Announcements

As per SEBI’s peak margin rules, when you sell your stocks from your Demat Holdings, on the same day you can use only 80% of the proceeds to - 

1. Buy back the same stocks or any other stocks
2. Use the funds for intraday trades

However, If you exceed the available credit while placing the above two orders on the same day, there could be a margin shortfall and margin penalty may be applicable.

Example: 

• Let’s say you have 20 shares of ABC in your Demat and you sell them at say ₹1500 per share. From this sell transaction, you can use only ₹24,000 and not the entire ₹30,000.
• Now, let’s assume you use the ₹24,000 to take both an equity delivery position and also an intraday F&O position on the same trading day. Then a peak margin penalty could be applicable on the intraday F&O trade if you don't have sufficient funds available other than the ₹24,000 credit from selling your holdings. 
• The penalty amount varies on the amount of shortfall. 

Hence, in order to avoid incurring this penalty, kindly ensure that you have sufficient funds in your account at all times before placing such a trade.