My answer to How much I will lose if I forgot to buy back 100 shares of binani industries which I shorted?
Answer by Ruchir Gupta:
If the stock be covered at lower prices at the time of auction then you may infact gain.
Also, Stock Exchange imposes some penalty if shares are shorted this way, which is very nominal as it is obvious the quantity you traded was very small.
As an alternate step you may buy Binani Industry Shares 100 quantities and square off when the auction is done (as in auction which is around 1–2 pm, stock exchange will buy back your shares)
You can also consult your broker for exact date and time when auction will take place.