The following penalty shall be levied in case of short reporting by trading/clearing members per instance.

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%

Note:

  • If the margin shortfall continues for more than 3 consecutive days, a penalty of 5% is applied for each subsequent instance of the margin shortfall.

  • If there are more than 5 instances of a shortfall in a calendar month, a penalty of 5% for every further instance of the shortfall is applicable. 

  • For MCX, if the margin shortfall is reported 3 times or more during a month, i.e., either in consecutive instances or in 3 different instances, the penalty would be 5% from the 4th instance of the shortfall.

  • GST being charged at 18% on the entire penalty amount.