Can We Short Sell In CNC?,

Can we short using CNC or use stbt?? Is it possible in zerodha or any other broker ??
Tnx in advance.

Did you search here about this ?

When you place a sell order in CNC , the The RMS (Risk Management System) will first check your demat to see if the shares you are trying to sell are available in your demat. If it does not find the shares , it will reject the order.

You can Short Sell and Close the Positions for Intraday in CNC only if you hold the dame shares in your demat.

So rms will never allow oversell, so when is the case when exchange levies penalty on us for not able to deliver share??

Tnx every1 for your valuable input.

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Dont think any broker would allow given liquidity concerns.
If its a shitty stock, there might not be buyers available while squaring-off leading to the fuss of Short Delivery.
If a broker does it, are you sure they have a risk mgmt team? Is your money safe there?

Hey @RMA & @BullsVsBear,
Yes, other brokerages allow short selling even if you do not have shares in your DP. If you did not square them off the same day, you yourself cannot buy them back in the next trading sessions (tomorrow or later). Exchanges perform auction for shares and your brokerage buy shares on your behalf and debit your account. But the logic is, you must accept the shares at whatever the price for which your brokerage bought for you. In very rare situations the seller (you) gets benefited as the shares must come done considerably once you sell them.

You must be very careful shorting BE category shares as there are very strict rules and even if the seller gets some profits, they have to contribute fund to traders welfare account. And also, exchange locks some 10% of the amount or so for ~30days for the shorted BE shares.

If you really want to sell some shares today and buy them back in the next coming sessions, the only way is to trade futures in F&O segment.

Happy Trading…!

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Maybe I should look on this site?=) There are some interesting proposals here too.

Hi experts,

Can someone let me know how to do short selling in a CNC Market or Limit order ?
Kindly explain the process stepwise.

Thanks :slight_smile:

In Indiabulls you can do it. But beware of catch behind it. If you short in Delivery(CNC) option there and forgot to buy the shares same day, then:

  1. if price fall next day or T+2, the profit goes to govt, and you have to pay transaction charges also.
  2. If price rises up, you pay the difference i.e. loss and you pay fees also.

I got in this situation once. I short 2000 JP associate @ 19.60 once in Delivery mode.
Forgot to buy before 3:20 and system do not square off Delivery calls. Next day price fell till 18.30 and My position was squared off. I lost Rs. 3000 profit + 250 something in fees also.

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Thanks.
its good help for newbies.