Short selling
- Thread starter djain3
- Start date
This is from the NSE..
Shortages Handling
On the settlement day NSCCL accepts pay-in of securities made by members through depositories and identifies the shortages. The members are debited by an amount equivalent to the securities not delivered and valued at a valuation price. This is known as valuation debit. For all such short deliveries NSCCL conducts a buying-in auction on the day after the pay-out day (T+3 day) through the NSE trading system.
If the buy-in auction price is more than the valuation price, the CM is required to make good the difference. All shortages not bought-in are deemed closed out.
Funds and securities shortages
Members failing to fulfill their funds obligations (all markets including the valuation debit raised on account of securities shortages) and members failing to fulfill their securities deliverable obligations to Clearing Corporation would be subjected to the following penalty structure to Clearing Corporation shall be subjected to the following penalty structure:
S. No Type of Non-fulfillment Penalty Charge % per day
1) Funds shortages 0.07%
2) Security Shortages 0.05%
Do check it out in detail...
Shortages Handling
On the settlement day NSCCL accepts pay-in of securities made by members through depositories and identifies the shortages. The members are debited by an amount equivalent to the securities not delivered and valued at a valuation price. This is known as valuation debit. For all such short deliveries NSCCL conducts a buying-in auction on the day after the pay-out day (T+3 day) through the NSE trading system.
If the buy-in auction price is more than the valuation price, the CM is required to make good the difference. All shortages not bought-in are deemed closed out.
Funds and securities shortages
Members failing to fulfill their funds obligations (all markets including the valuation debit raised on account of securities shortages) and members failing to fulfill their securities deliverable obligations to Clearing Corporation would be subjected to the following penalty structure to Clearing Corporation shall be subjected to the following penalty structure:
S. No Type of Non-fulfillment Penalty Charge % per day
1) Funds shortages 0.07%
2) Security Shortages 0.05%
Do check it out in detail...
This is from the NSE..
Shortages Handling
On the settlement day NSCCL accepts pay-in of securities made by members through depositories and identifies the shortages. The members are debited by an amount equivalent to the securities not delivered and valued at a valuation price. This is known as valuation debit. For all such short deliveries NSCCL conducts a buying-in auction on the day after the pay-out day (T+3 day) through the NSE trading system.
If the buy-in auction price is more than the valuation price, the CM is required to make good the difference. All shortages not bought-in are deemed closed out.
Funds and securities shortages
Members failing to fulfill their funds obligations (all markets including the valuation debit raised on account of securities shortages) and members failing to fulfill their securities deliverable obligations to Clearing Corporation would be subjected to the following penalty structure to Clearing Corporation shall be subjected to the following penalty structure:
S. No Type of Non-fulfillment Penalty Charge % per day
1) Funds shortages 0.07%
Do check it out in detail...
2) Security Shortages 0.05%
Close-out Procedures
Closing out in the case of failure to give delivery for Normal Market
Close out will be at the highest price prevailing in the NSE from the day of trading till the auction day or 20% above the official closing price on the auction day, whichever is higher.
Closing out in case of failure to give delivery for ‘IL’ and ‘BL’ Market Deals
Any shortages in the ‘Inter Institutional’ – IL segment and ‘Block trades’ – BL window will be directly closed-out on the settlement at the highest price prevailing in the Exchange from the day of trading till the T+1 day or 20% above the official closing price on the T+1 day, whichever is higher, or as declared from time to time.
Closing out in case of failure to give delivery for Trade-for-trade – Surveillance (TFT-S) deals
Any shortages in TFT-S will be directly closed-out on the settlement at the highest price prevailing in the Exchange from the day of trading till the T+1 day or 20% above the official closing price on the T+1 day, whichever is higher, or as declared from time to time.
Closing out in case of failure to give delivery in Auction Market
When the auction seller fails to deliver in part or full on auction pay-in day, the deal will be closed out at the highest price prevailing in the NSE from the day on which the trade was originally executed till the day of closing out or 20% over the official closing price on the close out day whichever is higher and will be charged to the auction seller unless otherwise specified.
Compulsory Close-out of securities under Corporate Action
In cases of securities having corporate actions and no 'no-delivery period' for the corporate action, all cases of short delivery of cum transactions which cannot be auctioned on cum basis or where the cum basis auction pay out is after the book closure / record date, would be compulsory closed out at higher of 10% above the official closing price on the auction day or the highest traded price from first trading day of the settlement till the auction day.
Closing out in the case of non rectification/replacement for bad delivery
Shortages are closed are at the highest price prevailing in the NSE from the day of trading till the day of the closing out or 20% above the official closing price on the auction day, whichever is higher.
Closing out in the case of non rectification/replacement for objection cases
Close out in the case of non rectification / replacement for objection cases will be at 20% above the official closing price on the auction day.
Rectified / Replaced bad deliveries reported as bad delivery (Rebad delivery)
Rectified / replaced shares reported as bad delivery (Rebad delivery) will be closed out at the highest price prevailing in the NSE from the day on which the trade was originally executed till the day of the closing out or 10% above the official closing price on the auction day whichever is higher.
Company objection cases reported as bad delivery
Rectified /replaced company objection reported as bad delivery will be closed out at 10% above the official closing price on the auction day.
Close out price for deleted security
Security for which trading has been discontinued on the Exchange close out will be the last 26 weeks average trade price on the exchange with a close out mark up of 20%.
Close out price for bonds
In case of failure to give delivery, non rectification/replacement of bad delivery, rectified/replaced bad delivery subsequently reported as re-bad, auction non-delivery, and auction delivery reported as bad delivery, closing out price will be the highest rate prevailing on the Exchange from the first day of the relevant trading period till the day of closing out or 5% over the official closing price on the auction day, whichever is higher for bonds, debentures assigned a credit rating of triple A and above. For the other debentures and the bonds without the triple A credit rating, the close out mark up of 20% will be applicable.
In case of non rectification / replacement of company objection and rectified/replaced company objections reported as bad delivery, closing price will be 5% over the official closing price on the auction day.
Closing Out for LPM Deals
In the case of failure to give delivery close out will be at 20% over the actual trade price. In the case of non rectification/replacement for bad delivery close- out will be at 10% over the actual trade price.
In the case of non rectification/replacement for objection cases close-out will be at 20% above the official closing price in regular market on the auction day.
Shortages Handling
On the settlement day NSCCL accepts pay-in of securities made by members through depositories and identifies the shortages. The members are debited by an amount equivalent to the securities not delivered and valued at a valuation price. This is known as valuation debit. For all such short deliveries NSCCL conducts a buying-in auction on the day after the pay-out day (T+3 day) through the NSE trading system.
If the buy-in auction price is more than the valuation price, the CM is required to make good the difference. All shortages not bought-in are deemed closed out.
Funds and securities shortages
Members failing to fulfill their funds obligations (all markets including the valuation debit raised on account of securities shortages) and members failing to fulfill their securities deliverable obligations to Clearing Corporation would be subjected to the following penalty structure to Clearing Corporation shall be subjected to the following penalty structure:
S. No Type of Non-fulfillment Penalty Charge % per day
1) Funds shortages 0.07%
Do check it out in detail...
2) Security Shortages 0.05%
Close-out Procedures
Closing out in the case of failure to give delivery for Normal Market
Close out will be at the highest price prevailing in the NSE from the day of trading till the auction day or 20% above the official closing price on the auction day, whichever is higher.
Closing out in case of failure to give delivery for ‘IL’ and ‘BL’ Market Deals
Any shortages in the ‘Inter Institutional’ – IL segment and ‘Block trades’ – BL window will be directly closed-out on the settlement at the highest price prevailing in the Exchange from the day of trading till the T+1 day or 20% above the official closing price on the T+1 day, whichever is higher, or as declared from time to time.
Closing out in case of failure to give delivery for Trade-for-trade – Surveillance (TFT-S) deals
Any shortages in TFT-S will be directly closed-out on the settlement at the highest price prevailing in the Exchange from the day of trading till the T+1 day or 20% above the official closing price on the T+1 day, whichever is higher, or as declared from time to time.
Closing out in case of failure to give delivery in Auction Market
When the auction seller fails to deliver in part or full on auction pay-in day, the deal will be closed out at the highest price prevailing in the NSE from the day on which the trade was originally executed till the day of closing out or 20% over the official closing price on the close out day whichever is higher and will be charged to the auction seller unless otherwise specified.
Compulsory Close-out of securities under Corporate Action
In cases of securities having corporate actions and no 'no-delivery period' for the corporate action, all cases of short delivery of cum transactions which cannot be auctioned on cum basis or where the cum basis auction pay out is after the book closure / record date, would be compulsory closed out at higher of 10% above the official closing price on the auction day or the highest traded price from first trading day of the settlement till the auction day.
Closing out in the case of non rectification/replacement for bad delivery
Shortages are closed are at the highest price prevailing in the NSE from the day of trading till the day of the closing out or 20% above the official closing price on the auction day, whichever is higher.
Closing out in the case of non rectification/replacement for objection cases
Close out in the case of non rectification / replacement for objection cases will be at 20% above the official closing price on the auction day.
Rectified / Replaced bad deliveries reported as bad delivery (Rebad delivery)
Rectified / replaced shares reported as bad delivery (Rebad delivery) will be closed out at the highest price prevailing in the NSE from the day on which the trade was originally executed till the day of the closing out or 10% above the official closing price on the auction day whichever is higher.
Company objection cases reported as bad delivery
Rectified /replaced company objection reported as bad delivery will be closed out at 10% above the official closing price on the auction day.
Close out price for deleted security
Security for which trading has been discontinued on the Exchange close out will be the last 26 weeks average trade price on the exchange with a close out mark up of 20%.
Close out price for bonds
In case of failure to give delivery, non rectification/replacement of bad delivery, rectified/replaced bad delivery subsequently reported as re-bad, auction non-delivery, and auction delivery reported as bad delivery, closing out price will be the highest rate prevailing on the Exchange from the first day of the relevant trading period till the day of closing out or 5% over the official closing price on the auction day, whichever is higher for bonds, debentures assigned a credit rating of triple A and above. For the other debentures and the bonds without the triple A credit rating, the close out mark up of 20% will be applicable.
In case of non rectification / replacement of company objection and rectified/replaced company objections reported as bad delivery, closing price will be 5% over the official closing price on the auction day.
Closing Out for LPM Deals
In the case of failure to give delivery close out will be at 20% over the actual trade price. In the case of non rectification/replacement for bad delivery close- out will be at 10% over the actual trade price.
In the case of non rectification/replacement for objection cases close-out will be at 20% above the official closing price in regular market on the auction day.
I purchased IFCI shares at 63.5, 160 nos, And the next day the broker said that the shares were not credit to my account, Today the broker called me and told me that there was an auction and I was credited with 67.62rs per share.
Does it mean that I will get the difference amount credited to my account ?? Is this correct or will the exchange get this amount.
Can some one explain this with one example.
Does it mean that I will get the difference amount credited to my account ?? Is this correct or will the exchange get this amount.
Can some one explain this with one example.
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