Comment on Consequences of Short delivery - NSE/BSE

Venu commented on 16 Mar 2017, 09:17 PM

In such a case, the exchange settles it in cash on the basis of Close out Rate. Close out rate is the highest price of the stock from when you sell to the Auction day or 20%, whichever is higher.

In the case where there are no sellers available in the Auction market, the Exchange settles it by way of a cash credit on the basis of the ‘Close out’ rate. Close out rate is the higher of the highest price of the stock from when you sell to the auction day or 20% above the closing price, on the auction day.

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