Margin shortfall penalties accounting craziness – #4 by vinayak_n – Basic…

Verifying margin shortfall penalty from NSE - #16 by Hardeep - General -...

Hello, @DS1567

Please word that each one Stockbrokers are required to report back to the alternate margins accessible within the shopper’s account towards the margins required for positions. This strategy of informing the alternate of the margins accessible in a shopper’s account is known as ‘Margin Reporting’

If the margins accessible in your account >= margins required by the Trade, there gained’t be any penalty is levied. However When you’ve got inadequate margins, the alternate will cost you a margin penalty to your account.

There are 2 varieties of shortfall:

  1. EOD shortfall

  2. Peak shortfall

EOD shortfall – The best option to hold observe of any shortfall is by trying on the daily margin statement.

Peak shortfall- To reach at an intraday peak place margin, clearing companies (CC) will randomly take 4 snapshots in the course of the day of all of the margins. These snapshots can be at random intervals & system-driven, No dealer in India will know the timings of the snapshot taken by CC.

The very best margin out of those 4 snapshots will develop into the height margin required of the day. If the accessible margin in your account is lesser than that penalty can be charged.

The dealer will get the file referred to as MG13 on the finish of the day from the alternate through which the height margin required for every shopper can be talked about towards which the dealer has to report the margin accessible in purchasers accounts, any distinction between the required and accessible margin can be a shortfall on which penalty can be relevant on the given charges by the alternate

Please word that the Brief margin penalty is utilized by the alternate and never the dealer so the dealer is not going to be ready to refund the penalty.

Margin assertion will present the shortfall based mostly on Finish of the day, the identical doesn’t present peak margin shortfall.

To know extra about peak margin please undergo this submit.

Please verify the reasons which may result in the shortfall, and at all times preserve enough funds to keep away from any type of shortfall sooner or later.

We will reply to your ticket with the small print of the penalty.

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