How to avoid short delivery?
Short delivery occurs when you sell shares that you don’t actually hold in your Demat account or fail to square off intraday positions. This can lead to penalties and auction settlements. Fortunately, it’s easy to avoid if you follow some basic practices.
Ways to prevent short delivery
Verify your holdings before placing a sell order
- Always ensure the quantity of shares you plan to sell is available and settled in your Demat account.
- Avoid selling T+1 or unsettled shares from recent buy trades.
Square off intraday trades before market close
- If you’ve taken intraday positions, make sure to exit before 3:15 PM.
- Unclosed positions may convert to delivery trades and cause issues if you lack holdings.
Watch for stock restrictions
- Do not attempt to sell stocks in ban periods, illiquid scrips, or those with trading restrictions or circuit limits.
Stay updated with notifications
- Check messages from FYERS and alerts from exchanges (NSE/BSE) that may affect your trade execution or delivery.
Use the FYERS holdings section to verify whether stocks are settled and available for sale. Selling unsettled shares can result in short delivery.
What if...
| Scenario | Outcome |
|---|
| I sell stocks on T+1 that aren’t yet settled | Could result in short delivery and auction penalty. |
| I forget to close an intraday position | It might turn into a delivery sell—check your holdings to ensure coverage. |
| The stock hits upper/lower circuit | Your sell order may not execute, increasing the risk of delivery failure. |
Last updated: 23 Jun 2025
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