Starting 1^st Oct 2020, Clearing Corporations(CCs) is taking 4 snapshots of client position and margin thereof at random intervals. CCs are providing these Peak margin files Stock-Brokers / Clearing Members (TM/CM) to ensure that they are collecting margin upfront to meet the requirement of Peak Margin. This is in addition to existing Margin Collection, Reporting and Penalty requirement for end of the Day Margin Reporting.

Starting 1^st Dec 2020, Clients would be subject to Peak Margin requirement as well as End of Day (EOD) Margin requirement. Short-fall in Peak Margin or EOD Margin would be subject to penalty at prescribed rates along with 18% GST.

The penalty would be collected by Clearing Corporations from Client through Stock-Brokers / Clearing Members.

What has changed at ProStocks :

1. Client selling delivery from Demat Holding will get 70% credit for Sale (CFS) on a real-time basis in Trading Application instead of 100 percent, in all the three Trading Platform which we have, Namely PROSTOCKS, PRO AND BEST. The clients were getting 100 CFS so far.
2. Client selling delivery from Previous Buy Position, also known as T1 Holding or BTST or Stocks to be received (SR) will get 50% CFS on a real-time basis in PROSTOCKS AND PRO Trading Application and Zero (NIl) instead of 100 per cent CFS, they were getting so far.

Why 70% CFS or 50% CFS instead of 100%

NSE allowed that Client's margin can be considered equal to 100% of the sale value once Early Pay-In of Securities sold by the Client through NSE Circular and Annexure A NSE/INSP/45191 dated July 31, 2020.

............However, in respect of sale of shares by a client for which early pay-in has been accepted by CC, since settlement of the trade is guaranteed by the CC, member may choose to give credit of the sale value of the shares in the ledger account of the client, which may be considered as margin towards subsequent trade/s of the client.

NSE by Download Ref No: NSE/INSP/46485 and Circular Ref. No: 72/2020 dated November 27, 2020, just a day prior to Peak margin Penalty provisions coming into effect has modified the above-said clarification/guidelines by an answer to question 1 of Annexure A of the said circular:

........However, the sale value of such securities (EPI value), as reduced by value of the 20% upfront Margin, shall be available as Margin for other positions across all the segments

Care and Caution for Client Trading on BEST Platform for Derivatives and availing In-built Hedge Margin Benefit( HMB)

Whenever you are removing hedge or sq off or changing the portfolio, Please extremely careful to first sq off the higher margin / naked or risky leg before you sq off the leg which created the hedge or reduced the risk and or Margin.

Example: Assume you have available Margin of Rs 1,60,000 and one lot NIfty Call Buy position for which you have blocked/ paid margin of Rs 10,000. Now you want to sale one lot of Nifty Futures for which margin is Rs 1,60,000. Instead of you getting charge margin of Rs 1,70,000, You were subject to a margin of just Rs 17,000 ( which is 10% of actual margin otherwise payable) for both the position, together and got HMB of Rs 1,53,000. Post this position, now you have an available margin of Rs 1,53,000. Further, assume that you bought delivery of Rs 1,50,000 from the available margin of Rs 1,53,000 and the now available margin is Rs 3,000.

Now if you go ahead and do sale / sq off of one lot Nifty Buy Call leaving one lot Nifty futures sale as naked/unhedged position and margin requirement for this position is Rs 1,60,000 against available Margin of Rs 13,000 ( Rs 3000 plus RS 10000 from sale of Call Option) leaving Margin Shortfall of Rs 1,47,000.

Be extremely careful to sq off the naked leg first which in this case was Nifty Future Sale position before you sq off leg which created hedge. In case of Margin shortfall even of peak margin and even for a few seconds, You are expressly agreeing to agree to bear the penalty and consequences thereof.

Impact of Peak Margin Reporting effective 1^st Dec 2020 on Resident Indian Client using the PROSTOCKS, PRO and BEST Trading Platform

Impact of Peak Margin Reporting effective 1st Dec 2020 on Non Resident Indian Client having NRE Trading and Demat Account linked with NRE PIS Bank Account and using the PROSTOCKS , PRO and BEST Trading Platform provided by ProStocks

NRI Client buying against sale of delivery or against PIS Bank balance has to ensure that their Bankers makes us payment by Trade Plus 1 Days. Most Banks including HDFC Bank has allowed NRI to debit their PIS Bank Account and credit Sunlight Broking LLP ( ProStocks 's Bank Account with respective Banks).

In case funds are not received by Settlement Date ( Which is Trade plus Two Trading Days) , Exchanges / Clearing Corporation will levy penalty of 1.18 % ( 1 percent plus 18 percent GST on 1 percent) of shortfall amount for two days, so this will be 2.36 percent for the shortfall amount.

ProStocks will recover from client and will make the payment to Exchanges/ clearing corporation.

Impact of Peak Margin Reporting effective 1st Dec 2020 on Non Resident Indian Client having NRO NON PIS Trading and Demat Account linked with NRO Savings Bank Account and using the PROSTOCKS , PRO and BEST Trading Platform provided by ProStocks

S P Toshniwal

www.prostocks.com

+91-22-62434343

Dear Sir / Madam

ProStocks, your online Stock Broker has two Trading Platform:

1. ProStocks In-House called ProStocks Mobile, ProStocks Web and ProStocks Desktop
2. BSE BEST called BEST Web, BEST Mobile and BEST Desktop

ProStocks In-House Trading Platform has been completely revamped and has gone live. This new Platform is called ProStocks Pro.

ProStocks Pro Mobile and Desktop have many enhancement over the existing platform. ProStocks Web will be known as ProStocks I-Trade, is available in Beta Mode.

We are migrating the existing client of ProStocks Mobile to ProStocks Mobile Pro and ProStocks Desktop to ProStocks Desktop Pro, in a phased manner. BEST Client will continue to use BEST Platform.

All clients presently using ProStocks Trading Platform please do Forgot Password and login in ProStocks Pro for MOCK TRADING

Please do share your feedback to [email protected]

Please note the download link Mobile Application :

Android user: https://play.google.com/store/apps/details?id=com.intmilli.prostocks

IOS Users: https://apps.apple.com/us/app/prostocks-mobile-pro/id1530594826

Please note the download link Desktop Application :

https://www.dropbox.com/sh/z3nvj1josgqqdfj/AACoNV16ICPbQ-Q8eOiPiUjNa?dl=0

Please note user manual link for ProStocks Pro Mobile Application :

https://www.dropbox.com/sh/thrchd8md945gjl/AAArDMl8uNXcBbaxUPHltSFRa?dl=0

ProStocks I-Trade Web Application Beta Login Link :

https://protrade.prostocks.com/

Forget password link for first time login :

https://protrade.prostocks.com/forgotpassword/forgotpassword.aspx

Please do call on 022 62 43 43 43 and press 3 for Tech Support in case of any difficulty.

Feature enhancement in ProStocks Pro Mobile Trading Application for Android and IOS over existing ProStocks Mobile Trading Application.

Yes.

Your investment in India through the Stock Market is governed by the following regulation:

1. Foreign Exchange Management Act (FEMA) supervised by RBI
2. Income Tax Act, 1961 supervised by Income Tax Department, Govt. of India
3. SEBI regulation for Exchanges, Stock Broker and Depository

You can invest on Repatriable Basis (NRE) or Non-Repatriable Basis (NRO) or both.

When you open NRE PIS Bank Account: Your Bank provided you with the following THREE services besides usual banking Services:

1. Applying to RBI and taking PIS (Portfolio Investment Scheme) permission. This is a one-time activity. This is a requirement under FEMA.
2. Reporting all your transaction routed through PIS Bank Account to RBI on a regular basis. This is a requirement under FEMA.
3. Calculating, Deducting and Depositing you tax liability arising out of shares sold through PIS Trading Account and proceeds credited to PIS Bank Account. This is required due to Section 195 of the Indian Income Act,1961.

FEMA has been amended in Feb 2016, and NRI investing through Non-Repatriable Basis (NRO) route are not required to take PIS permission and hence no requirement of reporting transaction to RBI.

In a nutshell, Service Number 1 and 2 mentioned hereinabove are no longer required for NRO Account. However, Service Number 3 is still applicable.

Banks are willing to provide Service Number 3 as mentioned hereinabove for NRO Account BUT at the same taking charges which they are taking for NRE PIS Account. In such case, your Banker will open your normal NRO Saving Bank Account, will insert Dummy PIS permission Number, so their software will behave as if this is PIS account and will rename this as NRO Investment Account and will provide you Tax Deduction Service.

ProStocks is now bring to you NON PIS NRO Trading Account.

ProStocks will do compliance of Section 195 of Indian Income Tax Act, 1965 for a fixed fee of Rs 1k p.a (waived for account opened before 1st February, 2021) and you would be able to trade in equity segment just like Resident Indian. No Custody Account, No hassle of dealing with Custodian or PIS Banker besides Stock Broker. No PIS Bank Account required.

What are the documents required for opening an NRO Account?

Following are the document required for opening NRO Trading and Demat account:

1. Attested copy of PAN card,
2. Attested copy of overseas address proof – Copy of Driving License/Foreign Passport/Utility Bills/Bank Statement (not older than 2 months)/Notarized copy of rent agreement/Leave & License agreement/ Sale Deed. NRI residing in Gulf countries and not having any of the above overseas address proof can give Declaration of P.O. Box in your residing country,
3. Self-certified copy of Indian address proof, if any. Providing Indian address in KYC is voluntary. You may provide for your own benefit.
4. Passport size photograph
5. In case of an Indian Passport: Attested copy of valid passport with copy of Valid Visa
6. In the case of Foreign Passport: Attested copy of valid passport, Copy of PIO/OCI card.
7. Proof of Bank account (a cancelled cheque leaf of your NRO savings bank account)

Note 1 : Copy of PAN card, Passport, Power of Attorney and Foreign address proof are required to be attested. Attestation can be done by the Indian Embassy or any other competent authority like Consulate General or Notary Public or Overseas Banker or Indian Banker. The attesting authority should affix a “verified with original” stamp, name, designation, signature and date on the said documents.

Note 2 : Attestation is not required when your KRA status and IPV status is Y (Yes) and no change is required from your previous KRA. For checking your KRA status go to KYC inquiry menu on www.cvlkra.com

Can I convert my existing NRO Trading and Demat Account linked to NRO PIS Bank Account to Non-PIS NRO Trading Account?

Yes

Just send email to [email protected] to convert their NRO Trading and Demat Account to NON PIS Account.

You will trade like Indian Resident Account. Yes exactly like Resident Indian except two exception:

1. Your account is subject to withholding tax
2. You cannot do intra-day trades in equity segment.

You will add funds in your trading account just like resident Indian account and also withdraw funds. Funds withdrawal may take processing time of one working day to calculate withholding tax. You can add Equity Futures and Options also in same Trading Account by filling one pager Segment Activation Form and one pager Custodial Participant (CP) Code Application Form

NRO Account for Equity Delivery Trades :

ProStocks will map NRO Saving Bank Account with your NRO Trading Account. You can have many NRO Saving Bank Account with same Bank or many Banks and all can be mapped to your Trading Account for transferring funds to ProStocks. You can have NRO Savings bank Account in any Bank of your choice and there are no restrictions on the number of Bank-supported. You will operate your NRO Saving Bank Account for equity trades like Resident Indian. You can transfer funds to us any time, you can withdraw your funds from ProStocks any time with just one exception, compliance of Section 195 of the Indian Income Tax Act, 1965 with regard to withholding tax (TDS).

You will also need to open NRO Saving Bank Account. You no longer required to open NRO Invest Account (similar account was earlier called NRO PIS Bank Account). ProStocks can assist you in opening your Bank Account. No PIS Bank Account required.

The dividend will be credited to your NRO Savings Bank Account ( Primary Bank Account, in case of more than one Bank Account) by the respective companies whose shares are held in your NRO Demat account on the record date for dividend.

You need to transfer funds from your NRO Savings Bank Account before buying. Once you buy, ProStocks will send you contract note same day and credit shares to your Demat Account on securities payout day. Generally you are expected to sell after shares credited to your Demat Account and not before. You can buy shares next day against credit to be received in your trading account on funds payout day of previous day's sale minus withholding tax liability, if any.

Similarly, when you sell the shares, ProStocks will send you contract note same day and credit your Trading Account with us on funds payout day. You can buy shares next day against credit to be received in your trading account on funds payout day of previous day's sale, minus withholding tax liability, if any. RBI reporting is not required for NRO Account after February 2016 but compliance of Section 195 of the Indian Income Tax Act, 1965 with regard to withholding tax (TDS) is required.

ProStocks will do compliance of Section 195 of Indian Income Tax Act, 1965 for a fixed fee of Rs 1k p.a (waived for account opened before 1st February, 2021) and you would be able to trade in equity segment just like Resident Indian. No Custody Account, No hassle of dealing with Custodian or PIS Banker besides Stock Broker. No PIS Bank Account required.

NRO Account for Equity Futures and Options (Derivatives) Trades

You will need to open NRO Saving Bank Account. ProStocks can assist you in opening your Bank Account.

ProStocks will map NRO Saving Bank Account with your NRO Trading Account. You can have many NRO Saving Bank Account with same Bank or many Banks and all can be mapped to your Trading Account for transferring funds to ProStocks. You can have NRO Savings bank Account in any Bank of your choice and there are no restrictions on the number of Bank-supported. You will operate your NRO Saving Bank Account for equity derivatives trades like Resident Indian. You can transfer funds to us any time, you can withdraw your funds from ProStocks any time with just one exception, compliance of Section 195 of the Indian Income Tax Act, 1965 with regard to withholding tax (TDS).

ProStocks will do compliance of Section 195 of Indian Income Tax Act, 1965 for a fixed fee of Rs 1k p.a (waived for account opened before 1st February, 2021) and you would be able to trade in equity futures and options just like Resident Indian. No Custody Account, No hassle of dealing with Custodian besides Stock Broker.

You are no longer required to open custody or custodial account with ISSL or anyone when you do equity derivatives trades through ProStocks. Since you are not required to open Custody Account, you will save a significant amount, which was otherwise, you were required to pay to Custodian. ProStocks will take your CP code from the exchange which will allow you to trade equity derivatives at NSE as well as BSE.

WhatsApp support for NRI. Send opt in request using this link

SP Toshniwal

B50,  B Wing, 3rd Floor ,Pravasi Estate Goregaon Mulund Link Road

Goregaon East Mumbai 400063  +91-22-62 43 43 43 www.prostocks.com