Identify the correct sequence of trading & settlement procedure:

(A) The investor has to sign a broker client agreement.
(B) The investor has to open a 'Demat Account'.
(C) An order confirmation slip is issued to the investor by the broker.
(D) The broker will then go online and connect to the main stock exchange.

Choose the correct answer from the options given below:

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

The correct answer is Option (1) → (A), (B), (C), (D).

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

(A) The investor has to sign a broker client agreement.- 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.

(B) The investor has to open a '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.

(C) An order confirmation slip is issued to the investor by the broker.- 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.

(D) The broker will then go online and connect to the main stock exchange.- The broker then will go on-line and connect to the main stock exchange and match the share and best price available.