Some basic Qs on Short Selling -
1- Is there any special requirement other than dmat a/c,bank a/c through which i normally purchase or sell ?
2 - As i have to square off the share same day,If i can not for obvious reasons that share jump up very high.whats the fine/charge/fee/penalty.
3 - Whats the brokerage for short selling ?
Paddy
any one who can buy shares...can sell short..(all local indian citizens )
if you don't square off on the same day ...shares will be bought in auction and you are fined by 20 percent of the high price of that stock on that day.
auction price ..+ 20percent of stocks high price of that day ...is the amount you need to pay ..obviously you will end up with huge loss.
safe method is ........you own 100 shares of rpl in your dp...you can sell them off with normal order ...(shorting ) ...if price jumps too high ..u leav your shares ..that is let it go on delivary. later you can buy back share when you find good price again on any day and take delivary of those share..
all in all ...just know ...go short on number of shares you own in your dp.
this will protect you if price jumps too high on that day.
also ...minor loss to buying back is need to be consider...some times taking small loss is worth than losing shares in dp.
regards
suba