Why all BTST Trades not fall under Auction Penalty?

Stocks
1

Hi Sir,

I have clearly understood about Auction penalty by Short Delivery … But why all BTST never fall under Penalty ( not yet mentioned in Zerodha Cotract Note ).

For ex : We made a Buy on T-day and Sold on T+1 day, we never get any penalty till date . I mean we have done BTST many times but no penalty ( it is good ) . Is it because of these reasons which I think is …

  1. Stock has more Liquidity ?
  2. Stock bought from the Auction Market with the same price which we Sold ( without Close out rate ) ?
  3. The stock never go to Auction ( is it possible ? )
  4. This is the scenario I think there is no Penalty. Please correct it …
    Monday ( T-day ) we Bought and Tuesday ( T+1 ) we sold out. We will get Delivery on Wednesday evening because T-day was Monday. Also, we sold out on Tuesday ( T-day ), it take the Delivery on Thursday evening ( T+2 ) . If this could be the process, the Stock is already available on Thursday Evening to Sell which already came on Wednesday . Please Correct it

Thanks in Advance …

2

Quoting from this post.

Basically what you need to remember is that when doing ATST/BTST trading, try trading only on liquid A group stocks, because the short delivery risk is reduced and hence chances of you having to face an auction penalty. The auction risk goes up quite a bit when you trade ATST/BTST on illiquid stocks. Please note that whenever you decide to sell stocks before taking delivery, you are taking the onus of any auction penalty that may arise because of short delivery.

3

Hi Sanket … Thanks for your reply … I have got answer for my Question 1 …

Can anyone answer 2nd , 3rd and 4th Question … I am eagerly expecting an answer for 4th question …