Short sale auction market - Kotak broking

[anubhavkaul]

Yesterday, I shorted 300 SKS Microfinance at Rs. 711.5
I had taken margin to short the stock and forgot to square off by end of day yesterday.

Today, when I'm trying to buy it back to square off the position, my broker - Kotak, is saying that the position cannot be squared off and will go into something called an 'auction market' and will be settled on T+2 (?).

They are also saying that the price for squaring off may be anything in the 'auction market' and that I will have no control over this.

Has anyone heard of this before? What can I do to avoid this?

I'm sitting on a potential gain on Rs. 4,000 but can't exercise it because of the broker. Please advise.

 

[OptionScalper]

heard..? everybody experienced this buddy ..on T+4 day you will get your auction bill...

 

[gci100]

I have bitter experience with this “auction”. to avoid this


1)Never keep your short position after 3PM


2)If any trouble occurs call your broker to square off the position.


3)If you want to carry your short position overnight trade in future.

 

[rajeabc]

Yesterday, I shorted 300 SKS Microfinance at Rs. 711.5
I had taken margin to short the stock and forgot to square off by end of day yesterday.

Today, when I'm trying to buy it back to square off the position, my broker - Kotak, is saying that the position cannot be squared off and will go into something called an 'auction market' and will be settled on T+2 (?).

They are also saying that the price for squaring off may be anything in the 'auction market' and that I will have no control over this.

Has anyone heard of this before? What can I do to avoid this?

I'm sitting on a potential gain on Rs. 4,000 but can't exercise it because of the broker. Please advise.

how much money you lost ?