I heard that there will be a risk of short delivery when we trade through BTST. I know that when we buy a stock in CNC and if we sell it on the same day, it will be considered as a intraday deal and charges are imposed accordingly. Then will there be no short delivery risk if we buy and sell on the same day through CNC Order??
If you’re buying and selling on the same day in CNC, there is no obligation (receivable, deliverable) and hence no risk of Short delivery.
CNC and MIS are codes used across the brokers. For NSE what they are interested is whatever shares that are bought by someone has to be settled on T+2, they dont bother whether you are buying under CNC or MIS.
If you dont sell off your shares and keep it overnight, then it is considered as delivery and NSE will initiate the delivery process. If you are selling back the shares you bought on the same day itself, then they dont have to initiate any settlement and it is considered Non Deliverable intraday trades.
Even if you place orders as CNC wile purchasing, if you sell off those shares again as CNC, internally broker will consider in his software as MIS type and charge brokerages accordingly. NSE has nothing to do with this.
Also read this post on different charges and scenario