What happens if the shares are not bought during the auction conducted by the exchange?
If the auction fails, then the exchange will close out the transaction by settling the buyer’s obligation in cash. The close-out price paid to the buyer will be the highest price of the stock from the transaction day till the auction day or 20% higher than the official closing price on the auction day, whichever is higher.
What is an auction?
An auction occurs when the seller of the shares has not made available the shares on the settlement day. To fulfil the obligation to the buyer of the shares, the exchange carries out an auction for the shares in the open market.
What happens to stocks after pledging? Is it transferred to the broker or exchange to provide margins?
Once the shares are pledged, your holdings are sent to the exchange and the margin for the same is released by the exchange. FYERS merely credits the pledge margins into your trading account. Check out this article for the procedure to pledge your ...
What happens if we sell the pledged shares without unpledging?
If you have pledged shares and have received additional margins to trading in Equity F&O, you are not allowed to sell the pledged shares during this period. Any pledged shares sold will result in peak margin penalties. The right way to sell the ...
What are Exchange Traded Funds (ETF’s)?
An Exchange-Traded Fund (ETF) consists of a pool of securities similar to Mutual Funds traded on an exchange. ETFs are continually priced and can be traded between the Equity market timings, i.e., between 9:15 AM and 3:30 PM. Buying/Selling ETFs is ...
Why does my recently transferred shares to FYERS Demat A/c show the Buy Average as Zero?
The shares transferred from other Demat to FYERS shows the Buy average price as zero as the shares were not bought in FYERS and the price of purchase will also not be available. Hence, you’re required to send the Statement Of Accounts (SOA) to ...