Why are some scrips not allowed for MIS short selling?

Trading
1

Hi friends,

What is the reason that the RMS does not allow some scrips for short selling (MIS) ?

Thanks

2

Some are Z category shares. You can’t do short sell in them. You can buy them. and then you can sell. Like Radico, PCjeweller etc…

3

@DahiyaRavi Ok but what is this z category ? what makes a company come under z category ?

4

I check list in my Indiabulls account. In lay man language you can say stocks that do not run properly and break circuits regularly are kept in this category.
Sudden high and low rallies in such stocks. They are highly volatile.

5

Thanks bro…

6

First u tell which one u want to short, that will make it clear why they disabled shorting

7

I guess Z category means those shares which haven’t resolved investor queries and irregular in compliances. And also shares pending dematerialisation with CDSL or NSDL. List is made daily of shares which are banned from intraday which mainly contains volatile shares.
Some shares in T group cannot be sold without taking delivery of those shares.
Like even though it is T+1 day, you will not be able to sell those shares.

8

@Siddharth_Dharod : Thanks bro, this T category shares that you told is a new thing to me.

9

https://www.bseindia.com/markets/equity/EQReports/tra_trading.aspx
You can check this page out, bse has explained all types of categories

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