<SHARETIPSINFO.com: Indian stock market Risk management in case of Margin shortfall

Margin Shortfall

In case of any shortfall in margin:

The members shall not be permitted to trade with immediate effect.

A penalty of Rs.5000/- will be levied for violation of margin which shall be paid by next day. In case of subsequent violations during the day, penalty shall be increased by Rs.5000/- for each such instance. (For example in case of second violation for the day the penalty levied will be Rs.10000/-, Rs.15000/- for third instances and so on).The penalty will be debited to the clearing account of the member.

Penal charge of 0.07% per day shall be levied on the amount of overnight margin shortages.

Penalty points shall also be imposed on the member, depending upon the quantum of violation as given below:

Sr. No. margin Violation Penalty Points

(a) Value Rs.5 lakhs or more 4

(b) Value Rs.5 lakhs or more 2

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