In case of F&O trading, Exchange levies penalties on the client's position if the available margin/funds are less than the required margin.
Penalties may also be levied in the following scenarios:
a. F&O Positions taken , if any, without providing adequate margins.
b. Mark to market losses on positions, not paid by the client.
c. Client has sold Options (on T day) and bought Futures (on T day) against the premium receivable (on T+1 day or after
bank holiday) on the options so sold on T day.
d. Client has sold Options (on T day) and bought Options on different underlying (on T day) against the premium receivable
(on T+1 day or after bank holiday) on the options so sold on T day.
e. F&O Positions taken against pending Equity receivables from Exchange.
f. Positions taken against other pending receivables.
g. Trading in specific F&O contracts during ban period.
h. Trading in specific F&O contracts in excess of maximum permissible client wise limit specified by exchange. etc
Any penalties levied by Exchange will be recovered by AxisDirect by debiting the respective client account.