If you bought shares in Delivery but they never arrived — instead your fund balance went up and the shares are missing from your Holdings — it almost always means your trade was closed out in cash. The seller on the other side couldn't deliver the shares (a short delivery), the exchange couldn't source them in the auction either, so your buy was settled in money instead of shares. You're compensated in cash — which is exactly why your balance rose and the shares aren't there.
Why did I get cash instead of the shares?
Every trade is guaranteed by the exchange's clearing corporation, so a buyer is never left empty-handed. When the seller fails to deliver and the auction can't procure the shares — for example, the stock is locked at its upper circuit with no sellers — the trade is closed out: it's settled in cash at the close-out price instead of by delivering the stock. That price is set to protect you (the higher of the highest price from the trade day to the auction day, or 20% above the auction-day closing price), so the credit you receive reflects the value of the shares — often more than you paid.
Did I lose out?
No — you're compensated, not shortchanged. You receive the value of the shares as cash rather than the stock itself. The one thing you don't get is the shares — so if you still want to own them, you'll need to buy them again.
Do I need to do anything?
- The settlement is complete — nothing is pending on your side.
- If you wanted the shares (not the cash), just place a fresh buy order — the money is already in your account.
- The extra funds are yours to trade with or withdraw like any other balance.
Is this the same as a short delivery?
Yes — this is the buyer's side of a short delivery. The seller is the one who defaulted; you were on the receiving end and were protected through the close-out. For the seller's side and the full mechanism, see what happens if a short sell can't be squared off and how the auction process works.