When the prices of securities start to fall, the value of client collateral also decreases

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For many individual investors, holding onto their securities for a long time is doable thing even if they lose their value.

But as the value of stocks declines, these securities held as collateral margin by the clearing corporation or the stockbroker loses its worth too.

Does this situation create extra work and heat things up at the stockbroker’s office, or is everything run automatically for streamlined operations, making it just another day at the office?

@PravinJ I’m quite curious about how your team functions at the RMS desk during these times. Does the amount of work go up? Do relationships with clients become tense?

I think this could lead to some engaging content. Thank you!

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RMS Teams go by the stated Risk Management Policy, and they cannot deviate beyond it.

We are more of an tech platform than a broker, and we not just provided cutting edge tech to our users but also use a lot of that internally. So yes, many RMS tasks at Dhan are also fully automated, which RMS teams have oversight on all of them.

For traditional brokers or for that matter many others, the situation may be different than us.

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Thanks.