What are the options on short sale upon circuit breaker?

Discussion in 'Investors Grievances' started by MKS7947, Aug 14, 2010.

  1. MKS7947

    MKS7947 New Member

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    I short sold some shares of Raymond, that day circuit breaker applied and i could not square off. I was called by MOSL representative that if i could arrange the scrips of Raymond to cover up my short sale. I said "No, I am ready to bear to the loss." The next day I saw my bank A/c debited with almost 8 times of my expected loss. I called MOSL to know the reason, they said the position has gone into auction, and the rate charged for buying the scrip will be highest of any of the next 4 days, and brokerage would be for delivery. I said, why was not my position squared off at closing rate of that day when i was ready to bear the loss, the reply was that it is not possible since circuit breaker was applied and trade was halted for the day.
    Is MOSL saying right or just making excuses? I feel cheated and the anticipated loss seems much bigger than expected. Here the circuit breaker seems to offend me rather than protect me. Plz advise.
     
  2. mango

    mango New Member

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    Someone who faced such a problem kindly help out.

    A short in a stock which hits circuit fro 3 consecutive days and goes into auction. Huge loss which cannot be paid back by the client.

    Not much asset with the client for recovery.

    In this situation what can be the consequence can anyone help - anyone faced such a situation, anyones friend faced such a situation.

    Need help urgently.

    Thankyou
     
  3. Sagar009

    Sagar009 New Member

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    pleas Can you tell me Which Type Of Sher will Be goes in TO auction?
    Upercircuit breaker or Lower Cirucut Breaker?

    ANd aLso Can I Buy Today And Sell Tomorrow?
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