In case an investor fails to deliver the shares sold in the Rolling Settlement, an auction is conducted of the quantity short delivered/ not delivered on T+1, to meet the obligation of delivery of shares to the buyer. In this auction session, offers are invited from fresh sellers for quantities short delivered.
The Member through whom one has sold the shares is not allowed to offer shares in the scrip for which he has failed to make delivery.
If the seller fails to deliver the shares, penalty will be charges by the Exchange.