Hello Zerodha team
Wishing you happy and prosperous diwali
I have a question
Background:- I have pledged my share to get margin money as collateral and I don’t intend to use cash therefore
As per margin rules of SEBI i know that i can’t carry the position overnight as i have to have 50% cash so to avoid that i have started option selling on intraday basis but if in any day i incur big loss at the EOD then what are the necessary requirements to be fulfilled to avoid any damage or penalty
Thanks and Regards
Have cash, and have sufficient margin with a cash component.
If you do not any cash in your account then your account will result in negative balance. You will have to add funds to your account in such scenario else there will be interest applicable at 0.05% per day.
If you fail to add funds, your pledged securities could be squared-off to the extent of loses. You can check this support article for more information: