# Settlement holiday tomm - auction market closed
**URL:** https://tradingqna.com/t/settlement-holiday-tomm-auction-market-closed/197408
**Category:** Zerodha
**Created:** [August 25, 2026, 7:02am UTC](https://tradingqna.com/t/settlement-holiday-tomm-auction-market-closed/197408 "2026-08-25T07:02:26Z")
**Posts on this page:** 2
**Page:** 1
### Author:  [@raghav.95](https://tradingqna.com/u/raghav.95)
#### Post date: [August 25, 2026, 7:02am UTC](https://tradingqna.com/t/settlement-holiday-tomm-auction-market-closed/197408/1 "2026-08-25T07:02:27Z")
if someone makes a short delivery, how will their position be affected because auction market is closed tomorrow.
Will the settlement happen at a higher rate ?
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### Author:  [@KarthikAcharya](https://tradingqna.com/u/KarthikAcharya)
#### Post date: [August 25, 2026, 8:13am UTC](https://tradingqna.com/t/settlement-holiday-tomm-auction-market-closed/197408/2 "2026-08-25T08:13:41Z")
> [@raghav.95](#):
>
> Will the settlement happen at a higher rate ?
A settlement holiday doesn’t automatically mean the settlement will happen at a higher price.
For example, if shares are sold at ₹100 on 25 Aug and 26 Aug is a settlement holiday:
- 25 Aug: You sell at ₹100 but don’t have the shares to deliver and this becomes a short delivery.
- 26 Aug: Settlement holiday where no auction/settlement happens.
- 27 Aug: The auction/settlement process moves to the next applicable auction day.
- The final amount depends on the auction/close-out price as per the rules.
So, if the auction price is ₹110, the short seller bears the additional cost as per the applicable settlement mechanism.
Hence, the final obligation depends on the auction/close-out price, not just the settlement holiday.