Short sell

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2011 plzz reply

Dear sir,

if i do short sell than it's compulsory to purchase that shares on that same day of sell?????????

and if yes than what will do if i'll not purchase that shares on that same day??????

CS Pawan Kumar Baid

CS Pawan Kumar Baid (Expert)
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25 October 2011 Yes, you cannot keep short sale open.

If short sale is not covered, it may attract penalty as levied by exchange. Some broker charges penalty as higher of following:-

1. Highest price of day of sale + 2 days thereafter, or
2. 7% up of close price on day of sale