My Portfolio:

Advantage AxisDirect

Internal Shortage is a situation when there is an Internal Shortage within Axisdirect i.e. the buyer and seller both are Axisdirect clients. In Internal shortage the seller of the shares fails to deliver the shares on T+2 day and the buyer of the shares does not receive the delivery of shares on T+2 day. In such situation the defaulting client on sell side shall be debited by the amount equivalent to the quantity short delivered multiplied by the valuation price. The client on the buy side shall be credited by the same amount on sell date as computed below

The Valuation price shall be higher of, 

1% above the closing price of Auction date in normal market of the exchange,

or Highest traded price between Trade date and Auction date.