Scenario – 1 – Internal Process as per T+2 basis:
Internal Short Settlement is a special case when both the buyer and the seller belong to the same broker.
In this process short delivery is settled by the broker internally among his clients instead by the exchange through buy-in auction.
In case of any short delivery, funds will be credited to buyer against shares and funds will be debited to seller on T+2.
Scenario – 2 – Settlement done by exchange as per T+3 basis:
In case shares are not received from exchange on T+2, then settlement (via funds / shares) is done by exchange on T+3 (except ‘Z’ category & trade to trade share).