I am a small trader, started trading about two months back, on an investment of Rs. 80,000. I'm still reading technical analysis books and at present follow the tips on CNBC.
On 15th September (Wednesday), I bought 50 shares of a company at 139.60. On the 16th, I sold them off at 141.25.
On the 17th (Friday), I received two emails from my broker, the first saying there was a Pay-out shortage and there would be an auction on T + 4 day. The second email said there was a Pay-in shortage and that I should transfer the shares to my account by 10.00 AM on 20th September (Monday), or else there would be an auction.
So how is the auction price calculated? The price of the share these past few days has been:
15th:
Open: 140.25
H / L: 142.00 / 138.35
Close: 139.50
Avg : 139.62
16th:
Open: 139.40
H / L: 141.85 / 137.70
Close: 138.80
Avg : 140.07
17th:
Open: 139.05
H / L: 141.25 / 138.60
Close: 140.70
Avg : 140.13
20th:
Open: 141.25
H / L: 141.30 / 139.35
Close: 140.75
Avg : 140.13
21st:
Open: 142.00
H / L: 143.00 / 137.60
Close: 138.70
Avg : NA
I've understood what the auction is for, but can anyone give me a rough idea of what money I will gain / lose?
And shouldn't I be informed of a pay-out shortage on the same day so I don't sell the shares the next day?
Edit: The auction statement:
I've received the auction statement today (21st, Tuesday). It shows that the shares were auctioned at the rate of 149.10 per share. It also says "Your above mentioned purchase transaction has been Squared off at the rate of Rs.149.10".
So how many auctions take place - one for the person not delivering shares to me, and one for me not delivering them to someone else? Or is there only one auction? And have I made a profit or a loss?
Please help as I am totally confused.
Edit 2: Okay, I got another auction settlement statement today (22nd, Wednesday). It says the shares were sold at 140.30, which means Rs. 4209.00 + Penalty for shortage @ 1% = 42.09 + Securities Trans. Tax = 5.00. So the total comes to Rs. 4251.00, deducted from my account. This is less than the money that was credited to me, which means I have made a profit of Rs. 222?
On 15th September (Wednesday), I bought 50 shares of a company at 139.60. On the 16th, I sold them off at 141.25.
On the 17th (Friday), I received two emails from my broker, the first saying there was a Pay-out shortage and there would be an auction on T + 4 day. The second email said there was a Pay-in shortage and that I should transfer the shares to my account by 10.00 AM on 20th September (Monday), or else there would be an auction.
So how is the auction price calculated? The price of the share these past few days has been:
15th:
Open: 140.25
H / L: 142.00 / 138.35
Close: 139.50
Avg : 139.62
16th:
Open: 139.40
H / L: 141.85 / 137.70
Close: 138.80
Avg : 140.07
17th:
Open: 139.05
H / L: 141.25 / 138.60
Close: 140.70
Avg : 140.13
20th:
Open: 141.25
H / L: 141.30 / 139.35
Close: 140.75
Avg : 140.13
21st:
Open: 142.00
H / L: 143.00 / 137.60
Close: 138.70
Avg : NA
I've understood what the auction is for, but can anyone give me a rough idea of what money I will gain / lose?
And shouldn't I be informed of a pay-out shortage on the same day so I don't sell the shares the next day?
Edit: The auction statement:
I've received the auction statement today (21st, Tuesday). It shows that the shares were auctioned at the rate of 149.10 per share. It also says "Your above mentioned purchase transaction has been Squared off at the rate of Rs.149.10".
So how many auctions take place - one for the person not delivering shares to me, and one for me not delivering them to someone else? Or is there only one auction? And have I made a profit or a loss?
Please help as I am totally confused.
Edit 2: Okay, I got another auction settlement statement today (22nd, Wednesday). It says the shares were sold at 140.30, which means Rs. 4209.00 + Penalty for shortage @ 1% = 42.09 + Securities Trans. Tax = 5.00. So the total comes to Rs. 4251.00, deducted from my account. This is less than the money that was credited to me, which means I have made a profit of Rs. 222?
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