There gained’t be any margin block in case when you had positions that are expired. Since there is no such thing as a margins blocked for expired one, free settled funds can be found for withdrawal.
RaviMukunthan:
When will the EOD margin file be run that may point out the BOD margin necessities for the following day?
Normally EOD SPAN file out there from CC at round 5:30PM and will get uploaded by 5:45PM.
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Thanks for the immediate reply. In my instance I had acknowledged taking Rs. 50 lakhs value of place utilizing collateral inventory margin solely with out having any money margins. As you’ve acknowledged that there gained’t be any EOD margin requirement for expired positions, I presume no curiosity shall be charged for 50% money margin shortfall although the EOD margin shall be blocked within the terminal for in a single day and shall be launched solely the following day morning. KINDLY CONFIRM WHETHER MY PRESUMPTION IS CORRECT.
I’ve each other continuation query on this regard. Allow us to say I herald Rs. 25 lakhs money margin in order that the Rs. 50 lakhs positions taken on the expiry day (and expiring the identical day at 3.30 pm) includes of Rs. 25 lakhs inventory margin + Rs. 25 lakhs money margin.
Allow us to additionally say that, after taking the above positions, I nonetheless have one other Rs. 50 lakhs of unutilized inventory margins that I now use for taking index choices positions that expire solely the following week and shall be carried ahead in a single day after immediately’s weekly expiry. I’ve taken these in a single day positions with out 50% money margin on the expectations that upon expiry of this week’s positions at 3.30 pm (with out me closing the identical earlier than 3.330 pm), the Rs. 25 lakhs money margin blocked will get launched and can get utilized in direction of the 50% money margin necessities for the following week’s expiry positions to make sure that there no curiosity will get charged for shortfall in money margin necessities on in a single day positions although the EOD margin shall be proven as blocked within the terminal for in a single day and shall be launched solely the following day morning. KINDLY CONFIRM WHETHER MY PRESUMPTION IS CORRECT.
@Anath, thanks on your suggestions. The terminal exhibits that EOD margins are blocked even by 11.00 pm:
even after the positions expired at 3.30 pm,
even after the EOD span file is run as you say at round 5.45 pm,
even in the course of the previous peak and EOD margin requirement stipulations earlier than 02.05.2023 and even after the brand new stipulations from 02.05.2023.
And therefore my confusions and queries on when margins get freed up after expiry of positions at 3.30 pm on the weekly or month-to-month expiry days and the consequential queries on curiosity for shortfall in money margin necessities.
As there is no such thing as a EOD margin requirement for expired positions there gained’t be any curiosity prices on the utilized collateral margins.Curiosity shall be charged provided that a 50% money margin will not be maintained for the non-expired carry-forward place
@Ragavendran_M
Thanks for clarifying one in all my largest doubts. I’ve positioned my trades accordingly within the weekly expiry day immediately letting the index choices expire nugatory whereas pocketing the premiums.
One portion of my question stays unanswered. Please have this too clarified. Let’s say that the expired positions at 3.30 pm on the expiry day will release Rs. 25 lakhs of money margin. When will this freed up money margin be used for funding any non-expired carry ahead place taken solely based mostly on inventory margin solely and banking on the freed up money margin to keep away from curiosity prices – on expiry day EOD or the following day BOD?
In different phrases, will the non-expired carry ahead positions on the expiry day (Thursday) be spared from being hit with 50% money margin shortfall penalty for Thursday to the extent of the Rs. 25 lakhs that bought freed up at 3.30 pm on the expiry day? It certain shall be spared on subsequent day (Friday) BOD, however what about Thursday EOD?
No curiosity shall be charged on Thursday EOD because the margin is freed up from expired positions and might be utilized for current open positions.
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Thanks for clarifying all my queries and doubts. I’ve no additional queries.
For yesterday, there’s some discrepancy between the Margin Assertion despatched out through e mail & the one which might be downloaded by way of Console. Within the Console one, the EOD margin is displaying roughly the identical margin which had been left yesterday at market shut, however within the Electronic mail one, it’s completely completely different. Within the Electronic mail one, the EOD margin matches with the Fund Assertion on Console.
After the 2nd Could replace, you usually see the EOD margin on Assertion near what you often depart on Kite at 3:30, in order that makes you assume the Console one is correct, however that doesn’t tally with the Span + Publicity blocked as proven on Fund Assertion on Console, so if Electronic mail Margin Assertion is the right one, then which means there was some further margin blocked by Zerodha yesterday, which isn’t an incredible factor…
@Arun_Gowda Are you able to get this checked?
Hey Sachin,We’re checking this.
Let’s imagine my margin was damaging for couple of minutes in the course of the day. I get a mail for provisional margin shortfall by Zerodha. My EOD margin and money element are all optimistic.
a) Does a provisional margin shortfall imply there was a margin shortfall within the SEBI snapshot or it’s a peak shortfall which will or might not be reported to the alternate?b) If I add cash earlier than 11:59, will that assist Zerodha avert penalty for upfront margin shortfall or harm has already been accomplished? Ought to i guarantee to herald cash even when the EOD margin is optimistic?
I want to keep away from Zerodha paying a penalty on my behalf however realized post-Could 2nd, there have been a number of cases the place let’s say I make the most of full margin after which due to motion of costs or once I exit one leg and exit one other one in a couple of minutes with a restrict order, I find yourself getting EOD provisional shortfall mail. Therefore wish to be sure does that imply a certainty of penalty being utilized to Zerodha or its a chance. If it’s a chance, a couple of minutes of the shortfall will as a rule, not lead to a snapshot being taken in that timeframe.
Ashish_Gupta2:
a) Does a provisional margin shortfall imply there was a margin shortfall within the SEBI snapshot or it’s a peak shortfall which will or might not be reported to the alternate?
Its means there was margin shortfall captured by the alternate (clearing corp) and peak margin penalty will apply.
Ashish_Gupta2:
b) If I add cash earlier than 11:59, will that assist Zerodha avert penalty for upfront margin shortfall or harm has already been accomplished? Ought to i guarantee to herald cash even when the EOD margin is optimistic?
Sure and sure
Ashish_Gupta2:
I want to keep away from Zerodha paying a penalty on my behalf however realized post-Could 2nd, there have been a number of cases the place let’s say I make the most of full margin after which due to motion of costs or once I exit one leg and exit one other one in a couple of minutes with a restrict order, I find yourself getting EOD provisional shortfall mail. Therefore wish to be sure does that imply a certainty of penalty being utilized to Zerodha or its a chance. If it’s a chance, a couple of minutes of the shortfall will as a rule, not lead to a snapshot being taken in that timeframe.
Its not a chance, penalty will get utilized when you obtain the provisional margin shortfall e mail. It could be greatest when you exit the margin profit place final to keep away from peak penalties.
Thanks. However I’m nonetheless not clear on one half. If I add shortfall by 11:59 pm will penalty nonetheless apply or it will get waived off?
Hey Ashish,Sure when you add funds earlier than 11.59 PM there shall be no penalty.For those who get provisional margin shortfall mail even when you’ve a optimistic fund steadiness, it’s certain that there’s a peak shortfall as a result of this shortfall shall be calculated by contemplating the funds in your account. So everytime you get the sort of mail please be sure so as to add funds earlier than 11.59 PM on the identical day in any other case dealer must bear the penalty.
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@Jyothi_P-Deshpande
I don’t assume the reason you supplied is right.
After the Could 2nd replace there is no such thing as a penalty on the dealer if there is no such thing as a BOD margin scarcity on the time of initiating the commerce at any level in the course of the buying and selling hours. There may be penalty on the dealer provided that the dealer permits a shopper’s commerce with out making certain ample BOD margin. However is BOD margin is ensured whereas initiating the commerce, any SPAN adjustments owing to elevated volatility is not going to lead to Peak or EOD penalties (even when there’s inadequate margin within the within the shopper’s account) as a result of the shortages can’t be attributed to any of shopper’s actions – and in addition the EOD margin necessities (based mostly on the EOD SPAN file run at round 5.45 pm every day) are based mostly on BOD margin necessities for the day.
Thus if there may be any EOD margin shortfall for no fault of the shopper who had ensured ample BOD margins, there is no such thing as a EOD margin penalty on the buying and selling day however the shopper has to fund the margin scarcity earlier than buying and selling begins at 9.15 am the following day to keep away from incurring penalty on the following buying and selling day (penalty shall be imposed on account of the alternate snapshot that may occur any time after 9.15 am and this must be borne by the shopper and never the dealer).
Nonetheless, if there may be any peak margin shortfall on a buying and selling day attributable to the actions of the shopper even when there is no such thing as a BOD margin shortfall (for instance the shopper closes solely the favorable leg of a lined place inflicting the margins to spike up) and the identical will get captured by the random alternate snapshot then the height margin penalty must be borne solely by the shopper and never by the dealer. If the shopper closes the opposite leg of the lined place to cut back the margin necessities the shopper might not face EOD margin shortfall, however nonetheless must incur peak margin penalty if the identical had been captured by the snapshot. As a result of the timing of the 5 every day snapshots is random, if the shopper covers the height margin shortfall earlier than the snapshot is taken then no peak margin penalty might be imposed although the shopper had peak margin shortfall for a quick interval. Provided that the alternate snapshot had captured the height margin shortfall and triggered an e-mail to the dealer will the dealer set off the e-mail to the shopper. Therefore, as soon as the e-mail comes from the dealer then peak margin penalty will certainly be levied on the shopper. And there’s no query of waiving off the penalty beneath any circumstances because the harm has already been attributable to the alternate snapshot.
To summarize, with none BOD margin shortfall, if any peak margin shortfall is attributable to shopper’s actions and has been captured by the alternate snapshot then there is no such thing as a technique to keep away from the penalty. With none BOD margin shortfall, if any EOD margin shortfall is induced both by the shopper’s actions (that fortunately didn’t get captured by the alternate snapshot) or SPAN adjustments on account of volatility, then the shopper has time until 9.15 am on the following buying and selling day to make up the shortfall and EOD margin keep away from penalty. Even with out making up the EOD margin shortfall on the following buying and selling day by 9.15 am, a fortunate shopper can keep away from EOD margin penalty by lowering the positions on the opening bell had the random snapshot had not occurred earlier than that!
Therefore, for my part, 11.59 pm has no significance or influence on any margin shortfall – BOD (upfront) or Peak or EOD.
Nonetheless, 11.59 pm may have one significance. That would be the cutoff time for avoiding any 50% money margin requirement shortfall imposed by the dealer even when there is no such thing as a alternate reportable margin shortfall on account of surplus inventory margin collateral.
Anybody might please be happy to spotlight any errors in my publish.
Obtained this mail:
Disappointing that the haircut is being elevated…