SLB Risk Management

SLB ( Lend Your Shares )

Margins
Position Limit
Shortage Handling

Margins

Margins	T Day	T+1 Day	Reverse Leg
Lender	25% of Lending Price & MTM at EOD	Margins dropped on Settlement	No Margins
Borrower	100% of Lending Fees	100% of Lending Price, VaR, ELM &MTM at EOD	Margins dropped on Settlement
Margins are accepted in the form of Cash, Fixed Deposit, Bank Guarantee & Government Securities.

Position Limit

Position Limits	Security wise Applicable Limits
Market Wide (MWPL)	10% of the no. of shares held by non-promoters in the security
Participant Level	10% of MWPL or Rs. 500 mn whichever is lower
Institutional Investor (FII/ MF / Ins Cos. / PFI / Banks / PFs)	10% of MWPL or Rs. 500 mn whichever is lower
Client level (Excl. the ones mentioned above)	1% of MWPL
Position limit for SLB is considered for entire month.
The list is provided through circular “Applicable MWPL, Participant, Institutional Client & Non-Institutional Client Limits for Securities and ETFs – SLBS” issued on last working date of previous month.

Shortage Handling

Shortages	Type	Action taken
First leg	Security Shortage by Lender	No Funds payout to Lender. Financial close-out on T+1 @ min 25% of T+1 closing price of security
First leg	Fund Shortage by Borrower	No Securities payout to Borrower. Lending fee recovered from borrower & passed onto the Lender along with Securities
Reverse Leg (RL)	Security Shortage by Borrower	Valuation Debit to Borrower on RL day Followed by Auction on same day along with Cash Segment Auction settlement/ close-out on RL +1

Attention Investors

Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.

Risk Disclosure on Derivatives | Smart ODR | Mandatory Display | KYC Validation Links

BSE / NSE SEBI Registration No. INZ000279232, Depository Participant SEBI Registration No. – IN DP CDSL 132-2015

Mutual funds - ARN No. 81648 , Investment Adviser SEBI Registration No. : INA000008668.

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Download Client Registration Documents

Download Client Registration Documents (Rights & Obligations, Risk Disclosure Document, Do's & Don't's) in Vernacular Language :

Assamese Bengali Gujarati Hindi Kanada

Kashmiri Konkani Malyalam Marathi Oriya

Punjabi Sindhi Tamil Telegu Urdu

NOTE : " This document is a translated version of the client registration documents in English and is being provided in vernacular language to facilitate better understanding by the investors. In case of any ambiguity, the contents of the English version would prevail. "

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Risk Disclosures On Derivatives

9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
On an average, loss makers registered net trading loss close to ₹ 50,000.
Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

Source:

1. SEBI study dated January 25, 2023 on “Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) segment”, wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22

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