DEAR ALL, PLEASE FIND ATTACHED HERE NSE PAYIN SHORTAGE N-201****
I received this mail this morning and don’t have a clue about it. I bought 7 shares of JET AIRWAYS on 6th dec 2017 and sold them on 7th dec 2017 and booked a little profit. And I received this email today.
Could anybody help me understand what it means?
As you know shares bought are settled(delivered) on T+2 day to your Demat account, as long as there is no short delivery of shares everything will be settled on time. But when the shares are short delivered, your settlement is postponed for 1day i,e. shares will be delivered on T+3, in this case when you do a BTST(Buy Today Sell Tomorrow) there are chances of shares going for auction. Let us take your transaction as an example, you had bought 7 shares of JET AIRWAYS on 6th of December, the same should have been settled on 8th of December (T+2), in your case there was a short delivery of the same and as you have done a BTST there were no shares to debit from your Demat account due to which this email was sent to you. On 11th of December you may either get the shares or cash for the same.
NOTE : Doing a BTST always carries the risk of shares going to auction depending in the shares.
Thank you Shreyas for helping me understand it. I thought no body’s going to look into my query.
I have one more question, Is it possible to deduct any kind of penalty if I do BTST type of trade?
BTST has this inherent risk.
You bought 7 shares from someone.
But that someone had no shares to give to you( ge might have shorted and forget to cover).
But next day you sold that shares that were not yet delivered to you, you were just hoping that shares will get delivered to you the next day. But unfortunately they were not delivered and hence that someone before you and you yourself are both in short delivery.
So there will be a penalty
You cannot totally rule out the risk of shares going to auction when you do a BTST as there may or may not be someone who won’t delivers the shares, but if you do a BTST in the shares which are good, i.e, which trades well there are lesser chances of it going to auction or for you to get a penalty.
But there is one scenario where this can be avoided wherein you have previous holding of the shares you are doing a BTST in, i.e, for example, if you had bought JET AIRWAYS any time before the 6th of December the shares would be delivered to your Demat account and when you do a BTST in the same and if there is a short delivery the shares get debited from your previous holding.
Thank you maddy_des and thanks again Shreyas.
So is there a way to decide if a stock is good enough to do BTST? Was Jet airways good enough?
Jet airways was indeed good enough.
This wont happen too frequently