GROSS EXPOSURE LIMITS

abhishreshthaa

New member
GROSS EXPOSURE LIMITS

  • The Exchange, has prescribed a ceiling on the gross exposure
    (i.e. scrip wise cumulative net outstanding purchases + cumulative net outstanding sales) of members at 15 times of the (base minimum capital + additional capital) deposited by them with the Exchange.

  • The members are also flashed warnings as soon as they reach 50%, 70% and 90% of their gross exposure limits and when a member crosses 100% of the gross exposure limit, a message is flashed on the terminals stating "GROSS EXPOSURE LIMIT EXCEEDED" and the same are automatically de-activated.

  • The terminals in such cases, are re-activated only after they deposit additional capital to cover their exposure in excess of the Gross Exposure limit.


NOT TO CONSIDER:

Institutional business, i.e., transactions done on behalf of

scheduled commercial banks,

Indian Financial Institutions,

Foreign Institutional Investors and

Mutual Funds registered with SEBI while computing gross exposure of the members




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