Voluntary Close out Facility

The Voluntary Close out facility enables members to voluntarily define a margin limit beyond which all the orders would get risk managed thereby preventing him from getting disabled by virtue of execution of such orders. 

Members desirous of availing the facility shall define a margin utilization limit in NCMS i.e., a Upper limit to move into Voluntary Close out mode and a Lower limit to move out of Voluntary Close out mode. 

In the Voluntary Close out mode members are permitted to create fresh positions and also close out the existing positions. All orders received in the Voluntary Close out mode are validated at the applicable margins for sufficiency of available capital prior to acceptance of the orders.

In Voluntary Close out mode for margin the following shall apply:

• In case of Clearing Member all Trading Members under such Clearing Member shall also move in the Voluntary Close out Mode
• All outstanding orders shall get cancelled
• Members shall be permitted to create fresh positions and also close out the existing positions
• Incoming orders shall be risk managed for sufficiency of margins
• Members shall not be allowed to place orders with custodial participant code
• Clearing members will not be allowed to Approve/Reject trades.
• Trade modification shall not be permitted
• Member shall be allowed to modify the lower limit.