Download Angel Broking-Restricted Scrips Policy Dealing in Restricted Scrips

Angel Broking-Restricted Scrips Policy
Dealing in Restricted ScripsIn order to exercise additional due diligence while trading in these securities either on own account
or on behalf of their clients:

Angel shall from time to time classify and publish on its website a list of securities which are
illiquid as per the list of illiquid securities on a periodic basis by the Stock Exchanges
concerned and/or based on such internal criteria as Angel may deem fit. Together it would
be termed as “Restricted Scrip”

Angel reserves the right to refuse execution of any transaction requests of the client on such
restricted securities or to reduce the open market interests of the client in such securities

Angel also reserves the right not to allow any trades or transactions in respect of certain
securities or segments or orders/requests which may be below/above certain value/quantity
as may be decided by Angel from time to time.
Two criteria have been decided based on the Investment Limit at a client level in allowing trading in
restricted scrip:
1. Client Level: Investments less than or equal to Rs. 1 lac per scrip per day
Angel may allow the dealing in restricted scrip, subject to following:

The trading turnover (buying and selling) in restricted scrips shall not exceed Rs. 1
lac per scrip on a single day.

At any given point of time the holding of any client in restricted scrips shall not be
more than Rs. 2 lacs.

The client should not trade in a single restricted scrip for more than 2 days in a
month
E.g. the client trades in restricted scrip ‘X’ on Day 1 and Day 2, he cannot trade in the same scrip X on
Day 3 or any of the other days in that month.

At Sub broker level the turnover threshold shall be less than or equal to Rs. 5 lacs
per day or Rs.15 lac per month in restricted scrips.
Angel Broking-Restricted Scrips Policy
2. Client Level: Investments more than Rs. 1 lac per scrip per day
Angel may allow the dealing in restricted scrip, subject to following:

No client will be allowed to buy in restricted scrips above the said threshold.(Rs. 1
lac)

If the client has purchased such banned scrip from Angel, then we shall allow the
client to sell through us.
3. Sub broker level: the turnover shall be less than or equal to Rs. 5 lacs per day or Rs.15 lac per
month in restricted scrips.
4. Other Mandatory requirements
1. To allow dealing in such stocks (buying or selling), 100% ledger credits will be required.
2. We consider Un-reconciled cheque values provided customers ledger is zero without
considering the Un-reconciled cheque value. The same will be considered directly by the
utility if the entry is reflecting in the back office + RMS system. We will also consider cheque
for which entry has been done today in the back office (as it will not reflect in the utility as
mentioned above because RMS is not real time), if the same has been approved/authorized
by regional operation head or Scan copy of the cheque is been mailed to CSO team on
[email protected].
3. The sub-broker deposit shall not be considered for this purpose.
4. If the Client’s ledger is showing ‘0’ then- Blue-chip + good + Average category holding after
haircut (as per the Exchange VAR) can be considered to buy the restricted scrip.
5. If the approved holding i.e. Blue-chip + good + average holding after haircut (exchange VAR)
cover the debit, balance if any can be considered to buy restricted scrip.
6. Selling in restricted scrip’s is permissible only if they are lying in the client’s BO with Angel
DP or lying in Angel‘s Beneficiary account.
7. Dealing in restricted scrips shall be through centralized dealing desk at CSO (Call and trade
lines) in Dealing Department.
There will be no exceptions allowed to the above policy.
Angel Broking-Restricted Scrips Policy
Dealing in Illiquid contract-
We are blocking illiquid options on Odin platform to avoid malpractices or erroneous trading. The
same can be opened for trading on Odin trading platform, if below parameters get fulfilled:-

Valuation of Open interest x strike price should be more than or equal to 25 lacs.

Option contracts (+,-) 20 % in accordance with the closing price of that particular scrip in
cash market.
This exercise (call-put blocking) is for the contract which has very low liquidity. The logic applied is if
any contract has open interest below Rs 25 lacs. We will not allow the trading to happen on all
Odin terminals. This doesn’t mean we will be blocking the contract from trading. For such orders
we can placed from the centralized desk to avoid any malpractices or erroneous trading.
For such trade client need to call their respective branch or region & do the trade through the
centralized desk.