RMS failure on 03 February 2026, where NIFTY CE AMO BUY orders were executed beyond available margin of ₹5468 and order of amount more than ₹1.5Lakh were executed , leading to unintended loss and a wrong payable amount in the contract note.
I request rectification of the loss, correction of my margin and contract note, and confirmation that I am not liable to pay any amount arising from this system failure.
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@ROMIL_1182954 - Please share your Ticket ID so we can check this.
Ticket id 9851
I will await your reply!
Will ask the relevant team to check this, thanks.
Hi ,
Even I am facing same issue my ticket number : 10030
@NARAYANA_31357382 - Noted, thanks.
I haven’t received any update about this from the relevant team.
Listen to this joke from Upstox support team on what I have addressed to them it
Zero accountability!!
Dear Romil,
Thank you for writing to us.
We are sorry for the inconvenience caused to you and the delay in response.
This is with reference to your email, we would like to inform you that since you have placed an AMO market order, please note that the price visible at the time of placing the AMO order is only indicative based on the last trade price. A market order does not carry any price protection. It is designed to execute at the best available market price once the exchange market opens on the next trading day.
Further, based on the volatility in the market or in a particular position, if the market opens significantly higher/lower on the next trading day, your AMO market order will execute at the market price prevailing at that time, even if it is materially different from the price you observed while placing the AMO order.
Further to this, it is observed that you have placed an AMO order in your account. Since, on 03/02/2025 due to volatility in the market, AMO market orders were exposed to overnight price gaps and any sharp movement between the closing price and the next day?s opening price, directly impacted the execution price for the AMO order placed by you.
Alternatively, as a best practice, if price certainty is important for you, we recommend using an AMO with limit price instead of AMO with market price. A limit order ensures execution only at your specified price or better.
Also, we would like to inform you that while placing an AMO order through trading applications, we have given notifications for the clients about the functioning of the AMO order which states that - ?Placing AMO order can be risky due to price gaps, instead of this place limit orders?.
We hope the above clarifies the matter.
Thank you for your patience and understanding.
My very specific issue raised-
• On 03/02/2025, multiple NIFTY CE AMO buy orders were executed beyond my available margin, even after considering my pay-in and the margin displayed in my account.
• Several other AMO orders placed by me on the same day were rejected due to insufficient margin, which clearly shows that your RMS was checking margin for some orders but still allowed a few orders to go through despite insufficient funds.
• This is an RMS / risk-control failure, not a normal AMO price movement issue.
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How your RMS permitted these specific orders to be executed when the required margin exceeded my available margin.
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Why other AMO orders on the same day were blocked for insufficient margin, while these were allowed, despite the same margin constraints.
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Why I should be held liable for trades that, under proper RMS controls, should never have been executed.
Hi @ROMIL_1182954,
We understand your concerns and would like to explain that, as a broker, it becomes difficult for us to constantly monitor each client’s ledger on a second-by-second basis.
That’s why we follow defined risk management protocols in line with our Risk Management Policy, shared with you when you first joined. Margin checks and risk controls are applied as per these guidelines, and positions are squared off where required to prevent further risk in cases of insufficient margin. This is a standard practise across the industry.
Since the order was placed as an AMO market order, it was executed at the market price available at the time of market open. Due to an overnight gap-up in prices, the execution price was significantly different from the indicative price shown when the order was placed. For better control over execution price and margin requirements, we recommend using AMO limit orders going forward.
We can also schedule a call with our RMS team to explain this further.
Let me clarify my concern with a simple example, because your explanation is not addressing the core issue of margin checks on AMO orders.
Are you effectively saying that if I have only ₹100 in my account, your RMS will not check futures & options margin for AMO market orders at the time of execution? So with ₹100 as margin, I can place ₹50–60 lakh worth of AMO F&O orders and your system will still try to execute them and only then create a bill later?
If that is how it works, it is extremely alarming.
RMS exists precisely to prevent such overexposure and protect clients from taking positions beyond their available margin, which is also in line with SEBI’s risk-control intent.
Saying that “it is difficult to monitor each ledger second-by-second” does not answer why the automated RMS did not block or adjust the order size at the moment of execution when the actual traded price and required margin were known.
Also, please note:
• In derivatives, practically everything is executed as a limit at the exchange; there is nothing like a “pure” market order without any check.
• Even a market order, when sent to the exchange at open, effectively hits the best available bid/offer, and at that price your system knows the notional/required margin.
• At that point, your RMS is supposed to check: “Does the client have sufficient margin?” If not, the order should be rejected or quantity reduced, not fully executed and then justified later as “AMO market behavior”.
So my questions remain:
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Do you or do you not run a margin/RMS check on AMO orders at the time of actual execution (after seeing the real traded price)?
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If you do, how did you allow positions where the margin required clearly exceeded my available margin, while at the same time rejecting other AMO orders for insufficient margin?
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If you do not check margin at execution for AMO, how does that align with your own Risk Management Policy and SEBI’s expectations on controlling client overexposure?
Please avoid general statements about AMO and price gaps and instead address this specific point:
Why were orders, whose required margin exceeded my available margin, allowed to be executed at all?
Mere sath bhi esa hua hai 195000 losse RMS glitch 5000 fund tha upstox account me
Just in case if it is still very complex for you and don’t understand let me put it out in Lehman terms-
I had no stocks or any other positions in my account, I was only doing simple call buying in NIFTY options through AMO. My actual trading balance, the margin available to me, was about ₹5462.80.
In spite of this, your system allowed NIFTY call‑buy orders where the total premium was around ₹1,05,833. In very simple terms, it is like having only ₹5,500 in my wallet but still being allowed to “buy” items worth over ₹1,05,000, and then later being told I owe the difference.
RMS is specifically meant to prevent this kind of over‑exposure by blocking or reducing orders when there isn’t enough margin.
That is why I am asking how your RMS allowed these call‑buy trades to go through when my available margin was nowhere close to the total premium ??.
@KUNTAL_29315030 - May I know your Ticket ID so we can check the details?
Hello Ushnota,
The Ticket ID for this issue is #9851.
Regard
Kuntal gehlot
Will check and get back, thanks.
I have the same issue.
@NAGAM_31299654 - May I know your Ticket ID?
#10401
Noted.