No. The buyer receives the shares or compensation.Only the seller or broker who failed to deliver faces the penalty.

Yes. In BTST, you sell shares before receiving them. If your buy transaction fails or is short-delivered, your BTST sell will default, leading to an auction penalty.

The exchange identifies defaulted deliveries on T+1 evening On T+2, it conducts an auction session to buy the same quantity from the market The shares are then delivered to the…