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P

punterji

Member
#1
#1
Hi All,

I had 15 shares of Kotak Mahindra Bank, and i was assuming that i had 50 shares of them. So i placed a sell order for 50 shares today. 20 @ 395INR and 30 @ 415 INR. These sell orders have been traded, but i had only 15 shares. Will the orders get cancelled or do i need to do something about this.

Thanks in advance,
Vijay
 
P

punterji

Member
#3
#3
I have checked the order status and it shows that the 50 shares are in "TRADE" status. Unable to cancel the order either. Dropped a mail to the Cust Care, hope they dont charge me any penalty.

Thanks,
VJ
Bullet said:
There is a shortage of 35shares - your order must not be traded.
Why dont you check your trade book?
Click to expand...
 
S

swagat86

Active Member
#4
#4
If the order has been executed without ur shares being in the A/c u will need to go for Auction. That incurs 12% fine plus the value of shares u dont hav in ur DP a/c. Pls confirm this from ur customer service. Which broker u use ????????
 
P

punterji

Member
#5
#5
Thanks swagat. I use Kotak Securities.

swagat86 said:
If the order has been executed without ur shares being in the A/c u will need to go for Auction. That incurs 12% fine plus the value of shares u dont hav in ur DP a/c. Pls confirm this from ur customer service. Which broker u use ????????
Click to expand...
 
S

smanimdu

New Member
#6
#6
dear punterji,
in kotak securities they dont differentiate between intraday or delivery trade. i myself met with such an incident days before. while some brokers like indiabulls, if you sell more then what you have an error message will be displayed. in kotak securities the share details are maintained separately in back office. thats the problem.
smanimdu
 
A

AbhiRao

New Member
#7
#7
Hi Punterji,
I am sure any trading software would check for your demat balance or recievable balance before you place a sell order.You must have chosen "Short Sell" option which means you can sell shares even if you do not have enough balance in your DP account.But in this case you will have to ensure that your positions are squared off before the market closes.

Looks like in your case your about 35 shares short.Now what happens.
For this your broker will have to buy the 35 shares from what is known as "Auction Market".

You might think what is the big deal if the balance shares have to be bought at Auction Market.Your broker is entitled to buy it at much higher rate (with the limit of circuit as specified by exchange).In fact even if he buys at a normal rate he can charge you higher.

Say for example if Kotak Mahindra Bank was trading on 29th Dec 2006 at say 399Rs , it can be bought for you by your broker on 02Jan 2007 @ 399+19.95 as the circuit limit for Kotak is 5%

Having said this your broker need not charge this much(Of course it cannot be less than the market price the next day). For example in my case when I went short on mirchandani electronics( I short sold @ 19Rs) , my broker(sharekhan) bought it in the auction market the next day at 19.50(which was actually the market price the next day..though they could have told me that they bought it much higher rate)

Hope you got this funda.

Best Regards,
Abhi
 
Last edited:
P

punterji

Member
#8
#8
Hi Abhi,

Thank you very much for clearing the confusion. I shall be careful in placing the orders next time.

Have a nice day and Happy new year ahead.

VJ

AbhiRao said:
Hi Punterji,
I am sure any trading software would check for your demat balance or recievable balance before you place a sell order.You must have chosen "Short Sell" option which means you can sell shares even if you do not have enough balance in your DP account.But in this case you will have to ensure that your positions are squared off before the market closes.

Looks like in your case your about 35 shares short.Now what happens.
For this your broker will have to buy the 35 shares from what is known as "Auction Market".

You might think what is the big deal if the balance shares have to be bought at Auction Market.Your broker is entitled to buy it at much higher rate (with the limit of circuit as specified by exchange).In fact even if he buys at a normal rate he can charge you higher.

Say for example if Kotak Mahindra Bank was trading on 29th Dec 2006 at say 399Rs , it can be bought for you by your broker on 02Jan 2007 @ 399+19.95 as the circuit limit for Kotak is 5%

Having said this your broker need not charge this much(Of course it cannot be less than the market price the next day). For example in my case when I went short on mirchandani electronics( I short sold @ 19Rs) , my broker(sharekhan) bought it in the auction market the next day at 19.50(which was actually the market price the next day..though they could have told me that they bought it much higher rate)

Hope you got this funda.

Best Regards,
Abhi
Click to expand...
 
S

supaTrade

Active Member
#9
#9
So if my broker buys the shares at auction, do i get a delivery or only the money will be charged?

AbhiRao said:
Hi Punterji,
I am sure any trading software would check for your demat balance or recievable balance before you place a sell order.You must have chosen "Short Sell" option which means you can sell shares even if you do not have enough balance in your DP account.But in this case you will have to ensure that your positions are squared off before the market closes.

Looks like in your case your about 35 shares short.Now what happens.
For this your broker will have to buy the 35 shares from what is known as "Auction Market".

You might think what is the big deal if the balance shares have to be bought at Auction Market.Your broker is entitled to buy it at much higher rate (with the limit of circuit as specified by exchange).In fact even if he buys at a normal rate he can charge you higher.

Say for example if Kotak Mahindra Bank was trading on 29th Dec 2006 at say 399Rs , it can be bought for you by your broker on 02Jan 2007 @ 399+19.95 as the circuit limit for Kotak is 5%

Having said this your broker need not charge this much(Of course it cannot be less than the market price the next day). For example in my case when I went short on mirchandani electronics( I short sold @ 19Rs) , my broker(sharekhan) bought it in the auction market the next day at 19.50(which was actually the market price the next day..though they could have told me that they bought it much higher rate)

Hope you got this funda.

Best Regards,
Abhi
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