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What happens if one fails to submit shares sold?

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What happens if one fails to submit shares sold?

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In case, one fails to deliver the shares sold in the Rolling Settlement, the Exchange conducts an Auction of the quantity short delivered/ not delivered on T+4, to meet the obligation of delivery of shares to the buyer. In this Auction session, offers are invited from fresh sellers for quantities short delivered. The highest offer price is allowed upto the close-out rate and the lowest offer price in auction can be 20% below the closing price on a day prior to the day of auction. The member through whom one has sold the shares is not allowed to offer shares in the scrip for which he has failed to make delivery. In case no offers are received in auction for a particular scrip, the sale transaction is closed-out at a close-out price, determined by higher of the following:- – Highest price recorded in the scrip from the settlement in which the transaction took place upto a day prior to the day of the auction. OR – 20% above the closing price on a day prior to the day of auction. However,

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