Margin Related Queries
- How much penalty is charged bythe exchange?
- What is margin penalty andwhy have I been charged?
- How can I keep a track of anypossible shortfall and ensure thatthere is no penalty?
- What is “Margin Call” SMS/Email?
- By when should I bring in additionalmargins if I receive a margin call?
- Why did Navjeevan squareoff my position?
- Why have I not received full creditagainst the sell value of my holdings?
|Short collection for each client||Penalty Percentage|
|(< Rs 1 lakh) And (< 10% of applicable margin)||0.5%|
|(= Rs 1 lakh) Or (= 10% of applicable margin)||1.0%|
Penalty is charged on the shortfall amount at the following rates:
If the short collection continues for more than 3 consecutive days, a penalty of 5% is applied on the shortfall for each subsequent instance of short collection.
If there are more than 5 instances of short collection in a calendar month, then penalty at the rate of 5% is charged for every further instance of shortfall.
All Stockbrokers are required to report to the exchange margins available in the client’s account as against the margins required for positions carried forward. This process of informing the Exchange, the margins available in a client’s account is referred to as ‘Margin Reporting’.
If the margins available in the account >= margins required by the Exchange, no penalty is levied.
If the margins available in the account < margins required by the Exchange, a penalty is charged by the Exchange on such shortfall.
The easiest way to keep track of any shortfall is by looking at the daily margin statement on Back Office by around 9 pm or see it on your registered email by around 10.30pm. In case the margin statement shows any shortfall in the overall margin status, then you will have to bring in additional funds into your account at least to the extent of the shortfall to avoid any penalty.
Our RMS Team sends out the Margin call SMS & Email when the margin utilization exceeds your available balance.
You need to add funds immediately when you receive a margin call. If you will not add funds, your positions will be squared off at the discretion of the RMS team.
Navjeevan will square off your positions in the following scenarios –
- You have a BO/CO/MIS position which you haven’t closed even after the designated square off time.
- You have a position where you have not maintained the required margins. You will be sent a margin call and if you don’t bring in the required funds, your position may be squared off at the discretion of our RMS team.
- Pledged shares are squared off in case of a drop in the value of shares or loss in collateral margin.
- Your open position can be squared off if you place an unpledged request for your pledged shares but don’t have an adequate cash balance.
- If your MTM losses exceed 50% of your position, then it can be squared off by our RMS team.
According to SEBI circular on new peak margin, if you sell your stocks from your Demat Account or Buy Today Sell Tomorrow, only 80% credit against the sale value will be available for subsequent trades in the same/other segments on the selling day. You will be able to use the balance of 20% from the next trading day.