As per extant regulations, clients can only trade upto a certain times (1.33x currently and 1x from September 1, 2021) of their available margin with Prabhudas Lilladher. At times, due to margin increases during day or other such reasons, including requests against pending cheque deposit/funds transfer, such limits may be breached and cause a shortfall.

The margin available is mentioned in the Daily Margin Report sent to clients. Such shortfalls are reported to exchanges by T+4 days. We therefore send a Provisional Shortfall message to clients on T Day so they can take immediate action to fund the shortfall and then the final Actual Shortfall and Penalty message on T+5th day.

Shortfall messages are not sent to NRI/NBFC/Custodian settled accounts as they cannot trade in excess of margin available.