Question
Give an overview about the older and the current trading procedures.

Answer

  • Before the electronic system of trading came, share brokers used to gather in the stock exchange of India at a fixed time.
  • They used to conduct transactions on the floor through outcry and with the different signs of hands.
  • Now, online screen based electronic trading has come into existence in place of old traditional system.
  • All the stock exchanges of India now allow only online trade.
  • National Stock Exchange $(NSE)$ and over-the-counter exchange have adopted screen based online trading system right from their inception.
  • Bombay Stock Exchange $(BSE)$ and National Stock Exchange have introduced fully self-automated screen based trading system all over the nation.
  • The screen based trading system of National Stock Exchange is known as $NEAT ($National Exchange for Automated Trading$).$ Screen based trading system of Bombay Stock Exchange is known as $BOLT$ i.e. $BSE$ Online Trading.
  • Due to the internet based trading services of these exchanges, investors can buy and sell their securities online.

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