ARG COMPLIANCE MANUAL - Rathi Online

AUTO SQUARE OFF – BSE AND NSE CASH SEGMENT (AGEING BASED)Applicability1. Client having net debit balance on t+4 th working day will be squared off on t+5 th morning(irrespective of coverage).2. Minimum Ageing / Square off amount will be Rs. 5000.3. Auto Square off orders will be generated at 105% of required Square off/ Debit amount.However, actual square off amount could be less than or equal to the actual square offamount depending on market price.Criterion1. Will be considering F&O free ledger balance while calculation of square off amount.2. CMS entries entered in WEBRMS by branches until 8.15 a.m. on T+5 th day will be takeninto consideration while calculation of square off amount.3. Any shortfall amount remaining after square off has to be collected by the branches.Procedure:1. RMS will generate Square Off report at 6.30 pm on t+4 th day’ evening and Final Squareoff report will be generated on t+5 th day morning around 8.30 am. Simultaneously, thesereports shall be made available to front offices on WebRMS.2. Ho- RMS will carry-out square off as per final Square Off report between 9.00 am to 9.20am via file upload on direct terminal.3. Square off Client codes’ holding which is to be squared off will not be uploaded into theOmnesys.4. Scrip identification: Scrip identification for auto square off, will be on the basis of leastimpact cost ** with adequate quantity nearest to the square off amount. In case ofinsufficient value of scrip having least impact cost, the scrip having next least impact cost(nearest to the square off amount) will be selected for square off.5. Holding location :POA client- Order priority to square off will be Pool, DP and BTST respectively.Non POA Client: order priority to square off will be Pool and BTST respectively.Scrip identification process will be in the given order in each holding location.6. Pool and BTST holding will be squared off in respective exchange at which purchases aremade by the client. In case client having both segment rights then DP (POA) holding willbe squared off in NSE segment and otherwise DP (POA) will be squared off in thesegment where client has right to trade.**Meaning of Impact Cost =Impact cost is calculated by taking four snapshots in a day from the order book in the past six months. These foursnapshots are randomly chosen from within four fixed ten-minutes windows spread through the day.The impact cost is the percentage price movement caused by an order size of Rs.1 Lakh from the average of thebest bid and offer price in the order book snapshot. The impact cost is calculated for both, the buy and the sell sidein each order book snapshotThe buy side impact cost (or sell side impact cost) is the simple average of the buy side impact cost (or sell sideimpact cost) computed for all the snapshot observations in the past 6 months.Impact cost for the purpose of all computations shall be Mean of such buy side impact cost and sell side impact cost.40