This is an article from Nov 2020.
Basis this bulletin it seems like the MIS margin has now changed to 52% instead of the earlier 50%.
Latest Intraday leverages - MIS & CO (zerodha.com)
Is there a specific reason behind the same (just so that we can better understand and plan)?
Also is this something that will stay at 52% till the next margin increase on 1st June or are we thinking to slowly increasing the same towards 75% before the next increase date of 1st Jun?
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It is always 52%, we added 2% as buffer because span can keep changing during the day, if someone has taken position before 11 as we update new span files at 11, 1 and 2.30 they can notice increase in span and to cover that we charge 52%.
It will remain 52% till june 1st and from then it will be 77% instead 75%.
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Makes sense. Thanks for the super quick response.
I wanted to know peak margin penalty. As I am calling zeroda call center no every time I am getting worst reply from call center people. No one is saying firmly how much peak margin penalty applicable and how it works. I really fed-up. I had bought 93 shares of BEML on 28/04/2021@ price of 1173 and I sold it today at price of 1193. I bought 45 shares of the HUL on 29/04/2021 at the price of 2419 and I sold at the.price of 2415. Meanwhile I saw the share price of BEML come down to 1162. I bought it again at end of the day. I just wanted to know how much peak margin penalty applicable for this trade. What is net profit or loss that I made from this trade. From where I can see the net profit or loss from Zeroda portal. As it is showing gross profit or loss which is fake not real. Please let me know . It will be more helpful. Otherwise I have to close the account. I humbly request you zeroda people to recruit.some good quality call center people. Whatever people are there I called are just waiting for revenue call. They are not ready.to entertain the there customer if they are not revenue maker for them.
You can create ticket and let me know ticket number.
@siva-reddy , this problem start surfacing again from last 2 days and I have created a ticket “20210504401895” for this.
Interestingly, the required margin for 36500 CE option sell was less than 37000 CE that cause the negative balance on account.
Please look into this.
There is no issue, the margin shown on window is after considering your positions, you can check on baskets if you want to know individual margins without considering existing positions.
Okie I can understand that piece ,but please can you also look into the issue mentioned in ticket#20210504401895 where the margin drop from 11.64 Lac (as per ledger details and margin statement calculated after market close) to -1.3 Lac at 8:06 AM in the morning when market is closed.
Do any other exchanges in the world have a similar restriction on margins? Or is SEBI treading new grounds with this move?
Nse releases 6 span files for one day, so before market open we upload 1st span margin file for the day so I believe for that reason you got that alert as with that file your margins might have gone up.
Hi Siva, to my understanding, NSE release a span file after closure of market that is considered as final for overnight settlement.
My balance in margin statement shared at 5 AM in motrning was showing the balance of 11.64 Lac and then suddenly it drops to negative at 8:06 AM in the morning.
Does NSE also send a feed on span in the morning before market opening like 8 AM ?
Yeah, it does, anyhow I have asked team to check your ticket.
Thanks Siva, will wait for the update from your team.
In my view, 2 feeds during market hours closing with so huge difference in margins does not make sense and not good for small retailers trading confidence.
Dear Sir
I Soumya Kanta Nayak is a retail trader and being a satisfactory customer since last 1 year in your esteemed broking services.
From March 2021 I started regular trading in FnO, but when I was going through my ledger yesterday I found in three instance I am being Charged for Margin Shortfall Penalty Charges for so and so date.
My grievances are as follows
- As per my knowledge and Zerodha support explanation Margin Shortfall Penalty will be levied for a overnight position. But I never take position over night without sufficient Margin.
- As per Zerodha support explanation I can know the margin shortfall from the daily equity statement send to our mail id and if it is showing short fall then we have to fund account with 12 mid night to avoid penalty. But not single instance my margin statement got minus figure.
- Whenever I got a margin short call from zerodha through SMS or mail I always immediately square off my position to fill up Margin Shortfall. But still I am charged. My point here is if you are going to charge then even if for five minutes short then why do you send a margin call SMS to fund immediately.
On 7th and 6th I had charged
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No, with introduction of peak margin reporting there can be penalty levied during the day also, please read this thread from start.
Zerodha is not charging, it is exchanges, as per peak margin reporting they take screenshots 4 random times during the day and at that point if there is no margin there can be penalty, point is if there is shortfall even for a minute there can be chances you will be levied penalty, if margin increased for m2m loss then that is okay during the day but for any other reason there can be penalty.
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Hi Nithin,
While exiting all option positions from the Kite positions page especially at the end on expiry day i.e. options worth 10 paise/5 paise. Bcoz order of trades is not maintained by zerodha, so margin is suddenly increasing even though some limit orders are pending at 0.01 rs/0.05rs. which when executed, all the margin requirement automatically goes off. But in the mean time, the margin requirements goes very high for a short span of time until those worthless positions are exited.
Will there be penalty by zerodha in such cases?
Penalty is charged by regulators, due to peak margins we never know when margin screenshots are taken so there is possibility that penalty will be charged if screenshot is taken during that time.
Is it a possibility or is it mandatory? Doesn’t zerodha charge penalty If exchange doesn’t took margin screenshot at that time?
Also for just a short span of time 5-10 mins bcoz of limit order execution is in pending state, client being charged for no mistake. Is it justified? Bcoz there will lot of these scenarios during the expiry days as the option price ticks between 5 or 10 paise?