Extra Class on Stock Exchange Overview

8/11/2019 Extra Class on Stock Exchange Overview

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Business Capital Sourcesof capital

1st Source

Internalresources

2nd Source

Bank borrowings Loans

3rd Source

Securities MarketAs a Prime Focus


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Definition of 'Primary Market'

A market that issues new securities on an exchange. Companies, governments andother groups obtain financing through debt or equity based securities. Primary marketsare facilitated by underwriting groups, which consist of investment banks that will set abeginning price range for a given security and then oversee its sale directly to investors.

Also known as "new issue market" (NIM).

Definition of 'Secondary Market'

A market where investors purchase securities or assets from other investors, rather

than from issuing companies themselves. The national exchanges - such as the NewYork Stock Exchange and the NASDAQ are secondary markets.

Secondary markets exist for other securities as well, such as when funds, investmentbanks, or entities such as Fannie Mae purchase mortgages from issuing lenders. In any

Markets

PrimaryInitial PublicOffering (IPO)

Rights Issue

Private Placement

SecondaryPost issue market

OTCNon-exchange

market


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secondary market trade, the cash proceeds go to an investor rather than to theunderlying company/entity directly.

Definition of 'Over-The-Counter Market'

A decentralized market, without a central physical location, where market participantstrade with one another through various communication modes such as the telephone,email and proprietary electronic trading systems. An over-the-counter (OTC) market andan exchange market are the two basic ways of organizing financial markets. In an OTCmarket, dealers act as market makers by quoting prices at which they will buy and sell asecurity or currency. A trade can be executed between two participants in an OTCmarket without others being aware of the price at which the transaction was effected. Ingeneral, OTC markets are therefore less transparent than exchanges and are also

subject to fewer regulations.Participants in various market

Issuers

-Government

- Companies

Intermediaries

- Merchantbankers

- Bankers to theissue

- Underwriters

- Registrars to theissue

- Credit ratingagencies

- Brokers

- Custodians

Infrastructure

- StockExchange

-Depositories

Investors- Individuals

- Mutual

Funds

- ForeignInstitutional

Investors

- Insurancecos.

- PrivateEquity

- VentureCapital


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stock exchange

A stock exchange is a form of exchange which provides services for stock brokers andtraders to buy or sell stocks, bonds, and other securities.

Exchange (organized market):-

An exchange , is a highly organized market where (especially) tradable securities, commodities, foreign exchange, futures, and options contracts are sold and bought.

The main fundamental difference between options and futures lies in the obligationsthey put on their buyers and sellers. An option gives the buyer the right , but not theobl iga t ion to buy (or sell) a certain asset at a specific price at any time during the life ofthe contract.

A futures contract gives the buyer the obl iga t ion to purchase a specific asset, and theseller to sell and deliver that asset at a specific future date, unless the holder's positionis closed prior to expiration.

StockExchang

e

Debentures

Equityshares

Preferenceshares
http://en.wikipedia.org/wiki/Exchange_(organized_market)http://en.wikipedia.org/wiki/Brokerage_firmhttp://en.wikipedia.org/wiki/Trader_(finance)http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Market_(economics)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Commoditieshttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Option_(finance)http://www.investopedia.com/terms/o/option.asphttp://www.investopedia.com/terms/o/option.asphttp://www.investopedia.com/terms/f/futures.asphttp://www.investopedia.com/terms/f/futures.asphttp://www.investopedia.com/terms/f/futures.asphttp://www.investopedia.com/terms/o/option.asphttp://en.wikipedia.org/wiki/Option_(finance)http://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Commoditieshttp://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Market_(economics)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Trader_(finance)http://en.wikipedia.org/wiki/Brokerage_firmhttp://en.wikipedia.org/wiki/Exchange_(organized_market)


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50 major stock exchanges in the world

Stock Market Indices

USA Africa Asia and Pacific Canada Europe Middle East South America

International

BBC Global 30 - world stock market index of 30 of the largest companies by stock market value inEurope, Asia and the Americas.

iShares MSCI EAFE Index (EFA) - provides investment results generally equivalent to publiclytraded securities in the European, Australasian and Far Eastern markets. Maintained by Morgan StanleyCapital International.

MSCI World - free-float weighted equity index. Index includes stocks of all the developed markets.Common benchmark for world stock funds.

S&P Global 1200 - global stocks index covering 31 countries and around 70 percent of global marketcapitalization.

United States

AMEX Composite - composite value of all of the stocks traded on the American Stock Exchange.

Dow Jones Indexes - leading global index provider.

Dow Jones Industrial Average - one of the most widely quoted of all the market indicators. Consists

of 30 of the largest publicly traded firms in the U.S.

Dow Jones Wilshire 5000 - designed to track the performance of all publicly traded companies basedin the U.S.

NASDAQ Composite - broad market index of all of the common stocks and similar securities tradedon the NASDAQ stock market.

NYSE Composite - covers all common stocks listed on the New York Stock Exchange.
http://www.world-stock-exchanges.net/indices.html#Uhttp://www.world-stock-exchanges.net/indices.html#Uhttp://www.world-stock-exchanges.net/indices.html#Ahttp://www.world-stock-exchanges.net/indices.html#Ahttp://www.world-stock-exchanges.net/indices.html#AShttp://www.world-stock-exchanges.net/indices.html#AShttp://www.world-stock-exchanges.net/indices.html#Chttp://www.world-stock-exchanges.net/indices.html#Chttp://www.world-stock-exchanges.net/indices.html#Ehttp://www.world-stock-exchanges.net/indices.html#Ehttp://www.world-stock-exchanges.net/indices.html#Mhttp://www.world-stock-exchanges.net/indices.html#Mhttp://www.world-stock-exchanges.net/indices.html#Shttp://www.world-stock-exchanges.net/indices.html#Shttp://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/stockmarket/29954/default.stmhttp://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/stockmarket/29954/default.stmhttp://finance.yahoo.com/q?s=EFAhttp://finance.yahoo.com/q?s=EFAhttp://www.bloomberg.com/apps/quote?ticker=MXWO%3AINDhttp://www.bloomberg.com/apps/quote?ticker=MXWO%3AINDhttp://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/indices_gbl1200/2,3,2,1,0,0,0,0,0,0,0,0,0,0,0,0.htmlhttp://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/indices_gbl1200/2,3,2,1,0,0,0,0,0,0,0,0,0,0,0,0.htmlhttp://money.cnn.com/data/markets/amex/http://money.cnn.com/data/markets/amex/http://www.djindexes.com/http://www.djindexes.com/http://www.djindexes.com/mdsidx/index.cfm?event=showAverageshttp://www.djindexes.com/mdsidx/index.cfm?event=showAverageshttp://www.wilshire.com/http://www.wilshire.com/http://quotes.nasdaq.com/aspx/marketindices.aspxhttp://quotes.nasdaq.com/aspx/marketindices.aspxhttp://finance.yahoo.com/q?s=%5eNYAhttp://finance.yahoo.com/q?s=%5eNYAhttp://finance.yahoo.com/q?s=%5eNYAhttp://quotes.nasdaq.com/aspx/marketindices.aspxhttp://www.wilshire.com/http://www.djindexes.com/mdsidx/index.cfm?event=showAverageshttp://www.djindexes.com/http://money.cnn.com/data/markets/amex/http://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/indices_gbl1200/2,3,2,1,0,0,0,0,0,0,0,0,0,0,0,0.htmlhttp://www.bloomberg.com/apps/quote?ticker=MXWO%3AINDhttp://finance.yahoo.com/q?s=EFAhttp://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/stockmarket/29954/default.stmhttp://www.world-stock-exchanges.net/indices.html#Shttp://www.world-stock-exchanges.net/indices.html#Mhttp://www.world-stock-exchanges.net/indices.html#Ehttp://www.world-stock-exchanges.net/indices.html#Chttp://www.world-stock-exchanges.net/indices.html#AShttp://www.world-stock-exchanges.net/indices.html#Ahttp://www.world-stock-exchanges.net/indices.html#U


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Russell Indexes - leading U.S. equity index family for institutional investors.

Russell 3000 Index - measures the performance of the largest 3000 U.S. companies representingapproximately 98% of the investable U.S. equity market.

S&P 500 - stock market index containing the stocks of 500 Large-Cap corporations. Comprises over70% of the total market cap of all stocks traded in the U.S. Owned by Standard & Poor's.

Africa

Egypt

Case 30 - index of the Cairo & Alexandria Stock Exchange; includes the top 30 companies in terms ofliquidity and activity.

Morocco

MASI Index - stock index of the Casablanca Stock Exchange.

South Africa

Johannesburg All Share Index

Asia and Pacific

S&P ASIA 50

Australia

All Ordinaries - index of shares listed on the Australian Stock Exchange (ASX).

S&P/ASX 200

China

SSE Composite - index of all listed stocks (A shares and B shares) at Shanghai Stock Exchange.

Hong Kong

Hang Seng Indexes - record daily changes of the largest companies of the Hong Kong stock market(represent about 67% of capitalization of the Hong Kong Stock Exchange).

India

BSE SENSEX 30 - includes the 30 largest and most actively traded stocks on the Bombay StockExchange.

S&P CNX Nifty - index for 50 large companies on the National Stock Exchange of India.
http://www.russell.com/indexes/http://www.russell.com/indexes/http://www.russell.com/Indexes/characteristics_fact_sheets/us/Russell_3000_Index.asphttp://www.russell.com/Indexes/characteristics_fact_sheets/us/Russell_3000_Index.asphttp://www.bloomberg.com/apps/quote?ticker=SPX:INDhttp://www.bloomberg.com/apps/quote?ticker=SPX:INDhttp://www.bloomberg.com/apps/quote?ticker=CASE:INDhttp://www.bloomberg.com/apps/quote?ticker=CASE:INDhttp://www.menafn.com/qn_country.asp?country=MAhttp://www.menafn.com/qn_country.asp?country=MAhttp://www.jse.co.za/http://www.jse.co.za/http://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/indices_asia50/2,3,2,6,0,0,0,0,0,0,0,0,0,0,0,0.htmlhttp://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/indices_asia50/2,3,2,6,0,0,0,0,0,0,0,0,0,0,0,0.htmlhttp://www.asx.com.au/http://www.asx.com.au/http://www.bloomberg.com/apps/quote?ticker=AS51:INDhttp://www.bloomberg.com/apps/quote?ticker=AS51:INDhttp://finance.yahoo.com/q?s=%5eSSEChttp://finance.yahoo.com/q?s=%5eSSEChttp://www.hsi.com.hk/http://www.hsi.com.hk/http://www.bloomberg.com/apps/quote?ticker=SENSEX:INDhttp://www.bloomberg.com/apps/quote?ticker=SENSEX:INDhttp://www.bloomberg.com/apps/quote?ticker=NIFTY:INDhttp://www.bloomberg.com/apps/quote?ticker=NIFTY:INDhttp://www.bloomberg.com/apps/quote?ticker=NIFTY:INDhttp://www.bloomberg.com/apps/quote?ticker=SENSEX:INDhttp://www.hsi.com.hk/http://finance.yahoo.com/q?s=%5eSSEChttp://www.bloomberg.com/apps/quote?ticker=AS51:INDhttp://www.asx.com.au/http://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/indices_asia50/2,3,2,6,0,0,0,0,0,0,0,0,0,0,0,0.htmlhttp://www.jse.co.za/http://www.menafn.com/qn_country.asp?country=MAhttp://www.bloomberg.com/apps/quote?ticker=CASE:INDhttp://www.bloomberg.com/apps/quote?ticker=SPX:INDhttp://www.russell.com/Indexes/characteristics_fact_sheets/us/Russell_3000_Index.asphttp://www.russell.com/indexes/


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Indonesia

JSX Composite - index of all stocks traded on the Jakarta Stock Exchange.

Japan

Nikkei 225 - stock market index for the Tokyo Stock Exchange.

Malaysia

FTSE Bursa Malaysia Index

New Zealand

NZX 50

Pakistan

KSE 100 - index acting as a benchmark to compare prices on the Karachi Stock Exchange.

Philippines

PSEi Index - index acting as a benchmark to compare prices on the Karachi Stock Exchange.

Singapore

ST Index

South Korea

KOSPI - index of all common shares on the Korean Stock Exchanges.

Taiwan

TSEC - capitalization-weighted index of all listed common shares traded on the Taiwan Stock Exchange.

Canada

S&P/TSX Composite - index of the stock prices of the largest companies on Toronto Stock Exchange.

Europe

Dow Jones Euro Stoxx 50 - free-float market capitalization-weighted index of 50 Eurozone stocks.Provides a blue-chip representation of Supersector leaders in the Eurozone.

FTSEurofirst 300 Index - free-float capitalization-weighted price index. Measures the performance ofEurope's largest 300 companies by market capitalization. Covers 70% of Europe's market cap.
http://finance.yahoo.com/q?s=%5Ejksehttp://finance.yahoo.com/q?s=%5Ejksehttp://www.nni.nikkei.co.jp/CF/FR/MKJ/http://www.nni.nikkei.co.jp/CF/FR/MKJ/http://finance.google.com/finance?q=INDEXFTSE:FBMFLGhttp://finance.google.com/finance?q=INDEXFTSE:FBMFLGhttp://www.nzx.com/markets/indices/NZ50http://www.nzx.com/markets/indices/NZ50http://www.kse.com.pk/http://www.kse.com.pk/http://www.bloomberg.com/apps/quote?ticker=PCOMP:INDhttp://www.bloomberg.com/apps/quote?ticker=PCOMP:INDhttp://btstocks.asiaone.com/http://btstocks.asiaone.com/http://www.bloomberg.com/apps/quote?ticker=KOSPI:INDhttp://www.bloomberg.com/apps/quote?ticker=KOSPI:INDhttp://finance.google.com/finance?q=TPE:.TWIIhttp://finance.google.com/finance?q=TPE:.TWIIhttp://www.tsx.com/http://www.tsx.com/http://www.stoxx.com/http://www.stoxx.com/http://www.bloomberg.com/apps/quote?ticker=E300:Indhttp://www.bloomberg.com/apps/quote?ticker=E300:Indhttp://www.bloomberg.com/apps/quote?ticker=E300:Indhttp://www.stoxx.com/http://www.tsx.com/http://finance.google.com/finance?q=TPE:.TWIIhttp://www.bloomberg.com/apps/quote?ticker=KOSPI:INDhttp://btstocks.asiaone.com/http://www.bloomberg.com/apps/quote?ticker=PCOMP:INDhttp://www.kse.com.pk/http://www.nzx.com/markets/indices/NZ50http://finance.google.com/finance?q=INDEXFTSE:FBMFLGhttp://www.nni.nikkei.co.jp/CF/FR/MKJ/http://finance.yahoo.com/q?s=%5Ejkse


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OMX Baltic Index - covers stock exchanges in Estonia, Latvia and Lithuania.

OMX Nordic 40 - market value-weighted index of the 40 most-traded stock classes of shares inCopenhagen, Helsinki, Reykjavik and Stockholm.

S&P Europe 350 - free float market cap weighted index. Covers at least 70% of European equitymarket capitalization.

Belgium

BEL20

Czech Republic

PX Index

Denmark

OMX Copenhagen 20

Finland

OMX Helsinki 25

France

CAC 40 - contains 40 stocks selected among the top 100 market capitalisation and the most activestocks listed on Euronext Paris.

Germany

DAX - measures the performance of the Prime Standards 30 largest German companies in terms oforder book volume and market capitalization.

Ireland

ISEQ 20 - represents the 20 most liquid and largest capped equities quoted on the Irish StockExchange.

Italy

S&P/MIB Index - capitalization weighted index developed by S&P and Borsa Italiana.

Netherlands

AEX Index - index of Euronext Amsterdam, consists of the 25 most active securities in the Netherlands.

Poland
http://www.baltic.omxnordicexchange.com/?lang=enhttp://www.baltic.omxnordicexchange.com/?lang=enhttp://omxnordicexchange.com/http://omxnordicexchange.com/http://www.bloomberg.com/apps/quote?ticker=SPEURO:INDhttp://www.bloomberg.com/apps/quote?ticker=SPEURO:INDhttp://www.euronext.com/trader/indicescomposition/composition-4411-EN-BE0389555039.html?selectedMep=3http://www.euronext.com/trader/indicescomposition/composition-4411-EN-BE0389555039.html?selectedMep=3http://www.pse.cz/On-Line/Indexy/http://www.pse.cz/On-Line/Indexy/http://www.omxnordicexchange.com/priceinformation/indexes/Microsite_Index/?InstrumentId=CSEDX0000001376http://www.omxnordicexchange.com/priceinformation/indexes/Microsite_Index/?InstrumentId=CSEDX0000001376http://www.omxnordicexchange.com/priceinformation/indexes/Microsite_Index/?InstrumentId=HEXFI0008900212http://www.omxnordicexchange.com/priceinformation/indexes/Microsite_Index/?InstrumentId=HEXFI0008900212http://www.euronext.com/trader/summarizedmarket/stocks-2549-EN-FR0003500008.html?selectedMep=1http://www.euronext.com/trader/summarizedmarket/stocks-2549-EN-FR0003500008.html?selectedMep=1http://www.bloomberg.com/apps/quote?ticker=DAX:INDhttp://www.bloomberg.com/apps/quote?ticker=DAX:INDhttp://www.ise.ie/http://www.ise.ie/http://www.bloomberg.com/apps/quote?ticker=SPMIB:INDhttp://www.bloomberg.com/apps/quote?ticker=SPMIB:INDhttp://www.euronext.com/trader/summarizedmarket/stocks-2634-EN-NL0000000107.html?selectedMep=2http://www.euronext.com/trader/summarizedmarket/stocks-2634-EN-NL0000000107.html?selectedMep=2http://www.euronext.com/trader/summarizedmarket/stocks-2634-EN-NL0000000107.html?selectedMep=2http://www.bloomberg.com/apps/quote?ticker=SPMIB:INDhttp://www.ise.ie/http://www.bloomberg.com/apps/quote?ticker=DAX:INDhttp://www.euronext.com/trader/summarizedmarket/stocks-2549-EN-FR0003500008.html?selectedMep=1http://www.omxnordicexchange.com/priceinformation/indexes/Microsite_Index/?InstrumentId=HEXFI0008900212http://www.omxnordicexchange.com/priceinformation/indexes/Microsite_Index/?InstrumentId=CSEDX0000001376http://www.pse.cz/On-Line/Indexy/http://www.euronext.com/trader/indicescomposition/composition-4411-EN-BE0389555039.html?selectedMep=3http://www.bloomberg.com/apps/quote?ticker=SPEURO:INDhttp://omxnordicexchange.com/http://www.baltic.omxnordicexchange.com/?lang=en


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iShares S&P Latin America 40 Index (ILF)

Argentina

MERVAL - index of the Buenos Aires Stock Exchange.

Brazil

Bovespa Index - index of about 50 stocks that are traded on the Sao Paulo Stock Exchange.

Mexico

Indice de Precios y Cotizaciones (IPC) - index of 35 stocks traded on the Bolsa Mexicana deValores.

Global Ranking of NSE

5th

largest derivatives Exchange * 2 nd largest in Index Options

3 rd largest in Stock Futures

3 rd largest in Index Futures

4th largest in terms of trades in equity markets

* Note :- A futures exchange or futures market is a central financialexchange where people can trade standardized futures contracts; that is, acontract to buy specific quantities of a commodity or financial instrument ata specified price with delivery set at a specified time in the future. ...*

A brief on Indian financial system

INDIANFINANCIAL

SYSTEM

BANKS INSURANCE MUTUALFUNDS

STOCKMARKETS

DEBTMARKET
http://finance.yahoo.com/q?s=ilfhttp://finance.yahoo.com/q?s=ilfhttp://www.bloomberg.com/apps/quote?ticker=MERVAL:INDhttp://www.bloomberg.com/apps/quote?ticker=MERVAL:INDhttp://www.bloomberg.com/markets/stocks/movers/bovespa/http://www.bloomberg.com/markets/stocks/movers/bovespa/http://www.bloomberg.com/apps/quote?ticker=MEXBOL:INDhttp://www.bloomberg.com/apps/quote?ticker=MEXBOL:INDhttp://www.bloomberg.com/apps/quote?ticker=MEXBOL:INDhttp://www.bloomberg.com/markets/stocks/movers/bovespa/http://www.bloomberg.com/apps/quote?ticker=MERVAL:INDhttp://finance.yahoo.com/q?s=ilf


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A few terms explained :- FMC : FORWARDS MARKET COMMISSION

The Forward Markets Commission (FMC) is the chief regulator of commodity futuresmarkets in India. As of July 2014 for the year 2014-15, it regulated Rs 17 trillion worthof commodity trades in India. It is headquartered in Mumbai and this financialregulatory agency is overseen by the Ministry of Finance .

SEBI : SECURITIES AND EXCHANGE BOARD OF INDIA

The Preamble of the Securities and Exchange Board of India describes the basic functions ofthe Securities and Exchange Board of India as

"...to protect the interests of investors in securities and to promote thedevelopment of, and to regulate the securities market and for matters connectedtherewith or incidental thereto"

RBI : RESERVE BANK OF INDIA

IRDA : INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA

Insurance Regulatory and Development Authority (IRDA) is an autonomous apex statutorybody which regulates and develops the insurance industry in India. It was constituted by aParliament of India act called Insurance Regulatory and Development Authority Act, 1999 andduly passed by the Government of India.
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Financial_regulationhttp://en.wikipedia.org/wiki/Financial_regulationhttp://en.wikipedia.org/wiki/Financial_regulationhttp://en.wikipedia.org/wiki/Ministry_of_Finance_(India)http://en.wikipedia.org/wiki/Ministry_of_Finance_(India)http://en.wikipedia.org/wiki/Ministry_of_Finance_(India)http://en.wikipedia.org/wiki/Autonomoushttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Parliament_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Parliament_of_Indiahttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Autonomoushttp://en.wikipedia.org/wiki/Ministry_of_Finance_(India)http://en.wikipedia.org/wiki/Financial_regulationhttp://en.wikipedia.org/wiki/Financial_regulationhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/India


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The agency operates from its headquarters at Hyderabad, Telangana where it shifted from Delhiin 2001.

IRDA batted for a hike in the foreign direct investment (FDI) limit to 49 per cent in the insurancesector from the erstwhile 26 per cent. The FDI limit in insurance sector was raised to 49% in July

2014.

PFRDA : PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITYOF INDIA

Pension Fund Regulatory and Development Authority was established by theGovernment of India on 23 rd August 2003 to promote old age income security byestablishing, developing and regulating pension funds, to protect the interests of subscribersto schemes of pension funds and for matters connected therewith or incidental thereto.

*As segregated & governed by ministry of corporate affairs & NSE.*

Listing criteria at NSE

Criteria Initial Public Offering Companies Listed on otherExchanges

Paid up equity capital

(PUEC)/ MarketCapitalisation (MC) / NetWorth

Definition of 'Paid-Up Capital'

The amount of a company's capital

that has been funded by

shareholders. Paid-up capital can

be less than a company's total

capital because a company may

not issue all of theSHARES that it

has been authorized to sell. Paid-

up capital can also reflect how a

company depends on equity

PUEC Rs. 10 cr. and MC

Rs. 25 cr.

About MC:-

The totaldollar MARKET value of all ofa company's outstandingshares. MARKETcapitalization

is calculated by multiplying acompany's sharesoutstanding by thecurrent MARKET

PUEC Rs. 10 cr. and MC

Rs. 25 cr. OR

PUEC Rs. 25 cr. OR

MC Rs. 50 cr. OR

The company shall have anet worth of not less thanRs. 50 cr. In each of thepreceding 3 financial years.
http://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Telanganahttp://en.wikipedia.org/wiki/Delhihttp://www.investopedia.com/terms/m/marketcapitalization.asphttp://www.investopedia.com/terms/m/marketcapitalization.asphttp://www.investopedia.com/terms/m/marketcapitalization.asphttp://www.investopedia.com/terms/m/marketcapitalization.asphttp://www.investopedia.com/terms/m/marketcapitalization.asphttp://www.investopedia.com/terms/m/marketcapitalization.asphttp://www.investopedia.com/terms/m/marketcapitalization.asphttp://www.investopedia.com/terms/m/marketcapitalization.asphttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Telanganahttp://en.wikipedia.org/wiki/Hyderabad,_India


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financing.

Company / Promoters

track record

At least 3 years track record

of either :a) The applicant

seeking listing OR

b) The promoters /promoting companyincorporated in oroutside India

At least 3 years track record

of either :a) The applicant

seeking listing OR

b) The promoters /promoting company,incorporated in oroutside India



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Divident Record / Net Worth /Distributable Profits

- Dividend paid in at least 2 outof last 3 financial yearsimmediately preceding the yearin which the application hasbeen made OR

The networth of the applicantsis atleast Rs. 50 cr. OR

The applicant has distributableprofits in at least 2 out of thelast 3 financial years.

Listing - Listed on any other stockexchange for at least 3 yearsOR listed on the exchangehaving nationwide tradingterminals for at least one year.


Other requirements a) No disciplinary actionby other stockexchanges /regulatory authorityin past 3 years.

b) Satisfactoryredressal mechanism

f) No disciplinary actionby other stockexchanges / regulatoryauthority in past 3years.

g) Satisfactory redressalmechanism for investor


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for investorgrievances

c) Distribution ofshareholding

d) Details of litigationrecord in past 3years.

e) Track record ofDirectors of theCompany

grievances

h) Distribution ofshareholding

i) Details of litigationrecord in past 3 years.

j) Track record ofDirectors of theCompany

k) Change in control of aCompany / utilisation offunds raised from public

About the NCFM

(NSEs Certification in Financial Markets)

Launched in July, 1998, taking into account international experience and theneeds of the Indian financial markets.

Fully automated process of testing, assessing, score reporting

Tests the practical knowledge and skills required to operate in the financialmarkets.

27 certifications are available under NCFM

Tests conducted across the country in over 85 cities

Widely accepted among market intermediaries, institutions and regulators.

More than 1.5 lakh candidates appear for

the examination every year.

NCFM Modules


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Only persons who have passed Capital Market (Dealers) Module of NCFM areauthorized to use the trading system (Cash Segment) of the National Stock Exchange.Circular CMDM

Similarly persons who have passed Derivative Market (Dealers) Module of NCFM areauthorized to use the trading system (F&O Segment) of the National Stock Exchange.Circular DMDM
http://www.nseindia.com/content/ncfm/ncfm_modules.htmhttp://www.nseindia.com/content/ncfm/ncfm_modules.htmhttp://www.nseindia.com/content/ncfm/ncfm_modules.htmhttp://localhost/var/www/apps/conversion/tmp/scratch_8/NCFM%20Circulars/Circular_CMDM_Main.dochttp://localhost/var/www/apps/conversion/tmp/scratch_8/NCFM%20Circulars/Circular_CMDM_Main.dochttp://www.nseindia.com/content/ncfm/ncfm_modules.htmhttp://www.nseindia.com/content/ncfm/ncfm_modules.htmhttp://localhost/var/www/apps/conversion/tmp/scratch_8/NCFM%20Circulars/Circular_DMDM.dochttp://localhost/var/www/apps/conversion/tmp/scratch_8/NCFM%20Circulars/Circular_DMDM.dochttp://localhost/var/www/apps/conversion/tmp/scratch_8/NCFM%20Circulars/Circular_DMDM.dochttp://www.nseindia.com/content/ncfm/ncfm_modules.htmhttp://www.nseindia.com/content/ncfm/ncfm_modules.htmhttp://localhost/var/www/apps/conversion/tmp/scratch_8/NCFM%20Circulars/Circular_CMDM_Main.dochttp://www.nseindia.com/content/ncfm/ncfm_modules.htm


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NCFM Circulars

NCFM Certification Circular No.

Capital Market (Dealers) Module Circular No.550

- Membership Department

Derivative Market (Dealers) Module CIRCULAR NO. 309


NISM Series VI: Depository Operations CertificationExamination

NISM Series I: Currency Derivative CertificationExamination

Circular No. 685


NISM V A: Mutual Fund Distributors CertificationExamination

NSE/MFS/0004/2002

-MUTUAL FUND SERVICE

NISM VII: Securities Operation & Risk managementCertification

The Gazette of India, Part III, Section 4, dated 10 th December 2010, Mumbai

NISM II A & II B: Registrars to an Issue..

Capital Market (Dealers) Module reading purpose :-

To understand the capital market trading operations. To understand the clearing, settlement and risk management processes.

To know about the eligibility criteria for seeking membership.

To learn the other important regulatory aspects.


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Derivative Market (Dealers) Module

To learn the basics of the derivatives market

To understand the use of derivative products in speculating, hedging andarbitraging

To learn the trading, clearing, settlement and risk management in equityderivatives

To learn the regulatory, accounting and taxation issues relating to equityderivatives.

Registration, enrollment, payment of fees for NCFM can be done Online :

For more details please log on to :- http://www.nseindia.com/

Highlights Financial Markets Career Opportunities in :

Mutual Funds

Broking Houses

Financial Planners Financial Analysts

Commodities Markets

Depository Participants

BPOs / IT cos. (finance verticals)

Compliance Officers

Trainers in Financial markets etc.
http://www.nseindia.com/http://www.nseindia.com/http://www.nseindia.com/http://www.nseindia.com/


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Afew more terms explained

About Demat Account :-

In India, shares and securities are held electronically in a Dematerialized (or "Demat")

(/d im t/;) account, instead of the investor taking physical possession of certificates. ADematerialized account is opened by the investor while registering with an investmentbroker (or sub-broker). The Dematerialized account number is quoted for alltransactions to enable electronic settlements of trades to take place. Every shareholderwill have a Dematerialized account for the purpose of transacting shares.

Access to the Dematerialized account requires an internet password and a transactionpassword. Transfers or purchases of securities can then be initiated. Purchases andsales of securities on the Dematerialized account are automatically made oncetransactions are confirmed and completed.

About Trading Account:-

1. An account similar to a traditional bank account, holding cash and securities, and isadministered by an investment dealer.

2. An account held at a financial institution and administered by an investment dealerthat the account holder uses to employ a trading strategy rather than a buy-and-holdinvestment strategy.

Market timings:-

Trading takes place on all days of the week (except Saturdays and

Sundays and holidays declared by the Exchange)

Normal Market Open : 09:00Normal Market Close : 15:30

Closing session is held between 15.50 hours and 16.00 hours

Trading on Currency Derivatives Segment:

9:00 to 17:00 hours
http://en.wikipedia.org/wiki/Share_(finance)http://en.wikipedia.org/wiki/Help:IPA_for_Englishhttp://en.wikipedia.org/wiki/Help:IPA_for_English#Keyhttp://en.wikipedia.org/wiki/Help:IPA_for_Englishhttp://en.wikipedia.org/wiki/Investment_brokerhttp://en.wikipedia.org/wiki/Investment_brokerhttp://en.wikipedia.org/wiki/Shareshttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Passwordhttp://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Passwordhttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Shareshttp://en.wikipedia.org/wiki/Investment_brokerhttp://en.wikipedia.org/wiki/Investment_brokerhttp://en.wikipedia.org/wiki/Help:IPA_for_Englishhttp://en.wikipedia.org/wiki/Help:IPA_for_English#Keyhttp://en.wikipedia.org/wiki/Help:IPA_for_English#Keyhttp://en.wikipedia.org/wiki/Help:IPA_for_English#Keyhttp://en.wikipedia.org/wiki/Help:IPA_for_English#Keyhttp://en.wikipedia.org/wiki/Help:IPA_for_Englishhttp://en.wikipedia.org/wiki/Help:IPA_for_Englishhttp://en.wikipedia.org/wiki/Share_(finance)


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About Prices on quote :-

Open : price at which first trade takes place

High : highest price of the day

Low : lowest price of the day

LTP : last traded price

Previous Close : previous days close price

Formulation for Closing Price :-

Open Price, High Price, Low Price, LTP

Close Price of a share?

Last hours (3:00 to 3:30) weighted average price

(1000 X Rs.100) + (2000 X Rs.101) + (3000 X Rs. 102)

6000

= Rs. 101.35 (Closing Price)

Types of Orders

Market order :Buy or sell orders are to be executed immediately at current

market prices Limit order: Specify prices at which buy or sell orders are executed

Buy : At or lower price

Sell : At or higher price

Stop-loss orders:

Sell stocks when price falls below a stipulated level, to stop further lossesfrom accumulating.

Buy stocks when price rises above a stipulated level, to limit potentiallosses from a short position.


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Concept of Stop Loss orders :-


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Trading halts

% fall / risein Nifty orSensex

Time Action

10% Before 1 PM 1 hour market halt

10% At or after 1 pm but

Before 2.30 PM

an hour market halt

10% At or after 2.30 PM Market shall continue trading

15% Before 1 PM 2 hour market halt

15% At or after 1 pm but

Before 2 PM

1 hour market halt

15% At or after 2 PM Trading will halt for the remainder of theday

20% Trading will halt for the remainder of theday


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Concept of Securities Transaction Tax for CM Segment

STT is levied on all transactions of sale and / or purchase

of equity shares and units of equity oriented fund and sale

of derivatives entered into in a recognised stock exchange.

Transaction Charges Capital markets

Total Traded Value in a month Transaction Charges (Rs. Per Lakh ofTraded Value)

Up to First Rs. 1250 crores Rs. 3.25 each side

More than Rs. 1250 crores upto Rs. 2500crores (on incremental volume)

Rs. 3.20 each side


Rs. 3.15 each side


Rs. 3.10 each side


Rs. 3.05 each side

Exceeding Rs. 15000 crores Rs. 3.00 each side


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Transaction Charges F&O

Total Traded Value in a month Transaction Charges (Rs. Per Lakh ofTraded Value)

Up to First Rs. 2550 cores Rs. 1.90 each side


Rs. 1.85 each side


Rs. 1.80 each side

Exceeding Rs. 15000 crores Rs. 1.75 each side

Process for logging to the trading system

A valid combination of :

User ID

Trading Member ID

Password required


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Concept of Active & Passive Orders

Active Order When any order enters into the system, it is an active order. If itfinds a match trade takes place.

Passive Order An order which has entered into the system, does not find amatch and is sitting in the system.

Concept of Price Time Priority

Buy Side :-Firms that buy securities and assets for their own or their clients' accounts are said tobe on the buy side . Institutional investors like mutual FUNDS , pension FUNDS , hedgefunds, private equity funds, trusts, insurance companies and proprietary traders makeup the vast majority of the buy side .
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Documents

Extra Class on Stock Exchange Overview