Section 4(4) in The Bihar Electricity Regulatory Commission (Licencing for Intra-State Trading in electricity) Regulations, 2007
(4)The capital adequacy shall be a dynamic function, which shall be based,(i)on the quantum of trade, which the trader is allowed by the Commission based on the business plan submitted by the trader;(ii)it shall correspond to the pool-rate of the power handled by the trader along with company expenses.(iii)trade risks on account of default in payment and change in price adjusted on six monthly basis by corresponding adjustments in the equity of the trader over and above the initial limit of capital adequacy fixed by the Commission.
