0At present Indian two stock exchanges, BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) are life time high. BSE and NSE are two stock exchanges where stock trades are happening. BSE is the oldest stock exchange existence since 1875. NSE was founded in 1992 and started trading in 1994.
Generally retail investor/trader would take position only in the NSE. However, both exchanges follow the same trading mechanism, trading hours, settlement process, etc. BSE had about 4,700 listed firms, whereas the NSE had about 1,200. Out of all the listed firms on the BSE, only about 500 firms constitute more than 90% of its market capitalization; the rest of the crowd consists of highly liquid shares.
Almost all the significant firms of India are listed on both the exchanges. NSE enjoys a dominant share in spot trading, with about 70% of the market share.
Trading at both the exchanges takes place through an open electronic limit order book, in which order matching is done by the trading computer. There are no market makers or specialists and the entire process is order-driven, which means that market orders placed by investors are automatically matched with the best limit orders. As a result, buyers and sellers remain anonymous. The advantage of an order driven market is that it brings more transparency, by displaying all buy and sell orders in the trading system. However, in the absence of market makers, there is no guarantee that orders will be executed.
All orders in the trading system need to be placed through brokers, many of which provide online trading facility to retail customers. Institutional investors can also take advantage of the direct market access (DMA) option, in which they use trading terminals provided by brokers for placing orders directly into the stock market trading system.
Stock Trading:
For trading in stock market, first you should have a trading and demat account. Authorised stock brokerage firms would help for opening the trading and demat account in BSE/NSE.
How settlement happens?
Equity spot markets follow a T+2 rolling settlement. This means that any trade taking place on Monday, gets settled by Wednesday. All trading on stock exchanges takes place between 9:15 am and 3:30 pm, Indian Standard Time (+ 5.5 hours GMT), Monday through Friday. When trade takes place, brokerage firm would send the contract note EOD. T+2 settlement is applicable only if you are taking positional trade. It is not applicable for Intraday trading.
Any charges for opening trading and demat account?
Most of the broker firm would offer free trading account and free demat account for 1st yerar. 2nd year onwards brokerage firms would charges around Rs.399 to Rs.1499 depending upon the firm. If your opening demat account with BSDA (Basic Service Demat Account) then no yearly charges
