Margin Penalties

F&O
1

Suppose, at start of trade on 17th Oct 2019 I had Rs. 143000 fund balance and margin requirement at start of trade was 1,40,000 to buy 2 lots of Yes bank. I bought 2 lots in NRML and decided to carry forward. Stock price increased by 7 rupees from my buying price till close of trade giving me MTM profit of Rs. 30,800.

Due to increase in price at the end of day margin requirement was increased to say 1,65,000. So now for 18th Oct 2019 new margin is applicable. In such a case it seems that at EOD even though I have 143000 + 30800 = 173800 I get into margin shortfall scenario of the 165000 - 143000 = 22000 whereas the margin increased due to increase in price where I also have MTM profit. In such a case based on Margin Statement a shortfall of 22000 is shown. As I understand in such a case there should not be any penalty for 17th Oct, is this correct understanding?

2

No, your margin after updating MTM is used for such calculation. So, you will have excess fund of 173800-165000 = 8800. If you like you can place withdrawal request for it by 18th even provided you don’t suffer losses on that day

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3

I have a broker Tradebulls other than Zerodha. Tradebulls operators are not agreeing to this and constantly levying penalties. Even when I am making MTM profits I am paying penalties which seems ridiculous to me. What should I do as broker is not agreeing to this? From where can I get some authoritative information to share with broker? How can I complain to authorities about it?

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