Basics of Equity Market

Equity Market is a public entity (a loose network of economic transactions, not a physical facility or discrete entity) for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange.

Equity Market

Primary Market (Issuing of Securities)

Secondary Market (Trading

of Securities)

Role of SEBI

There are many roles of SEBI and it’s the regulator

of Stock Exchanges in India, Establishment in 1992 in

replacement of Controller of Capital Issues ( CCI ).

• Power to make rules for controlling stock exchange.

• To provide license to dealers and brokers.

• To Stop fraud in Capital Market.

• To Control the Merge, Acquisition

and takeover the companies.

Role of SEBI

• To make new rules on carry - forward transactions.

• To create relationship with ICAI.

• Introduction of derivative contracts on Volatility Index

• To Require report of Portfolio Management Activities.

• To educate the investors.

• To audit the performance of stock

market.

Role of Brokers

Investors

Stock

Exchange

• To ensure market liquidity and respond rapidly to its clients' needs.

• To respect the confidential nature of its clients' transactions.

• Perfect knowledge of financial markets.• Providing superior quality, high value added

service.

BROKER

Online Trading Facilities

• Online trading in securities refers to the facility of investor being able to place his own orders using the internet trading platform offered by the trading member viz., the broker.

• To start with, investor needs to identify a trading member who offers internet trading facility and register with the trading member for availing the internet trading facility.

• Trading platform is provided based on the place you own your demat acount(equity, commodity,etc).

• Once an investor receives trading platform he has to register ID with stock exchange.

Placing of Buy Order

Placing of Sell Order

Demat Account

• Dematerialized account for individual Indian citizens to

trade in listed stocks or debentures, required for investors

by The Securities Exchange Board of India (SEBI).

• A Demat account reduces brokerage charges, enables

quick ownership of securities on settlement resulting in

increased liquidity, avoids confusion in the ownership

title of securities, and provides easy receipts for public

issue allotments or IPOs.

• A single Demat account can hold investments in both

equity and debt instruments

Contract Note

Dematerialization

To dematerialize any physical security:

a) open a demat account with a DP.

b) fill in a DRF (Demat Request Form) and submit the same with the physical certificate/s to the DP for dematerialization.c) DP defaces and sends the certificates to the Issuer/Registrar who credits an equivalent number of securities in the demat account, maintained by CDSL.

Physical Form Electronic Form

Demat Account

Re-Materialization

• Re-Materialization is the process by which a client can get his electronic holdings converted into physical certificates.

• A client can rematerialize his dematerialized holdings at any point of time.

• If one wishes to get back his securities in the physical form, one has to fill in the RRF (Remat Request Form) and request his DP for Re-Materialization of the balances in his securities account.

Thank You