Paper Contents
Abstract
Stock market refers to a marketplace where investors can buy and sell stock. This is an entity which provides trading facilities for stockbrokers and traders to trade stocks and other securities. The capital market has two independent and inseparable segment, the new issuers (the primary market) and (Secondary) market. The primary market is used by issuers for raising fresh capital from the investor by making initial public offer or right issues or offer for sale of equity or Debt; On the other hand, the secondary market provides liquidity to these instruments, through trading and settlement on the stock exchange.In earlier times buyers and sellers used to Assemble at the stock exchange to make the transaction. Gradually manual and paper-based settlement systems came. But under this system; the clearance and settlement of the transaction take place only with use of the Paperwork. The system of physical delivery of scrip's poses many problems for the purchaser as well as the seller in the form of delayed Settlement, long settlement period, high level of failed trade, high cost of transaction, bad deliveries, etc. In some case, transfer take much longer time than two months as stipulated in section 113 of companies act ,1956 or section 22A of the securities contract (Regulation) Act ,1956. Moreover, a large number of Transaction end up as bad deliveries due to faculty compliances of paperwork, mismatch of signature on transfer deeds or other procedural reason.
Copyright
Copyright © 2023 Purnima Sarkar. This is an open access article distributed under the Creative Commons Attribution License.
