The following penalty shall be levied in case of short reporting by trading/clearing members per instance.
Short collection for each client
|(< Rs 1 lakh) And (< 10% of applicable margin)|
(= Rs 1 lakh) Or (= 10% of applicable margin)
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