How much penalty is levied if Span margin is not maintained by Client when he holds F&O position?
Penalty levied in case of shortfall in Span Margin for F&O positions:
|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%|
Check the link http://www.nseindia.com/products/content/derivatives/equities/penalties.htm
So does this mean, if my broker squares off my position if my account balance is less than span margin, I incur a huge loss as well as this additional penalty 0.5% to 1% which is exchange levied?
Hope that penalty is only on the shortage amount, not the turnover. Is it so?
Penalty is only on the shortage amount as u said, not on the turnover.