Risk management & Surveillance policy Motilal Oswal Securities Ltd ... (2024)

<strong>Risk</strong> Management Policy <strong>Motilal</strong> <strong>Oswal</strong> <strong>Securities</strong> <strong>Ltd</strong>. (MOSL) 1. Preface <strong>Risk</strong> Management is an intergral part of any orgationisation. We need to deal with various kind of risk like credit <strong>Risk</strong>, Market <strong>Risk</strong>, default <strong>Risk</strong>, liquidity <strong>Risk</strong> and other risk. In <strong>Securities</strong> Market, customers have to be alerted with respect to their obligations, open positions, market conditions, Margin requirements, regulatory requirements and steps are initiated by the brokers in case of changing market situations. With a view to enhance customer knowledge and safeguarding investor interests, MOSL have devised a comprehensive <strong>Risk</strong> Management & <strong>Surveillance</strong> (RMS) Policy to make sure that customers are aware of criteria based on which MOSL monitors risk and initiates actions to safeguard the interest. Major parameters of RMS Policy are mentioned below: 2. Setting Up Clients Exposure Limit: Cash Segment: Exposure constitutes both a purchase and sale transactions of shares & securities. A purchase transaction includes buying of securities and it remains as Exposure till client gives full payment for the shares bought. A sale involves a share delivery obligation to the Exchange and it remains an Exposure till the client delivers the shares. Exposure will mean the aggregate of the outstanding purchases and sales. Exposure limit of the client will be set on the basis of available base capital as defined below. The limits may be allowed on a multiplier basis to the available base capital depending on the market conditions and the risk perception about the market / client. However in exceptional situations MOSL may use its own discretion in providing the limits and may change for a client or for all depending on market conditions. Base Capital constitutes of Margin Ledger +/- Party Ledger + Collateral Stocks (Stocks given to MOSL as Margin) + Debit Stock (Stocks withheld by MOSL against ledger debits)+ Outstanding Stocks (Socks yet to receive from Exchange) - Shortages (Stocks sold but not delivered to broker for pay-in within T+2 days ) + Value of Stocks held in Demat Account (where Power Of Attorney is given) # All stocks are valued after applicable hair cut applied by MOSL. <strong>Motilal</strong> <strong>Oswal</strong> <strong>Securities</strong> <strong>Ltd</strong>. Page 1