When an Intraday short sell can't be bought back and becomes a short delivery, it affects your available funds on the trade day (T day) in two ways — and your balance can even turn negative.
Do I get the sale proceeds to trade with?
The sale proceeds appear as a credit in your ledger on the trade day, after billing. But you can't use that credit to trade — it's held against your open short until the position is settled.
Why is extra money blocked?
On top of the withheld proceeds, our Risk Management (RMS) team blocks a further 20% of the short-sell value from your available funds. This acts as a buffer against the open short and the cost of settling it.
Can my balance go negative?
Yes. Because the sale proceeds are withheld and an extra 20% is blocked, your available cash balance can turn negative while the short is open.
The block is released once the position is resolved — either you cover the short, or it's settled through the auction.