Download - Capital Market Safe Guards
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Capital Market Seminar
Welcome to the workshop
Empowering InvestorsThrough EducationISB
16th June, 2012
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INVESTMENT
WHY
WHERE
WHEN
HOW MUCH
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Why?
Encounter Inflation
Restore Purchasing
Power of Money.
Tax Saving
Financial Goal
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Need for Investment
ITEM 1987 1997 2007 2027
ColgateToothpaste
8.05 18.90 28.00 104.00
Petrol(1litre) 7.99 25.48 42.50 259.12
LPG Cylinder 56.15 137.85 300.00 830.85
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Where?
CASH
FD
DEBT / FIXED INCOME SECURITY
INSURANCE
MEDICLAIM
TAX SAVING SCEMES
MUTUAL FUNDS
STOCK MARKET
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BSE - Introduction
Oldest Exchange in Asia
Introduced Securities Trading
SRO -formulated Rules & Bye-laws
First Exchange to be granted permanent recognition under the
SC(R)A
1956
AOP ( 18752005 ).
Corporatisation 19/08/2005.
Demutualisation - Separation of Ownership, Administration &Trading
> 5000 Listed Companies (>7000 Scrips).
BSE Sensex
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Financial Market
FinanceBlood of Business
Financial Market; objective to mobilize
capital from unproductive venture to
productive venture.
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Participants
Government
Financial Institutions
Public
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Categorization
Financial
Market
Capital
Market
Money
Market
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Capital Market
A Meeting Ground for Savers & Users
Promotes Economic Efficiency by
Channelling Capital to Productive ventures.
Government & Corporate firms Raise Long
Term Finance.
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Types
Capital Market
Primary Market Secondary Market
Equity Market
Debt Market Debt Market
Equity Market
Derivatives Market
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Primary Market
Deals with issuance of New Securities.
Companies, Government can Obtain Fund
through the sale of New Stock or Bond.
Market for Long-term Capital.
Securities are Issued to the Investors directly.
Subsequently these Securities get Listed and
Traded on the Stock Exchanges.
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Mechanism of New Issue
Rights Issue
Private Placement
IPO/Public Issue
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Secondary Market
Market where Previously Issued Stocks
& Financial Instruments are Traded.
Transfer of Securities between the
Investors.
Refers to the Stock Exchanges.
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Exchange
A Platform, where trading of Securities is done
A Facilitator
Small Investors can Invest.
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Functions of Exchange
Raising Capital for Business
Facilitating Company Growth
Helps in Price Discovery.
Barometer of the Economy.
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CC / CH
CMTM
SE
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Trading
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Broker BrokerStockExchange
Clearing HouseClearing Corporationeller Buyer
SaleOrder
Trade Id Trade Id
SaleInstruction
Contract Note
ContractNote
BuyInstruction
BuyOrder
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Types of Orders
Limit Price/ Order
Market Price/ Order
Stop Loss Price / Order
Day Order (Day)
Immediate or Cancel Order (IOC)
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SCRIP GROUPS & SENSEX
Based on liquidity of trading
A=204; B=2110; F=35; T=641; Z=3
Sensex=Sensitive Index - Regd
Trademark
30 Most liquid scrips
Introduced in 1986
1978-79 = 100 is now > 18,000
Average Return 1618 %
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Depositories
No physical shares issued since 2005
Trading only in dematerialsed form
Bank A/c for shares in electronic form
Keep Delivery Instruction Slip Book Safely
It is like a cheque book
Sign only when required
Insist for statement
No balance / One share
S t t l t
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S e t t l e m e n t
T+5 introduced w.e.f. 31-12-2001
T+3 introduced w.e.f. 01-04-2002
T+2 introduced from 01-04-2003
BSE CAN MAKE T+1 or T+0
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Day Activity
T
Trading
Downloading of Provisional securities and
funds Obligation Statements by Trading
MembersGive-up entry by the TM/ Confirmation by
custodian
Settlement Cycle
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Day Activity
T+1
Modify the unconfirmed give-up entry upto
11:00 a.m.
Confirmation of give-up data by the
Custodian upto 11:00 a.m.
Downloading of Final Securities and Funds
Obligation Statements
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Day Activity
T+2 Pay-in by 11:00 a.m.
Pay-out by 1:30 p.m.
T+3 Auction between 11:00 a.m. to 12 noon
Download of Auction Report by 12:30 p.m.
T+4 Auction pay-in by 12 noonAuction Pay-out by 1:30 p.m.
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Circuit & Filters
Used to Stop Adverse Movement in either way.
Applied at 3 stages
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10% 15% 20%
Before 1p.m.
1 hr Halt ofTrade
2 hr Halt Halt forRemainder
of Day
12:30
p.m.
hr Halt 2 hr Halt Remainder
of Day
After 2:30
p.m.
No Halt Remainder
of Day
Remainder
of Day
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Scrip-wise Circuit
Individual scrip-wise band of 20% on either
side will be the circuit for any Scrip
Scrip for which derivative products are
available are excluded from circuit limits
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Rights of the Investors
Receive Contract Notes in the specified format within 24 hours.
Money and Securities to be received within one
working day of the Pay-Out from the Member Broker. Brokerage not to Exceed 2.5% of the Contract Price.
Insist on a Statement of Account
Access to Grievance & Arbitration Mechanism
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Friday, March 29, 2013 29
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Friday, March 29, 2013 30
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Complaints Against Companies
Meeting with RTA / Co
Complaints Against Members
IGRC
Arbitration
Investor Service Centers
Investors Grievance Redressal Mechanism at BSE
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Safeguards for Investors
One Share
1% deposit of IPO
TGF
IPF
Co Info on Website
Trade Info
ETF / MF Depositories
ASBA
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BSE Training Institute
Conducts courses on:
Three months part time - Comprehensive course on capital
Market in coordination with JBIMS,
Retail Debt Market
Corporate Governance
Derivatives / Futures Options etc.( Basic & Advanced)
Interest Rate / Fixed Income Derivatives
Mergers and Acquisitions / Mutual Funds
Technical Analysis / Fundamental Analysis.
Stock Market operations / BOLT Trading Operation.
MBA Certification Courses IGNOU + Lucknow Uni.
BSE Web Site :
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BSE Web Site :www.bseindia.com
Most popular web site of the Capital Market
Focal point for information dissemination
Site to provide information ranging from
Trade information - Live prices & Volumes of Equities &
Derivatives segment
Corporate information- quarterly results of listed companies
Real time Corporate announcements
Personal Portfolio Management (Valuation).
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BSE - SENSEX 21st MARCH, 2012.
SENSEX 21st
March, 2012.
RECENT DEVELOPMENTS IN
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RECENT DEVELOPMENTS ININDIAN CAPITAL MARKET
Mobile Trading
Call Auction in Pre-open Market Session
Smart Order Routing
Currency trading
Indian Depository Receipts
YOUR MONEY PROTECT YOURSELF
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BSE Toll Free No. 1800 22 6663
Thank YouE-mail is [email protected] write to :
Department of Investors Services2nd Floor, Horizon
57, JL Road
Kolkata - 700071033 2282 1375/ 61