Changes in Upfront Margin Penalties & Good Till Triggered Orders

There is a recent regulatory changes regarding upfront margin shortage penalties and introduction of policy on handling of GTT orders, as outlined in NSE circular NSE/INSP/64315, NSE/INSP/62528 and BSE circular 20240622-2.

Upfront margin shortage penalties: Any penalty imposed by clearing corporations for shortfall or non-collection of upfront margins will now be passed on to clients in the following cases:

• Dishonored Cheques: If a cheque issued by you is dishonored.
• Margin Requirement Changes: An increase in margin requirements due to changes in your hedge position. For example: If you have a hedged position consisting of a long futures contract and a long options contract, and you square off the long option leg, the margin requirement for the futures position may increase. To avoid penalties, we strongly recommend maintaining sufficient margins in your account at all times.

In light of the above changes and other regulatory updates, we have revised our Risk Management Policy. We encourage you to review the revised policy to understand these adjustments and how they may impact your trades. You can access the updated policy here.

GTT Policy: Clients are required to note that KSL has formulated the GTT policy as informed by the Exchanges.

The key aspects of the GTT policy include:-

• The rationale for implementing the policy.
• Details of Good Till Triggered orders or orders of a similar type.
• Procedures for handling such orders in the event of corporate actions.
• Notifications to clients about upcoming corporate actions.
• For other points, please go through the detailed policy.