Need urgent Help on Auction/Short sell- Please assist!

khalidshab · #1 11th January 2008, 10:35 AM

Hi Friends,

I am really new to Stock exchange , last week on 2nd Jan 08 I have done some short selling of 8000 RNRL when the price was around 180 rs, as by mistake I forgot to square off, I was told by my Broker that you cant purchase these stoks next day and you stocks will go for auction.

Since many days I have been asking for details from my broket about the status and he didnt respond me with any clear answer.

Yesterday on 9th Dec I observed that 6 Lacs was deducted from my account, and when I ask my broker he says that you made this loss due to Audtion of your shares, but I am really suspicious that This amount is charged by NSE auction its the broker who is playing internally and charging me the highest possible rate.

As I assume that acution is usually on T+3 day and the prices on that day was around 220 and I have been charged 245/share

Would really appreciate if anyone can help me the way to track if this is really genuine deal by NSC or its the broker who is cheating with me.

rsalecha · #2 11th January 2008, 11:53 AM

It might be correct - as the Highest Price of the day when it is auctioned is considered that is T+3 's High price what ever it is and add 20% penalty to it. So even if it touched 220 then you need to add Rs 22/- and it makes 242/- per share + Service tax and other might make it to 245/-.

So beware before you plunge to short-selling. i had the same experience but with much lesser loss - I shorted HFCL and it went to Upper circuit making impossible for me to square off.

NILKANTH KORANNE · #3 11th January 2008, 07:04 PM

Thanks both of you for posting your experience. Others would learn a lesson.

y2j826 · #4 12th January 2008, 09:39 AM

6 lacs

, i loose 20k in 1 day cuz of this and i was scared . . .

anilpalan · #5 8th February 2008, 09:58 AM

Can Any One Guide Me As To If The Shares Are Auctioned For Short Sell, Is The Broker Bound To Give Me Exchange's Contract Note For The Same Or Has One To Rely On Broker's Own Note, As My Broker Has Just Given Me His Note Of Having Squared Off My Short Sell With Net Price Of Rs. 315 With No Brokerage/service Tax/stt Charges Debited Separately.

Anil Palan

yatishjain · #6 8th February 2008, 01:39 PM

If you are that interested in short selling, always prefer Future trading.

trakesht · #7 3rd March 2008, 04:47 PM

I hope this is the correct thread for posting this query..
Today I had bought 22 shares of PNB as intraday through motilal oswal..
I gave a square off order at 3.16 and 22 shares were subsequently squared off
now at 3.21 the system squared off 22 shares again

When I called up motilal, the person there said that one is not supposed to give orders after 3.10..and hence the 22 shares will go under auction with whatever associated penalties.

My query is ..shouldnt there be 1) either a safeguard at the brokers end to prevent orders after 3.10 or 2) the system shouldnt have squared off after i had manually done so?
Am I eligible to take this to the concerned agency in case I suffer any losses because of this?

This the log FYI

PNBEQ 22 546.9 12031.8 S INTRADAY 2008030353239538 52386453 NSE E1302343 03/03/2008 15:16:07
PNBEQ 22 549 12078 S INTRADAY 2008030353316014 52455626 NSE ADMIN 03/03/2008 15:21:51

darsh_goswami · #8 3rd March 2008, 04:56 PM

dear trakesht,..

sure u can ask to authorities about your querry. The best is to ask Motilal Oswal only for this. In case of they dont answer u, u can move further to consumer forum regarding this.

U first be sure about the agreement you signed with ur broker. if u have given him the authority to keep ur safeguard on then i think u wont be able to do anything further.

But what i can suggest you. rather then goin to any forum , simply pay for auctions. It wont hurt u more.

Regards,..
Darsh

trakesht · #9 3rd March 2008, 05:04 PM

Quote:

Originally Posted by darsh_goswami

dear trakesht,..

sure u can ask to authorities about your querry. The best is to ask Motilal Oswal only for this. In case of they dont answer u, u can move further to consumer forum regarding this.

U first be sure about the agreement you signed with ur broker. if u have given him the authority to keep ur safeguard on then i think u wont be able to do anything further.

But what i can suggest you. rather then goin to any forum , simply pay for auctions. It wont hurt u more.

Regards,..
Darsh

thanks darsh,
but can u pls clarify about the safeguard thing? is it power of attorney or smething like that?
and I think this would be a sizable amount(atleast for me) considering ~20% *22*550 =4000rs...
And this things have been happening quite frequently since the past few days, intraday orders getting converted to delivery etc..etc..
Theres a bit of principles also in this..
Wat are the time and cost involved in consumer redressal..any idea on whom to contact? and what are the procedures involved?

regards
Rakesh

uasish · #10 3rd March 2008, 07:33 PM

When there is a System to sq off ,they will never do it twice.Have you seen the Qty in Sell side in your Trade details .