On line Trading In India

Abstract

On line trading in India allows investors to trade on the Internet or the World Wide Web. Mutual funds, commodities, equities, shares and many other investment tools can be traded. There are several companies who are listed on the stock exchange. Only the listed companies have the permission to offer they’re financial as well as derivative instruments for trading.

On line trading systems have become very popular these days. It is a very convenient way of trading financial instruments without having to do those extra paper works. The trading of financial instruments are done on the Internet or the World Wide Web. On line trading in India has also gained prominence over the last couple of years. In India, there are many on line trading venues. The on line trading portals of the BSE or the Bombay Stock Exchange and NSE or the National Stock Exchange are two common examples. The on line trading wings of the above two stock exchanges in the country are:

BOLT or Bombay Stock Exchange On line Trading System

NIBIS or National Stock Exchange Internet Based Information System

Statistics prove that on line trading in India has swelled from 3%(as of 2003-2004) to 16% as of 2006-2007. This figure indicates that this form of trading is very much preferred.

The financial instruments traded On line in India:

The following financial tools may be traded on the World Wide Web. They include:

Trading of commodities

Mutual funds

General Insurance

Life insurance

Equities

Trading of shares

In addition to the ones mentioned above, the on line trading portals also look into matters related to financial planning as well as portfolio management.

The process involved in On Line trading in India:

Registering with a portal on line is essential. The investor also has to abide by the norms (Terms and Conditions) of the company offering the securities. An order is placed with the portal. It may be mentioned in this context, that the trading portals, which are on line are connected to the financial institutions (banks) as well as the exchanges all over the country. There are many websites, which offer expert advice to the investors against a nominal fee. However, one should be very well versed with the process of online trading because a slightest of error may ruin the investment portfolio of the investor. Especially with so much of cyber crime rampant all over the world, one should take expert advice before shelling out the money (be it from the demat account, plastic money or cash).