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How will a stockbroker’s bank make good any over-trading?

April 26, 2017Bank good over-trading stockbroker

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How will a stockbroker’s bank make good any over-trading?

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Before settlement is effected, the over-trading if it ever occurs will be cancelled. Where the stockbroker short sold, The NSE will cause the defaulting stockbroker to buy the Short-Sold security from a Buy-In Market at a premium before the settlement day. The stockbrokers’ bank is not affected by Over-Trading.