Cash segment meaning: delivery, intraday and settlement

The cash segment, also called the cash market or equity segment, is where securities such as shares and exchange traded funds are bought and sold directly. A delivery purchase can result in shares held electronically in your demat account. An intraday trade in the same segment is opened and closed within the trading day. The word “cash” distinguishes these security trades from derivatives contracts; it does not mean paying with banknotes.

Cash segment, delivery and intraday mean different things

The segment tells you what market the order uses. Delivery and intraday describe how you intend to handle the position. A trading account is used to place orders; a demat account holds securities electronically. Seeing a buy order execute and seeing settled shares in demat are different stages.

NSE lists stocks, exchange traded funds, Indian Depository Receipts and closed-ended mutual fund units among cash-market products. An exchange traded fund is a fund whose units trade on the exchange. This page focuses on ordinary listed shares; other securities and trading series can have different conditions.

What CM, EQ and BSE cash mean in your app and contract note

Apps and statements use short labels. They point to the same idea, but each one names a different layer.

If a label confuses you, check the broker's help page or the first page of your contract note. It states the exchange and segment of each trade.

Cash segment versus futures and options

Avoid equating the cash segment with “no borrowing”. NSE documents a Margin Trading Facility, or MTF, for eligible purchases with client consent. Fully paid delivery holdings and broker-funded holdings have different obligations. The market segment alone cannot tell you whether a position is financed.

Main features of the cash market

• You own the security. After a delivery purchase settles, the shares sit in your demat account.
• Ownership rights. Shareholders may be entitled to dividends and corporate actions such as bonus or rights issues, as declared by the company.
• No expiry. A share has no expiry date. You can hold it as long as you like.
• Full payment. Delivery needs the full purchase value unless you use a separately agreed funding facility.
• Price changes can still cause losses. The value of the shares can fall below your buying price.
• Intraday is allowed. You can buy and sell the same share on the same day, with your broker's rules on closing and risk.

For a side-by-side look at the two ways to use the cash segment, read intraday vs delivery and delivery vs margin trading.

When do cash-market trades settle?

NSE Clearing’s normal rolling cycle is T+1: the trade date plus the next eligible settlement day. Intervening bank holidays, exchange holidays and weekends are excluded. Optional T+0 settlement is a separate route for eligible securities, so “cash market” does not mean all purchases settle immediately. These arrangements were checked on 16 October 2026.

A delivery shortage can change what happens to a particular purchase. Check the exchange settlement calendar and your broker’s account records if shares have not arrived as expected. Also check the trading series: NSE’s trade-for-trade category requires each purchase and sale to settle separately. Opposite trades do not cancel the delivery obligation. Do not assume an ordinary intraday workflow applies there.

Series codes: EQ, BE and BZ

On NSE, each security trades in a series. EQ is the normal series with rolling settlement, and shares in it can be traded intraday. BE is the series for the trade-for-trade segment, where every purchase and sale settles on its own and opposite trades are not netted off. BZ is used for trade-for-trade (Z category) for non-compliance with certain listing conditions, and intraday trades are not allowed in it.

Before you place an order, look at the series next to the stock. A stock in BE means you cannot square off in the same day to avoid delivery. NSE's legend of series and its circulars show the current status of any stock, so check them instead of relying on memory.

Worked example: buying and selling shares

In a made-up delivery trade, suppose you buy 40 shares at ₹500 each. Purchase value is 40 × ₹500 = ₹20,000. Later, assume all 40 shares sell at ₹520. Sale value is 40 × ₹520 = ₹20,800, giving a gross gain of 40 × (₹520 − ₹500) = ₹800.

That gain excludes charges, funding costs and income tax. It is an arithmetic example, not a return forecast or a claim that a particular stock traded at those prices. Use actual executed quantities and prices when recording a real trade; an unfilled order contributes no completed purchase.

Charges in the cash segment

Cash trades carry brokerage, STT (securities transaction tax), exchange charges, SEBI fees, stamp duty, GST and, for delivery, depository charges. The STT rate differs by type of trade: 0.1% for delivery and 0.025% for intraday. These two rates were not changed in the April 2026 STT revision. NSE's cash-market exchange charge is 0.00297% of turnover. See the charges changelog for dates and sources.

Made-up example: for the ₹20,000 purchase above, the STT at 0.1% is 20,000 × 0.1% = ₹20 on the buy side of a delivery trade. Brokerage and the other levies are extra, so use your own contract note for the real total. The STT glossary page explains the rate and who pays it.

Who regulates the cash segment

SEBI (the Securities and Exchange Board of India) is the market regulator. NSE and BSE run the trading platforms, their clearing corporations handle settlement, and depositories hold shares in electronic form. Your broker is the link between you and these bodies.

Tax on cash-segment gains

Gains on shares held for delivery are treated as capital gains, short-term or long-term depending on how long you held them. Intraday share profits are usually treated as speculative business income. Rates and rules change in each Budget, so ask a chartered accountant (CA) before filing. Keep the contract notes and a record of each trade.

What to check on a cash-segment order

• Read the security name, exchange and trading series before confirming the order.
• Check whether the selected product is delivery, intraday or an agreed funded purchase.
• Use your broker’s published funding and closure terms rather than assuming all cash orders behave alike.
• Match the executed quantity to the intended quantity; an order can complete only partly.
• Record actual charges from the relevant broker statements when reviewing the result.

If execution differs from the price you expected, market depth helps explain the available quoted quantities. The segment name cannot guarantee that an order will trade at the last displayed price.

Sources

• NSE: Cash-market products (checked 16 October 2026).
• NSE Clearing: Settlement cycle (checked 16 October 2026).
• NSE: Margin Trading Facility FAQ (checked 16 October 2026).
• NSE: Market segments (checked 16 October 2026).
• NSE Clearing: Same-day settlement FAQ (checked 16 October 2026).