Hello
Yesterday I short sold 750 Shares of X company (464) by using Margin (70,000) Later stock hit Upper circuit and I’m unable to close the position. I see my entire account balance is blocked and showing -4000. and open position is not showing in web or anywhere else.
I’m unable to understand the trade and consequences. Please help me what are the possibilities of this trade?
Hi @N10190, Welcome to the Dhan Community !
If short sell equity intraday position is not closed on the same day due to upper circuit. In such scenario, there will be an auction conducted by exchange and it will be settled within T+2 working days. Due to which 120% margin gets blocked until settlement.
You may wait for T+2 working days for the settlement/auction process and check your balance on T+3 working day.
I’m reading entire capital will be lost on such trades. Is it true? Please help to understand the total trade. Nowhere clearly mentioned about this.
Hi @N10190,
You may refer to the auction settlement bill which is send on registered email address and also the ledger entry with narration “NSECMAFINAL BILL” for the debit amount.
For instance, if you short-sell a share at Rs. 100 and fail to close the position due to an upper circuit; In such scenario, the exchange conducts an auction to buy the shares on behalf of seller customer who have not given delivery of shares. The settlement for the same is completed on T+2 day. The auction’s price range is set at 20% at the upper and lower end. Therefore, the buy price will be at Rs. 120 including the penalty of Rs.20 and not the entire capital.