NSE on WebNotes

Auction market on NSE and BSE

Mon, 11 May 2026 00:00:00 +0000

The auction market on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) is a special trading session conducted by the exchange’s clearing corporation to resolve cases where sellers in the normal equity settlement fail to deliver the shares they are obligated to deliver. This non-delivery, called a short delivery, arises when a seller who executed a trade on the exchange does not place the required shares into the clearing system by the settlement deadline. To protect the buyer, the exchange runs an auction to procure the undelivered shares from willing sellers.

Bonds on Zerodha

Mon, 11 May 2026 00:00:00 +0000

Zerodha provides access to listed bonds and Non-Convertible Debentures (NCDs) through the debt segment of the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Investors can buy and sell these instruments through Kite in the same manner as equity shares, with settlement occurring in the demat account. This segment is distinct from Government Securities (G-Secs) and T-Bills, which trade through a separate RBI-managed mechanism.

Types of bonds accessible on Zerodha

Non-Convertible Debentures (NCDs)

NCDs are debt instruments issued by corporations that cannot be converted into equity shares. Listed NCDs trade on BSE and NSE’s debt segment. Examples include NCDs issued by Muthoot Finance, Shriram Transport Finance, Tata Capital, and government-backed entities such as NHAI and IRFC.

Buyback and tender offers on Zerodha

Mon, 11 May 2026 00:00:00 +0000

A share buyback (also called a share repurchase) is a corporate action where a company purchases its own shares from existing shareholders, reducing the total shares outstanding. In India, listed companies can conduct buybacks through two routes: the tender offer route (through the exchange platform) and the open market route (through the secondary market). Zerodha facilitates shareholder participation in tender offer buybacks through Kite.

Tender offers are distinct from open market buybacks: in a tender offer, the company announces a buyback price, a buyback period, and invites shareholders to tender their shares at the buyback price or below. Shares tendered at or below the final buyback price are accepted (subject to the company’s acceptance ratio). The open market buyback does not require any action from individual shareholders; the company buys shares from the exchange like any other buyer.

Disclosed quantity orders

Mon, 11 May 2026 00:00:00 +0000

A disclosed quantity order is a limit order in which the trader specifies that only a fraction of the total order quantity should be visible in the public order book (the market depth) at any given time. The remaining quantity, the undisclosed portion, is held by the exchange and released into the book as successive tranches of the disclosed quantity are filled. The exchange matching engine treats the full order quantity as active, but only market participants see the disclosed portion.

Equity segment on Zerodha

Mon, 11 May 2026 00:00:00 +0000

The equity segment on Zerodha is the platform’s largest business line by client headcount and turnover. It covers the buying and selling of equity shares listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) under the cash market (CM) segment. All trades in this segment are governed by the Securities and Exchange Board of India (SEBI) and cleared through NSE Clearing Limited (NCL) and Indian Clearing Corporation Limited (ICCL) for BSE. Settlement since January 2023 occurs on a T+1 basis for most listed equities, meaning shares and funds move between counterparties on the trading day plus one calendar day.

ETF investing on Zerodha

Mon, 11 May 2026 00:00:00 +0000

Exchange-Traded Funds (ETFs) are open-ended mutual fund schemes that are listed and traded on stock exchanges in real time, similar to equity shares. Unlike traditional mutual funds where units are bought and sold at end-of-day NAV, ETFs have a continuously updating market price during trading hours. Zerodha provides full access to all ETFs listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) through Kite. ETF investing through Zerodha carries zero brokerage for delivery (CNC) orders, making it cost-effective for long-term investors.

F&O segment on Zerodha

Mon, 11 May 2026 00:00:00 +0000

The Futures and Options (F&O) segment on Zerodha covers exchange-traded equity derivatives on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). This segment includes index futures, index options, stock futures, and stock options on SEBI-approved underlying securities. Zerodha is among India’s largest F&O brokers by volume, with the segment accounting for a substantial share of its brokerage revenue despite the flat-fee model.

All F&O contracts in India are cash-settled, meaning no physical delivery of shares occurs except in the case of stock futures and stock options contracts in their expiry month, which were mandatorily moved to physical settlement by SEBI in a phased manner beginning in 2018.

G-Sec on Zerodha

Mon, 11 May 2026 00:00:00 +0000

Government Securities (G-Secs) are sovereign debt instruments issued by the Government of India through the Reserve Bank of India (RBI) to finance fiscal deficits. They are considered the safest category of fixed-income instrument in India, carrying zero credit risk as they are backed by the sovereign guarantee of the Government of India. Zerodha provides retail investor access to G-Secs through two routes: exchange-traded secondary market G-Secs via Kite, and a linkage to the RBI’s Retail Direct scheme for primary auction participation.

Iceberg order on Kite

Mon, 11 May 2026 00:00:00 +0000

An iceberg order is an order type on Kite, Zerodha’s trading platform, that allows a trader to place a large total quantity while displaying only a small fraction of that quantity, the tranche size, in the public order book at any given time. As each visible tranche is filled, the next tranche is automatically submitted to the exchange, continuing until the entire order quantity is executed or cancelled.

The name derives from the analogy of an iceberg: a small portion is visible above the surface (the order book), while the much larger bulk remains hidden below. Iceberg orders are also known as reserve orders in international market terminology and are closely related to the disclosed quantity feature on Kite.

InvITs on Zerodha

Mon, 11 May 2026 00:00:00 +0000

Infrastructure Investment Trusts (InvITs) are SEBI-regulated investment vehicles that own and operate infrastructure assets such as toll roads, gas pipelines, power transmission networks, and renewable energy projects. InvITs pool investor capital, deploy it into infrastructure assets, and distribute a mandated portion of their cash flows to unitholders. Listed InvITs trade on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) and are accessible through Zerodha’s Kite platform.

InvITs were introduced in India under the SEBI (Infrastructure Investment Trusts) Regulations, 2014, mirroring the SEBI (Real Estate Investment Trusts) Regulations that govern REITs.

IPO listing day in India (T+3)

Mon, 11 May 2026 00:00:00 +0000

The IPO listing day is the first day on which the shares allotted in an Initial Public Offering (IPO) are admitted to trading on a recognised stock exchange in India. Under the timeline mandated by SEBI circular SEBI/HO/CFD/TPD1/CIR/P/2023/140 dated 9 August 2023 (effective 1 December 2023), the listing day falls on T+3, where T is the last day of the IPO subscription window. The term T+3 refers to the third working day after bid closure: if the issue closes on a Monday, listing occurs on Thursday (assuming no public holidays intervene on the intervening days).

IPO segment on Zerodha

Mon, 11 May 2026 00:00:00 +0000

The IPO segment on Zerodha allows investors to apply for Initial Public Offerings (IPOs) using the UPI-based ASBA (Application Supported by Blocked Amount) mechanism. Zerodha supports IPO applications through Kite, Kite’s mobile app, and the Console back-office platform. Investors can also apply via the exchange IPO portals (NSE IPO and BSE Invest) using their demat account details.

IPO applications on Zerodha do not attract any brokerage charge. The only cost is potential allocation loss during the basis of allotment process if the issue is oversubscribed.

Kite (Zerodha trading platform)

Mon, 11 May 2026 00:00:00 +0000

Kite is the trading platform operated by Zerodha, India’s largest stockbroker by active client count, comprising a browser-based terminal at kite.zerodha.com and a mobile application for Android and iOS. It provides retail and institutional clients with access to equities, equity derivatives, currency derivatives, commodity derivatives, and government securities across the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), as well as commodity exchanges operated by the Multi Commodity Exchange (MCX) and the National Commodity and Derivatives Exchange (NCDEX).

Limit order on Kite

Mon, 11 May 2026 00:00:00 +0000

A limit order is an instruction to a stockbroker to buy or sell a financial instrument at a specified price or better. On Kite, the trading platform operated by Zerodha, a limit order is placed by selecting “LIMIT” in the order type dropdown and entering the desired price in the price field. Unlike a market order, a limit order will not execute unless the market price reaches the trader’s specified level; it therefore guarantees price but does not guarantee execution.

Mainboard IPO in India

Mon, 11 May 2026 00:00:00 +0000

A mainboard IPO is a public issue of equity shares by a company on the main trading segment of the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE), as distinguished from the SME platforms (NSE Emerge and BSE SME) that operate under a separate and lighter regulatory regime. Mainboard IPOs are governed by Chapters II through VIII of the SEBI (ICDR) Regulations, 2018 and apply to issuers whose post-issue paid-up equity capital will exceed ₹25 crore, or those below ₹25 crore who voluntarily choose the mainboard route and meet the mainboard eligibility criteria. The mainboard is the segment on which all large and most mid-sized Indian companies list; household names such as Zomato, LIC, Hyundai India, Tata Technologies, and Paytm are mainboard listings.

Market order on Kite

Mon, 11 May 2026 00:00:00 +0000

A market order is an instruction to a stockbroker or trading platform to buy or sell a financial instrument immediately at the best price currently available in the market. On Kite, the trading platform operated by Zerodha, a market order is placed by selecting “MARKET” in the order type dropdown. The exchange matching engine fills the order at whatever bid (for a sell) or ask (for a buy) is sitting at the top of the order book at the moment the order reaches the exchange.

MTF on Zerodha

Mon, 11 May 2026 00:00:00 +0000

The Margin Trading Facility (MTF) on Zerodha allows investors to buy equity shares in the cash segment using leverage, meaning the investor contributes a portion of the trade value (the margin) and borrows the remainder from Zerodha. Unlike intraday MIS positions that must be squared off by the end of the trading session, MTF positions can be held for multiple days, weeks, or months while interest accrues on the funded amount. MTF is governed by SEBI’s Margin Trading Facility Guidelines and is available on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

National Stock Exchange of India (NSE)

Mon, 11 May 2026 00:00:00 +0000

The National Stock Exchange of India Limited (NSE) is the country’s largest stock exchange by trading volume and the world’s largest derivatives exchange by number of contracts traded in several recent years. Headquartered at the Bandra-Kurla Complex in Mumbai, NSE was incorporated in 1992 and received recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 (SCRA 1956) in April 1993, commencing operations in the wholesale debt market in June 1994 and in the equity cash segment in November 1994.

OFS on Zerodha

Mon, 11 May 2026 00:00:00 +0000

An Offer for Sale (OFS) is a mechanism through which promoters or large shareholders of a listed company sell their existing shares to the public through the stock exchange platform, without the company issuing new shares. OFS is used primarily by:

Promoters of listed companies reducing their stake to comply with minimum public shareholding (MPS) norms.
The Government of India for disinvestment of Central Public Sector Enterprises (CPSEs).

Zerodha enables retail and non-institutional investors to participate in OFS through Kite, similar to IPO applications. OFS transactions do not attract brokerage from Zerodha.

Order validity types on Kite, DAY and IOC

Mon, 11 May 2026 00:00:00 +0000

Order validity refers to the duration for which an order remains active in the exchange’s order book if it is not immediately filled. On Kite, Zerodha’s trading platform, every order carries one of two validity types: DAY or IOC (Immediate or Cancel). The validity type is selected at the time of order placement in the order form. Understanding the difference between these two types is essential for controlling execution outcomes, particularly for limit orders and conditional orders.

REITs on Zerodha

Mon, 11 May 2026 00:00:00 +0000

Real Estate Investment Trusts (REITs) are investment vehicles that own income-producing real estate assets and distribute a mandated proportion of their income to unitholders. In India, REITs are regulated by SEBI under the SEBI (Real Estate Investment Trusts) Regulations, 2014, as amended. REITs are listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) and can be bought and sold like equity shares through Zerodha’s Kite platform.

India’s first REIT, Embassy Office Parks REIT, was listed in April 2019. As of 2025, listed Indian REITs include Embassy Office Parks, Mindspace Business Parks, Brookfield India Real Estate Trust, and Nexus Select Trust (retail malls).

SLB on Zerodha

Mon, 11 May 2026 00:00:00 +0000

Securities Lending and Borrowing (SLB) is a mechanism whereby the holder of securities (lender) temporarily transfers them to a borrower for a fee, with the borrower obligated to return equivalent securities by a stipulated date. In India, the SLB platform is operated by NSE Clearing Limited (NSCCL) and BSE’s clearing corporation under SEBI’s framework. Zerodha offers SLB to eligible clients, allowing long-term equity investors to earn lending income by putting their idle demat account holdings to work.

Smallcases on Zerodha

Mon, 11 May 2026 00:00:00 +0000

Smallcase is a fintech platform that packages thematic or factor-based equity portfolios (called “smallcases”) for retail investors. Each smallcase is a curated basket of 2 to 50 stocks or ETFs representing a specific investment idea (e.g., rural demand, electric vehicles, banking sector, ESG). Zerodha integrates with smallcase through a technology partnership; smallcase orders are executed through Zerodha’s Kite trading engine. Investors require an active Zerodha account to invest in smallcases through the Zerodha-smallcase integration.

Sovereign Gold Bonds on Zerodha

Mon, 11 May 2026 00:00:00 +0000

Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold. They are issued by the Reserve Bank of India on behalf of the Government of India. SGBs offer investors exposure to gold price returns plus a fixed annual interest of 2.5% per annum on the issue price, without the need to hold physical gold. Zerodha provides access to SGB subscriptions during primary issue windows and to secondary market SGB trading through Kite.

Tax-free bonds on Zerodha

Mon, 11 May 2026 00:00:00 +0000

Tax-free bonds are a category of bonds whose interest income is exempt from income tax under Section 10(15)(iv)(h) of the Income Tax Act, 1961. They are issued by government-backed entities (primarily Public Sector Undertakings) as notified by the Ministry of Finance under specific budget allocations. Zerodha does not facilitate primary issuance of tax-free bonds, but investors can buy and sell previously issued tax-free bonds in the secondary market through Kite on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Zerodha NSE membership

Mon, 11 May 2026 00:00:00 +0000

Zerodha Broking Limited is a trading member of the National Stock Exchange of India Limited (NSE). NSE membership entitles Zerodha to place orders directly on the NSE electronic order book on behalf of its clients across all segments in which the firm is registered, including equity cash, equity derivatives, currency derivatives, and interest rate derivatives. NSE membership is a prerequisite for access to NSE’s trading platforms and is the principal source of trading infrastructure for the substantial majority of Zerodha’s retail order flow.