I have bought NETWORK18 stock on last Thursday. It got shot dilvered.I was many profit on it. If it dont get dilvered than how will it impact my PL and cash balalnce?
If you bought on Thursday, isn’t today T+1?
Also, tomorrow is a settlement holiday, so you should ideally get getting the shares delivered on Wednesday.
Normally, in case of short deliveries, the exchange conducts an auction on T+3 and delivers the shares to you.
What about the profit i was making in it?
Once the shares are delivered, you can sell it at the market price.
I have got msg from zerodha that it got short dilvered. I asking about the profit that i was making from the buying price.it is approx 15% above my buying price.
Your profit or loss will depend on your sell price. If price stays where it is and you sell it when you receive the shares, then yes you can make that 15% profit.
You are not understanding my concern.
I have buyed a share and it is short delivered so i will not get that stock .
So whether i will get my cash back with profit or just cash?
Exchange conducts an Auction and buys these shares for you in the Auction market and gives delivery of these shares to you on T+3
Yes, the exchange will conduct an auction and deliver the shares to the buyer. If there are no sellers in the auction, then the exchange settles the trade in cash, as in the original seller’s account is debited and the buyer’s account is credited in cash.
If the trade is settled in cash, you will not get the MTM profit that you might have had.
When there is a short delivery of shares and the exchange is unable to find sellers in the auction markets, The exchanges instead of delivering the shares to the buyer make the settlement in cash, on the basis of close-out rate.
Closeout rate will be at the highest price in the exchange from the day of trading till the auction day for the stock which was short delivered or 20% above the official closing price on the auction day, whichever is higher. This then gets passed on to the buyer. Think of it as compensation to the buyer for the non-delivery of shares.
Check this support article.
I stand corrected.
The cash settlement will be as per what Nithin said and not the original trade price.