The penal charges under different categories are as under:

• Funds and securities shortages
• Margin Shortages
• Security Deposit Shortages
• Non-allocation / rejection of institutional trades
• Invalid IL trades (inter-institutional deals)
• Other penalties

Funds and securities shortages
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%

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Margin Shortages
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.

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Security Deposit Shortages
Members not fulfilling the security deposit requirement for continued membership would be subjected to a penalty charge of 0.07% per day.

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Non-allocation / rejection of institutional trades
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.

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Invalid IL trades (inter-institutional deals)
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.

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Other penalties

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

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