This has happened due to what is called a BONUS ISSUE
Bonus issues are allotted in fixed ratios like 1 : 1 , 2 : 1 , 3 : 1 , etc.
Let us assume you had 25 shares of stock abc bought at Rs 160. Let us
see how the dynamics change for various allotment ratios in case of a
Bonus Issue in the same stock.
The reason for Error
There was a bonus issued for APLAPOLLO on Sep 16, 2021, in the ratio 1 : 1.
This means that for every one share of APLAPOLLO you hold, you will
receive one extra bonus share.
Let us take an example
Let’s assume you had 15 shares of APLAPOLLO.
After a 1 : 1 bonus issue on Sept 16, 2021, you will now have 15 additional
shares (which is 1 additional share for every share you hold). You will have
30 shares of APLAPOLLO in total. Though your Smallcase account will
reflect this change on the ex-date, it can take up to 14 days for the
additional shares to be credited to your Demat account.
You may execute the buy orders of the rebalance now and later execute
the sell orders once the quantities of APLAPOLLO in your Smallcase and
your broker holdings match.
Step 1 – Repair Buy Orders
You may add additional funds equivalent to the value of the Buy Orders
and click “Repair Order” to execute the buy trades.
Step 2 – Repair Sell Orders
You may further Repair the order once again after your broker holdings
reflect the updated shares (30 nos) of APLAPOLLO post bonus issue
(which is upto 14 days after the ex-date).
In a rebalance, let’s say stock X (100 shares at current market price of Rs
75) were to exit the portfolio with a SELL value of Rs 7500
and replaced by stock Y (15 shares at current market price of Rs 500)
with a BUY value of Rs 7500
If stock X could not be sold due to Bonus Issue related problem, we shall
not receive a credit of Rs 7500 which would further not process the BUY
orders because of insufficient funds in our broker acount.
This will require you to add funds equivalent to the BUY order (Rs 7500)
to ensure that the BUY orders go through while SELL order can be
repaired when the quantity of shares in Smallcase and Broker Holdings
We would also request you to read about the need to have buffer funds
in your Smallcase.
If you have any further doubts or questions, please send an email to firstname.lastname@example.org