Continuous Funding System

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Continuous Funding System
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Modified CFS Regulation, 2005

• CFS Market Offered parallel to the Regular Market
• Max CFS Permissible upto the Gross purchase in
  the Regular Market.
• CFS Trades of that particular day will not
  available for Release.
• CFS facility maximum for 22 working days.
• Maintaining the leverage position in respect of
  CFS Derivatives not exceeding 15 time of NCB

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Parallel CFS Market

• Markets Schedule
• Opening of Regular Market          945
• Opening of Release Session       950
• Opening of CFS Market              955
• Closure of Regular Market           215
• Closure of Release Session        245
• Closure of CFS Market               315
• Auto release due to ex-dividend basis will be
  done before the opening of CFS market
• All CFS Open trades will be released Forcefully
  on the First Day.
• Capping limit is controlled in real-time through
  pre-trade check
• Orders not submitted if CFS capped
• Cushion becomes available after release
• May not accept new orders in CFS e
• ven after release if prices are increased

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Parallel CFS Market

• Since the CFS market will be available in
  parallel to Regular Market therefore current
  prevailing rate of the symbol will be used as a
  base rate for the CFS transaction at the time of
  execution.
• All previous CFS trades will be unreleased by
  default and user will mark trades to release in
  contrast to present practice. Presently all
  trades are released by default and users mark
  trades those he/she want to hold or carry
• Can be financer and be fiancée both at a time.
• CFS orders will be accepted in the range of 36
  annualized badla Rates.

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NET CAPITAL BALANCE

1. A Broker can avail Exposure limit up to the 25
   times of his Net Capital Balance in the Ready
   Market.
2. A Broker can avail his Exposure limit up to the
   15 times of his Net Capital Balance in CFS Market
   against his leverage position in the Regular
   Market.
3. A Broker can avail his Exposure limit up to the
   10 times of his Net Capital Balance in the Future
   Market.
4. A broker position will not exceed his leverage
   position in respect of CFS and other derivatives
   not exceeding 15 times of his NCB.
5. A broker position in Ready and Future altogether
   will not exceed to the 25 times of his Net
   Capital Balance Limit.

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Case1 A Broker can take position in Ready
Market up to 25 times of his Net Capital Balance
Limit.

• For example A broker has a Net Capital Balance
  Rs. 100,000
• Total Net Capital Balance Limit available
  100,000 25 2,500,000.
• Bought 100,000 shares of SSGC _at_ 25 in Ready
  Market (2,500,000)
• As per above scenario
• No Further Buy orders will be accepted in the
  Ready Market
• No Further Sell orders will be accepted in any
  other symbol in the Ready Market.
• Only Sell Orders of SSGC will be accepted in the
  Ready Market.
• No Buy/Sell orders will be accepted in the Future
  Market.
• A broker can take CFS facility up to the 15
  times of his NCB Limit according to the Ready
  Market Gross Purchase' I.e.leverage position).
• i.e. Can trade 60,000 shares of SSGC only in the
  CFS market.(1,500,000)

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Case2A Broker avails 10 times of his NCB
Limit in Ready Market out of 25 times NCB Limit.

• For example
• A broker has a Net Capital Balance Limit 100, 000
• Total NCB limit available 2,500,000
• Limit avails 1,000,000
• Bought 10,000 shares of BOP _at_ 100 in Ready
  Market. (1,000,000)
• As per above scenario
• Further Buy/Sell orders will be accepted in the
  Ready Market up to the remaining NCB Limit
  (i.e.1,500 ,000)
• Can avail upto15 times CFS facility of his NCB
  limit in the CFS Market but according to the
  Ready Market Gross Purchase(s) leverage position.
  (In this case Broker can only trade 10,000 shares
  of BOP in CFS market). (1,000,000)_at_ closing rate
  of 100.
• Buy/Sell orders will be accepted in the Future
  Market up to the 5 times of his NCB
  Limit.(500,000)
• Condition (A broker can only use15 times of NCB
  value Limit altogether in against his leverage
  position in CFS and Future markets.)

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Case3 Broker avails 10 time of his
NCB limit out of 25 times in the Ready Market
and 10 times in Future Market.

• For example
• Net capital Balance 100,000
• Total Net Capital Balance Limit 2,5000, 000
• Limit avails in Ready Market 1,000,000
• Limit avails in Future Market 1,000,000
• Bought 10,000 shares of BOP _at_ 100 in Ready
  Market. (1,000,000)
• Bought 10,000 shares of LUCK-JAN _at_ 100 in Future
  Market. (1,000,000)
• As per above scenario
• Further Buy/Sell orders will be accepted in the
  Ready Market up to the remaining NCB Limit
  (i.e.500 ,000)
• No further Buy/Sell orders will be accepted in
  other symbol(s) in the Future Market except Sell
  Order of LUCK-JAN.
• Can avail up to the 5 times of his NCB Limit in
  against his leverage position in CFS. (500,000)
• (Condition ) A broker will not exceed 25 times
  of his NCB value Limit altogether in the Ready
  Market and Future Market)

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Case4There is no Net Capital Balance Limit on
the Broker as a Fancier in the CFS Market.

• Can enter Sell orders in the CFS Market as a
  Financier.

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Questions

• Thank You