What are the risks in BTST?
When you buy shares in the stock market, they will be delivered to your Demat account in T+2 days. In the case of the BTST transaction, you are buying the shares today and selling them tomorrow. So you are selling shares that you haven’t received in your Demat account.
Here the risk is you are totally dependent on the seller from whom you bought the shares. If the seller doesn’t sell you the shares it will result in short delivery which in turn will attract a 25% penalty.