Share Market
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Section 1 ยท Module 1.4

Financial Instruments on NSE

5 min read
Leverage
None (delivery) / up to ~5ร— (MIS intraday)
Settlement
T+1 Demat delivery
Min capital
Full CNC capital for delivery

Cash Equities (Stocks)

Fractional ownership in a listed company. Settlement is T+1 โ€” shares credit to Demat the next working day after the trade.

Trade as MIS (intraday, square off same day) or CNC (delivery, full capital).

Exchange Traded Funds (ETFs)

Track an index or basket but trade like a stock. One Nifty ETF unit gives broad market exposure without buying 50 stocks individually.

Low expense ratios, instant diversification, and no single-stock bankruptcy risk โ€” ideal for passive investors and swing traders on index moves.

Currency Derivatives

Trade USD-INR, EUR-INR, GBP-INR, and JPY-INR via futures and options. Cash-settled in INR โ€” no physical forex delivery.

High leverage for hedging international exposure or speculating on RBI policy and macro moves.

Knowledge check

You buy 50 Nifty 50 ETF units Tuesday morning (CNC). When do units appear in Demat?