When I tried to rebalance my portfolio, I noticed that one of the sellorders was not going through despite several attempts to repair it.6 min read

I tried selling it directly from my broker terminal too but that failed as well
with the following message. What does it imply ? How do I sell this stock
? How to solve this issue ?

Answer


For stocks in Trade to Trade category, you shall be able to sell them on
Day T+3 . ie If you buy the share on T Day, you can expect to receive the
shares in your DEMAT account only by the end of T+2 day. You may be
able to sell the shares only on T+3 day.
(T refers to trade days. Market holidays don’t count)
For Example, If you buy a trade to trade stock on Monday (T Day), you will
receive that stock in your DEMAT by end of Wednesday (T +2) and shall
be able to further sell it only by Thursday (T+3).
If a Trade to Trade stock is a part of a rebalance and it remains unsold
due to the above mentioned reason, please note that you may need
additional funds temporarily (approximately equal to the sell value of
stock whose order did not go through) to complete the purchase of
other stock(s) in the rebalance. It is always suggested that you hold 10%
of the portfolio’s value as buffer funds to tackle scenarios like these only
on the day of rebalance.
(ex) Let’s assume you invested into a smallcase on Aug 05 2021
(Thursday). In the next rebalance on Aug 09 2021 – stock A (a trade to
trade stock) exits and Stock B is added. The Total Sell value of stock A is
Rs 10,000 while Buy value of stock B is also Rs 10,000. Let’s take 2 cases
of rebalance here.

Stock A – Being a trade to trade stock will remain unsold due to the
above mentioned reason in either of the cases.
If stock A had exited the portfolio without any issues, this would’ve
resulted in a credit of Rs 8,000 in your BROKER account thus enabling
the purchase of stock B with additional funds of Rs 2,000 (Refer to the
note below
). During circumstances when you are to rebalance within T+3
days of purchase, the only option in hand is to make sure there are
enough funds in your BROKER account temporarily to carry out the other
orders.
Note : Only 80% of the credit against the sale value can be utilized to
buy other shares on the same day. You may need to have some buffer
funds to facilitate other buy orders depending on the rebalance
scenario. We will have a detailed article on this.
Having understood the theoretical part, Now let us see how we can solve
this.


Note : You can only use 80% of the total sell value to buy shares on the same day.
After executing the remaining rebalance orders, we have listed two ways
in which you can handle a trade 2 trade stock which is within T+3 day
range.


Solution (a) : Archive & Manage
Step 1 : Log in to your Smallcase Account
Step 2 : Click on “Your Name” / “Profile
Step 3 : Click “Orders

Step 4 : Click “See all Batches

Step 5 : Click “See all Errors

Step 6 : Click “Archive Order” & “Confirm Archive

Step 7 : On T+3 Day, you may log in to your Smallcase account and select
the same Smallcase.

Step 8 : On T+3 Day, you may log in to your Smallcase account and
select the same Smallcase.


Step 9 : Click “Manage

Step 10 : Reduce the quantity of the stock to be sold to zero

Step 11 : Click “Manage Smallcase“. You will also see a notification on
bottom left corner that you will receive funds equivalent to sale value.

Scenario of manual exit from broker account


On Day T+3, If you have sold the stock manually from your broker
account, kindly ensure you fill up this FORM to have your Smallcase
synced with the manual exit. We would strongly suggest you adopt either
of the above two solutions and refrain from manual exit unless there is no
other way out.


If you have any issues beyond the solutions given above, you may write
to us – support@weekendinvesting.com for further help.

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June 17, 2022 by Weekend Investing
by Weekend Investing

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