BTST,if i buy cnc shares in monday,i sell same in BTST

if i buy cnc shares in monday,i sell same in BTST (Tuesday),
in this case

i sell shares which i actually didnt have

1)when i didnot able to sell shares with in DATE because of my buy trade delay"
(in Brief if someone sell shares to me which he did nt have,so auction will happen and cause delay to me)

in this time i sell shares which actually i didnt have,i am not able to know my buy trade is to be Delay,but i sell according to BTST

so it cause any charges like auction charges for me also


  1. Equity shares for delivery follow a T+2 rolling settlement cycle, where T = Trade Day.
  2. When shares are short delivered on T day, it is settled on T+3 day after the auction market.

Shares bought on T and sold on T1 - Risk of Auction for a BTST trade

Lets say the shares you bought on T day are short delivered by the counter-party(The seller of the shares did not possess the shares while selling it and seller was unable to buy back the shares sold to you). You will receive the credit of these shares into your demat account only after auction settlement by the exchange on T+3 day. The person who sold the shares to you and short delivered it will have to pay an auction penalty which will be the difference between the auction buyback price and his shorting price.

Now when you sell the shares on T+1 day(BTST), you will not have these shares in your account on T+2 day. When shares are sold from your demat, the exchange will monitor on the next day if these shares are available in your demat. Since the shares will not be available in your demat on the next day, you will end up short delivering. Hence, you will have to buy these shares back from the auction market in order for it to be settled.


Thanks for reply,
May i know
how many auction charges come
if i trap in above case
like I buy 1,00,000 qty at 5 rs
and sell it in BTST
at 5.05 rs???

@sadeeshtn , kindly see through this link…auction penalty