Equity Delivery

Equity delivery, also known as delivery trading or CNC (Cash and Carry) trading, refers to the purchase of shares on NSE or BSE with the intention of taking actual delivery of the shares into the investor's Demat account — as opposed to intraday trading, where positions are squared off within the same trading session. In equity delivery trades, the investor pays the full purchase value of the shares (no leverage), and the shares are credited to the Demat account on T+1 (next trading day) under India's current settlement cycle. Equity delivery is the appropriate mode for long-term investing, as it confers ownership rights including dividends, bonus shares, voting rights, and participation in rights issues. From a tax perspective, shares held for more than one year after the date of delivery qualify for Long-Term Capital Gains (LTCG) tax treatment at 10% above ₹1 lakh in profit — compared to 15% Short-Term Capital Gains (STCG) tax for delivery shares held for less than one year.