Cash component (pledged margin) be use for Margin shortfall?

[ShubhS9]

@Michael_Burry

What about PEAK margin penalty (or whatever its particular name is) ; impose by exchanges after i took entry. (suppose the volatility increases massively and there was no MTM loss settlement margin issue but the initial margin requirement issue imposed by the exchanges ) could that margin penalty be paid off by my extra pledged funds? and as brokers are responsible before entry of client, this margin increase has happened after the client got into the trade so he is liable of the margin penalty, thus for that penalty can the client use the cash component pledged funds?

If the margin increases after you take the trade, in that scenario, the penalty is applicable on the broker, not the client. Explained in detail here: NSE Circular on Short margin penalty refund - #26 by nithin