What is Equity Delivery

Equity delivery meaning refers to buying shares and holding them in your Demat account for any duration. In delivery trading, you fully own the stocks and can sell them anytime for a potential profit.
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What is Equity Delivery
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3 mins
25-June-2025

Equity delivery refers to buying or selling shares and holding the position beyond the same trading day. The transaction follows a T+2 settlement cycle—shares bought on Monday are credited by Wednesday. Once delivered, you become the rightful owner of the shares and can hold them for any duration—whether a day, several months, or years—without any holding period restriction.

What is equity delivery charges?

₹0 brokerage up to ₹500 for first 30 days. After that, brokerage is lower of ₹20 or 0.1% per executed order + GST, with a minimum charge of ₹2.

Equity delivery charges refer to the specific brokerage fees deducted by a brokerage firm when you execute buy orders for shares in the equity delivery segment. The brokerage charges incurred during equity delivery transactions are determined by the brokerage firm facilitating the trade. Some brokers offer discounted rates through subscription models, providing cost-saving options for investors.

Pro tip

Invest in equities, F&O, and upcoming IPOs effortlessly by opening a Demat account online. Enjoy a free subscription for the first year with Bajaj Broking.

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Tips to invest in equity delivery

Build a diversified portfolio by selecting stocks from multiple sectors. This spreads the risk, ensuring losses in one sector can potentially be balanced out by gains in another, reducing overall volatility:

  1. Research and analysis:
    Before investing in any stock, conduct thorough research and analysis. Evaluate the company's financial health, performance, management, and growth prospects. Utilise financial statements, annual reports, and other relevant information to make informed decisions.
  2. Long-term perspective:
    Equity delivery is ideally suited for long-term investors. Instead of trying to time the market, focus on the fundamental strength of the companies you are interested in. Long-term investments provide the opportunity to ride out market fluctuations and benefit from the rupee cost averaging.
  3. Diversification:
    Diversifying your portfolio is a fundamental strategy to manage risk. Spread your investments across different sectors and industries to avoid being overly exposed to the performance of a single stock or sector. Diversification can help mitigate the impact of adverse market conditions on your overall portfolio.
  4. Stay informed:
    Keep yourself updated on market trends, economic indicators, and global events that may impact the stock market. Regularly monitor the performance of your portfolio and stay informed about any news or developments related to the companies you have invested in.
  5. Risk management:
    Assess your risk tolerance before making investment decisions. While equity delivery can offer significant returns, it also involves a level of risk. Determine the level of risk that you are comfortable taking and allocate your investments accordingly. Set stop-loss orders to limit potential losses.
  6. Avoid emotional trading:
    Emotional decision-making can lead to impulsive actions that may not align with your investment strategy. Stick to your research and investment plan, even during periods of market volatility. Emotional trading can result in buying high and selling low, which can negatively impact your returns.
  7. Cost management:
    Be mindful of transaction costs and fees associated with equity delivery trading. High transaction costs can eat into your profits over time. Compare brokerage fees and choose a platform that offers competitive rates while providing reliable services.
  8. Stay patient:
    Patience is a virtue in equity delivery trading. Avoid making knee-jerk reactions to short-term market movements. Allow your investments the time to potentially grow in value. Regularly reassess your portfolio, but avoid unnecessary, frequent buying and selling.

How do I purchase delivery stock?

Steps to buy delivery stocks:

  • Open a Demat and trading account: Choose a reliable stockbroker.

  • Log in to your trading platform: Use the web or mobile interface.

  • Search for your stock: Enter the company name or symbol.

  • Place a delivery order: Select “Delivery” and enter quantity.

  • Ensure fund availability: Full payment is required as margins aren’t allowed.

  • Wait for settlement: Shares will reflect in your Demat account in T+2 days.

Benefits of equity delivery

  1. Ownership rights: Investors have ownership and voting rights in the companies they invest in.
  2. Long-term wealth: Opportunity for substantial returns and compounding over time.
  3. Dividend income: Eligibility for dividends provides an additional income stream.
  4. Flexibility and control: Investors have control over buying and selling decisions.
  5. Tax benefits: Potential preferential tax treatment for long-term capital gains.
  6. Economic growth participation: Align investments with the growth of the economy.
  7. No time pressure: Unlike intraday trading, investors are not bound by time constraints.

Equity delivery offers these benefits but involves market risk. Investors should align their strategy with their goals, risk tolerance, and time horizon, staying informed about market conditions for successful long-term investing.

Conclusion

Remember that investing always involves risks, and there are no guarantees of profits. It is crucial to develop a well-thought-out investment strategy based on your financial goals, risk tolerance, and market understanding. If needed, consider seeking advice from financial professionals or advisers to enhance your investment decisions.

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Standard Disclaimer

Investments in the securities market are subject to market risk, read all related documents carefully before investing.

Research Disclaimer

Broking services offered by Bajaj Financial Securities Limited (BFSL) | Registered Office: Bajaj Auto Limited Complex , Mumbai –Pune Road Akurdi Pune 411035 | Corporate Office: Bajaj Financial Securities Ltd,1st Floor, Mantri IT Park, Tower B, Unit No 9 & 10, Viman Nagar, Pune, Maharashtra 411014| CIN: U67120PN2010PLC136026| SEBI Registration No.: INZ000218931 | BSE Cash/F&O (Member ID: 6706) | DP registration No : IN-DP-418-2019 | CDSL DP No.: 12088600 | NSDL DP No. IN304300 | AMFI Registration No.: ARN – 163403|

Research Services are offered by Bajaj Financial Securities Limited (BFSL) as Research Analyst under SEBI Regn: INH000010043. Kindly refer to www.bajajfinservsecurities.in for detailed disclaimer and risk factors

This content is for educational purpose only.

Details of Compliance Officer: Ms. Kanti Pal (For Broking/DP/Research)|Email: compliance_sec@bajajfinserv.in/Compliance_dp@bajajfinserv.in |Contact No.: 020-4857 4486 |

Investment in the securities involves risks, investor should consult his own advisors/consultant to determine the merits and risks of investment.

Frequently asked questions

What is an example of equity delivery?

An example of equity delivery is buying 50 shares of Infosys on Monday and holding them beyond that day. These shares will be settled in your Demat account by Wednesday (T+2). You become the legal owner and can hold them for long-term growth or sell them later, unlike intraday trades which must be squared off the same day.

What is the turnover of equity delivery?

Equity delivery turnover refers to the total value of shares bought or sold in delivery-based trades on a stock exchange. It is calculated by multiplying the number of shares transacted by their market price. Delivery turnover is often lower than intraday turnover but indicates serious, long-term investor participation in the market.

What is the difference between equity delivery and intraday?

Equity delivery involves buying shares and holding them beyond the trading day, with ownership transferred to your Demat account. Intraday trading, on the other hand, means buying and selling shares on the same day without taking actual delivery. Delivery attracts no compulsory exit, while intraday positions are automatically squared off before market close.

What is Free Equity Delivery?

Free Equity Delivery refers to a brokerage offer where you are not charged any commission or brokerage fee for delivery-based share trades. It promotes long-term investing by reducing transaction costs. Some brokers provide free delivery trades as a customer incentive, helping investors save on fees when holding shares for the long term.

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