20% penalty. Please help.

[arvindkumarbin]

Hi, I am new to trading and using religare. I bought some stocks for 50 thousands. And those are delivered to my dp last week. I sold those stocks few days before. Now, my religare branch calls me and tell that I have to give them the authorization to use the stocks in DP account, else it will goes to auction and there will be 20% penalty in the total stock value ( ie 20% in 50k ). The reason that I am unable to give them the authorization form is, I lost it years before when I created that religare account ( no one from their office asked me to give that at that time or never stopped me purchasing or selling without giving that authorization.. now telling this at last minute. Deadline tomorrow morning 9:30 AM ).

Please tell me whether this 20% penalty is true? How I can avoid this.. If I apply for a new form it will take 10 days and then I can give authorization to sell from my dp. Is this possible.. I enquired a sharekhan branch, they tells no one can put 20% penalty just like that and auction it without your permission.

Please help me what I have to do now.

 

[adityasaraf007]

You must have got the Delivery Instruction Slips, which acts like a cheque for Demat Account. If you have not got it, then you must visit the branch where you have got your Demat Account and get it from there. Fill it up and submit it.

Next step is to submit the Authorization Form (Power of Attorney Form). This is required for smooth functioning. Otherwise, every time you sell the shares from your Demat A/c, you would have to fill up and submit the Delivery Instruction Slip to your broker.

And yes, if you do not submit the Instruction Slip by tomorrow, the shares would go for auction and you would have to bear the minimum penalty of 20%.

Hope this helps.

 

[arvindkumarbin]

Thank you. Is the 20% penalty in the price difference between my buy & sell price or in the total value of stock traded ( ie 20k if I that stock worth 80k ) ?