As per SEBI regulations, a margin shortfall penalty is levied on overnight positions held in the trading account without sufficient margin (SPAN & Exposure/Initial margins, net buy premium, physical delivery margins and marked to market losses (if applicable)) as prescribed by the exchange. The margin penalty is levied on Equity Derivatives, Currency Derivatives, and Commodity Derivatives segments.

Short collection for each clientPenalty percentage
(< Rs 1 lakh) And (< 10% of applicable margin)0.50%
(= Rs 1 lakh) Or (= 10% of applicable margin)1.00%