POLICIES & PROCEDURES
Tradejini Commodity Pvt Ltd.,
Policies & Procedures
Jayanagar 4th Block Bangalore-560011
(NSE: CM-FO-CD | BSE: CM-FO-CD | MCX: FO | MSEI: CM-FO-CD)
CDSL Depository Participant: IN-DP-CDSL-681-2013
Mutual Fund ARN : 87156
The trades of clients shall be carried out in the respective client code only. The dealers shall take utmost care while executing the trades of the clients regarding the accuracy of Client Code, Quantity and Price, etc. Product Types under which Orders are to be placed:
CNC (Cash And Carry): If you want to buy for Delivery (buy stock and hold them overnight) in CM segment, you will have to place your orders under product type “CNC”.
- Clients are required to have sufficient fund balance in trading account for buying.
- You need to have enough quantity of shares in your Demat account for selling shares.
- Demat account Should be mapped to your trading account.
- Short sell not allowed in this product.
NRML (Normal): If you wish to carry forward your Derivative positions to the next trading day, you will have to place your orders under product type “NRML”.
- Product Can be used in Future and Option Orders (NSE – FNO & CDS and MCX).
- Placing order under product type NRML will require full margins as specified by Exchanges.
MIS (Margin Intraday Square off): If you wish to trade for intraday purpose in any Exchange and segment (CM or F & O), you will have to place your orders under product type “MIS”.
- Margin leverage will be provided for this product.
- Intraday margins for Cash are pre-determined, so you will get up to 10 times exposure on your cash. Margin Multiplier
- Intraday margins for Futures and writing options (NSE FNO) are 40% of the SPAN + Exposure margin prescribed by the exchange. Example: if the margin requirement for Nifty is Rs.100000, at Tradejini you can trade this at only Rs.40000.Margin Multiplier
- Intraday margins for Futures and writing options (NSE CDS) are 50% of the SPAN + Exposure margin prescribed by the exchange. Example: if the margin requirement for USDINR is Rs.5000, at Tradejini you can trade this at only Rs.2500.Margin Multiplier
- For Commodity Futures: 50% of the margin prescribed by the exchange. Example: if the margin requirement for GOLDM is Rs.20000, at Tradejini you can trade this at only Rs.10000.Margin Multiplier
- All MIS orders not closed by clients will be subject to Auto square off 15 minutes before respective market close time.
- No leverage for Option buying.
- If you have taken an MIS Position and wish to carry forward the same, you will have the option of converting the position to NRML, subject to availability of funds in your account. You need to do this before the MIS position is closed out
Cover order is like any other market order but placed with a compulsory stop loss. The initial order whether a buy or sell is always a market order. It’s very useful for intraday trader because of the higher intraday leverage along with risk management by having compulsory stop loss.
Bracket orders are designed to help limit your loss and lock in a profit by “bracketing” an order with two opposite-side orders. A BUY order is bracketed by a higher-side sell limit order and a lower-side sell stop loss order. A SELL order is bracketed by a higher-side buy stop loss order and a lower side buy limit order.
- Cover order & Bracket Orders are not available for Stock options, Currency options and Commodity Options.
- Cover order & Bracket Order are compulsory intraday products, hence the system will automatically square-off them before 15 min of market closing time in case not closed by clients.
- Cover order & Bracket Order are not allowed in market preopen period.
Tradejini Provides consolidated Margin for Equity and Commodity Segment. Tradejini does not engage in the business of Client Funding. Clients are required to have sufficient balance in their accounts to hold/carry forward positions.
Real-time Margin can be calculated at Tradejini – Tradejini Margin Calculator
|Margin Benefit for intraday trades (MIS)||Upto 10 times||40% of Exchange prescribed margin||None for buying. For Sell same as Futures||50% of Exchange prescribed||50% of Exchange prescribed margin
|Intraday Margin Time (MIS)||9:15 to 15 min before market closes||9:15 to 15 min before market closes||9:15 to 15 min before market closes||9:00 to 15 min before market closes||10:00 to 15 min before market closes|
- Intraday Margin leverage is provided subject to volatility & market conditions. In case of high volatility or adverse conditions the margins can be raised up to 100%
- Only FNO traded scrip’s can be placed in MIS.
- Clients are advised to maintain adequate funds in their Accounts & in case the funds available in their account is short of exchange specified margins – Any open positions can be squared off from our RMS Desk. During times of extreme volatility, there will be no margin call before the position is squared off. The loss could be more than the funds available in your account before the position is squared off. All resulting charges or debits from such square offs will have to be borne by the client.
- All Intraday positions will be subject to square off if your losses exceed 50% of the available funds in your account. During times of extreme volatility, there will be no margin call before the position is squared off.
- Option premium received from writing options will not be considered as Cash receipt.
- Fines levied by the exchange for shortage of margin will be payable by the client.(Any Margin Shortfall)
- Collateral margin will not be considered for equity delivery buying.
- Call & Trade charge of Rs.20 is applicable for all positions squared off at RMS desk.
- All Intraday products (MIS, Cover Order and Bracket Order) positions will automatically be squared off 15 min before market closes. Call & Trade charge of Rs.20 is applicable for all positions squared off at RMS desk.
- Market rate orders are not allowed for illiquid Options Contracts.
- Trading in MCX compulsory delivery contracts will be banned a day prior to the delivery intention period.
- Physical Delivery of Commodities is not allowed.
- Trading in Agriculture commodities is not allowed.
- Open position in Commodities with staggered delivery will be closed 8 days prior to the delivery date in order to avoid physical delivery, also open positions in commodities with compulsory delivery will be closed a day before their respective delivery intention periods.
- On the start of the delivery intention period, clients will not be informed before closing any open positions to avoid compulsory delivery notice. Clients are advised to close their positions well in advance.
- In case your account is in debit balance and/or if you have insufficient funds to manage your trading positions, you will be charged an interest of 20% p.a. as delayed payment charges.
- If any intraday position is not squared off on the same day due to any reason, it shall be treated as a Cash and Carry in case of Cash Segment or NRML position in case of F&O Segment and will be carried forward to the next trading day. In such cases, position will be squared off by the Client. If there is any margin shortfall in Client’s account, our RMS desk shall square off any such position without any margin call.
PAY-OUT (Fund transfer from Tradejini to customer account)
- Payment Gateway : Transfer up to Rs.15 lakhs instantly from back office and online trading platform using instant transfer facility. This is chargeable @ Rs.9 plus service tax per transfer irrespective of the amount.
- NEFT/RTGS : Customers can use fund transfer facility from their Bank wherein they can register HDFC Bank a/c of Tradejini Financial Services Pvt. Ltd, to which they can transfer funds. The Fund receipt confirmation typically takes 1-3 hours for RTGS and 1 to 4 hours for NEFT. There will be no cost for such transfers by Tradejini. You will get SMS confirmation once the amount is credited to your trading account.
- IMPS : IMPS transfer can be done but requires a Bank statement which shows the debit transaction along with client account number (mapped with TRADEJINI) / Txn. Reference number mandatorily as proof of transfer which should be mailed to email@example.com or Funds@tradejini.com for giving credit of the amount transferred. Tradejini reserves all rights to ask for debit bank statements if money is not received in its Bank account.
- UPI : UPI transfer can be done but requires a Bank statement which shows the debit transaction along with client account number (mapped with TRADEJINI) / Txn. Reference number mandatorily as proof of transfer which should be mailed to firstname.lastname@example.org or Funds@tradejini.com for giving credit of the amount transferred.
- An SMS confirmation will be sent once the amount is credited to your account.
All pay-outs will have to be placed on the Back office access provided to the clients. Tradejini approves the pay-out request as mentioned below.
- Pay-Out is processed once a day and will be done to the Primary bank account mapped to the clients trading account
- Pay-Out placed on a calendar day will be processed next day morning
- Please note Pay-Out will not be processed on Saturday, Sunday and holidays
- You will get SMS confirmation once the amount is processed
Collateral Margins (Margin against Stock)
We understand that not all clients can bring in cash to trade and since securities are assets, we could give margin against such assets for the client to trade. Tradejini gives margin to its clients for the exchange approved securities held by the client in their demat account.
- This facility is available only for those clients who have opened a Trading and demat account through Tradejini with POA.
- On Clients request through the back office login the shares will be moved from Client Demat account to Tradejini Client collateral Account through an Off-Market transfer.
- Such Shares moved for margin can be viewed in the back office login as Pledged Shares
- All pledged stocks will be debited from your demat account until they are unpledged again.
- You would continue to remain the owner of the securities that you have transferred and you will continue to get all corporate actions benefits like dividends, splits, bonuses, etc. by way of a journal entry or shares credit to your trading account ledger.
- For all pledge & unpledge requests placed before 5:00 PM, the collateral margin will be updated for trade on T+1 day (next working day). All requests placed after 5:00 PM will be processed only on the next working day
- Margin Pledging will cost Rs.50 plus GST per scrip irrespective of the quantity and the same will be debited to your Trading account Ledger.
- Margins will be provided after the Exchange applicable haircut. Example : Applicable Haircut Percentage: 12.5% Pledge stock worth Rs.1,00,000 Collateral Margin: Rs.87,500.
- Collateral Margin will be shown as Direct collateral in Trading Terminal
- You will be able to use this entire margin after haircut for taking intraday or overnight positions in Futures, and for writing Options of Stocks, Index, Currencies & Commodities with an exchange prescribed Cash Collateral ratio of 50:50
- Collateral Margin amount will not be allowed to buy Options & Cash delivery.
Contract Notes and Margin Statement
Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances
Policy on Pre Funded Instruments and Electronic Fund Transfer
If the aggregate value of pre-funded instruments is Rs. 50,000/- or more from client per day per client, we may accept the instruments only if the same are accompanied by the name of the bank account holder and number of the bank account debited for the purpose, duly certified by the issuing bank. And the mode of certification may include the following either:
- Certificate from the issuing bank on its letterhead or on a plain paper with the seal of the issuing bank.
- Certified copy of the requisition slip (portion which is retained by the bank) to issue the instrument.
- Certified copy of the passbook/bank statement for the account debited to issue the instrument.
- Authentication of the bank account-number debited and name of the account holder by the issuing bank on the reverse of the instrument. We also maintain an audit trail of the funds received through electronic fund transfers to ensure that the funds are received from their clients only.
Tradejini List of Charges
For all Online Clients we charge 0.10% (for Delivery orders) / 0.05% (for Intraday & Derivative orders) or Rs.20 per executed order whichever is lower irrespective of number of trades executed for that particular order or Value of the Order.
Brokerage calculator: Click here
Complete List Of changes: Click here
For Offline clients we charge as per tariff sheet agreed by the client for full services.
Inactive Account Policy
To define procedures to ensure that no unauthorized trades are done in any INACTIVE client account.
Background & Definition :
Client Account would be treated as INACTIVE if there is no transaction (trade) in the account continuously for 12 Calendar months in any segment of either Equity or Commodity exchanges.
Checks & Balances :
Whenever there is request for trade in INACTIVE account, the client must specifically provide in writing either thru his registered Email ID or thru a Letter requesting to reactivate the INACTIVE account. The back office executive should also confirm from the Client of any changes in profile details provided by him in the interim – which should be supported by adequate duly attested documents and the same to be updated in the back office and UCC before the Client is allowed to trade.
Clients trading in F&O segments have to update their financial status by providing one of the below listed documents.
- Copy of ITR Acknowledgement
- Copy of Annual Accounts
- In case of salary income – Salary Slip, Copy of Form 16
- Net worth certificate
- Copy of demat account holding statement
- Bank account statement for last 6 months
- Any other relevant documents substantiating ownership of assets
- Self-declaration with relevant supporting documents
Policy on Unauthenticated News Circulation
- We do not provide any kinds of tips and unauthenticated news circular to our clients, nor allow any of our employees to circulate unauthenticated news.
- We even do not permit any of our employees to indulge in daily trading activities.
- We are very particular to enter the orders as per the instruction of our clients.
- Many a times client asks to us about our opinion on market movement & Market forecast but we have instructed all our employees to refrain from giving any kind of stock specific market forecast.
Error Account Policy
2. The reason for modification will be ascertained and analysed and genuineness established along with its impact on the clients studied before the modification. Voice recording of the trade in question in case done thru Call and Trade will be verified for the above analysis.
3. Client code changes of non-institutional clients are allowed only for the following criteria;
- Error due to communication and/or punching or typing such that the original client code/name and the modified client code/name are similar to each other.
- Modification within relatives (Relative for this purpose would mean ‘Relative’ as defined under sec. 6 the Companies Act, 1956).
Further any big value transactions are checked for whether the client is not trading beyond ones known Income (i.e. Income declared in KYC)
Physical Delivery - Derivative Contracts
SEBI in their circular has mandated physical settlement of all derivative open positions. Starting from October 2019 expiry, all stock F&O contracts will be compulsorily physically settled.
Open position in stock derivatives will be physically settled & settlement obligation computed accordingly.
- All open futures positions after close of trading on expiry day
- All in-the-money Options contracts which are exercised and assigned
The settlement obligations shall be computed as under :
- Long futures shall result into a buy (security receivable) position
- Short futures shall result into a sell (security deliverable) position
- Long call exercised shall result into a buy (security receivable) position
- Short call assigned shall result into a sell (security deliverable) position
Please click here to refer more details on the settlement procedure prescribed by exchange
Tradejini RMS Policy on Physical Settlement
For Stock Futures
Margins requirement for all Futures Stock contracts will be increased one day prior to expiry (Wednesday and Thursday) in a phased manner and it will range from 50% to 100% of contract value by expiry day.
Physical Delivery margin will be debited to your ledger along with Span and exposure.
Example: SBIN Future margin requirement is 20% then you will be debited additional 40% each for last 2 days taking the total margin to 100% on Expiry day.
Check the margin requirement on our Margin calculator
For Stock Options
The margins will be levied as illustrated below:
For In the Money Options: ITM
Delivery Margin Calculation – Four trading days Prior to Expiry
Applicable Additional Margin As Per Exchange
|EOD||Premium + Additional Margin||Days|
|Expiry -4th trading Day||20% of VAR+ELM||Friday|
|Expiry -3rd trading Day||40% of VAR+ELM||Monday|
|Expiry -2nd trading Day||60% of VAR+ELM||Tuesday|
|Expiry -1 trading Day||80% of VAR+ELM||Wednesday|
|Expiry Day||100% of VAR+ELM||Thursday|
SBIN Spot Rate: 321
SBIN 320 CE
Lot Size: 3000
VAR + ELM: 15%
|Lot Size||Strike Price||Contract Value||Var + ELM%||Var + ELM||Additional Margin||Additional Days Margin|
|3000||320||960000||15%||144000||28800||Friday @ 20% of VAR+ELM|
|3000||320||960000||15%||144000||57600||Monday @ 40% of VAR+ELM|
|3000||320||960000||15%||144000||86400||Tuesday @ 60% of VAR+ELM|
|3000||320||960000||15%||144000||115200||Wednesday @ 80% of VAR+ELM|
|3000||320||960000||15%||144000||144000||Thursday @ 100% of VAR+ELM|
For Close to the Money Options: CTM
Example: SBIN final settlement is Rs.323
“Close to the money” Call options stick price: 310CE ,315CE, 320CE
“Close to the money” Put options stick price: 325PE, 330PE, 335PE
CTM Contracts are allowed to carry until expiry if you maintain sufficient margins as explained above.
Exchanges have provided an option to “Do not exercise long CTM” contracts. You should have sufficient cash balance to take physical delivery in case of CALL Options and Sufficient Demat holding in your demat account in case of PUT options. If client balance is not sufficient for taking delivery, position will be marked as “Do not exercise” and the option contract will expire worthless.
For ATM Put Option Long
Actual Intrinsic value is Rs.4
Lot Size: 3000
Actual Value: 3000*4: Rs.12000
If you leave this position for expiry and if you do not have 3000 shares of SBIN in your Demat account, we will mark this position as ‘Do not exercise’ and the option contract will expire worthless.
For ATM Call Option Long
Actual Intrinsic value is Rs.7
Lot Size: 3000
Actual Value: 3000*7: Rs.21000
If you leave this position for expiry and if you do not have sufficient balance (325*3000= Rs.975000) in your ledger account, we will mark this position as ‘Do not exercise’ and the option contract will expire worthless.
Out of the money contracts (OTM)
All OTM options will expire worthless. There will be no delivery obligations.
Spread and covered contracts
Difference in premium will be posted to your ledger.
- Margin penalties will be charged as prescribed by the exchange for all F&O positions (including long options contracts).
- All costs arising out of such delivery obligations will be applied to the client’s account.
- Interest will be charged at 0.05% per day if your account results in a debit balance when the additional margins are applicable (two days before the expiry day)Delivery of shares: you should have shares in your demat account equal to the deliverable quantity. In case quantity is short, it will attract penalty for entire deliverable quantity, which will be borned by you.
- Delivery of shares: you should have shares in you’re demat account equal to the deliverable quantity. In case quantity is short will attract action penalty for entire deliverable quantity, which will be boned by you.
- Delivery of Funds: you should have sufficient balance in your account to take physical delivery. If you have debit balance after physical delivery, Tradejini will liquidate the received stocks up to an extent of debit. Interest will be charged at 0.05% per day on the debit balance.
- Stocks received by means of physical settlement can only be sold after receiving delivery of stock in the demat account.
- You need to have a demat account linked to your trading account to trade in compulsory delivery contracts. This is to ensure that the stocks are credited in your demat account in the event of physical delivery
- All physically settled contracts will carry an STT levy of 0.1% of the contract value for both the buyer and the seller of the contract value.
- Any notional delivery will attract STT (Long in Futures and short in ITM call Option)
- Fresh long option positions will not be allowed on Wednesday and Thursday of the expiry week. Fresh positions will be allowed for futures and options writing contracts throughout the month.
- In the event that you do not fulfil these margin obligations on time, your positions are liable to be squared off. Any loss arising out of such square off would be the sole responsibility of the client. For any reason our RMS team is not able to square-off a margin shortfall position(s) and leads to compulsory physical delivery, the costs and risks of physical delivery will be applicable to the client.
- Contracts settled through physical settlement are illiquid closer to expiry. Any losses arising out of liquidation of position(s) with margin shortfall by our RMS team have to be borne by the client. It is advisable for a client to square-off such positions on their own well in time or add funds to carry the position(s) to expiry.
- Since there is a substantial increase in effort and risk to settle these F&O positions resulting in physical delivery, a brokerage of 0.25% of the physically settled value will be charged. For all netted-off positions (spread contracts, iron condor, etc), the brokerage will be charged at 0.1% of the physically settled value.
- If any short fall of funds and deliverable stocks, on the expiry day, our RMS team may square off all your open positions in ‘In-the-money’ options and stock futures to avoid physical settlement. Tradejini will not be responsible for any losses arising out of above actions / square-offs.