Short Delivery Question...

Hi,

I purchased 5 shares of RIL on 12/12 @1307 and sold on 16/12 @1390.

But on 17/12 I got a mail saying that 5 shares of RIL received short....

Today 19/12 I got another mail saying that "The 5 RIL shares sold by you and not delivered were auctioned @ Rs 1371.06/- aggregating to Rs 6855.3/-."

Does this mean that my transaction on 16/12 is considered as short-selling and I will get only @1371 instead of 1390? I don't clearly understand the logic.. Somebody plz explain....

You have bought on 13th. We follow T+2 settlement.
You would have received your share only on 16th, probably evening. (Afternoon is the payout time)

But you have sold them on 16th. I understand what you bought on 13th was not delivered to your account, assuming that you own that, you have sold on 16th which you did not own.

Regarding auction process, consult your broker, if auction is for you if you already suffer a bad delivery. But I guess there will be auction and penalties.

Some brokers don't allow this to safeguard you against auctions. Some brokers allow you to sell. If it is the case, they must give the stock from their account. Who is your smart broker?