Indian Stock Market News and Analysis

Just to understand..
If the shares cannot be bought in the auction, then which money one would get? the sum at which he bought the shares? (which anyway got defaulted becasue fo some one else..) in that case what is the mechanism which prevents the short seller from defaulting??
vijay
On 07/09/2007, Purnanand Sanket wrote: > HI, > what reliance money has done is not entirely wrong….sometimes this can > happen in A group stocks and it is nowadays happening frequently in A group > stock which used to not happen earlier. when you buy the share the seller > might have done short sell..So after auction you will get shares or if > shares cannot be bought in auction then you will get money..You will get the > shares at the price you bought. You will get them after T + 5 . In this case > no auction bill is given as you are not the guilty party. But the broker has > to inform you in email that this has happened. This is a strange rule but > this has happened to me also before and i had enquired the details. > Hope i have cleared the query, > Purnanand Sanket > Man Financial. > > > On 8/29/07, Prayas Arora wrote: > > > > Thanks Mr Chowdhury, > > > > Can you explain little more on M2M premium / penalty money. As the penalty > > I have got is mere 200- 300 Rs. While the unrealized profit I have lost > > because of this is more than Rs 2500. > > > > And as this has happened to me more than once, both when the current price > > is good 5-10% higher than my buying price, I am afraid that this will > happen > > to me again and I will be settled with a small amount of penalty or Rs > 200. > > > > Thanks once again for replying and giving the information. I will keep you > > updated…… If you have more info on how this penalty is decided. Why > this > > trade practice is allowed that the seller has option to short deliver….. > > If this is the case How can I short deliver….that is decline to deliver > > the security in case the scrip has moved higer in T+2 days. > > > > Regards > > Prayas > > > > > > > > On 8/29/07, Dipendu Chowdhury wrote: > > > > > > Hi Mr Arora, > > > > > > I understand that u bought BHEL @ 1600 and your DP i.e. Reliance Money > > > is saying buyer shortage, it’s correct. Short delivery can be happend > > > i.e. they can say seller shortage and for that reason u will get m2m > > > premium/penalty money from market because the person short delivered the > > > script against his/her sell in the market have pay penalty and u will > get > > > the same. > > > > > > It’s a serious matter and u must contact with Reliance Money as well as > > > the Grievance Cell of concerned Stock Exchange and SEBI. > > > > > > Please handle the matter strictly with your broker. > > > > > > Pl send me the feed back for my knowledge about Reliance Money. > > > > > > Thanks > > > chowdhury > > > > > > > > > > > > On 8/29/07, Prayas Arora wrote: > > > > > > > > Hi all, > > > > > > > > I bought few shares of BHEL @ 1600 and others while the market was > > > > down due to global cues. > > > > > > > > Now that market is up and BHEL is trading above 1800. I have got few > > > > mails from my DP and online broker Reliance Money.. that Buyer > shortage has > > > > happened and money will be refunded rather than getting those stocks > in my > > > > account. This has happened more than once now. > > > > > > > > I have lost the notional profit of some good amount in this. I didnt > > > > face this problem in any other brokers like ICICI and others. > > > > > > > > > > > > Someone please tell me if this is legal or yet another brokerage house > > > > scandal……to make money…… > > > > > > > > — > > > > Prayas > > > > > > > > > > > > > > > > > — > > Prayas > > > > > > > > — > Purnanand > > > >