Who can participate in the auction market?? Whether the retail clients can participate?
As mentioned in this Z-Connect post, only members of the exchange can participate in the auction market -
When does the Auction happen and who can participate in the Auction market?
It is a special market where only members of the exchange can participate as fresh sellers and sell shares which are short delivered. The Auction market is conducted every day between 2:00pm and 2:45 pm. To make sure that there is no conflict of interest, the exchange doesn’t allow the member whose client has defaulted in delivering to take part in the Auction market.
Retail clients can participate in the auction via their broker (aka trading member). NSE website mentions about this -
If I have shares to deliver, can I take the benefit of the auction mechanism?
Yes, you can ask your trading member to sell your securities in the Auction. However you should ensure that:
a. Shares are readily available for delivery (pay-in day of securities for auction is held within 1 or 2 days of auction) and
b. Shares delivered are good delivery (no opportunity provided for rectification of bad delivery)
Securities not delivered on auction pay-in day or bad delivery of securities delivered in auction are directly squared off at a price specified by the Exchange/Clearing Corporation.
@ShubhS9 whether it is possible that I can ask Zerodha to sell my securities in the auction. If yes how does the following mechanism work?
According to a support page, this is currently not possible -
Can I participate in the NSEs Auction market in Zerodha?
Yes, retail participants are allowed to take part in NSE’s auction market.
However, as per our policies, we do not allow our clients to participate in the Auction market.
Why zerodha has such policy that it doesn’t allows its retail clients to participate in auction
The auction market timing is very limited, there is no way a participant can see the quotes as of now, also it is not possible for us to handle at this scale.
We have plans around it, will update once we are closer to finding a way around this.
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If you are referring to CAS can check on this NSE link : Closing Auction Session - Archives - NSE India.