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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

Customer Trading Limit

Restricted Scrips

Square-Off Policy

MTF

Physical Settlement

Payout of Funds

Sale of Securities - EDIS

Credit for Sale

Pledge & Re-Pledge

Dormant Account

Delayed Payment Charges

Voluntary Freezing

Breach of Gross Exposure

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 & Next MonthCurrent & Next MonthNot Allowed
9.BSEFNOFUTIDXAll contractsAll contractsNot Allowed
10.BSEFNOOPTIDXAll contractsAll contractsNot Allowed
11.BSEFNOFUTSTKAll contractsContract within 45 daysNot Allowed
12.BSEFNOOPTSTKAll contractsContract within 45 daysNot 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 3.

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
4.Commodity (Metal/Bulluion)As per exchangeNot AllowedNot Allowed

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.

Customer Trading Limit

The trading limit that is available to the customers is a function of their combined ledger which is available to customers across all segments along with the value of the pledged securities. Trading Limit = Total combined ledger (Net segment-wise ledger) + Pledge value (Net of Dhan Hair Cut).


Note: Valuation of margin pledge holding will be as per previous day closing price or current LTP whichever is lower after applying Dhan defined haircut.

Single Order limit :

To avoid erroneous trading, below will be the single order level maximum cap applicable for any order.

InstrumentMax Order ValueMax Order QtyMax order Lot
CASH50000009999000-
FNO--As per Exchange Lot size.
COMMODITY--As per Exchange Lot size.

Restricted Stocks and Contracts

In the cash segment, Illiquid stocks are those that cannot be sold easily due to limited trading volume. These stocks pose higher risk to investors because it is difficult to find buyers for them as compared to frequently traded shares. Stocks that are not liquid are restricted for purchase on Dhan. The stocks that are restricted on Dhan include unsolicited SMS, GSM stocks , IRP Stage 1 and above as decided by the Risk Policy or updated basis exchange communication. Dhan reserves the right to refuse execution of any transaction requests of the customer on such restricted securities or to reduce the open market interests of the customer in such securities/ contracts

In terms of derivatives, Dhan has restricted trading in some options and future contracts to avoid manipulation of price and for the protection of consumers. The criteria for restriction is based on the open interest. In order for any derivative to be permissible, minimum open interest should be 10 lots in particular contracts and contract expiry should within the 18 months from current date.

Norms for Trading in Restricted script

In order to exercise additional due diligence some scripts are restricted at Dhan platform. Those scrips can be bought through a centralized call and trade desk with predefined norms.

Dhan shall not be responsible for non-execution/delay in execution of orders in restricted scripts consequential opportunity loss or financial loss to the customer.

Pre-condition:

  • For buying in restricted script clients must have clear credit in account.
  • Order will be executed after due diligence from the RMS side.
  • Max order value will be 10% of the exchange volume of that script.
  • Restricted script will be traded through Centralized call and trade desk.
  • Restricted scripts purchased through the Centralized desk will not be allowed to sell the same day.

RMS Square-Off Policy

Timer Base/intraday Square off :

At Dhan, a timer based intraday square off policy is followed where all positions created in Intraday/BO/CO will be squared-off from RMS side before closing of Market. All pending orders / unexecuted / partial orders will be cancelled as per intraday product feature. At the respective segments square off times, the positions will be squared-off at the best available price. Fresh trade in intraday product type will be restricted to 1 min prior to timer based square off timing. The table below specifies the square-off time by each segment. Table 3: Timer based summary time

SegmentsSquare off Time
NSE/BSE CASH, DERIVATIVES3.20 PM
COMMODITY11.15 PM for 11.30 PM, 11.40 PM for 11.55 PM Market closing

If Intraday position remains open :

If due to reasons such as connectivity, link or system failure, stock at Lower or Upper circuit i.e. circumstances beyond control, an intraday position is not squared-off, then it will be treated as a carry forward position and any loss or penalty due this will be borne by clients only. RMS reserves the right to liquidate the same on the next trading day as soon as markets opens in the absence of required margin.

Mark to Market square-off :

Dhan reserves the right to square-off all intraday positions ( cash as well as derivatives ) and carry forward derivatives trades, where-in MTM crosses 80% and above. The position will be reduced on the best effort basis and the customer will be liable for any losses on square-off. All pending orders of the customer will be cancelled. Client needs to Maintain Coverage of 20% against buying in cash segment. If coverage goes below, RMS has the right to sell client holdings up to required coverage.

Ageing based square-off :

Dhan reserves the right to liquidate the stock (or/and) Mutual Funds upon ageing of the ledger debit beyond T+4 days. The stock (or/and) Mutual Funds will be sold from customers' accounts on T+5 days after the ledger debit. For e.g: trades executed on Monday will be squared off on next Monday (T+5) where T indicates Trading Day An additional 1% charge will apply on Mutual Fund (MF) square-offs due to ageing debit.
1. In the case of an ageing debit square-off, Stocks will be liquidated first, followed by Mutual Funds. Within Mutual Funds, the order of liquidation will follow settlement priority: T1 → T2 → T3.
2. Once a Mutual Fund square-off order is triggered, it cannot be reversed even if the client clears the ageing amount after the order has been placed.

Note: Selling of MTF position will not be consider against Broking Ledger Ageing Debit.

Margin shortfall based square-off :

The customer needs to maintain the defined margin to retain position in derivatives segment ( FNO, Currency, Commodity ), RMS team reserves the right to initiate liquidation of position up to the required margin at any point of time. If the defined margin or exchange margin is short any open position can be squared-off at the Dhan discretion.

Note:

RMS liquidation will be done on T+1 basis for the Mark to Market (MTM) debit/margin shortfall. Even if due to sudden scrip volatility during the day, if a shortfall arises during the day due to MTM loss or margin increases, RMS liquidation will be done on the same day.

On T+1 day the required margin needs to be maintained before 9.00 AM in order to continue holding the position.

Margin Shortfall Penalties imposed to clients -

Margin shortfall penalty, which can be imposed under certain circumstances as per NSE recently released a circular dated 1st Oct, 2024 where the following penalties would be passed on to the traders by Stock Brokers.
  1. Dishonoured Cheques
  2. Changes in Hedge Positions
  3. Delivery Margin
  4. Special Margin
  5. Tender Margin
  6. Additional Margin
  7. Mark to Market Margins

CUSPA Process:

As per SEBI Circular SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2022/153 dated November 11, 2022, on Handling of Clients’ Securities by Trading Members (TM) / Clearing Members (CM), if a client fails to make payment for securities purchased, Dhan shall pledge the securities in the client's Demat account to CUSPA (Client Unpaid Securities Pledgee Account).

To mitigate the risk, Dhan will pledge minimum securities worth 130 % of the net debit balance from the client’s Demat account to the Client Unpaid Securities Pledgee Account (CUSPA).

Example: If the client is having a debit balance of Rs. 100, then Dhan will pledge minimum securities value Rs. 130/- to the Client Unpaid Securities Pledgee Account (CUSPA).

If the client fulfills the fund obligation within five trading days after the pay-out, the pledge will be released, and the securities will be available to the client as free balance.

If the client does not fulfill the fund obligation, Dhan reserves the right to sell the securities pledged in the CUSPA account to recover the outstanding dues within four days from the date of payout.

Dhan shall invoke the pledge only against the delivery obligation of the client. On invocation, the securities shall be blocked for early pay-in in the client’s demat account with a trail being maintained in the client unpaid securities pledgee account.

Margin Trading Facility (MTF)

The Margin Trading Facility would be available in accordance to the additional terms and conditions laid down below:

  • Minimum margin requirement would be higher than the requirement as defined by Exchanges, it would be as defined by Dhan RMS discretion. You can find List of securities with leverage and margin for trading can be found here.
  • Max 5 times limit will be provided on base Margin - Exp – if client had ₹ 1,00,000 margin he can avail exposure of ₹ 5,00,000.
  • Such margin would be in the form of cash and/or non-cash collateral (Group 1 stock) as per RMS discretion.
  • Interest charges* for using Margin Trading Facility would be charged on the funded amount via MTF as follows: This will be posted weekly.
    Sr. No.MTF Daily Debit BalanceInterest Rate (p.a.)
    1Upto ₹ 5,00,00012.49%
    2₹ 5,00,00.01/- to ₹ 10,00,00013.49%
    3₹ 10,00,00.01/- to ₹ 25,00,00014.49%
    4₹ 25,00,00.01/- to ₹ 50,00,00015.49%
    5Above ₹ 50,00,00016.49%
  • The client understands that Margin Trading Facility would be extended only for the Group 1 Stocks of NSCCL and Stocks as determined by DHAN RMS discretion from time to time. Applicable VAR margin also NSCCL or DHAN RMS discretion whichever is higher.
  • No client would be funded beyond Rs.50,00,000/- (Fifty Lakhs Only) which shall be subject to RMS discretion. Exposure to single stock should not be go beyond Rs. 10,00,000.
  • Concentration in a stock shall be measured at EOD by arriving the percentage value of single funded stock against Total Stocks (funded plus collateral).
  • EOD alerts to be generated for stock concentrations above 20%.
  • If Stock concentration exceeds 20% (Rs. 1000000) , Additional Concentration margin of 25% will be demanded from the client or such stock will reduce till the related concentration drops to 20% as per EOD calculations.
  • In case of Margin Shortfall, the shares will be squared-off after giving margin call if the margin shortfall amount exceeds ₹5,000.
  • The Margin Trading position of the client shall be marked to market on a daily basis. Accordingly, at any point of time, if the holding coverage goes below 20% of the total portfolio, the client's holding will be liquidated to the extent of shortage.
  • If a stock is no longer in the MTF approved exchange list, any funded position must be closed.
  • Client will have to make payment in full for stocks that have been removed from Exchange MTF approved list. Dhan reserves the right to liquidate and close client positions if the above requirement is not fulfilled. For Exchange Approved MTF stock- Dhan refer both exchange approved stocks list (Group 1 stocks)
  • In case of Corporate Action (except Bonus or Stock split) DHAN has rights to close MTF position where clients have sufficient funds (Ledger+ Broking Pledge) equivalent to MTF funded close value with sending prior intimation to clients.
  • Buying in MTF will be allowed only on Group 1 pledge securities, if any buying done other than Group 1 stocks then MTF funding will not be booked.
  • On settlement Holiday, previous day bought holding (MTF BTST Holding) will not be available on trading system for selling.
  • Funds transfer against MTF Shortfall will first adjust with Broking books shortfall (Ledger+ Pledge) if any and then available amount will utilize for MTF shortfall.

Physical settlement of F&O and Commodity

Equity Derivatives :

In case of Stock Future contracts on Expiry day, only intraday trading will be allowed. No fresh carry-forward position will be allowed & no fresh position will allowed in Stock Option contract on day of Expiry in any product type. For carry forward position, if the customer wishes to take or give physical settlement of Stock Future /Stock Option contracts, they would be required to maintain margin, which is to the tune of 100% of the contract value before 10.00 am on expiry day (Thursday ). (Refer Link for Physical settlement of F&O). If for any reason, in case there is a margin short-fall ( i.e. less than 100% of the contract value) , Dhan reserves the right to square-off the position. In case the position does not get squared-off for reasons such as liquidity constraints, option contract getting converted to ‘In The Money’ during market hours etc, the costs (penalties/losses) of physical delivery will be applicable to the customer. On Expiry day, delivery margin will blocked for all long stock option positions ( ITM, ATM, OTM) and will be calculated as per Exchange defined norms of VAR+ELM % of underline stock or 20% whichever is higher.


If any client has an open position (short stock Future, ITM Call short or ITM Put long) and he wants to give Delivery, client will have to intimate Dhan customer support before 10 AM on expiry day. He will also have to ensure that same stock quantity is available in his Demat account and E-DIS is marked for same quantity (if client is Non Poa).


Pre Expiry- if any F&O contract force closure due to corporate action like a Merger or Demerger , the contract will be physically settled and physical settlement policy of dhan will be applicable, clients need to maintain 100% of delivery value.

Stock Physical Delivery
Exchange MarginDhan MarginAllow for Trading
Expiry Day-4 day (Friday)10% of VAR+ELM10% of VAR+ELMYES
Expiry Day-3 day (Monday)25% of VAR+ELM25% of VAR+ELMYES
Expiry Day-2 day (Tuesday)45% of VAR+ELM45% of VAR+ELMYES
Expiry Day-1 day (Wednesday)70% of VAR+ELM70% of VAR+ELMYES
Expiry Day (Thursday )100% of VAR+ELM100% of Contract ValueNO

Commodities :

Commodities with compulsory delivery will be closed a day before their respective tender period / delivery intention. Physical Delivery of Positions is not allowed. All the deliverable contracts of MCX enter ‘Tender Period positions' as mentioned by exchange from time to time. Customer's positions will be squared-off one day prior to the start of the ‘Tender Period' of the contract. No positions will be allowed to carry over in Tender Periods. Please note, the creation of new positions in contracts will be blocked 1 day prior to the initiation of the 'Tender Period' or 'Devolvement Period'

Commodity Delivery Options Blocking Before Devolvement Period :

Based on the criteria specified in the SEBI circular exchange shall identify option commodities which shall be settled through devolvement of future contract. Commodity delivery option contracts pertaining to devolvement will be blocked for further trading in Normal product type on Expiry Day. (Only square off allowed for current month expiry options).

On Expiry day all carry forward position of Current month Option will be closed if margin is not maintain as per required margin of devolvement , which will be equal to 100% of the futures contract margin.

Any Long ITM (in the money ) position remain open without sufficient Development margin will be mark do not exercise ,and the option contract will expire worthless.

Commodity Option Devolvement margin
Exchange MarginDhan MarginAllow for Trading
Expiry day-2 days25% of Underline MarginOnly Premium ValueYES
Expiry day-1 days25% of Underline MarginOnly Premium ValueYES
Expiry day50% of Underline MarginOnly Premium ValueOnly Intraday

Payout of Funds

Customers can withdraw the amount available in the Dhan trading account at any point of time by placing a fund payout instruction of the trading platform. Calculation for fund withdrawable amount is given in table 4.

Table 4: Calculation of withdrawable funds:

ActionComponentsRemarks
-Clear Fund BalanceEffective Ledger Balance Across All Segments
LESSFuture DebitAll Open Bills and other debit (if Any)x
LESSMargin ObligationTotal Margin & Unrealised & Realised Loss
LESSUnposted ChargesUnposted DPS/DP Bill/ Shortage Penalties etc

In case if the customer has traded at the time of the payout request, and wishes to take full payout then the system will release payout after deduction of 5% or Rs. 5000 (whichever is lower). Please Note funds added on any given day will be available for withdrawal on the next day.

Execution of Sale of Securities through E-DIS

In order to execute and sell transactions of available securities in the customer's account, the customer can use E-DIS mode by using a TPIN from CDSL. This PIN is required to be set by the customer. Customers can pre-authorize the sale of stocks via the CDSL TPIN facility, at the beginning of the trading day so that customers do not need to take authorization prior to each sell transaction for holdings. 100% of the sell credit of delivery trades can be utilised for all segments for further buying of new positions on the same day. For example: If the customer sells holding worth Rs. 2,00,000 then the customer will get credit for sell benefit up to 100% of gross sell shall be allowed, which will be Rs. 2,00,000 for new positions on the same day.

Demat Debit and Pledge Instruction (DDPI):

Clients can also execute sale transaction without E-DIS by executing Demat Debit and Pledge Instruction (DDPI) in favour of Dhan. By doing this, the client will be exempted with the requirement of entering TPIN for pre-authorising sale transactions.

Credit for Sale (CFS)

According to recent regulatory changes, the Trading Limit on Credit received against delivery sell will be available to clients for further purchasing stocks or initiating new positions in different exchange segments only after the successful early pay-in of securities. To comply with this requirement, we have made changes in our Risk Management Policy and the following conditions have been added:

  • If you sell any stock from your Delivery (CNC) holding or Margin Trading Facility (MTF) holding, you will not be allowed to buy the same stock again on the same day, whether through MTF or CNC.
  • If you sell any stock from your CNC holding and wish to trade in it again, you can only repurchase the same stock after converting your position to intraday (MIS).

The CFS benefit available in our systems is as follows:

CaseSelling of StocksCurrent
(a)From Free Holding100%
(b)CUSA0%
(c)BTST0%
(d)Margin Pledge80% or (100% less Haircut value whichever is minimum)
Consider the below examples for better understanding:

  • If you sell stock from Free Holding - You will get flat 100% of the CFS benefit
  • If CUSA stock is sold / You sell stock from CUSA - You will get no CFS benefit
  • If you buy the stock and sell on the next day (BTST) - You will get no CFS benefit
  • If you sell stock which is Pledged for Margin - You will get a minimum of 80% or (100% less the haircut value of the stock).

Pledge & Re-Pledge

With reference to SEBI circular reference no: SEBI/HO/MIRSD/DOP/CIR/P/2020/143 dated July 29, 2020 & SEBI/HO/CFD/DCR-2/CIR/P/2020/164 dated September 02, 2020, all the Collateral margins can be given only in accordance with the securities pledge to Clearing Corporation (NCL). The request shall be initiated by the customer.

  • Pledge will be allowed for selected stocks defined by exchange and Dhan RMS team.
  • Pledge Benefit: Pledge benefit will be calculated on real time basis RMS defined haircut here.
  • Pledge Benefit could be used for all segment on combined basis.
  • List of securities with leverage and margin for trading can be found here.

Unpledge of Shares
At the time of unpledge request, our systems will check that there will be no margin used or negative balance against pledge holdings. Accordingly, collateral benefit is removed on successful unpledge request and limit is reduced on real time basis.When selling a pledged stock, unpledging will happen in real time and in line without the need of un pledging stocks by client before selling.Pledge/ unpledge timing: up to 4 PM (Exchange working days )

Upledge of Mutual Funds
Your unpledged units cannot be redeemed directly. You need to first unpledge your mutual fund units. Once the unpledge request is processed, you will be allowed to place a redemption request.
Please note that unpledge requests are accepted between 9:00 AM and 3:00 PM on business days, and the units will be added back to your free units on the next business day.

Example: If a client places an unpledge request on Monday, the units will be available for redemption as free quantity on Tuesday.

Note: At the time of placing an unpledge request, our systems will verify that there is no margin utilized or negative balance against the pledged mutual fund holdings. If the conditions are met, the collateral benefit will be removed upon successful unpledge, and your trading limit will be reduced in real-time.

Dormant Account

An account shall be marked dormant if there's no trading activity observed for a period of 12 months. Dormant customer marked inactive at Dhan platform; no further trade will be allowed.

Delayed Payment Charges

On ledger debit, if debit obligation is not clear up to the settlement day, then Dhan will charge delayed payment charges at 0.0438% per day. As per exchange norms, in order to trade in derivatives, the margin needs to be 50% cash/cash equivalent and only 50% non cash. Thus, any shortfall in Cash or Cash equivalent will levied Interest at the rate of 0.0438% per day.

With respect to SEBI Circular SEBI/HO/MRD2_DCAP/CIR/2021/0598 dated 20th July 2021 for Segregation and Monitoring of Collateral at Client Level please note w.e.f. 02nd May 2022, Trading Members shall be required to maintain Cash and Non-Cash Collateral in the ratio of 50:50 client level segment-wise.

Starting May 2, 2022, you will have to maintain at least 50% of funds in cash compulsorily in your trading balance. This change is due to the SEBI Mandate which says Clients are required to maintain at least 50% of the total collateral in the form of cash or cash equivalents.

For overnight /Intraday positions, 50% of the margin needs to compulsorily come in cash or cash equivalent collateral (Exp- Liquid MF ETF, GSEC, SGB, etc) and the remaining 50% can be in terms of non-cash collateral margin( Pledged shares).

Delayed Payment Charges of 0.0438 % per day will be levied if any cash margin shortfall on overnight position.

We highly recommend you to maintain 50% cash or cash equivalent in your trading balance, so as to avoid any delayed payment charges.

Below transaction require minimum 50% cash or cash equivalent:

Trading ActivtyFund Requirement
Equity Delivery50% cash/ cash Equivalent
Option Buy / Sell50% cash/ cash Equivalent
Future Buy / Sell50% cash/ cash Equivalent

Please refer to the example below for a better understanding:

Cash or Cash Equivalent = 125000/-
Non-Cash Collateral = 300000/-
Total Limit on Dhan = 425000/-
Margin used = 400000/-

For the above transaction to be processed, the client needs to have minimum cash or cash equivalent to be Rs.2,00,000/- ( 50% of Rs.4,00,000/-), but we can see that client only has Rs.1,25,000/- cash balance.

So in this scenario, clients will be charged an Interest on the remaining shortfall of Cash Margin ie: Rs.75,000 ( Minimum Cash Required (Rs.2,00,000/) minus Available cash (Rs.1,25,000/-))

Per day Interest charged will be: 0.0438%

So the interest charged will be:

75,000 * 0.0438% = Rs.32.5 per day

E.g.: Customer has a clear ledger Rs.50,000 and non-cash (pledge AHC) Rs. 100,000 and the customer takes a derivatives position that requires Rs. 150,000 margin. For this transaction the customer is required to have Rs. 75000 cash collateral but the customer had only Rs. 50,000 so interest will be charged on shortfall amount Rs.25,000.

Policy: Voluntarily Freezing and Unfreezing of Trading Account

As a customer, if you think that your Dhan trading account has been compromised or there is a presence of suspicious activity, you will now be able to voluntarily freeze your trading account via IVR or by accessing the Dhan portal from app and web.

Freezing your account:

A dedicated IVR number (080-69891917) has been allocated for this specific purpose. Once you call this number from your registered mobile number on Dhan, you will be asked for your confirmation to voluntarily freeze your Dhan trading account.
As soon as the request is received over IVR (interactive voice response), we will proceed to freeze your trading account immediately. Here is what will happen:

  1. All your pending orders will be cancelled with immediate effect.
  2. Your open positions will NOT be squared off.
  3. You will be logged out of all active sessions.

You can also request to freeze your account via Dhan app and web. Please follow the steps below:

  1. Navigate to “Manage Trading Segments” on app or web.
  2. Click on “Temporarily Freeze Trading Account”.
  3. Acknowledge and enter OTP received on registered mobile.

We will be informing you via SMS and Email once we freeze your account. You will also receive details of all your open positions (if any) via Email only.

Re-enabling trading access:

You will only be allowed to enable trading access after 24 hours of voluntary freezing. You can call on the same IVR number (080-69891917) and follow the instructions to unblock your trading account. To re-enable it via Dhan app or web, please follow the steps below:

  1. Navigate to “Manage Trading Segments” on app or web.
  2. Click on “Unfreeze your Trading Account”.
  3. Acknowledge and enter OTP received on registered mobile.

We will be informing you via SMS and Email once your account has been unfreezed and ready to trade again.


Note: This policy is in accordance with Exchange Circular NSE/INSP/61529 and 20240408-12 (BSE) w.e.f 1st July, 2024 and can be viewed here.

Breaching of Gross Exposure limit in Index Derivatives - To be Posted in DPC Interest

According to the NSE circular regarding Position Limits in the Equity Derivatives Segment (Futures and Options), any clients exceeding the following limits will incur additional margin requirements:

  1. Equity Index Futures Contracts: Rs. 500 crores
  2. Equity Index Options Contracts: Rs. 500 crores

In such cases, the exchange will collect additional margin on the excess positions from the Trading Member, which will be held in cash for a period of one month. If the client fails to maintain the required additional margin, Dhan will impose delay payment charges on the shortfall at a rate of 0.0438% per day until the margin is released.

For calculating Rs. 500 crore exposure exchange consider below working

SymbolStrikeInstrumentOptionOption Premium/Future PriceQtyGross Value (Cr.)Exchange Limit (Cr.)Free/Short (Cr.)Requirement
Bank Nifty48000OPTIDXPE50100000480.550019.5No action. Within Rs 500 crs Limit
Nifty52000OPTIDXPE100150000781.5500-281.5Action. Underlying required for Rs. 281.15 crs
Nifty-FUTIDX-100050000050500450No action, Within Rs 500 crs limit

Gross Value Calculation

  1. Options: (Strike Price + Option Premium) × Quantity
  2. Futures: Quantity × Futures Traded Price

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 – U74999MH2012PTC433549 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: Unit No. 2201, 22nd Floor, Gold Medal Avenue, S.V. Road, Beside Patel Petrol Pump, Piramal Nagar, Goregaon West, Mumbai – 400104.
Corporate Office: 302, The Western Edge I, Off Western Express Highway, Borivali East, Mumbai – 400066, Maharashtra, India. Customer Care: 9987761000.





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

*Current prices on the website are delayed by 15 mins, login to check live prices.

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.

We are doing so by giving you access to not just one but 6 products within the Dhan ecosystem:


This means that with Dhan, you'll be able to start:


Lakhs of users already trust Dhan for their online stock trading and investing needs. Dhan is growing rapidly because of the love we receive from SuperTraders and Long-Term Investors who acknowledge that the platform is innovating for them, building super useful features that help them do everything from investing in stock market to trading F&O like a pro on the Tradingview charts and much more.

While we are growing, we will always remember why we started building in the first place - you. Our user-first approach will always be at the heart of our philosophy. Come join us on this incredible journey!

Try it out, you can close your account at anytime using this link.

©2021-2025 Moneylicious Securities Private Limited. All rights reserved. CIN: U74999MH2012PTC433549 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: Unit No. 2201, 22nd Floor, Gold Medal Avenue, S.V. Road, Beside Patel Petrol Pump, Piramal Nagar, Goregaon West, Mumbai – 400104
Corporate Office: 302, The Western Edge I, Off Western Express Highway, Borivali East, Mumbai - 400066, Maharashtra, India. Customer Care: 9987761000.

Details of client bank account

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.


Disclaimer: All communications with the client via chat, phone, or email are for support purposes only. Any commitments or statements made by the agent (human or virtual) shall not be binding on the company.


DHAN is a brand owned by Moneylicious Securities Private Limited. All DHAN clients are registered under Moneylicious Securities Private Limited. Clients are advised to refer to our company as Moneylicious Securities Private Limited when communicating with regulatory authorities.


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


Important Links: SEBI | BSE | NSE | MCX | CDSL | SCORES | ODR Portal | Investor Charter for Stock Brokers | Investor Charter for DP | UCC Advisory | e-Voting for Shareholders | NCL Client Collateral details |
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