Margin-call timeline at Zerodha

When a Zerodha client’s margin used exceeds available margin, the broker follows a defined timeline of notifications and actions. Understanding the timeline helps avoid surprise auto-square-off and minimise shortfall costs.

Trigger: shortfall arises

A margin shortfall can arise from:

• MTM losses on open positions reducing available margin.
• SPAN file refresh increasing margin requirement.
• Pledged collateral value falling.
• New position opening without sufficient margin (rejected at order placement).

Immediate response: SMS / email alert

Within minutes of the shortfall:

• SMS to your registered mobile.
• Email to your registered email.
• In-app notification on Kite.
• Console alert when you next log in.

The notification specifies:

• Shortfall amount.
• Affected segment.
• Required action.

See Margin shortfall penalty notice for details.

Same-day window: top up or close

For an intraday MIS shortfall:

• Same-day: Add funds or close positions.
• By auto-square-off time (typically 15:10-15:20 IST): If still in shortfall, Zerodha may force-close MIS positions.

For an overnight NRML F&O shortfall:

• End of day: Shortfall reported to exchange.
• Next morning: Continued shortfall triggers further action.
• Persistent shortfall: Zerodha may take risk-management action.

SEBI penalty

For any shortfall (intraday or overnight):

• SEBI penalty applies per day: 0.5% to 5% of the shortfall depending on size.
• For shortfalls over Rs 1 lakh or 10% of margin: 1% per day.
• Above 25% of margin: 5% per day.

See Peak margin penalty on Zerodha .

Persistent shortfall

If shortfall persists multiple days:

• Daily penalty accumulates.
• Zerodha may close positions to resolve.
• SEBI enforcement escalation possible for major / repeated shortfall.

Action steps for retail traders

To resolve a margin shortfall:

1. Add funds via UPI / IMPS (instant to T+0 morning).
2. Close intraday positions to free margin.
3. Reduce position size if multiple legs.
4. Sell pledged shares (un-pledge first) as last resort.

For complex shortfalls involving multiple segments, contact Zerodha support immediately via Console.

Notification monitoring

Active traders should:

• Watch SMS / email during volatile sessions.
• Check Kite Funds page every hour during the day.
• Monitor margin used vs available in real time.

For automated alerts: set up SMS / push notifications in Kite settings.

See also

• Margin shortfall and auto-square-off
• Margin shortfall penalty notice
• How margin penalty is calculated
• How to understand peak margin penalty
• Margin penalty entries on ledger
• Margin shortfall instances
• Transfer funds to cover shortfalls
• Shortfall fund transfer after closed positions
• Margin required on order window
• Margin available / used / cash on Kite funds
• Margins and leverage at Zerodha
• Margin on exit calculation
• SPAN margin on Zerodha
• Exposure margin on Zerodha
• VAR + ELM intraday margin on Zerodha
• Auto square-off on Zerodha
• 50:50 cash collateral rule explained
• SEBI peak margin rules explained
• Upfront margin requirements post-2020
• Margin pledge (Zerodha)
• Pay-in funds explained
• Zerodha customer care number
• Naked option selling margin on Zerodha
• Hedged positions margin benefit on Zerodha
• Intraday leverages for MIS / CO
• Intraday margin increases on volatile days
• Kite Positions tab explained
• Futures and options
• Zerodha
• Kite (Zerodha)

External references

• Zerodha margin policies
• Zerodha Support
• SEBI peak margin framework

References

1. SEBI, Peak margin framework and shortfall penalty, sebi.gov.in.
2. Zerodha, Margin call and shortfall response, support.zerodha.com.
3. NSE Clearing, Shortfall reporting framework, nseclearing.com.