Short selling

#1
Hi,

I have one question about short selling.

If I do the 'shortsell' of some shares of a company and don't buy it on same day. What will happen in that case.

Please note I am using sherkhan account

Please suggest.
 
#6
Hi, let me tell you another thing that in HDFCSec .... there is a one product known as margin trading in that they have the cut off timing upto 3:00P:M whether one has done buying or shortselling by which positions will be squarred off @ 3:00P:M @ current market price.
 
#7
I sold 10 share of vipind and 10 share of edelweiss using shortsell yesterday and didn't buy back..seems auction will happen now...

Anyone know what happens in auction...and how much loss i will have in this scenario..

thanks all...
 
#8
An auction is resorted to when there is a default in delivery by a broker. An auction is the exchanges mechanism through which, in a settlement, a buyer broker gets shares in the eventuality of default by the selling broker. This default occurs when a short seller fails to square up the position, or a seller fails to deliver shares on time, or a seller delivers bad/wrong shares.

The whole process of this auction event can be illustrated as under:

An auction is a mechanism utilised by the exchange to fulfill its obligation towards the buying trading members. Thus, when the selling broker fails to deliver the shares, exchange conducts an open market purchase by way of an open auction and the shares so bought through the auction are delivered to the buying broker.

If the shares could not be bought in the auction i.e. if the shares were not offered for sale in the auction, the exchange squares up the transaction as per SEBI guidelines. The guideline in force stipulates that the transaction is squared up at the highest price on the NSE from the relevant trading period till the auction day or at 20% above the last available closing price on the NSE on the auction day, whichever is higher. The pay-in and pay-out of funds for auction square-up is held along with the pay-out for the relevant auction.
 
#9
Need urgent advise on the same.

Hi,
The same thing happened to me a couple of days back.
I short sold 300 shares of HMVL at 188 on 21st july 2010 and today it is trading at 186 with day's high of 197 and 184 as low. Any one who can advise in such a scenario with Sharekhan.
They have also told me that the shares will be bought by them on 23july (today) from the auction mkt and if they fail to o it then NSE would be oing it on monay and there would penalties as well.

I fear Sharekhan might manipulate things an say that they bought it the highest price eventhough it is trading at 180 levels the whole day.
:(
Any actions that I can take ???
 
#10
Guys,

My fear has come true as I got a call from sharekhan telling me that the HMVL shares have been bought back at 203.25.
According to me this is a case of clear cheating by sharekhan. The share has a high of 197.2 for the complete day i.e. 23 july. Also not even the 52 week high (198) is close to 203.
I understand that there are brokerage of .22% and taxes but still this amount is out of proportion.

Any body who experienced the same sort of a problem ??

I am planning to sue sharekhan for this if they pursue with such fraudulent acts.

I need all support from friends here. Your advise and support would be highly appreciated.
 

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