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I had short sell through MIS order 7000 shared at 460 rupees in VIP industries,but the stock hits upper circuit 462.95 rupees on Thursday,so that Couldn't able to square off the position.My account opening balance is around 5.7lakhs but now showing -89k.May I know the leverage and penalties for the short sell.When the auction finalised amount can be settled into demat amount??.Someone help me to understand the process

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Sujit Chakraborty
Active Option Writer and Long Term Investor

Not sure, it'll be quite a big penalty though from the exchange. Always keep a strict stop loss and avoid short selling at higher levels. Why not just stick to stocks that trade in derivatives market? There is no risk of upper circuit in F&O stocks and it is easier to exit in panic situations. 

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