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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
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@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?
Penalty is only on the shortage amount as u said, not on the turnover.
Thanks Roopa!