Thanks for such elaborate answer @VenuMadhav . It answers most of the queries . Also feel that such nitty gritty details could be added to official varsity posts.
It just leaves me with 2 more questions.
1)So in case of internal settlement a manual call is taken at the time of submitting voluntary auction file from your end whether you want to go through voluntary auction route or buy directly from market on T+1 ? Assuming it is done in the best interest of client to close out short delivered position internally as soon as possible.
2)when you said team decided to buy ireda from open market. how couldn’t the team procure it as it was actively trading majority of time during T+1. why were they unable to procure it as it was actively traded for 5 hours that day. Also you mention ‘desired price’. how broker decides ‘desired price’ .Best available ask should do the task right. And even as broker if you still procured some quantity shouldn’t you pro rate it across all short delivered clients to make process fair for all clients than a few clients facing all the consequences.
Just sharing my thoughts because as a broker you guys have always inculcated such practice of fairness.