There appears to be a serious RMS bug where option buy orders are getting executed far beyond the actual available margin – in my case, roughly 20× the margin, and in theory this could easily go 50–100× if not fixed.
On the trading day in question, I had no equity holdings and no other positions – I was only doing simple NIFTY call buying through AMO. My effective available margin was about ₹5,462.80. Despite this, the system allowed 5 NIFTY call‑buy orders to be executed with a total premium debited of approximately ₹1,05,833 (₹6,110 + ₹19,500 + ₹26,042.25 + ₹26,624 + ₹27,556.75).
In layman terms, this is like having ₹5,500 in your wallet and still being allowed to “buy” products worth around ₹1,05,000, and only afterwards being told you owe the difference. RMS is supposed to stop this, by checking margin at the actual execution price and blocking or cutting down the order if there isn’t enough money. If the system can execute such trades with a tiny margin, it effectively means a client could place tens of lakhs worth of option buy orders with only a few thousand rupees in the account, and the platform would still execute them and then push the entire risk and debit onto the client.
This behavior shows that the margin/RMS check on AMO execution is missing, or inconsistently applied, because on the same day some AMO orders were correctly rejected for insufficient margin while these call‑buy orders were allowed. That inconsistency is exactly why this is a critical risk issue, not just a normal AMO or price‑gap situation.
It directly raises doubts about whether the broker’s RMS implementation is truly aligned with SEBI’s risk‑management and investor‑protection framework