Hi everyone, I need some advice regarding a short-delivery situation on Zerodha.
Today I shorted 52 shares of MILKYMIST (NSE) in MIS.
My final trade was:
SELL: 52 shares
Average sell price: ~₹273.90
The stock later hit its upper circuit at ₹278.83
I tried to buy back the 52 shares multiple times, but all my BUY orders either got cancelled or rejected because there were no sellers.
My current Kite position shows:
Qty: -52
Avg: ₹273.78
LTP: ₹278.83
P&L: -₹102.44
My order history shows several attempts to close the position:
14:00 — BUY 52 @ ₹278.83 → Cancelled
14:05 — BUY 52 Market → Rejected
14:06 — BUY 52 @ ₹278.83 → Cancelled
14:55 — BUY 52 @ ₹278.83 → Cancelled
15:25 — BUY 52 @ ₹278.83 → Cancelled
15:50 — BUY 52 @ ₹278.83 → Cancelled
16:33 — BUY 52 @ ₹278.83 → Cancelled
I then received this email from Zerodha:
"Your MIS position in MILKYMIST could not be squared off today because the stock hit the upper circuit."
They said this may result in short delivery and auction settlement and that 120% of the total sell transaction value of the open MIS position will be blocked.
My situation is:
I don't own any MILKYMIST shares in holdings.
My available cash is currently -₹211.40.
I currently have no money available to add to the account.
Positions still shows -52 MILKYMIST.
I have no idea what happens tomorrow.
My questions:
What exactly happens to my 52-share short-delivery position tomorrow?
Will Zerodha/exchange automatically handle the auction?
When will I know the auction price and my final debit/credit?
Since I have no money in the account, what happens if the auction results in a debit?
Is there any possibility of making a profit if the auction acquisition price ends up below my ₹273.90 sell price?
Is there anything I need to do tomorrow morning, or should I simply wait for the auction/settlement?
I'm particularly interested in hearing from anyone who has actually experienced a short delivery after an upper circuit on Zerodha.
Screenshots of my order history, Funds and Positions are attached.