Hi Siva,
I am not getting a correct answer from your team on physical delivery.
I defaulted on physical delivery on Thu last week (did not have shares in my account). The price that day for Berger Paints was Rs. 525. Yesterday (T+2) the price was Rs. 504. I want to understand what day’s EOD price will be taken as the floor price for the auction. Is it T+2 or T+3 or T+4.
Please note that I am not asking about the additional penalty charged, I am trying to understand at what floor price the auction would happen. I would appreciate a quick response.
Best Regards,
A detailed post on the mode of auction settlement is explained here. The process of conducting auction is the same for shares not delivered in the F&O segment too.
The valuation price shall be the closing price of such securities in Capital Market Segment of the Exchange, on the immediate trading day preceding the pay-in day for the securities T+1 in this case.
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T+1 doesn’t seem to be correct. I spoke to RMS who in turn who said its either T+3 or T+4. It is already Wednesday and the auction hasn’t happened.
On the floor price, it is the highest price from T+1 to T+3 is what I have heard. Not sure what is true.
Was hoping for a clear answer from Zerodha, but not received.
Anyways, I will post my experience once the auction happens and what actually went down.
T+1 was the answer for your first query.
The actual auction takes place on Expiry+3 and the settlement happens on Expiry+4 day.