Question

Give an overview about the older and the current trading procedures.

Answer 1

• Before the electronic system of trading came, share brokers used to gather in the stock exchange of India at a fixed time.
• They used to conduct transactions on the floor through outcry and with the different signs of hands.
• Now, online screen based electronic trading has come into existence in place of old traditional system.
• All the stock exchanges of India now allow only online trade.
• National Stock Exchange (NSE) and over-the-counter exchange have adopted screen based online trading system right from their inception.
• Bombay Stock Exchange (BSE) and National Stock Exchange have introduced fully self-automated screen based trading system all over the nation.
• The screen based trading system of National Stock Exchange is known as NEAT (National Exchange for Automated Trading). Screen based trading system of Bombay Stock Exchange is known as BOLT i.e. BSE Online Trading.
• Due to the internet based trading services of these exchanges, investors can buy and sell their securities online.