to note the penalty criteria for certain trades in periodic call auction. Penalty for trades in periodic call auction: - In the event where maximum of buy price entered by a client (on PAN basis) is equal to or higher than the minimum sell price entered by that client and if the same results into trades, a penalty shall be imposed on such trades. The penalty shall be calculated and charged by the exchange as per the defined formula, which is currently as under: • For buy orders placed above 25% of the floor price, penalty shall be 100% of trade value (Buy Value-Sell Value). • For buy orders placed at or above 20% and up to 25% of the floor price, penalty shall be 50% of trade value (Buy Value-Sell Value). • For buy orders placed at or above 15% and up to 20% of the floor price, penalty shall be 25% of trade value (Buy Value-Sell Value).
 

8. POLICY ON INTERNET BASED TRADING FACILITY

All clients are provided with facilities to execute orders directly through internet. Clients are provided with a login ID and password which has to be reset by clients on the first login. Clients are advised to keep their password confidential and change the same frequently. Further, clients are advised to take adequate security measures to prevent unauthorized access to the trading platform provided by WMG Broking. In case of any observation of discrepancy in the order execution or trades, Clients shall bring the same to the notice of WMG Broking within 24 hours of the occurrence of the event. WMG Broking does not take any responsibility or liability for the delay in the execution of orders or non-execution of orders due to any technical reason. The trading system provides the facility for clients to set their own exposure limits for trades, view the status of their orders, trades and ledgers on real-time basis. Clients may also modify or cancel their orders, provided the same has not been executed. In case of discrepancy, clients are advised to inform their branch or customer care immediately. Clients can place their orders through the nearest branch or call center in case of non-availability of internet facility. WMG Broking reserves the right to temporarily disable or terminate the Internet Trading Facility provided to clients if found necessary.
 

9. POLICY ON PRE-FUNDED INSTRUMENTS/ ELECTRONIC FUND TRANSFERS:

In accordance with SEBI circular CIR/MIRSD/03/2011 dated June 9, 2011, WMG Broking does not accept cash or demand drafts (except from banks where we don’t have clearing facility and same should be as per Regulatory guidelines) from clients. WMG Broking accepts pre-funded instruments only if the instruments are from clients’ own accounts. The proof of the same may be obtained from the client. As a proof, the copy of the requisition slip for such pre-funded instruments from the issuing bank must be obtained by the branch, which must contain the name of the client. Alternatively, if the instrument is received through mail, then the relationship manager should obtain the proof from the client within 48 hours. All pre-funded instruments should be cleared within 5 working days. In case of pre-funded instruments received from pool A/c. /Beneficiary A/c., where it is not possible to identify the source of the fund, WMG Broking shall ensure the proof of fund received from the client’s banker. For electronic fund transfers, the payment received should be from the client's bank account. If the same is not visible in the system, the back office team shall collect the proof from the client in the form of a copy of bank statement/passbook. This proof should contain the name of the client and transaction details. Where the proof is not available for the pre-funded instruments or electronic fund transfers, the same will be reverted to the client within 24 hours or latest by next working day. The proof of fund receipt must be retained and made available during inspection. WMG Broking reserves the right to accept or reject pre-funded instruments and electronic fund transfers at its sole discretion.
 

10. POLICY ON RECONCILIATION OF CLIENT'S TRANSACTIONS

WMG Broking has the policy of reconciling the clients’ funds, securities and commodities positions regularly to ensure that the transactions executed and positions held are in accordance with the records maintained. This helps in ensuring that there are no discrepancies in the records. The reconciliation is done by comparing the records of the transactions executed by the clients with the records maintained by the exchanges, depositories and banks. Any discrepancies observed during the reconciliation process are immediately brought to the notice of the concerned department for rectification. The reconciliation of the clients’ funds is done on a daily basis, while the reconciliation of securities and commodities positions is done on a fortnightly basis. In addition to this, a monthly statement of accounts is sent to the clients which include the details of the transactions executed, funds and securities balances and other related information. Clients are advised to go through the statement of accounts and report any discrepancies observed to the customer care or the concerned branch within 7 days of receipt of the statement. WMG Broking takes utmost care to ensure that the transactions executed and positions held by the clients are accurate and up to date.