NSE Circular on Short margin penalty refund

We will go through your trades once again and reach out to you via ticket.
Thank you!

Suppose dere will be 4 consecutive days provisional margin shortfall occur n den we add funds before 11.59 pm for 3 days
Can I be charge 1 percent or 5 percent panelty if I did not add funds in fourth day

1% provided the shortfall instances within the calendar month do not exceed 5 times.

Please note, since the provision shortfall email sent does not account for the end-of-day margins charged on open positions, please make sure to check the daily margin statement to ensure there is no shortfall in the EOD margins.

Hi @Jyoti_P_Deshpande @Meher_Smaran @VenuMadhav ,

It has been 16 days, since this post but have still not received any response except we are looking into it.
The query has been open for over 2 months. Can we please expedite the same.
The funds have been blocked for over 2 months, leading to an opportunity cost as well.
Repasting the ticket number for ease # 20241125814765

Hello,
We are getting this checked, Apologies for the delay. We’ll get back to you on this on a priority basis.

Just received this email today at 6:30 pm:

Now here are my questions:

  • Why do you guys let me create a position which exceeds provisional margin in the first place? Why didn’t the extra orders get rejected? This has happened three times this month.
  • Why can’t you send this email within market hours? I could have trimmed my position if you’d had done so. I am extra vigilant and trim positions as soon as margin goes negative. Could have handled this immediately as well.
  • I don’t have fund right now to add into the account. What will happen? [Please don’t give me what ‘could’ happen but what ‘will’ happen. Hope the query is clear.]
  • In the current month, this is the third instance. Why the email says that this is the fourth instance? Why the count is wrong?
  • Why should I suffer margin penalty [as your email says] if Zerodha is the one which let me create the position, did not tell me to trim the position at the right time, and does not listen to me when I tell them to smoothen the process? I would say this is the third time you guys have actually missed on margin counting and you should mention the same in your email instead of making your user a culprit. Don’t you think so?

@nithin I have repeatedly requested your team to sort out the visibility on margin front. Such instances should not arise in the first place if you are transparent about margin on the interface itself. It’s currently being handled in a highly unprofessional manner through intermittent emails and automated calls. This needs your urgent intervention.

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These are now available on sensibul, check here.
You can see the margin used by each underlying on Sensibull positions. You can also select positions to see the margin used by the sub-selection of positions.

We can get somewhat decent idea, getting this on kite will take some more time.

@siva the least you can do is be ‘proactive’ have these alerts sent/pop up during market hours. sending an email around 6:30PM is not being very customer friendly. We don’t have much option left at market close.

@siva see a pop up message on ELM. good job. thank you.

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@Jyoti_P_Deshpande @VenuMadhav @Meher_Smaran

Post the message got a call on 27th Jan and explained the issue. The person understood my points and agreed that they were looking at the issue incorrectly. He mentioned that he would share the call recording with @Jyoti_P_Deshpande.
While that call ended on a very positive note and I was hopeful that the issue would be resolved, but I’m again let down by the service from Zerodha. Its been over 10 days from the call and there was no follow up call or action on the ticket or any update.

The issue has now been open for over 2.5 months, this kind of service is absolutely unexpected from Zerodha. Can we please actually look to get this closed instead of just messaging here that we would look into urgency. The only urgency seems to be on replies here and not on action that needs to be happen.

@nithin Can you please help here, it seems like “Doing what’s right for the customer” is now not being followed in spirit by the support team. Can you please help.

Repasting the ticket number for ease # 20241125814765

This particular situation is tricky and the Team is continuously pursuing in the back end and just on this forum to ensure that an acceptable solution is reached. We understand that it is taking longer than expected. I’ll follow up once again with the team on this and give you an update.

We’re really Sorry for the delay, @Prateek_Malpani but please trust us, The Team is working on arriving at a solution.

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Thanks :slight_smile:

@Meher_Smaran trust is developed through proactive communication and by delivering what you say; not by harping ‘trust us’.

More so when even on this forum you either don’t reply or provide pathetic replies which don’t address the core issue. [like this one - NSE Circular on Short margin penalty refund - #293 by paekut ]

Not sure if the queries just remain unaddressed then what’s the use of this forum? Just supply Zerodha with beta testers? Probably just shut it down and hire a couple devs from the money you save.

I don’t have details of your account. So I’m sharing a generic response without having account level info

You have Rs.100. You take a position for which margin blocked = 37. You take another position which is a hedge, margin blocked = Rs.45. You use the remaining 55 and take another position. Total margin available = Rs.100, total margin blocked = Rs.100, all good.

You exit one leg of the hedged position; margin available = Rs.100; margins charged on the account = Rs.123.

In the current version of the RMS, we don’t do a post hedge break margin check and decide whether to allow exit of an existing position. Something we’re working on.

We send these emails basis margin numbers we receive from the exchange, which is a post market function.

You’ll be short on margins for which margin penalty is levied. Penalty may or may not be recovered depending on the situation.

Don’t have account details, if there’s a ticket number, dm. Will have someone check and revert.

Explained in answer 1.

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I received this email on the day of creating this position and not on the exit day. So clearly this is not the case of hedge break. This is another case which should be handled wherein you should reject orders due to which a position exceeding provisional margin is allowed to be created. You already reject orders based on other criteria then why not this.

I am sure predicting what the exchange will send in margin shortfall won’t be much of a big deal. You already use other such algos. You should figure out how to solve this and inform the user with a tentative amount of shortfall before market close, clearly displaying it on margin page / top announcement banner in Red.

As I specified in the above case, in case you are not informing the user during market hours, you should probably not send them this email and absorb the penalty (in any) as well. As there isn’t anything the user could have done but Zerodha can, why do you involve the user at all?

No there isn’t. This issue has actually started happening since Jan’25, while I am creating such positions since 1.5 to 2 years now. It’s totally evident that you have changed something at the backend this year due to which this issue started cropping up only in 2025.