Saturday, November 26, 2005

BSE: Introduction


The Bombay Stock Exchange is one of the oldest stock exchanges in Asia. It was started in 1875 as the "Native Share and Stock Broker's Association." The exchange provides an efficient securities market and also upholds the interestes of member brokers. It is important that investors making valuable investments gather necessary information regarding their rights protections provided by Exchange and SEBI (Securities and Exchange Board of India).

I am only going through some of these regulations and the rest is available on BSE website.

(A)Deal with only SEBI registered Brokers / Sub brokers. Detail list of this is available on the BSE website.

(B)Open a DEMAT Account with a well known Depository Participant (DP). It is recomended that the investor opens up a Bank Account with online money transferring facility. Many major banks like ICICI now allow 3-in one Bank, DP and Brokerage account for seamless trading.

(C)Make sure that the Brokerage charge does not exceed 2.5% of the contract Price.