Trading & Settlement Process

UNDERSTANDING THE TRADING AND SETTLEMENT PROCESS AND OTHER DOCUMENTORY REQUIREMENTS AT BROKERS OFFICE TO OPEN THE TRADING ACCOUNT Understanding Trading and answer of Equities linage market is a duty platform which provides an opportunity to buyers and sellers of securities to do transactions. As of now there are 23 recognised stock exchanges in India and 24th is likely to start functional soon. nonetheless the majority of transactions in securities run only on the guinea pig Stock win over. The Bombay stock Exchange is the second largest contributor in the over all pie of total transactions. However its contribution is restricted to 5 to 7 percent only. thither are three types of instruments that are traded on National Stock Exchange namely equities, derivatives and debt instruments. This article attempts to explain the part elusive in trading and settlement of equities. Before understanding the procedure of trading and settlement, it is important to have an overview of changes that have taken drive in Indian securities market in last ten dollar bill years.

Three most noticeable changes which have taken emplacement are 1) Dematerialisation , 2) Introduction of screen based trading and 3) cut back of trading and settlement cycles. The Depositories Act  was passed by the parliament in 1995 and this paved the way for conversion of physical securities into electronic. With establishment of National Stock Exchange, there was a significant change in the level of technology used for the operation of stock market. It take to introduction of Screen Based Trading thereby removing the anterior system of open outcry where prices of securities were quoted by symbols. Now all the transactions happen on computer which is spread crossways country and connected to National Stock Exchange with VSAT. These two factors combined together helped in reducing the trading and... If you want to get a full essay, order it on our website: Ordercustompaper.com

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