NRML (Normal) product code is only used for Futures and Options.
In Equities you should use the product code CNC instead on NRML.
The difference is NRML can be used in F&O for shorting and keeping the contract with you and carryover for next day. But in Equities while using CNC you can only short if you already have the stocks in demat account, otherwise you cannot.
While buying, Equities or F&O bought with CNC and NRML respectively can be carried over for next day.
NRML product types do not have square off. It will carried over for next day, You can see them in your Open Positions of Trading account.
Dear@aastroguru, please clarify “But in Equities while using CNC you can only short if you already have the stocks in demat account, otherwise you cannot.” I didn’t get it.
For selling equity stocks, you should already have the stock in your demat account or T1 Holdings or T0 holdings, It means that you should have already purchased the stock today or before. Otherwise if you place a sell order using CNC it will get rejected.
You cannot sell first and buy later. It should always be buy first and sell later.
In case you use MIS, you can sell first and buy later that day, this option is available is available in MIS and CO only. It is not allowed in CNC.