What is the Cash Shortfall Charge / Delayed Payment Charge (DPC)?

As per exchange regulations, for F&O positions, at least 50% of the margin must be from  cash or cash-equivalent securities. The remaining 50% can be non-cash collateral (pledged stocks).

If you hold overnight F&O positions without maintaining the 50% cash component, a cash shortfall charge is applied on the shortfall amount.

Cash Shortfall Rate

• 0.05% per day (inclusive of GST) on the shortfall amount

• Approximately 18% per annum

Example

You have F&O positions requiring ₹2,00,000 margin. You should have at least ₹1,00,000 in cash. If you only have ₹60,000 cash and rest from collateral:

• Cash shortfall = ₹1,00,000 - ₹60,000 = ₹40,000

• Daily DPC = ₹40,000 × 0.05% = ₹20

Note: Cash-equivalent securities (like Liquid BeES, Liquid Mutual Funds) count toward the 50% cash requirement and don't attract DPC.