Comment on Intraday stock trader par excellence

Rakesh commented on 17 Sep 2013, 01:35 PM

It is a very inspiring story. I wish my wife sees/understands this and lets me to bet big on equity markets 😛

Anyways, I had a doubt Bharadwaj on intraday short selling of shares. Could you please clarify that?

Suppose I do not hold any Axis bank shares in my demat account. And I short sell 100 shares of Axis bank on NSE at say 1050/- per share. Now by the end of the day the share price in BSE for Axis Bank has come down to 1040/- per share. Can i buy back the 100 shares in BSE? 1) By doing so, does it mean that my initial trade of short sell in NSE is squared off?
2) Or does it mean that, by the end of day, after the market hours are closed, I am net short of 100 shares on NSE and long by another 100 shares in BSE? And if I do not transfer 100 shares from some other demat account, the shares that i short sold in NSE will be bought back by the exchange in the Auction window?

Generally I have seen that there is difference in price of shares in NSE and BSE by 1-2 rupees. By doing a trade like I have mentioned above, my intention is profit from the arbitrage available because of the difference in pricing in NSE and BSE. Hence, please clarify if it is allowed to do such kind of a trade.

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