If you notice an additional margin block in your trading account, it is usually related to an equity stock position that has entered auction settlement.
This commonly happens when a stock held in your account hits the upper circuit limit and cannot be traded further during the trading session.
When a stock hits the upper circuit limit, trading in that stock may effectively stop for the day due to the absence of sellers. In such cases, exchange settlement obligations may move to the auction process.
If you hold a less-than-intraday position in that stock, the required funds may be blocked temporarily until the auction settlement process is completed.
This margin block is applied as a risk management measure to ensure settlement obligations are fulfilled.
When will the blocked margin be released?
The blocked amount is generally released after the auction settlement is completed.
- The auction settlement usually happens on T+1, which is the next trading day.
- Once the settlement is successfully processed, the extra margin block is automatically removed.
- The released funds become available in your trading account balance.
Which positions can be affected?
This usually applies to:
- Delivery equity positions
- BTST positions
- CNC holdings pending settlement
Intraday positions that are squared off on the same day are generally not impacted by this type of margin block.
What If...
| Scenario | What happens |
|---|
| The stock hits upper circuit and cannot be traded | The position may move to auction settlement and additional funds can be blocked temporarily. |
| I see reduced available margin | The blocked amount is reserved for settlement obligations until the process is completed. |
| The settlement is completed successfully | The extra margin block is automatically removed. |
| I still see the block after T+1 | Check your Funds page or contact FYERS Support for verification. |
Important points to remember
Additional margin blocks related to auction settlement are temporary and are part of the exchange settlement process.
The blocked funds are not deducted permanently and are usually released automatically once the settlement cycle is completed.
Last updated: 08 May 2026
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