What happens if i sell shares and do not have the shares to deliver ?
If you have sold shares and do not deliver the same, then NSCCL conducts a buying-in auction for security shortages on the day after the pay-out day through the NSE trading system. If the buy-in auction price is more than the valuation price (closing price of such securities, on the immediate trading day preceding the pay-in day) , the client who has gone short is required to make good the difference. All shortages not bought-in are deemed closed out at the highest price between the first day of the trading period till the day of squaring off or closing price on the auction day plus 20%, whichever is higher. This amount is debited to the selling client account and credited to the receiving clients account on the auction pay-out day.
