Hi, if i bought a stock in morning around 10 am in CNS, delivery type, can i able to sell it around 3.00 pm on same day…
Yes, as long as the market is open you can exit the position.
well @smilingstalker, hope i dont have to wait for t+1 or t+2 day for delivery type for stocks to be delivered to me.
T1 shares or T1 Holding are those shares that you’ve bought but the delivery of such shares is pending meaning it hasn’t come to your demat account. T2 shares or Delivered shares, which are credited in your demat account.
The settlement cycle in India is T+2, meaning, if you buy shares on Monday, those share come to your demat account on Wednesday.
Suppose an Investor has bought 100 shares of ITC on Monday. The shares will get transferred to the buyers demat account on Wednesday.
In the above example, since the shares were bought on Monday, on the next working day i.e. Tuesday, the shares will be shown in the holdings of the client as T1 holdings. The shares are due to the client but it has not been received yet.
Hope this helps you to understand!
thanks a lot @smilingstalker , one last doubt, then if i bought a share on monday through delivery type means i cant sell it on same day , since its pending,.
the next thing i want to know is, if i bought 100 itc shares on monday, on tuesday it will be shown into my demat account, but not delivered yet, so i cant sell it on tuesday also.
only after getting delivered on wednesday i can sell it, is it so…
You can sell it even on the next day. But you might face auction penalty. Search for it on this forum. You’ll know why and how.
If buy through cnc and sell it the same day it will be considered intraday trade, the shares you bought wont go to your demat account you’ll earn or lose money depending on the price movement of that day. you can exit your position (ie sell the shares) even if they aren’t yet delivered to your demat account. You should experiment with one share to familiarize yourself.
thanks @mac76 , how much penalty should i have to pay,
ie) if i bought 100 shares for Rs 55, i am selling it on same day or next day those 100 shares for Rs 65, a profit of 10 Rs/share, 1000 Rs in total…
if you bought a share on monday you can sell it same day except for shares of T nd Z group.
if you bought shares on monday you can sell it on tuesday ( any group share) which is called BTST but in rare case if the selling broker fails to deliver your monday purchased share on time your tuesday sell will go in auction /square off in T nd Z group and you will have to bear some loss…but such things are very rare.
thanks a lot @smilingstalker , ill try to experiment one, thanks for the link too…
well @sabkaview , which are T nd Z group shares, and thanks are ur info. that clarifying that auction penalty is very rare.
T and Z group shares are defined by exchanges on regular basis and at a given time there are more than few hundred shares in T or Z group .so it is just not possible to give the names manually . in these shares no intraday is allowed means 100 % delivery and circuit is maximum 5% and can be even 2%. most important thing in case of short delivery by seller ,there is no auction in such shares as like normal group shares but compulsory square off of the trade wherein the buyer of shares do not get shares but his purchase value return with some extra money say 15-20 % debiting the account of seller.
@sabkaview , ur explanations are great,
except T and Z group shares, other shares dont go under auction penalty know.
compulsorily square off in case off T and Z group shares means heavy loss to short seller wherein auction system in case of other group shares (though rare) where loss to short seller is much less (normally ) .