If you’re trying to sell a stock which is in T,XT or ST category (trade to trade) without it being credited to your demat account (i.e T1 Holdings), you will get the same error.
In such cases you will have to wait for the stock to come into your holdings which takes T+2 days.
@nilesh you tried to sell nse bought stocks in bse or vice versa. So the different exchange error is coming. NSE and BSE are 2 different exchanges relating to stocks in India.
If you also place a stoploss for your holdings and then try to place a target order for it, the system will still consider it as holdings not present for the target order. Since there is already one sell stoploss order matching the holdings. You cannot place both target and stoploss for the holdings at the same time. Read why here
If the reason is cancelled then either client should do or exchange.
Exchange rejects them when they are resulting in self trade or reversal of trade, not only at one broker but across brokers, they match with pan number.