You must add funds to your account by 11:59 PM on the same day if there is a margin shortfall in your account to avoid the following:
- Margin penalty: The exchange may charge a margin penalty for the shortfall in the margin requirement.
- Increase in margin for additional positions: Margin requirements for additional positions could be increased if the account has a negative balance or margin shortfall.
- Squaring off of positions: Open positions can be squared off to reduce margin requirements.
If the Zerodha account has a negative balance, or if the collateral margin cash shortfall exceeds ₹5 lakhs, a brokerage of ₹40 per executed order will be charged instead of ₹20 when placing an F&O order. Regulations require at least 50% of F&O margin to be in cash or cash equivalents, with the remaining 50% from pledged securities.