Why has my fund balance increased but shares are missing from holdings?
Why has my fund balance increased but shares are missing from holdings? Find a clear answer in this FAQ by 021 Trade.
If you notice an increase in your fund balance but do not see the shares in your holdings, it is likely due to short delivery, where the seller fails to deliver the shares on time.
In such cases, you may either receive the shares later than the usual T+1 settlement period, or if the exchange is unable to obtain the shares through the auction process, a cash settlement will be processed instead.
The cash settlement amount is credited to your account based on the higher of the following:
- The highest price of the stock from the purchase day to the auction day, or
- 20% above the closing price on the auction day
This mechanism, implemented by exchanges such as National Stock Exchange of India and BSE Limited, ensures that investors receive fair compensation if shares are not delivered.
