Mistakenly sold NSE shares on BSE in BTST

Let’s say I bought shares of X company on 18-June-2020 from NSE and sold it on 19-June-2020 as BTST but on BSE.

Will this trade be penalized because I did BTST between exchange?

No penalty.

So BTST is fine If I Buy NSE and sell on BSE even though I don’t have shares in my DEMAT account when selling?

It is fine to Buy on NSE and Sell on BSE. However risks associated with BTST remain the same.

Hope you are aware of risks associated with BTST, if not read this.

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NOT allowed in intraday! Am i right ?

Intraday buy from NSE and sell on BSE will be treated as 2 different position.

  1. NSE: Long
  2. BSE: Short

You gotta square-off them same day.

Regarding BTST penalty risk. Is there a way to know if the seller has defaulted so that you don’t carry out the BTST trade the next day?

No, it is not possible to know in advance if the seller has defaulted.

In BTST, you’ll be selling the shares on T+1 day, while the delivery of the shares happens on T+2 day, it is only on this day one would come to know whether the seller has defaulted and it is short delivery.

So essentially you are paying penalty for someone else’s default. Does the original seller who defaulted also pay penalty? Another question is on T+1 wouldn’t the exchanges know that a seller/seller’s have defaulted and there is already a short delivery?