Comment on Consequences of Short delivery - NSE/BSE

Kabir commented on 02 Jul 2014, 09:19 PM

hello again,
actually i asked all details of auction and when they didnt provide me they have given me explanation in this form
In case the margin position could not be squared off for any reasons (for example, lower liquidity in the scrip, scrip hitting circuit filter, internal system issues or problems at Exchange’s end, market freezing by the Exchanges / SEBI etc.) your open position will be settled on a delivery basis.

Similarly, for outstanding sell positions, we will first attempt to create securities holds in your linked default demat account. If the securities hold could not be placed because of a shortfall, non-availability or some other technical reason, a value equal to the short quantity multiplied by the closing price * 20% will be debited to your account. We will then try to place a funds hold on your bank account for the same. If fund holds could not be created in your bank account due to a shortfall of funds in your linked default bank account or some other technical reason, the debit balance will be displayed as negative Cash-n-Carry limits. The short position will then be either auctioned or squared off.

and regarding the amount that they have chrged, the way of calculation that they have done is on this basis

check out this link ..”http://www.hdfcsec.com/Compliance/201305071049497330701″

and if you will check above conversation in this blog only…you will find one guy Manohar has mentioned short selling of IVRCl
the mail that HDFC has sent to Manohar, same kind of mail they have sent to me
and then i asked explanation and sheet for auction then those people has mentioned me all these things

Kindly let me know..Is this way of settlement is according to rules??

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