Penalties
The penal charges under different categories are as under:
Members failing to fulfill their funds obligations (all markets including the valuation debit raised on account of securities shortages) and members failing to fulfill their securities deliverable obligations to Clearing Corporation would be subjected to the following penalty structure to Clearing Corporation shall be subjected to the following penalty structure:
| S. No | Type of Non-fulfillment | Penalty Charge % per day |
|---|---|---|
| 1) | Funds shortages | 0.07% |
| 2) | Security Shortages | 0.05% |
Following penalty shall be levied on a monthly basis in respect of margin violations.
| Instances of Disablement | Penalty to be levied |
|---|---|
| 1st instance | 0.07% per day |
| 2nd to 5th instance of disablement | 0.07% per day + Rs.5000/- per instance from 2nd to 5th instance |
| 6th to 10th instance of disablement | 0.07% per day + Rs. 20000 ( for 2nd to 5th instance) + Rs.10000/- per instance from 6th to 10th instance |
| 11th instance onwards | 0.07% per day + Rs. 70,000/- (for 2nd to 10th instance) + Rs.10000/- per instance from 11th instance onwards. Additionally, the member will be referred to the Disciplinary Action Committee for suitable action |
Instances as mentioned above shall refer to all disablements during market hours in a calendar month. The penal charge of 0.07% per day shall be applicable on all disablements due to margin violation anytime during the day.
Members not fulfilling the security deposit requirement for continued membership would be subjected to a penalty charge of 0.07% per day.
Trades marked as ‘INST’ and not allocated to valid CP codes and institutional trades rejected / not-accepted by Custodians shall be subject to penalty at 0.10% of the total value or Rs. 10,000 whichever is lower.
Penalties would be applicable as per the provisions of the normal market. Additional penalties would be imposed if trades are executed by ineligible clients as under:
If the selling client is not eligible - the trade would be compulsorily closed out and a penalty of Rs.25000 shall be imposed.
If the buying client is not eligible - a penalty at the rate of 1% of the value of the trade or Rs 1 lakh whichever is lower will be imposed.
| Type of Default | Penalty Charges |
|---|---|
| Company Objections Bad & Fake and Company Objections Rectification / Replication of bad and fake delivery in all markets | 0.09% per day from the day of non compliance |
| Wrong claims of dividend, bonus etc. | Rs. 100 per claim |
| Same set of shares reported twice under objection | 10% of value with a minimum of Rs.5000/- per claim |
| Incorrect undertaking on Form 6-I | 10% of value with a minimum of Rs.5000/- per claim |
| Late withdrawal of company objections | Rs.2 per share with a minimum of Rs.200/- |
| Non Settlement of trade under TT segment | 0.50% of trade value |
| Cancellation of trade under TT segment | Rs.1000/- per trade per side |
| Failure to settle within the stipulated time under TT segment | Maximum of Rs.10000/- or Rs.500/- per trade per day, subject to maximum of 2.50 times the value of trade for each side |
| Failure to report within the stipulated time under TT segment | Maximum of Rs.5000/- or Rs.500/- per trade per day, subject to maximum of 2.50 times the value of trade for each side |
Updated on: 03/01/2023
