Penalty is charged on the shortfall amount at the following rates:
|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%|
If the short collection continues for more than 3 consecutive days, a penalty of 5% is applied on the shortfall for each subsequent instance of short collection. If there are more than 5 instances of short collection in a calendar month, then penalty at the rate of 5% is charged for every further instance of shortfall. Learn more about margin penalties on the NSE website.