Verifying margin shortfall penalty from NSE

Hi, How can one check if the shortfall penalty levied by the broker is actually deposited/or charged by the exchage?

I believe the exchange now asks brokers to randomly send snapshots at various times of the day for peak margin check.

Can I verify that there was actually a shortfall and exchange actually charged that to my trading account. I am looking for something like verification of trades done at NSE.

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You can check the monthly invoice on Console (Downloads > Dropdown “Statement” to Invoice), which is proof that the penalty is deposited to the Exchange.

(Invoice of a month is usually generated within the first week of the next month)

@FindingAlpha there is 2 types of penality is ther , one is margin shortfall penality , another one cash negative balnce charges - most of the penality is charging from zerodha only not from nse , because 50:50 cash requirment rule in zerodha , this cash balance went negative means - zerodha will put DPC charges to us its big - its not triggred from NSE , most of the broker came out no need to maintain 50:50 rule because its very diffcult to maintain -continusely these broker put charge all client money will go to broker only,

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Negative cash balance DPC is ok. But, i think margin shortfall penalty is from the exchange. Are you sure that margin shortfall is by the broker and not NSE?

Any way to confirm it outside the broker systems?

I’ve been trying to find the same. Recently on 28th October, I noticed on my ledger that I’ve been charged a margin shortfall penalty for 20th October.
Margin shortfall is something I’m very particular about & keep checking during trading hours (and once pre/post market) to make sure it’s okay. Even if I missed something, I checked & re-checked to see if I got any margin call on sms/email but I hadn’t. Also, I’d made a payin of 1.3L the previous day and the overnight margin statements show sufficient margin as well. So, not sure what’s going on here.
Raised a ticket wanting to know more info about this, they gave a calculation as to how the margin shortfall figure was arrived at, which doesn’t really help much as I wanted to know when exactly this happened, maths ka plus minus toh main bhi kar lunga…

Was facing the same issue and I raised it in some other post.
There is no way we can check with the NSE. Just buy what the broker says. If they say there was a shortfall, there was a shortfall. Period.

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I can’t even understand if this is even legal. Looks like NSE has turned this penalty thing into just another lucrative revenue stream.

If they are imposing a penalty, how can they not provide proof that the penalty being imposed is indeed correct and legitimate?

It’s like the Red Light Cameras automatically generating a fine on you for over-speeding, but when you ask them show proof that I was indeed over-speeding, they tell ‘we can’t show you the proof, you just have to believe us’.

They tell, ‘see here is the invoice for the GST we paid to the Government on the penalty amount, so u have to believe us, now pay the fine and shut up’ . Indeed, here the broker doesn’t even have to ask us to pay the fine, they can just take it away from our account without even notifying us because hey the Broker is an honest guy and the Exchange is an honest guy and they can’t be wrong, it’s always the hapless investor who must be wrong. So fine the shit out of him.

Really waiting for someone to file a complaint to SEBI on their SCORES portal.


I have seen you earlier thread as well on this issue. Have you tried lodging a complaint to SEBI on their SCORES portal?

If you haven’t, then please do. SEBI guys are generally prompt and responsive on this portal, saying from my personal experience. The complaint should be against the Exchange rather than the Broker, because the penalty is being pocketed by the Exchange.


I had raised a separate ticket and I understand the issue from brokers side.
As far as exchange is concern, I agree with you. There is no external proof to justify the penalty. Even I had not got any margin call and I was imposed a penalty of 23k. This would mean I was short by 23lakhs. It cannot happen because zerodha is always quick to send margin calls.
Anyways now i just maintain higher cash balance.

About exchange pocketing the money I am not very sure. I feel the penalty goes to SEBI. Not sure though. If its going to the exchange then no doubt why NSE is trading at such valuation in unlisted market.

I even find adding GST to penalty amount not making sense. GST is for sale of goods and services and not for penal charges. I do not know a traffic police giving me a gst invoice. Or if there is delay in filing income tax returns penalty is charged. But no gst. Same with any other penalty I know of.

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Do you know that few years back, the brokers would charges GST even of the delayed interest charges? Now they have stopped. But this is even mentioned on Zerodha website.

So Govt, brokers, exchanges sometimes will go to any length to maximize their revenue.

However, I still insist that you at least voice your concern to SEBI. It’s hardly a 10 minute thing, lodging a complaint on SEBI SCORES. May be some good comes out of it.

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Cool. I shall do that.

Now the DPC charges are day robbery from brokers , brokers know clearly no one cannot maintain the 50:50 rule , some broker try to help client to avoid DPC charges - 50% equity - 50% debt ok - these broker 50% equity - liquid and money market fund only allowed , these brokere only need to make money , we are not allowed to make any 1% extra , those broker went bankrupt one day

@siva - change your rule 50% equity as traeted non-cash component , another 50% all debt fund need to treat cash component , if yes or no, evey month too much going to DPC charge any solution from your side

Guys check your intrest statement you can see - go to console - funds- intrest statement - you can find the intrest on every month

Totally agree, I would want to go ahead with not only complaining but filing a case against this stupid SEBI. Can we coordinate or help me with this.

Forgive me if it is stupid question…is there any way to check total margin shortfall penalty one has paid in say 1 month, or say complete financial year in zerodha?

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One more query…how to check this margin shortfall penalty in contract note…my tax pnl shows the penalty but unable to decipher it on the contract note of that day…

Someone please guide.

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Margin penalty will be posted on the ledger on Console. You can download the ledger statement and filter the entries for shortfall penalty accordingly. Here’s how you can download the ledger statement.

This will not be part of the contract note. You can check it by downloading the Invoice statement from Console.

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Have you complained and got any response?

Hi, enlightened soul. I’m sure you are here after watching some videos on Youtube saying that brokers are scamming you. But unfortunately there is no such system yet developed by NSE where you can check the penalties paid by broker on in your name. Hope it will be implemented soon. I don’t know whether Zerodha is failing to pay those penalties to NSE but it rightly implementing the circulars which should have been implemented at the client level and not broker level. How can a broker pay cash for the trades you take? NSE should come up with the clarification for the same.

I too am searching this.How to check margin penalty paid by client in Zerodha account? Can anybody help