Track 07Module 1 of 46 sources
Sessions, settlement, indices and taxes
Know the trading day, how trades settle, how the indices are built and what trading costs after tax.
Key ideas
- The cash market runs from 9:15 to 3:30 with a pre-open auction before it. The closing price is a volume-weighted average of the last half hour, with a closing auction being phased in.
- Settlement is one day after trade. Margin rules, peak margin and pledge mechanics decide how much leverage you really have.
- Indices are weighted by free float and rebalanced twice a year. Inclusions and exclusions create predictable flows.
- Securities transaction tax, short and long-term capital gains tax and the treatment of derivatives income as business income all change which strategies are worth running.
Start hereWatch or read these first. They carry the core idea.
What Happens After the Market Closes? | In The Money by Zerodha
Video · In The Money by Zerodha · 25:59
What happens between the closing bell and the next morning: clearing, settlement and margins.
Data
Course
Varsity Module 7: Markets and Taxation
Zerodha Varsity
How trading and investing income is taxed in India. Read before your first year-end.
CoreThe standard references. Work through them once the idea is clear.
SEBI's new Closing Auction Session (CAS): What's changing and how the closing price is set
Video · Zerodha · 6:20
The closing auction session and why it changes the last half hour.
Data
NIFTY Indices: methodology and reports
NSE Indices
Methodology documents and factsheets for each index.
SEBI Algo Trading Changes — April 2026: Static IPs & More
Video · In The Money by Zerodha · 21:34
The rules for retail algorithmic trading and what they allow.
Practice
Take one trade you made. Work out every cost on the contract note, then your tax on it. Express the total as a percent of the trade.
See it live
Where this leads
07.2 · Indian Market StructureWho is buying: foreign, domestic and retail flowsRead the daily flow numbers and know which of them carry information.01.5 · Order Flow and MicrostructureIndia's tape: auctions, algos and the Jane Street caseKnow the rules that shape the NSE tape: sessions, closing auctions, expiry mechanics, algo rules and where regulators draw the line on manipulation.