Why am I charged a penalty of more than 15% p.a. on a debit balance at FYERS?
At FYERS, we apply a penalty of 15% per annum (p.a.) on the debit balance in a client's trading account. This penalty is in place to encourage timely settlements and maintain the financial health of the trading ecosystem. Let's clarify how this penalty is calculated.
Penalty Calculation:
- Determine the penalty based on the annual rate: For instance, if you have a debit balance of ₹1000 for one year, the penalty would be ₹150 (i.e., ₹1000 × 15%).
Refund of Penalty:
It's essential to understand that the penalty is charged for the duration you had a debit balance in your trading account. Unfortunately, this penalty won't be refunded after you clear your debit balance. We advise maintaining a positive balance to avoid such penalties in the future.
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Will FYERS charge penalties for debit balances in trading accounts?
Yes, if your trading account with FYERS shows a debit (negative) balance exceeding ₹100, a penalty applies. Here's the breakdown: Penalty Rate: An annual rate of 15% or a daily rate of 0.041% applies on the debit amount. Accrual Method: The penalty ...