Execute Iron Condor with a negative balance but a large margin available

To execute an iron Iron Condor, is it possible with a negative balance? As this strategy results in a net credit anyway? I.e., I have a balance of -1.3L (negative). But my margin is 20L (Margin is obtained by pledging stocks). Can I still execute an iron condor as it results in a net credit anyway?

For overnight F&O positions, it is exchange requirment at least 50% of margins should come in cash and other 50% in collateral.

If you don’t have enough cash, your account will be in debit balance and there will be a delayed payment (interest) charges, charge of 0.05% per day applicable to the debit amount. Read more about delayed payment (interest) charges here.

So, if you take positions that require a margin of Rs 1 lakh, you will need at least Rs 50,000 in cash irrespective of how much collateral margin you have. Assuming you don’t have this Rs 50,000, whatever you are short by will be the debit balance for the day, and delayed payment (interest) charges will be applicable for that amount.

@ShubhS9 Hi Shubh, as per zerodha guidelines on calculating margins and charges, I am not able to reconcile with the interest charged to me. Raised a ticker 10 days ago with your support team and called them twice but so far no luck as support team told me that they are not equipped with technical knowledge behind the maths of calculating margins and charges.
I wanted to understand the process better so that i can incorporate right strategies next time (as these charges also become part of your PnL). Can you please ask someone from the Accounting/technical team to get in touch with me and explain me the process?
ticket no 20201002523503