Arrange the following in Correct sequence.

(A) Open Demat account

(B) Approach a registered broker and enter into an agreement with him

(C) Execution of order

(D) Placing an order

(E) Settlement of deal

Choose the correct answer from the options given below :

(B), (A), (D), (C), (E)

The correct answer is option (4)- (B), (A), (D), (C), (E).

The following steps are involved in the screen-based trading for buying and selling of securities:

(B) Approach a registered broker and enter into an agreement with him- If an investor wishes to buy or sell any security he has to first approach a registered broker or sub-broker and enter into an agreement with him. The investor has to sign a broker-client agreement and a client registration form before placing an order to buy or sell securities. He has also to provide certain other details and information.

(A) Open Demat account- The investor has to open a ‘demat’ account or ‘beneficial owner’ (BO) account with a depository participant (DP) for holding and transferring securities in the demat form. He will also have to open a bank account for cash transactions in the securities market.

(D) Placing an order- The investor then places an order with the broker to buy or sell shares. Clear instructions have to be given about the number of shares and the price at which the shares should be bought or sold. The broker will then go ahead with the deal at the above mentioned price or the best price available. An order confirmation slip is issued to the investor by the broker.

(C) Execution of order: After placing an order, the broker executes the order on your behalf, leading to the buying or selling of the securities.

(E) Settlement of deal : Following the execution of the order, the settlement process occurs, wherein securities and funds are transferred to complete the trade.