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It is in the continuation of the earlier circular no. LSESL/RMC/C&S/MARGIN/2285
dated 1412.2009 for the information of sub brokers/ clients/ APs /Employees of LSE
Securities Limited that various Circulars have been issued by the Company from time
to time on Risk Management Policies to amend, modify or re-consider the existing
policies. Vide this circular, an effort has been made to consolidate all the circulars,
decisions taken by the Management during the year and is reproduced as below for
the smooth functioning of the Company.
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1) ADDITIONAL DEPOSIT
In Cash segment, a sub broker will have to give an additional deposit in form of
Cash and FDRs only and trading limit shall be allowed on the basis of this additional
deposit only. After considering the request of the members, LSC Securities Limited
started taking shares in the cash segment from October onwards and as per the decision
of the Board approved shares/ securities are accepted in the ratio of 60:40 i.e.
60% in form of cash and FDRs and balance 40% in form if approved shares/ securities.
(Refer circular no. LSESL 4747 dated 20.10.2010)
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2) GROSS EXPOSURE TRADING LIMITS
LSC Securities Limited shall allow its sub brokers a gross exposure trading limit
up to such times of Security Deposit and Additional Security Deposit as may be decided
by the Board of Directors / risk Management Committee from time to time in cash
segment. Presently trading limit is 8 times in NEAT.XS and ODIN and 4 times in BOLT
and NOW of the credit balance available in the account of the respective client/
sub broker and additional deposit, if any given by the client/ sub broker. The Board
of Directors/ Committee or CEO along with Directors authorized for this purpose
may reduce / increase the trading limits as a Risk Management measure.
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Additional capital deposited by the sub broker / client will be refunded only on
request from the respective sub broker/ client. Presently the Company can release
up to Rs. 4 Lacs on the same day and more than four Lacs on the next day of the
request of release.
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For LSC Securities Limited
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Mr.M.S. Lotey
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Authorised Signatory
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