How much is the short margin penalty charged by NSE for derivative positions?


I understand from this post that from June 1st I will be charged a penalty if I don’t have requisite SPAN and Exposure margin in my trading account.

Earlier the penalty was applicable only if money in my account was lesser than the SPAN margin required. Can someone explain how much exactly is the penalty?

How does the latest SEBI circular about margin requirements affect me?

From this page on NSE. Penalty is on the money you are short by.

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%

If short/non-collection of margins for a client continues for more than 3 consecutive days, then penalty of 5% of the shortfall amount shall be levied for each day of continued shortfall beyond the 3rd day of shortfall.

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.

Notwithstanding the above, if short collection of margin from clients is caused due to movement of 3% or more in the Nifty 50 (close to close) on a given day, (day T), then, the penalty for short collection shall be imposed only if the shortfall continues to T+2 day.

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If my ledger shows negative balance on Friday so will I be charged margin penalty of one day only or of three days including Saturday and Sunday . @siva , also does margin is charged on the amount of negative balance shown in ledger or something else.




@Prakhar_Agrawal margin penalty is levied on overnight positions in case your unencumbered or free balance is not sufficient to fulfill the total margin requirement (SPAN +Exposure). It is not necessary that the penalty is charged only when you have a debit balance in your ledger, as it includes unsettled credits as well (For eg: the credit from the sale of equity shows up on the T day itself whereas the funds actually hit your trading account on T+2). You may go through this support article to know more. A comprehensive explanation is provided by @VM1 in the below post.

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Okay thank you.
One more query is I am short of margin on friday and cover it on Monday will I be charged or penalty for only one day or three days including Saturday and Sunday.


Saturday and Sunday isn’t considered. Margin penalty is charged for a day only, excluding the holidays.

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