Trading of shares in a stock exchange takes place through Registered Stockbrokers, Transfer Agent etc. Buyer gets in touch with a Broker, and gives him all the details of shares he wants to buy. Then the broker strikes a requisite deal and receives share certificate, and transfer form.All the traders are connected to exchange only through certified brokers. And it is brokers responsibility to check that the orders are placed with proper depts in traders’s account. Exchange will take from brokers deposit if any misplaced orders from their client, to solve the settlement with counter party.