Taking actual ownership of shares by holding them in your demat account beyond the settlement date, as opposed to squaring off intraday positions.
Delivery trading means buying shares and holding them in your Demat Account beyond the T+1 settlement date (T = trade date). The shares are "delivered" to your demat account, making you a registered shareholder with voting rights, Dividend eligibility, and Bonus Issue entitlement.
In India, equity settlement follows the T+1 cycle (implemented fully from January 2023, replacing the earlier T+2 system). When you buy Reliance shares on Monday, they are credited to your demat account on Tuesday. Until settlement, the shares are in "pool" and cannot be used as collateral or transferred. On most broker platforms, delivery trades are placed under the "CNC" (Cash and Carry) product type.
Delivery trading differs from Day Trading in several important ways. There is no leverage — you must pay the full amount for delivery trades (unlike intraday where brokers provide 5-20x margin). STT is charged on both buy and sell sides (0.1% each) versus only sell side for intraday. However, delivery trading qualifies for long-term Capital Gains Tax benefits if held for 12+ months, making it significantly more tax-efficient.
The delivery percentage of a stock's daily volume is a useful analytical metric. If a stock trades 50 lakh shares but only 15 lakh are delivery (30% delivery percentage), it suggests most activity is speculative intraday trading. Conversely, a delivery percentage above 50-60% indicates genuine buying interest. Rising delivery percentage during a price move up signals Accumulation by serious investors — a bullish sign.
On the NSE and BSE, delivery data is published daily and is freely available. Stocks in the T2T (Trade-to-Trade) segment mandated by SEBI can only be traded on a delivery basis — no intraday squaring off is allowed. This segment includes stocks with high volatility or suspected manipulation, and all trades must result in delivery, which reduces speculative activity.
India Context
T+1 settlement since January 2023. CNC product type on broker platforms. STT: 0.1% on buy + sell. T2T segment forces compulsory delivery. Delivery % is a key analytical metric.