Margin penalty Expiry option selling

Ive noticed that during expiry of we use an extra leg to avail margin benefit and if we square off the extra leg immediately, then although the applicable margin is higher than available funds we are able to hold position and in intraday.

I just want to know for intrday if we do so , will we be charged any penalty. I haven’t got any penalty in this case. However, as per peak margin rules I should be crossing peak margin against my available funds once I square the other leg which I added to avail margin benefit. However, Im not charged penalty. I want to know if anyone has any clear idea on this.

Note: I squared off position the otm option and didn’t leave as is.

Can anyone please confirm if peak margin penalty is applicable in this case.

I don’t think there would be a penalty, but this would flag to risk management system. My cousin did this with upstox and they have permanently banned from executing MIS order after repeating it for 2-3 times.

We are still allowed to use 4x of our capital till 28th feb under peak margin, unless the margin used is more than 4x your capital, you’re safe.