What is margin shortfall / limit issue?

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• In which type of cases margin shortfall and consequent penalty will arise?

  In the following scenarios margin shortfall may arise and margin shortfall penalty will be applicable: Margins increased by exchange during the day or EOD Wound-up/ Square off one leg of position in hedge positions Buy back of sold holding shares on ...

• When is a margin shortfall penalty charged?

  A margin shortfall penalty is charged when the margin available in a trading account falls below the margin required for maintaining open positions, and the deficiency is not rectified within the prescribed time. This penalty is imposed to ensure ...

• Is there any penalty in case of margin shortfall in new PMR?

  As the Broker have to report the margin collected from each client, as at EOD and peak margin collected during the day, in the following manner: a) EOD margin obligation of the client shall be compared with the respective client margin available at ...

• What is margin liquidation?

  Margin Liquidation is the forced sale of securities or closure of trading positions by a broker when an investor fails to maintain the required margin, resulting in a margin shortfall that is not rectified within the prescribed time.

• What happens if fail to maintain margin?

  When trading through the Margin Trading Facility (MTF) or Futures & Options (F&O) segment, investors are required to maintain the prescribed margin at all times. If the available margin falls below the required level, the investor may be required to ...