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.

See also:

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?

How does Internal Short Settlement work?

Comments

  1. Shrinivas Deshpande

    Is short selling applicable only for intraday? Can I buy back after a week when the share price has reduced further?

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