What is the auction penalty one has to pay that may arise because of short delivery while executing BTST/ATST ?
Pl elaborate about the auction penalty that may arise because of short delivery in BTST/ATST trading
The auction penalty depends on the demand/supply of the stock in the auction market on that particular day. So there is no set rule. Check this post.
Action penalty is based on the price of auction in the auction market.
You will be penalized in the range from almost nothing to about a 20% of the share price multiplied by number of shares you sold and failed to deliver.
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-----0.05% of trade (turnover) as penalty by NSE, if auction market gives you favorable price (price lesser what you sold)
-----additionally if any client penalty laid by zerodha (need confirmation on this, not sure)
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-----max 20% of share price x No.of shares
or difference in auction price and your price x number of shares
-----and additionally 0.05% of trade as defaulting penalty by NSE
-----additionally if any client penalty laid by zerodha (need confirmation on this, not sure)
Anyway, Auction penalty or short delivery is rare phenomenon, it does not happen every other day. So dont worry about that too much.
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