BENGALURU: Online stock-broking startup Zerodha is all set to appeal against an arbitration panel order asking it to pay an aggrieved client Rs 36.7 lakh to make good the losses he had incurred while undertaking futures trading on the Zerodha platform.The order from the panel, which was given out in the first week of November, gained popularity after it was reproduced on December 2 in a blog that was widely-circulated across social media circles of brokers and market participants.Nithin Kamath, CEO of Zerodha retorted against the accusation that Zerodha’s action was in haste and not in the best interest of its client.“If a client doesn’t have enough margin to hold a futures position, we square it off, this is consistent with our margin policy. Exchanges charge a penalty if F&O positions are held without enough margins… Our risk management can’t wait for a stock to recover (which may or may not happen) when market goes against a client and he doesn’t have sufficient funds,” wrote Kamath in the blog.When ET reached out to Kamath, he explained that in a futures trade there is always a margin that a client has to put in. If the stock in question tanks and the price goes down so much that the client’s margin becomes inadequate, to prevent further losses, brokers sell off the stocks at that current price.“Typically clients are asked to put in additional margin in such cases and if they do that then the platform does not square off his exposure,” he said. “But in this case funds were not transferred hence we sold off his shares.” As luck would have it, the company’s shares gained 10% that day causing the client to register a significant loss. The aggrieved client complained to the exchanges against Zerodha saying that they had prematurely sold off his holdings.