Margin Shortfall
What happens in case of a margin shortfall?
If you’re using Margin Trading Facility (MTF) and your total investment in a single stock exceeds ₹10 lakhs, you are required to either reduce your exposure or pay an additional margin—this is known as Concentration Margin.
Example:
- You buy SBI shares worth ₹12 lakhs using MTF.
- Since the limit per stock is ₹10 lakhs, you're ₹2 lakhs over the threshold.
You have two options:
Reduce Exposure: Sell ₹2 lakhs worth of shares to bring your holding within the ₹10 lakh limit
OR
Pay Concentration Margin: Deposit an additional ₹50,000 (which is 25% of the excess ₹2 lakhs)
🔍 For more details, refer below

