Short Sell Not Squared Off for Bharti Shipyard

#1
Dear All,
I have short sold quantity of bharti shiyart [email protected] on 11-01-2010. I thought it will get squared off at the end of the day. But it didnt get squared off at the end of the day. My demat balance gone to -ve. At that time i had Rs 6000 in demat with the exposure of 30,000 i have short sold the script.

On 12-01-2010 its not showing in netposition. But in my trade sheet its showing Sold quantity but its not showing bought quantity.

I would like to know when this perticular script gets squared off?

Kindly Help me in this matter. Broker is SBI CAPSEC.
 

deneb

Well-Known Member
#3
The stock has gone into auction.I think the stock hit upper circuit yesterday that is why it wasn't squared off. I was trapped in auction when I shorted thinksoft sometime back.Since my broker is also sbicapsec i would like to tell you that they charged 20% above the uppercircuit. That is if you bought at 286.50 and the circuit is 296 you have to pay the difference of 120% of 296 and 286.50It comes to around 69 per share. So your total lose will be 69*90=6200.Mind you this my abstract calculation.But you can be in much worse trouble if they undertake the real auction which would result in you paying the difference of 20% of the highest price with in the trade+2 days.Since I have been in you situation I know how you feel.But the one thing I learned is to never short stocks which have circuit limits or in otherwords which are not in F&O. I hope this helps.

Regards
 
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deneb

Well-Known Member
#5
How much did you have in the dmat account.If its 6000 I dont think there will be any money to be credit to your account since in looks like your loss will be more than 6000.Infact you may have to pay around 200 or 300 more.Sorry for your loss.I am saying all these based on my experience.It can be different for you eventhough we have the same broker. One more thing you wont be getting a digital contract for the auction. You would be getting a postal letter confirming the auction. If there is any amount to be credited to your account it will be credited only after 4 or 5 days.

Regards
 

deneb

Well-Known Member
#8
No they usually take a little more than the required amount.The rest after the settlement will be credited to your account.In your case from my experience maximum loss will be 7500. The actual loss will be hopefully less than that.The remaining will be credited to your account. In your case yesterdays high was around 296.60. So 120% of 296.60=355.92 is your square of price.So your loss comes to

(355.92-286.50)*90= Rs. 6247.20

This was the calculation they used in my case. Hope this helps.

Regards,
 
#10
Re: Bharti Shipyard?

What is the outlook on bharti shipyard? Would they do well going ahead? They have not been able to digest the acquisition of great offshore as of now. Pipavav and ABG are doing well.

Please advice. :confused:
 

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