Broker places order without consent

@siva yesterday on of my account having position on illiquid stock script century textile which was also in ban, broker squared of the positions rampantly at market prices causing heavy losses due to this. Is there something could be done about this. The margin for that position was adequate and there was no communication at time of that order , even I already having limit sqaure of order on that script but they simply modified it and it executed at 19.95 while after one minute the script got traded in range of 5. What can be done in this case. @mohitmehra

Yesterday is physical delivery right? I am assuming that is june expiry contract and may have resulted in buying or delivery of shares if not closed, you can ask the broker for exact reason.

Yes they say that they don’t allow physical settlement but is it legal to modify existing order to market without seeing bid-ask and liquidity . My cousin too faced same issue yesterday.
When contacted they said that even if ask price was 100 they would have executed the order ,isn’t it unethical business practices

If it is mentioned in their policy and if you don’t have enough margin they can close. Imagine if they have a lakh clients, it is not possible for them to see depth and place orders manually for all.
Also I personally believe it is user responsibility to take care of his positions before broker acts.

As I mentioned margin was more then adequate

What is broker policy on physical delivery?

To square off after 12 something at expiry. Btw what would you have done if stock goes to ban , doesn’t have any seller . The only thing you. could do is to have enough margin right . And even I don’t have problem with squaring off by broker but if they placed order at order with somewhat sense the algos would have jumped or somehow communicated before placing same because the amount here was small but what if someone had 100 of lots it doesn’t make sense to act rampantly.


On the expiry day ; to avoid the physical delivery; if the client fails to squareoff/exit the position; the broker does it from his end !

My question is :
before doing it ; do the broker block the client from doing so ?

Because ; what if the client and the broker both simultaneously try to do it from their respective ends ? In this case ; a new unwanted position would b created !!!

Please stop asking us your imaginary questions.

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