ARG COMPLIANCE MANUAL - Rathi Online

INCREASED POSITION IN F&O MARKETWIDE LIMITAs per the Bye Laws of the Exchange and Circular No. NSCC/F&O/C&S/365 dated August 26,2004 wherein inter-alia it is specified that when the open interest in an underlying crosses 95% ofthe specified Market Wide Position Limit, clients / members shall trade only to decrease theirpositions through offsetting positions, till normal trading in the scrip is resumed.You are advised to take due caution that no new positions are taken by the client/constituent andthat the client/constituent trades only to decrease his positions through offsetting positions till themarket wide open interest in the aforesaid underlying comes down to 80% or below of the marketwide position limit.Hence it has been amended that with effect from 9 th May 2006 the branch will directly beresponsible for the open positions and for every penalty imposed by the Exchange the followingaction would be taken:Penalty Levied = Debit to Dealers Salary A/c (Rs.1000) + Debit to Branch Managers A/c /Franchisee A/c(Balance Amount Against Incentive.70