If you do not have sufficient holdings in your CDP Direct Account to meet your delivery obligations on the Settlement Day (T+2, the second Market Day after the Trade Day), CDP will conduct buying-in from the buy-in market on Intended Settlement Date (T+2).
Should the shares remain unobtained by the end of Settlement Day, the buy-in process will continue on the next Market Day and successive Market Days. CDP shall have the absolute discretion to increase the bid price by two minimum bids until the shares are acquired or delivered to CDP. In rare instances where shares could not be bought-in or procured after Intended Settlement Day +5 (T+7), cash settlement of the sell trade will be initiated.
SGX can levy a penalty of S$1000 or 5% of the trade's value, whichever is greater for failed delivery. Furthermore, a processing fee of S$75 plus GST per failed contract, along with a brokerage fee of 0.75% plus GST of the contract value (for the buy-in contract), will be charged by SGX, on top of the usual fee and commissions. You may refer to SGX website for more information.