Like I explained in the beginning of the post, if you have Rs 1lk and broker allows you to buy say 3 contracts of Nifty future where margin is 3lks for intraday, it doesn’t get reported to the exchanges. What gets reported is the end of the day margin. So by end of the day, if the margin in your account < margin required to hold position, there is no penalty.
With peak margin reporting, along with end of the day, the exchanges will share with broker the peak margin utilized by a client during the day. So a broker will now end up having to report to the exchanges, the Rs 3lk position that was taken with just Rs 1lk. Like the way there is short margin penalty for overnight position, there will soon be for intraday position.