in case there is a short delivery from the Exchange for
the earlier buy transaction, then the BTST customers will
also be giving short delivery for their sell transaction.
The Exchange would either give delivery of shares bought
earlier through market auction or shall closeout the buy
transactions as per the Exchange Regulations. However,
this would not help the customer in meeting his sale delivery
obligations already committed by him as even if he receives
the shares bought earlier through auction settlement,
by that time the securities pay-in date for his sell transaction
would be over. In such case, the customer will have to
face auction proceedings against his sale transaction
and will have to bear the auction losses, auction penalties
and any other incidental charges etc.
does not net off subsequent sell transaction against the
previous buy transaction across the settlements and all
the settlement obligations are settled settlement wise.
are not permitted to opt for BTST.