Q-1- What is Short Delivery

[Pawan062]

The Settlement for Equity Delivery (pay in of shares to the exchange) takes place on T+2 bases. It means the shares bought on “T” or Trading day (e.g. Monday) are to be received by the Buyer on T+2 day (i.e. Wednesday).
Similarly the shares sold on “T” (e.g. Monday) are to be delivered to the exchange by the seller on T+2 (Wednesday) to get the proceeds (cash) from the sale.
The failure of the seller to deliver the shares to the buyer on T+2 as obligated is called Short Delivery.

 

[classifiedindian]

So under what circumstances can the seller fail to deliver the shares on t+2 days?

 

[Pawan062]

This can happen if the shares are sold at a certain price and is expected to fall in intraday however due to some circumstances, it didn't. Now in that case, you have to give the delivery of them on T+2 and you don;t have them. In this case, it can happen.