Capital Market Seminar

Welcome to the workshop

Empowering Investors Through Education

ISB 16th June, 2012

INVESTMENT

WHY
WHERE WHEN

HOW MUCH

Why?
Encounter Inflation Restore Purchasing
Power of Money. Tax Saving

Financial Goal

Need for Investment

ITEM 1987 1997 2007 2027

Colgate Toothpaste Petrol(1litre)

8.05

18.90

28.00

104.00

7.99

25.48

42.50

259.12

LPG Cylinder

56.15

137.85

300.00

830.85

Where?
CASH FD DEBT / FIXED INCOME SECURITY INSURANCE MEDICLAIM TAX SAVING SCEMES MUTUAL FUNDS

STOCK MARKET

BSE - Introduction

Oldest Exchange in Asia Introduced Securities Trading SRO -formulated Rules & Bye-laws First Exchange to be granted permanent recognition under the SC(R)A 1956 AOP ( 1875 2005 ). Corporatisation 19/08/2005. Demutualisation - Separation of Ownership, Administration & Trading > 5000 Listed Companies (>7000 Scrips). BSE Sensex

Financial Market
Finance Blood of Business Financial Market; objective to mobilize capital from unproductive venture to productive venture.

Participants
Government Financial Institutions Public

Categorization
Financial Market Capital Market

Money Market

Capital Market
A Meeting Ground for Savers & Users Promotes Economic Efficiency by

Channelling Capital to Productive ventures.

Government & Corporate firms Raise Long Term Finance.

Types
Capital Market Primary Market
Equity Market Debt Market

Secondary Market
Equity Market
Debt Market Derivatives 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.

Mechanism of New Issue

Rights Issue Private Placement IPO/Public Issue

Secondary Market
Market where Previously Issued Stocks & Financial Instruments are Traded.

Transfer of Securities between the

Investors. Refers to the Stock Exchanges.

Exchange
A Platform, where trading of Securities is done A Facilitator Small Investors can Invest.

Functions of Exchange
Raising Capital for Business Facilitating Company Growth

Helps in Price Discovery.

Barometer of the Economy.

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SE

CC / CH

TM

CM

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Trading
Broker
Sale Order Trade Id

Stock Exchange

Buy Order Trade Id

Broker

Sale Instruction Contract Note

Buy Instruction

Contract Note

Seller

Clearing House Clearing Corporation

Buyer

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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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SCRIP GROUPS & SENSEX

Based on liquidity of trading A=204; B=2110; F=35; T=641; Z=3 Sensex=Sensitive Index - Regd Trademark 30 Most liquid scrips Introduced in 1986 1978-79 = 100 is now > 18,000 Average Return 16 18 %

Depositories
No physical shares issued since 2005 Trading only in dematerialsed form Bank A/c for shares in electronic form Keep Delivery Instruction Slip Book Safely It is like a cheque book Sign only when required Insist for statement No balance / One share

Settlement
T+5 introduced w.e.f. 31-12-2001 T+3 introduced w.e.f. 01-04-2002 T+2 introduced from 01-04-2003 BSE CAN MAKE T+1 or T+0

Settlement Cycle
Day Activity

Trading

Downloading of Provisional securities and funds Obligation Statements by Trading Members Give-up entry by the TM/ Confirmation by custodian

Day Activity Modify the unconfirmed give-up entry upto 11:00 a.m.

T+1

Confirmation of give-up data by the Custodian upto 11:00 a.m. Downloading of Final Securities and Funds Obligation Statements

Day

Activity Pay-in by 11:00 a.m. Pay-out by 1:30 p.m.

T+2

T+3 T+4

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.

Circuit & Filters

Used to Stop Adverse Movement in either way. Applied at 3 stages Before 1 p.m. 1 2:30 p.m. After 2:30 p.m. 10% 1 hr Halt of Trade hr Halt 20% Halt for Remainder of Day 2 hr Halt Remainder of Day Remainder Remainder of Day of Day
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15% 2 hr Halt

No Halt

Scrip-wise Circuit
Individual scrip-wise band of 20% on either side will be the circuit for any Scrip

Scrip for which derivative products are

available are excluded from circuit limits
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Rights of the Investors

Receive Contract Notes in the specified format within 24 hours.

Money and Securities to be received within one working day of the Pay-Out from the Member Broker.
Brokerage not to Exceed 2.5% of the Contract Price. Insist on a Statement of Account

Access to Grievance & Arbitration Mechanism

Friday, March 29, 2013

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Friday, March 29, 2013

30

Investors Grievance Redressal Mechanism at BSE

Complaints Against Companies Meeting with RTA / Co Complaints Against Members IGRC Arbitration Investor Service Centers

Safeguards for Investors

One Share 1% deposit of IPO TGF IPF Co Info on Website Trade Info ETF / MF Depositories ASBA

BSE Training Institute

Conducts courses on: Three months part time - Comprehensive course on capital Market in coordination with JBIMS, Retail Debt Market Corporate Governance Derivatives / Futures Options etc.( Basic & Advanced) Interest Rate / Fixed Income Derivatives Mergers and Acquisitions / Mutual Funds Technical Analysis / Fundamental Analysis. Stock Market operations / BOLT Trading Operation. MBA Certification Courses IGNOU + Lucknow Uni.

BSE Web Site : www.bseindia.com

Most popular web site of the Capital Market Focal point for information dissemination Site to provide information ranging from Trade information - Live prices & Volumes of Equities & Derivatives segment Corporate information- quarterly results of listed companies Real time Corporate announcements Personal Portfolio Management (Valuation).

BSE - SENSEX 21st MARCH, 2012.

SENSEX 21st March, 2012.

RECENT DEVELOPMENTS IN INDIAN CAPITAL MARKET

Mobile Trading Call Auction in Pre-open Market Session Smart Order Routing Currency trading Indian Depository Receipts

YOUR MONEY PROTECT YOURSELF

BSE Toll Free No. 1800 22 6663

Thank You
E-mail is dilip.khuntia@bseindia.com or write to : Department of Investors Services
2nd Floor, Horizon 57, JL Road Kolkata - 700071 033 2282 1375/ 61