What could be the auction charges I buy 1000 qty at Rs.95 and sell it in BTST at 100?

but i am not able to deliver the quantity to buyer by me at right time?


If you are performing a BTST trade, the only instance where you can be trapped in an Auction market settlement if when the person selling you the shares short delivers.

So you buy shares from a person who does not actually have the shares with him. These shares will not come into your account on T+2 and it will come only on T+3 because the person who sold you the shares defaulted and has to buy it for you from the auction market.

Now when you sell the shares on T+1, the exchange will check if the shares are there in your account on T+2 and since there are no shares in your account you will have to buy these shares back from the auction market.

In the auction market, the exchange will specify a range within which auction participants can offer to sell their shares. The range is +20% and -20% from the previous days closing price.

If you sold your shares at 100 and next day the stock closed at 105. Then the auction market selling price can go upto 126. This is the upper cap for auction sellers.

If you have sold 1000 shares at 100, then your max auction penalty will be Rs.26,000. [(126-100) * 1000]

The difference between your auction buy price and your BTST sell price multiplied by your traded quantity will be your auction penalty.

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NO one can give perfect reply than this,Thanks

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