Indiabulls-Selling Stocks bought on Nse on Bse

arshadm · #1 10th May 2006, 12:13 PM

I have an account with indiabulls. Recently i tried selling one of the stocks i had. My Rm told me that this particular stock had been suspended from trading in NSE temperorily and that he cant sell the same stock on BSE as Indiabulls or me(i dont remember ) will go short on this stock on BSE.

Now Rm's arent supposed to know what arbitrage means? Cant stocks bought on NSE be sold on BSE and vice versa.

satej · #2 13th May 2006, 10:08 PM

hey im interested in opening a/c wit indiabuls, want ur firsthand comments on it. hows the software power indiabulls? is it necessary to purchase it or can i get it copied from existing IB customer like u? thnks

pkjha30 · #3 13th May 2006, 10:31 PM

Hi arshadm

I think your Rm is giving you some cock and bull story.
Companies are listed in different exchanges and thier stocks are traded in such exchanges. It can not be traded in exchangex where the company is not listed. One company may be listed in one or more exchanges including regional exchanges and bse/nse. Stocks brought on one exchange can be sold in another exchange. In demat for it is fungible i.e. shares can not be distinguished by their folio number. The whole lot will carry the same number and IT department applies FIFO method i.e. first in first out as per the date to determine their holding period for capital gains purpose. As far as exchanges are concernec they are not concerned with which one of them if going in or out. Like money one 100 rupee note is as good as another 100 rupee note and while exhnaging you dont distinguish by numbers.

So what is brought on nse can be sold on bse and vice versa provided it is listed on both exchanges. Prices are different in both exchanges(Could be same as well) depending on demand / supply and market conditions and some lag in market reactions in both exchanges. This difference in price gives rise to arbitrage. You can have both exchanges connected by different computers or on the same computer and do buy/sell operation based on prices and earn minute margins.

Short is somthing different. If you have shares and want to sell it why do you want to short? Just sell it in bse. If you don't have and want to go short, do that as per rules of exchanges and your broker.

Normally if one company is banned in one share other also bans it. But may not happen. So you can sell where it is not banned.

Hope above will clear some doubts.

Pankaj

biyasc · #4 6th August 2007, 03:13 PM

Quote:

Originally Posted by pkjha30

Hi arshadm

I think your Rm is giving you some cock and bull story.
Companies are listed in different exchanges and thier stocks are traded in such exchanges. It can not be traded in exchangex where the company is not listed. One company may be listed in one or more exchanges including regional exchanges and bse/nse. Stocks brought on one exchange can be sold in another exchange. In demat for it is fungible i.e. shares can not be distinguished by their folio number. The whole lot will carry the same number and IT department applies FIFO method i.e. first in first out as per the date to determine their holding period for capital gains purpose. As far as exchanges are concernec they are not concerned with which one of them if going in or out. Like money one 100 rupee note is as good as another 100 rupee note and while exhnaging you dont distinguish by numbers.

So what is brought on nse can be sold on bse and vice versa provided it is listed on both exchanges. Prices are different in both exchanges(Could be same as well) depending on demand / supply and market conditions and some lag in market reactions in both exchanges. This difference in price gives rise to arbitrage. You can have both exchanges connected by different computers or on the same computer and do buy/sell operation based on prices and earn minute margins.

Short is somthing different. If you have shares and want to sell it why do you want to short? Just sell it in bse. If you don't have and want to go short, do that as per rules of exchanges and your broker.

Normally if one company is banned in one share other also bans it. But may not happen. So you can sell where it is not banned.

Hope above will clear some doubts.

Pankaj

hi,

is that possible to buy at nse & sell at bse or vice versa. i just ant to square up my positions on intraday basis.

sushil00033 · #5 6th August 2007, 06:06 PM

can i squre off nifty options call within the expiry period ( before 30 august )

swagat86 · #6 6th August 2007, 10:23 PM

Quote:

Originally Posted by sushil00033

can i squre off nifty options call within the expiry period ( before 30 august )

Yes u can,

but u cant excercise them. Only sq off.

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