The general statement or information regarding the manner, in which orders are accepted, processed, settled and cleared via internet.
The following steps are to be followed in this regard;
Step 1: Order Acceptance
The orders for buying and selling of securities are accepted through the following modes;
Â· Orders given through recorded local telephone lines.
Â· Orders given on the printed order slip.
Â· Orders placed through online trading system.
Step 2: Order Processed
The buying and selling orders of securities are processed T+2 and spot trading systems. These systems automatically match buy and sell orders. These systems are used for both market and limit orders. These systems can match the price offer and ask with quantity demanded and available.
Step 3: Settlement and Clearance
Settlement and clearance are done through National Clearing & Settlement System (NCPL) and Central Depository Company (CDC). CDS is an electronic book entry system to record and transfer securities. And NCCPL is principally engaged in the business of clearing and settlement of securities through the National Clearing & Settlement System (NCSS) with its technologically advanced features such as automated pay & collect has introduced extraordinary transparency & expediency in the Clearing process.