- This topic has 357 replies, 351 voices, and was last updated 2 years, 7 months ago by
.
-
Posts
-
One has to open a DEMAT and trading account with a broker and this broker in turn helps us buy and sell the shares with the exchange, since we cannot transact directly with the exchange it should be through the broker only. SEBI is a regulatory body for the securities of India. All out money transactions has to be carried out through the bank to the broker account and broker account to bank. Government has no direct role in the stock market, but the polices taken by the government can have effect on the stock market.
Government has constituted a regulatory authority for trading public listed shares in the marketplace – the SEBI. It has also initiated the constitution of depositories NSDL & CDSL (owned by many entities) for holding shares in the Demat form. A stock exchange is SEBI authorised market place to trade in shares. A broker is Client facing and connects the Traders to Stock exchanges, and is responsible for his clients’ financial obligations too (w.r.t. trading)
Broker – A Stock broker is a person/Firm registered with stock exchanges BSE/NSE who act as a mediator between trader and Exchange
Stock exchange – Market where Shares/Stocks are traded. BSE and NSE
SEBI – Securities Exchange board of India – Regulatory body to define rules/processes for transparent stock listing and trading
Govt – No role
Bank – May act as stock broker
A trader who wishes to buy stock places a Buy order. another trader who wishes to sell will place sell order.Both orders will be listed in Market window. If the prices match the stock trading will take place. A trader places orders through online trading platform offered by stock broker
Broker is an intermediary or middleman through whom stocks are bought and sold. They are usually registered by SEBI.
An exchange is where stocks can be bought and sold.
SEBI is the Securities Exchange Board of India which regulates the functioning of the exchange.
Government does not affect stock purchasing.
Banks may sometimes act as brokers. Demat accounts require you to have a bank account for trading.
Stocks are traded on NSE and BSE. They are regulated by SEBI.
Broker – They act as intermediatory between NSE/BSE and people who want to buy and sell shares.
Gov – Though they have no direct role in stock market, but their action and policy decision can impact the overall market and sentiment.
Bank – You can avail services through bank in opening your Demat account. They have no role in market.
- You must be logged in to reply to this topic.
