Short selling penalty

Hello friends,

I am new to intraday trading.On 5 november 2010 i did short selling but was not able to square it off at the close of the day.So may I know what are the consequences that i have to face? what are the penalty?Can i opt for the buy cover 1 day later?I have an demat account opened with angel broking.Please help me out friends , i am in very much confusion?

I think you should be able to cover it the next day, one of my friends accidentally did it, and had called up his broker to explain to him that he will make sure to cover the position the next day, and was allowed to do that. He was with IIFL

Depends which category the stock is in AND whether your broker allows it.

Normally if he does not allow it , then a short sell goes into auction and is bought back by your broker at 10% above the highest quote of the day when it comes up for auction .That is the NSE rule.

So pray hard that the stock has gone down by the time it comes up for auction ( 3rd day i think from the day of short sell )

Why one broker can provide the facility of squaring off the next day and another cannot? Aren`t there any standard norms set by the controlling authorities?