Settlement on WebNotes

Auction market on NSE and BSE

Mon, 11 May 2026 00:00:00 +0000

The auction market on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) is a special trading session conducted by the exchange’s clearing corporation to resolve cases where sellers in the normal equity settlement fail to deliver the shares they are obligated to deliver. This non-delivery, called a short delivery, arises when a seller who executed a trade on the exchange does not place the required shares into the clearing system by the settlement deadline. To protect the buyer, the exchange runs an auction to procure the undelivered shares from willing sellers.

Zerodha clearing arrangement

Mon, 11 May 2026 00:00:00 +0000

Clearing and settlement is the post-trade process by which the obligations arising from securities and derivatives transactions are determined, confirmed, and discharged. Zerodha Broking Limited, as a trading member of NSE, BSE, MCX, and MSEI, participates in the clearing infrastructure of each exchange through designated clearing corporations. The clearing arrangement defines how Zerodha’s client trades are matched, netted, and settled, and determines which entity bears the counterparty risk and settlement obligation on behalf of Zerodha’s clients.

Zerodha clearing corporation flows

Mon, 11 May 2026 00:00:00 +0000

Overview

Every securities transaction executed through Zerodha’s Kite platform passes through a clearing corporation before settlement is completed. The clearing corporation sits between the buyer and seller in every trade, guaranteeing completion of the transaction irrespective of whether either counterparty defaults. For NSE trades, the clearing corporation is NSE Clearing Limited (NSCCL, formerly the National Securities Clearing Corporation Limited). For BSE trades, it is the Indian Clearing Corporation Limited (ICCL). Zerodha, as a broker, holds clearing membership (or uses a clearing member) to participate in these clearing and settlement flows.