How it Unfolds:<\/strong><\/p>\n\n\n\n Identification and Notification:<\/strong> On T+1 day (a day after the transaction), TradeJini identifies short deliveries and notifies the concerned clients<\/p>\n\n\n\n Auction by Exchange:<\/strong> On T+1 day, an auction is conducted by exchange to secure shares from other potential sellers in the market. <\/p>\n\n\n\n Delivery to the Buyer: <\/strong>Shares obtained from the auction are delivered to buyers by T+2 day. Buyers can view these shares in their Demat account by T+3.<\/p>\n\n\n\n Penalty on Defaulting Sellers:<\/strong> Sellers unable to deliver the shares face penalties. The penalty is the difference between the auction price and the original close-out rate. If auction rates are lower than the close-out rates, then the difference between these two rates will be deducted from the seller\u2019s account on T+2.<\/p>\n\n\n\n Cash Settlement:<\/strong> If shares are not available during the auction, exchange settles the transaction in cash. The settlement amount is determined by the close-out rate, which is either 20% above or below the closing rate. This amount is credited to the buyer and debited from the seller by T+2 .<\/p>\n\n\n\n Impact on Buyers:<\/strong><\/p>\n\n\n\n Delayed Delivery:<\/strong> Buyers may experience a delay in receiving shares or might receive a cash settlement.<\/p>\n\n\n\n Missing Corporate Actions:<\/strong> During this period, buyers might miss out on corporate actions like dividends declared by the company.<\/p>\n\n\n\n Impact on Sellers:<\/strong><\/p>\n\n\n\n Penalty Charges:<\/strong> Sellers face penalties if they cannot deliver the committed shares.<\/p>\n\n\n\n In essence, while buyers may face inconvenience, they do not suffer financial losses. Sellers, however, may encounter penalties and other repercussions.<\/p>","protected":false},"excerpt":{"rendered":" Short delivery in the stock market refers to a scenario where a seller fails to deliver the committed shares during settlement. This usually happens if a seller unintentionally sells shares which they do not possess or if a particular stock faces liquidity issues. How it Unfolds: Identification and Notification: On T+1 day (a day after […]<\/p>","protected":false},"author":1,"featured_media":0,"parent":10846,"menu_order":5,"comment_status":"closed","ping_status":"closed","template":"","doc_tag":[],"acf":[],"_links":{"self":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs\/10860"}],"collection":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs"}],"about":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/types\/docs"}],"author":[{"embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/comments?post=10860"}],"version-history":[{"count":0,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs\/10860\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs\/10846"}],"wp:attachment":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/media?parent=10860"}],"wp:term":[{"taxonomy":"doc_tag","embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/doc_tag?post=10860"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}