Comment on Consequences of Short delivery - NSE/BSE

Anand commented on 07 Aug 2015, 11:30 AM

Sir with the above example I have a query. After me buying 100 shares of Reliance at Rs. 800 and paying my broker Rs. 80,000 in time, if exchange is not able to give me back those 100 shares and has closed out the transaction at Rs. 960 say. You explained the fact that seller who defaulted will have to pay additional Rs. 16,000 as penalty so he returns Rs. 96,000 to exchange. But what will happen with me as I am a buyer who has already paid Rs. 80,000 to my broker? Will I only get Rs. 80,000 back or will I get something more? If I happen to get only Rs. 80,000 back and current share price is in the range of Rs. 950 or 960, I lose out on an opportunity to make profits as I only get back money I invested. Also my broker would have charged me brokerage on the same. What happens with the Exchange charges and brokerage I have paid?

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