I had shorted hindalco 565 CE at 12.7 but failed to close trade. last price of trade was 8 and closing price of hindalco was 567.25 now as per my info or say little knowledge i will have to buy 1400 shares (lot size) at what price order will be executed or i will get shares?
thanks
I hope you have shares of Hindalco equivalent of no. of Lot * 1400 in your holdings.
Hi Vikii,
Since the short trade was not squared off/closed, you will have to deliver stocks (lot size * 1400) on Monday (T+1 settlement).
You can buy the stocks from the open market on Monday, but since the settlement is T+1 for stocks purchased on Monday, which means stocks purchased on Monday will hit your demat account only on Tuesday. So you will not be able to deliver stocks on Monday for the delivery and have short delivered. In this case the exchange will call for auction and settle the trade.
And if the exchange is not able to obtain shares in the auction market, then cash settlement happens at close out price, which can be 20% higher than the closing price on auction day.
Thanks Krishna,247nh.
Well i dont see any share in my account and can see proper balance in account
Does that mean order is executed after market in auction?
Statement says…
2024-01-25 NSE-F&O
1,74,977.99 Dr
Exposure margin blocked for NSE F&O
Balance: 19,49,308.35
2024-01-25 NSE-F&O
2,64,215.00 Dr
Physical delivery margin blocked for long options in NSE
Does that mean margin hold for shares…at what pri e i will get those shares
Is there anyway by which we can check settlement price? And it was hindalco share. Will it cost 20%?
No i dont see any shares could be due to holiday not sure how to check price or say auction price it will settled
If you do not have shares in demat. The exchange will buy the shares in auctions market and will ask you to pay up for the additional price they end up paying beyond 562.5.
For example - if the exchange obtains the shares for 565. Then you will end up paying additional amount of 7000 (2800*(565-562.5)). So the additional amount you pay will depend upon the auction price. It could be 20% more than closing price on Thursday. Or can be 20% of the closing price on Monday if cash settlement happens.
Thanks a Pai…will it be 20% for shares like hindalco?.is thr any way to check auction data.? Or past days data…just wabt to know aprx loss…
The approx (maximum) price increase might be 20%. But this depends on the auction market, so past data might not be helpful. But as a cap on the loss, you can consider 20% more on the closing price yesterday to estimate. But note that it could be lower than that as well.
Any way to reduce loss? Can.iget profit if hindalco goes down from.here
The expiry and settlement for this trade will be on the 29th at 10:30 am. If there is any short delivery, it will be covered in the auction market. The price range for the auction market for Hindalco will be between 680.64 (upper cap) and 453.76 (lower cap), based on the closing price of 567.20 on January 25th.
The seller will select a higher range in the auction market, and the auction price will be decided based on that. Since you have short-delivered, it needs to be covered in the auction market. In cases where securities cannot be purchased from the auction market, the trades will be settled through a ‘closeout.’ The closeout amount will be equivalent to the highest price prevailing in the NSE from the day of trading until the auction day, which is January 29th, or 20% above the official closing price on the auction day, whichever is higher. To minimize the loss, you have until Monday morning to arrange for stocks in your demat. Please reach out to our support team for any further questions.
Will issue get resolved if i purchased hindalco 2800 shares on monday?
Answered this here,
