Penalty for Margin Shortfall
The members shall not be permitted to trade with immediate effect.
- There is a penalty for margin violation
Penalty applicable for margin violation is levied on a monthly basis based on slabs as mentioned below:
| Instances of Disablement | Penalty to be levied |
|---|---|
| 1st instance | 0.07% per day |
| 2nd to 5th instance of disablement | 0.07% per day +Rs.5000/- per instance from 2nd to 5th instance |
| 6th to 10th instance of disablement | 0.07% per day+ Rs. 20000 ( for 2nd to 5th instance) +Rs.10000/- per instance from 6th to 10th instance |
| 11th instance onwards | 0.07% per day +Rs. 70,000/- (for 2nd to 10th instance) +Rs.50,000/- per instance from 11th instance onwards. Additionally, the member will be referred to the Member Committee for suitable action |
Instances as mentioned above shall refer to all disablements during market hours in a calendar month. The penal charge of 0.07% per day shall is applicable on all disablements due to margin violation anytime during the day.
Penalty for Short / non-reporting of client margin/short allocation
The following penalty shall be levied in case of short reporting/allocation 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/short allocation 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/short allocation 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.
All instances of non-reporting are treated as 100% short reporting for the purpose of levy of penalty.