Comment on BTST/ATST( Buy/Acquire Today Sell tomorrow)

Vivek commented on 28 Apr 2015, 11:21 PM

Thanks Nithin… So I understand BTST will be business income or Short term gain but not ‘Speculation income’ then…

Regarding penalty…
When I convert my delivery trade to BTST, from your explanation above I gather that below event is also possible :

‘Person from whom stock is being transferred to me may not ‘deliver’ on T+2, in which event exchange arranges to allocate shares via auction’

Scenario 1: I wait for T+2 to take normal delivery => no issues as exchange arranges even if original person selling backs out.
Scenario 2: Say on T+1, I convert to BTST and sell that stock, but person selling backs out…, in which case, I actually don’t have stock to sell on T+2 and I default, then a auction penalty fee is charged to me. I am talking about this auction penalty fee if can be deducted in some way


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