Zerodha Auction Settlement price

Auction settlement price on Zerodha

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The auction settlement price for a short-delivery resolution is determined by the auction session matching. Typically:

AspectDetail
DeterminationBest price among offers + matching demand
Premium to LTPOften 5-15%+ above day’s LTP
Time priorityEarlier offers at the same price match first
FinalOnce matched, settled by exchange

Effect on short-deliverer

The seller who short-delivered pays:

  • The auction price (which is typically higher than what they sold at).
  • Plus penalty per SEBI framework.

Total cost can be 20%+ of the original trade value.

See also

External references

References

  1. NSE India, Auction settlement price, nseindia.com.
  2. SEBI, Short delivery and auction, sebi.gov.in.

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