Risk Management Policy

Introduction

Investment in securities is susceptible to market risks which cannot be predicted. The Account Opening Document contains an explanation of different types of risks our customers are likely to face in the market. While the risk of loss is inherent in the market, we as your Broker seek to minimize the risk of loss through a dynamic risk management policy which is an essential feature of our operations. As our customer, it is important for you to be aware of our Risk Management Policy and how the Policy would operate to regulate your transactions. It is also important that the Risk Management Policy does not provide insurance against losses; these are measures and precautions that are adopted to contain risks to the minimum. The Policy is subject to change according to our risk perceptions of the market and SEBI/Exchange regulations for the time being in force.

The policy shall be approved by the Board of Directors. In case of urgent changes, the same can be approved by the Chief Product Operations Officer and the Chief Risk Officer, and the changes shall be ratified by the Board of Directors in its subsequent meeting. This risk assessment and management policy shall subject to change and modification, if needed, considering the dynamics of operations, business plans and strategy of management from time to time. The amended policy will be uploaded on the website of Angel One from time to time.

We understand that the Company has adopted this policy in its capacity as a SEBI registered intermediary with an objective of mitigating any risks involved in relation to investments made by its clients and handling of client portfolios. However, the policy does not provide for methods to manage any risks arising from its business or the industry in which it operates such as technological, economic and market risks that the Company may be subject to. Pursuant to Regulation 17(9) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations, 2015, (the “Listing Regulations”), the board of the Company is required to frame risk management plan and lay down procedures for risks assessments and minimization procedures.

Scrip Categorization

For risk management, we categorize Scrips listed on NSE and BSE as “Blue Chip”, “Good”, “Average” or “Poor” based on their fundamentals, volatility, liquidity, trading pattern and overall concentration with individual customers. These categorizations form the basis for defining haircut on collateral, providing exposure limits, imposing trading restrictions, calculating projected risk, prioritize collection, control exchange surveillance related risk, etc.

Table
Criteria	Sub-criteria	Blue Chip	Good	Average	Poor	Restricted
Financial	Market Cap	>=5000 Cr	>=500 Cr	>=100 Cr	<=100 Cr
	Net Worth	>=2000 Cr	>=500 Cr	>=100 Cr	<=100 Cr
	F&O	Yes	No	No	No	No
	Employee	>=50 Cr	>=10 Cr	>=2 Cr	<=2 Cr	<=0.50 Cr
	Power	>=50 Cr	>=10 Cr	>=2 Cr	<=2 Cr	<=0.50 Cr
	Tax	>=50 Cr	>=10 Cr	>=2 Cr	<=2 Cr	<=0.50 Cr

Table
Scrip Category	Criteria for Scrip Selection
Blue Chip	Market Cap & Net worth should be greater than equal to Rs. 5000 Cr and Rs. 2000 Cr respectively. Moreover, from Employee cost, Power cost & Tax, at least any 2 should be greater than equal to Rs. 50 Cr for the last 2 years Scrip should be listed in the F&O segment. There is an exception in the rule for banking stocks that if it is listed in the F&O market then Employee cost, Power cost and/or Tax may or may not be greater than Rs. 50 Cr.
Good	Market Cap & Net worth should be greater than equal to Rs. 500 Cr. Moreover, from Employee cost, Power cost & Tax, at least any 2 should be greater than equal to Rs. 10 Cr for the last 2 years. Scrip satisfying Blue Chip criteria but not listed in F&O segment should be graded as Good. Bank stocks not listed in F&O segment should also be categorized as Good.
Average	Market Cap & Net worth should be greater than equal to Rs. 100 Cr. Moreover, from Employee cost, Power cost & Tax, at least any 2 should be greater than equal to Rs. 2 Cr for the last 2 years.
Poor	Market Cap & Net worth should be less than equal to Rs. 100 Cr. Moreover, from Employee cost, Power cost & Tax, at least any 2 should be less than equal to Rs. 2 Cr for the last 2 years.
Restricted Scrips	Employee cost, Power cost & Tax at least any 2 should be less than equal to Rs. 0.50 Cr for the last 2 years.

Note : Based on the above fundamental parameter’s scrip might qualify in a particular category, but management reserves the right to assign any or lower category based on various other parameters, mainly liquidity. The list will be reviewed at the sole discretion of the company and the revised list will be updated in the client back-office login. However, in extremely volatile market conditions, or in case of warnings by regulators/exchanges, scrips may be re-categorized without prior notice and the customers shall regularize their accounts and trade accordingly.

Angel Scrip Category list

Dealing in Restricted Scrips

To exercise additional due diligence while trading in these securities either on their own account or on behalf of their clients:
- AngelOne shall from time to time classify and publish on its website a list of securities which are restricted based on internal criteria. The policy can be viewed in Angel Client Back office > Policies > Restricted Scrips Policy.
- AngelOne reserves the right to refuse execution of any transaction requests of the client on such restricted securities or to reduce the open market interests of the client in such securities/ contracts.
- AngelOne also reserves the right not to allow any trades or transactions in respect of certain securities or segments or orders/requests which may be below/above certain value/quantity as may be decided by Angel from time to time.
- Re-listing Scrips: The scrips are blocked / restricted for trading on the first day of re-listing as risk of price discovery prevails in the market. Such scrips fall under the Restricted and the applicable conditions mentioned above would be applied.
- Angel shall not be responsible for non-execution/delay in execution of orders in restricted scrips and contracts and consequential opportunity loss or financial loss to the customer. Angel shall have the discretion to place such restrictions, notwithstanding the fact that customer has adequate credit balance or margin available in his account and/or the customer had previously purchased or sold such securities / contracts through Angel itself. Angel shall have the right to revise the list of such securities / contracts on a periodic basis.
- The Purchase value of restricted category shall not exceed beyond Rs.50000 per day.
- GSM/ASD/ASM/ST above particular grades these scrips will be restricted for buying/selling as they attract more than twice margin or total buy/sell Value of respective scrips.
  https://www.nseindia.com/regulations/graded-surveillance-measure
  https://www.nseindia.com/regulations/additional-surveillance-measure
- Any scrips in restricted category transferred off market in clients Angel DP will not be allowed to sell.
- Other Mandatory requirements
  - Dealing in restricted scrip would be allowed to the extent of clear ledger credit only.
  - Un-reconciled value of the instrument would not be considered.
  - No buying will be allowed against any free holding or margin pledge available.
  - Clients can trade in restricted category scrips from mobile app or from sub broker terminal.
- Dealing in SME Series scrips traded on BSE / NSE with “SM” & “M” series group
  
  Scrips listed in the SME segment will be limited to a few scrips for buying from our trading platforms – These series have huge lot sizes & have low liquidity. Eventually these have miniscule participation in terms of volume at the exchange. To avoid manipulations or erroneous trading, this category has limited scrips for buying.
  
  The sell trades would be executed ONLY through if those are from IPO allotted and if purchased done from Angel One. Please note important points w.r.t. SME scrips trading
  - Fresh purchases would in limited scrips to the extent of ledger credit available only.
  - Selling of existing holdings purchased from Angel One and shares allotted through IPO will be allowed for selling for DP mapped with Angel One.
  - Sell transactions can be done from their respective trading apps or Sub broker trading platforms.
  - No Intraday allowed nor any buy back allowed for SME stocks once sold.
  - Any off market transfer of shares will not be allowed for selling.
Illiquid Contracts and Bonds - Restricted Contracts

We are restricting/ blocking certain Future and options contracts on trading platforms to avoid Malpractices or erroneous trading. The Parameters on which we are restricting/ blocking such Contracts are as under: -

Open interest value in the contract is less than 25 Lacs. For future contract Open interest x Closing prices < 25 lacs, in case of option open interest quantity x (strike price + closing Premium price) < 25 lacs. If options contract expiry from 6 months to 9 months and open interest is less than 1 Cr same will be considered as illiquid contracts.
Or
In case of Option contracts, if strike price falls (+,-) 20 % of previous day closing price of that Particular scrip in cash market.
Or
All contracts having expiry more than 9 months –
Any contract which falls to the above parameters will not be allowed for trading.
And
Options trading will be allowed within the range of 5 % of Underlying for contracts with Symbol of MIDCPNIFTY and FINNIFTY.
In case of Trading in BSEFO derivatives segment :-

Stocks Options:-
1. Current Month Contracts: Only current month contracts traded on the previous day.
2. Open Interest (OI): The OI should exceed 50 lacs.
3. Option Strike Price: Option strikes within 3% of the underlying price are permitted.
4. Maximum Position: The maximum position allowed is 1 lot, with a value not exceeding 10 lacs.
Trading Restrictions:- To maintain market stability, the following restrictions apply:
1. Market Orders: Market orders for Stock Futures and Options are blocked.
2. Intraday Trading: Intraday trading is not allowed.
3. Physical Delivery Period: Option buying and selling are blocked during the last 5 days of the physical delivery period.
4. Position Squaring: All positions will be squared off 1 day prior to the day of expiry.
5. Fresh Selling in stocks options will be also restricted.
Unblocking BSE Contracts for SENSEX and BANKEX :-
- Futures:-
  1. Minimum Contract Turnover: The contract turnover should be at least ₹1 crore after the market opens.
  2. Minimum Lots Traded: A minimum of 100 lots should be traded (volume). A lot is defined as Volume Traded / Lot Size.
  3. Expiry Date: Only contracts within 14 days of expiry are eligible.
- Options:-
  1. Strike Price Range: The strike price should be within 5% of the upper and lower range of the spot price of the underlying Index Options.
  2. Minimum Lot Volume: A minimum of 100 lots should be traded for contracts to be considered for unblocking.
  3. Expiry Date: Only contracts within 14 days of expiry are eligible.

Illiquid contracts for Currency / Commodities segment

Contracts in MCX Commodities where the OI is less than 50 lots would be blocked for trading.

Contracts in currency where the OI is less than 500 would be blocked for trading

In NSE commodities if the open Interest is more than 50 lots then, 15 lots will be allowed for trading.

In NSE commodities if the open Interest is more than 100 lots then, 25 lots will be allowed for trading.
Illiquid Bonds:

We are restricting/ blocking certain Bonds on trading platform to avoid Malpractices or erroneous trading. The Parameters on which we are restricting/ blocking such Bonds are as under: -

BOND scrips would block for trading, if
Total turnover (Traded quantity*Closing Rate) < 25 lac

BOND scrips would open for trading, if
Total turnover (Traded quantity*Closing Rate) > 25 lac

Without prejudice to Angel’s right to restrict/block derivative contracts on the above parameters, Angel may from time to time also restrict client level open interests in any contract(s), in its absolute discretion, depending on its own independent assessment of the market volatility and/or having regard to any client level/or Member level restrictions in any contract(s) prescribed by the market regulators. However, in restricting/blocking derivative contracts, Angel shall be at liberty to prescribe a limit lower than the maximum limit that the Regulator may prescribe for any contract(s) from time to time. Further, in order to ensure that the Member level limit prescribed by the Regulator is not violated in any contract, Angel may also decline further exposure to a client even if the Client may not have exhausted the client level limit otherwise available to him/her.
Assigning Trading Limits

Margin/Deposit based limits are assigned to the customers for trading purpose. VaR/SPAN margin specified by the exchanges is blocked at scrip level on the positions taken by the clients during the day.
1. Deposit calculation: Deposit is calculated at customer level after netting off ledger balance in all segments and margin pledge share holding lying in Angel. Margin is calculated as follows:
2. Margin = Ledger Balance (Dr/Cr) + Net value after haircut of margin pledge share holding available with Angel.
3. Valuation margin pledge share holding: Margin pledge shareholding valuation is done on previous day’s closing price. Net valuation is calculated by applying appropriate haircut based on VaR margin percentage specified by the exchanges or Angel prescribed rates.
4. Extreme market conditions: Limits are assigned based on credit in the ledger. In such conditions, clients will be allowed to buy only to the extent of ledger credit available.
5. Single order quantity and value cap: To minimize loss from possible punching errors by a dealer while executing the transaction for a customer, Risk Management of Angel puts restriction by capping the maximum quantity and value per order and orders exceeding that maximum quantity or value cap will be rejected. Angel also sets terminal level limits to contain loss from erroneous trades getting executed. Angel shall not assume any liability in respect of orders rejected by reason of their quantity or value exceeding the cap value.
6. Under Equity market Short Selling is blocked under margin product, same is allowed under “Intraday product” only.
Voluntary freezing of the Online Trading account policy
1. Introduction
  This policy outlines the procedures for voluntary freezing of trading accounts for clients of Angel One Limited (hereinafter referred to as AOL) in accordance with SEBI & Exchange Circulars.
2. Purpose
  This policy aims to guide AOL clients on the process, modes, timelines, and other details for facilitating the voluntary freezing of their trading accounts upon noticing any suspicious activity.
3. Scope and Applicability
  This policy is applicable to all AOL clients who wish to voluntarily freeze their online trading accounts.
4. Review
  This policy is part of AOL’s Risk Management Policy and shall be reviewed annually by the Board of Directors or earlier if necessary to ensure compliance with regulatory changes.
5. Procedure to Freeze Online Trading Account
  Using the App:
  - Log in to the Angel One application (mobile/ web), go to the Accounts page, and click on the Profile Widget.
  - Select the "Temporary Account Freeze" option.
  - Follow the on-screen instructions.
  - Enter the OTP received via SMS and email for verification.
  - Upon entering the correct OTP, the account will be frozen.
  Calling a Dedicated Support Line:
  - Call AOL at the dedicated number +918655912279 (between 8:30 am – 5 :30 pm excluding Sundays and public holidays).
  - The customer support agent will verify the client’s identity and may request additional information.
  - Once verified, the agent will freeze the account.
6. Procedure to Unfreeze Online Trading Account
7. Important Points to Note:
8. Clarifications: It is clarified that -
9. Circular references:

Auto square off process

Risk Square off / Projected Risk Square off:
Square off value is calculated on the basis of projected risk and square off is done to the tune of exchange VaR OR Angel VaR (whichever is higher)
Calculation of Projected Risk for Auto Square Off:
Projected risk = A client is expected to maintain atleast 50 % of the VaR (exchange VaR OR Angel VaR whichever is higher) and total derivatives margin to avoid the projected square off. If the same is not maintained, the client would be qualified for a projected Risk square off and an intimation would be triggered – Client would be given a daytime to make good the shortage amount failing which it would be squared off on the following trading day.
In any market situation, Angel One may demand payment of margin forthwith and prescribed time for making margin payment shall be construed accordingly. Decision of Angel in relation to market volatility shall be final and binding without having to provide any reason for the decision to the Client In case there is a shortfall, margin call would be made on T Day itself without prior intimation.
Action in case of projected risk:
- Holdings (based on the Angel Scrip category) will be liquidated / squared off to the extent of Valid VaR shortage (exchange VaR OR Angel VaR whichever is higher)
- It is a Potential Risk of a client in occurrence of adverse market condition during the day.
In case of uneven movement or price fall in single scrip more than or equal to 7%, margin call will be informed to clients via SMS or Email. In case of margin is not fulfilled, Angel One will reserve rights to liquidate the position in respective scrips to avoid risk if any.

Sequence of Square Off:
Sequence of Square off / Liquidation followed: Holdings in the form of securities taken in sequence of Latest settlement (LIFO basis) starting from poor category scrips followed by average, good and blue- chip category scrips. If there is still a requirement, then the collateral is also taken for Square off
Along with Cash segment i.e BSE & NSE; the other leverage / derivative segments ledger debits and 50% total margin is considered for calculating projected risk.
It is a Potential Risk of a client in occurrence of adverse market condition during the day.
Ageing Debit Square off (T+7)
It is the client’s obligation to clear his/her outstanding dues by T+1 (T indicates Trading Day). The client shall ensure timely provision of funds to AngelOne to meet exchange obligations. Angel reserves the right to close the positions / sell securities to the extent of ledger debit and /or to the extent of margin obligations.

Selling will be done in clients’ accounts on T+6 days for the ledger debit which is more than T+5 days on an ageing basis. For example: All trades executed on Monday will be squared off next Tuesday when T indicates Trading Day. In other words, if funds are not received for scrips purchased on Monday Angel shall liquidate securities to the extent of ledger debit.
Sequence of Square Off:
Square off will be done considering scrips with old settlement (FIFO) in a sequence of blue-chip category first, followed by Good, Average and Poor scrips respectively.

Where the client has not submitted the POA for the DP account or the DP account is made inactive, Angel will reserve the right to square off such securities if the funds are not received within 6 days from the data of purchase.
Margin Trading Facility (MTF) square off
The details of the same is clearly enlisted in the Rights and obligations document

Applicable minimum initial margin and increased margin, if any, shall be kept always supplied by the clients in respect of the stocks purchased under MTF. Clients shall pay for any shortage in the required margin immediately on receiving demand (margin call) and in any case on the trade day or following the day of making the margin call failing which Angel shall be at liberty to liquidate the funded shares and/or collateral shares to recover the dues outstanding in the account of the Clients.

In case of extreme volatility in the market, Angel may demand payment of margin forthwith and prescribed time for making margin payment shall be construed accordingly. Decision of Angel in relation to market volatility shall be final and binding without Angel having to provide any reason for the decision to the Client In case there is a shortfall, margin call would be made on T day itself – In the normal market condition, it is expected that the client makes good the shortage within T +4 day failing which the position would be liquidated on T+5 day to the extent of margin shortfall.

However, during volatile market conditions and there being a situation where there is a significant movement in the market, Angel reserves the right to liquidate the holdings much in advance

Client can view details of his/her ledger, holdings, margin shortfall etc via secured login on Angel One’s trading website / mobile app. Regular intimations regarding debit, information about shortage and communication regarding liquidation will be sent through SMS or email on the clients’ registered mobile number and email address respectively.

Square-off will be done on LIFO basis, last settled shares from poor to blue-chip category will be considered for square off first followed with blue-chip to poor category. Scrips eligible for square off are blocked till square off is initiated in all types of square off. Corporate actions scrips can be taken even though there is no MTF shortfall in client's account

For a client who has opted for MTF and trades in scrips which are unapproved (not part of Group 1 securities) , the outstanding debits will have to be cleared within T + 5 days, failing which the aged debit more than the 6th day would be liquidated as per the exchange norms. Sequence of this square off will be FIFO settlement shares from blue-chip to poor category.

Of the above square offs, the priority of the square off would be given to projected risk. At a client level (whether a customer is activated for MTF or is an Non MTF square customer) would come under projected risk if 50% of the Angel stipulated VaR margin is not maintained (as explained under Projected risk square off).
Client Unpaid Securities Pledge Account (CUSPA)
Starting from 01-Apr-2023, unpaid securities belonging to clients will be auto-pledged in the client’s demat account. The securities that have not been paid for in full by the client shall be transferred to the respective client’s demat account, followed by the creation of an auto-pledge without any specific instruction from the client.

Process for CUSPA shares release:

If a client has purchased shares on Monday (trade day) and if Tuesday is the Settlement date, either one of the below mentioned two scenarios can happen on Tuesday:

If the Net ledger Balance (EOD Financial Ledger balance on T Day) is in Credit, then the payout will be released in the client’s account.

If the Net ledger Balance is in debit upto Rs.100.00, then such client’s full securities payout will be released to his demat account as free balance.

If the Net ledger Balance is in debit from Rs.100.01 upto Rs.1,000.00 also equivalent value of margin pledge after haircut is available then stocks are release in DP as free shares.

Particulars	Scenario 1	Scenario 2
Net ledger Balance (debit amount)	Rs.105.00	Rs.105.00
Margin Pledge Free balance after Haircut	Rs.500.00	Rs.104.99
Securities Release Criteria	Stock will be released, since risk is covered	Stock will not be released

If the Net ledger Balance is in Debit, then the equivalent quantity will be auto pledged in client’s demat account without any specific instruction from the client.
Additionally, if the client partially clears the debit balance before T+6, securities corresponding to the funds received by Angel One Limited will be released as a free balance in the client's DP account.
After the creation of a Cuspa pledge, AOL sends a communication (via email or SMS) to inform the client of their fund obligation, along with further details stating that the pledged securities may be liquidated in case the client fails to fulfill the obligation.

CUSPA square off process :

The regulator has asked brokers to start separate client unpaid securities accounts (CUSPA), which will hold shares of clients who have not paid for the purchases. Such shares will be liquidated on T+5 with one day prior intimation in case client does not bring in money. Criteria for CUSPA liquidation as given below:

Total Broking voucher ledger outstanding if any will be adjusted against CUSA holding value after haircut as per exchange or Angel VaR whichever is higher.
Clients will be sent 1 day prior intimation via SMS or email for the liquidation.
CUSPA square off will be done to the extent of ledger debit or CUSPA holding value whichever is lower.
In case shares payout is failed at CDSL or NSDL due to any reasons of inactive of account will also lead to square off even though client is having credit balances to avoid non-compliance.
Shares eligible for due settlement will be square off.
Corporate actions scrips can be taken for liquidation before the due date or settlement to avoid any risk.

Derivatives Margin Based Auto Square-off

Introducing our Margin-based Auto Square-off system, this will automatically square-off positions on a besteffort basis if the margin utilization exceeds the available margin.

Important points with regards to derivatives Auto Square-off:

Auto Square-off will be triggered for the shortfall valuing more than INR 1000. RMS reserves the right to change the square-off threshold depending on various factors, including market volatility.
The system will recommend the position to be squared off based on the shortfall amount excluding T-day future MTM, prioritizing the pending order, nearest margin and T Day expiry.
Ban Scrips will be given the least priority.
This policy of Auto Square-off will be currently applicable in the Equity and Commodities Derivatives segment.
Auto square off will be triggered once the margin utilized is more than 100%.

Criteria for client’s intimation: -

Margin Utilization of Client ABC
Margin Available	Margin Used	Margin Shortfall	Margin Utilized(%)	Communication and Action Plan
4,00,000	34,0000	-	85%	SMS/Email Trigger
4,00,000	38,0000	-	95%	SMS/Email Trigger
4,00,000	4,00,000.01	.01	>100	SMS/Email Trigger

Margin collection in Cash and Derivative segments

Margin is collected upfront from all clients in leveraged segments. Daily Mark to Market losses shall have to be paid latest by T+1 day and any shortages in respect of Margin shall be payable forthwith. In case of default to provide Mark to Market losses or Margins accordingly, AngelOne shall be entitled to square off the open market positions without further reference or notice to the Clients. In case of extreme market volatility, margins may be demanded on intra-day basis and Clients should be able to replenish margins on immediate basis to avoid square off. Where market conditions so warranty, AngelOne may demand payment by electronic transfer and refuse to accept payment by cheque. Shortage in Margin shall attract penalties as may be levied by the Exchange. All losses from daily settlements and losses from square off which are not paid shall be recovered by selling available collateral shares of the Client and Client shall be liable to pay the remaining balance forthwith.

Any debit greater than 5 crores will be reviewed and demand will be made for collections if required. Also, action will be taken accordingly in absence of any collections.

In case of margin increased by the exchange during the day or any margin increment by hedge break on open position irrespective of product type, the client is required to replenish the margin shortage on a real time basis. In absence of any fund collection, Margin shortage recovery will be done through the auto square off process, where all the pending derivatives orders will be cancelled by the system, to recover the margin shortage and penalty if any for upfront margin shortage due to hedge break will be passed on to the client. The system will not consider cross product hedge benefits in margin calculation (Intraday and carry forward Product). On expiry day, margin shortage will be calculated considering T Day expiry position in case of position does not square off by clients.

Mutual Funds will be accepted as margin pledge only with below criteria

Mutual fund should be approved by exchange
Mutual fund should not have any exit load,
Mutual fund should be not in any locking period,
Mutual fund should be available for redemption at exchange level,
Mutual fund settlement type should be T+1 and
Mutual fund should not be under poor category as per risk policy.
Mutual fund haircut will be 10% or exchange whichever is higher

Note: Poor scrips categorized by Angel (inclusive of BSE & NSE illiquid scrips) will not be accepted as collateral in leverage segments.

Collateral provided as margins should not exceed the concentration values mentioned below as per their categories.
Restrictions on acceptance of single scrip concentration as per category are given below:

Scrip Concentration for cash and derivatives segments:

If any debit arises due to scrip concentration, then client needs to update the funds or transfer other approved securities or reduce the concentrated scrip to the extent of breach value.

Restrictions on acceptance of single scrip concentration as per category are given below:

Acceptance of single “Blue chip” category scrip should not be more than 3 crores.
Acceptance of single “Good” category scrips should not be more than 50 lacs and,
Acceptance of single “Average” category scrips should not be more than 20 lacs.

Over and above the category cap, we will not allow our clients to go beyond 0.5% of the market cap of the company in single scrip

In case of deviation to the above deviations, a time of 7 days would be given. However, in cases of volatile market conditions or cases where there is abnormal movement in the underlying or due to any other reason where the risk management team feels that the position cannot be allowed to continue, the leeway of the 7 days may be withdrawn, and the position may be liquidated
Angel also has capped single scrip / instrument wise exposure limits. No client will be allowed to go beyond these exposure limits set in a single scrip / instrument

CASH
Turnover in Cr. ( average of last 30 trading days )	MAX EXPO in Cr
1 to 50	2
50 to 250	5
>250	10

Poor Category
Turnover in Lacs. (average of last 30 trading days)	MAX EXPO in Lacs
>1 Cr	50
>10 Lacs to 1 Cr	2
<10 Lacs	1

FUTIDX
Expiry	MAX EXPO in Cr
Current Month	90
Next Month	60
Far Month	30

OPTIDX
Turnover in Cr	MAX EXPO in Cr
<10CR	15
10 to 100	30
100 to 500	75
Above 500	100

FUTSTK
Turnover in Cr	MAX EXPO in Cr
<50CR	10
50 to 100	15
100 to 300	20
>300	30

OPTSTK
Turnover in Cr	MAX EXPO in Cr
<1	1
1 to 200	6
>200	20


Precious Commodities (Crude Oil / Gold /Silver)	MAX EXPO in Cr
>1000 Cr	100
100 to 1000 Cr	15
Less than 100 Cr	3


Other Commodities	MAX EXPO in Cr
>1000 Cr	20
100 to 1000 Cr	10
Less than 100 Cr	3


Currency Future - USD INR	MAX EXPO in Cr
Current Month	150
Next Month	60
Far Month	20


Currency Future - Other & options	MAX EXPO in Cr
>500 Cr (USD INR)	60
>75 Cr to 500 Cr	10
Less than 75 Cr	3

BSE FO Options - INDEX
Turnover (Cr)	MAX EXPOSURE (Cr)
Above 500	5
100 to 500	2
10 to 100	1
<10CR	0.25

BSEFO Futures - INDEX
	MAX EXPOSURE (Cr)
	1

AngelOne will monitor the clients 'open positions on regularly, in case gross exposure exceeds more than 500 crores in Long or Short in any of the direction consolidated on one underlying future or options, Same will be informed to clients and if required will not allowed to carry forward in the client account on best efforts basis. This provision will be always applicable irrespective of the client having deposited sufficient margin money for the same. This is with reference to NSE circular dated March 22, 2020 having circular reference no. NSE / SURV / 43915 (read with NSE / SURV / 44190 dated Apr 20, 2020 , NSE/SURV/44456 dated May 22, 2020, NSE/ SURV/ 44697 dated June 18, 2020 and NSE/SURV/45092 dated July 22, 2020,NSE/SURV/45485 dated August 26, 2020, NSE/SURV/45765 dated September 21, 2020,NSE/SURV/46124 dated October 22, 2020and NSE/SURV/46458 dated November 25, 2020).This will be subject to exchange norms which may change from time to time.

Margin Reporting
1. For the same day margin requirements, a clear ledger balance as on date will be considered.
2. Ledger balance calculation will be done by netting off balances across segments i.e. Cash, F&O, Currency and Commodity.
3. Across all segments, shares in Margin pledge / Client unpaid securities account with previous day’s valuation, after Angel prescribed haircut, will be considered.
4. Post valuation/calculation of the above, cash segment will be given first preference and in case of excess margin, the same will be considered for reporting of NFO, Currency, MCX & then NCDEX.
5. All other terms & conditions, including levying margin shortfall penalty will remain as is and in line with regulatory requirements.

Intimation to clients

Client can view details of his/her ledger, holdings, margin shortfall etc. via secured login on AngelOne trading website. Regular intimations regarding debit, information about margin shortage with penalty amount, communication regarding liquidation is sent through SMS or email on the clients registered mobile number and email address respectively.
Physical settlements in Leverage segment

FNO
- Till the last day of expiry, if the client wishes to convert the futures contract (which are available for trading on Angel platform) into physical delivery, the entire delivery margin will have to be provided.
- All Options contract (ITM / ATM / OTM/CTM) will be blocked for trading on the expiry day as well as one day prior to expiry for trading.
- If the client wants to convert an ITM / ATM/CTM contract to physical delivery, the entire applicable delivery margin would have to be supplied in trances of 10%, 25% ,45%,70 % Four days prior in the mentioned sequence respectively as mentioned by the regulators. In case the required margins are not supplied, Angel reserves the right to liquidate the contract without allowing to convert to physical settlement
Commodities
- Contracts would be blocked for trading five days prior to the staggered period.
- If the buyer wishes to convert the position to physical delivery, the entire value of the contract would be required. In case the amount is not supplied, Angel reserves the right to liquidate the contract without allowing to convert to physical settlement.

Commodity Margin Shortages Process:-

In case of margin shortage clients will be informed via SMS or email to full fill the shortage amount, failing to which positions will be liquidated to the extent of margin shortage including the same day MTM loss. The sequence for the liquidation will be the lowest margin, compulsory delivery commodities.
AngelOne reserves the right to demand additional margins above the exchange margins to minimize the risk factor in volatile market or any commodities and failing to which the positions can be liquidated to the extent of margin shortage.

Commodity Tender Process:-

Client codes with Tender, intimation is sent to these codes via SMS 2 days before Tender. Clients are blocked for take fresh position on Tender day till Expiry date. Any Long open position will be liquidated on 1st day of the Tender period after intimation to clients to avoid unwanted physical delivery. Delivery can be allowed to clients only if the entire contract value is available in client’s ledger.

Commodity Contract Expiry Process:-

Client codes which have Expiry, intimation to those clients are sent through SMS 2 days before expiry (Email to be included). Any short side open position will liquidate on Expiry Day to avoid unwanted physical delivery, failing which will be obliged for the delivery. If the intention of delivery is marked by the client, then the process below to be followed:

Required intention letter duly signed with client.
Required COMRIS/CRL account.
GST Certificate if available.
Clients should have the entire contract value in ledger.
Charges to be bear by clients if any.

Commodities position in Options conversion in Future contract:

SMS Intimation to client will be sent from 1 day prior to Option Expiry. Any ITM open position will be liquidated in case of insufficient funds on Option Expiry to avoid being converted in the future contract. Options buy for all strike price for fresh positions will be blocked under carry forward product on expiry day.

Market Price Protection (MPP) - Policy

Market Price Protection (MPP) allows you to place a market order along with a protection percentage to safeguard the execution risk.

Understanding the challenges posed by volatile markets, we have introduced this feature at Angel One to protect clients from unexpected and extreme price fluctuations. In simple words, when you place a market order, MPP will be applied, which means it will be placed with a protection percentage on the current market price. This will ensure your order will not be executed beyond the defined protection percentage.

For example, let's say Mr. A placed a buy order for XYZ stock at Rs. 500. Due to market volatility, the price suddenly jumped to Rs. 550. Without MPP, your order would be executed at a high price, like Rs. 600 or Rs. 610, etc. However, with MPP, your order would be executed within a percentage range, suppose this range is 10%, then the order will not be executed at more than Rs. 550 (assuming 500 LTP and 10% protection range).

Why is MPP important to you?
1. Controls Risk
  Limits the impact of sudden market movements.
2. Transparency
  Keeps you informed and in control of the possible price deviation for your trades.
3. Financial Safety
  Ensures trades happen within a reasonable and predefined price range, thus securing your money.
4. Enhanced Trading Experience
  Offers a safer trading environment, especially for those dealing in highly volatile markets or low liquidity stocks.

Angel One MPP Policy:

At Angel One, we prioritize your safety and trust. Our MPP policy reflects our commitment to creating a secure and reliable trading experience. By minimizing risks during unpredictable market conditions, we help you to make better-informed decisions while staying protected.

Here’s our MPP Policy.

Cash Stock for both NSE and BSE (LTP)	Protection (%)
Less than ₹10	10.00%
More than ₹10	0.50%
NFO and BFO
FUTSTK	1.00%
FUTIDX	0.50%
OPTIDX
Less than ₹10	20.00%
₹10 - ₹20	10.00%
₹20 - ₹50	5.00%
More than ₹50	2.50%
OPTSTK
Less than ₹10	40.00%
₹10 - ₹20	20.00%
₹20 - ₹50	10.00%
More than ₹50	5.00%
MCX and NSE Commodity
Futures
Gold	0.50%
CrudeOil	1.00%
Options
Less than ₹10	20.00%
₹10 - ₹20	10.00%
₹20 - ₹50	5.00%
More than ₹50	2.50%

Disclaimer: The above percentage may change depending on the market conditions.

Important Points Regarding Our Policy

Currently, this feature is available at the client level on the app and web only.
Clients will be notified before and after placing the market order that MPP is levied on their order.

Special Scenarios

Upper Price Circuit :- If the MPP is higher than the upper circuit price, your order will be placed at the upper circuit price.
Lower Price Circuit :- If the MPP is higher than the lower circuit price, your order will be placed at the lower circuit price.
No Liquidity :- If there is no liquidity, then the order will be rejected because MPP cannot be levied on ₹0.

Product Policy:
1. Delivery:
  - Full value of buy trades is required as margin amount.
  - Buying only on cash balance and not on shares/Margin pledge stock.
2. Margin:
  - The required margin depends on the securities traded.
  - The margin will be the VaR margin defined by either Exchange or AngelOne, whichever is higher.
  - Limit is allowed/given as per available margin which is "Ledger + Margin pledge" (Margin pledge refers to the margin availed after pledging the approved securities with Angel One).
3. Intraday:
  - Positions created under Intraday Product would be subject to either client himself squaring off (If done online) OR dealer based square off OR MTM Loss 80% of Total Deposit (Ledger + Holding after Haircut) - Risk Square off OR Time Based Square off.
  - Client cannot Carry Forward any positions in Intraday Product.
  - All pending orders / unexecuted / partial orders will be cancelled as per intraday product features.
  - No fresh orders will be accepted in Intraday after Time based square off.
  - All positions under Intraday Product will be subject to 80% MTM Loss i.e. positions will be liquidated if loss is reached to a pre-decided level of client margin loss. The OPEN positions (i.e. the carry forward overnight positions) and the intraday leverage position (across segments) will also be squared off at 80% MTM.
  - At MTM loss the position will be reduced on best effort basis and customer will be liable for such losses.
  - Product available for Equity Futures / Options Selling & buying / Currency Futures / Commodities Futures.
  - Clients registered with AngelOne and dealing in Capital Market / Derivative Market /Currency Market having allotted client code as UCC would be availed of the facility offered by Angel in Intraday trading in the exchange segments in which client is registered for trading.
  - Client confirms that he is aware of the Intraday Product and its features and have clearly Understood the risks associated with Intraday Trading.
  - Client understands that he/she is allowed a higher leverage in the Intraday Trading Facility as Compared to trades in the regular market positions and, therefore, while the opportunity for Making profits on the investment is magnified; the risk of loss would also be enlarged correspondingly.
  - The client understands that Intraday Trading would be allowed only if the margin required under the Facility is already available in his account with Angel.
  - The client agrees and accepts that enlisting him/her for the Intraday Trading Facility shall not oblige him/her to place the Intraday Orders requested in any scrips even though the margin required for placing a trade order under the Facility is available in the account.
  - The client also understands and agrees that the option to convert Intraday trade positions to carry forward positions is subject to full margin being made available upfront unless such margin is already lying to the credit of the account with Angel.
  - Clients are aware that under the Facility, unless the positions are carried forward as stated above, all open positions shall be squared off by Risk Management Team at the prescribed cut-off time on the same day of their acquisition unless the positions are sooner squared off upon the positions incurring a loss to the extent of the prescribed maximum limit or more as may be determined from time to time.
  - Client agrees and accepts that if for any reason beyond our control, like force majeure causes, disruptions in the communication network, system failure, slow or delayed response from system, trading halts, or the Exchange applying circuit filters because of which the open Intraday positions could not be squared off and are carried forward, client is expected only to Square them off on a best effort basis, as soon as may be, and any and all losses arising from such events will be to my/our account.
  - Clients agree and accept that he/she will not hold AngelOne, their directors, officers or employees liable for any loss that may sustain as a consequence of availing of this facility. All the terms and conditions of the agreement that are passed shall remain effective and in force in all respects until terminated in terms thereof. Clients are expected to refer FAQ about Intraday Product sent to them for detail understanding of the features and risk of Intraday Product.

Intraday Product

Product Features:

Intraday products are designed for higher market exposure to Clients in Equity Cash /Derivatives / Currency and Commodity markets, against a given investment. This product is suitable to Clients who are keen to make most out of favorable market movement from a given investment. The product allows the Client market exposure several times more than what would otherwise be possible in the normal order types with a given amount as margin. Intraday products are opened for the day and squired off the same day, following certain pre-defined logic.

How it works (Example):

In a regular margin-based trading scenario, on Rs. 18,000/- as margin in the derivative segment, a Client would be able to take one NIFTY, if one NIFTY is Rs. 2 lakh and the margin required is 9%. By opting for our Intraday product, against the same amount of Rs. 18,000/- a Client can obtain as many as 6 NIFTY contracts, which would mean 6 times higher return on the same investment.

How to place Orders as Intraday Product:

To trade in this product, Orders must be placed specifically marked as “Intraday” trade. Clients may place orders for this product offline or online modes, as in the case of regular orders.

Benefit of limit multiplier:

Clients have the option of choosing the number of times higher exposures (multiplier) is required by them subject to the maximum multiplier limit prescribed for the segment.

	Limit
Equity Futures and Options Sell, EQ Cash, commodity futures and Currency futures	1 x
Options Buy - Equity, Currency and MCX Commodity	1 x

Intraday Position Square off:

All Intraday positions shall be squared off the same day following a predefined logic, automatically. Square off in different segments shall be carried out as per the time schedule shown below:


Segment	Square off time (Time based square off)
Cash Segment (NSE & BSE)	3.15 pm and closure of the market
NSE FO Segment	3.20 pm and closure of the market
BSEFO Segment	3.12 pm and closure of the market
Commodity - non-Agro	11.15 pm & 11.40 (when Market ends at 11.55 pm)
Currency & Commodity Agro	4.45 pm and closure of the market

However, if the market loss on “Intraday” positions reaches 80% (the trigger) of the total funds (cash and cash equivalent of collateral securities as adjusted to hair cut) available, the “INTRADAY” positions would be closed out as soon as the trigger is reached. In this case, all open positions across all segments, i.e., including positions other than Intraday positions, will also get squared off simultaneously. The Risk Management System of Angel (RMS) will constantly monitor the “Intraday” positions for the Clients and close them out accordingly.

After the positions are squared off, whether time-based or trigger based, no fresh Intraday positions would be allowed for the day, and all pending orders would be cancelled. Clients have the option of squaring off the Intraday positions any time before they are squared off as per the above pre-defined logic. They will also have the option to convert INTRADAY positions before they are squared off into CARRYFORWARD positions as explained below.

Angel will notify the Clients through SMS and/or emails, if the Intraday positions incur MTM loss. SMS intimation would be sent when the MTM loss is at 50%, 70% and 80% of the total funds (cash and cash equivalent of collateral securities as adjusted to hair cut) in the Client account. Client may make payment online (net transfer) to replenish funds so that compulsory square off trigger is not activated which shall be across positions in all segments.

Intraday Product Note - Frequently Asked Questions (FAQ’s)

What are the benefits of INTRADAY PRODUCT?
One can take higher leverage on a given investment as per one’s risk appetite. For example, one can take maximum leverage up to 1 time of the margin available (Cash + Collateral) in derivatives segment.
How does it function?
Intraday Product is an intraday order facility, wherein client’s orders are squared off the same day following certain pre-defined logic. The margins blocked against Intraday product would be a reduced amount depending upon the limit multiplier. Higher the multiplier limit, proportionally lower, would be the per unit margin for the positions contracted. The Intraday position is monitored by Angel RMS and squared off on T Day, which shall be either time based or trigger based, whichever event occurs first.
What happens if you have taken one trade in Intraday product & other trade on Carry Forward product for the same scrip/contract?
When the intraday positions are squared off at the trigger (i.e., when MTM loss equals or exceeds 80% of the total funds (cash and cash equivalent as adjusted to hair cut), all open market positions, across all segments, whether in the same scrip or not, get squared off automatically. Except in this situation, positions other than Intraday positions would not be affected; they would be maintained subject to availability of margin as per the margin norms unless the Client initiates square off. It is further clarified that when available funds (cash and cash equivalents) are eroded by 80% due to MTM in any positions, not necessarily Intraday positions, all open interests, including carry forwards shall be auto squared off, following auto-square off policy.
Clients are required to be cautious and careful while taking Intraday positions as they are leveraged products and hold the potential of not only yielding high profits but also of magnifying the losses as compared to normal trade.
Is always Intraday Product available for Clients to trade?
The availability of Intraday products will depend upon Angel’s assessment of market volatility and risk. Angel may withdraw or temporarily disable the facility to place orders as Intraday orders without assigning any reasons.
Can Intraday positions be taken in all scrips/contracts?
In the cash segment, Intraday positions can be taken only in shares that are also admitted for trades in futures market. In cash and derivative segments, trading is allowed depending upon liquidity of the shares/contracts. Clients may check the list of scrips restricted for trade notified by Angel from time to time.
Orders & Trades in Intraday
How to place a Intraday order?
Option to place Intraday order is available in all our Online Trading platforms. Place order from any of the trading platforms at your convenience. In the order placement screen select product type “Intraday” while placing order.
Can the Intraday order be modified after order placement?
All the pending unexecuted Intraday orders (partially or fully) can be modified or cancelled anytime before execution. Margin requirements will be recalculated and adjusted accordingly.
On what basis is Exposure / trading Limit calculated for Intraday Order?
Exposure / Trading Limit are calculated based on Net Available Balance (Ledger balance + Margin pledge share holding (after Haircut).
Is there any charge to avail of this facility?
No charges, except for brokerage and other levies as applicable on regular trades.
What happens if there is a loss in the positions taken in Intraday Product?
All losses including loss in Intraday products have to be cleared promptly. If available cash credit is nil or insufficient, collaterals would be enforced to recover the unpaid dues.
What happens if a pending Intraday order is NOT executed?
All such orders would be cancelled immediately before time based square off is initiated.

Conversion of Orders & trades

Is it possible to convert pending Intraday ORDER to Carry Forward during Market Hours?
NO. In such case, remove/cancel the pending Intraday order and place a new order in Carry forward.
Is it possible to convert Intraday TRADE positions to Delivery / Var margin during Market Hours?
Yes, provided the conversion is carried out before the positions are squared off as per the pre-defined logic and full VAR margin required for regular trade in the positions sought to be converted is made available.
Is it possible to convert Intraday TRADE positions to Carry Forward during Market Hours?
Yes, provided the conversion is carried out before the positions are squared off as per the pre-defined logic and full margin (Span + Exposure) required for regular trade in the positions sought to be converted is made available.

Bracket Order: -

3 leg order (bracket) allows placing an order with a Profit target and stopping loss target in a single order screen. This means that as soon as the main order is executed the system will place two more orders (profit taking and stop loss) - When one of the two orders (profit taking or stop loss) gets executed, the other order will get cancelled automatically.

Margin applicable will be Limit Price– Stop loss price * Qty + Applicable VAR Margin

Important Features of the Bracket order

A reduced margin to be paid.

Time based square off for bracket order positions

Segment	Square of time
Equity Cash and NSE FO (FUTURE BUY & SELL)	Between 3.10 pm and closure of the market

** Bracket Order is enabled only on Angel Speed Pro and CTCL Terminals. This facility is available for Equity cash, derivatives (Future buy and sell). All the scrips / contracts which are available for trading in the regular trading system, would be available for trading in 3-leg leg order

Client agrees and accepts that if for any reason beyond our control, like force majeure causes, disruptions in the communication network, system failure, slow or delayed response from system, trading halts, or the Exchange applying circuit filters because of which the open positions could not be squared off and are carried forward, client is expected only to Square them off on a best effort basis, as soon as may be, and any and all losses arising from such events will be to my/our account.
The client agrees and accepts that he/she will not hold AngelOne, their directors, officers or employees liable for any loss that may sustain because of availing of this facility. All the terms and conditions of the agreement that are executed shall remain effective and in force in all respects until terminated in terms thereof. Clients are expected to refer FAQ about Intraday Product sent to them for detail understanding of the features and risk of Intraday Product

Risk Management Policy