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Securities Trading and Settlement

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Securities Trading and Settlement
PROJECT REPORT “SECURITIES TRADING AND SETTLEMENT”

Submitted to: Submitted By:
Dr. Sarika (H.O.D) Poonam (7931)
Deptt .Of Commerce M.Com (IInd)
CONTENTS
* Introduction to securities trading and settlement * Traditional Trading Mechanism * Traditional v/s modern trading system * Offline and Online Trading * Settlement system and clearing house * Trading and settlement at Bombay Stock exchange * National stock Exchange * Summary of trading and settlement * Appendix * Bibliography

INTRODUCTION

Securities Trading
Individuals and organizations are always looking for a way to increase revenues. An anticipating concept to do this is to invest in securities. While all securities pose a risk of losing the capital investment, trading in securities increases the chance of profits and losses. There are many factors involved when considering trading securities.

Securities
Securities are equities or debentures of publicly traded companies that are bought and sold through brokerage firms. Securities fluctuate in value and pose a risk to the principal investment.
Trading
* Trading is the purchase or sale of a specific security. It can be either an equity or debenture and is done via a brokerage firm. * Individuals can do trading either through a registered representative (a licensed Financial Industry Regulatory Authority broker) or make trades without a broker through an online brokerage trading firm. * Trading can be done either in a cash account or through a margin account.
Cash accounts require all transactions to be paid for in full by the settlement date three days after the trade execution. Margin accounts allow the investor to borrow money for the


Bibliography: Settlement The settlement cycle on the BSE is Trade plus two days, or T+2, as per a Sebi directive implementing this new cycle from April 1, 2003
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