If you take intraday cash selecting Intraday = you will get 5% short penalty
If you trade intraday cash selecting CNC you need upfront margin to sell = 5% short penalty
If you trade BTST without 20% margin of total value = you will get a 5% short penalty
If you trade BTST with a 20% margin value = you get a 5% short penalty
You buy stock in CNC and wait till the holding period = you will get a short penalty
Now if I sell my holding stock I know I will get a short penalty
so, overall buying in cash or selling in cash whatever you select be prepared for a short penalty.
Few are rules few are their own rules.
after getting these many short penalties also no one really cares about calling their clients for extra margin needed or you are doing it wrong else you will get penalties (warning)
writing one fking blog isn’t going to do much. Should able to explain with examples. mine are a few examples and still a lot more to get shaved.
why do you allow to sell when margin requirements are not met? or allow to buy when there is still a previous settlement pending and having no upfront margin?
People just check your Backoffice because brokers gave up.
Hey @mu_kr We don’t impose additional rules to make it more difficult. The regulator is coming down heavily on leveraged practices by brokerages due to the infamous defaults & scams that have tarnished the stockbroking industry for the last 2 years. While it appears as if SEBI is being excessively harsh, you should know that they’re intent is to protect retail investors. Currently, the structure is loose and brokers can create leverage out of thin air. I believe this is the root cause of concern as sharp spikes in markets (Such as the one witnessed during the lockdown) can have catastrophic consequences on settlements as clients, brokers & clearing members can potentially go bust as the pass-through liability (chain link) will effect everyone including the Exchanges.
Please read the blog posted in one of my replies above. I have explained how the exchange levies penalties. Yeah, it is confusing and hence wrote a blog.
Example A - Have one lakh capital, did intraday trades in 5 scripts closed in half away mark. later took a BTST position purchased with whole cash some X stock
now VAR + ELM is 20,000 and next day he sold it and since he was taken upfront full cash.
Does he get penalties?
Example B - Have one lakh capital, did intraday trades but selecting in CNC in 5 scripts one after one using whole cash closed in half away mark . later took a BTST position purchased with whole cash some X stock
now VAR + ELM is 20,000 and next day he sold it and since he was taken upfront full cash.
Example C : I had capital of 1 lakh and traded 5 times same script x and covered it later took BTST of stock Y
will i get penalties?
Example D: I had capital of 1 Lakh and did trade selecting CNC instead intraday but i closed those positions intraday.
will i get penalties?
Example E : I bought 1 lakh worth of stocks which is full capital and i waited till it gets hold in Demat then later i sold those stocks and settlement is T +2
Their is cash available now for doing intraday. IF i now select CNC option and closed in intraday does it counted as intraday or should i need 20% margin to sell those ?