Comment on Consequences of Short delivery - NSE/BSE

Sidharth Kumar commented on 04 Dec 2014, 07:35 AM


I had shorted 1800 ONGC (CO) on 2-12 at around 385.15 if I remember right.

I expected the system to square it off at 3:20, when it was trading about a point lower; however as this did not happen I attempted to manually square it off by clicking (exit) in the order book. However, the order was rejected citing a server error (I do not remember the exact error however it was something along the lines off ‘Server is unable to take request at this time’). I hoped that since Zerodha has systems in place to avoid such scenarios it must have been squared off automatically and perhaps there was a problem displaying it on my side, and let it be.

However yesterday, I received an e-mail from Zerodha stating that since an MIS position was not squared off my Margins have been blocked, and a similar SMS from NSDLDP informing me that there is insufficient quantity in my demat account and ‘available quantity will be delivered’ by 04-12.

Since then I have not been able to log into my backoffice, and any attempts to reset the password fail. The Zerodha trader displays my current positions as none, despite me holding two long option positions in SBI and JSW Energy. I hope these are unrelated incidents but I would like to know how the matter of short delivery will be dealt with since at this time I can’t access any reports, and the last time I checked (yesterday) it displayed my withdrawal balance as approx. negative 8 lakhs.

Also, despite an overall positive experience with Zerodha, such occasional bugs are both frustrating and sometimes scary. I should have ideally made about a grand in profit from my position had it been squared off at 3:20 as it should have been, but now it’s not certain at what price will my position be resolved.

I would be grateful for some light on this matter and how Zerodha plans to avoid such complications in future and/or compensate it’s clients if they do arise.

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