Comment on Margins & Margin penalties when trading with leverage
commented on
11 Oct 2022, 11:41 AM
Whether or not they send notifications, according to the circular they are not supposed to pass on the penalty to the customers. The ideal scenario would be to pass on these penalties only if the brokers have notified their clients and the clients have not brought in sufficient margins. SEBI should work on that. Passing on penalties to the broker after clients have entered positions in the garb of “upfront margin penalty” is a systemic risk.