We will get penalty files from exchange on T+5 days and then so we post them.
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One will get alert if there is any over utilisation, one can create ticket to know when this has happened.
Brokers will have quarterly/half yearly/yearly audits, and all our books are checked, if any of wrong instance is noticed brokers may face severe repercussions, so I believe any broker with rational mind wonât try to game the system.
Came across this article of 2018 on the net wherein SEBI is planning for uniform leverage across brokeing houses. Is the circular a way towards that scheme??
Well it is a tradition among Indian babus in general. They will sleep when any idiot can see sparks everywhere and rather than policing those âsparksâ, they will impose a blanket ban. Problem solved!
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Hi @ShubhS9
Zerodha blocks some extra margin on last 2 days of expiry. Since it is done by zerodha rms only and is not an exchange needed margin. Would i still need to pay penalty if shortfall happens due to your rms.
Another question
Letâs say I had cnc positions during the trading time and somehow due to volatility the margin goes up by 5-10% and my balance becomes negative.
Would I be charged penalty considering the fact that mis requires less margin and the snapshot taken by exchange does not capture if it is an MIS order or cnc.
This block is only for 1 day on ledger ie wednesday evening, no penalty but interest will be charged on shortfall for that day, RMS can close position on wednesday or on thursday.
CNC should be ok right?
Btw I donât do mis in equity or fno but just wanted to know like if I have position in cnc and fno both and margin becomes negative in account.
Would I be imposed penalty?
Since I can anytime make it mis and margin would again become positive due to it.
By cnc I mean to say that I bought stocks today in cnc
I hope you got the query
If you are buying equity in cnc you will be paying 100% cash upfront right, so what is the doubt here?
Or you mean futures in nrml?
Yeah you can think of like futures nrml position. Since margin in intraday fell in negative would I be paying penalty considering the fact that I can convert the position to mis.
Sincd mis margins are low so would I be paying penalty even if I had positions in nrml in intraday if exchange took snapshot.
Sorry, I didnât understood, can you please give with example.
Lets say I have below 1 position currently.
Lets say total margin available currently after taking this trade is 50 rupees only.
Now due to some volatility at 11:00 Am the margin required for nrml position increases and my margin available becomes -5000
Would I be charged margin penalty if Exchange took snapshot at 11:00 Am given the fact If I will convert this nrml to mis the margin available will become positive since we know in intraday fno leverage is 2 times I guess. So, required margin will decrease from 1 lacs to 50k only and my margin available will become 50k.
I mean to say even if I do not convert my position to mis exchange would only think that it is position in intraday and would calculate the margin available as per 4 times margin and exchange would never be able to know that I had negative balance because of nrml position only.
Brief example
No positions currently
Margin Available 100000
10:30 Am
Position sold 1 call
Margin used 100000
Margin available 0
11:00 Am (volatility)
Position 1 short call
Margin used 105000 ( increased by exchange)
Margin available -5000
11:15 Am
Snapshot by exchange
11:20 Am
I converted to mis
Margin used 55000
Margin available 45000
Will I be imposed penalty given Exchange took snapshot but did not know that if I had it in mis or nrml
For now it is okay as only 25% of total is required, from sep1st 2021 as 100% is asked for both nrml and mis this maybe issue then, maybe we wait if we can get anymore clarification in coming days.
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@siva can we still to BTST on stocks as I generally see a debit shares message on the same day whereas credit of shares is done on T+2?
You can do if the stock doesnât fall under trade to trade segment.
Hi @nithin⌠the entire trading community is looking towards you with hopesâŚbeing the biggest broker, you should resist the circular as it is clearly ironic & will result in loss of opportunities for allâŚ
Why not Zerodha moving to Court âŚwhile brokers like Wisdom Capital fighting firmly against the same?
The impact would be completely different if Zerodha lead the fight from the frontâŚ
They are not a broker by themselves, they are AP of other broker.
We have done what we could itâs just that it is not in public domain.
At least as per my knowledge nothing can be done now, this is done, one has to live with it.
noâŚyou have to be constructive for it⌠you should appreciate somebodyâs efforts who is fighting for everybodyâs welfare & collective interest.
All is still not lost brother.
@siva, On expiry day, if I donât square off short out-of-money options and let them expire worthless, does Zerodha consider them as overnight f&o positions and require me to have 50% margin in the form of cash/liquid funds?
Nope.