How to Close Out if the shares are not bought in the auction?

Published Oct 17, 2024

In this process, the buyer is compensated for short-delivered securities by receiving the value of the securities at the higher of:

  1. The highest price prevailing in the stock exchange from the trading day to the auction day, or
  2. 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.


Frequently Read Articles

Still need help?

South Asian Stocks Ltd. : NSE Member Code 09073, BSE Member Code 6329, MCX Member Code : 55215 , NCDEX Member Code : 1233 NSDL : IN-DP-474-2020 . SEBI Registration No. INZ000164738
Compliance Officer: NSE,BSE,MCX,NCDEX,NSDL : Mr RK Jain , 011-40409999 support@stocko.in
Registered Office : 3rd Floor, Building No.5, Local Shopping Complex, Rishabh Vihar, Near Karkarduma Metro Station. East Delhi – 110092


For any complaints related to South Asian Stocks Ltd email at complaints@stocko.in
Please ensure you carefully read the risk Disclosure Document.
Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective communication, Speedy redressal of the grievances