Short Selling Entire Capital Lost

Hi @N10190,

You may refer to the auction settlement bill which is send on registered email address and also the ledger entry with narration “NSECMAFINAL BILL” for the debit amount.

For instance, if you short-sell a share at Rs. 100 and fail to close the position due to an upper circuit; In such scenario, the exchange conducts an auction to buy the shares on behalf of seller customer who have not given delivery of shares. The settlement for the same is completed on T+2 day. The auction’s price range is set at 20% at the upper and lower end. Therefore, the buy price will be at Rs. 120 including the penalty of Rs.20 and not the entire capital.