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Risk Management Policy
Risk Management Policy

Risk Management Policy

This page contains important information regarding the risk management policy which apply to your trading and demat account.

Products

Customers can place orders for Delivery, Intraday trades across segments i.e. Cash and Derivatives (Derivatives include FnO, Currency, Commodity) on Dhan. Dhan also allows Bracket Orders (BO) and Cover Orders (CO) as Intraday products.

In Cash Segment for Delivery or CNC trades, customers are required to have in their ledger balance funds upto the 100% of the gross value of stock at the time of the transaction. Currently no margin is provided for Delivery or CNC trades on Dhan. However, client can avail MTF facility on selected stocks.

In Cash Segment for Intraday trades, Dhan customers are provided a limit which is as per the exchange defined VAR+ELM for the respective scrips and subject to a minimum of 20%. For e.g.: customer A has effective ledger balance of Rs. 50,000 and wishes to buy a scrip X, assuming that the VAR+ ELM for the scrip X is 25%, customer can buy/sell scrip X only upto worth Rs. 2,00,000 for intraday.

In terms of Delivery / Carry forward Based derivative trades, the Dhan customer is provided a margin which is as per exchange defined margin that also is equal to Span + Exposure + Delivery + Special Margin. For Futures and Options traded on NSE/BSE/MCX, the limit provided to the customer is as per margin requirements for the respective contract. For Example, customer wishes to trade in 1 lot of Nifty, assuming the margin required to create position in 1 lot of Nifty is Rs. 1,50,000. The customer needs to have an effective ledger balance of at least Rs. 1,50,000 to initiate the trade.

In terms of derivatives contracts there are specific criteria which define the contracts that can be traded via Dhan for both normal and intraday trades in order to protect the consumers from market volatility and fluctuations.

It is pertinent to note that the risk policy continues to evolve and is subject to modification in consequence to market dynamics, business plans, management strategy and internal risk assessments from time to time.

The criteria for trading the areas are summarized below in Table 1.

Table 1: Derivative contract allowed for trading:

Sr. No. ExchangeSegmentInstrumentCNC/ CarryforwardIntradayBO/CO
1.NSEFNOFUTIDXAll contractsAll contractsCurrent month
2.NSEFNOOPTIDXAll contractsAll contractsCurrent month
3.NSEFNOFUTSTKAll contractsContract within 45 daysNot Allowed
4.NSEFNOOPTSTXAll contractsContract within 45 daysNot Allowed
5.COMMCXFUTCOMCurrent & next monthCurrent & next monthNot Allowed
6.COMMCXOPTFUTCurrent monthCurrent monthNot Allowed
7.NSECURFUTCURFirst 3 monthCurrent & next monthNot Allowed
8.NSECUROPTCURFirst 3 monthCurrent monthNot Allowed
9.BSEFNOFUTIDXAll contractsAll contractsNot Allowed
10.BSEFNOOPTIDXAll contractsAll contractsNot Allowed
11.BSEFNOFUTSTKNot AllowedNot AllowedNot Allowed
12.BSEFNOOPTSTKNot AllowedNot AllowedNot Allowed

Dhan also allows customers to place Bracket Order ( BO) and Cover Orders ( CO ) which are specific intraday products. BO is a type of order where customers can place three types of order simultaneously namely Initial Order, Stop Loss Order and Target Order. Limit provided for BO will be the Cash or Derivative limit stated above basis the product traded.

Table 2:Bracket Order (BO) Cover Order (Co) Range

Minimum Stop loss and Target % Range in Brack Order and Cover order
Cover OrderBracket Order
SegmentsMarginStoploss MinStoploss MaxStoploss MinStoploss MaxProfit Min Range
CASHX50.25800.25800.25
FUTIDXEXCHANGE0.1800.1800.1
OPTIDXEXCHANGE0.25802801

Note: In the BO, stop loss order and target price will be prefilled at 10 % for Option contract , the user can change it as per his requirement.

Covered order is a type of order where a customer needs to place stop Loss order compulsorily with initial order. Limit provided for CO will be based on the cash or derivative limit stated above basis the product traded. Note: In CO, stop loss order price will be prefilled at 2.5% , the user can change it as per requirement.

The product wise summary for trading limit that is available via Dhan is summarized below in Table 2.

List of securities with leverage and margin for trading can be found here.

Table 3: Summary of Dhan Product-wise limits:

Sr. No.SegmentIntradayBracket OrderCover Order
1.Cash Segment5X*5X*5X*
2.FnO DerivativesAs per exchangeAs per exchangeAs per exchange
3.CurrencyAs per exchangeAs per exchangeAs per exchange
4.Commodity (Metal/Bulluion)As per exchangeAs per exchangeAs per exchange

List of Permissible Intraday Scrips.

Note: *Table 3 above - Maximum limit that can be provided for a scrip. The list of permissible intraday scrips at Dhan, specifies the scrip-wise margins.

Dhan


The broking entity for the Dhan trading platform is Moneylicious Securities Pvt. Ltd. Moneylicious Securities Private Limited. (referred to from now on as MSPL ) CIN – U74999WB2012PTC184187 Moneylicious Securities is part of Raise Financial Services.


SEBI Stock Broker Registration No: INZ000006031 | Depository Participant (CDSL) ID: IN-DP-289-2016. Exchange Membership No. : NSE: 90133 | BSE: 6593 | MCX: 56320 with Registered Office: Office No. 14D, 4th Floor, Shri Krishna Chambers, 78, Bentick Street, Kolkata – 700001, West Bengal, India. Corporate Office: A-302, The Western Edge I, Off Western Express Highway, Borivali East, Mumbai – 400066, Maharashtra, India. Landline: 022-43116666.



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*All securities mentioned on this website are exemplary and not recommendatory.

We are bullish on India, we are bullish on India's prospects to be one of the largest economies in the world. We believe that the stock market provides a unique opportunity for all of India's traders and investors to participate in the growth story of the country.

Yet, most investing & trading platforms in India have remained more or less the same over the past decade. Times have changed and retail traders and investors have become smarter about managing their trades and money. Modern traders & investors require an online trading platform that helps them keep up with the technological advancements of our time.

That's why we're building Dhan - to help you trade, to help you invest, and to help you participate in India's growth stock via the stock market with awesome features and an incredible experience.

©2021-2024 Moneylicious Securities Private Limited. All rights reserved. CIN - U74999WB2012PTC184187 Moneylicious Securities is part of Raise Financial Services.

SEBI Stock Broker Registration No: INZ000006031 | Depository Participant (CDSL) ID: IN-DP-289-2016
Exchange Membership No. : NSE: 90133 | BSE: 6593 | MCX: 56320
Registered Office: Office No. 14D, 4th Floor, Shri Krishna Chambers, 78, Bentick Street, Kolkata - 700001, West Bengal, India.
Corporate Office: A-302, The Western Edge I, Off Western Express Highway, Borivali East, Mumbai - 400066, Maharashtra, India. Land Line: 022-43116666.


For any query / feedback / clarifications, email at help@dhan.co.

In case of grievances for any of the services rendered by Moneylicious Securities Private Limited, please write to grievance@dhan.co (for NSE, BSE and MCX) or grievancedp@dhan.co (for Depository Participant). Please ensure that you carefully read the Risk Disclosure Document as prescribed by SEBI, our Terms of Use and Privacy Policy. Compliance Officer: Mr. Manish Garg and Mobile: 8655740961 Email: complianceofficer@dhan.co To lodge your complaints using SEBI SCORES, click here.


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


Disclaimer: Investment in the securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit


Attention investors:

  1. Stock brokers can accept securities as margins from clients only by way of pledge in the depository system w.e.f September 01, 2020.
  2. Update your e-mail and phone number with your stock broker / depository participant and receive OTP directly from depository on your e-mail and/or mobile number to create pledge.
  3. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.

Note: As a policy we do not give stock tips or recommendations and have not authorized anyone to give this on behalf of us. If you know anyone claiming to be a part of Dhan / Moneylicious / Raise or our associate companies or partners and offering such services, please report us on help@dhan.co. Important Information for Investors: To prevent unauthorized transactions in your trading / demat account, do not share your account details, credentials or any personal details with anyone. Keep your mobile number updated with your Stock Broker, Depository Participant and ensure that the same is registered with Stock Exchanges, Depository and KRAs. You will receive alerts and information on your registered mobile number / email for debit and other important transactions in your demat account directly from CDSL / Exchange on the same day. KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (Stock Broker, DP, Mutual Fund, etc.), you need not undergo the same process again when you approach another intermediary. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account. This is issued in the interest of investors.


Moneylicious Securities Private Limited also known as Dhan is only an order collection platform that collects orders on behalf of clients and places them on BSE StarMF for execution. Client expressly agrees that Dhan is not liable or responsible and does not represent or warrant any damages regarding non- execution of orders or any incorrect execution of orders with regard to the funds chosen by the client or due to, but not being limited to, any link/system failure, delay in transfer of the funds on account of any unforeseen circumstances/issues in the banking system/payment aggregators or any other problems that may result in a delay in crediting the funds into the BSE Star MF's bank account.


Mutual fund investments are subject to market risks, read all scheme related documents carefully before investing. Dhan is not a distributor or agent of any mutual fund. Mutual Funds are not exchange-traded products. Any related disputes will not have access to the Exchange-investor redressal forum or arbitration mechanism. For other disclaimers please refer https://dhan.co/advertisement-disclaimer/


Download client registration documents (Rights & Obligations, Risk Disclosure Document, Do's & Don'ts) in vernacular language: BSE | NSE | MCX


Kindly, read the Advisory Guidelines of BSE | NSE | MCX for investors as prescribed by the exchange with reference to their circular dated 27th August, 2021 regarding investor awareness and safeguarding client's assets


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