Rules Regarding Buying and selling?

[vedvyas]

Dear Seniors, I'm trying to learn equity trading and have many doubts and confusions.

Plz throw some light on these points:

(i)If i buy 100 shares of xyz company,when can i sell them? because i see some terms like T+2 and T+5. so should i wait for shares to be in my DMat account before selling them? Plz guide me about the rules and procedure.

(ii)I called sharekhan guy for account openning. He told me that in sharekhan there is nothing like intraday or delivery,you just buy and if you sell them on the same day then this is Intraday otherwise that is delivery? Is it true?

(iii)He also told me that they give margin for T+5 days. Is he correct? Plz guide me.

thanks.
Vedvyas

 

[bunny]

(i)If i buy 100 shares of xyz company,when can i sell them? because i see some terms like T+2 and T+5. so should i wait for shares to be in my DMat account before selling them? Plz guide me about the rules and procedure.

You can sell them on the same day(intraday) OR if you don't sell them on that same day, then you must wait for the shares to be delivered in your DEMAT account. This delivery process takes T+2 days. If you sell before you get the delivery, it is called short-sell.

I called sharekhan guy for account openning. He told me that in sharekhan there is nothing like intraday or delivery,you just buy and if you sell them on the same day then this is Intraday otherwise that is delivery? Is it true?

In delivery, you have it wait for T+2 days after buying. So if you buy on Monday and decide to take delivery, the delivery will be received by Wednesday closing. You can sell those shares only from Thursday session onwards.

He also told me that they give margin for T+5 days. Is he correct? Plz guide me.

Yes, this is what they told me too when I had asked about it. But I have never used it. Also, if you don't return the margin by T+5 days, then you will have to pay some 16% interest. Do ask him about this.

 

[vedvyas]

Thanks a lot Bunny for a quick reply.

Can u guide me some more please?

Suppose i buy stocks of more value than the amount available in my account(i mean i buy on margin money),and i dont sell on the same day,now again do i have to wait for the stocks to be in my demat account before selling them?

Thanks in advance for your help.

Vedvyas.

 

[bunny]

Thanks a lot Bunny for a quick reply.

Can u guide me some more please?

Suppose i buy stocks of more value than the amount available in my account(i mean i buy on margin money),and i dont sell on the same day,now again do i have to wait for the stocks to be in my demat account before selling them?

Thanks in advance for your help.

Vedvyas.

Yes, you have to wait until you get them in your DEMAT account, unless you have previous delivery.

Lets say:
Mar 1 - Your order to buy 500 shares of RELIANCE has been executed
Mar 2 - You cannot sell RELIANCE shares because there are no delivery in your DEMAT account.
Mar 3 - You get delivery of 500 RELIANCE shares after market closing
Mar 4 - You are now able to sell those shares.
Mar 20 - You buy 200 RELIANCE shares
Mar 21 - You sell 200 RELIANCE shares.

In the above example, the RELIANCE selling on Mar 21 was possible only because you had previously taken delivery on Mar 3. Else, you would have to wait until Mar 23.

 

[vedvyas]

Thanks again Bunny,
your guidance is highly appriciated.

But Im feeling dificulty to get the point in "unless you have previous delivery".

I tell you what i got from the above point. Plz correct me if i wrong.

(i)If I am buying a stock first time which I've never bought before, then to sell that either i have to sell it on the same day or i have to wait for the delivery.

(ii)If I have taken the delivery of a stock, even before one year.then today if i buy it again, i can sell it tommorrow.

Am i right?

Plz guide me if u have time.
Thanks.

 

[bunny]

^Yes, you got it correct.
But if you have delivery of only 500 RELIANCE, then you cannot sell 600 RELIANCE(because you will need previous delivery of extra 100 RELIANCE shares).

I hope you got it.

 

[vedvyas]

Dear Bunny,You r so kind.
Plz forgive me as i am asking too many questions.but may i know the source of all this information? can you tell me plz?


I have wondered a lot on net, on many websites,bse,nse and SEBI also to get the answers of my questions but nowhere i found, today is a lucky day 4 me cauz i got a kind person who answered me.

One more thing please. There is a concept of ATST in Reliance Money.What is the procedure for that.

Thanking in advance.
Vedvyas.

 

[bunny]

Plz forgive me as i am asking too many questions.but may i know the source of all this information? can you tell me plz?

There are many sources, your broker for example. If you want basic knowledge about other stuff in markets, I recommend you a small handbook called "Guide to Indian Stock Market". Its written by Jitendra Gala(Buzzing Stock Publishing House, Mumbai) and retail price is about Rs. 150 to 175. (Link)

One more thing please. There is a concept of ATST in Reliance Money.What is the procedure for that.

ATST is Acquire Today Sell Tomorrow meaning But today and Sell tomorrow without waiting for delivery. Read the rules about ATST or BTST carefully on your broker's website.

 

[srtrader]

Hi I am new to share market. yesterday I did intraday trading and by mistake i sold 65 shares of 'XYZ' in advance without buying that share. Today in my trader terminal it shows Rs. 10080 as undelivered amount.

Can anyone explain me how to resolve this problem?

 

[srtrader]

Hi I did this mistake I am new to share market. yesterday I did intraday trading and by mistake i sold 65 shares of 'XYZ' in advance without buying that share. Today in my trader terminal it shows Rs. 10080 as undelivered amount.

Can anyone explain me how to resolve this problem?