Short delivery of EQ Futures (Long Position) on Physical Settlement

Hi guys,

I had 1 lot of Coromandel-EQ that has September 30 expiry. I was in loss so I thought of taking the physical delivery. I had enough funds in my account. I thoughts the shares would be credited in my account on T2, but today I got an email “Your purchase of 625 quantity of COROMANDEL-EQ was short delivered.”

How that happened? There were both sellers and buyer for that particular stock. Now will I have to pay the huge penalty for this? This really socks.

Short delivery happens when seller of stock doesn’t have sufficient quantity in his/her account. You don’t have to pay any penalty, this is applicable on seller. You can check out consequences of short delivery here:

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This happened to me also once. But nothing to worry. You will have the shared credited , but have to wait a little longer than T2, in my case it got credited the next Thursday .

Like what @ShubhS9 told, the seller doesn’t have sufficient shares in his account, so it will be purchased from auction in open market, all extra charges will be debited to seller.

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I din’t find Coromandel in the list of Compulsory delivery stocks. Can someone please share the latest list or link ?

All stocks derivatives are physically settled. There is no exception.

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Thank you Shubh and Anikethan. I’m relieved to hear that. :slight_smile:

I wasn’t aware… thanks for the info :grinning:

Have you received the Shares in you account ?

I just got the 7 shares out of 625. I emailed the support, and they said seller has defaulted the delivery. It will T+5 days to get all the shares in my demat. Fortunately, share (Coromandel) is doing well.

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