The Exchange has prescribed an intra-day trading limit of 33.33 times of the base minimum and additional capital deposited by the members with the Exchange on their gross turnover (i.e., gross purchases + gross sales). Also the members gross exposure, i.e., scripwise outstanding cumulative net purchases + net sales in the current settlement and deliverable and receivable obligations of the previous settlement is restricted to 20 times of the base minimum capital and additional capital deposited by the members with the Exchange. The institutional business, i.e., transactions done on behalf of scheduled commercial banks, Indian Financial Institutions, Foreign Institutional Investors and Mutual Funds registered with SEBI is not included for purposes of watching the compliance of the members with the intra-day trading limit and gross exposure limit.

The Exchange has made modifications in the BOLT software to flash on-line warning messages to the members once they reach 70%, 80% and 90% of their respective intra-day trading limits and gross exposure limits. However, when a member crosses 100% of the intra-day trading limit or gross exposure limit a message is flashed on the BOLT TWSs which says "CAPITAL ADEQUACY LIMIT VIOLATED" or "GROSS EXPOSURE LIMIT VIOLATED" respectively and immediately all the BOLT TWSs of the member get de-activated. Although the system gets de-activated, the value of last order executed may still exceed the 100% limit of capital adequacy or gross exposure limit. Therefore, the Exchange calls for additional capital from the members who exceed the intra-day trading limit or gross exposure limit. A fine of Rs.5,000/- is also recovered for violation of intra-day trading limit or gross exposure limit if a member does not deposit the additional capital to cover his trading in excess of his intra-day trading limit/gross exposure limit on the day of the violation.

Source: The Stock Exchange, Mumbai