An auction occurs when the seller of the shares has not made available the shares on the settlement day. To fulfil the obligation to the buyer of the shares, the exchange carries out an auction for the shares in the open market.
If the auction fails, then the exchange will close out the transaction by settling the buyer’s obligation in cash. The close-out price paid to the buyer will be the highest price of the stock from the transaction day till the auction day or 20% ...
The seller who fails to deliver the shares to the buyer will be debited the difference between auction settlement price and the original price along with an auction penalty of 0.05% per day that the seller fails to deliver the shares. In case the ...
In case your Intraday Equity short position is not squared off due to the absence of buyers or failed due to any reasons. This will be considered as short delivery, which means the seller of the shares has defaulted on the settlement of shares hence ...