A penal charge will be levied on the amount in default as per the byelaws relating to failure to meet obligations by any Clearing Member
Short Reporting of Margins in Client Margin Reporting Files
The following penalty shall be levied in case of short reporting by trading/clearing member per instance.
| Short collection for each client | Penalty percentage |
|---|---|
| (< Rs 1 lakh) And (< 10% of applicable margin) | 0.5% |
| (= Rs 1 lakh) Or (= 10% of applicable margin) |
1.0% |
If short/non-collection of margins for a client continues for more than 3 consecutive days, then penalty of 5% of the shortfall amount shall be levied for each day of continued shortfall beyond the 3rd day of shortfall.
If short/non-collection of margins for a client takes place for more than 5 days in a month, then penalty of 5% of the shortfall amount shall be levied for each day, during the month, beyond the 5th day of shortfall.
Notwithstanding the above, if short collection of margin from clients is caused due to movement of 3% or more in the Nifty (close to close) on a given day, (day T), then, the penalty for short collection shall be imposed only if the shortfall continues to T+2 day.
All instances of non-reporting are treated as 100% short reporting for the purpose of levy of penalty