Already have an account? Get multiple benefits of using own account!
Login in your account..!
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Nifty index futures and option contracts are cash settled. All CMs are required to open a separate bank account with NSCCL designated clearing banks.
The open positions in the index futures contracts are marked-to-market at the settlement price of the contract at the end of each trading day. The members who have a loss position should pay the loss amount to NSCCL which is then transferred to the members who have made profits. This is known as daily mark-to-market settlement. The daily settlement price of the Nifty index futures contract is the closing price of the index futures contract which is computed by taking the weighted average of the prices of the daily settlement price. The mark-to-market losses and profits are directly debited and credited to the CM's and clearing bank account respectively.
On the expiry of the futures contract, NSCCL marks the open position of a clearing member to the final settlement price and the resulting profit or loss is settled in cash. The final settlement price is the closing value of the index price on the expiration day of the relevant index futures contract. The final settlement profit is the difference between the last mark-to-market price and the final settlement price of the corresponding index futures contract. Final settlement loss or profit is debited or credited to the relevant CM's bank account on the next day to the expiry day.
As the price of the futures contract changes, gains or losses accrue to the holder of the contract. The gains or losses are credited or debited to the margin account. If the price movements are adverse, the balance in the account falls. In these circumstances, the trader is required to replenish the margin, bringing it on par with the initial value whenever the level or value of funds on deposit with the broker reach a certain level. This level is referred to as the Maintenance Margin. The additional amount, which the trader deposits with the brokerage firm, is called the "Variation Margin".
Breaks in Specific Cost of Capital: The specific costs of capital may also be affected by the amount of finance the firm wants to raise. As the amount of financing increases, the
What is the rational for having different types of security
Estimating the market value of a share The dividend expansion model suggests a method whereby share values can be estimated from information on the required return on equity an
Reforms and Outlook Pension funds in India is an area that is yet to be fully explored compared to those of other economies of the world. The pension reforms are expected to fa
Q. Illustrate the method of appraising capital investments? One of the potency of internal rate of return (IRR) as a method of appraising capital investments is that it is a di
Financial Repor ting The process of preparing the corporation's financial statements in accordance with generally accepted accounting principles. The statements prepare
1. Allocate resources to different departments by taking information from previous financial data. 2. What would be the estimated cost of new allotted resources to be included i
Q. Explain Marginal cost of capital? The calculation of cost of capital focused when the firms total financing and its paten of financing is given and remains constant. However
Question 1 Insurance is protection against possible financial loss. Explain life insurance in detail Question 2 Mutual funds are a composite of stocks, bonds, and securities,
The authority and duties of members (shareholders) Members and shareholders shall together and severally protect, conserve and actively exercise the supreme authority of the co
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd