Self – Auction

The Delivery and Receive Orders are issued by ICCL to the Members after netting off their purchase and sell transactions in Securities where netting of purchase and sell positions is permitted. It is likely in some cases, a selling client has failed to deliver the shares sold in a settlement to a Member. However, this may not result in failure of the Member to deliver the shares to the Clearing House as there was a purchase transaction of his some other buying client in the same Security and the same was netted off for the purpose of settlement. In such a case, the Member would require shares so that he can deliver the same to his buying client, which otherwise would have taken place from the delivery of shares by his selling client. To provide shares to the Members in such cases, they have been given an option to submit the details of such internal shortages through SHM file upload on Extranet on pay-in day before 12:15 p.m. for conducting self-auction (i.e., as if they have defaulted in delivery of shares to the Clearing House). These shortages are clubbed with the normal shortages in a settlement arrived at by the Clearing House and the auction is conducted by the Clearing House for the combined shortages.

Securities shortages close-out norms / procedure

Closing out in respect of settlement shortages of normal scrips (i.e settlement on net basis) in Equity Cash Segment/ Auction Settlement :

Close out will be at the highest price prevailing across the Exchanges from the day of trading till the auction day or 20% above the official settlement price on the auction day, whichever is higher or as declared from time to time by ICCL

Closing out in respect of Trade-for-Trade securities and Block Deals of Equity Cash Market:

Any shortages in the respect of Trade-for-Trade scrips and Block Deal trades will be directly closed out at the highest price prevailing across the Exchanges from the day of trading till the T+1 day or 20% above the settlement price on the T+1 day, whichever is higher or as declared from time to time by ICCL.

Compulsory Close-out of securities under Corporate Action:

In cases of securities having corporate actions and no 'no-delivery period' for the corporate action, all cases of short delivery of cum transactions which cannot be auctioned on cum basis or where the cum basis auction pay-out is after the book closure / record date, will be directly closed-out at the highest price prevailing across the Exchanges from the day of trading till the auction day or 10% above the settlement price on the auction day, whichever is higher or as declared from time to time by ICCL..

"G" group

In case of shortages in "G" group, the shortages are closed out at Zero Coupon Yield Curve (ZCYC) plus a 5% penalty.