CNC Full Form in Share Market – What is CNC in Indian Stock Market?

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CNC Full Form in Share Market: CNC stands for Cash and Carry. It is a facility used for delivery orders in Zerodha and stock markets. Earlier, when you bought shares, the delivery would take 2 days. But with CNC, you get the shares right away in your Zerodha account when you buy them. And when you sell the shares, the money comes into your account immediately. So every time you buy or sell shares, the settlement happens at once. You don’t need to wait for 2 days. This faster and continuous settlement helps you trade smoothly in Zerodha. CNC makes share delivery quick and easy. Zerodha also lets you trade CNC orders without any brokerage. So you can buy and hold shares for long term easily with brokerage-free CNC facility.

What is CNC in Indian Stock Market?

Here are some of the major trading platforms in India and what CNC is called on them:

  • Zerodha – CNC is called Cash and Carry on Zerodha. It is used for delivery-based equity trading.
  • Upstox – It is called Delivery on Upstox. Same usage as on Zerodha – for taking delivery of shares.
  • Angel Broking – Called Delivery here as well. Used for delivery orders.
  • Groww – Called Delivery on Groww platform. For delivery-based equity trading.
  • ICICI Direct – Called Delivery on their platform too. Allows delivery trading.
  • HDFC Securities – Known as Delivery. For taking delivery of shares purchased.
  • Kotak Securities – Called Delivery here too. For delivery-based equity trading.

CNC which stands for Continuous Net Settlement is mostly referred to as Delivery on most retail trading platforms in India. But the functionality remains the same – to allow delivery-based equity trading.

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Read: How to Earn Rs 5000/- Daily From Indian Trading Platform without Investment.

Tips to Buy Share on CNC in Any Trading Platform:

Buying shares on CNC is easy if you follow some simple tips. Firstly, CNC stands for Cash and Carry. It allows you to buy shares and hold them for long term. On most trading platforms like Zerodha, Upstox etc, CNC is called Delivery.

When you want to buy shares, always use CNC/Delivery order type. Choose the stock you want to buy. See its price and decide how many shares you want to buy. Make sure you have enough money in your trading account. Then place the CNC buy order by selecting the CNC option. Your order will get executed as per the stock price.

Once order is complete, the shares will come directly into your demat account. You don’t have to wait for 2 days like before. This quick settlement helps you buy and sell faster. There is no brokerage or fees on CNC orders in most platforms nowadays.

Always remember – CNC is for when you want to hold shares for more than 2-3 days. Do your research before picking stocks. Start with good quality stocks. And use CNC to buy them for holding long term. This way you can create wealth by buying the right stocks using CNC delivery orders.

Read: How to Earn Rs 500/- daily without Investment from Stock Market.

Key Points to be remembered 

Cash N Carry, also known as CNC, is a very useful facility available for equity investors in the stock market. It enables faster delivery of shares and settlement of funds when you buy stocks. Let us understand Cash N Carry in more detail:

  • Cash N Carry or CNC orders are used when you want to buy shares with the intention of holding them for long term, instead of intraday trading.
  • When you place a Cash N Carry buy order, you get delivery of the purchased shares directly into your Demat account. You don’t need to wait for the standard T+2 days settlement cycle.
  • The money equivalent to the buy order value also gets deducted from your trading account balance instantly. So settlement of both shares and funds happens on a real-time basis.
  • Most stock brokers like Zerodha, Upstox, Angel Broking etc. provide Cash N Carry delivery orders completely free of brokerage charges. This makes it very cost-effective.
  • The instant settlement improves efficiency and reduces paperwork compared to the traditional T+2 settlement of non-CNC orders.
  • Cash N Carry streamlines the entire share buying and delivery process seamlessly within your Demat account.
  • It gives investors more flexibility to buy shares whenever they want and get faster delivery compared to waiting for 2 days.
  • One can buy quality stocks using Cash N Carry facility and hold them for long term to earn good returns. It is ideal for building a long-term portfolio.
  • Cash N Carry works very smoothly when markets are stable. But in volatile conditions, getting fast delivery of shares may be risky if share price reverses suddenly after buying.
  • So it is advisable to use Cash N Carry only for purchasing fundamentally strong stocks that you have researched properly. Don’t use it for speculative trades.
  • Investors should have sufficient funds in their trading account before placing Cash N Carry orders to ensure smooth settlement.
  • Overall, Cash N Carry is a great facility that has made share buying and delivery much simpler and faster for investors looking to invest for long term.
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So in summary, Cash N Carry enables instant delivery-based share trading in a streamlined manner within your Demat account. Use it wisely to buy and hold quality stocks for the long run.

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