Professional Documents
Culture Documents
Indian Economy
An Emerging Economy. Over a Trillion Dollar Economy in Size. Average GDP Growth Rate of 8% over last 5 years despite Global Meltdown. A Well Developed Formal Financial System.
Capital Market
A Meeting Ground for Savers & Users Promotes Economic Efficiency by Channelling Capital to Productive ventures. Government & Corporate firms Raise Long Term Finance. India Enjoys A Buoyant Domestic Savings Rate Savings Seeks Efficient Allocation for Investments
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Capital Market
Primary Market
Derivatives Market
Secondary Market
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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Share
Book Building
Price of the Issue is not fixed by the Company. The floor price is, however, fixed by the issuer Company depending on the bidding for the shares. Book Building is a process of discovering price for issue of Securities to Investors. Bidding is done at or above the floor price. Price Band also specified by the company.
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SEBI
vide
its
circular
no.
EBI/CFD/DIL/DIP/31/2008/30/7 July 30, 2008 introduced a supplementary process of applying in public issues, viz., the Applications Supported by Blocked Amount. Ensures investor's funds leave his bank account only upon allocation of shares in public issues. In this mechanism, the need for refunds is completely obviated.
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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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SE
CC / CH
TM
CM
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Regulators
Securities and Exchange Board of India (SEBI) Reserve Bank of India (RBI) Department of Company Affairs (DCA) Department of Economic Affairs (DEA) Stock Exchanges
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Regulatory Framework
The SEBI Act, 1992 (Amended in 2002) The Companies Act, 1956 The Securities Contract (Regulation) Act, 1956 The Depository Act, 1996 Bye-laws of 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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Trading
Sale Order Trade Id
Broker
Stock Exchange
Broker
Seller
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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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Downloading of Provisional securities and funds Obligation Statements by Trading Members Give-up entry by the TM/ Confirmation by custodian
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Day
Day
Activity Pay-in by 11:00 a.m. Pay-out by 1:30 p.m. Auction between 11:00 a.m. to 12 noon Download of Auction Report by 12:30 p.m. Auction pay-in by 12 noon Auction Pay-out by 1:30 p.m.
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Scrip-wise Circuit
Individual scrip-wise band of 20% on either side will be the circuit for any Scrip
Scrips for which derivative products are available are excluded from circuit limits
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Demat
Refers to a Dematerialised account Hold securities in Electronic form; physical securities carry the risk of being fake, forgotten or stolen. NDSL and CDSL are the two depositories. Most banks are also depository participants as are brokers.
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Auction Proceeding in Certain Cases (Price Manipulation/Rigging) have been Impounded and Transferred to the Fund. Surplus lying in the Account of Defaulters, after meeting their Liabilities is Released to them, after Transferring 5% of the Surplus amount to the Fund.
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What makes a great Investor? Constant reading and follow up of the Companies Look for Margin of Safety in valuation terms Compounding (Start early, invest wisely) Investment is 24X7 job Have long term view of the market
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Rights to Investors
To receive material information from the company Prompt services from company such as transfers, sub-divisions and consolidations of holdings in the company. Equity holders have a right to subscribe to further issues of capital by the company. Brokerage not to exceed 2.5 percent of the contract price.
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Receipt of the contract note from the broker in the specified format showing transaction price and brokerage separately. Investors can expect delivery of shares purchased / value of shares sold within 15 days from the end of settlement period. Access to the Exchange arbitration facilities in case of dispute with broker.
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Clearly mark your option to receive order confirmations, Contract Notes in digital or physical form. Make sure that you receive contract notes for all your trades within 24 hours.
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Enter into in proper Client Broker agreement with your broker and keep a signed copy of the same for your records. Furnish Know your Client (KYC) form to broker. Dont fall prey to unrealistic / guaranteed returns.
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Most popular web site of Capital Market : 5.7 million hits on budget day. Average daily of 5 million hits.
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Features on www.bseindia.com
Compare with Peers Pre-defined & Technical charts
Historical High/Low
LTP
Market Depth
Lates t5
Alerts
Key Pointers
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SEBI Eastern Regional Office 3rd Floor, L & T Chamber 16 Camac Street Kolkata 700 017 Ph # 033-22801213 / 1220 / 1614 / Fax # 033- 22874307 email # sebiero@sebi.gov.in website @ www.sebi.gov.in
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Thank You
or write to :
dilip.khuntia@bseind ia.com
Bombay Stock Exchange Ltd
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