When you are holding overnight derivative positions without sufficient margins as prescribed by the exchanges, margin shortfall penalty will be levied. The margin penalty is levied on Equity, Currency, and Commodity derivatives segments.
Check out the margin shortfall penalty percentage:
| Short collection for each client | Penalty percentage |
| (< ₹ 1 lakh) And (< 10% of applicable margin) | 0.5% |
| (= ₹ 1 lakh) Or (= 10% of applicable margin) | 1.0% |
If shortfall continues for 3 consecutive days, a penalty of 5% of the shortfall amount will be levied each day after the 3rd day of the shortfall.