Identify the correct sequence of steps involved in the screen-based trading for buying and selling of securities on stock exchange.

A. Open a beneficial owner account with the depository participant.

B. The trade has been executed within 24 hours and a contract note is issued

C. A registered broker is approached

D. Place an order with the broker

E. The settlement cycle is on T+2 day on rolling settlement basis.

Choose the correct answer from the options given below:

The correct option is C, A, D, B, E.

The process of screen-based trading for buying and selling securities on a stock exchange follows a logical sequence of steps to ensure secure, transparent, and regulated transactions. Let's break down each step in detail:

1. Approaching a Registered Broker (C):
Before any transaction can take place, an investor must select and approach a broker registered with the Securities and Exchange Board of India (SEBI). Individual investors are not permitted to trade directly on the stock exchange floor, making the broker the necessary intermediary.

2. Opening a Beneficial Owner Account (A):
Once a broker is selected, the investor must open a depository (Demat) account, also known as a beneficial owner (BO) account, with a Depository Participant (DP). This account is essential for holding securities in electronic (dematerialized) format.

3. Placing an Order (D):
After setting up the accounts, the investor places a buy or sell order with the broker. In this step, the investor specifies the name of the security, the quantity, and the price at which the transaction should be executed.

4. Execution of Trade and Issuance of Contract Note (B):
The broker executes the order on the electronic trading platform of the exchange when a matching buy/sell order is found. Within 24 hours of trade execution, the broker issues a contract note, which serves as a legal record of the transaction details (price, brokerage, stamp duty, etc.).

5. Settlement of the Trade (E):
The final step is the settlement cycle, where actual transfer of securities and funds takes place. In modern screen-based trading, this is done on a T + 2 day rolling settlement basis, meaning the transaction is finalized two business days after the trade day (T).

Therefore, the correct chronological sequence is C → A → D → B → E.