The Settlement for Equity Delivery (payin of shares to the exchange) takes place on T+2 basis. It means the shares bought on “T” or Trading day (e.g. Monday) are to be received by the Buyer on T+2 day (i.e. Wednesday).
Similarly the shares sold on “T” (e.g. Monday) are to be delivered to the exchange by the seller on T+2 (Wednesday) to get the proceeds (cash) from the sale.
The failure of the seller to deliver the shares to the buyer on T+2 as obligated is called Short Delivery.
What is Short Selling of shares?
What can cause a Short Delivery?
What happens in case of Short Delivery?
How does the auction process work in case of short delivery?
Is short selling applicable only for intraday? Can I buy back after a week when the share price has reduced further?
Yes, the short selling is applicable only for intraday for now.
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