Why can’t I take delivery of shares if I have not opened a Demat account?

Why can’t I take delivery of shares if I have not opened a Demat account?

If you're planning to hold shares beyond the trading day—whether for a week, a month, or several years—you’ll need a Demat account. This account safely stores your shares in electronic format and is essential for taking delivery of any securities you buy through FYERS.

What is a Demat account and why is it required?

A Demat (short for "Dematerialised") account is an electronic account that holds your shares and other securities in digital form. When you buy shares on FYERS and choose to hold them instead of selling them the same day, these shares are transferred to your Demat account. Without one, you can’t take delivery of stocks.

This account is mandatory for all delivery-based trades. If you're only doing intraday trading or derivatives, a Demat account isn’t strictly necessary—but for long-term holdings, it's essential.

How it works at FYERS:

  • When you buy shares and select delivery (i.e., not selling on the same day), FYERS credits the shares to your linked Demat account.
  • These shares remain in your custody in dematerialised (electronic) format until you choose to sell them.
  • If you don’t have a Demat account linked with FYERS, you won’t be able to receive or hold the shares you’ve purchased.

What if I don’t have a Demat account?

ScenarioWhat Happens
You try to buy delivery shares without a Demat accountYour transaction may be rejected or not processed for delivery.
You have an active FYERS trading account but no DematYou'll need to open a Demat account or link an existing one to take delivery.
You only trade intraday or in F&OYou can still trade, but cannot hold equity shares.
Always ensure your Demat account is linked and active before placing delivery-based orders on FYERS.