CBSE Class 12 Risk Containment Measures

Read and download CBSE Class 12 Risk Containment Measures chapter in NCERT book for Class 12. You can download latest NCERT eBooks for 2021 chapter wise in PDF format free from Studiestoday.com. This textbook for Class 12 is designed by NCERT and is very useful for students. Please also refer to the NCERT solutions for Class 12 to understand the answers of the exercise questions given at the end of this chapter

Risk Containment Measures Class 12 NCERT

Class 12 students should refer to the following NCERT Book chapter Risk Containment Measures in standard 12. This NCERT Book for Grade 12 will be very useful for exams and help you to score good marks

Risk Containment Measures NCERT Class 12

 

Chapter 7 Risk Containment Measures

Learning Objectives:

After reading this chapter, you should be able:

1. To recall the knowledge related to capital adequacy requirements under various segments.

2. To classify among the various types of margins.

3. To acquire practical aspects related to margin system.

4. To apply the knowledge of exposure limits in the real life situation and trade accordingly.

Your guide engine to learning:

7.1 Introduction

7.2 Capital Adequacy Requirement

7.3 Base Minimum Capital (BMC) and Additional Base Capital (ABC)

7.4 Trading and Exposure Limits

7.4.1 Determination of Gross Exposure

7.4.2 Early Pay-in of Funds/Securities

7.4.3 On line Exposure Monitoring

7.4.4 Violation of Exposure Limits

7.5 Grouping of Securities

7.6 Margin Requirements

7.6.1 Value at Risk Margin

7.6.2 Mark to Market Margin

7.6.3 Extreme Loss Margin

7.6.4 Margin Payment and Payout

7.6.5 Margin Shortfall

7.7 Settlement Guarantee

7.8 Penalty Points and Penal Interest

7.9 Indemnity Insurance

7.10 Inspection and Investigation

7.11 Investor Protection Fund (IPF)

7.12 No-delivery Period


7.1 Introduction

As we have already discussed in the previous chapter that all the trades are settled by next two working days after the trading day. The obligations are downloaded by the members on time so that they make available the required funds and securities when required. On T+2 day, the funds and securities are paid in by 11:00 am by the members/CM to the NSCCL and the resources are paid out to the CM by the NSCCL at or after 1.30 pm.

The CC has also given the option of direct pay-out to investors, where in the CC credits the clients demat account with the securities that he is to receive. The details are furnished by the member of the respective client. In case the client has not paid fully to the member w.r.t the securities bought, the member can with hold the details of his account so that the member receives the securities in his pool account. In case of short deliveries, NSCCL buys securities on behalf of the defaulter from the auction market on T+3 day.

The auction market starts at 12 noon. From 12 noon to 12.30 pm, the initiator (i.e. NSCCL) puts the buy orders and the solicitors put the sell orders. Once the orders get matched, the CC buys the shares in order to settle the trade. In case the shares have still not been bought out, the CC compulsorily closes out the transaction by paying to the buyer for the shares not bought out.

To avoid such situations of default, the CC has put some statutory requirements with reference to capital adequacy and exposure limits. Since the CC doesn’t want to run into the risk of buying from the auction market or going for compulsory close outs, it has fixed certain norms. The capital adequacy requirements in case of NSE are much higher than the rest of the stock exchanges in India.

7.2 Capital Adequacy Requirement

To become a member of the stock exchange on NSE, one needs to have certain amount of funds as minimum net worth. They also have to give some amount as interest free deposit to the CC. The table below gives the details of capital adequacy requirements for membership under NSE.

 

Please refer to the link below for - CBSE Class 12 Risk Containment Measures                  



Tags: 

 


Click to View or Download pdf file
Click for more Other Subjects Study Material
CBSE Class 12 Modern Library and Information Services
CBSE Class 12 Macroeconomics in Hindi Part 4
NCERT Class 12 Heritage Crafts Tradition Of India Production and Marketing
CBSE Class 12 Engineering Isometric Projection
CBSE Class 12 Philosophy Education For Character Development
CBSE Class 12 Forms of Technical Translations
CBSE Class 12 Writing Reviews
CBSE Class 12 Entering the Transactions in Tally
CBSE Class 12 Elements of Fiction
NCERT Class 12 Heritage Crafts Craft Tradition Of India The Crafts Community Today
NCERT Class 12 Heritage Craft Design and Development
CBSE Class 12 Operations of Depository
CBSE Class 12 Talks and Speeches
CBSE Class 12 Business Process Outsourcing Part 2
CBSE Class 12 Economics Foriegn Exchange Rates
CBSE Class 12 Resources and Human Resource Management
CBSE Class 12 Punjabi Kaav Jatra
CBSE Class 12 Engineering Machine Drawing
CBSE Class 12 Philosophy Of Education
CBSE Class 12 Introduction to Article Writing
CBSE Class 12 Writing Short Stories
CBSE Class 12 Macroeconomics in Hindi Part 1
CBSE Class 12 Order and Trade Management
CBSE Class 12 Feature Writing
NCERT Class 12 Heritage Crafts Tradition Of India Colonial Rule and Crafts
NCERT Class 12 Heritage Craft The Crafts Community Today
CBSE Class 12 Translating Technical and Business Registers
CBSE Class 12 FMM Banking Operations
CBSE Class 12 Economics National Income
CBSE Class 12 Technical Processing of Documents
CBSE Classs 12 Fashion Studies Book
CBSE Class 12 Punjabi Katha Jagat
CBSE Class 12 Engineering Pulleys
CBSE Class 12 Economics Capital receipts
CBSE Class 12 Introduction to the Writing of Drama
CBSE Class 12 Application of Computer in Library
CBSE Class 12 Macroeconomics in Hindi Part 2
CBSE Class 12 Risk Containment Measures
CBSE Class 12 Features of Technical Registers
NCERT Class 12 Heritage Crafts Tradition Of India Crafts Bazaars
CBSE Class 12 Translation and the Translator
CBSE Class 12 FMM Financial Statements
CBSE Class 12 Economics Producers Behaviour and Supply
CBSE Class 12 Traditional Library and Information Services
CBSE Class 12 Physics Lens and Mirror
CBSE Class 12 Learning How to Write the Short Story
CBSE Class 12 Engineering Rod Joints
CBSE Class 12 Economics Consumers Equilibrium
CBSE Class 12 Functions of Different Sections of Library
CBSE Class 12 Macroeconomics in Hindi Part 3
CBSE Class 12 Trading Reports Download
CBSE Class 12 Forms of Business Translation
NCERT Class 12 Heritage Crafts Tradition Of India Crafts In Past
CBSE Class 12 Fashion Studies Basics of Garment Making
CBSE Class 12 Translations of Business Registers
CBSE Class 12 Accounting for Business Cost Sheet
CBSE Class 12 Economics Production Possibilities Curve
CBSE Class 12 Web Based Search
NCERT Class 12 Heritage Craft Craft In the Age of Tourism
CBSE Class 12 Clearing Reports Downloads
CBSE Class 12 Modes of Theatrical Presentation
CBSE Class 12 Engineering Shaft Couplings
CBSE Class 12 Economics Determination of Income
CBSE Class 12 Library Cataloguing
CBSE Class 12 Practical Handbook BPO Manual
CBSE Class 12 Understanding NEAT System
CBSE Class 12 Forms of Drama
NCERT Class 12 Heritage Crafts Tradition Of India Handloom and Handicrafts Revival
CBSE Class 12 Fashion Studies Pattern Making
CBSE Class 12 Understanding Short Stories
CBSE Class 12 Banking Operations
CBSE Class 12 An Introduction to Creativity
NCERT Class 12 Heritage Crafts Craft Tradition Of India Carfts In The Age Of Tourism
NCERT Class 12 Heritage Craft Craft In The Past
CBSE Class 12 Getting Familiar to NEET Screen
CBSE Class 12 Problems of Translation
CBSE Class 12 Engineering Tie Rod and Pipe Joints
CBSE Class 12 Economics Evolution of Money
CBSE Class 12 Library Classification
CBSE Class 12 Procedure for doing enteries in payroll software
NCERT Class 12 Heritage Crafts Tradition Of India Mahatma Gandhi and Self Sufficiency
CBSE Class 12 Engineering Bearings
CBSE Class 12 Understanding the Rolling Settlement
CBSE Class 12 Forms of Prose
CBSE Class 12 Writing Essays
CBSE Class 12 Contents of Balance Sheet
CBSE Class 12 Elements of Drama
NCERT Class 12 Heritage Crafts Craft Tradition Of India Design and Development
NCERT Class 12 Heritage Craft Mahatma Gandhi and Self Sufficiency
CBSE Class 12 Introducing and Understanding Transaction Cycle
CBSE Class 12 Process of Translation
CBSE Class 12 Business Process Outsourcing Part 1
CBSE Class 12 Economics Features of Perfect Competition
NCERT Class 12 Heritage Craft Colonial Rule and Crafts
NCERT Class 12 Heritage Craft Production and Marketing

Latest NCERT & CBSE News

Read the latest news and announcements from NCERT and CBSE below. Important updates relating to your studies which will help you to keep yourself updated with latest happenings in school level education. Keep yourself updated with all latest news and also read articles from teachers which will help you to improve your studies, increase motivation level and promote faster learning

Heritage India Quiz 2021 2022

CBSE Heritage India Quiz is conducted every year to raise the awareness about the preserving human heritage, diversity and vulnerability of the India's built monuments and heritage sites. It is an attempt of the Board to motivate the future generations of this country...

Celebration of Matribhasha Diwas Mother Language day

UNESCO has declared 21st February of every year to be celebrated as International Mother Language day to promote dissemination of Mother Language of all, create awareness of linguistic and cultural traditions and diversity across the world and to inspire solidarity...

All India Children Educational Audio Video Festival

The Central Institute of Educational Technology (CIET), a constituent unit of National Council of Educational Research and Training (NCERT), is inviting entries for the 26th All India Children’s Educational Audio Video Festival (AICEAVF). This festival showcases the...

National Youth Day and Birth Anniversary of Swami Vivekananda

Ministry of Education, Govt. of India vide D.O No. 12-4/2021-IS.4 dated 04.01.2022 intimated that 12 January 2022 will be celebrated as “National Youth Day” and “Birth Anniversary of Swami Vivekananda”.   All Schools affiliated to CBSE may celebrate 12 January 2022 as...

Board Exams Date Sheet Class 10 and Class 12

Datesheet for CBSE Board Exams Class 10  (Scroll down for Class 12 Datesheet) Datesheet for CBSE Board Exams Class 12

CBSE Term 2 Board Examinations

CBSE vide Circular No.Acad-51/2021 dated 5th July, 2021, notified that in the session 2021-2022, Board Examinations would be conducted in two terms, i.e.. Term I and Term II. This decision was taken due to the uncertainty arising out of COVID 19 Pandemic. Term I...