What is Settlement Auction?
Settlement Auction (also called auction market) — When a seller fails to deliver shares, the exchange buys them in an auction to deliver to the buyer, charging the defaulter the difference.
In simple terms
A short-delivery triggers an auction, often at a penalty price.
Why Settlement Auction matters when you invest
Understanding settlement auction helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Settlement Auction — frequently asked questions
What is Settlement Auction?
When a seller fails to deliver shares, the exchange buys them in an auction to deliver to the buyer, charging the defaulter the difference.
What does Settlement Auction mean in the stock market?
When a seller fails to deliver shares, the exchange buys them in an auction to deliver to the buyer, charging the defaulter the difference. A short-delivery triggers an auction, often at a penalty price.
Can you give an example of Settlement Auction?
A short-delivery triggers an auction, often at a penalty price.
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