What is the full form of BE in the Share Market?
The BE Full Form in the Share Market is Book Entry. The shares that falls under the category of trade to trade or those falling under the category of T-Segment are traded in the book entry series and not in intraday. Under this type of trading, the trades can be settles only through accepting or by giving the delivery of the shares.
Significance of BE in share market:
Book entry is an important tool that transforms the way the securities are handled. BE systems allow for quicker execution and settlement of trades. We can complete the transactions within seconds or minutes through the BE system. As it eliminates the need for physical certifications, the risks of theft, loss and securities counterfeiting is eliminated.
Advantages of Book entry system:
As the book entry system is automated, it mitigates human errors. There is a reduction in the paper work and there is no need for physical storage as well. It favors the transference of securities electronically, simplifying the entire process for investors. With the book entry system, investors can easily trade securities across international borders. Regulators can also monitor transactions easily with the ease of enforcing laws and regulations.