Comment on Consequences of Short delivery - NSE/BSE

A commented on 30 Oct 2014, 07:28 PM

I had a query regarding short delivery. If you fail to buy the shares the shares will be bought by exchange and settled in T+3 days. For the auction settlement the lower limit of the price is the closing price on T+1 day. So even if the auction prices are less than the closing prices I have to pay that T+1 closing price for buying the shares for delivery. The rest will be looted by the Investor Protection Fund. I understood this part.

But is there an upper limit to the max amount I have to shell out to buy each share? I know it totally depends upon the auction price but I think there should be an upper limit to the price as well. Does anyone have any idea about this upper limit?

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