Short delivery risk factors

2 doubts please clarify:

Is there any risk of short delivery for CNC orders for buying and selling on same day? Though I am charged with intraday charges… will it be truly considered as intraday as the order is placed under cnc?

Is there any risk of short delivery if I sell the stock on t2 day. I.e bought on Monday and sold on Wednesday.

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You can read more about short delivery here.

Yes, CNC is just a product code. If you use CNC to buy and sell a share on the same day, it will still be considered as an intraday trade.

Above mentioned link ll help you out for this query as well.

If you are a beginner, make sure you read Varsity.

in the below link ;
Consequences of Short delivery - NSE/BSE – Z-Connect by Zerodha Z-Connect by Zerodha


it says that : “the exchange settles it in cash on the basis of Close out Rate. Close out rate is the higher of the highest price of the stock from when you sell to the auction day or 20% above the closing price, on the auction day (T+2) .”

my query is : in this scenario ; the seller is at loss of 20% more money ; but ; who keeps/earns that 20% profit ? (buyer , or exchange or sebi or the broker) ?

i heard that : The benefit of penalty imposed on short selling is passed on to buyer against whose shares the said selling is adjusted by the exchange.

but , how would the buyer come to know ? what if the broker ate the benefit and did not inform the buyer ?

How will the auction settlement process work if I had short sold the shares in MIS but could not buy them back on the same day due to the upper circuit?

waiting for your reply…!