Market for securities new
- 2. PROVIDE MONETARY SUPPORT MARKET IN WHICH MONEY AS WELL AS MONETARY CLAIMS ARE TRADED IN COMPONENTS ARE: 1. MONEY MARKET WHERE LIQUID FUNDS (CASH) AS WELL AS HIGHLY LIQUID SECURITIES ARE TRADED FOR A VERY SHORT TERM PERIOD PARTICIPANTS MAINLY BANKS & FINANCIAL INSTITUTIONS; OTHERS MFs, PF TRUSTS, INSURANCE CO, CORPORATE HOUSES, NBFCs AND RBI 2. CAPITAL MARKET FINANCIAL MARKETS
- 3. MARKET WHERE COMPANIES RAISE FUNDS DIRECTLY FROM INVESTORS & O/S SECURITIES BOUGHT & SOLD UNDER SEBI SCRA, COMPANIES ACT, SEBI ACT, FEMA ETC TWO TYPES: PRIMARY MARKET SECONDARY MARKET (STOCK MARKET) CAPITAL MARKET
- 4. MARKET PROVIDES PLATFORM FOR NEW & OLD COMPANIES TO RAISE FUNDS BY ISSUING SECURITIES (EQUITY SHARES, PREF SHARES, BONDS, DEBENTURES ETC) DIRECTLY TO THE INVESTORS BRIDGE BETWEEN SAVINGS AND INVESTMENTS ISSUED THRU FOLLOWING MECHANISMS: PRIMARY MARKET
- 5. ISSUE SYSTEM OF PUBLIC LTD CO GENERAL PUBLIC SUBSCRIBE TOWARDS CAPITAL OF THE COMPANY GEN PUBLIC INDIVIDUALS, INSTITUTIONS, MFs, NRIs ETC SHOULD BE LISTED WITHIN 10 WEEKS FROM CLOSE OF ISSUE & STOCK EXCHANGE NAME IN PROSPECTUS AT PAR, PREMIUM OR DISCOUNT ISSUE PRICE DECIDED BY CO FORMALITIES OF SEBI TO BE COMPLETED 1. PUBLIC ISSUE
- 6. IF EXISTING CO WANTS TO ISSUE SHARES SHUD BE ISSUED TO ITS EXISTING SHAREHOLDERS ON A PROPORTIONATE BASIS IF SUBSEQUENT TO ITS PUBLIC ISSUE ONLY IF SHAREHOLDERS DENY ISSUED TO GENERAL PUBLIC BUT AFTER PASSING RESOLUTIONS U/S 81 OF COMPANIES ACT 2. RIGHTS ISSUE
- 7. ISSUING COMPANY APPROACHES THE INVESTORS INDIVIDUALLY MODE USED BY PVT LTD COMPANIES (SINCE CANT GO FOR ADS FOR SUBSCRIPTION) SOMETIMES BY PUBLIC LTD CO ALSO CANT BE DONE ON A STOCK EXCHANGE BUT RULES ARE AMENDED 3. PRIVATE PLACEMENT
- 8. SYSTEM OF ISSUING SHARES TO GENERAL PUBLIC PRICING DONE BY INVITING BIDS FROM THE PUBLIC FINAL PRICE DECISIONS, BIDS ACCEPTANCE & BOOK RUNNING AS PER SEBI RULES DIFFERENT INVESTORS QIBs, NON-INDIVIDUAL BUYERS & INDIVIDUAL BUYERS CUT OFF POINT ONLY IF BID AT OR ABOVE CUT OFF POINT ALLOTTED; OTHERWISE DISQUALIFIED & MONEY REFUNDED LISTED ON A RECOGNISED STOCK EXCHANGE 4. PUBLIC ISSUE THROUGH BOOK BUILDING
- 9. THRU OTCEI COMPANY NEGOTIATES WITH ATLEAST ONE DEALER TO BUY ENTIRE ISSUE AT A SPECIFIED PRICE INTENTION IS DEALERS WILL SELL SHARES TO GENERAL PUBLIC IN FUTURE DEALER NO CONTROL OVER MGMT DEALER SELLS EITHER THRU STOCK EXCHANGE OR DIRECTLY TO PUBLIC 5. BUYOUT DEALS
- 10. MARKET WHERE O/S SECURITIES OF COMPANIES ARE TRADED AS PER SCRA ALL TRANSACTIONS IN SECURITIES OTHER THAN SPOT TRANSACTIONS MUST BE DONE IN A RECOGNISED STOCK EXCHANGE STOCK EXCHANGE SECONDARY MARKET SECONDARY MARKET
- 11. REGULATED MARKET PLACE WHERE LISTED SECURITIES BOUGHT & SOLD THRU MEMBERS OF SE (BROKERS), BY TWO-WAY QUOTATION, TRADE SETTLEMENT AS PER BYE-LAWS OF SE MUST HAVE RECOGNITION OF CENT GOVT UNDER SEC 4 OF SCRA, 1956 AT PRESENT 23 SE IN INDIA (MAJOR TRANSACTIONS IN BSE & NSE) ALL TRADES ON THE FLOOR OF SE BECOME LEGAL & VALID & NO DEFAULT RISK BCOS SE ASSUMES AS A COUNTER PARTY STOCK EXCHANGE
- 12. BOMBAY STOCK EXCHANGE (BSE): FROM 1861 TO 1875 UNDER BANYAN TREE SHARES BOUGHT & SOLD THRU OUTCRY ASSOCIATION OF THESE INDIVIDUALS IN 1875 NATIVE SHARE AND STOCK BROKERS ASSOCIATION VOLUNTARY & NON-PROFIT ORGN REGD AS BSE IN 1887 AS SE THE STOCK EXCHANGE, MUMBAI TILL 1995 96 TRADING AS OUTCRY IN TRADING HALL (TRADING RING) HISTORY OF STOCK EXCHANGE
- 13. ONLY REPS INSIDE RING MEMBERS GIVEN CABINS AROUND RING SHOUT FOR QUOTATION IF NEGOTIATION OVER ORDER INTO A TRADE TELECOM FACILITIES & ONLINE FACILITIES COUNTERS FOR PROMINENT SHARES MEMBERS INFORM TRADE TO SE OFFICIALS FOR SHARE PRICE DISSEMINATION DISPLAY OF PRICES ON PTI SCREEN REPORTING TO SE OFFICIALS AT THE END OF TRADING SESSION SETTLEMENT THRU CLEARING HOUSES
- 14. NO PHYSICAL PRESENCE IN RING SYSTEM, NET CONNECTIVITY & SOFTWARES EVERY MEMBER HAS COMPUTER SOFTWARE TRADERS WORK STATION ORDERS ON OPEN DISPLAY COMPUTERS MATCH ORDERS W.R.TO PRICE & TIME DISPLAY IMMEDIATE CONFIRMATION CLEARING HOUSES DO NETTING FOR TRADE SETTLEMENTS NEW SYSTEM OF ONLINE TRADING
- 15. AHMEDABAD STOCK EXCHANGE (1894) CALCUTTA STOCK EXCHANGE (1908) MADRAS STOCK EXCHANGE (1921) HYDERABAD STOCK EXCHANGE DELHI STOCK EXCHANGE (1947) AND OTHERS ALL GIVEN TEMP RECOGNITION FOR FIRST 5 YRS EXCEPT BSE
- 16. INDIA DIFFERENT ORGN SET-UPS LIKE: VOLUNTARY NON-PROFIT ORGN BSE & ASE PVT LTD CO LTD WITH GUARANTEE MSE & HSE JOINT STOCK CO CSE, DSE, BANGALORE SE BUT NOW SEBI CORPORATISATION OF SE IE., ALL IN CO FORM SEBI DEMUTILISATION OF SE IE., MERGING SE LOSS MAKING WITH PROFIT MAKING ORGANISATION OF SE
- 17. TRADING THRU MEMBERS / BROKERS ELIGIBILITY NET WORTH, INITIAL SECURITY, COLLATERAL SECURITY AND ANNUAL SUBSCRIPTION INITIAL SECURITY DIFFERS FOR CAPITAL MARKET, FUTURES AND OPTIONS, WHOLE DEBT MARKET ETC ATLEAST 2 YEARS OF EXPERIENCE IN DEALING SECURITIES FEATURES OF SE
- 18. LISTING REQUIREMENTS: CO MIN ISSUED & PAID UP CAPITAL OF 3 CR (BSE 10 CR) OUT OF ISSUED CAPITAL ATLEAST 25% TO GENERAL PUBLIC; NO SINGLE SHAREHOLDER SHUD HOLD MORE THAN 0.5% OF PAID-UP CAPITAL CO SHUD DEPOSIT 1% OF ISSUE AMOUNT WITH REGIONAL SE AS SECURITY DEPOSIT (REGIONAL SE NEAREST & REGD) TRADING IN LISTED SECURITIES ONLY
- 19. INITIAL & ANNUAL LISTING FEE TO BE PAID TO FINALISE ALLOTMENT WITHIN 30 DAYS FROM ISSUE CLOSURE PROVIDE DIRECTORS & SHAREHOLDERS MEETING INFO IF HELD
- 20. PREVIOUSLY RATES GIVEN BY OPEN OUTCRY NOW ONLINE TRADING SYSTEM OPEN SYSTEM TO PROVIDE COMPETITIVE RATE TO BUYERS AND SELLERS OPEN SYSTEM OF QUOTATION
- 21. COMPLETELY REGULATED ALL TRANSACTIONS TO BE REPORTED TO SE & SETTLED ACCORDING TO THE RULES OF THE EXCHANGE SE REGULATES TRADE TIMINGS, TYPES OF TRADES, ORDER AND TRADE SYSTEM, SETTLEMENT PROCEDURE, MARGIN SYSTEM AND ACTIVITIES OF MEMBER BROKERS
- 22. SETTLEMENT THROUGH SE EVERY SE HAS A DEPT CALLED CLEARING HOUSE RESPONSIBLE FOR CARRYING OUT SETTLEMENT OF TRADES SETTLEMENT EXCHANGE OF MONEY VALUE AND SECURITIES BETWEEN BROKERS
- 23. FUNCTIONS OF THE SE ENROLMENT OF MEMBERS QUALIFICATION, INITIAL DEPOSIT, ANNUAL MEMBERSHIP FEE MAKE BYE-LAWS OF THE SE: FOR LISTING & DE- LISTING, MEMBERSHIP, TRADING RULES & PROCEDURES, RULES FOR MARGINS, SETTLEMENT RULES FOR CLEARING HOUSE, ARBITRATION RULES, CHECK FOR GOOD-BAD DELIVERIES, MISCELLANEOUS PROVIDE FOR LISTING OF SECURITIES MIN ISSUE SIZE, MIN PUBLIC OFFER, MANNER OF ALLOTMENT ETC
- 24. PROVIDE FACILITIES FOR TRADING EVERY SE HAS OBJECTIVES TO PROVIDE FOR TRADING PROVIDE CLEARING SERVICES ALL TRADES TAKEN PLACE ON THE FLOOR OF SE TO BE SETTLED THRU INTERVENTION OF SE SE ASSUMES AS COUNTER PARTY SO THAT NONE OF THE PARTY SUFFER LOSS DUE TO DEFAULT THRU DEPT CLEARING HOUSE DO NETTING OF TRADES PUBLICATION OF INFO DISSEMINATION TO HELP MEMBERS & INVESTORS TO TAKE EFFECTIVE DECISION; INFO LIKE: DAILY RATE LIST, CORP ACTION INFO, LISTING RULES, TRADING RULES, MEMBERSHIP RULES, CO INFO RECEIVED (MERGER, MEETING, BOOK CLOSURE), INDEX, GUIDELINES FOR GOOD-BAD DELIVERIES AND OTHER EXCHANGE- SPECIFIC INFO
- 25. ARBITRATION SEPARATE CELL FOR DISPUTER SETTLEMENT B/W MEMBERS OR B/W MEMBERS AND INVESTORS/CLIENTS CELL FINAL DECISION & BINDING ON MEMBERS INVESTOR EDUCATION AND INVESTOR PROTECTION CLASSES OR PUBLISH INFO IN NEWSPAPERS TO EDUCATE & FOR INVESTOR PROTECTION; INVESTOR PROTECTION FUND BY ALL SE PROVIDE FOR LOSS OF BROKERS DEFAULT
- 26. TOPICS FOR SEMINAR MARKET MECHANISM FUNCTIONAL SPECIALISATION OF BROKERS CAPITAL MARKET REGULATOR CCI SEBI DEPOSITORY SYSTEM RECENT DEVELOPMENT IN THE STOCK MARKET DEPOSITORIES IN INDIA OTCEI FOREIGN STOCK EXCHANGES