New Feature Announcement: Pre-Delivery Orders

Indian stock markets have evolved over years, these days much faster than ever. Earlier the settlement cycle for shares was T+3 days back in 2003. For folks like me who have been tracking markets for a long time, this was 14 days when shares were traded and transferred in physical form.

SEBI recently has given guidance to Stock Exchanges to adopt T+1 settlement based on their readiness from 2022. This is interesting, India is moving towards faster settlement cycles for shares. We thought this would be a great opportunity for us to introduce a new feature on Dhan - Pre-Delivery for our users. Some of our users have been using this for the past week, and today we are opening this for all.

What exactly is Pre-Delivery?
Pre-Delivery is a better version of the good old BTST (Buy Today and Sell Tomorrow) orders wherein you could buy stocks today and sell them tomorrow (before they are delivered to your Demat account on T+2 days).

What have we done differently on Dhan?
Most stockbroking platforms that we have seen show your T+1 holdings merged in the portfolio the next day of when your trades are executed. Now if you are already holding more shares of the same stock, you don’t know which stocks you are selling - the new ones or the old ones. If you sell old ones, which are older than 1 Year - then there are tax implications to your execution decision. Or even simpler, your stocks are averaged out by buying price the very next day, hence you possibly miss out on making a profit if there is a significant increase in price the very next day or cut loss if there is a significant correction on the next day.

We made it simpler on Dhan -
Your T+1 holdings now appear separately under the Pre-Delivery section in Orders
If you sell, you sell your T+1 holdings, and not from your Portfolio or Demat Holdings
The one-day gain or loss is prominently visible for your T+1 day
You can choose to exit one position at a time, or all of them at once

Pre-Delivery on Dhan is also future proof
When exchanges implement the T+1 settlement from 2022, this will not be applicable for all stocks at the same time. So the ones exchanges move to the T+1 settlement cycle will automatically settle on the next day and with Pre-Delivery you will always have the option to take a delivery on T+2 or exit the same on T+1.

Should you sell all kinds of stocks on Pre-Delivery?
Technically you can, but we would recommend you use this only for very liquid stocks that are traded in high volumes. Remember, you are selling shares that you don’t own because the seller from whom you have purchased them is yet to give them to you and hence not in your Demat account yet. If the seller defaults on giving delivery of your shares, this will be termed as short delivery, and in such an event, you will face an auction penalty by the stock exchanges which may be up to 20% of the stock that was short delivered.

Hope you enjoy this awesome Pre-Delivery experience that we built for you. As always, we are making sure that we’re improving Dhan based on your suggestions and feedback. Feel free to share more on Dhan Community or write to us at

Cofounder, Dhan


@JayG It’s highly appreciating that you have also covered disclaimer in your note so that anyone who wishes to do pre-delivery understands risk as well.


Looks like some work needs to be done to show Pre-Delivery P&L

P&L shown under Stock for same Pre-delivery

  • Thanks for highlighting this issue. We are looking in it.

Partial quantity sold, Portfolio continues to show entire quantity as holding.

We checked this @nity, the whole lot has been sold from your end. Before tomorrow’s market hour begins, the entry of the stock with 0 lot will not be displayed.

@shraddha I know that entire quantity finally got sold. Point that I want to make is that in Portfolio section, the quantity does not change till the entire quantity gets sold. This according to me needs to be looked into.

As per below screenshot, I am in profit despite LTP below my buying price.

Thanks for highlighting this issue. We are working on it.

Has Pre-delivery stopped working completely, @RahulDeshpande ?

Hi @nity ,

It’s working from our end. Could you please share a screenshot, if you are facing from your end.Will get it checked right away!

@RahulDeshpande Looks like this is more to do with the timing. This started working for me as well from 10am onwards. Let me check tomorrow again and will share screenshot if issue occurs again.

1 Like

Sure, please do check tomorrow and if it occurs again, let me know.

See this screenshot taken just now at 11.45am

Getting this checked.

Hi @nity ,

We checked, and you have sold all your tata power quantities, hence the Qty is being displayed zero. If this not the concern, request you to please elaborate the issue you are facing with.

My Tata Power is still in Pending Order. Not yet sold.

Now on cancelling the order, it is showing the values in Pre-delivery. But, this is not the expected behaviour of Pre-delivery page. It should show the stocks which are pre-delivery irrespective of whether these are sold or yet to be sold.

See screenshot taken now. What is the reason for this? I do not have any pending order…

Another screenshot taken now. But this is of Portfolio. Completely misleading…