Buy Stock in CNC for long term investment

General
1

Hi Investors,
I have a basic question.
Suppose I want to do long term investment. For this purpose, I selected Stock ABC whose LTP is 10 INR.
I have 1000 INR for investment.
So Please clarify below queries.

  1. I can able to place CNC order and able to buy 100 shares of Stock ABC.
  2. After buy in CNC, it will show in Position or in Holiding section.
  3. I have to do anything else to make sure I bought share for long duration like 1-2 years etc…

Please check and tell me. Thanks

2

After you bought a stock in CNC and they are delivered to your DEMAT account (on T+2 ), you are all set! Those stocks will show up in your “Holdings” section from the next day onwards. You don’t have to do anything else.

Since you are a long term investor, I suggest you also start logging into your DEMAT account periodically and check your holdings. (if you don’t know the difference between Trading vs. Demat account, let me know).

~Cheers!
Neha (www.VRDNation.com)

3
  1. Yes, MIS for intraday and CNC to hold stocks in demat.
  2. On the day of purchase, it will be shown under Position and under Holdings next day onward. T+2 days required to add shares to demat. Hence quantity in Holdings will be updated T+2 days later.
  3. You can hold your shares till any period after having in your demat.
4

Hi Neha,
Thanks for simple and straight answer.
As you mentioned , In case of CNC , it will go into my DEMAT account.
Now my basic questions are :

  1. My Axis Bank is joined into Zerodha Account. so I have to check my Axis Bank Demat Account or zerodha Demat account.
  2. Suppose in future , I will not use my zerodha login , then what will happen for my CNCs orders.?

Thanks in advance.

5

Thanks for your quality reply.

6

Zerodha is your Trading account from where you trade but that doesn’t hold any shares you buy. Your Axis bank is for funding the Trading account and not for holding the shares either. The shares are actually held in the DEMAT account. The DEMAT accounts are provided by either of these entities: CDSL or NSDL.

Do this: In the email account (like Gmail or Outlook) that you used for opening Zerodha account, search for email from “[email protected]” or simply “Demat CDSL” or “Demat NSDL” and you will get all the details for logging into the DEMAT account.

7

Hi Neha,
I checked that mail, but there are no any login credentials available. I think I have to register to generate Password.
I have another questions .

  1. Today I checked my Margin statement , in that my entire amount [which I used to buy Long term Stocks] is showing as negative. So is it means once I will sell my shares there will be no any brokrage or tax or anything.
  2. How can I take long positions into Options.

Please reply for these 2.

8

Hi Nandan,

The easiest way to get these questions answered would be to call Zerodha Support 080 4040 2020 / 080 3310 2020. They can look into your account and guide you further. I am glad that you are trying to figure these things out in the beginning itself.

~Neha

9

Thanks