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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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Attention Investors!
Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from the depository on your email id and/or mobile number to create a pledge. Pay 20% upfront margin of the transaction early to trade in the cash market segment. Investors may please refer to the Exchange’s Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020, and NSE/INSP/45534 dated August 31, 2020, and other guidelines issued from time to time in this regard. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.
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