what happens when udont get ur delivery shares on time?

AmritaBasu · #1 27th September 2008, 10:39 AM

My broker tells me that they cant give me the 100 Bata shares as they are short. They will be giving them to me by monday or tuesday.My question is, since they deduct interest at 16% for a Re1 short in margin on anyday , as per rules of sebi do they owe me any interest/ penalty whatever. They have deducted the money for Bata already.Pls advise.

pakatil · #2 27th September 2008, 02:13 PM

Quote:

Originally Posted by AmritaBasu

My broker tells me that they cant give me the 100 Bata shares as they are short. They will be giving them to me by monday or tuesday.My question is, since they deduct interest at 16% for a Re1 short in margin on anyday , as per rules of sebi do they owe me any interest/ penalty whatever. They have deducted the money for Bata already.Pls advise.

Normally T+1 is settlement and you get delivery on T+2. When seller defaults on T+1, it will go to Auction on T+3 and you get delivery on T+4 or at least on T+5.

Whether SEBI has any compensation for Buyer, I am not sure.

Cheers

vpsarathy · #3 27th September 2008, 04:26 PM

Quote:

Originally Posted by pakatil

Normally T+1 is settlement and you get delivery on T+2. When seller defaults on T+1, it will go to Auction on T+3 and you get delivery on T+4 or at least on T+5.

Whether SEBI has any compensation for Buyer, I am not sure.

Cheers

Amrita/pakatil,

Brokers will always squeeze clients for money. They will never pay you a pie even if it is your legal right? Twicw delivery of HLL & BBY Dyeing shares were delayed in delivery by 7 days. My Broker (sharekhan) just informed me not to sell these shares until I recieve them. Thats all. Nothing more.

vps

vpsarathy · #4 27th September 2008, 04:31 PM

Quote:

Originally Posted by AmritaBasu

My broker tells me that they cant give me the 100 Bata shares as they are short. They will be giving them to me by monday or tuesday.My question is, since they deduct interest at 16% for a Re1 short in margin on anyday , as per rules of sebi do they owe me any interest/ penalty whatever. They have deducted the money for Bata already.Pls advise.

Amrita,

My Relationship Manager at Sharekhan told me they charge 16% per month as interest not 16% p.a.

This happens if you transfer funds from DP to Margin and are unable to transfer back same day due to losses you faced.

vps

AmritaBasu · #5 28th September 2008, 11:53 AM

Where can I complain abt such shortage in delivery? If we have to pay for any delay why shldnt they have to pay too??pls advise. And hi vps

vpsarathy · #6 28th September 2008, 01:43 PM

Quote:

Originally Posted by AmritaBasu

Where can I complain abt such shortage in delivery? If we have to pay for any delay why shldnt they have to pay too??pls advise. And hi vps

Amrita,

hi!
I don't know.. SEBI I think bcuz brokers are all cheats.
vps

jdm · #7 28th September 2008, 01:52 PM

Quote:

Originally Posted by AmritaBasu

Where can I complain abt such shortage in delivery? If we have to pay for any delay why shldnt they have to pay too??pls advise. And hi vps

shortage means the person from whom you have bought the shares (yup you do not buy it from your broker but from another person somewhere in some part of this world, the broker is just a mediaum) has failed to deliver the shares. the exchage i.e. nse or bse, as per rules and regulation penalise him for his default and rewards you for your lost oppurtinity.

basically you should get back your money and the penalty that the exchange charges the seller(the person who is liable to deliver the shares) as per the rules of the land.

errant broker usually buys back the shares after some days and delivers it to gullible clients (in this case its you) and pockets the penalty which is illegal. you can approach sebi or the exchange (nse or bse) for any redressal. just threat your broker that you will take the matter to the regulators and they will fall in line.

vasa1 · #8 28th September 2008, 08:33 PM

Quote:

Originally Posted by jdm

shortage means the person from whom you have bought the shares (yup you do not buy it from your broker but from another person somewhere in some part of this world, the broker is just a mediaum) has failed to deliver the shares. the exchage i.e. nse or bse, as per rules and regulation penalise him for his default and rewards you for your lost oppurtinity.

basically you should get back your money and the penalty that the exchange charges the seller(the person who is liable to deliver the shares) as per the rules of the land.

errant broker usually buys back the shares after some days and delivers it to gullible clients (in this case its you) and pockets the penalty which is illegal. you can approach sebi or the exchange (nse or bse) for any redressal. just threat your broker that you will take the matter to the regulators and they will fall in line.

I think, as you mentioned, if the counterparty does not deliver on time, you should get a contract note paying you at least part of the penalty. Ultimately, you will get delivery.

My friend who has an account with Asit C. Mehta has got quite a few payments as a result of these auctions. Sadly, my broker, Geojit, has never paid me this way

, even though I sometimes don't get prompt delivery of shares I purchase.

SavantGarde · #9 30th September 2008, 09:53 PM

Hi Amrita,

If You Do Not Get Delivery You Have To Receive A Close Out Contract On T+3 Which Would Normally Give You 20% + On The Auction Rate On That Day.

Tell Your Broker You Are Going To The Investor Grievance Cell OfThe Exchange Depending On Where Your Earlier Contract Of Buying Had Been Executed (BSE or NSE)

If The Broker Is Found Not Conforming To The Rules He Will Most Probably Be Fined Rs.500 Per Day Till He Has Sorted This With You As Per The Exchange Rules.

I Would Suggest Be Very Firm With Your Broker & Don't Settle For Anything Less Than The High Price Of T+3 & 20% Of That As Your Reward.

Many Brokers Buy The Short Sell & Vredit It To The Client's Account But They Pocket All The Benefit Arsiing From The Close Out Which Is Not Legal On Their Part.

By The Way Any Penalty Charged By The Exchange Is Also Payable To You

Happy & Safe Investing

SavantGarde

Quote:

Originally Posted by AmritaBasu

My broker tells me that they cant give me the 100 Bata shares as they are short. They will be giving them to me by monday or tuesday.My question is, since they deduct interest at 16% for a Re1 short in margin on anyday , as per rules of sebi do they owe me any interest/ penalty whatever. They have deducted the money for Bata already.Pls advise.

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