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

No clients are not penalized since they show correct margin to exchanges which means the report they give to clients has some outdated data but the clients funds and securities are correctly mentioned.
They seem to have some vague policy which they don’t want to let other clients know. I hope someday they would feel the importance of it.
Your question should have been that how the client would know if there is margin penalty if it is not a correct margin. Zerodha can anyday charge any penalty if the margin statement is not correct.

So you mean even if its margin statement shows negative balance INCORRECTLY - exchange will not charge penalty but zerodha will charge interest penalty if cash margin is less than 50%?

You can read my post. I have shown to them 9 lacs of marging negative which was due to the sold shares but I wasn’t charged any penalty. Their customer support people are dumb as bots. Bots even given some kind of satisfactory reply but if a person is just repeating what is written on the website then its just senseless to have them. I didn’t try to contact them after that incident.

1 Like

May be that post is different from what you mentioned but I had posted plethora of posts hovering around these issues but they seem to ignore. I also don’t have time to guide the dumb customer people that this issue is arising. The customer support people are mostly having no knowledge of how fno trades and margin works. A school student could give better answers them.

1 Like

If stocks are sold from holdings and debited from client’s demat account after which EPI is done successfully, then upto 80% of the sale proceeds are available for margin reporting on T day. Will check the margin statement and get it fixed, if it’s not reflecting the sale credit. To be able to withdraw funds, you will have to wait till T+2 since the credit from the Exchange comes only on T+2.

Will also get our team to update the support article, it hasn’t been updated after the change in rules. Thanks for bringing this to our notice. @mohitmehra

1 Like

Well, latest daily margin statement does not show 80% sale proceeds because of which margin statement has negative margin statement - my concern is margin statement you send to clients is the same margin you report to exchange ? That means I will have margin penalty from exchange? Or exchange has its own mechanism to check client’s margins?

I think your margin statement does now show margin credit from sale proceeds until T+2 - my observation is …it does not show 80% credit on T day, neither it shows remaining 20% credit on T+1 day. @mohitmehra @siva @VenuMadhav

1 Like

As I’ve said earlier, if the stock is sold from demat, debited and EPI is done, 80% of the sale value will be considered towards margins reporting. Will review the values being shown on the MS.

1 Like

I believe EPI is done by Zerodha on T day by default (automatic by system) - is there any way a client can check if EPI is done for this sold stocks on T day? if yes where can a client check? …is it possible that in some cases EPI is not done by Zerodha either due to your system failure or something similar ?

It will be done if shares are present in demat.

It can be possible but luckily it didn’t happen in last 5 months.

You are accursing me that I am repeating my question …
When I raised a support ticket about why 80% of sold shares - is not added to available cash margin.

This is the response I got from your team member -

“As per the query, when you sell the shares 80% of the sell value will not add to the statement as it will not be considered for the margin without completing the settlement cycle”

So within Zerodha itself one person say something and other say something totally opposite.
Whom should I believe ? You and @VenuMadhav ?

Since he is listed as compliance officer so he is taking responsibility of his words? @VenuMadhav @siva

Please dm me the ticket number.

I bought and sold nifty futures multiple times for small spread (scalping) and squared off positions in the end.I initiated another position only if earlier position was squared off.I have margins for one lot only. Will I have margin shortfall because of such a high number of trades. Please clarify. @siva

You can use the margin you have for multiple trades in a day. There won’t be any margin penalty.