NSE Circular on Short margin penalty refund

[amitvbn]

@paekut I think you and I are facing the same issue here, but Zerodha is least interested in solving and understanding these issues to the core. I have raised several tickets regarding the same issue, but mostly I get some weird, unrelated and irresponsible replies.
When I escalate these issues to @nithin by writing an email, a ticket gets created and later marked duplicate without providing any solution.
I wish and hope this message reaches @nithin or someone who can understand this issue.

[nithin]

Change in margin update time

Every day, Margin get updated around 5:30 pm, which triggers a provisional margin shortfall email and results in a provisional margin shortfall. If this margin is updated before the market closes, it will give me the chance to update or square off my positions accordingly. I also observe that if, during trading hours, my margin becomes negative by even Rs 1, Zerodha will send an email with a provisional 5% penalty. Sometimes I get an email even if my margin is always positive during the trading…

[VenuMadhav]

@amitvbn

facing the same issue her

We verified the details on your account. The provisional shortfalls are basis the margins as per the EOD paramaters for your EOD positions. The EOD margins of T day in all likeliness will be the margins for T+1 day. This doesn’t show up on Kite because Kite shows margins for your positions based on BOD parameters. While you won’t get charged any penalty for T day, the email is meant to serve the purpose of ensuring our clients are informed of potential shortfalls of the following trading day giving them enough time to bring in funds. We will change the wordings in our emails accordingly indicating the same.

[Jyoti_P_Deshpande]

@amitvbn We’ve also responded to your ticket with the details related to your account, please have a look.

[deepkhanna]

I was recently charged the same penalty with an end-of-day margin requirement of zero. I am chasing the ticket with Zerodha.

[amitvbn]

I do not agree, as your email always asks to add funds by EOD, although positions can be adjusted the next morning, or funds can be added the next morning.

[amitvbn]

Please mention the ticket number?

[amitvbn]

@VenuMadhav There were two issues with margin-related mails.

1. The provision margin shortfall was having two categories, which you have probably recently shortened out by keeping two categories in the email. Keeping them in one bucket was quite wrong.
2. Another email that Zerodha was sending wrongly was the potential 5% penalty emails. I have checked these emails for the respective dates along with the margin statement for those respective dates, and found that there were no peak margin shortfalls on those dates. I am unsure if this issue has been resolved or not.

Another serious issue is that when I raise the same issue in the support ticket, we hardly get any proper replies, but Trading Q&A, I am getting some sensible responses.

[Jyoti_P_Deshpande]

Hello,

We will check the details and update you soon via ticket/call

[NEOXY_Gaming]

when this peak margin shortfall thing happens…peak margin penalty is charged to the client which is wrong because this is upfront margin penalty which is applicable on broker and not on client according to the exchange so broker can’t pass this penalty to the client…and if he is doing that then that is wrong

[Jyoti_P_Deshpande]

As per the NSE circular no. 64315, brokers are allowed to pass on upfront margin penalties to clients if the shortfall arises due to the following reasons attributable to the client:

I. Cheque issued by the client to the member is dishonoured.
II. Increase in margin requirements due to a change in the client’s hedge position or expiry of one or more legs of the hedge.

You can find more information about margin penalties in this article.