Any Restrictions On Shorting Stocks?

Zerodha
1

Hi all,

Hoping to get help on a noob query. Namely, are there any restrictions on short selling stocks?

I tried to short sell a single share of Phillips Carbon Black today but the order got rejected.

This was the reason stated - ‘RMS:Blocked for nse_cm PHILIPCARB-EQ MIS block type: ALL’.

Could someone please shed some light on why the order did not go through?

Thanks for your time. Much appreciated.

2

I think CO and BO are blocked for Philips Carbon.

3

@tradingmachine Thanks for your reply. I was, in fact, using a regular order, not the CO or BO options.

Is there any list of stocks on which short selling isn’t allowed? Or any pre-requisites which may have not been met on this particular occasion?

Again, thanks for your time.

4

@kidrow you won’t be able to short using the CNC product type. You will have to use the MIS product type.

This is the list of stocks on which MIS isn’t allowed due to illiquidity. Philip Carbon black is No. 642 on the list.

Hope this helped :slight_smile:

5

If MIS is not allowed on any Stock To Short that stock you need to have that stock in your Holdings and Short that Stock in CNC order Type and Buyback at End of the day to gain Intraday Profit.

6

@P.A.W & @Lets_Invest Thanks for taking the time.

That’s quite a list. So there is indeed a list of stocks that cannot be shorted.

Not too sure I understood the workaround suggested by @Lets_Invest though. To have the stock in my holdings, wouldn’t I need to buy the stock at least a day prior to when I’m planning to short it? (i.e. T+1).

Or are you meaning to say that just using a CNC instead of MIS on the same day itself would work?