For investors in India, one of the most common doubts is whether you can buy a stock on NSE and sell it on BSE on the same day. With millions of Indians entering the stock market through apps like Zerodha, Groww, Upstox, and Angel One, this question is more relevant than ever.
The short answer is yes (you can), but there are specific conditions, rules, and risks you must understand before doing it.
This guide explains everything in simple, practical language so investors don’t get confused by technical terms. You’ll learn how the process works, whether it is profitable, what mistakes to avoid, and how brokers handle inter-exchange transactions.
1. Can You Buy on NSE and Sell on BSE? The Straight Answer
Yes. In India, you can buy shares on NSE (National Stock Exchange) and sell those same shares on BSE (Bombay Stock Exchange), as long as the stock is listed and actively traded on both exchanges.
This is possible because:
You own the shares in your demat account, not on the exchange you bought from.
Once the shares are in your demat account (or even marked for intraday), you can choose where to sell.
The shares are fungible; meaning the exchange doesn’t matter for ownership.
However, the most important point is:
You cannot do this for intraday arbitrage unless your broker supports it. Why? Because intraday trading works within the same exchange.
If you buy on NSE and want to sell on BSE on the same day, your broker must allow inter-exchange (cross-exchange) square-off.
Some brokers support it; some don’t.
2. Is Same-Day Buy on NSE and Sell on BSE Allowed?
It depends on two conditions:
Condition 1: Your broker must support cross-exchange intraday selling
Brokers like Zerodha, Groww, Upstox do not allow intraday square-off across exchanges.
So if you buy a stock on NSE in intraday mode (MIS), you must sell it on the same exchange.
However, if you buy the stock in delivery mode (CNC), you can sell it on BSE the same day only if the shares get delivered to your demat account on T+1. This means same-day selling may not work unless it’s already in your demat account.
Condition 2: The stock must be listed on both NSE and BSE
This is important. For example:
Reliance, TCS, Infosys (listed on both)
Some smallcap stocks (listed only on one exchange)
If not listed on both, cross-exchange selling is not possible.
3. Why Do Investors Want to Buy on NSE and Sell on BSE?
There are two main reasons:
Reason 1: Price difference (Arbitrage opportunity)
Sometimes the price of a stock on the NSE is slightly different from the BSE:
NSE: ₹100
BSE: ₹101
This difference happens due to order flow, liquidity, and demand.
Traders think they can:
Buy at ₹100 on NSE
Sell at ₹101 on BSE
Profit = ₹1 per share.
This is called cash arbitrage.
But here’s the truth:
Retail traders cannot profit from cash arbitrage manually. Bots, HFT firms, and institutions exploit the difference in milliseconds.
By the time a retail investor switches tabs, the price has already changed.
Reason 2: Better liquidity
Some investors buy where liquidity is higher and sell where the trade executes faster or at a better price.
Example:
NSE volume is higher; and easier to buy
BSE order book thinner; and occasional better selling price
This can work for delivery trades, not intraday arbitrage.
4. How Cross-Exchange Selling Works Inside Your Demat Account
To understand the process, remember this rule:
You don’t own NSE shares or BSE shares. You own company shares stored in your demat account.
So if you buy 10 shares of HDFC Bank on NSE:
They are credited to your demat on T+1 (from Jan 2023 settlement rule).
After that, you can sell those 10 shares on any exchange.
The exchange is only the place where the trade happens, not where the shares belong. This is why delivery trades let you sell on either exchange.
5. Can You Do It for Intraday Trading?
Most investors want to know:
If I buy a stock on NSE in intraday mode, can I sell it on BSE before 3:30 PM?
The simple rule:
Intraday (Always same exchange): You cannot buy on one exchange and sell on another in intraday mode (MIS/Cover Order/Bracket Order).
Delivery (Cross-exchange selling possible): If the shares are already in your demat, you can sell on either exchange, even the same day.
So intraday arbitrage is not allowed.
Delivery-based difference trading is allowed but not profitable for investors.
6. Will You Get a Penalty If You Try?
No penalty. If your broker doesn’t allow cross-exchange intraday, your order simply won’t execute. Brokers will display:
“Intraday square-off not allowed across exchanges”
“Insufficient holdings for exchange BSE”
So you cannot make a mistake that triggers a penalty.
7. What Investors Should Do Instead?
Instead of chasing arbitrage between NSE and BSE, investors should focus on:
Long-term investing in quality stocks: Reliance, HDFC Bank, TCS, ICICI Bank, Infosys, SBI.
Trading liquid stocks only on one exchange: Choose NSE for most trades because it has higher liquidity.
Avoid illiquid BSE smallcap counters: You may get stuck without buyers.
Use limit orders: Helps avoid slippage.
Don’t chase 10–20 paisa price differences across exchanges: Institutions will beat you.
8. Quick Summary for Indian Readers
Yes, you can buy on NSE and sell on BSE.
Delivery trades allow cross-exchange selling.
Intraday trades must be on the same exchange.
Price difference arbitrage is not practical for retail traders.
No penalty for cross-exchange attempts; order will just fail.
Choose NSE for liquidity and reliability.
Conclusion
Buying on NSE and selling on BSE is possible in India, but only under the right conditions. Delivery trades give you full flexibility, but intraday trades must stay within the same exchange.
While price difference arbitrage sounds attractive, retail investors rarely benefit because high-frequency systems fix the difference within seconds. For Indian investors, focusing on solid long-term investing and simple trading strategies is far more rewarding.
This clarity helps new investors avoid confusion and trade with confidence. With the right knowledge and approach, the Indian stock market becomes easier, safer, and far more profitable.
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