In this process, the buyer is compensated for short-delivered securities by receiving the value of the securities at the higher of:
- The highest price prevailing in the stock exchange from the trading day to the auction day, or
- 20% above the official closing price on the auction day.
Short Delivery for Specific Categories
- For Z-group securities listed on BSE and trade-to-trade securities on both exchanges, all short deliveries are compulsorily closed out.
- If no bids are received during the auction process from trading members, the securities are also closed out.
Auction Seller Obligations
If the auction seller fails to deliver the securities (either partially or fully) on the auction pay-in day:
-
The deal will be closed out at the higher of:
- The highest price prevailing on the exchange from the trade execution day to the closeout day, or
- 20% above the official closing price on the closeout day.
The additional charges for the short delivery will be levied on the auction seller unless otherwise specified.
