How auction rate penalty is calculated?

How auction rate penalty is calculated?

There are two scenarios while calculating the auction rate for the penalty. 

(i) Internal Auction- The logic for calculating penalty by 5paisa Capital Ltd. T+2 Closing Price + 7% or Highest Traded price between T and T+1 day whichever is higher. 

(ii) Market Auction: Valuation price is calculated for the penalty by Exchanges. The logic of the price is Highest trade price between T & T+1 day or Official auction marketing closing price on T+2 + 20% whichever is higher.
Note: As a rule internal auction is applied first and the balance goes to market auction.

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