Stocks To Keep A Close Eye On

[suru27]

friends..please help...what does this message means.. i got thi from my broker...

We write to you in connection with your delivery entitlements for Settlement Number NSENR2009084 .

We would like to inform you that the 20 shares of Aban Offshore Ltd. have been received short at our end from the Exchange. We are expecting deliveries or close out in respect of your entitlement in the next 1 or 2 days time after the Auction. We would be crediting the same on receipt from the Exchange after Auction Pay-Out.

You can view the same in your cash/DP account in a couple of days time.

Assuring you of our best services at all the times.

 

[SavantGarde]

Suru,

2009084 Is Your Settlement Number, Your Trade Was On 13th May When You Bought ABAN

Now Whatever Quantity You Bought, Seller Has Failed To Give You Delivery Of 20 Shares, Therefore You Will Benefit By Atleast 20% From Your BUY Price, Which Will Be Credited To Your Ledger.

If You Had Sold & Not Given Delivery Of 20 Shares Then, There Would Be An Auction & You Would Loose Atleast 20%, Now The Same Thing Is Happened To The Seller In Your Case You Happen To Be A Buyer Therefore It Is Closeout For You & Auction For The Seller.

Your Broker Has Also Mentioned About Delivery Of Shares, That Doesnot Happen, It Is Always Settled In Cash, If They Credit 20 Shares Then It Means They Have Pocketed The Penalty Levied On The Seller Which You Are Suppose To Receive

Good Very Good, You Will Make Very Good Profit On This Closeout.

Nothing To Worry For You....Enjoy The Butter & Jam....

Happy & Safer Trading

SavantGarde

friends..please help...what does this message means.. i got thi from my broker...

We write to you in connection with your delivery entitlements for Settlement Number NSENR2009084 .

We would like to inform you that the 20 shares of Aban Offshore Ltd. have been received short at our end from the Exchange. We are expecting deliveries or close out in respect of your entitlement in the next 1 or 2 days time after the Auction. We would be crediting the same on receipt from the Exchange after Auction Pay-Out.

You can view the same in your cash/DP account in a couple of days time.

Assuring you of our best services at all the times.

 

[sagarkapoor]

friends..please help...what does this message means.. i got thi from my broker...

We write to you in connection with your delivery entitlements for Settlement Number NSENR2009084 .

We would like to inform you that the 20 shares of Aban Offshore Ltd. have been received short at our end from the Exchange. We are expecting deliveries or close out in respect of your entitlement in the next 1 or 2 days time after the Auction. We would be crediting the same on receipt from the Exchange after Auction Pay-Out.

You can view the same in your cash/DP account in a couple of days time.

Assuring you of our best services at all the times.

Hi suru27,

What this basically means is that someone who was to sell 20 shares of Aban has not delivered the shares to the Exchange and hence the Exchange hasn't delivered it to your broker and hence your buy order for 20 shares of Aban isn't completed yet. So now what basically will happen is that either you will get those 20 shares within 2 market days or you will get the money credited into your account after an auction takes place, the money that will be credited to your account will also include a 20% penalty by the person who did not honour his sell order. Hope that clears this mail to you .

What is an auction?

The exchange can initiate an auction in case the selling trading member is unable to deliver the shares, for various reasons such as short delivery, bad delivery and objections. The exchange purchases the requisite quantity in the auction market and gives the delivery to the buying trading member. This process takes three to five days to complete and thus in case if you have a purchase position and the shares are not delivered by the opposite selling member, then there could be a delay in receiving the shares, until such time that the exchange completes the auction process.


Note:
Internal shortage: in internal shortage the broker repurchases securities from the exchange at market rate and the shares are transferred to the client's account. This cycle is completed in T+3 days.


Exchange shortage: here there is a shortage in the exchange for which the client gets credit and the account is settled by the exchange. This cycle is completed in T+ 5 days.


What happens if no one offers shares in the auction market?

In case there is no offer for shares in the auction market, then as per the rules of the NSE the sell trade is squared off at the highest price for the scrip in the relevant settlement or at 20% above the last available trading price on the NSE, whichever is higher.



FYI, I also got the mail recently from sharekhan and it seems this has been happening a lot these days.

 

[SavantGarde]

Suru,

If The Broker Credits The 20 Shares Then, Go After Them, Threaten Them That You Are Going To The Grievance Cell Of The Exchange, Brokers Are Very Scared Of Client Complains To The Exchange.

It Is Never Settled By Delivery Of Shares. If It Is Delivered Then You Are Entitled To The Penalty Levied On The Seller

SavantGarde

 

[sagarkapoor]

Your Broker Has Also Mentioned About Delivery Of Shares, That Doesnot Happen, It Is Always Settled In Cash, If They Credit 20 Shares Then It Means They Have Pocketed The Penalty Levied On The Seller Which You Are Suppose To Receive

Suru,

If The Broker Credits The 20 Shares Then, Go After Them, Threaten Them That You Are Going To The Grievance Cell Of The Exchange, Brokers Are Very Scared Of Client Complains To The Exchange.

It Is Never Settled By Delivery Of Shares. If It Is Delivered Then You Are Entitled To The Penalty Levied On The Seller

SavantGarde

Is that true Savant? I've had this happen twice to me and always the shares were credited to my account.

 

[SavantGarde]

Sagar,

Sharekhan Has A Bad Habit & Many Other Brokers, Ask Doc He Will Tell What Happened With Sharekhan.

If You Get Delivery Of Shares Irrespective Of What The Price Of Share Is On That Day, Then Where Is The Penalty Levied On The Seller

SavantGarde

Is that true Savant? I've had this happen twice to me and always the shares were credited to my account.

 

[SavantGarde]

Sagar,

Here Are The Links Of NSE

http://www.nseindia.com/content/nsccl/nsccl_eqpenalties.htm

http://www.nseindia.com/content/nsccl/nsccl_eqcloseout.htm

http://www.nseindia.com/content/nsccl/nsccl_eqshortages.htm

SavantGarde

 

[moto143]

Hi Savant sir,

I'm new to trading..Just started a couple of weeks back...the trading which i have done till date is Intraday.Never did even a single Delivery based trading.

I had a doubt..Hope you will clear it...Well, Suppose i bought a few shares today(delivery) and let's assume the very next day price of that share goes up, so will i be able to sell those shares? Since i read somewhere that usually broker's take 2 or 3 day for Delivery...

 

[SavantGarde]

Hello Moto,

Ok Here Are The Points,

a) Buying Today Selling Tomorrow (BTST) Or Sometimes Called BNST (Buy Now Sell Tomorrow)

b) Normal Settlement For Delivery Is T+2 - Meaning T Stands For The Trade Date & +2 For Settlement Of Payin & Payout, Eg. If You Bought Shares On Monday & Your Ledger Has Enough Money To Settle The Trade Then You Should Be Able To See The Shares In Your Demat After 12 Noon On Wednesday.

c) BTST Is Allowed By Brokers (Not By Exchange) In Highly Liquid Scrips & Is Normally Settled From Pool Account Of The Broker

d) Let's Say You Did BT On Monday & ST On Tuesday & Suppose In BT Seller Failed To Deliver The Shares & Before The Settlement (+2) Is Complete You Have Done ST (+1) , So You Sold Shares Which You Didn't Get From The Seller

e) Incase Of Point (d) What Will Ensue Is You Will Get Closeout For Your BT & Auction For Your ST

f) It Is Always A Client's Risk Doing BTST, Brokers Allow It ONLY Because Of Volumes & Brokerage Earned

g) It Is Quite Rare For It To Happen With Highly Liquid & Trading Stocks & With A Big Broker Because His Pool Account Will Be Much Bigger & Have Shares To Settle The Trade

h) Now What Happens Is Like This You BUY On Monday For Which Your Broker Will Get The Shares On Wednesday Before 9.00 AM From The Exchange

i) You Sell On Tuesday & Your Broker Has To Deliver Before 9.00 AM On Thursday

So Looking At Point (h & i) Your Broker Will Have The Shares From The Exchange On Wednesday Morning Which He Has To Only Deliver On Thursday Morning For ST

Shortage Happens When Point (h) Doesn't Happen & Because Of Which Point (i) Is The Consequence

SavantGarde

Hi Savant sir,

I'm new to trading..Just started a couple of weeks back...the trading which i have done till date is Intraday.Never did even a single Delivery based trading.

I had a doubt..Hope you will clear it...Well, Suppose i bought a few shares today(delivery) and let's assume the very next day price of that share goes up, so will i be able to sell those shares? Since i read somewhere that usually broker's take 2 or 3 day for Delivery...

 

[suru27]

savant sir..thanks a lot for providin me relief.. now relieved dat m not gonna loose anythin.. by d way.. on 15th i sold aban at around 545.. never expected it to cross 600 that day itself ..
Sir one more query, do u trade only in shares listed for futures ..? actually i was d one who asked u bout murli furli.....i came out on ur advice as better stocks r there but still its risin everyday.. i got it at 96 n came out at 117 aftre ur advice but has touched 137..