Today the regulator has set a rule that there will be a margin penalty if customers’ margin utilization goes above 100%. Until August we had taken a stance that this penalty can be passed to the customer, so we will let the customer decide. But we had to revert the stance once the NSE circulars were out. So if we don’t square off the position, the penalty is on the broker to pay now. So unlike before when we would make exceptions based on the customer history, today there is no such option. If we make an exception, the penalty is on us.
We charge only Rs 20 additional if any order is placed in FO when margins are negative or account in debit. These additional call and trade charges are when our risk management team manually squares off orders. Like I said earlier, we expect customers to take action on the positions and ideally, we would not want to interfere in anything. Involving our RMS team to manually track positions and square off positions is an additional effort, which we don’t want to be doing.