BSE vs NSE: What to Do When Your Demat Account Displays the Wrong Exchange?
If you recently bought shares on the BSE and now your demat account is showing them as NSE, you might be a bit confused. This article aims to clarify what this means and what actions you can take. We will also discuss the potential reasons behind this situation and the best practice to follow.
Understanding BSE and NSE
Before diving into the specifics, let's quickly explain what BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) are. Both are major stock exchanges in India, each with its unique characteristics and investor base. Your demat account will show the exchange on which a specific stock is listed when you want to sell it or trade intraday.
Why Your Demat Account Shows NSE for BSE Purchased Stocks?
There are several possible reasons why your demat account might show NSE for a stock that you bought on the BSE:
Market fluctuation: Due to market dynamics, the NSE price might be higher than the BSE price at a particular time.
Brokerage firm preferences: Your brokerage firm may decide to display the NSE price to maximize your potential profits.
Customer benefits: Some brokerage firms might adjust the displayed exchange to the one which offers better terms or conditions for the customer.
It's important to note that the displayed exchange is not a reflection of where your shares are physically located; it is just a reflection of the price at the time of listing. This is a common practice used by brokers to ensure that they are providing the best terms to their clients.
What to Do When Your Demat Account Shows NSE for BSE Shares?
If your demat account shows NSE for shares purchased on BSE, here are the steps you should take:
Check the current market condition: Verify the current price on both exchanges. As mentioned, you should be able to see the BSE and NSE prices in your demat account.
Contact your broker: If there's any confusion or if you are unsure about the situation, contact your broker for clarification.
Set a watchlist: Add the specific stock to your watchlist in both BSE and NSE. This will help you track the price and decide the best time to sell.
Consider the trade type: If you are trading on the delivery basis, you can sell your shares from either BSE or NSE. However, for intraday trading, you are restricted to the exchange where you purchased the shares.
Place the order: When you want to sell, choose the specific exchange based on the current market conditions.
Conclusion
Ultimately, the displayed exchange in your demat account is just for reference and does not prevent you from selling your shares on either BSE or NSE. Just ensure you are aware of the market conditions and your brokerage firm's policies regarding these exchanges. If you are unsure, always reach out to your broker for clarity. Remember, market conditions can change, so stay informed and make decisions based on the latest information.
Disclaimer: The information provided is for understanding purposes only and should not be considered professional financial advice. Always consult with a financial advisor or your broker for personalized advice.