short delivery..help me guys

Has stock gone for auction? Then, difference between 102.80 and 106 will be put on you as penalty for non-delivery of stock on settlement even though you are not in fault at all.

 

rightly said Srouta....i have to take penalty of @3k...whose fault...??? should i contact NSE ..

 

clearing member couldn't deliver because somebody couldn't deliver, what is your broker's "internal settlement" mail about? an auction will have a bill with the trade details.
brokers should warn clients about risks associated with BTST & implications of a bad delivery

 

Hi sandeep, I had a narrow escape from the same situation with cupid Ltd shares last week. I bought 500 @ 423rs on last Tuesday and sold on Friday at 468. Again I bought back at 600 shares at 464rs. On Saturday morning I saw a discrepancy in the avg.buy rate - rate was very low than my calculation. I called the brokerage & they told that settlement is 2.days & what ever I bought & sold first time was intraday. Now they are telling me to wait for Wednesday to sell my shares, else I will get penalty due to sell of unsettled shares. Cust. Care person explained me too much, but I did not understand it still.

 

Take up issue with Investor Grievance Forum of Kirit Somaiya:

https://kiritsomaiya.com/investors-grievances-forum/

Also with NSE E-Complaint Mechanism

https://www.nseindia.com/invest/content/register_ecomplaint.htm

Good Luck.

 

same here dear...unable to understand the process...

 

when placing an order, you get the option to select if it is a delivery trade or intra-day, it is simple as that
please ask your brokers/RMs to explain it to you

Dec 1 - you buy ABC
Dec 2 - you sell ABC and then buy it back, it is an intra-day trade

settlement is T+2 days
https://www.bseindia.com/investors/FAQRolling.aspx
https://ttweb.indiainfoline.com/trade/FAQs/SettlementCycle.aspx

Spoiler: What happens if one fails to deliver the shares sold?

In case an investor fails to deliver the shares sold in the Rolling Settlement, BSE conducts an auction of the quantity short delivered/ not delivered on T+4, to meet the obligation of delivery of shares to the buyer. In this auction session, offers are invited from fresh sellers for quantities short delivered. The highest offer price is allowed up to the close-out rate and the lowest offer price in auction can be 20% below the closing price on a day prior to the day of auction. The Member through whom one has sold the shares is not allowed to offer shares in the scrip for which he has failed to make delivery. .

In case no offers are received in auction for a particular scrip, the sale transaction is closed-out at a close-out price, determined by higher of the following:-

- Highest price recorded in the scrip from the settlement in which the transaction took place upto a day prior to the day of the auction.

OR

- 20% above the closing price on a day prior to the day of auction.

However, in case of the close- out of shares under objections, shortages in the trades done in "C" group or "Z" group where the auction rate is not available, 10% above the closing price on a day prior to the day of auction is considered instead of 20% for calculation of the close- out price for scrips in other groups.

- In such case, if the auction price/close-out price is higher than the standard price of the settlement in which the transaction was done, the difference is recovered from the seller who has failed to deliver the scrips. However, in case, auction/ close-out price is lower than standard price, the difference is not given to the seller but is credited to the Investors Protection Fund

Spoiler: What happens if one buys shares on one day and sells the same on the following day and does not get delivery of shares purchased?

The pay-out of the shares purchased takes place on T+3 day. In case, an investor does not receive the shares purchased on account of non- delivery by the seller, he may receive the same in the auction pay-out on T+5 day. In case one has sold the shares on the next day, the pay-in of these shares would become due on T+4 day. This would lead to mismatch in delivery obligations for sale transactions, which became due on T+4 and receipt of the shares purchased via auction would happen on T+5 day. Hence, the sale transaction due on T+4 day would result into a failure and the shares not delivered would be auctioned or closed-out.

However, investors should note that the total shortages in the various scrips in the CRS are quite negligible and investors are most likely to get the shares purchased by them on the Pay-out day (T+3) itself. However, it is advisable to sell the shares purchased only after the same have been received by the concerned Member-broker from BSE or have been credited to the demat account of the investor.

 

Excellent explanation by @BombayBoy