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, Bentinck 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.
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.
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
In terms of Delivery / Carryforward 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.
The criteria for trading the areas are summarized below in Table 1.
Table 1: Derivative contract allowed for trading
Sr. No. | Exchange | Segment | Instrument | CNC/ Carryforward | Intraday |
---|---|---|---|---|---|
1. | NSE | FNO | FUTIDX | All contracts | All contracts |
2. | NSE | FNO | OPTIDX | FUTSTKAll contracts | Current month |
3. | NSE | FNO | FUTSTK | OPTSTXAll contracts | Current month |
4. | NSE | FNO | OPTSTX | All contracts | Current month |
5. | COM | MCX | FUTCOM | Current & next month | Current & next month |
6. | COM | MCX | OPTFUT | Current month | Not allowed |
7. | NSE | CUR | FUTCUR | First 3 month | Current & next month |
8. | NSE | CUR | OPTCUR | First 3 month | Not allowed |
Sr. No. | Segment | Intraday | Bracket Order | Cover Order |
---|---|---|---|---|
1. | Cash Segment | 5X* | 5X* | 5X* |
2. | FnO Derivatives | As per exchange | As per exchange | As per exchange |
3. | Currency | As per exchange | As per exchange | As per exchange |
4. | Commodity (Metal/Bulluion) | As per exchange | As per exchange | As per exchange |
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: The feature of pledging is currently unavailable
on the Dhan trading platform. There will be customer announcements once this feature is
active. Valuation of margin pledge holding will be as per previous day closing price or
current LTP whichever is lower after applying Dhan defined haircut.
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 GSM,
ASM ( above stage 2) , unsolicited sms , stocks ( Refer Link for Detail
) 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.
Norms for Trading in Restricted script
In order to exercise additional due diligence some scripts are restricted at Dhan platform. That scrip 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:
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. The table below specifies the square-off time
by each segment.
Table 3: Timer based summary time
Segments | Square off Time |
---|---|
NSE/BSE CASH, DERIVATIVES | 3.20 PM |
CURRENCY | 4.45 PM |
COMMODITY | 11.15 PM for 11.30 PM, 11.30 PM for 11.55 PM Market closing |
Equity Derivatives
In case of
derivative contracts; starting from 3 days prior to expiry ( i.e. Monday, start of
expiry week) , only intraday trading will be allowed and no fresh carry-forward
position will be allowed. If the customer wishes to take or give physical settlement
of derivative contracts, they would be required to maintain margin, which is to the
tune of 100% of the contract value before 12.30 pm 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.
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 from T- 4 days before current month
expiry day. (Only square off allowed for current month expiry options).
Payouts 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
Action | Components | Remarks |
---|---|---|
Clear Fund Balance | Effective Ledger Balance Across All Segments | |
Less | Future Debit | All Open Bills and other debit (if Any)x |
Less | Margin Shortfall Amount | Total Margin Requirement - Total Collateral |
Less | Unposted Charges | Unposted DPS/DP Bill/ Shortage Penalties etc |
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. Upto 80% 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. 200,000 then the customer will get credit for sell benefit up to 80% of gross sell shall be allowed, which will be Rs. 160,000 for new positions on the same day.
Single Order limit :Instrument | Max Order Value | Max Order Qty | Max order Lot |
---|---|---|---|
CASH | 9999000 | 999999 | |
CURRENCY | 9999000 | 500 | |
FNO | 9999000 | 99 | |
COMMODITY | 9999000 | 10 |
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.
An account shall be marked dormant if there's no trading activity observed for a period of 12 months. Dormant customer mark inactive at Dhan platform no further trade will allow.
On ledger debit, if debit obligation is not clear up to the settlement day, then Dhan
will charge delayed payment charges at 0.05% 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
0.05% 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.