Short Selling

I am a newbie so please pardon me if i ask a silly question

Is short selling allowed for only on intraday basis?

does it mean i can hold short position for only on intra day or i can hold for many days?

Please can anyone explain ?

Thanks in advance

Hi,
Short selling in equities is allowed only on intraday and you have to sqaure up within 3.30 or else the shares will go for auction and you will incur heavy loss. its my personal experience since I dint ask like you before I started trading. But if you short sell in futures and options segments then you can hold the same till the day of expiry. Further technical things I dont know.

thank you very much sir

i read something about T+2 and T+3 but i didnot understand much

Sir?????:annoyed:
Regards,
usha

Settlements are on T+2 basis. Once in while they will change the settlement day based on holidays, but T+2 is the usual pattern. That implies that if you short sell on Monday, you need to have shares in your account on Wednesday.

This gives you a window of opportunity to short sell on Monday and somehow get shares in your account by Tuesday to have a happy settlement. However, it is easier said than done. You can not buy on Tuesday as they will hit your account on Thursday after they settle. The thing which could happen is when you have either given a demat request and are waiting for it to hit your account, or you have given an offline transfer (from another account) and waiting for that to hit those account. There may be others, but only in those extreme circumstances will you be able to short sell today and meet the T+2 settlement requirements without going into auction.