How does the auction process work in case of short delivery?

Auction Timing & Participants The auction is conducted every day between 2:00 pm and 2:45 pm. Only member brokers of the exchange can participate and sell shares which are short delivered. To avoid any conflict of interest the exchange doesn’t allow members whose client has defaulted (short delivered) to take part in auction. The auction […]

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What is Short Delivery?

The Settlement for Equity Delivery (payin of shares to the exchange) takes place on T+2 basis. It means the shares bought on “T” or Trading day (e.g. Monday) are to be received by the Buyer on T+2 day (i.e. Wednesday). Similarly the shares sold on “T” (e.g. Monday) are to be delivered to the exchange […]

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What happens in case of Short Delivery?

In our another article What can cause a Short Delivery? there has been a Short Delivery of 100 shares. When you sold those shares (Tuesday) there was someone on the other side who bought those shares. Because of short delivery he won’t get the shares. So the exchange will purchase them in a buy-in auction market […]

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How does Internal Short Settlement work?

In this process short delivery is settled by the Member broker internally among his clients instead by the exchange through buy-in auction. For eg. Suppose ‘A’ & ‘B’ are clients of the same broker. Client A has bought 100 shares of RIL for delivery and on the other side of that trade B has sold […]

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What can cause a Short Delivery?

Let us take a look at a few scenarios with an example. Scenario 1: Stock hits an upper circuit You have short sold 100 shares of ACC in intraday (Product code MIS) expecting the price of ACC to come down during the trading day and make a profit. However during the day news broke out […]

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What is Short Selling of shares?

Short selling means sale of shares that are not owned by the seller. Traders indulge in short selling in the belief that the stock’s price will decline, enabling it to be bought back at a lower price to make a profit. See also: What is Short Delivery? What can cause a Short Delivery? What happens […]

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