How much is a peak margin penalty?

Peak Margin penalty is imposed on stock broking companies and not on the client. The broker is responsible for reporting the shortfall in the collection of peak margin and pay penalty on such shortfall. The penalty is in the range of 0.5% to 5% of the shortfall amount on a daily basis.

 

Shortfall collection for each client	Penalty percentage
(less than Rs 1 lakh) and (less than 10% of applicable margin)	0.5%
(equal to Rs 1 lakh) or (equal to 10% of the applicable margin)	1%

 

If a shortfall of margin for a client continues for more than three consecutive days, then a penalty of 5% of the shortfall amount shall be levied for each day of continued shortfall beyond the third day of the shortfall.

 

If shortfall of margin for a client takes place for more than 5 days in a month, then a penalty of 5% of the shortfall amount shall be levied for each day, during the month, beyond the 5th day of the shortfall.