Cash Market

The cash market, also referred to as the spot market or equity market, is the segment of the stock exchange where securities are bought and sold for immediate delivery and settlement. In India, the cash market for equities operates on a T+1 settlement cycle — meaning trades executed today are settled (delivery of shares and payment of funds) by the next trading day. The cash market is distinguished from the derivatives market (futures and options), where contracts are settled at a future date based on a pre-agreed price. NSE and BSE's cash equity segments are the primary venue for retail investors to buy and hold shares, participate in IPO allotments, and receive corporate actions such as dividends and bonus shares. India transitioned from T+2 to T+1 settlement in January 2023 — one of the fastest settlement cycles among major global equity markets — significantly reducing settlement risk and improving capital efficiency for market participants.