Comment on Consequences of Short delivery - NSE/BSE

SR commented on 17 May 2014, 03:38 PM

Hi Nithin,
Thanks for the post.
It appears that the risk of failed delivery or auction penalty will be more incase of intraday short selling as the stock may hit upper circuit but this risk is also there to some extent with BTST and intraday long selling (buy & sell) in case of failed deliveries. Please clarify if I am correct if yes then provide more details & stats on failed delivery transactions and frequency of happening them and any suggestions to minimize them if they happen.

Also it appears that there is no way we can know in advance before auction or dont get any notification from exchange or broker on failed delivery so that we can cover up and it seems penalty is inevitable if we run into it.

Note : By Failed delivery I mean in a intraday, I bought a stock and sold it but the person who sold to me have short sell them to me and could not cover up due to stock hitting upper circuit and the person to whom I sold took them for delivery.


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