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How will the peak margin work ?

Until now the Margin Reporting happened only at the end of the day for all the carry forward trades. This reporting system allowed the brokers to provide high intraday leverage to their clients. But with the new rules, Margin Reporting has to be done several times during the day as opposed to only once at the end of the day. Let’s assume you have ₹ 10,000 in your trading account and you take the following intraday trades:
Minimum margin (VAR+ELM) Min margin requirements (25% of VAR+ELM) From 1st Dec-20 To 28th Feb-21
Intraday Trade 1 37,500 9,375
Intraday Trade 2 43,750 10,937.5
Intraday Trade 3 87,500 21,875
Intraday Trade 4 12,500 3,125
     
Highest Peak margin requirement during a day (Intraday Trade 3) 21,875
Margin shortfall during the day  (Intraday Trade 1/2/3) Whichever is higher 21,875
Actual Margin or Balance in your Trading Account 10,000
Margin shortfall  11,875
*Highest margin required in a day will be considered for margin shortfall.
Based on the above scenario the margin shortfall is ₹ 11875/- so for the 1st day of the shortfall in the month then 0.5% penalty charges is applicable, if there is a shortfall for more than 3 consecutive days, a short margin penalty of 5% of the shortfall amount shall be levied for each day. The clearing corporation checks for peak margin 4 Times during the day from 9.00 am to 4.00 pm and the highest peak margin out of the 4 will be considered for calculation margin shortfall. Check out the Peak Margin Calculation Timings for Equity and Commodity below: 
Equity
Peak 1 (9:00 to 11:00)
Peak 2 (11:00 to 12:30)
Peak 3 (12:30 to 2:00)
Peak 4 (2:00 to 3.30)
Commodity
Peak 1 (9:00 to 11:00)
Peak 2 (11:00 to 12:30)
Peak 3 (12:30 to 2:00)
Peak 4 (2:00 to 3.30)
Peak 5 (3.30 to 11.30Pm / 11.55pm)

Margin Shortfall Penalty:

The following penalty shall be levied in case of margin shortfall:

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 the margin shortfall is reported for more than 3 consecutive days, a penalty of 5% on the shortfall amount will be levied post 3rd day of the shortfall.

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