Trading Process of Listed Public Limited Companies

Introduction
The trading of shares in listed Public Limited Companies takes place on recognized stock exchanges such as the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) in India. These platforms allow for buying and selling of securities by investors in a transparent and regulated environment. The process is governed by SEBI regulations, and transactions are executed through registered brokers. This article outlines the key steps involved in the trading process of listed Public Limited Companies.

Step 1: Opening a Trading and Demat Account
Investors must open a trading account with a SEBI-registered broker and a Demat (Dematerialized) account with a depository participant (e.g., NSDL or CDSL). The Demat account holds shares electronically, while the trading account is used to place buy/sell orders.

Step 2: Placing an Order
Investors place buy or sell orders through their trading platform. Orders may be market orders (executed at current price) or limit orders (executed at a specified price). The broker routes these orders to the stock exchange.

Step 3: Order Matching and Trade Execution
The stock exchange matches buy and sell orders based on price and time priority. Once matched, the trade is executed in real-time, and the details are communicated to both parties.

Step 4: Trade Confirmation and Contract Note
After execution, brokers issue a contract note to the investor, confirming trade details such as quantity, price, brokerage, and applicable charges.

Step 5: Clearing and Settlement
The trade is settled by the clearing corporation (e.g., NSCCL for NSE) on a T+1 basis (trading day + 1 working day). Shares are credited to the buyer’s Demat account, and funds are transferred to the seller’s bank account.

Step 6: Regulatory Oversight
All trades are regulated by SEBI, which ensures investor protection, transparency, and prevention of market manipulation. Brokers and exchanges must comply with strict norms and reporting requirements.

Conclusion
The trading process of listed Public Limited Companies is streamlined and secure, enabling seamless participation by retail and institutional investors. It ensures liquidity, price discovery, and investor access to capital markets under a robust regulatory framework.

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