Sunny i donno if i have been that much clear with my question or not but lets put it this way. Squaring off by broker is not a problem. What i want to know is can i loose more than i trade in Futures. So i took the example of only 50K, lets say if it is 10 crores, then with the above case the additional loss is 5crores outside my trading account. Also dont forget on Circuit days the volume is very very less. On 18th May 2009 the turnover was only 114 crores and on avg it is around 9000 crores. So if the brokerage firm is not able to find buyers for my position then what will happen.
AM i liable for this situation in any case. How will the loss of 5crores be settled? Since 5 crores is not a small amount so ...
I know this is a highly complicated question i have asked but i cudnt found anything related on this.
Inputs from experienced pros like Sudoku and Paul and also manohar and others will be appreciated.
Thanks.
See As per my knoledge and as i spoke to a broker (Onwer of a Branch) known to me he told me that if such matter happnes then first thing is
the persons shares on his a\c will be squared off if atall any available but as u said that subject has no holding so the loss will be beared by the Customer itself and not by broker
he cannot even reduse any charges on that particular transaction except brokerage that too he can wave of 99.99 % of brokerage whatever is been charged to u .01% which is thou negligeble but will be beared by client and on top of that when we open a Dmat a\c with a broker we sign a document where we allow out Broker to take any legal action or mark Lien our Bank a\c linked with him for the requeired amount like of 75k or 2-5Cr or what ever until all penies are recovered and on top of all now as sebi has stopped margin shotfall on F&O products so SEBI will also charge u for that shotfall (u need to visit sebi or nse website and see circulars where all charges are given) so if ur given bank a\c is not having sufficient funds so ur broker may black list u first and if a subject has a a\c in other broker also and he has any holding over that all his Dmat a\c with all brokers would be seized and not relised until every thing is setttled and but its only dmat a\c under subjects name if his true brother or father , mother also has a\c they are safe and if all the above method of recoveries fails then he will be dragged in court and after that a Lawer can answer this question better with all clauses and every thing because it is a condition u gave like 18/05/2009 the day had a 3 point Gap up in spot nifty and mkt inched slowly or may be spiked suddenly RMS (Risk Management System) will automatically handle the matter and we have a Dpr value which is around 3-5% max then exchange will open limit which is all high funda thoughts
ur question is not clear but i hope this answer is clear to u
one thing is for sure if subject loose he will have to pay
subject will have to sell his assets or house, Gold, take money on intrest or come what may be the situation the only thing is in such a matters subject will be given more time then in normal defaults as it would be mass default and not only one person would be in loss
sau baat ki ek baat
I am an Astro and Technical trader and i personally dont see any movement in Nifty or NSE what ever u call it of more than 5-7 % and RMS 2-2.5% ke upar subject ko nahi chodegi phir chahe woh Circuit hoye ya kuch bhi and many times we have un disclosed buyers and un disclosed sellers many complication work behind all this
i would also like to say u ki
jo subject 2-5CR ka sauda karega woh yaar itna garib nahi hoga ki uska loss nahi utha paye and same is with 50k trade :thumb:
