What steps does the exchange take if shares aren't procured during an auction?
If an auction doesn't result in the acquisition of the required shares, the exchange will ensure the buyer's obligation is settled in cash. The compensation amount is the higher of two values: the peak stock price from the day of the transaction to the auction day, or 20% above the official closing price on the auction day.
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What is an auction?
When a seller doesn't provide the shares by the settlement day, an auction is initiated. The exchange undertakes this auction to source the shares from the open market, ensuring the buyer receives the shares they've purchased.
How to transfer shares using CDSL Easiest via FYERS?
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What penalties does a seller face for short delivery of shares?
If a seller is unable to deliver the promised shares, they will be charged the difference between the auction's settlement price and their original selling price. Furthermore, an auction penalty of 0.05% per day is levied for each day the shares ...
What are Exchange Traded Funds (ETF’s)?
An Exchange-Traded Fund (ETF) consists of a pool of securities similar to Mutual Funds traded on an exchange. ETFs are continually priced and can be traded between the Equity market timings, i.e., between 9:15 AM and 3:30 PM. Buying/Selling ETFs is ...