What is free equity delivery?

Free equity delivery refers to a trading service where investors can buy and hold (or deliver) stocks in their demat accounts without having to pay any brokerage or commission fees for the delivery transaction.

In India, when you buy stocks or equity shares through a broker, the transaction is typically classified into two types:

• Equity Delivery: This involves buying stocks and holding them in your demat account for a long-term or short-term period. The stocks are not sold on the same day (which would be intraday trading). Delivery means you take ownership of the shares, and they are transferred to your account.
• Equity Intraday: This involves buying and selling stocks within the same trading day, where the trader does not take delivery of the shares.

Free equity delivery allows you to buy and hold stocks without brokerage fees, though taxes and other charges may apply. It benefits long-term investors by reducing costs and holding fees.