Comment on BTST/ATST( Buy/Acquire Today Sell tomorrow)
commented on
30 Nov 2016, 12:05 PM
1. If you’ve bought them under product code MIS (Intraday), they’ll automatically get squared off at the end of the day, provided there are buyers/sellers in the stock at the time of square off.
2. If you end up buying shares that hit circuits, you won’t be able to square if off for the lack of buyers. The purchase will result in a delivery and the stocks will hit your demat account. There’s no penalty for buying, you’ll only have to ensure that you have sufficient margins in the account to cover up the day’s debits, else interest would be levied for such debit balance.
Eg: Your account balance is RS.12000, you buy Stock X for Intraday on which you get 3X leverage. So effectively you buy stocks worth 36000 with only 12000 in the account. At the end of the day if you aren’t able to sell it, you’ve to take delivery of such stock. Your ledger gets debited for Rs.36000 leaving your net balance as -24000. You’ll have to bring in these funds failing which interest will get levied.
Penalty/Auction will happen only when you short sell stock and aren’t able to deliver it.