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How do you calculate shortfall margin penalty?
If the overnight margin is less than 1 lakh and the margin shortfall is less than 10\% of applicable margin then, 0.5\% of penalty is levied and in case if the margin exceeds 1 lakh or the margin shortfall exceeds 10\% of applicable margin then, 1\% margin is levied on the margin shortfall.
What is margin shortfall penalty?
As per SEBI regulations, margin shortfall penalty is levied on trades performed without sufficient margin (SPAN & Exposure for F&O and VAR+ELM+Adhoc for equity), net buy premium, physical delivery margins and marked to market losses (if applicable) as prescribed by the exchange.
How much is the peak margin penalty?
The penalty in case of margin shortfall penalty structure has two slabs:
| Short collection for each client | Penalty percentage |
|---|---|
| (< Rs 1 lakh) And (< 10\% of applicable margin) | 0.5\% |
| (=> Rs 1 lakh) Or (= >10\% of applicable margin) | 1.0\% |
What is shortfall amount in stock market?
In trading terms, an implementation shortfall is the difference between the prevailing price or value when a buy or sell decision is made with regard to a security and the final execution price or value after taking into consideration all commissions, fees, and taxes.
What is Zerodha peak margin penalty?
So, if you exit your holdings and buyback the sold holdings on the same day, or if you had used the proceeds of the holdings sold to take another intraday trade, there could be a peak margin penalty on the intraday trade if you didn’t have sufficient funds available other than the credit from selling your holdings.
How is margin penalty calculated?
If short/non-collection of margins for a client takes place for more than 5 days in a month, then penalty of 5\% of the shortfall amount shall be levied for each day, during the month, beyond the 5th day of shortfall.
Who will pay peak margin penalty?
Who is liable to pay the penalty on the peak margin shortfall? The broker is liable for both reporting the shortfall in collection of peak margin and pay penalty on such shortfall. The penalty is in the range of 0.5\% to 5\% of the shortfall amount on a daily basis.
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