Introduction

Stockology Securities is a SEBI registered Stock Broker. The Company has an Integrated Risk Management Policy that provides an integrated framework for managing risks within the Company. The Company has also from time to time adopted Operational Risk Management Strategies for its Stock Broking activities.

In the course of conducting its broking business Stockology Securities is exposed to various risks including market, credit, liquidity, operational and other risks that are material and require comprehensive controls and on-going oversight. Trading in stock market is always subject to market risks which cannot be predicted. Different kind of market risks are communicated to client at the time of account opening with us as risk disclosure document. We seek to minimize the risk of loss through a dynamic risk management policy which is an essential feature of our operations. It is important to note that our Risk Management Policy is not an insurance against losses but these are measures and precautions that are adopted by us to minimize the risk. Our Policy is based on market scenarios and our risk perceptions of the market and SEBI/Exchange regulations for the time being in force. This can be change from time-to-time based market conditions and decisions basis of internal policies and practices.

Objective

The main objective of this Policy is to ensure sustainable business growth with stability and to promote a proactive approach in reporting, evaluating and resolving risks associated with the Company’s business. In order to achieve the key objective, this Policy establishes a structured and disciplined approach to Risk Management.

• To ensure that all the current and future material risk exposures of the Company are identified, assessed, quantified, appropriately mitigated, minimized and managed i.e. to ensure adequate systems for risk management.
• To establish a framework for identification of internal and external risks specifically faced by the Company, in particular including financial, operational, sectoral, sustainability (particularly, trading related risks), information, Cyber security risks or any other risk as may be determined by the Risk Management Committee (“the Committee”) for the company’s risk management process and to ensure its implementation.
• To measure risk mitigation including systems and processes for Internal Control of identified risks.
• To enable compliance with appropriate regulations, wherever applicable, through the adoption of best practices.
• To assure business growth with financial stability.

Stockology Securities Discretions on Limits

1. Stockology Securities has discretion to change the limits/ratios on the basis of risk perception and other factors considered relevant (such as broker level/exchange level limits in specific securities or Income declaration or volume Specific exposures based on surveillance measures or Availability of cash/ cash equivalent margin etc.)
2. Stockology Securities shall not be able to inform the client of such variation, reduction or imposition in advance.
3. Stockology Securities shall not be responsible for client’s inability to execute any order on account of any such variation, reduction or imposition of limits.
4. Collateral can be provided in Cash or Non Cash component, and client should maintain Cash and Non Cash Ratio of 50:50 for trading. However, we will not restrict client to trade even if client fails to maintain Cash and Non Cash Ratio of 50:50, Stockology Securities on behalf of its client will maintain this ratio at Clearing Corporation level and will charge interest for this under head Delay / Late payment charges.
5. Penny/ illiquid Stocks: Stockology Securities shall have absolute discretion to accept, refuse or partially accept any buy or sell order for execution from a client in respect of penny stocks, illiquid stocks, stocks / contracts having low liquidity, illiquid “options”, far month “options”, writing of “options”, and any other contracts which as per the perception of Stockology Securities are extremely volatile or subject to Market manipulation.
6. In addition to existing Surveillance action being imposed from time to time, it may be noted that securities which are under graded surveillance measures will attract additional surveillance measures.

Right to Sell Client Securities or Close Positions

Stockology Securities shall have the right to sell client’s securities or close out open positions without notice in case of delay/failure to pay obligations or bring additional margins.

General Provisions

• Stockology Securities may take into account sales made or positions closed til cut-off time.
• Unrealized cheques not considered until clear proceeds received via instant modes (UPI/RTGS/NEFT). Demand Draft / Pay order not considered for this purpose.
• Right to sell/close is not an obligation.
• Right to sell in case of Ageing of debit and margin shortfall.
• Not responsible for losses/penalties from exchange caused by such square off.
• No obligation to compensate for or provide reasons for delay/omission to sell/close.

Restrictions on Position Creation/Square-off

Intra-Day Specifics

• Cut-off time: 15 minutes prior to market close.
• Price Band breaches (Upper/Lower) may lead to order cancellation/rejection.
• Validation logic for Sell orders near Upper Circuit and Buy orders near Lower Circuit (5% buffer).
• Risk perception based on corporate/market events may lead to suspension of trading in specific scrips.

Suspension & Voluntary Freezing of Account

Margin Collection in Derivative Segments

Fund Policy

1. Limit available: Unused Block Amount reduced by ledger debit.
2. Limit up to 97% of above.
3. Limit on Collateral pledged (approved/unapproved) not available.
4. Buying in Cash segment: 100% Margin.
5. No limit on Credit for sale (on Stock sold).
6. Fund Block shown in Pay-in; Unused block in Cash Margin.
7. Unblock updated in Cash Margin/Notional Column at request time; processed at EOD.
8. Payout can be marked up to normal ledger credit reduced by provisional charges.
9. Ageing square-off not done for ASBA clients.
10. Clients blocked for fresh trading if Ageing T+5 day or more.