Selling Before T+2 settlement

I had purchased some shares, and sold then the next day. But the broker called me up after 5 days that there was on pay-in for the shares which I had purchased, and as I had sold the same before pay-in, the amount would be deducted from my a/c till the pay-in is there, and afterwards credited back.

Can anyone explain this
Previously many time I have bought and sold before T+2 settlements but never come across this type of problem.

well, you...should tell,..... what type of shares ...btst or something else.
type of trasaction ...is it ....cash or f&o

if it is cash and not btst type ...you will be made to shell out hefty amount as fine for going short before having shares in your dp account..

regards
suba

share were Essaroil.

not sure what the rules are in NSE,BSE but free riding attracts penalties in US and other countries

http://invest-faq.com/cbc/trade-free-ride.html

for sure you have to settle with "real money"

Yes, you should check with your broker whether the BTST scheme is offered, for which scrips, and with what sort of conditions. Otherwise, you'll get hit badly.

Geojit has a list of about 300 most common stocks available for BTST (actually even till the day after). They take delivery rate brokerage, STT, etc. as well as "demat" charges of Rs. 11 per scrip sold.

in India settlement of F&O is done in cash and not by delivery of shares.

did you read question what he wrote...ok,let me ask you one question...can you sell cash (equity) shares next day of purchase...if yes,how and if no why not...

regards
suba

BTST,ATST

I have a query regards futures..

If u buy futures today u can sell anytime before expiry .Is my assumption correct ?
(Even before < than 3 days)

As I have already got the bad experience of Auction in Cash market I am learning futures for the same.

Raju

There is no auction in F&O,as In India every contract is settled in cash and no physical/electronic delivery is needed.
u can square up a future contract immediately(forget days,hours within minutes /seconds).
All outstanding contracts of the month are automatically settled on the expiry day of the month(last thursday of the month) at the closing price of the expiry day.