Share Shortages for NSE
- Thread starter xtalk
- Start date
- Tags auction share shortage
This is the message I got...
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Date: - 18 August 2009
Reference: " Payout of xxx shares of INDIAN HOTELS CO LTD.
Dear Sir / Madam,
Please be informed that on 14-Aug-09, you had Bought xxx share/s of INDIAN HOTELS CO LTD in settlement No. 12323234 Payout of which, as per T+2 Settlement system of BSE was on 18-Aug-09.
Against the same, we had received Payout of 0 share/s only. For balance xxx shares there is a Buyer shortage.
Settlement in cases where there is a Shortage it is deferred till Auction Settlement, which is on 20-Aug-09.
For any clarification, you can call us on xxxxxxxxxx or xxxxxxxxx . We would be glad to assist you.
With Regards,
Customer Care Desk
HDFC Securities Limited
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So if I understand correctly, I don't need to bother about it much(dont have to pay any extra amount). The shares will be credited to my account by 18th. Correct? Btw, in the meanwhile, can i sell those shares?
-----------------------------------------------------------------------------
Date: - 18 August 2009
Reference: " Payout of xxx shares of INDIAN HOTELS CO LTD.
Dear Sir / Madam,
Please be informed that on 14-Aug-09, you had Bought xxx share/s of INDIAN HOTELS CO LTD in settlement No. 12323234 Payout of which, as per T+2 Settlement system of BSE was on 18-Aug-09.
Against the same, we had received Payout of 0 share/s only. For balance xxx shares there is a Buyer shortage.
Settlement in cases where there is a Shortage it is deferred till Auction Settlement, which is on 20-Aug-09.
For any clarification, you can call us on xxxxxxxxxx or xxxxxxxxx . We would be glad to assist you.
With Regards,
Customer Care Desk
HDFC Securities Limited
-----------------------------------------------------------------------------
So if I understand correctly, I don't need to bother about it much(dont have to pay any extra amount). The shares will be credited to my account by 18th. Correct? Btw, in the meanwhile, can i sell those shares?
Hi, I have got this mail,
Reference: " Payin of 150 shares of RAYMOND LTD.
Dear Sir / Madam,
Please be informed that on 13-Aug-10, you had Sold 150 share/s of RAYMOND
LTD - settlement No. xxxx Payin of which, as per T+2 Settlement system of
BSE was on 17-Aug-10.
Against the same, we had received Payin of 0 share/s only. For balance 150
shares there is a Seller shortage.
Settlement in cases where there is a Shortage it is deferred till Auction
Settlement, which is on 20-Aug-10.
For any clarification, you can call us on 022 6141 17 00 or 1800 209 9700 or
email us at [email protected]. We would be glad to assist you.
With Regards,
Customer Care Desk
HDFC Securities Limited
As per the above mail I understand tht I will get the amount that I have invested once the auctions finishes but when I called HDFC SEC Customer care they informed me that the amount that I have invested(15000) is been adjusted as penalties...I have invested 15000 and my broker has given 3 times more apart from the amount that I have invested to BUY/SHELL shares. I have sold Raymond 150 shares on friday(13-08-10) at price 374.90 and it has not squared off after 3:00 pm due to buyer shortage... till now I have not received the balance amount. Please reply...
Reference: " Payin of 150 shares of RAYMOND LTD.
Dear Sir / Madam,
Please be informed that on 13-Aug-10, you had Sold 150 share/s of RAYMOND
LTD - settlement No. xxxx Payin of which, as per T+2 Settlement system of
BSE was on 17-Aug-10.
Against the same, we had received Payin of 0 share/s only. For balance 150
shares there is a Seller shortage.
Settlement in cases where there is a Shortage it is deferred till Auction
Settlement, which is on 20-Aug-10.
For any clarification, you can call us on 022 6141 17 00 or 1800 209 9700 or
email us at [email protected]. We would be glad to assist you.
With Regards,
Customer Care Desk
HDFC Securities Limited
As per the above mail I understand tht I will get the amount that I have invested once the auctions finishes but when I called HDFC SEC Customer care they informed me that the amount that I have invested(15000) is been adjusted as penalties...I have invested 15000 and my broker has given 3 times more apart from the amount that I have invested to BUY/SHELL shares. I have sold Raymond 150 shares on friday(13-08-10) at price 374.90 and it has not squared off after 3:00 pm due to buyer shortage... till now I have not received the balance amount. Please reply...
Hi,
Dont be panic with lot of things envoled in settlement but i would like to brief you about settlement cycle & Auction:
1) Settlement:
Once you have bought or sold shares, the transaction is complete only when you have got the shares you purchased, or received money for the shares you sold. This is called settlement in stock market parlance. The stock exchanges have a complex mechanism in place to ensure that every trade is properly matched, and shares are received or delivered properly. In case of a shortfall of securities, an auction is resorted to close out the difference.
The mechanism through which all parties to a transaction get their receivables i.e. either funds or shares is known as clearing and settlement or simply settlement
2) Auction:
An auction is resorted to when there is a default in delivery by a broker. An auction is the exchanges mechanism through which, in a settlement, a buyer broker gets shares in the eventuality of default by the selling broker. This default occurs when a short seller fails to square up the position, or a seller fails to deliver shares on time, or a seller delivers bad/wrong shares.
The whole process of this auction event can be illustrated as under:
An auction is a mechanism utilised by the exchange to fulfill its obligation towards the buying trading members. Thus, when the selling broker fails to deliver the shares, exchange conducts an open market purchase by way of an open auction and the shares so bought through the auction are delivered to the buying broker.
If the shares could not be bought in the auction i.e. if the shares were not offered for sale in the auction, the exchange squares up the transaction as per SEBI guidelines. The guideline in force stipulates that the transaction is squared up at the highest price on the NSE from the relevant trading period till the auction day or at 20% above the last available closing price on the NSE on the auction day, whichever is higher. The pay-in and pay-out of funds for auction square-up is held along with the pay-out for the relevant auction.
Dont be panic with lot of things envoled in settlement but i would like to brief you about settlement cycle & Auction:
1) Settlement:
Once you have bought or sold shares, the transaction is complete only when you have got the shares you purchased, or received money for the shares you sold. This is called settlement in stock market parlance. The stock exchanges have a complex mechanism in place to ensure that every trade is properly matched, and shares are received or delivered properly. In case of a shortfall of securities, an auction is resorted to close out the difference.
The mechanism through which all parties to a transaction get their receivables i.e. either funds or shares is known as clearing and settlement or simply settlement
2) Auction:
An auction is resorted to when there is a default in delivery by a broker. An auction is the exchanges mechanism through which, in a settlement, a buyer broker gets shares in the eventuality of default by the selling broker. This default occurs when a short seller fails to square up the position, or a seller fails to deliver shares on time, or a seller delivers bad/wrong shares.
The whole process of this auction event can be illustrated as under:
An auction is a mechanism utilised by the exchange to fulfill its obligation towards the buying trading members. Thus, when the selling broker fails to deliver the shares, exchange conducts an open market purchase by way of an open auction and the shares so bought through the auction are delivered to the buying broker.
If the shares could not be bought in the auction i.e. if the shares were not offered for sale in the auction, the exchange squares up the transaction as per SEBI guidelines. The guideline in force stipulates that the transaction is squared up at the highest price on the NSE from the relevant trading period till the auction day or at 20% above the last available closing price on the NSE on the auction day, whichever is higher. The pay-in and pay-out of funds for auction square-up is held along with the pay-out for the relevant auction.
In simple ways: An auction is a mechanism utilised by the exchange to fulfill its obligation towards the buying trading members. Thus, when the selling broker fails to deliver the shares, exchange conducts an open market purchase by way of an open auction and the shares so bought through the auction are delivered to the buying broker.
If the shares could not be bought in the auction i.e. if the shares were not offered for sale in the auction, the exchange squares up the transaction as per SEBI guidelines. The guideline in force stipulates that the transaction is squared up at the highest price on the NSE from the relevant trading period till the auction day or at 20% above the last available closing price on the NSE on the auction day, whichever is higher. The pay-in and pay-out of funds for auction square-up is held along with the pay-out for the relevant auction.
If the shares could not be bought in the auction i.e. if the shares were not offered for sale in the auction, the exchange squares up the transaction as per SEBI guidelines. The guideline in force stipulates that the transaction is squared up at the highest price on the NSE from the relevant trading period till the auction day or at 20% above the last available closing price on the NSE on the auction day, whichever is higher. The pay-in and pay-out of funds for auction square-up is held along with the pay-out for the relevant auction.
hiii
I have a querry ..plz suggest
I have short sold today PRAKASH CONSTROWELL LIMITED 300shares@165 in cash market..bot could not cover the short as it rose to 230 ...
not I have the querry that on which day the exchange will buy 300 shares in auction...& what will be the penalty...any chance if exchange can buy those shares at lesser price...
I have a querry ..plz suggest
I have short sold today PRAKASH CONSTROWELL LIMITED 300shares@165 in cash market..bot could not cover the short as it rose to 230 ...
not I have the querry that on which day the exchange will buy 300 shares in auction...& what will be the penalty...any chance if exchange can buy those shares at lesser price...
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