The investors’ decisions are changing largely in India today with the advent of accessibility to the online trading platforms and the possibilities of earning greater returns. However, people hesitate to take a step forward due to the lack of adequate knowledge on share market investments. Following is a brief analysis of the Indian Share Market for Beginners to seek potential information and explore the best opportunities that can pave way for them to achieve smart returns.
Stock Exchanges in India
It is already known to the masses that the two major stock exchanges in India NSE and BSE are the prime destinations where the maximum of stock market trading functionalities are executed. The prime companies doing successful business in India have their firms listed on both of these exchanges.
Trading Methodologies
Both these exchanges follow the order driven process in executing daily trading operations. The entire process is electronically operated on an automated electronic system. Upon receiving the request orders from the investors, the order matching process is carried out on the trading computer to find if the orders are matching the best limit orders. The open electronic limit order book is used for trading at these exchanges.
The orders are placed through brokers often offering user-friendly online platform for placing the orders. Choosing the online trading website is also a matter of understanding, your convenience with the trading tools, the swift performance, speed and suitable accessible features.
Trading Hours and Settlements in India
The T+2 rolling settlement is generally followed for the equity spot markets. Hence, if a trade is initiated on Monday it will be settled by Wednesday. The trading practices are executed during the trading hours 9:55 am- 3:30 pm (Monday to Friday) as per Indian Standard Time. Every exchange has a clearing house operating as the central counter party to deliver the shares in dematerialized form assuming all the risks associated with the settlements.
Market Regulations in India
The stock market regulations, development, operations and supervision are sole responsibility of the Securities and Exchange Board of India (SEBI). All market operation rules and laws are imposed by the concerned authority. This is an independent autonomous body having authority to impose penalties or even assort stringent measures in the advent of finding a breach of conduct.
Wrapping up the synopsis of the Indian Share Market for Beginners it can be concluded that the developing markets like India, already foresee the bandwagon of rapid growth for future development. At present, just a low rate of the savings of Indian families are put at stake for domestic share market investments, yet the annual GDP growth rate of 7-8% and a stable budgetary business sector, we may see more cash involved in the race. Possibly, it is the best time for foreign investors to accord genuine consideration to joining the India temporary fad.
