NSE Circular: Updated margin penalty guidelines

[abhiwin123]

@Sanjukumar.K

It will not be applied to cases other than the ones mentioned in the circular.

Ok. That’s reassuring.

@SachinSingh

I sometimes receive post-market Peak Margin shortfall emails, even though there’s no hedge involved for my positions. I was told that it wouldn’t be passed on to the client.

Yeah. I think the main issue with the earlier “Peak Margin Shortfall Penalty” was that during market hours SPAN file was not updated which essentially allowed a client to go overboard on intraday basis. So as a client one was not having a perfect view of the margin requirements (because they saw margin available and in +ve under Funds) and then they used to get surprised at end of the day knowing that PEAK margin penalty was applied at a random time when you were a breach.

So now with upfront margin penalties being passed on to clients, my question is -

1. When is this shortfall checked - 5 times randomly on intraday basis or on next BoD basis?
2. Also, I think SPAN still has a role to play. How will you determine if the shortfall is because of breaking of hedge or due to increase in SPAN margin. Just for knowledge, is Zerodha updating SPAN 5 times a day or only at end of the day?

@VenuMadhav