Why do shares bought for delivery appear under positions on the same day?
Why do shares bought for delivery appear under positions on the same day? Find a clear answer in this FAQ by 021 Trade.
Shares bought for delivery appear under Positions on the same day because the trade has been executed but settlement has not yet happened.
1. Trade Day (T Day)
When you buy shares today, the order gets executed immediately on the exchange (like National Stock Exchange of India or BSE Limited).
However, the shares are not yet credited to your demat account.
So on the same day, your broker shows the shares in the Positions tab to indicate that you currently hold an open trade.
2๏ธ. Settlement Cycle (T+1 in India)
India follows a T+1 settlement cycle regulated by Securities and Exchange Board of India.
- T Day (Trade Day): You buy the shares โ shown in Positions
- T+1 Day: Shares are credited to your demat account via Central Depository Services (India) Limited or National Securities Depository Limited
After settlement, the shares move from Positions โ Holdings.
3๏ธ. Why brokers show it in Positions first
Brokers show it in Positions because:
- Settlement is pending
- Shares are not yet delivered to your demat account
- You may still sell them before settlement (like BTST)
Example
- Monday: You buy 10 shares โ appear in Positions
- Tuesday (T+1): Shares get credited โ move to Holdings
* In short:
Shares appear in Positions on the same day because settlement happens on T+1, not instantly.