Professional Documents
Culture Documents
MARKET
Presented By:
Mr. Suman Kumar
Company Secretary
OBJECTIVE
Awareness about
Securities Market
Topic For Discussion
1. Genesis of Corporation sole and shares.
2. Overview of the Indian Securities
Market.
3. Categories of Listed Companies w.r.t.
Market Capitalisation
4. Types of Securities
5. Market Sensitivity Index
6. Capital Market Operation (Movement of
Funds & Securities from one hand to another)
1. Auction & Defaults
2. Derivatives Market Operation (F&O)
3. Investment Strategies (Arbitrage,
Hedging etc.)
4. Other Important Imformation
11. Mutual Funds
12. Current Thoughts.
Individual
GENESIS:
Partnership
CO RP ORA TE
Corporates
Individual Partnership
Firms
Overview of
the
Securities
Market
Equities Market Overview
With over a billion people in India, less than 3% invest in
equities .
One of the highest savings rate of 29.1% in the world.
California Public Employees' Retirement System
(CalPERS), the largest pension fund in the US,with
retirement savings of more than one million Americans has
recognised India as one of the best performers among all
the emerging markets in its investment policy report for
2007.
The Bombay Stock Exchange is the largest stock
exchange in terms of the number of listed companies
Indian equity markets are the third best performer in
Asia and the eight best in the world.
India has one of the world’s lowest transaction cost
based on screen based transaction, paperless
trading and T+2 settlement cycle.
Currently over 1029 FIIs have been registered with
SEBI.
Rapidly increasing demand: Trading volumes
expected to double each year for the next two to
three years (Wall Street Journal).
NSE is ranked second in the world in terms of the
number of transactions conducted after New York
Stock Exchange (NYSE).
The National Stock Exchange has emerged as the
third largest stock market in the world, just behind
the top-ranked NYSE followed by the NASDAQ.
Market capitalization of all listed companies 2006-07 has
crossed $1trillion which is almost equal to the GDP of the
country.
About 20% of the retail turnover in India is being transacted
through internet trading. This is a very low number compared
to markets like South Korea, Japan & USA where more than
75% of the total retail turnover is transacted through internet.
Market share of online trading is expected to rise in India
given growing retail investor participation, growing internet
usage, faster telecom connectivity and increasing
comfortable levels with internet trading.
Population of more than 20 million NRI’s with a combined
wealth of more than $1 trillion, i.e. more than India’s GDP.
India has the 3rd largest investor base in the world with more
than 20 million shareholders.
Categories of Listed
Companies
Data transfer
after 3:30 P. M.
SMC
NSEIL
9:55 TO 3:30 P. M.
SMC KOTAK
Bank
A/c
upto
Pool
10.30 A/c
A.M.
(Wed.)
Ankit–Mumbai
sold 1000 Rel.
RAVI DELHI shares
purchased 1000
Rel. shares on
Monday
Auction
&
Default
NSE - DEFAULT & AUCTION
T T+1 T+2
AUCTION
(T)
Pay in 10:30 - Default 1000 Rel. - Auction - Penalty (0.20 % * t+1 price * No. of
shares) + Value = 1000 * 1200
If the auction takes place on the price less than the trading price then value= t+1 price *
1000 and penalty = (0.20 % * t+1 price * No. of shares
Pay in 10:30 A.M. - Default 1000 Rel. - Auction - Penalty (1 % * t+1 price * No. of
shares) + Value = 1000 * 1200
If the auction takes place on the price less than the trading price then value= t+1
price * 1000 and penalty = (1 % * t+1 price * No. of shares)
FUTURES OPTIONS
Put Call
DERIVATIVES
FUTURE OPTION
Derivatives - Rs. 2
TM Exchange
per lac of turnover
(0.002%) subject to
minimum of Rs. 1
Rs. 10 per lac per annum
crore (F&O)
(0.0001%) Cash - Rs. 3.50
IPF per lac of turnover
Rs. 1 per 100 (0. 0035 %)
crore (CM)
(0.0000001%)
SECURITIES TRANSACTION TAX (STT)
CASH
SEGMENT
Jobbing – 0.025 % (Seller Only)
Index Future
Premium *
Sub- Broker - N. A. Quantity
NSE MILESTONES
•November 1992 Incorporation
•April 1993 Recognition as a stock exchange
•November 1994 Capital Market (Equities) segment goes live
•April 1995 Establishment of NSCCL, the first Clearing Corporation
•October 1995 Became largest stock exchange in the country
•April 1996 Commencement of clearing and settlement by NSCCL
•April 1996 Launch of S&P CNX Nifty
•November 1996 Setting up of National Securities Depository Limited, first depository
in India, co-promoted by NSE
•June 2000 Commencement of Derivatives Trading (Index Futures)
•June 2001 Commencement of trading in Index Options
•July 2001 Commencement of trading in Options on Individual Securities
•November 2001 Commencement of trading in Futures on Individual Securities
•August 2003 Launch of Futures & options in CNXIT Index
•June 2005 Launch of Futures & options in BANK Nifty Index
•December 2006 'Derivative Exchange of the Year', by Asia Risk magazine
•June 2007 NSE launches derivatives on Nifty Junior & CNX 100
Bombay Stock
Exchange.