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What is Equity Delivery?

When you trade during the day, you have to close your position the same day, but you don't have to send the securities physically.  It's the other way around with equity delivery.  So, what does equity delivery mean?

When you receive actual shares in your Demat account, this is referred to as "equity delivery."  Once you receive the shares you bought, you can choose to either keep them in your Demat account or sell them.

You can keep the stocks for as long as you want.  Trading stocks for shipping is about making money over the long term.  Also, you can't use margin when buying stocks.

 

What are Equity Delivery Charges?

Equity delivery charges are fees your broker charges when you buy shares and keep them for more than one trading day. These shares are stored in your demat account.

You can hold on to the shares for as long as you want in stock delivery trading; you can sell them at any time. Fees vary from broker to broker, and some don't charge anything for delivery at all.

Brokerage fees, exchange transaction fees, SEBI fees, stamp tax, and GST are some of the most common of these fees. They help you figure out how much your trade really costs and make better plans.

T+2 Settlement Meaning

In the stock market, T+2 Settlement refers to the process where transactions are completed two working days after the trading day. This means that after you purchase stocks, the final settlement occurs on the second business day.

This cycle is essential for equity delivery, ensuring that the transfer of ownership and funds is systematically handled, providing a clear timeline for both buyers and sellers.

How Do I Purchase Delivery Stock?

To buy the shares, you must have the full amount of money in your account. Some brokers, on the other hand, offer Margin Trade Financing to give you the margin advantage in delivery trading.

To buy delivery stock, log in to your trading account, search for the company’s shares, and place a buy order.

Make sure you have enough funds in your trading account before confirming the purchase. Once bought, the shares will be credited to your demat account.

Benefits of Equity Delivery

  • You have full control to decide when to sell your shares. You can wait for the right market conditions to maximise profits and hold your investments without any time limit.

  • Shares in your demat account can be pledged to get loans from banks and financial institutions. This is useful during financial emergencies, allowing you to unlock funds without selling your holdings.

  • Owning delivery shares makes you eligible to receive dividends whenever declared by the company. This ensures you not only hold assets but also enjoy regular income benefits.

  • When companies announce bonus shares, delivery shareholders benefit directly. For instance, with a 1:1 bonus, you receive one extra share for every existing share, increasing your investment value without extra cost.

Conclusion

Before making any investment, it’s important to conduct thorough research to understand equity delivery and its associated costs. Equity delivery involves buying shares and holding them in your Demat account for a period, allowing you to benefit from potential price appreciation over time.

Unlike intraday trading, where stocks are bought and sold on the same day, delivery trading enables long-term investment in companies you believe in. By holding shares for a longer period, you can also earn dividends and take advantage of market growth. Understanding the process and costs is crucial for informed investing decisions.

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Disclaimer :

The information on this website is provided on "AS IS" basis. Bajaj Broking (BFSL) does not warrant the accuracy of the information given herein, either expressly or impliedly, for any particular purpose and expressly disclaims any warranties of merchantability or suitability for any particular purpose. While BFSL strives to ensure accuracy, it does not guarantee the completeness, reliability, or timeliness of the information. Users are advised to independently verify details and stay updated with any changes.

The information provided on this website is for general informational purposes only and is subject to change without prior notice. BFSL shall not be responsible for any consequences arising from reliance on the information provided herein and shall not be held responsible for all or any actions that may subsequently result in any loss, damage and or liability. Interest rates, fees, and charges etc., are revised from time to time, for the latest details please refer to our Pricing page.

Neither the information, nor any opinion contained in this website constitutes a solicitation or offer by BFSL or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.

BFSL is acting as distributor for non-broking products/ services such as IPO, Mutual Fund, Insurance, PMS, and NPS. These are not Exchange Traded Products. For more details on risk factors, terms and conditions please read the sales brochure carefully before investing.

Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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