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SURVEILLANCE IN STOCK EXCHANGES MODULE CURRICULUM Chapter 1 I!tr"#$%t&"! Importance of surveillance in stock exchanges (2 marks

Chapter 2 (2' marks (as&% I!)estme!t Mathemat&%s Return on equity, Earning per share, Cash earning per share, Price to earning ratio, Book value, Market price, Intrinsic value, Capital gains, value of a right, value of bonus, cost of equity, cum ivi en price, ex ivi en price, bon valuation! Beta, concept, calculation an significance, "tock in ices! #ime value of money, present value, future value, compoun value, annuities, amorti$ation, iscount rate, internal rate of return, equal monthly installments! Pay back perio , internal rate of return, net present value, Return on investment! %inancial statements, &et 'orth, current assets, current liability, ebt to equity ratio, current ratio, current assets, (n erstan ing an interpreting of financial statements, interpretation of cre it ratings! Chapter * (*' marks R$+es a!# Re,$+at&"!s "ecurities Contracts Regulation )ct, *+,- an Rules, *+,.! Recognition of "tock Exchanges, perio ical returns to "EBI, Po'er of "EBI to make or amen Exchange Rules an Bye/la's, po'er to superse e governing boar of exchanges, po'er to suspen business of recognise stock exchanges 0"ection 1 to *23 Contracts in securities contracts in notifie areas illegal or voi in certain circumstances, members may not act as principals in certain circumstances, po'er to prohibit contacts in certain cases! 4ualification for membership of recognise stock exchanges, books of account an other ocuments to be preserve by the recognise stock exchanges an their members, listing requirements, etc! "ecurities an Exchange Boar of In ia )ct, *++2 Role an %unctions 5 6eneral Po'ers, regulating the business in stock exchanges an any other securities market, registering an regulating the 'orking of stock brokers, sub/brokers, share transfer agents an such other interme iaries 'ho may be associate 'ith the securities markets in any manner! "EBI to regulate all interme iaries in securities business, penalties for failure to follo' rules an regulations, po'er to a 7u icate, appellate proce ure! "EBI 0"tock Brokers an sub/brokers Regulations, requirements of contract notes, regulations of transactions bet'een clients an brokers!

"EBI gui elines on isclosures an investor protection 08IP3 '!s!r!t! isclosure norms, "EBI 0insi er tra ing3 Regulations, the efinition of insi er, person eeme to be a connecte person, (npublishe price sensitive information, responsibilities of insi er! "EBI substantial acquisition of shares an take over regulations, "EBI Regulation on prohibition of frau ulent an unfair tra e practices relating to securities markets, prohibition against market manipulation, prohibition of mislea ing statements to in uce sale or purchase of securities, prohibition on unfair tra e practices relating to securities! Corporate governance! Po'er of "EBI to or er investigation, proce ure for investigation, uty to pro uce recor s, po'er of the boar to issue irection, purpose of irection, suspension or cancellation of registration of an interme iary hol ing a certificate of registration! Co e of ethics for employees of stock exchanges!

Chapter (1. marks S$r)e&++a!%e "/ market a%t&)&t0 Monitoring real time price9volume etails an its analysis! 6enerate parameteri$e alerts for further scrutiny using stock 'atch systems 'ith market safety 0Risk3 an integrity 0manipulation in marketplace3 as ob7ective! #racking price sensitive ne's an verify rumours an issemination to the marketplace! Chapter . (2. marks R"+e "/ s$r)e&++a!%e &! r&sk ma!a,eme!t "ettlement guarantee mechanism through risk containment measures! Capital requirements 0Base capital : ) itional Base Capital3! 6ross exposure an intra ay turnover limits base on available capital! ;nline position monitoring an real time 'arnings for violations! Margin requirements< Computation, collection an refun of margins in accor ance 'ith "EBI9Exchange gui elines! Concept of gross margining! Chapter 1 (2 marks 3re+&m&!ar0 a!a+0s&s a!# I!)est&,at&"! Processing of alerts9cases receive from surveillance group, regulatory bo ies an market intelligence to ascertain the possibility of manipulation9insi er tra ing! 8ata analysis to ascertain patterns an tren s to shortlist tra ing members an securities for further scrutiny! #racking client 'ise positions through =(nique Client Co e> entere uring or er punching!

Con ucting etaile investigation of shortliste cases to ascertain anomalies an referring them to 8)C 'here involvement is at tra ing member level! ;ther cases are referre to the Regulator!