Can a Person Trade on Share Bought From Other Market?

magnet · #1 22nd October 2011, 12:08 AM

I am asking can a person buy a stock in NSE and sell the same in 5 minutes on BSE?

I am asking this because today for M and B Switchgears a big difference was seen.

There was 3% difference in price of the stock in NSE and BSE.

I tried to buy the stock at 304 .

It was trading at 306 on nse and at same time available on bse for 320+.

Then suddenly it went to 311. And bse it went to 345.

Unfortunately hdfc my broker have change their interface and lot of problems avoided me in doing trade. So I couldn't check it online.

But is it allowed?

Buying on NSE and selling the same in BSE.

Prudent_Investor · #2 22nd October 2011, 03:08 AM

Quote:

Originally Posted by magnet

I am asking can a person buy a stock in NSE and sell the same in 5 minutes on BSE?

No it is not allowed. When you do such a trade you will be issued two separate contract notes for BSE and NSE.

Suppose you bought at BSE at 300 and sold at NSE on 310, you will get delivery of shares for the BSE purchase and will face auction for the short delivery on NSE.

Refer the QnA from Kotak Securities

Quote:

5. I have bought some stock on NSE; can I sell the same under BNST-G in BSE and vice versa?
A. No, you cannot sell the shares at another exchanges. Shares bought at NSE under BNST-G cannot be sold at BSE or vice versa.

9. Can I buy stock in NSE and sell the same in BSE or vice versa?
A. You need to take delivery of the stock bought on NSE and then sell the same in BSE and vice versa. That is, you cannot buy in NSE and square off the same in BSE.

magnet · #3 22nd October 2011, 08:46 AM

Quote:

Originally Posted by Prudent_Investor

No it is not allowed. When you do such a trade you will be issued two separate contract notes for BSE and NSE.

Suppose you bought at BSE at 300 and sold at NSE on 310, you will get delivery of shares for the BSE purchase and will face auction for the short delivery on NSE.

Refer the QnA from Kotak Securities

Thanks for confirming.

I would have been in bigger loss if I had done that as I thought it's allowed and I was going against my will and was buying quantity worth more than 10000 rupees.

ramkasi · #4 22nd October 2011, 12:06 PM

I did tried the same thing in the past, but mistakingly.

When I was doing a day trade i bought some x shares in BSE then sold the same on NSE.

When i saw my trading position i found 2 different trading positions for same x stock. one from nse and other from bse.

Note: For intraday trading you must use same exchange.

magnet · #5 29th February 2012, 10:26 PM

Sorry again for bumping this thread.

But now wanted to ask regarding a long holding position.

Basically I trade in NSE.

But I am trying to sell this said stock in BSE as upper circuit limit of day is 1 rupee more than NSE.

So should I be charged? I bought this share in January for short term a month and two and now getting decent profit.

San Yad · #6 1st March 2012, 05:29 AM

Quote:

Originally Posted by magnet

Sorry again for bumping this thread.

But now wanted to ask regarding a long holding position.

Basically I trade in NSE.

But I am trying to sell this said stock in BSE as upper circuit limit of day is 1 rupee more than NSE.

So should I be charged? I bought this share in January for short term a month and two and now getting decent profit.

Once shares are credited in demat a/c, its your choice whether you want to sell on BSE or NSE.

It does not make any difference.

Happy Investing!