Comment on Consequences of Short delivery - NSE/BSE

mennon commented on 08 Oct 2015, 04:39 PM

Hi Nitin,

Really helpful post; but I find myself in a real soup and would appreciate your help.

Essentially, I had 100 L&T Shares; I was looking to sell them; I inadvertently made a fat finger error – sold 1000 instead and am now stuck with a massive short delivery liability. On T L&T was down .5% from my selling price; on T + 1, it’s down an additional 1%. However, I understand a failed auction would leave me with a massive liability of the highest price over the three days + a 20% penalty on top of that.

So, I’d really, really appreciate answers to the following:
1. This transaction was with Kotak; what are the odds that they will be able to do an internal auction and help me out?
2. Any idea what the odds of a failed auction for something like this would be?
3. Any clue whatsoever of what I should expect as an auction price?

While I definitely made an error and take responsibility for it; this really seems like an obscure procedure, lacking transparency and the consequences of the ‘crime’ far outweigh it’s seriousness. Surely, an active SLBM or some such is desperately needed. Is there any solution at all, you might be able to offer?

I called Zerodha asking to speak with you or Venu sir; but was told this wasn’t possible. Any help, ASAP would be really, really appreciated.


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