How much penalty is levied if Span margin is not maintained by Client when he holds F&O position?

General
2

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 

8 Likes
3

@Anyone
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?

4

Penalty is only on the shortage amount as u said, not on the turnover.

5

Thanks Roopa!