Margin Turned Negative after 4PM. Will It cause a Short Margin Penalty?

I had sufficient margins in my account till 3.30, But suddenly around 4.15 PM, it turned negative.

Would like to know why this happened and if this will result in a short margin penalty?
@siva

NSE updates span 6 times a day, before 3.30 margins are blocked based on 2.30 span file but around 4 we update new span file and hence margins can change. If there is some movement in the last hour then there are chances one can notice differences in margins after latest file update, EOD process will happen with different span file. Hence it is recommended to always maintain 10% in free cash to avoid penalties.
BTW you can transfer the difference now ie before 11 pm, today, to avoid any margin penalty.

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Thanks @siva
Just to clarify, could there still be a peak margin penalty, even if I transfer the funds before 11 PM?

Till 3.30 if you have sufficient funds then no peak penalty.

Is there a SPAN update in the morning too, before market opens? @siva

I added funds last evening to make the margins positive in my account. But, around 8 in the morning today, the margins again turned negative.

As mentioned they change 6 times a day, hence recommend to maintain 10% in free cash.

Could you let me know when the first of these 6 SPAN updates happen?

If the margins turn negative in the morning before market open, would it be okay to transfer funds into the account during pre-market to avoid margin penalties?

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@siva let’s say I have sufficient margin throughout the day, and after 3:30 pm as well. However, the next day early morning at 8 am, the margin shows negative (an example of this can happen on the last Thursday of the month, due to increased margin requirements of ITM stock options).

If we infuse capital before pre-market, or sell the Stock option immediately at 9:16 am, do we still get margin penalty?

thanks in advance :slight_smile:

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No, there won’t be any margin penalty as long as the EOD margin requirement is funded before midnight.

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@siva @MohammedFaisal
Small doubt,
Say i had sufficient margin at the EOD and then margin got updated and the required margin turned negative in the account,
So if i fund the margin before midnight no penalty and no delayed payment charges.
If i fund the required margin only by tomorrow morning before market opens what charges will I incur?

Hi @Gnome,

Yes, if you fund the required margin before the end of the day, there won’t be penalties or delayed payment charges for the debit balance.
If you fund the next morning, before the market opens, only delayed payment charges will apply. If you fund it post 9.15, there are chances of peak margin snapshot being captured and penalty on it.

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