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Delivery Order in Share Market
In the share market, a Delivery order refers to an order placed by an investor to buy or sell shares with the intention of taking or giving actual possession of the shares. This contrasts with trades made for speculative purposes where the investor may not intend to hold the shares for the long term.
This type of trading involves the actual transfer of shares from the seller to the buyer. When an investor places a delivery order, they are committing to pay the full price of the shares they are purchasing or to deliver the shares they are selling. The shares are credited to or debited from the investor’s demat account, which holds the securities in electronic form.
The settlement of the delivery orders takes place in T day or T+1 day based on the broker’s settlement cycle. In India, the brokers are moving towards the T-day settlement cycle for the same delivery of shares.
In Flattrade there are no brokerage charges for the delivery orders it is absolutely free. Charges like government taxes, Exchange charges, and DP charges are applicable. To know about the charges visit the brokerage calculator page.
Delivery Order Process
Below are the steps involved in the successful execution of a Delivery order in share market.
- Trade Execution: An investor buys shares on the stock exchange.
- Delivery Order Issued: Upon the execution of the trade, the seller issues a delivery order to their broker or custodian.
- Transfer of Securities: The custodian or broker arranges for the transfer of the securities from the seller’s demat account to the buyer’s demat account.
- Payment Settlement: Concurrently, the buyer’s payment is transferred to the seller’s account.
- Settlement Completion: Once both securities and payment have been exchanged, the transaction is considered settled.