India is a promising market when it comes to stocks and equity trading. From outside, India may look like a little dot but the truth is that India is a promising market just like any other. If you are thinking of investing in the stock market in India but not sure about how to go about it, this article will give you a brief idea of what it is all about.
The Indian stock market has two main exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The first one was founded in 1875 while the second one was founded in 1994. Both the stock exchanges have the same trading regulations and operate similarly. The thing with the Indian stock market is that all the big firms of the country are listed in both the exchanges.
An open electronic limit order book is used as a trading means in the stock market in India. No market specialists are there and the exchanges run on order to order basis. This kind of market is a wonderful thing as there is a transparency in them that is not seen in other kinds of exchanges. All the selling and buying orders are displayed for all to see and this ensures complete transparency.
The Indian stock market has many brokers in it who are responsible for all the trading that happens in it. These brokers can also provide online trading facilities to people who are interested. People interested in trading can also avail of the DMA option, which means Direct Market Access. This way one can place orders directly into the trading system.
The overall responsibility for the supervision, regulation and development is done by the SEBI or the Securities and Exchange Board of India. The SEBI is an independent authority and was constituted in the year 1992. From then on it has been under the guidance of SEBI that the Indian stock market has come under some sort of regulation. It has tried to instill the best market practices by laying down rules and regulations for the market. The SEBI is instilled with a vast amount of power that allows it to impose restrictions on any breach of trust.
As you can very well see, the Indian stock market is a wonderful institution. The thing with the country is that a lot of people assume that not much is happening over here as far as the finance market is concerned. But the truth is that a lot is actually happening. The Indian stock exchange market is one of the most fast moving of markets in the world and this means that it is highly volatile. Chances of making big money in such a fast moving market are huge. But of course one has to be careful before treading this path.
There are various websites that talk about how you can deal in the Indian stock market. It is a good idea to study this particular market well before venturing into it.
Author-Bio : Shabbir learned the art of making money from the market the hard way, i.e. loosing the hard earned money and then learning it but he don’t want the same process to repeat for others and so he shares how retail investors can learn technical analysis and chart patterns. Check out his collection of free tutorials on Technical Analysis on his blog shabbir.in