Auction Avoid auction of your stock if you want to avoid the loss Auction is the process in which the

stock exchange auctions the stock holding of an investor when he or she had sold the stock but can not deliver the stock within a stipulated time. The process is kind of a penalty for a stock market investor as apart from the price of the stock the stock exchange also slaps a fee for he auction which is not a small amount at all. So, it is always advisable that you take all the necessary measures to avoid the auction of your stock. In most cases the auction happens due to the carelessness of the investor. So, it is necessary that you take your buying and selling decisions meticulously and with apt care so that you can effectively avoid a drastic step like auction. Online trading is a great way to avoid auction. As you make all your stock market deals yourself without depending on your broker and through the transparent online trading process, it is easier for you to keep track of the stocks you hold and your buying and selling of the shares. With online trading portals you can see your current portfolio whenever you log in to your account and take the decisions all by yourself. It is therefore an effective way to manage your stock market investments and avoid auction of your stocks after you sell them.

From a buyers point of view auction is an effective process that safeguards his or her dues. In fact auction of the stock is done to provide the buyers with the stocks that they have purchased from a seller.

De-jargoned | Trade-to-trade stocks

De-jargoned | Trade-to-trade stocks Saurabh Kumar First Published: Thu, May 17 2012. 01 15 AM IST Also Read

India strategists see Sensex climbing to record on earnings Exchanges shift Kingfisher, UB Holdings to restricted group De-jargoned: Open architecture in Bancassurance De-jargoned: Hedging De-jarg[\oned: capital flight

Updated: Thu, May 17 2012. 12 15 PM IST What is it? So far this fiscal, the stock markets have relegated at least 50 companies to the trade-to-trade segment. Here, investors cant undertake speculative trading and delivery and payment of shares is mandatory. This essentially means that if a share is transferred to this category, investors are not allowed to square off intra-day positions. Why is it done? This is done as part of the preventive surveillance measures taken by the bourses to ensure market safety and safeguard the interest of investors. Suppose, the overall market is bearish, yet there is a significant surge in a particular scrip which is neither supported by market conditions nor the fundamentals of the company. This could indicate that market participants are artificially pushing up the stock price. For instance, some of the stocks that have been moved to this category this fiscal gained at least 107% compared with 6% gains by the benchmark BSE Sensex. Stocks are also transferred to this category if, say, the markets are doing well but a stock falls significantly. This may mean that participants are offloading their position either to pick the stocks at lower valuation or just booking profits from the artificial price created earlier. Whenever such suspicious movement is seen in any scrip, the bourses take such action, which is then reviewed at periodic intervals. There are various criteria (price-earnings, market capitalization and price variation) to scrutinize these scrips. The decision to move a stock to or from this category is taken jointly by the bourses. The capital markets regulator, the Securities and Exchange Board of India, is also consulted for such a decision. What it means for you Usually, when such decisions are taken for any scrip, investors should be vigilant and should refrain from investing in them. Since such a decision is taken after much deliberation by bourses, it indicates that the performance of the company in the past, the fundamentals of the business and other key parameters are not supporting the stock valuation. If you are already invested in such scrips, then it is advisable that you exit your positions. The reason: if the prices have been artificially pushed up and the bourses or the regulator finds any wrongdoing during the review process, the prices will eventually fall. Alternatively, if you hold

stocks that have depreciated abysmally and have been transferred to this category, you have few options other than exiting as the bottom may be too low.

BSE to shift 54 stocks to 'T' category; NSE to move 17 scrips

PTI Jun 11, 2013, 06.39PM IST Tags:

stocks| Salora International| NATIONAL STOCK EXCHANGE| HB| BSE

(BSE and NSE have identified) MUMBAI: Leading bourses BSE and NSE have identified over 70 scrips in all, including Sun Pharma Advanced Research Company and Salora International, for shifting to the restricted trading category from June 14 as a measure to ensure market safety. NSE said it would shift 17 stocks to the trade-to-trade segment or "T group", while BSE would move 54 scrips to the category, the exchanges said separately. Ads by Google

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The National Stock Exchange (NSE) would transfer 95 stocks back to rolling segment from the restricted trading category, while BSE would shift 309 scrips to the segment.

The changes would be effective from from June 14. Moreover, NSE said 39 stocks would continue to be available for trading in "T group", while the figure stood at 393 for BSE. Under the 'trade-to-trade' segment, no speculative trading is allowed and delivery of shares and payment of the consideration amount are mandatory. In case of the rolling settlements, trades done on each single day are settled separately from the trades done on earlier or subsequent trading days. Among the stocks which would be moved to the 'T' group on both the exchanges are -- ANG Industries, Morarjee Textiles, Orient Abrasives and HB Stockholdings. The stocks such as A2Z Maintenance & Engineering Services, Gemini Communication, Indiabulls Wholesale Services, Khaitan Electricals, Triveni Engineering & Industries would be shifted back from T category to rolling segment. The exchanges said that scrips including Kavveri Telecom Products, Mudra Lifestyle, Zenith Birla (India) Ltd, Usha Martin Education & Solutions and Todays Writing Instruments would continue to be available for trading in "T group". According to the bourses, the changes are part of the preventive surveillance measure taken by bourse to ensure the market safety and to safeguard the interest of investors. They have advised investors to take "adequate precaution" while trading in the restricted category scrips as the "settlement will be done on trade-to-trade basis and no netting off positions will be allowed". However, the bourses said that the transfer of security for trading and settlement on a trade-totrade basis is purely on account of market surveillance and it should not be construed as an adverse action against the concerned company.