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1.

An investor buy 100 Tata Steel Share @Rs.600 & sale 20 Bhelt Share @Rs1700 on 31-8-08 Calculate his maximum payable? (Brokerage=1.30%, STT=0.017%, S. Tax=10.30%)

Ans:- His maximum payable will be = Rs.(60000+34000) => => => Rs.94000 X 1.30% Rs.1222 X 10.3% = Rs.1222.00 = Rs. 125.87 = Rs.1363.85 2. (i) Short Note: Margins based Turnover Limits: Members are required to deposit margin money to get the trading limit or Exposure limit. Therefore they have given initial margin. They may submit such deposit by the following forms(a) Cash (b) Fixed deposit Receipts issued by approved banks or NSCCL. (c) Bank guarantee in favour of NSCCL from approved banks in the specified format. Bank guarantee may be cash component or non cash component, that means which from have above Rs.500 cores that is cash component otherwise not. (d) Approved Securities in demat form deposited with approved custodians. (e) Government Securities. (f) Units of schemes of liquid mutual funds or government securities mutual funds. The haircuts for units of liquid funds or government securities mutual funds shall be 10% of net Asset Value. (ii) Intra-day Turnover Limit:Members are subject to intra-day trading limits. Gross turnover (buy+sell) intra-day of the member should not exceed thirty three and

Rs.94000 X 0.017% = Rs. 15.98

31 one third times the base capital. Members violating the intra-day gross turnover limit at any time on any trading day are not be permitted to trade forth worth. Members trading facility is restored from the next trading day with a reduced intra day turnover limit of do times the base capital till deposits is deposited with NSCCL. Members are given a maximum of 15 days time from the date of the violation to bring in the additional capital. Upon members failing to deposit the additional capital within the stipulated time, the reduced turnover limit of 20 times the base capital would be applicable for a period of one month from the last date for providing the margin deposits. Upon the member violating the reduced intra day turnover limit, the above mentioned provisions apply & the intra day turnover will be reduced to 15 days, then 10, 5etc. It any subsequent violation occurs till the required additional deposit is brought in. (iii) Trading & Exposure limits:NSCCL imposes limits on turnover & Exposure in relation to the deposits available with the Exchange/NSCCL. The members are subject to limits on trading volumes in a day as well as exposure at any point of time. Gross intra day not exceed of a member 33,1/3 times of the capital available with NSCCL. Similarly, gross exposure of a member shall not exceed 8.5 times of free base capital up to Rs.1 core. If a member has free capital in excess of Rs.1 core his exposure shall not exceed Rs8.5 core plus 10 times of the capital in excess of Rs.1 core Determination of gross Exposure. (iv) The Gross Exposure of a member is Computed:This is computed across all securities & across all open settlements in rolling settlements. Open settlements are all those settlements for which trading has commenced & for which pay in is yet to be completed. It is arrived at by adding up the absolute values of the products of net cumulative values & the specified adjustment factor, for all securities in which a member has an open position. For this purpose, scripts have been classified into four groups, based on market capitalization, impact cost & number of trades.