what is auction in zerodha

Auction in Zerodha refers to the auction market where investors can participate in a separate trading session to buy or sell shares that are short-delivered. Short delivery happens when the exchange is unable to deliver shares sold by a seller to the buyer on the settlement day. In such cases, the exchange conducts an auction on T+2 day and tries to buy the shares and deliver them to the buyer. During the auction session, the exchange invites offers from fresh sellers for shares that are short-delivered. Investors can participate in the auction market through their brokers. Zerodha offers the facility to sell stocks in the auction market. To participate in the auction market on Zerodhas trading platform, Kite, investors can place an auction order.