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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.
Financial Markets
Financial Institutions Financial Services Financial Instruments An Important Component of IFS Network.
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Capital Market
A Meeting Ground for Savers & Users
Capital Market
Primary Market
Derivatives Market
Secondary Market
Economy cannot Grow without Capital Market getting Developed in the process Development of Capital Market augments Eco Growth
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Primary Market
Deals with issuance of New Securities.
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)
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
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Trading
Sale Order Trade Id
Broker
Stock Exchange
Broker
Buy Instruction
Contract Note
Seller
Buyer
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Types of Orders
Limit Price/ Order Market Price/ Order Stop Loss Price / Order Day Order (Day)
Trading
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 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
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Day
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.
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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
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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Manipulation/Rigging)
have
been
Investigate Thoroughly
Monitor Regularly
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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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Clearly mark your option to receive order confirmations, Contract Notes in digital or physical form.
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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.
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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
Latest 5
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
Kindly E-mail your suggestions, if any, with regards to the Programme to
dilip.khuntia@bseindia.com
or write to :
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