Why has the fund balance increased but shares are missing from holdings?
Shares may not appear in the holdings after they are purchased if they are short-delivered. To learn more about short delivery, see What is short delivery and what are its consequences?
In such a scenario, there are two possible outcomes. Firstly, on the T+2 day, the individual may receive the shares that were previously short-delivered. Alternatively, if the exchange is unable to acquire the shares on behalf of the individual, the transaction may be settled in cash. In this case, the exchange settles the transaction by providing a cash credit based on the close-out rate. The close-out rate is determined as the higher of the stock's highest price from the time of sale to the auction day or 20% above the closing price on the auction day (T+1). To learn more, see When does cash settlement happen to close out short delivery?
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