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What are auction markets and how to participate in them on Kite?

Auction orders currently cannot be placed in BSE’s auction market. The list of stocks and the eligible quantity that can be sold in the auction market can be checked in this sheet. (DOC).

During the auction session, the exchange invites offers from fresh sellers for shares that are short delivered. A short delivery happens when the exchange is unable to deliver shares purchased to the demat account because the seller of the shares failed to do so. To learn more about short delivery, see What is short delivery and what are its consequences?

The auction usually takes place after 2:30 PM and lasts only 30 minutes. Only shares settled in the demat account can be sold during the auction. T1 quantities cannot be sold. Also, shares cannot be bought in the auction as the exchange is the buyer. The settlement cycle will be T+1 for the stocks sold in the auction market, 80 % of funds will be credited immediately when the stocks are sold and can be used to take new positions, whereas the remaining 20% will be blocked as delivery margin and will be available for trading or withdrawal from the next trading day. To learn more, see What does the "delivery margin" field on Zerodha Kite mean? The circuit limits for the stocks in the auction market is set at 20% from the previous close. To learn more about circuit limits, see What does circuit limits i.e price bands mean?

To participate in the auction market, follow these steps:

  1. Login to
  2. Click on Bids.
  3. Click on Auctions.
  4. Hover over the share and click on Sell.
  5. Click on Sell at auction, enter the quantity and the price and click on Sell.

Exchanges don't allow order modifications during the auction. Instead, the order must first be cancelled, and a new order with the updated price and quantity must be placed during the auction session. To learn more, see Why can't pending or partially filled auction orders be cancelled?

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