List of stocks and their quantities for auction today
In Indian markets, every time someone short-delivers or fails to deliver shares after selling a stock, an auction is conducted. Short delivery mostly happens when the person with a short intraday position on a stock cannot buy back the stock due to the stock hitting the upper circuit. The other large reason for short delivery is when F&O positions get assigned for physical delivery without sufficient stock holding. The auction markets until now have been illiquid because there has been a limited number of sellers. This meant that when the shares a customer failed to deliver were bought back, the buying price would be as high as 20% above the current market price. This would cause significant losses to the seller, who got unlucky with a short intraday position.
We have now opened up auction markets to all our customers, hopefully reducing the spread between the price in the auction markets and the regular traded prices. This will help bring liquidity to the auction market, you will also have some money-making opportunities.
Auction orders on Kite
On Kite web (soon on the app), you will find “Auctions” under the “Orders” section.
- When the market opens at 2 PM, if you hold stocks that are listed for purchase in the auction session, you will see them here and the eligible quantity of shares you can sell.
- You can place a sell order if you wish to sell them and try to get a better price, as there are limited sellers.
- You can click on the “Sell” button to see the market depth and place an order at a price of your choosing. Unlike the normal session, orders are matched at the end of the trading session around 2.30 PM, and the orders are filled with price-priority like a pre-open session.
- If your order is filled, you will receive 80% of the sale value in your account instantly, and the rest will be available to trade on the next day.
Can you buy stocks in the normal session and sell in the auction market?
No, since the auction session is conducted to settle the buyer who was short-delivered immediately, you will only be able to sell stocks already lying in your Demat account. Any stocks purchased on the same day or one day earlier will take T+2 days to be settled in your account.
Can auction orders be modified?
No, auction orders cannot be modified; however, you can cancel and place a fresh order within the auction session with the modified price and/or quantity.
Can I cancel my pending or partially filled auction orders after the auction session ends?
Pending and partially filled orders cannot be canceled after the auction session ends. The exchange will automatically cancel them at around 4:30 PM. Also, if the client participates in the auction and the order is pending or partially filled, the shares cannot be sold in the normal market for the day. Please keep this in mind if you plan to sell your unfilled shares in the normal market on the same day.
Is there any additional charges for selling in the auction market?
No, we will treat this as any other equity delivery sale trade for which the brokerage is zero. Other charges such as exchange transaction charges, stamp duty, STT will apply as usual.
At what price can I place an order?
You can look at the market depth of the auction symbol and the normal symbol and place a competing offer price. The circuit limits in the auction market are at 20% from the previous day’s closing price.
Where can I find the list of stocks and quantities that will be up for auction?
The exchange releases the list between 12 PM and 2 PM daily, we will be updating the same on this Google sheet. At 2 PM, when the auction market opens, you can find the list of stocks that you have in your holdings that are part of the auction on the Kite Auction orders page itself
Note: While the auction market typically opens at 2 PM, sometimes, it can be delayed up to 2:45 PM.