overview of $tock market

8/4/2019 Overview of $Tock Market

http://slidepdf.com/reader/full/overview-of-tock-market 1/18

Prepared by:-

Priyank B. Sanghvi (R.No.-1090)

Semester III – Master of Business Administration

Padmashree Dr. D Y Patil Department of Business Management

Overview of $tock Market



Introduction

The origin of the stock market in India goes backto the end of the eighteenth century when long-term negotiable securities were first issued.

However, for all practical purposes, the realbeginning occurred in the middle of thenineteenth century after the enactment of thecompanies Act in 1850, which introduced thefeatures of limited liability and generatedinvestor interest in corporate securities.

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Introduction

In general, Securities market is an important,organized capital market where transaction ofcapital is facilitated by means of direct financing

using securities as a commodity. Securitiesmarket can be divided into a primary market andsecondary market.



Types of Market

Primary Market

Secondary Market



PRIMARY MARKET

The primary market is an intermittent anddiscrete market where the initially listed sharesare traded first time, changing hands from the

listed company to the investors.It refers to the process through which thecompanies, the issuers of stocks, acquire capital

by offering their stocks to investors who supplythe capital.

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PRIMARY MARKET

Companies, governments or public sectorinstitutions can obtain funding through the saleof a new stock or bond issue. This is typically

done through a syndicate of securities dealers.The process of selling new issues to investors iscalled underwriting.

In the case of a new stock issue, this sale iscalled an initial public offering (IPO).



SECONDARY MARKET

The secondary market is an on-going market,which is equipped and organized with a place,facilities and other resources required for trading

securities after their initial offering. It refers to aspecific place where securities transactionamong many and unspecified persons is carriedout through intermediation of the securities firms,

i.e., a licensed broker, and the exchanges, aspecialized trading organization, in accordancewith the rules and regulations established by theexchanges.



S.E.B.I

Under the SEBI Act, 1992, the SEBI has been empowered toconduct inspection of stock exchanges. The SEBI has beeninspecting the stock exchanges once every year since 1995-96. During these inspections, a review of the marketoperations, organizational structure and administrative control

of the exchange is made to ascertain whether: the exchange provides a fair, equitable and growing market to

investors

the exchange's organization, systems and practices are inaccordance with the Securities Contracts (Regulation) Act(SC(R) Act), 1956 and rules framed there under

the exchange has implemented the directions, guidelines andinstructions issued by the SEBI from time to time

The exchange has complied with the conditions, if any,imposed on it at the time of renewal/ grant of its recognitionunder section 4 of the SC(R) Act, 1956.



Various Exchanges In India

Bombay Stock Exchange(BSE)

National Stock Exchange(NSE)



Bombay Stock Exchange

Bombay Stock Exchange is the oldest stockexchange in Asia What is now popularly known asthe BSE was established as "The Native Share &Stock Brokers' Association" in 1875.

Over the past 135 years, BSE has facilitated thegrowth of the Indian corporate sector by providing itwith an efficient capital raising platform.

Today, BSE is the world's number 1 exchange in theworld in terms of the number of listed companies(over 4900). It is the world's 5th most active in termsof number of transactions handled through itselectronic trading system.



Bombay Stock Exchange

BSE is the first exchange in India and the second inthe world to obtain an ISO 9001:2000 certification. Itis also the first Exchange in the country and secondin the world to receive Information Security

Management System Standard certification for itsBSE On-Line trading System (BOLT).

The BSE Index, SENSEX, is India's first and mostpopular Stock Market benchmark index.

Futures and options on the index are also traded atBSE.



National Stock Exchange

The National Stock Exchange (NSE is a stockexchange located at Mumbai, India. It is the 9thlargest stock exchange in the world by marketcapitalization and largest in India by daily turnover

and number of trades, for both equities andderivative trading. Though a number of otherexchanges exist, NSE and the Bombay StockExchange are the two most significant stockexchanges in India, and between them are

responsible for the vast majority of sharetransactions. The NSE's key index is the S&P CNXNifty, known as the NSE NIFTY (National StockExchange Fifty), an index of fifty major stocksweighted by market capitalisation.



National Stock Exchange

NSE is mutually-owned by a set of leadingfinancial institutions, banks, insurancecompanies and other financial intermediaries in

India but its ownership and managementoperate as separate entities. NSE is the thirdlargest Stock Exchange in the world in terms ofthe number of trades in equities. It is the second

fastest growing stock exchange in the world witha recorded growth of 16.6%



Need Of Broker

As per SEBI (Securities and Exchange Board ofIndia.) regulations, only registered members canoperate in the stock market. One can trade by

executing a deal only through a registeredbroker of a recognized Stock Exchange orthrough a SEBI-registered sub-broker.



Depository

The organization responsible to maintaininvestor's securities in the electronic form iscalled the depository. In other words, adepository can therefore be conceived of as a"Bank" for securities. In India there are two suchorganizations viz. NSDL and CDSL. Thedepository concept is similar to the Bankingsystem with the exception that banks handlefunds whereas a depository handles securities ofthe investors. An investor wishing to utilize theservices offered by a depository has to open anaccount with the depository through DepositoryParticipant.



Advantages Of Depository

Trading in demat segment completelyeliminates the risk of bad deliveries

In case of transfer of electronic shares, you

save 0.5% in stamp duty. Client id along with your DP id gives you a

unique identification in the depository system.



Thank You…….

overview of $tock market

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