FORCE SELLING STARTS ON?

STARTS ON T+4 OR T+6 PLEASE COMMENT

I thought it is over..

Dear friend,

T+ 3 or T+ 5 is the settlement circle. Once you by shares you have to settle it (make payment) to your Broker within 5 days(T+ 5) Otherwise Brokers have rights to Force sell your shares coz you have failed to pay. brokers will have to settle it to the seller. If you do not pay within 5 days seller will not get money timely.When you are the seller you are concern on your money and you want money as per settlement circle. But if you have entered in to a credit agreement with your Broker or with any other Financer they will settle the amount on your behalf and you are liable to pay an interest cost.

In simple either you have to pay T+ 5 or you have to enter in to acredit agreement with broker or a Financer to settle your liability on your behalf, Otherwise no option Broker is forced to sell shares bought for you and settle the amount payable to the seller

Rajaraam wrote:Dear friend,

T+ 3 or T+ 5 is the settlement circle. Once you by shares you have to settle it (make payment) to your Broker within 5 days(T+ 5) Otherwise Brokers have rights to Force sell your shares coz you have failed to pay. brokers will have to settle it to the seller. If you do not pay within 5 days seller will not get money timely.When you are the seller you are concern on your money and you want money as per settlement circle. But if you have entered in to a credit agreement with your Broker or with any other Financer they will settle the amount on your behalf and you are liable to pay an interest cost.

In simple either you have to pay T+ 5 or you have to enter in to acredit agreement with broker or a Financer to settle your liability on your behalf, Otherwise no option Broker is forced to sell shares bought for you and settle the amount payable to the seller

nice... good simple explanation.... "When you are the seller you are concern on your money and you want money as per settlement circle". - This tells all..

+ rep for me

in December all over. no more creit problem after that.?

ShareShares wrote:in December all over. no more creit problem after that.?

I think so

ShareShares wrote:in December all over. no more creit problem after that.?

But I guess T+5 selling will remain for Brokers with no liquid asserts ( who cannot extend credit to clients) . But then again it depends on SEC policies . Will SEC change rules again.?

In anycase it might be in best long term interest of CSE that this 2010 Credit clearance will be done once and for all by December 2011. It is a nagging thorn which should be removed once and for all for permanent relief than passed on many times ( as we saw that it kept dragging the market down in March, then May, then September etc) as a platering process which hinders natural market direction.

Rajaraam wrote:Dear friend,

T+ 3 or T+ 5 is the settlement circle. Once you by shares you have to settle it (make payment) to your Broker within 5 days(T+ 5) Otherwise Brokers have rights to Force sell your shares coz you have failed to pay. brokers will have to settle it to the seller. If you do not pay within 5 days seller will not get money timely.When you are the seller you are concern on your money and you want money as per settlement circle. But if you have entered in to a credit agreement with your Broker or with any other Financer they will settle the amount on your behalf and you are liable to pay an interest cost.

In simple either you have to pay T+ 5 or you have to enter in to acredit agreement with broker or a Financer to settle your liability on your behalf, Otherwise no option Broker is forced to sell shares bought for you and settle the amount payable to the seller

I want to something to this, All blame on Ashapillip here because of their rules. Here another thing you have to escape. Now they give only T+3 not T+5. They give T+5 to their closed customers only. So beware, If you waiting for T+5 they will sell at T+3 or sometimes before that...

slstock wrote..

"But I guess T+5 selling will remain for Brokers with no liquid asserts ( who cannot extend credit to clients) . But then again it depends on SEC policies . Will SEC change rules again.? "

Normaly Brokers (who do not have liquidity as per guidlines set by SEC in order to extend credit) inform their clients that they will have to settle dues within 5 days. It is a normal rule. Therefore clients of such brokers know that they will have to settle within 5 days as they do not enjoy credit facility. In case someone failed to pay his dues on time, broker has rights to sell shares bought for him and settle sellers obligations.However, this can happen rarely as brokers are reluctant to buy shares on the orders placed by such investors who do not comply with settlement rules.

Therfore I donot think T+5 is a problem.

banarahu wrote:

Rajaraam wrote:Dear friend,

T+ 3 or T+ 5 is the settlement circle. Once you by shares you have to settle it (make payment) to your Broker within 5 days(T+ 5) Otherwise Brokers have rights to Force sell your shares coz you have failed to pay. brokers will have to settle it to the seller. If you do not pay within 5 days seller will not get money timely.When you are the seller you are concern on your money and you want money as per settlement circle. ... .... ....

I want to something to this, All blame on Ashapillip here because of their rules. Here another thing you have to escape. Now they give only T+3 not T+5. They give T+5 to their closed customers only. So beware, If you waiting for T+5 they will sell at T+3 or sometimes before that...

What right we have to blame anybody ?

Now all know the rules. Anyone who comes to the game should know the rules.

Can you buy a "pann gediya" without paying money ?
Actually they offer us the facility of paying within 3 (or 5) days. It is not our right.

'You can not pay' means you have bought knowing you have no money to pay. It is unfair to the people who play by the rules and pay cash for what they bought.

Mr. A buys 1000 shares by paying money. B do the same thing with no money. After few days both get same profit.

It is good they adhere to the T+3 rule for the people who has bad records or till they judge the people.
In this business you have to maintain your reputation and develop trust. Then they will give even T+100 .
Note: This is my 24th year with MSB

Chinwi wrote:

banarahu wrote:

Rajaraam wrote:Dear friend,

T+ 3 or T+ 5 is the settlement circle. Once you by shares you have to settle it (make payment) to your Broker within 5 days(T+ 5) Otherwise Brokers have rights to Force sell your shares coz you have failed to pay. brokers will have to settle it to the seller. If you do not pay within 5 days seller will not get money timely.When you are the seller you are concern on your money and you want money as per settlement circle. ... .... ....

I want to something to this, All blame on Ashapillip here because of their rules. Here another thing you have to escape. Now they give only T+3 not T+5. They give T+5 to their closed customers only. So beware, If you waiting for T+5 they will sell at T+3 or sometimes before that...

What right we have to blame anybody ?

Now all know the rules. Anyone who comes to the game should know the rules.

Can you buy a "pann gediya" without paying money ?
Actually they offer us the facility of paying within 3 (or 5) days. It is not our right.

'You can not pay' means you have bought knowing you have no money to pay. It is unfair to the people who play by the rules and pay cash for what they bought.

Mr. A buys 1000 shares by paying money. B do the same thing with no money. After few days both get same profit.

It is good they adhere to the T+3 rule for the people who has bad records or till they judge the people.
In this business you have to maintain your reputation and develop trust. Then they will give even T+100 .
Note: This is my 24th year with MSB

No one challenge about your experience. But if you say like this, diffidently you have more experience as an investor but not as a trader...
If they doing their duty correct, then we can trust them. Problem is there. because they surviving by our money. And the other thing people always searching for the best service. If someone treats badly and If this seller don't give you the best facility they will go for another...

THANKS

banarahu wrote:
No one challenge about your experience. But if you say like this, diffidently you have more experience as an investor but not as a trader...
If they doing their duty correct, then we can trust them. Problem is there. because they surviving by our money. And the other thing people always searching for the best service. If someone treats badly and If this seller don't give you the best facility they will go for another...

Every business requires credit, its not an entitlement but its given in good faith.. A stock market cannot survive without credit deals since nobody comes and buys day's trading shares..

But we also have to keep the disciplines, we should not break those.. If everyone keeps paying on T+3, we would not be going into this credit issue at first place.. Why we're seeing the red days is an example of stupid practices by brokers..

Its a prime responsibility of the broker to follow rules and market is a bloodbath today due to some brokers go against the rules.. Here I'm not saying Asha is strictly following credit rules, they may give T+5 for their big customers.. Anything above T+5 is not healthy..
Asha may not be the best broker, but I like it when a broker is following rules..

But that's not the point... The credit should not be granted extending the stipulated time period.. U want credit, u have margin providers...

Well not only for this post and some other post also what i notice is if we got loss in a particular transction then we will blame everybody, and if the transaction is ended up in profit then it was due to self intelligent.

We never going to learn from our mistakes

Gaja wrote:Well not only for this post and some other post also what i notice is if we got loss in a particular transction then we will blame everybody, and if the transaction is ended up in profit then it was due to self intelligent.

We never going to learn from our mistakes

I have learned many things from my mistakes. Follow this method guys!
Thank you GAJA for reminding this common mistake.