What is a margin shortfall and a margin call?

What is a margin shortfall and a margin call?

A margin shortfall occurs when the available margin falls below the required margin for an MTF position, due to factors such as a change in margin requirement or a decline in the value of funded/pledged securities. Jainam may issue a Margin Call through SMS/email, asking the client to restore the required margin by adding eligible funds or approved collateral.
If the shortfall is not regularized, funding release may be processed at T+2 days after billing. If the position still remains unresolved, the funded securities may be liquidated at T+5 days, as per policy. However, RMS may initiate liquidation earlier if significant market risk or volatility requires immediate risk action.

Margin Shortfall & Margin Call

Understand margin shortfalls, margin calls, regularization timelines, and possible actions if the required margin is not maintained.


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