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.
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 @VenuMadhav in the below post.
Is this still valid ? or now that Zerodha do early pay in to T day itself - credit received from sold demat holding is considered settled/unencumbered credit and that is added when reported to exchange for available margin ? @siva@Bhuvan@Nakul@nithin
Nakul or myself will reply you in sometime, even weekends is off for us, also you have tagged us in multiple threads for somewhat related queries, give us also sometime to get back. Also don’t tag Nithin for general queries, you can tag him if you don’t get any response from us or you think if he only can answer.
I already raised the ticket but its not a surprise - its waste of time and energy.
I am asking a general question - its not account specific.
80% Proceeds from sold shares is added to available cash margin that you send at the end of the day(well it comes next day morning) ? Or funds from that sold holding is not reported for margin purpose to exchange until T+2 (when it becomes freely available to withdraw - i.e. unencumbered) @Nakul@VenuMadhav@siva
@curiousvi I was also in the same dilemma few months back. It seems that they do early payin to clients given the fact they debit the shares early from your demat and send it to exchange due to which exchange knows that you have that much worth of shares in your demat and penalty is not charged. It is a similar kind of procedure like you do for pledging of shares. Just the case here is zerodha sends it to exchanges on Tth day itself and marking exchanges that client should get that much margin since the shares are with you. Also you can’t withdraw that 80% amount until T+2 day which is the settlement. In pledge margin the same thing happens, you get the margin to trade fno but can’t withdraw that.
I understand we can not withdraw but when they do early payin - 80% credit should be added to margin statement on the T day (same day) and 20% on T+1 day …if so our margin statement will have higher available cash margin in the daily margin statement which may avoid negative balance.
If they don’t than only on T+2 when actually proceeds become withdrawable than only they will add to available cash margin in daily margin statement?
Please refer to your link and check @Nakul said early payin does not work sometimes
Dude I mentioned to them but it seems not many clients are asking this due to which they left the task of showing the correct margin.
Their support ticket is just waste of time. I didn’t put much efforts since then but stopped equity transactions on zerodha altogether.
I have also cut down my fno trades to 50% since then. I would have shifted to other brokers but, keeping in mind the brokers could default I sticked to zerodha.
First one says unless its fully realized on t+2 - you can not use margin from sold shares / 2nd link says you can use up it as collateral after haircut and 3rd link says you can use it after 20% deduction from sold value
My concern is if they don’t report correct available margin in the margin statement - clients are subject to margin penalty from exchange. @siva