Delivery Trading refers to a type of stock market transaction in which an investor buys shares and holds them in their Demat account for more than one trading day. Unlike intraday trading, where positions are squared off within the same session, delivery trading involves actual transfer of ownership ó the shares are credited to the buyerís account and can be held for as long as desired.

In this form of trading, investors typically focus on long-term wealth creation rather than short-term price movements. Since delivery trades are settled through the stock exchangeís clearing mechanism, the securities are transferred to the buyerís Demat account within the T+1 settlement cycle (trade date plus one business day) as per current SEBI regulations. This ensures that the investor becomes the legal owner of the shares.

Delivery-based trading is often preferred by investors who wish to build a portfolio of fundamentally strong companies and benefit from long-term capital appreciation and dividends. It also provides eligibility for corporate benefits such as bonus shares, rights issues, and voting rights in company matters, which intraday traders do not receive.

However, delivery trading requires full payment of the transaction value, as shares cannot be purchased on margin for holding purposes. Investors must, therefore, have sufficient funds in their trading account to take delivery of the securities they buy. On the other hand, there is no obligation to sell the shares within a specific period ó they can be held for months or years depending on the investorís strategy.

From a regulatory standpoint, delivery trading is considered a stable and responsible investment approach, aligning with SEBIís goal of encouraging long-term participation in capital markets. It reduces excessive speculation and promotes disciplined investing based on company performance and fundamentals.

In essence, delivery trading is ideal for investors who aim to accumulate wealth gradually, benefit from compounding returns, and participate in the long-term growth of Indiaís equity markets through genuine ownership of shares.