How to sell CNC shares in Zerodha? When can I sell CNC shares in the Kite Zerodha app?
- Asked By
- Updated On:18-Mar-2024
- Replies:3
Short Answer
Zerodha is India’s largest and most trusted Stock broker with more than 1+ crore active users. Selling shares in CNC is very simple in Zerodha. To sell any share in CNC you must possess that stock in your Demat order to sell it in CNC. Learn how to sell your shares in detail.
Detailed Answer
Selling shares or exiting your investments is an important part of investing. You can sell your shares as easily as you can buy them. Let’s see how you can do it in Zerodha.
Zerodha is India’s largest stockbroker with over 1+ crore active users. Before we see how to sell shares in CNC let’s understand some important points.
You can only sell the shares in CNC (Cash And Carry) that you already have in your Demat account. If you have 50 shares of “X”. You can sell only up to a maximum of 50 shares in the CNC category of “X”.
There are certain shares that can be sold only on the next day of buying. If you buy these shares in CNC and try to sell them on the same day, that would not be possible.
The settlement of CNC orders is T+2, which means that you can withdraw the funds only after this period.
You can sell CNC shares on Zerodha but you cannot short sell unless the shares are actually in your demat account. Here is the validity of the CNC order on Zerodha:
- If you place a day order then the order will be valid until it is executed or market closes, whichever is earlier.
- If you use the IOC order, then it will be canceled if the order isn’t completed.
When you place a CNC, IOC is used for large volumes on Zerodha. It is crucial to understand that CNC is just a code and it will be treated/deemed as an intra day if you buy and sell on the same day.
Steps to sell your holdings:
- Login to your Zerodha account, by entering your ID and password. Go to your holdings, and select the stock that you want to sell.
- Click on the 3 dots, a menu will pop where you will find an “Exit” button. Click on it. An order window will open as soon as you click on the exit button.
- Enter the number of shares that you want to sell in the QTY section. Also, select the order type as CNC and not MIS. If you want to sell your shares at the desired price then select the “Limit” price and enter your desired price in the box below.
- After completing these steps, keep the order variety as RGLR and validity as “DAY”. After filling in all the relevant details, click on “Sell”.
- After this you will be redirected to CDSL where you will be required to enter the T-Pin, that you received while opening your account. Once you enter the T-Pin, you will be authorized to sell your shares.
By following these steps you will be able to sell any shares that you hold in CNC.
Charges:
Zerodha does not charge any brokerage on delivery trades but there are some charges that you will have to bear. They include STT, Stamp Duty, Exchange transaction charge, SEBI turnover fees, etc. Apart from the following charges, you will have to bear a flat DP charge of Rs 16 approximately for every CNC sell order irrespective of the quantity of the order.
Besides charges, you are also obliged to pay taxes on your gains. If you sell your shares at a profit before 1 year then you will be charged 15% as STCG (Short term Capital gains tax). On the other hand, if you sell your shares at a profit after 1 year then you will have to pay 10% above 1 lakh as per your Tax Slab.
Does that sound an easy process? Do share your feedback.
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Discussion (2)
Even though Zerodha is the best broker and offers many advanced options like bucket orders, but a new user might get confused by terms like "CNC," "MIS," and "RGLR" because they simply understand terms like buy and sell.
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aishwarya.frm.28
It is important to note that one cannot short sell with the CNC code, if you dont own the share via a demat account.