Suppose there is illiquid option and I placed NRML sell order at 3 rupees and after some times placed buy order in MIS product of same 3 rupees. What will happen then will both the orders get nullified.
If an active order (orders that come in to match the existing orders) is likely to match with a passive order (Orders lying unmatched in the system) in the same order book belonging to the same client, either the active or passive order resulting in self- trade will be canceled by the exchange.
Essentially, if there is a scenario where one of your order is in the best bid/offer and you place an order in the same scrip and this order is about to match your own earlier passive order, then this new order will be canceled by the exchange.
And if counter offer is placed through other brokerage account. Will it be considered somewhat unfair or we will be okay with it if genuine reason could be provided for that trade.
Along with order details like price, qty etc. the PAN no. is also sent to the exchange. So its unlikely that these transactions will go untracked. This will be considered as price manipulation and will attract fines.