Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 3 terms
A seller’s failure to deliver shares to the clearing corporation by the securities pay-in deadline.
The one settlement failure an ordinary investor can personally cause. The buyer is never left waiting — the clearing corporation buys the shares in and sends the seller the bill.
The arrangement, in force since September 2020, under which shares offered as collateral stay in the investor’s own demat account and are pledged in favour of the broker rather than transferred to it.
Brought in after brokers were found misusing client securities, so the protection is real. The cost is that releasing the pledge before a sale is now your operational problem — an unreleased pledge is a short delivery even though the shares are visibly in your account.
Selling shares that have neither been borrowed nor arranged to be borrowed before the sale.
Not permitted in India, and the prohibition shapes everything else about shorting here. An intraday short that cannot be squared off — a stock locked at its upper circuit, say — becomes a short delivery and is closed out at a deliberately penal price.