Registered Office:#412, 4th Floor, 2nd Main Road,
Near Dattatreya Temple,
SEBI REGISTRATION NO.: INZ000248337
CDSL Depository Participant: IN-DP-445-2019.
Welcome to Vachana Investments private Limited. The domain name www.vachanainvestments.com (hereinafter referred to as “VACHANA”) is owned by Vachana Investments private Limited , a company incorporated under the Companies Act, 1956 having its registered office at #412, 4th Floor, 2nd Main Road,Near Dattatreya Temple, Malleswaram,Bangalore, Karnataka-560003. The trades of clients shall be carried out in the respective client code only. The dealers shall take utmost care while executing the trades of the clients regarding the accuracy of Client Code, Quantity and Price, etc. Product Types under which Orders are to be placed.
Clients can transfer funds into the Trading Account only from such bank accounts which are registered with Vachana. Any transfer from a non-registered bank account will not be considered and the client does not get any trading limit credit for such transfers. Note: In case of non-registered bank transfer, we can map the bank details as secondary bank; Client has to provide signature on addition of bank form and personalized cancel cheque Or Bank Statement
Vachana Provides consolidated Margin for Equity and FO Segment. Vachana does not engage in the business of Client Funding. Clients are required to have sufficient balance in their accounts to hold/carry forward positions. NSE Equity Margin: Vachana has a policy of giving up to 10 times leverage for stocks on which F&O trading is allowed. All margins are given only for trading Intraday. No margin is given for delivery trades. The client needs to have enough money in his trading account to take delivery failing which Vachana can cut the position. NSE Futures: 40% of Total Margin (Span + Exposure) is required to take intraday positions. Leverage provided here is subject to market conditions and changes in its proportion are dynamic. 100% of Total margin is required to carry forward positions.
|Margin Benefit for intraday trades (MIS)||Upto 10 times||40% of Exchange prescribed margin||Nil for buying. For Sell same as Futures|
|Intraday Margin Time (MIS)||9:15 to 15 min before market closes||9:15 to 15 min before market closes||9:15 to 15 min before market closes|
|Intraday products (MIS) square off timings||3:20 PM onwards||3:20 PM onwards||3:20 PM onwards|
*Note: Intraday square off timings can change based on the discretion of our risk management department.
If any intraday position or an MIS trade is not squared off on the same day due to any link or system failure or any risks associated with internet/wireless based trading which may occur at the end of the Client, Vachana or the respective Exchange, it shall be treated as a Cash and Carry (“CNC”) or NRML position and carried forward to the next trading day. In case of such a situation arising, the onus of squaring off the position will be on the Client. Our RMS desk shall square off any such position, without the requirement of a margin call, if the necessary cash is not available in the Client’s account.
All information mentioned here is subject to change at the discretion of our Risk management team.
We understand that not all our clients can bring in cash to trade and since securities are assets, we could give margin against such assets for our client to trade. Vachana gives margin to its clients for the exchange approved securities held by the client in their demat account.
Vachana will issue contract notes & margin statements to its clients within 24 hours of the trade day. Along with the Contract Note, the client shall also be furnished with a copy of the daily margin statement as prescribed by the Exchanges. Contract notes are also available in client Backoffice login.
The Compliance Officer shall be the designated officer for handling the Investors Grievances and Client Complaints. The email ID on which you can write in case you have any grievance is complaints@ vachanainvestments.com. The resolution of the Complaint shall be done at the earliest and the same shall be recorded in the register along with the date of resolution. Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances
Account opening – ₹ 499 Annual Maintenance Charges for Demat (payable at the beginning of the year) – Rs 400 (Market rates are Rs 400 to Rs 1000) Annual Maintenance Charges for Trading Account – ZERO. DP Charges – 0.03% or Rs.9 whichever is higher plus ₹5.5 (CDSL) (applicable only when you are selling your Delivery position after having held for more than two days). (Market rates are usually between Rs 12 to Rs 25) STT, GST, NSE Turnover and Transaction Charges, SEBI charges are all as applicable market-wide GST will be levied additionally on all charges mentioned in this document as and wherever applicable.
Scope: To define procedures to ensure that no unauthorized trades are done in any INACTIVE client account. Background & Definition: Client Account would be treated as INACTIVE if there is no transaction (trade) in the account for 12 Calendar months from the last trade.
Checks & Balances: Clients trading in F&O segments have to update their financial status by providing one of the below listed documents:
Whenever there is request for trade in INACTIVE account, the client must specifically provide in writing either thru his registered Email ID or thru a Letter requesting to reactivate the INACTIVE account. The back office executive should also confirm from the Client of any changes in details provided by him in the interim – which should be supported by adequate duly attested documents and the same to be updated in the back office and UCC before the Client is allowed to trade.
Once the account is identified as INACTIVE, any Funds/Securities lying in our account will be returned to the client.
If the aggregate value of pre-funded instruments is Rs. 50,000/- or more from client per day per client, we may accept the instruments only if the same are accompanied by the name of the bank account holder and number of the bank account debited for the purpose, duly certified by the issuing bank. The mode of certification may include the following either:
F&O positions held till expiry used to be settled in cash on the basis of price of the underlying stock. However, since October 2019 the settlement takes place by giving or taking delivery of the actual shares. SEBI in their circular has mandated physical settlement of all derivative open positions. Starting from October 2019 expiry, all stock F&O contracts will be compulsorily physically settled. Open position in stock derivatives will be physically settled & settlement obligation computed accordingly.
The margins applicable depend on the delivery value of your contract. As mandated by exchange, the following positions in respect of contracts identified by Exchange shall be physically settled :
Quantity to be delivered/received = Market lot * Number of contracts that result in delivery settlement.
For Stock Futures
Margins requirement for all Futures Stock contracts will be increased one day prior to expiry (Wednesday and Thursday) in a phased manner and it will range from 50% to 100% of contract value by expiry day. Physical Delivery margin will be debited to your ledger along with Span and exposure. Example: SBIN Future margin requirement is 20% then you will be debited additional 40% each for last 2 days taking the total margin to 100% on Expiry day.
For Stock Options To prevent last minute delivery defaults, Delivery margins on open positions starts 4 days prior to expiry day. In a phased manner it will range from 20% to 100% by expiry day. The margins will be levied as illustrated below: For In the Money Options: ITM
|EOD||Premium + Additional Margin||Days|
|Expiry -4th trading Day||20% of VAR+ELM||Friday|
|Expiry -3rd trading Day||40% of VAR+ELM||Monday|
|Expiry -2nd trading Day||60% of VAR+ELM||Tuesday|
|Expiry -1 trading Day||80% of VAR+ELM||Wednesday|
|Expiry Day||100% of VAR+ELM||Thursday|
OTM (Out of the money) options are those strikes that are above the final settlement price for calls and below the final settlement price for puts. There won’t be any delivery obligation if your call option expires out of the money(OTM). Policy regarding Close to Money contracts (CTM) Exchanges have provided an option to not exercise long CTM contracts. We will be using this option on expiry day in case the cash balance and the intrinsic value of the option contract is less than twice the SPAN+Exposure margin (Exchange mandated) required to take a position in the futures contract of the same stock for the current expiry. For example: If you are long 1 lot of WIPRO Oct 19 240 CE and let it expire and WIPRO(Stock) settles at Rs. 243, this contract will be a CTM contract. The intrinsic value of this contract will be 3 [243-240] x 3200(lot size) = Rs 9600. Post-market closing we will check if the client’s free balance (Cash balance + Rs 9,600) > Rs 2,76,518 ( Twice the SPAN +Exposure margin for WIPRO Oct future contract). If client balance is lesser than Rs 2,76,518, this position will be marked as “Do not exercise” and the option contract will expire worthless. If the balance is more than the SPAN+Exposure, we will let the option be exercised, resulting in physical delivery. All costs arising out of such delivery obligations will be applied to the client’s account.
In the money contracts (ITM) All ITM contracts which aren’t CTM will be mandatorily exercised by the exchange. This means that anyone holding an ITM option contract will receive/give delivery of stocks depending on whether one is holding call/put options. All the costs arising out of this delivery obligation will be applied to the client’s account.
Out of the money contracts (OTM) All OTM options will expire worthless. There will be no delivery obligations arising out of this.
|Charges||Brokerage||STT/CTT||Exchange Transaction Charges rs. Per Cr.||Stamp Duty W.E.F 1-Jul-20||SEBI Rs. Per Cr.||GST|
|Equity Delivery||0.1% or Rs. 20/ Order whichever is lower||0.1% on both Buy and Sell||NSE:345, BSE:275||NSE: 0.015% on Buyer BSE: Rs.1500 per Cr||10||@18% on Brokerage, Exchange Transaction Charges & SEBI Fees|
|Equity Intraday||0.05% or Rs. 20/ Order whichever is lower||0.025% on the Sell Side||NSE:345, BSE:275||NSE: 0.003% on Buyer BSE: Rs.300 per Cr||10||@18% on Brokerage, Exchange Transaction Charges & SEBI Fees|
|Equity Futures||0.05% or Rs. 20/ Order whichever is lower||0.01% on the Sell Side||NSE:200, BSE:200||NSE: 0.002% on Buyer BSE: Rs.200 per Cr||10||@18% on Brokerage, Exchange Transaction Charges & SEBI Fees|
|Equity Options*||Rs. 20/ Executed Order||0.05% on both Buy and Sell||NSE:5300, BSE:2500||NSE: 0.003% on Buyer BSE: Rs.300 per Cr||10||@18% on Brokerage, Exchange Transaction Charges & SEBI Fees|