For years, many retail investors and traders had missed the opportunity to trade on the best prices available due to the pre-programmed trading software of stockbrokers which worked in stock exchange order rather than giving best available prices available on other exchange to execute trades. Regarding this, the market regulator SEBI had already issued guidelines earlier, but the several brokers never paid any attention to them as no ‘no compliance’ action was initiated against them.
Now, the market regular once again asked the brokers to execute the trades at the best available price and mentioned it as the right of trading clients. It means if a stock is available at Rs. 100 on a particular exchange and Rs. 90 at another exchange at the given time, the broker will have to buy it at the best available price irrespective of exchange.
Securities & Exchange Board of India (SEBI) said that brokers cannot have pre-programmed parameters that compromise on the fundamental principle of the stock market.
BSE Circular to Brokers
In regarding the same, the BSE had already told brokers to verify the SEBI implementation during the inspection of brokers. According to circular, the BSE had received communication from SEBI on June 23, which specifies that brokers should stick to the fundamental principle only i.e. Best Price.
They also stated that the exchange-approved electronic systems or applications also required to comply by rules to the ‘Best Price’ requirements by August 31. In the meantime, the brokers should submit their compliance and non-compliance reports, which will be submitted to SEBI.
Invest19’s ‘Smart Order Routing’ to meet the ‘Best Price’ Principle
‘Buy Low & Sell High’ is possibly the most famous aphorism in the stock market which encourages investors and traders to strategize their trades and plan out their buying and selling. However, for some reason, it can be challenging to implement consistently.
To ease up the process, the market regulator SEBI asked the brokers to give the ‘Best Price’ to the investors and traders as it is their right to know. But, the pre-programmed parameters in software pushed the trade only on a particular exchange. This must change now.
In regarding this, the Mr Kaushlendra Singh Sengar, Founder & CEO at Invest19 stated: “Invest19’s smart order routing technology will allow investors and traders to see through the best available prices of a particular stock in a given time irrespective of exchange, making it easier to place an order and execute trade” while pointing towards the Invest19’s upcoming trading software.
It is said that the Invest19 is offering a free trading platform will be free of cost and loaded with a wide array of investment options such as equities, IPOs, bonds, ETFs, currency, etc. A multi-lingual trading platform that would share the common languages favoured by the investors and traders, giving them the edge over taking smart investing and trading decisions.
Apart from this, the trading software will have some of the top-notch features and innovation-driven technology to cater to the current market challenges.