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Akriti Tomar

• Understanding Adhoc Margins in Trading: Key Insights for Traders

  By : Akriti Tomar | June 4, 2025

  Adhoc margins are additional margin requirements imposed by exchanges beyond the standard Value at Risk (VaR) and Extreme Loss Margin (ELM) to manage heightened risks. These margins are applied in response to factors such as increased volatility, sudden price movements, or exceptional market conditions. Why Are Adhoc Margins Imposed? 1. Market Volatility: During periods of high price fluctuations, exchanges may impose additional margins to protect against unpredictable losses. 2. Stock-Specific Risks: If a stock is facing corporate actions, news-based movements,

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• Why Do You Need to Provide Bank Account Details When Opening a Demat Account?

  By : Akriti Tomar | June 4, 2025

  When opening a Demat Account, you might wonder why your bank account details are required. This requirement is not just a formality — it plays a crucial role in ensuring smooth transactions, regulatory compliance, and secure management of your investments. Let’s understand why linking your bank account is essential and how it benefits you as an investor. 1. Regulatory Compliance As per SEBI rules, providing bank details is mandatory to meet KYC norms and prevent money laundering. 2. Smooth Fund

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• RMoney Account Opening & Trading FAQs

  By : Akriti Tomar | May 29, 2025

  1. How long does it take to open a Demat Account with RMoney? Your Demat account is generally activated on the same day upon successful completion of the account opening process. RMoney offers both online and offline modes for account opening. Click here to open a Demat Account with RMoney and start your investment journey. 2. What are the Account Opening Charges? RMoney provides free account opening. Alternatively, you can opt for the ₹299 Brokerage Reversal Scheme, where you pay

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• What is Short Delivery and Auction Settlement in the Stock Market?

  By : Akriti Tomar | May 22, 2025

  In the Indian stock market, every trade follows a settlement cycle where funds and securities must be delivered by the broker to the exchange on the T+1 day (i.e., one working day after the trade execution). This delivery process is called the pay-in. But what happens if the seller does not actually own the shares or fails to deliver them on time? This situation is termed a Short Delivery. What is Short Delivery? A short delivery occurs when a seller

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• What Happens When Short Delivery Cannot Be Settled Through Auction?

  By : Akriti Tomar | May 16, 2025

  When a short delivery of shares occurs and the exchange is unable to locate fresh sellers in the auction market, the transaction is considered closed out. In such cases, instead of delivering the shares to the buyer, the exchange settles the transaction in cash based on the close-out rate. The close-out rate is determined as the higher of the following: The highest price of the stock between the trading day and the auction day, or 20% above the official closing

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• Why Should Clients Maintain Funds to Cover Margin Shortfalls?

  By : Akriti Tomar | May 16, 2025

  When a trader’s account shows a margin shortfall, it means there aren’t enough funds to support the open positions. If this shortfall is not addressed in time, it can lead to penalties, restrictions, or even the forced closure of positions. Let’s understand why it’s crucial to transfer funds on time and the consequences of failing to do so. What is a Margin Shortfall? A margin shortfall occurs when the available margin in your trading account is lower than the required

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• What is a Daily Margin Statement and How to Understand It?

  By : Akriti Tomar | May 16, 2025

  A Daily Margin Statement is a report that provides clients with a detailed overview of their margin status. It includes the margins deposited (via fund transfers and pledged securities) and the margins blocked for open positions. The report is designed to keep traders informed about: The margin required by the exchanges for the positions taken or held. The availability of free margins to take new trades. Any margin shortfall that may lead to penalties, helping clients to maintain sufficient funds.

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• How is the Close-Out Price Determined?

  By : Akriti Tomar | May 16, 2025

  In the Indian stock market, trades are expected to be settled on a T+1 basis—meaning shares sold by a trader should be delivered to the exchange the next working day. But in certain cases, especially during short delivery, the seller fails to deliver the shares on time. If the shares are not delivered on T+1 and the exchange fails to procure them through the auction process, the exchange initiates a Close-out Settlement. What is a Close-Out in the Stock Market?

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• Quick Comparison: Direct vs Regular Mutual Fund Plan

  By : Akriti Tomar | May 16, 2025

  Disclaimer: Investments in the securities market are subject to market risks. This content is for educational purposes only and does not constitute financial advice. What is a Regular Plan? In a Regular Plan, you invest through a distributor, advisor, or agent—someone who helps you select funds, assists with paperwork, and may even offer investment advice. For this service, the distributor earns a commission. This commission is included in the fund’s Total Expense Ratio (TER), meaning you, as the investor, indirectly

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• How to Select the Right Stocks: A Fundamental Approach for Beginners?

  By : Akriti Tomar | May 16, 2025

  Disclaimer: This content is intended solely for educational purposes and does not constitute investment advice. Investments in securities are subject to market risks. Please consult a financial advisor before investing. Introduction If you are a beginner in stock market trading, selecting stocks can be a complex decision with numerous options available across various industries and price ranges, it’s easy to feel overwhelmed. However, with proper research and analysis, you can make informed choices when selecting stocks. By dedicating time to

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