RMS: Rule: Check holdings.
This error occurs if a CNC sell order is placed without having those particular shares in holdings.
Also if a user has purchased shares in one of the exchanges & is trying to sell it another exchange without the shares being credited to his DEMAT account [T1 qty]
Also, BE/T category shares can only be sold after T+1 Days when the share is delivered to the users Demat Account. Refer
here
for more information on trade to trade stocks. If a user is trying to make intra day trades or BTST trades, the order gets rejected & the above error is displayed,