RMS POLICY

1. We have installed ODIN as a front-end and also use NEAT wherever required. Both these software are provided with controllable risk parameters.

2. We have online real-time basis risk management software with well defined parameters installed in our trading system provided by outside vendor who has provided similar software and proven functioning of the same.

3. The risk parameters are the very well defined by the Director(s) and the risk management team sitting at Head Office. The executive personnel do have limited authority to change any risk parameters defined and instructed to them and installed in the software.

4. Further, the trade surveillance and monitoring of trading activities of different constituents connected to our main server is being viewed on continuous basis and alerts, warnings are sent to the erring constituents immediately and corrective actions are taken instantly.

5. Further, strict monitoring and follow-ups is being kept on all the sub-broker office after day end reports and any warnings or correction in security parameters on the risk management software is required with specific sub-broker office or a client is taken before day end.

6. Further, the analysis of trading activity of major clients is being regularly done to ensure that no risk of bad debts or faulty activity is carried out by any constituents.

7. The company is not having any margin funding and financing activity and feel that this is the best policy to mange the risk and relation with clients.

8. There is a continuous upgrading in the Risk Management system to prevent the risk to company / exchange.

9. Properly verify the credentials of clients specifically who deal in large amount of trading. We take sufficient co-lateral before allowing clients to trade. And our clients are safeguarded against the risk from company, as company do not involve in any kind of proprietary trading or investment activity.

10. Normally give the exposure to clients on the basis of their funds and securities lying with company. Also consider the past history and business relationship of clients with the company and allow them exposure limit accordingly.

11. During the volatility in the market, we constantly watch the position of clients and restrict their exposure. During sudden crash in the market, we insist client to make their payment immediately against their obligation otherwise we force them to square up their excess positions.

12. Also do not entertain clients for long outstanding position and restrict them for further trading. If any client has outstanding position and no security lying towards margin with the company, we set the exposure limit zero to those clients in all segments.