Why is my order rejected stating, "Insufficient margin due to peak margin rule. Your available balance is ₹<amount> and your peak margin required is ₹<amount>."?
This error message appears when your available balance falls short of the peak margin required for a specific order. It typically arises while trying to buy back a sold scrip using the “Invest” or “Cash and Carry (CNC)” option.
What is the Peak Margin Rule?
The peak margin framework, mandated by SEBI, ensures that traders maintain the highest intraday margin requirement at all times during the trading session. This margin is dynamically calculated and enforced by the exchange.
Key Aspects:
- Peak margin is the highest margin requirement at any point during the day.
- If your account doesn't hold sufficient funds at that peak moment, your order is rejected.
Common Use Case: CNC Buyback
This message often appears when:
- You've sold a stock under CNC.
- You try to buy it back on the same day using CNC again.
- But your available balance is less than the peak margin needed to support the buyback.
In this scenario, even though you're trying to square off the position, the system checks if you have the required peak margin — and if not, it rejects the order.
What If...
| Scenario | Explanation |
|---|
| I sell shares using CNC and buy them back same day | The second leg may be rejected due to peak margin insufficiency. |
| My order value exceeds available margin | The order will be rejected unless you add more funds. |
| I switch to Intraday order type | Peak margin still applies; ensure you meet the margin threshold. |
Last updated: 28 Jun 2025
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