Key Takeaways:

An auction process is a mechanism where exchange auctions the investor’s stock holding when the person had sold the stock but is unable to deliver it within a stipulated time period.

An auction can be a live auction, online auction or sealed bid auction.

Before the start of an auction, the buyers are allowed to check the items on sale and examine the same.

The minimum or lowest auction price will be 20% below the closing price of the day before the day of the auction

The exchange conducts an auction on T+2 day and on behalf of the defaulting seller, it purchases back the stock from the Auction Participant.

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