RMS Policy – Invexmart Financial Services Pvt. Ltd.

List of securities to be accepted:
Circulars are available on Exchanges site normally in last week of month containing list of securities to be accepted by the Exchanges towards Collaterals / Margin.

Invexmart will accept these securities from all of the clients apart from that and to mitigate the risk Invexmart may or may not accept securities other than the above list.

Invexmart will consider value of only those securities for margin purpose which are approved and accepted by the exchange.

Segment-Client Intimation / Alert Process:
Clients will be pre-intimated about their ageing debit balance and that their collateral can be liquidating against ageing debit balances through short message service on their registered mobile number.

Client collateral liquidation initiated by RMS Department will be intimated to concerned Regional/Branches via Odin message terminal and online chat, or any
other available channel as well, subject to no congestion in System / Network Wise Margin Application.

Trading on the Newly Listed securities:
Trading in newly listed shares are subject to the high market risks and rate fluctuations; the chances of higher volatility are more. The dealing in newly listed shares will be allowed with 100% full margin.

Value of collateral v/s. Debit Balance:
As per Invexmart’s existing policy, debit balance of all clients are maintained at 70% of the value of the collateral provided to Invexmart.

However, on reaching 70% or above, the Authorized Person / client are required toclear the debit balance or infuse more collateral / Funds.

If at any moment the collateral reaches 80% of the debit balance, the RMS Department may liquidate the collateral.

As per the Exposure policy of Invexmart, it is decided that clients shall not be allow to carry debit balances more than T+7 (T5+T2) days.

If the debit balance continues for T+7 days, the clients’ collateral to the extent of debit balance may be liquidated by the RMS Department. However, after this period of 7 days, company may not allowed Client to take up any fresh positions.

Refusal of Order in less liquid scrips / contracts:

Invexmart restrict clients from trading in less liquid scrips like ASM/GSM/IRP (list of which is released by the exchanges also Invexmart can restricted trading of those scrips also where it deems fit that trading in these shares will lead to price manipulation or creating artificial volumes.

Further, Invexmart does not encourage clients to trade in far month Futures& options contracts in respect of such scrips. For the risk mitigation purpose, RMS dept. shall on regular basis, identify the securities which is further allowed for trading or restrict trading in any scrip / contract.

The list is decided after considering the market scenario, Volume, Open positions, market capitalization, (what are the features that determine these matters) Exchange or SEBI circular etc.

Alert / Warning Messages:
System generated alert messages shall be sent to clients on their mark to market loss reaching 70% & 80% of the available funds. Messages are sent on the
registered mobile number of the clients. subject to available of connectivity of the vendor Further, any position being squared off by RMS dept., appropriate information shall be sent to the clients.

Client ‘Funds’ computation:
Invexmart allocates exposure limits to its clients against the “Funds” brought in by them and lying in the credit of such Client in the Books of Invexmart.

The different components of the “Funds” acceptable to Invexmart for this purpose are:

• Cash deposit (i.e., by way of cheques/NEFT/RTGS etc tendered by the client in favour of Invexmart and cleared by the bank)
• Surplus lying in the Clients account with Invexmart
• Invexmart and tendered as “Funds” for availing trading exposure limits
• Value of Pledge Securities after applicable haircut Notes:

The management may in writing allow different security valuation based on the client risk profile.

Client Categorization:
Risk department has identified various parameters based on which clients are categorized in different risk categories.

The risk manager shall classify all the clients in A, B and C category based on their risk profile, AUM & turnover.

Percentage of Hair Cut to be applied on the Value of the “Funds”:

Invexmart has prescribed a policy for effecting a margin (generally referred to as the “haircut”) on various components of the “Funds” brought in by a Client to avail Exposure limits as well as to meet Exchange or Market determined Margins while trading on the Derivative market segments.

However, the RMS department will have the powers to impose any changes or modification, to the said percentages as per market scenario, Volumes of the scrip, market capitalization of the scrip, volatility, and keeping view of SEBI or exchange circulars/ prescriptions.

Haircut will be modified from time to time by RMS Deptt. after taking records of the scrip on the parameter mentioned above etc. Securities Hair Cut Policy  If exchange haircut is up to 49%, then we take an additional 10%.  If exchange haircut is 50% to 79%, then we take an additional 15%.  If exchange haircut is
more than 79%, then we take 100%.

• Only 80% of sale proceeds from equity sales can be reused the same day for margin purposes, as per peak margin norms.
• Exposure is dynamically adjusted based on the stock’s VAR + ELM, reviewed daily.

Mark to Market loss:

As per the standard practice followed by Invexmart all clients are placed in Square Off Mode when M2M loss reaches threshold limit.

Currently this threshold limit is 80% of the net “Fund” value of a client for initiation of the trigger.

For the purpose of calculating M2M loss, the threshold limit is on the basis of net Funds available at the start of the trading day+ any additions and or payments during the day.

On M2M loss reaching 80% of the net available Funds, the client’s outstanding intraday trades in the Cash segment &all positions in Derivative segments will be squared off by RMS dept.

Futures contracts Margin:

• Initial Margin = SPAN + Exposure (collected upfront before trade initiation)
• SPAN is updated multiple times a day to reflect market volatility.
• Clients can use both cash and pledged securities for margin.
• All trades in this segment require 100% upfront margin, per SEBI’s peak margin mandate.

Options (Index, Stock, Currency, Commodity):

• Buy Positions: Margin requirement equals the Option Premium only.
• Sell Positions (Short Options): Require SPAN + Exposure margin in full.
• Pledged margins are accepted for intraday and carry-forward option strategies under MIS and NRML.
• CO and BO orders are not allowed in the options segment.
• Intraday (MIS) trades are permitted only for Index Options (IDXOPT). MIS is not permitted for Stock Options, Currency Options, or Commodity Options.

Margin Monitoring & Risk Controls:

• Invexmart’ s RMS continuously monitors client positions across all segments. In line with regulatory requirements, the following measures are enforced:
• Real-time margin monitoring to prevent over-leverage.
• Auto square-off of open positions without prior notice in case of margin shortfall.
• Blocking or restricting order types based on risk levels, news events, or extreme volatility.
• Enhanced risk controls for illiquid contracts or stocks with high VAR.

Client Obligations
Clients trading with Invexmart must:

• Ensure sufficient margin availability before placing any order.
• Complete the pledge process correctly through CDSL for non-cash margins.
• Stay updated on changes to exposure rules and regulatory margin requirements.

Margin Shortfall Consequences:

If a client fails to meet the margin requirements:

• Invexmart may restrict new orders.
• Existing positions may be squared off without client approval.
• Late payment charges and/or interest may be levied.
• Repeated violations may lead to temporary or permanent suspension of the trading account.

Square-Off and Penalty Policies:

Invexmart reserves the right to square off any client position at its discretion, under
the following conditions:

• Margin shortfall due to price fluctuations.
• Mark-to-Market (MTM) losses beyond the prescribed limit.
• Breach of exchange-imposed position limits.
• Illiquid stock exposure or adverse news events.

Penalties may apply for non-compliance with margin norms or delayed settlement of obligations.