How Penny Stocks Work in India?
Penny Stocks in India are traded on stock exchanges like the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Investors can buy and sell these stocks through stockbrokers. However, they are placed in a separate category called the “Trade-to-Trade” (T2T) basket. This means these stocks can not be traded intraday, i.e., buying and selling can not be done on the same day. This is done to protect investors from the high volatility of Penny Stocks. To buy Penny Stocks, one needs to open a trading account with a broker who offers trading in the T2T basket. Once the account is opened, a trading account and order for buying and selling can be placed through the respective broker.
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