Circular on carry forward charges for short sellers
Summary
This circular clarifies that short sellers who do not own or borrow shares are exempt from paying carry forward charges. Stock Exchanges were instructed to implement this policy for settlements ending after May 31, 2000. Pending software updates, exemptions were granted based on self-certificates regarding share availability.
Text
the short seller who does not either own shares or has not borrowed shares... the carry forward charges shall not be payable to the short seller
This is to be implemented by the Exchanges having the carry forward facility for settlements ending after May 31, 2000
The necessary changes in the software shall be completed by the Stock Exchanges by the end of June 2000
Pending changes in the software, the carry forward charges to the short sellers may be released on the basis of submission of self-certificate by the members to the Stock Exchange about the availability of sufficient number of shares
In case, the short seller holds less number of shares than the shares sold, carry forward charges on the balance shares... shall not be released to the short seller and shall be credited to the Investor Protection Fund
Source: SecMarx — Circular on carry forward charges for short sellers. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.