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How is the margin penalty calculated?
As per guidelines provided by exchanges and SEBI, here’s the margin penalty levied in the case of a margin shortfall:
| Shortfall collection for each client | Penalty percentage of the shortfall |
| (< ₹1 lakh) And (< 10% of applicable margin) | 0.5% |
| (>= ₹1 lakh) Or (>= 10% of applicable margin) | 1.0% |
Note:
- Should the deficiency in margin persist beyond three consecutive days, a penalty of 5% will be imposed for each subsequent occurrence of the margin shortfall.
- In the event that the number of shortfalls exceeds five within a calendar month, a penalty of 5% will be levied for each additional occurrence of the shortfall.
- A GST of 18% is also charged on the entire penalty amount.
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