Future of Stock Market in India To understand the future of stock market in India, we need to understand how the stock market works. India has two big.

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Future of Stock Market in India To understand the future of stock market in India, we need to understand how the stock market works. India has two big stock exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE); and most of India’s stock trading takes place in these two popular sites. The BSE is doing business since 1875 and the NSE was founded in 1992 and became fully operational in These two stock exchanges follow the same trading mechanism, trading hours, settlement process, etc. The BSE deals with 4,700 listed firms (approx.), whereas the NSE has about 1,200 listed companies. But only about 500 companies, out of all the listed firms on the BSE, constitute more than 90% of its market capitalization; the rest on the list consists of highly illiquid stocks.future of stock market in India

Proprietary Trading Trading Mechanism The open electronic limit order book is used by both exchanges to trade through. The order matching is done by the trading computer. No market makers or specialists are needed to match orders and the entire process is order- driven, which means that market orders placed by investors are automatically matched with the best limit orders. This facilitates privacy and security of both parties as buyers and sellers remain anonymous. This practice brings more transparency, by displaying all buy and sell orders in the trading system. However, in the absence of market makers, there is no guarantee that orders will be executed. Professionals involved with proprietary trading plays a vital role here.proprietary trading

Trading Companies in India Trading companies in IndiaTrading companies in India do business by registering with both exchanges. All orders in the trading system need to be placed through brokers, who may provide online trading facility to retail customers. Proprietary trading companies in India can also take advantage of the direct market access (DMA) option, in which they use trading terminals provided by brokers for placing orders directly into the stock market trading system. The future of stock market in India is promising and will surely bring more security to investors.