Mutual fund investment can be quite fruitful, — particularly if you’re seeking a straightforward yet diversified method of investing. A mutual fund is a type of financial vehicle that collects money from many participants and then invests it on their behalf in a variety of assets and investment alternatives. You get a particular number of securities in a mutual fund when you invest in it. Let’s look at some of the major advantages of hdfc mutual funds that make them the best option for investors: –

1. LIQUIDITY– How readily an asset can be converted into cash is called its liquidity. Imagine having an emergency and needing money, but not having enough in your bank. Real estate cannot be sold or loans cannot be obtained immediately. However, you have the option to immediately withdraw your money from mutual funds. When you require quick access to cash, mutual fund investments are well known for being highly liquid assets.
   
2. SPREAD YOUR INVESTMENT RISK– Purchasing shares in hdfc balanced advantage fund is a simple way to spread your investment risk across a variety of assets and securities, including gold, debt, and equity. By diversifying, one asset class’s risk is offset by the risk of the other asset classes. Other investments in the portfolio might not be affected and might even improve in value if the value of one investment falls. One of the most notable benefits of investing in mutual funds is risk diversification.
   
3. EXPERT MANAGEMENT– The investors lack the time, expertise, and resources needed to conduct their research and buy specific stocks or bonds. Professional full-time money managers who have the knowledge, experience, and resources to actively buy, sell, and monitor investments are in charge of running a mutual fund. To achieve the goals of the plan, a fund manager regularly examines holdings and revamps the portfolio as necessary. One of the most significant benefits of a mutual fund is the portfolio management provided by qualified fund managers.
   
4. ACCESSIBILITY AND SIMPLICITY– Mutual fund investing is considerably easier than stock market investing, which can be a complex process. You only need to walk into a bank or other financial institution to promptly have a mutual fund account set up for you. A mutual fund account can be opened from the convenience of your home. Using online accounts or even mobile applications, you can begin investing when your KYC documents have been validated.
    
5. REDUCED COSTS– Many investors contribute money to a mutual fund, which is subsequently utilised to buy securities. The savings are transferred to the investors in the form of lower Mutual Fund investment expenses. Additionally, the price for Asset Management Services is reduced and split equally among all of the fund’s investors.

Over the past two to three decades, mutual funds have advanced significantly in India. Mutual funds are currently one of the most widely used financial products for regular investors. Mutual funds provide a broad range of investment options to suit most investment objectives and risk tolerances. 

Despite the advantages, mutual funds are exposed to market dangers, thus before making any investments, you should always thoroughly read the offer materials.

The stock market provides an avenue for everyday investors to make money and turn a profit.

The stock market is a complex system and requires a great deal of knowledge and understanding to be successful. Here, we will discuss the stock market basics, the different types of investments, the risks associated with investing, and strategies for success.

By the end of this guide, you should have a firm understanding of the stock market and you can also invest in a gold rate today and be equipped with the tools to make successful investments.

The stock market is a complex system involving the buying and selling of publicly traded company shares. The stock market can be intimidating for beginner investors. Still, with a proper understanding of the system and available resources, it can be a great way to turn a profit. To understand the stock market, it is important to understand some key terms such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs).

Stocks are shares of ownership in a company and are bought and sold on the stock market. They represent a portion of the company’s value, and when the value increases, so does the value of the stock. Bonds are types of debt that are used to finance companies or governments. When you invest in a bond, you essentially lend money to the issuer, who will pay you back once the bond matures.

Mutual funds and ETFs are collective investments, meaning they are made of many different investments. Mutual funds are managed by a professional fund manager, while ETFs are passively managed, meaning they track an index such as the S&P 500.

Types of Stock Market Investments

Now that we have a basic understanding of key terms related to the stock market, let’s discuss the types of investments available. The most common type of investment is the “long-term” investment, meaning that you purchase a stock and hold it for a longer period of time. This type of investment is typically used for retirement savings and can provide a steady stream of income. Another type of investment is the “short-term” investment.

This is a highly speculative type of investment where you purchase a stock and then sell it quickly in order to turn a profit. This style of investing is often referred to as “day trading” and is not suitable for everyone due to the increased risk.

Other types of investments include value investing, dividend investing, and growth investing. Value investing involves buying stocks that are undervalued and then selling them when their value has increased. Dividend investing involves investing in stocks that pay consistent dividends to their shareholders. Finally, growth investing involves investing in companies that have a strong potential for growth.

Risks of Investing in the Stock Market

Investing in the stock market inherently carries a degree of risk. This risk can be impacted by the type of investment you make and the strategy you employ. It is important to understand that stocks are volatile, meaning that their value can change quickly and dramatically. This means that you could potentially lose money if the value of the stock decreases, even if you have held it for a long period of time.

Other risks include inflation risk, interest rate risk, and market risk. Inflation risk is the risk that the value of your investments will decrease due to inflation. Interest rate risk is the risk that the value of your investments will decrease due to changes in interest rates. Finally, market risk is the risk that the entire stock market could suffer losses due to economic or political events.

Strategies for Success

In order to be successful in the stock market, it is important to employ a sound strategy. One of the most popular strategies is the “buy-and-hold” strategy. This involves investing in stocks that have strong fundamentals and then holding them for a long period of time. Another strategy is the “value investing” strategy, where you purchase stocks that appear to be undervalued in the market. Finally, the “growth investing” strategy involves investing in stocks that have the potential for strong growth.

It is also important to diversify your investments in order to mitigate the risks associated with investing. Diversifying means having a variety of investments in different sectors, industries, and asset classes. For example, if you are investing in stocks, you should have some in technology, healthcare, and energy. Additionally, it is important to have some investments in bonds, mutual funds, and ETFs in order to diversify even further.

Conclusion

The stock market can be an intimidating and complex system, but with a basic understanding of how it works and the strategies that are available, it can be a great way to invest.

In this guide, we discussed the basics of the stock market, the different types of investments, the risks associated with investing, and strategies for success. With the knowledge gained from this guide, you should now have the tools necessary to succeed in the stock market.

Despite the skyrocketing popularity associated with the stocks; several people are still hesitant about investing in them. It is very much important for people to note down that this is the perfect opportunity for the diversification of their portfolio beyond the fixed deposit as well as gold and mutual funds. This particular option will be definitely helpful in providing people with significant returns in the long run which is the main reason that investing in stocks will be very much successful in maximising the investments. Following is some of the basic benefits of investing in stocks after the analysis of the cdsl share price:

1. Better and long-term returns: Introduction of the investments in the world of the stock market will be definitely helpful in providing people with a good understanding of things and the further best part is that this particular system will be helpful in providing people with analysis of the historical returns. In this particular system, people will be able to enjoy the best possible returns in the long run and the further best part is that positive results will be there if enough time has been given to the investment in this particular area.
2. Dividend income: The dividend which has to be distributed by the company as a part of the profit will be the best possible source of income for the shareholders and the further best part is that majority of the companies will be helpful in providing people with share into the profit in the form of a dividend. Dividends received from the ownership of stocks will be definitely helpful in providing people with a good number of benefits and the further best part is that volatility in the stock prices will be significantly dealt with without any kind of problem. The consistent and growing market in this particular area will be a clear-cut indicator of the stability of the business both in terms of growth and earnings. Hence, augmenting the portfolio values in this particular case will be definitely done without any kind of problem in the whole process.
3. Diversification benefits: The stock market very well provide people with easy access to multiple financial instruments in the form of mutual funds, derivatives, shares, bonds and other associated things so that people will be able to make the best investments as per the analysis of risk appetite and financial goals. Investment in this particular area will be helpful in reducing the portfolio concentration and the further best part is that flexibility will be sorted out very easily. Very well-diversified portfolio will be helpful in building wealth and further make sure that people will be able to deal with the stocks very successfully throughout the process. In this particular case, people will be definitely able to give a great boost to the liquidity factor without any kind of problem.

In addition to the above-mentioned points, people will be definitely able to enjoy the element of transparency with companies like 5paisa so that investment decisions are very much effectively made with proper analysis of risk management.

Focusing on financial planning in the life of individuals is definitely important even more than earning money. Introduction of tools like the PPF calculator in this particular case is definitely advisable for people so that everyone will be able to make the right decision that ultimately will be able to enjoy the guarantee of returns. Having a good understanding of the online tools in this particular area is a great approach because it will be helpful in resolving the queries related to the calculation of returns and also help in making sure that people become clear about the interest earnings from the public provident fund investments. Whenever people will be using the option ppf calculator then definitely they will be having access to accurate insights into the industry so that things are sorted out very easily and there is no chance of any kind of problem.

Some of the basic benefits of using the PPF calculator have been very well explained as follows:

1. A clear picture of the growth: Whenever the concerned people will be using the option of the PPF calculator, the interest income will be significantly increased and the best part is that everybody will be getting a clear picture of the growth without any kind of problem. This particular option very well helps in making sure that everybody will be at the forefront in terms of making accurate decisions without any doubt.
   
2. Figuring out things very easily: If people will be using the option of a PPF calculator then definitely they will be able to figure out the amount of investment in the whole process, annually monthly and weekly without any kind of doubt so that they will be able to reach the target corpus with proper planning.
   
3. Very easy to use: The option of PPF calculator is very easy to be used without any kind of doubt and the best part is that everybody will be able to get the additional systems in the whole process without any kind of problem. Whenever people will be using the option of a PPF calculator then the element of manual calculation will be significantly eliminated which will be helpful in providing people with a good number of benefits in the long run. Since this particular option is automatic the risk of error will be the bare minimum throughout the process.
   
4. Graphical results: Using the option of a PPF calculator is a great idea for people because it will be helpful in providing the representation of the results graphically which will be making sure that things are easy to be understood without any kind of doubt.
   
5. Investment planning: Planning the financial goals will become very much easy in this particular case so that people will be able to enjoy the best possible rate of return without any kind of problem. Another very important advantage of getting things done is that everybody will be getting a clear-cut idea of the expected returns without any kind of issues.
   

Hence, using the option of a PPF calculator from 5paisa is definitely a great idea so that people will be able to enjoy the power of compounding through PPF along with accurate insights at every step.

Initial public offerings (IPO) allotment has been a topic of keen interest for investors for a long time. It is of the utmost importance to understand the IPO allotment process and its implications. The following article explores the top 10 interesting facts related to IPO allotment. It provides an overview of the entire IPO allotment process, what some of the different types of allotment scenarios are, and how they all work. The article will also look at some details related to the upcoming IPO that is particularly important to investors.

An IPO allotment is the process through which a company issues shares during an initial public offering. It includes all the steps from submitting an application to the allotment and refunding unsuccessful bids. The issue price is determined by the company and is subject to change depending on the demand for the securities. The allotment process is an integral part of the overall IPO process. It determines how much money the company can raise in an offering and what investors participate in.

Different Types of Allotment Scenarios

Two primary types of allotment scenarios can occur when a company undertakes an IPO. The first is a fixed price scenario where the company sets a fixed price for the offered shares. This means that all investors who participate in the offering will receive the same price per share. The second is a competitive bidding scenario, where investors can bid on the number of shares they want to purchase. The company then determines which bids will be successful and how much each successful bidder will be allotted.

Competitive and Fixed Price Bidding

In a competitive bidding scenario, the price of the shares is determined by the market and the investor’s appetite for the stock. The company issues shares at the highest price, which still results in overall demand being met. This method helps companies to get the best return from their investments. In a fixed price scenario, the company sets a fixed price for the offering, and all investors participating in the offering receive the same price per share.

Pricing Impact on Allotment

The pricing of the shares has a significant impact on the size of the allotment. If the price per share is too low, the allotment size may be too large. This can result in unsold shares and a lack of liquidity. Conversely, if the price is set too high, demand may not be met, and the company may not be able to raise the capital it needs.

Lot Allotment

In a fixed-price offering, a lot allotment process is used to determine how many shares each investor will receive. Generally, the lots are allocated on a first-come, first-served basis. Investors who bid for more than the maximum lot size allowed for that particular offering will have their bids rejected. The size of the offering and the demand for the shares determines the lot size.

Price Band Mechanism

The price band mechanism is used in competitive bidding scenarios to allow investors to submit bids within a certain range. The price band helps to ensure that investors do not submit too-low bids, as this could result in an overall underpricing of the shares. The price band also helps to protect the company from any potential over-subscription of the offering by allowing the company to set a minimum price for the offering. This gives the company more control over how much money it raises in the offering.

Free-From Pricing

Free-from pricing is a pricing method that allows the investors to bid a price independent of the share’s market price. In this method, the investors submit their bids without knowing the market price and the bids are put into a lottery where a predetermined number of bids are selected. This method helps to ensure that the investors do not submit too low of bids to increase their chances of success.

Verification of Allotted Shares

Once the allotment process is complete, the company will verify the allotted shares. This is done to make sure that the investors who have been allotted the shares are able to pay for them. The company will also verify that the price at which the shares have been allotted is satisfactory to the investors.

Allotment Negative Considerations

When allotting shares in an IPO, there are some negative considerations that must be taken into account. If the allotment is not done properly, it could lead to a lack of liquidity, unsold shares, underpricing or overpricing, and dissatisfied investors. Therefore, it is important for the company to be aware of the potential issues that could arise from an IPO allotment before the process begins.

Conclusion

IPO allotment is an important part of the overall IPO process. It determines how much money a company can raise in an offering and which investors receive the allotted shares. Understanding the intricacies of the IPO allotment process is crucial for investors, as it can lead to better returns and fewer issues. This article provides a comprehensive overview of the top interesting facts about IPO allotment, from the types of allotment scenarios available to the potential negative considerations that investors must be aware of.

Investing in the stock market is an appealing option for many people looking to grow their wealth over time. By taking the right steps, there is potential to create a significant return over the long term. This article explores why investors should consider tata motors share as one of their financial investments.

Overview of Investing in the Stock Market

The stock market can be an attractive investment option for many people, comprising a range of different securities, all of which can be purchased and traded for a profit. When selecting stocks for purchase, it is important to consider the company’s financial condition and prospects and the amount of risk associated with the investment. Stock prices fluctuate over time, so it’s important to have a good understanding of the dynamics of the market and when to buy and sell stocks.

Advantages of Investing in Stocks

The stock market can offer investors several advantages, including long-term growth potential, diversification of assets, and the convenience of being able to purchase and sell stocks online. In addition, investment in the stock market can provide investors access to some of the world’s most successful and profitable companies. As such, it is unsurprising that the stock market can provide investors with several benefits over more traditional investments such as CDs and bonds.

Strategies for Investing in the Stock Market

There are a variety of approaches to investing in the stock market. These include building a portfolio that consists primarily of large-cap stocks, focusing on sector-specific investments, utilizing a buy-and-hold strategy, or trading frequently. No matter the chosen strategy, it is important to ensure that the portfolio is diversified and appropriately balanced to reduce risk and increase potential returns. In addition, investors should consider seeking the advice of a financial expert to ensure that their portfolio is appropriate for their unique needs and goals.

Finding Professional Advice

Investors should always consult a financial professional to ensure that their investments suit their individual needs and financial situation. A financial advisor can provide insight and guidance into strategies that can help maximize returns on investments in the stock market. Additionally, professional guidance can help ensure that investments are diversified correctly and well-positioned for long-term success.

Access to Expertise and Support

When investing in the stock market, investors have access to the expertise and support of many professionals. Many stockbrokers offer a range of services to support investors, which can be used to gain access to real-time information and better analyze trends. Moreover, the presence of professional advisors can help investors make informed decisions and build a portfolio that meets their individual goals.

Accessibility and Portability

One of the biggest benefits of investing in the stock market is its accessibility. Investors can access their investments at any time from anywhere. All that is required is an internet connection and a computer or smartphone. This ensures investors are always up to date with the latest market movements. Additionally, investors can transfer their investments in stock markets to another broker or institution easily and quickly.

Summary

Investing in the stock market can be a profitable way to create long-term wealth. Investors can create a portfolio that will benefit them in the long term by considering factors such as company performance, type of stocks, and the appropriate strategy. With the help of a financial advisor, investors can craft a portfolio tailored to their unique financial objectives. As such, the stock market can be attractive for people looking to maximize their potential financial return.

A newbie may believe that the stock market is a location where investments could provide quick returns and where they can quickly gain vast amounts of money. However, the truth is otherwise. Making money in the stock market is difficult. You need to have strong market knowledge, patience, and a long-term investing perspective. It would help if you only used stock market advice from a dependable financial partner, & your investing ideas ought to be in line with the financial objectives and risk tolerance.

Investors are drawn to the stock market by its quick and big profits. But to avoid losses, several essential guidelines must be followed.

Select solid, fundamental companies

Choose firms with solid foundations instead than penny stocks when investing. This assures the firms’ ability to resist changes in the stock market. These also provide higher liquidity for investors and improved long-term profits for investors.

Conduct due diligence by researching.

Many individuals shy away from doing their research because they don’t want to put out the work or because they need to know the correct technical terms. To make the right choices, however, investors must make the time to examine the company and the stock market. Investors will be better able to predict the future if they do their homework before investing in a firm.

Keep Your Greed Side.

The stock markets are exceedingly unpredictable and volatile. For novice traders, it is almost impossible since even experienced traders need help to predict market moves. Before investing, investors are recommended to set their exit and entry prices for ideal share prices. Additionally, they must terminate their holdings and record profits after the goals are met. Never becoming greedy in the stock market with the hope that market circumstances would improve for one’s holdings is crucial.

Utilize Credible Intermediaries

Dealing with reputable mediators will be advantageous to the investor. Such intermediaries provide several value-added services and a secure and safe trading platform. They frequently offer their customer’s research reports and other beneficial data regarding the stock market. They also provide exceptional customer care to guarantee that any problems experienced by account users are quickly and effectively fixed.

Refrain from Being Seduced by Sector Performances

Experienced and skilled traders possess preferences for specific industries at different times. They base their choices on a variety of economic & related variables. Investors should be careful to avoid getting overawed by these sector biases. They must keep in mind that only some firms in the industry are suitable investments. The most prominent firm in a particular sector is sometimes the finest. Investors must review the fundamentals of the stock market, investigate the industry, and do due diligence on all participants.

It’s Not Always Beneficial to Invest in Cheap Stocks

Many investors find low-priced equities, sometimes referred to as penny stocks, to be alluring. The primary justification for doing so is these stocks’ enormous potential for profits. The hazards of investing in penny stocks are considerable, however. Investors are urged to keep in mind that the firm’s shares are cheap due to its poor performance. Therefore, it is wise to stay away from them.

Investors may better understand how to trade on the stock market by heeding this advice. Traders must maintain vigilance and avoid falling for exaggerated promises or marketing tricks.

Have you often heard about just a friend’s friend, cousin, or co-worker who has made a significant amount of Investing in the Stock Market, leading you to believe it would be a brilliant idea to do the same? However, you often consider investing’s drawbacks, such as risk and the possibility of time commitment, which pushes this concept to the side. But let me inform you that there are several advantages to diversifying one’s financial holdings beyond term deposits, golds, or mutual funds. A click now allows you to purchase or sell stocks, making investing considerably simpler due to technological advancement. Now that you may all buy stocks, everyone can invest in markets and gain from them. Invest your money as you unwind and enjoy!

The advantages of investing in equities markets are as follows.

Free of hassle trading

There is no longer a complicated technique involved in purchasing and selling stocks. Trading is a single click away only with your smartphone. Since it’s no longer a time-consuming and exhausting procedure, you may frequently check your stock market investments and trading in addition to your full-time work.

Inflation prevention

Although securing the future is the primary goal of investing, we should sometimes assess the inflation rate. The profits become null if inflation and the rate of investment return are comparable. Investment returns outpace inflation in theory. Inflation has never kept pace with stock markets and benchmark indexes, such as India’s Nifty & Sensex. Markets have seen annual returns of around 10 per cent, for example, if inflation is between 3 and 4 per cent.

Liquidity

Stocks are considered liquid assets, meaning that they may be quickly turned into cash and that there are always many purchasers for them. Not all assets can be sold quickly; for example, certain assets, like real estate, are hard to sell. The property investment may only pay off for a few months. But it is much simpler when it comes to stocks. A single stock may have many sellers and buyers because of the daily average number of transactions on the NSE and the BSE.

The Booming Economy Has Its Benefits

The stock market constantly influences an expanding economy & responds to all economic growth indices, including GDP, rising prices, corporate profits, and others. A strong economy may be directly benefited from by stock market investors, and the worth of an investment rises in direct proportion with economic expansion. When a country’s economy is expanding, corporate profits rise, raising each person’s average earnings. Sales increase as a result of this having an impact on customer demand. As a result, the sail share price of the company’s stock rises, increasing the value of the investments in it.

A Framework That Is Well-Regulated and Open

The Stock Exchanges Board of India oversees the Indian financial markets (SEBI). Stock exchange regulation, growth, and shareholder rights protection are within SEBI’s purview. In other words, a regulatory framework established by SEBI, which aids in lowering risks of corporate fraud, ensures that investors’ interests are very good when they invest in financial goods on the share market.

Conclusion

It would help if you proactively considered stock market investments and financial portfolio diversification to beat inflation. Additionally, you can choose the businesses you want to invest in, which will act as a crucial liquidity buffer.

The stock market has been very successful in terms of creating an enormous amount of wealth over the last few years and ultimately this is one of the major reasons behind its popularity. The stock market is definitely having the best possible potential of providing people with significant returns on the investment over a long span of time which makes it a very lucrative option for investments. 

Some of the basic reasons for investing in the world of the stock market after considering the ncc share price have been very well explained as follows:

1. Potential of getting very high returns: The primary reason why people are interested to invest in the world stock market is that it comes with the potential of very high returns in comparison to alternatives like bank certificates, deposit gold, treasury bonds and other associated things. This particular option very well provides people with lucrative return opportunities which makes it quite popular.
   
2. Protecting the wealth from inflation: Another very important advantage of focusing on investments in the world of the stock market is that people will be able to protect their wealth from inflation very easily and further people will be able to enjoy double-digit annual returns from stocks. Basically, this is the best opportunity of hedging against inflation without any kind of problem throughout the process.
   
3. The ability to earn very regular passive income: Most of the companies which are paying dividends or a portion of the profits to investors are very famous in the whole market which is the main reason that majority of people are interested in entering the stock market so that they can have easy access to the regular passive income. This particular income will be definitely helpful in supplementing the retirement income or the paycheque of investors which makes it one of the major motivations to invest in this particular area.
   
4. Liquidity factor: The majority of the stocks can be traded publicly on the Stock exchange which very well highlights the ease of purchasing and selling it without any kind of problem throughout the process. This particular option is a very liquid win in comparison to other available options for example real estate investment and other associated things. In the overall business people will be definitely able to get the best possible liquid affected without any kind of problem throughout the process.
   
5. Diversification: People can easily build a diversified portfolio in this particular area which makes it very much popular and the best part is that the overall investment portfolio will be sorted out very easily. Everyone will be able to enjoy easy access to multiple benefits without any kind of problem and the best part is that people will be able to enjoy the ability to start small in this particular area.
   

In addition to the above-mentioned points, everyone will also be getting the pride of ownership of a stake in a company which makes this particular option very much motivating and lucrative for individuals.

The stock market either amplifies your investments or might pauperize your funds. However, smart strategies and analysis can enhance your investment portfolio. Investors can invest in the potential shares from the unlisted share price list on the platform Unlisted Assets. But, the investors earn money from two primary ways in the stock market:

• Gain from Capital Growth

Shares’ investment provides an opportunity to make money from capital appreciation. Simply, if an investor invests the money for the long-term, it brings significant gains on the principal amount when the prices of the shares go up. Probably, the share prices can rise up to 100% or more. However, capital appreciation is not guaranteed. There always lies the risk that prices remain lower than buying price.

• Dividend Gains

Keeping capital gains aside, investors can find a permanent source of income in the form of dividends. The respective companies dispense partial or complete profitable dividends to their shareholders and utilize the remaining funds for the expansion. 

The dividend is distributed as per the no. of shares. The more the no. of shares, the more will be the profit of the stakeholders.

Functioning of Share Market

• Understanding the Exchange Platform 

A stock exchange is precisely a platform that facilitates the trading of financial instruments such as bonds, stocks, and derivatives. SEBI (Stock Exchange Board of India) monitors the activities in the stock exchanges. Interested investors register themselves with SEBI to begin trading in these exchanges. Brokering and the issuance of shares are the included trading activities. 

• Companies’ Listing in the Secondary Market

Companies list their shares on the secondary market through an Initial Public Offer or IPO. Stocks are allotted before listing and the investors who bid for the stocks reap their share of profits based on the number of stakeholders.

• Trading

The secondary market is the marketplace for the transaction of shares to make significant profits. The trading of stocks begins here once the company gets listed. 

• Intermediaries

The high magnitude of the investors makes it difficult to assemble at one specific location. Therefore, to streamline the trading process, stockbrokers and brokerage firms come into the picture. These entities being registered with SEBI link the investors and exchange itself. 

• Proceedings of the Shares

When the traders place an order of the shares, the brokers pass on the order to the exchange and then are matched for a sell order. The exchange of the shares is likely to happen when both the buyers and the sellers agree upon the same price. 

• Settlement

Upon finalization of the pricing, the transaction is confirmed as no default. The stock exchange then facilitates the transferring of ownership of the shares and the process is known as settlement. 

Previously, the settlement time used to take up weeks to materialize things which now takes place in T+2 days. With the digitization of the trading process, the shares reflect in your Demat account within two working days. Investors are subjected to getting involved in underlying market risks.