How much penalty is levied by the exchange in case of margin shortfall?
Exchange levies the following penalties in case of margin shortfall. The penalty is charged on the shortfall amount.
Short collection for each client
(< Rs 1 lakh) And (< 10% of applicable margin)
Penalty Percentage
0.5%
Short collection for each client
( = Rs 1 lakh) Or (= 10% of applicable margin)
Penalty Percentage
1.0%
| 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 a 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 a penalty of 5% of the shortfall amount shall be levied for each day, during the month, beyond the 5th day of shortfall.
You can visit the NSE website to know more.
Note: GST at applicable rates (currently, 18%) is levied on the penalty amount.
In case you incur a margin penalty, the cut-off/ due date for reporting margin is T+5 days, so we post the entry on your ledger once we get the penalty file from the exchange i.e. on T+6 days.