If I buy a stock in intraday and Don’t sell from my end, Square off time with Zerodha is 3.20 PM and What will happen if there is no sellers available that time.
What happends when I buy a stock in MIS( intraday) and there are no sellers available at square off time?
Stock bought in Intrady and not were able to sell in intraday(no buyer) will be considered as delivery trade. In case if you have demat accout you will recieve the delivery of shares to your demat account else shares will be credited to brokers pool account.
You can sell the shares at your best price from the time you take the delviery. You can ask broker let you sell the shares in case you dont have Demat account and shares were lying in the broker pool account.
Currently every one has to open demat account in India for trading in markets.
Kalpesh, if you do not have the margin and your broker too hasn’t been able to square off then the only option is to take delivery. Now unless the quantity of your order is huge/erroneous the broker will take delivery in his pool account and sell it off later. The real issue arises if you have a short sell position cause now you will not be able to deliver the stock. Hence in this case you will be taken to auction market due to short delivery. But in your case the worst case scenarion will be that you broker charges you penalty/ interest. However this is a very rare posibility.
If you buy a stock for Intraday, at the time of square off there need to be buyers (not sellers as you have mentioned) cos you’d have to sell and the counter party is a ‘buyer’.
If there are no buyers, it means that you can’t sell. You’d be forced to take delivery of these shares to your demat account. In case you don’t have a demat account, you could ask your broker to sell it the next day on your behalf.
Just wanted to clarify if i don’t have enough cash in my account to convert it to delivery then what happened?
Most probably your broker will sell it off the next day or so.
In worst case you will incur some additional charges. Nowadays many brokers dont even do that.
The real problem comes when you short in MIS and if you could not find any seller who can give you the shares before end of day. Then it leads to auction penalty.
Not all stocks are available for intraday trading. The stocks available for intraday will have much volume for closure during the EOD
I want to ask you other way round. What if I sold the stocks during intraday and there are no stocks to buy as sellers are not there? how can I buy the stocks to square off.
In case there are no buyers, and your intra-day short was not squared off, a short delivery auction will be held (as you’ve sold shares which you do not hold). Auction penalties can be up to 20% of the value of stock short delivered, which will be debited from your account.
@Kshiteesh_Saralaya Thanks for your reply. Anyway, it’s going to auctioning only in my case. Can we purchase the same stocks during the auction period or only brokers are allowed to purchase the same.
I purchased 250 shares for intraday and i placed order to sell 250 shares. But, 248 shares are sold and 2 are pending. WHat will happen if no one buy the pending 2 shares? WIll zerodha charge Rs 20 for auto squareoff?
The same has happened to me … i have short sell the products and wasn’t able to buy at the end of the day.
I want to know what next could happen to me… the amount deducted from my account was 6325₹ for 68 shares bought on zerodha via MIS type.