What are the risks of BTST?

The risks of BTST are:

Auction risk due to short delivery: If the original seller fails to deliver shares, the exchange conducts an auction. Any difference between the auction price and your selling price is borne by you, which can be significant in volatile stocks.
Circuit and liquidity risks: Upper or lower circuit limits can restrict buying or selling, making it difficult to exit BTST positions.
Higher risk in volatile or illiquid stocks: Stocks with low liquidity, wide spreads, or under ASM/GSM surveillance are more prone to delivery and settlement issues.
Impact of corporate actions: Events such as bonuses, splits, or dividends can complicate settlement and increase BTST-related risks.