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 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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