Trade Life cycle / Business Flow of object or T+2 cycle

Trade Life Cycle is also known as the business Flow of objects as well as the T+2
cycle.
- Buyer is the most important part of the Tread life cycle. The buyer is
buying the share but he needs to be created at demate account before
he direct login demates account.
- Neither he fills up an online application form and his data is collected in
the “common database File”(CDF).
- Then collect data is transferred from CDF to EDI (electronic digital
identification)
- When EDI is completed means KYC proceeds are completed. message
brokaging [MB] is done. And transluce to the common database all the
credentials are get authorized for the user.
- After getting the confirmation of the credentials stored in the database
then we are having access to the trade data application the Zerodha
application.
- When the buyer belongs to the application zerodha then sends the
request to the stock exchange for the BSE[Buys sell Exchange]
- Our any one seller who wants to sell the share will send the request to
the application. he will send the same request for sale.
- When the buyer and seller send the same request to the application for
sale that time the stock exchange trade is done successfully then money
deduct from the buyer’s account also known as money Treading and this
deducted money is transferred to the stock exchange.
- Also stock exchange trade has done successfully at that time deduct
shares from the seller’s account and transfer to the stock exchange.
- Next day of trading collected money handover to the broker’s account
that is T+1 day.
- Also collected shares handover to the broker account that is T+1 day.
- Brokers all collected share transfer to all buyer’s accounts that is T+2
day.
- These all transactions of shares and money are controlled under the
DTCC organization[Depository Trust Clearing Corporation]
- Now I am working on an investment banking Domain project, over there
many sectors are involved like an equity community, derivatives, and
currency but I am involved in the equity sector.
- In the equity sector buying and selling securities on of shares.