NSE provides its customers with a fully automated screen based trading system known as NEAT system, in which a member can punch into the computer quantities of securities and the prices at which he likes to transact and the transaction is executed as soon as it finds a matching sale or buy order from a counter party.
It allows faster incorporation of price sensitive information into prevailing prices, thus increasing the informational efficiency of markets. The stocks are hold in a demutualised format helping in fast, transparent and efficient preservation and transactions. Dematerialization or "Demat" is a process whereby your securities like shares, debentures etc, are converted into electronic data and stored in computers by a Depository.
It is safe, secure and convenient buying, selling and transacting stocks without suffering endless paperwork and delays. You can convert your securities to electronic format with a Demat Account.
Welcome Login to your account. Request a call back. We're Listening Open an account online. Open an online Mutual Fund account. Open a demo account. The trader workstations are connected directly to the backend server, which acts as a communication server and a Central Trading Engine CTE.
Other services like information dissemination, index computation, and position monitoring are also provided by the system. Access to market related information through the trader workstations is essential for the market participants to act on real-time basis and take immediate decisions BOLT has been interfaced with various information vendors like Bloomberg, Bridge, and Reuters. Market information is fed to news agencies in real time It makes the trade efficient, transparent and time saving.
NSE Trading System NSE provides its customers with a fully automated screen based trading system known as NEAT system, in which a member can punch into the computer quantities of securities and the prices at which he likes to transact and the transaction is executed as soon as it finds a matching sale or buy order from a counter party.
Understanding the Depository System The erstwhile settlement system on Indian stock exchanges was also inefficient and increased risk, due to the time that elapsed before trades were settled. The transfer was by physical movement of papers. There had to be a physical delivery of securities -a process fraught with delays and resultant risks.
The second aspect of the settlement relates to transfer of shares in favour of the purchaser by the company. The system of transfer of ownership was grossly inefficient as every transfer involves physical movement of paper securities to the issuer for registration, with the change of ownership being evidenced by an endorsement on the security certificate. In many cases the process of transfer would take much longer than the two months stipulated in the Companies Act, and a significant proportion of transactions would end up as bad delivery due to faulty compliance of paper work.
Theft, forgery, mutilation of certificates and other irregularities were rampant. In addition, the issuer has the right to refuse the transfer of a security. All this added to costs and delays in settlement, restricted liquidity and made investor grievance redressal time consuming and, at times, intractable.
To obviate these problems, the Depositories Act, was passed. It provides for the establishment of depositories in securities with the objective of ensuring free transferability of securities with speed, accuracy and security.
It does so by a making securities of public limited companies freely transferable, subject to certain exceptions; b dematerializing the securities in the depository mode; and c providing for maintenance of ownership records in a book entry form. In order to streamline both the stages of settlement process, the Act envisages transfer ownership of securities electronically by book entry without making the securities move from person to person.
The Act has made the securities of all public limited companies freely transferable, restricting the company's right to use discretion in effecting the transfer of securities, and the transfer deed and other procedural requirements under the Companies Act have been dispensed with. This account settlement period, if it is long leads to several price distortions and allows for market manipulation. It increases the chances of speculation resulting in volatility, which hurts the small investors.
With the application of IT in the securities market - screen-based trading and trading through the Internet - it has been possible to reduce this settlement period. There are many advantages of holding a demat account. A few important ones' are as below.
Shorter settlements thereby enhancing liquidity No stamp duty on transfer of securities held in demat form. No concept of Market Lots. Change of name, address, dividend mandate, registration of power of attorney, transmission etc. A few features of a Demat account are: Dematerialization of Securities Settlement of Securities traded on the exchange as well as off market transactions Pledging and Hypothecation of Dematerialized Securities Electronic credit in public issue Receipt of non-cash benefits in electronic form.
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