Rules regarding Buy Today Sell Tomorrow

Hi,

I had bought 24 shares of infratel on 18th may @ 415and sold the same shares on 19th may @ 430. Then after one day I received sms form my broker saying that there was short delivery of shares. Then agian I received sms form sharekhan that the share I sold on 19th may was pending. Again I received sms saying that auction price of the share is 439. According to my understanding the auction was done to cover my short delivery and I had to bear loss equivalent to difference between sale price and auciton price i.e ( 430-439) and should get delivery of share @ 415. But when I checked my account it shows that I hold share @ 439 and I have a profit of around 15 ( 430-415,for BTST transaction). Is there anything I am missing?

And also between 18th may and 19th may I had bought 4 shares. Among these 4 shares there was short delivery of 3 shares. Was I having a bad week or does this happen frequently. Because if this is how it works I don't think BTST is possible.

I am new to trading and can't make sense of all these. Any help will be greatly appreciated.

Thank yoy!
Bishwa Nath Upreti

Once a share is bought it can be sold in two ways;
1.The same day in which case it is called intra day trading,
2. Wait till is reflected in your Demat account ( normally after T+2 days) and then sell it.
In your case share was not reflected in your demat a/c and you have sold it hence the action by broker. The share you purchased will be shown in your demat a/c in T+2 days and then you can sell them at your comfortable time.

It is always good to sell shares when they reflect in your demat account, otherwise you may incur heavy loss by way of auction.

Some of the brokers allow sell of shares next day. These sells are to be reflected against obligation (shares bought but not credited to demat). Then the broker takes care of the delivery of shares himself and makes up your account on net basis. But their brokerage rates are hefty and not bearable.

When brokerage will be high in BTST then why go for it.

It might take take time to reflect in the demat account but doesnt it mean that we owe that share and we can sell it whenever we want?

But you can not sell a share until it is reflected in your demat. You posses a share only when it is in demat and unless it is in demat, how can you make a delivery to the buyer.

You can actually sell the share the very next day. You first have to confirm with your brokers which shares are in the BTST list. Your broker takes care of it.

The problem occurs when their is a shortage from the first transaction.

If you go into your account, to your bought shares and select "square off" option, that should ensure that those same shares are being squared off and that a fresh short position is not created. Isn't that right folks? Would like to confirm this.