This document provides an overview of the Indian securities market, including the primary and secondary markets as well as the leading stock exchanges of NSE and BSE. It discusses various types of traded securities like stocks, bonds and commodity futures. Key aspects of trading like order placement, trade execution, clearing and settlement are explained. The document also covers trading systems, indices, and segments for cash and derivatives markets. References for market data and news are provided.
2. INTRODUCTION
ï‚— CAPITAL MARKET,FNO MARKET,COMMODITY MARKET.
 SHARES,SCRIPS,STOCKS,BONDS,GOVT.SEC.,ETF’S,FNO
CONTRACTS IN STOCKS,BULLIONS,CRUDEOIL,BASE
METALS,GROSSERY AND AGRO SCRIPS,CURRENCY, ETC. ARE
TRADED.
INDIAN SECURITIES
MARKET
PRIMARY MRKT.
SECONDARY MRKT.
3. INDIA’S LEADING STOCK
EXCHANGES
WHAT ARE STOCK EXCHANGES?
ORGANIZED MARKET PLACE OF SECURITIES FOR THE TANSACTION OF
ORDERS BY TM’S.
LEADING STOCK EXCHANGES IN INDIA
NSE & BSE
APART FROM THESE THERE ARE MANY OTHER REGIONAL STOCK
EXCHANGES:
KOLAKATA,CHENNAI,MAGADH,PUNE,BHUBANESWAR,AHMEDABAD,BA
NGLORE,COCHIN,COIMBATORE,DELHI,GUAHATI,HYDERABAD,JAIPUR,L
UDHIANA,MP,MANGALORE,MEERUT,SAURASRTA
KUTCH,UP,VADODARA.
THESE ARE CONNECTED THROUGH VSAT’S.
OTHER STOCK EXCHANGES:
MCX,NCDEX,ICEX
(COMMODITY FUTURES ARE TRADED HERE.EX.:BULLION STOCKS,BASE
METALS STOCKS,GROSERRY PRODUCTS,CRUDE OIL,CURRENCY,ETC.)
4. NSE & BSE
PRIMARY INDICES
NSE:NIFTY(COMPRISES OF 50 STOCKS)
OTHER INDICES: S&P CNX IT,BANK NIFTY
BSE:SENSEX(COMPRISES OF 30 STOCKS)
OTHER INDICES: METAL,POWER,REALTY,CG,FMCG,FMCD,AUTO
USES OF INDICES:
MEASURING MARKET TRENDS DEPENDING UPON THE GENERAL STOCK PRICE
MOVEMENT.
LISTED STOCKS IN NSE:1500+
LISTED STOCKS IN BSE:6000+
(ONLINE TRADING COMMENCED ON JUNE 01,2000)
6. TRADING IN CAP.MRKT.
NEAT
TRADINGS ARE MDE THROUGH VSAT’S.
ORDER DRIVEN MRKT.
TRDING SYS. OPERATES ON A STRICT PRICE & TIME PRIORITY
NORMAL MARKET;
 REGULAR LOT MRKT.
 ODDLOT MRKT.
 RETLDEBT MRKT.
 AUCTION MRKT.
SS SYS:
SELL FIRST ,THEN BUY IT.(ON AN INTRADAY BASIS,IF NOT SQARED OFF
WITHIN THE DAY, TRADES ON THE PARTICULAR SCRIP WILL GO ON
AUCTION,PENALTY UPTO 20% WILL BE CHARGED)
CIRCUITS:
UPTO 5%,10%,20% ON STOCKS AND 10%,15%,20%, ON INDICES.)
10. CLEARING & SETTELMENT MECHANISM
NSCCL
 CLEARING & SETTLEMENT MECHANISM INVOLVES;
NSE,CM’S,CB’S,DEPOSITORIES.
 T+2 ROLLING SYSTEM FOR PAY IN/PAY OFF OF FUNDS/SEC(WITH EFFECT
FROM APRIL,2003).
 AUCTION & SHORT DELIVERY SETTLEMENT
DEPOSITORIES
 NSDL
 CDSL
ACCOUNT MAINTAINED BY CLIENTS:
 POOL A/C
 DEMAT A/C.
BROKERAGE(CALCULATED DEPENDING UPON
INTRADAY & DELIVERY BASIS)
MAX. BROKERAGE 2.5%
SUCH AS .0002% IN INTRADAY & .002% IN DELIVERY BASIS.
11. TRADING IN FNO SEGMENT
 ALL ARE IN THE FORM OF CONTRACTS.
 CONTRACT VALITY;3 MONTHS(N.M,M.M,F.M CONTRACT)
 EXPIRY DATE :LAST THURSDAY OF EVERY MONTH;
 NO PRICE BANDS/CIRCUITS.
 TRADED IN LOTS.
 LOT QUANTITY SPECIFIED BY THE EXCH.
 VALUE OF THE LOT QUANTITY MUST BE >RS.2,00,000.
 SS TRADES CAN BE KEPT UPTO 90 DAYS.
 AVAILABILITY OF SPAN MARGINS,SPECIFIED BY THE EXCHANGE.
 SPECULATION,HEDGING,ARBITRAGE ARE DONE HERE.
 HEDGES ARE DONE WITH OPTIONS.
12. FNO SEGMENT TRADING
 OPTIONS ARE OF 2 TYPES;CALL OPTION & PUT OPTION.
 ITM,ATM,OTM OPTIONS
 NEED TO PAY THE FULL PREMIUM MONEY,NO CHANCE OF GETTING
LIMITS OR MARGINS.
NSCCL:
CLEARING & SETTLEMENT ARE DONE ON T+1 BASIS
BROKERAGES:
 NO VARIATION OF BROKERAGES DEPENDING UPON INTRADAY &
POSITIONAL BASIS.BROKERAGE COMPUTED AS ON INTRADAY BASIS.
14. MY INVENTED FORMULA
ï‚— THIS FORMULA IS USED ON AN INTRADAY BASIS:
BUY ABV.={(H-L)/2}+L; SL={(H-L)/3}+L
BUY ONLY WHEN:
1.THE MRKT AND THE SCRIP BASED INDEX IS +VE.
2.THE BUY LEVEL IS ABV. THE OPEN,CLOSE & AVRG.
3.HEAVY VOLUMES ARE THERE
SELL BELOW={(H-L)/3}+L ; SL={(H-L)/2}+L
SELL ONLY WHEN:
1.THE MARKET & THE SCRIP BASED INDEX IS –VE.
2.THE SELL LEVEL IS BELOW THE OPEN,CLOSE & AVRG.
3.HEAVY VOLUMES ARE THERE
(N.B.:METASTOCK S/W IS USED FOR CHARTING)