Orders under Delivery Product only on Ledger Credit

As you know, Delivery orders are one of the most common types of orders, and they refer to when you buy, take delivery of the securities and hold them in your account for as long as you want.

At present you can place an order under delivery product type based on Cash + Non-cash credit.

  • Cash Credit = Ledger Credit
  • Non-cash Credit = Pledged stocks/collateral, etc.

If you have ever placed an Order under Delivery product type using Non-cash credit, you will be aware of the process that follows, viz:

  • You have to pay the Non-cash credit used by T+2 day
  • Else, you will be charged Penalty till you pay the same,
  • And further non-payment will lead to a square-off of shares on T+7 day.

However, now you will be able to place orders under this product type only based on Cash Credit i.e. Ledger Credit.

Given in the table below is a summary of how this small change will simplify your trading experience with orders under Delivery product type.

However, if you would like to purchase stocks using Non-cash credit, you can place your order using Margin or Intraday Product type. You can also continue using your Non-cash credit for all other segments including F&O, Commodities, Currency, etc.

Have more queries? Refer to these FAQs


Q. Can I buy a stock under Delivery product on the basis of pledged stocks/collateral?
A. No. You can only buy a stock under Delivery product as per your Ledger Credit (Cash Credit) available.

Q. Can I use margin funding to purchase stocks under Delivery product?
A. No. You need to place your order under Margin product in case you would like to buy a stock using Margin or Margin Trading Facility (MTF).

Q. Will Margin orders also be based on Ledger Credit only?
A. No. Margin orders can be placed using margin against Ledger Credit + Pledged Stock/Collateral.

Q. Does this apply to F&O trades as well? 
A. No. This is only applicable for Delivery product type for buy trades in the Cash segment.

Q. Can I use the credit received against stock sold from my holdings for orders under Delivery product?
A. Yes. You can avail 80% credit for sale benefit against stocks sold under Delivery product. This credit can be used to further place a buy order under Delivery product.

Q. Can I convert stocks purchased under margin to Delivery product?
A. Yes. You can do the same during market hours. However, the amount to be converted will depend on your Ledger Credit available.

Q. Can I convert stocks purchased from Delivery to Margin product?
A. Yes. You can convert stocks purchased from Delivery to Margin product during market hours.

Q. If I have a Ledger Credit of Rs 2,00,000 and have purchased stocks worth Rs 1,50,000 today, can I use the remaining credit in the next trading session?
A. Yes. You can use the remaining credit of Rs 50,000 for trading in the next session, assuming that you have not done any other transactions.

Share button