SECURITIES MARKET

Presented byRabia SagheerGNVS

Marketable securities

securities or debtsto be sold or redeemed within a yearare financial instrumentscan be easily converted to cash include commercial paper, banker's acceptances, treasury bills and other money market instruments such as: *government bonds, *common stock or, *certificates of deposit (a saving certificate bears a maturity date, a specified fixed interest rate and can be issued in any denomination)

REGULATOR

established in the year 1988statutory powers on 12 April 1992 through SEBI Act, 1992passed by Indian Parliament

Bandra Kurla Complex in Mumbai,Regional Offices in New DelhiKolkata,Chennai  and, Ahmadabad respectively. has opened local offices at Jaipur and Bangalore

HEADQUATERS

Image of SEBI Building

POWERS

WHY?

lot of malpractices started in stock marketssuch as • price rigging, • unofficial premium on new issue, and • delay in delivery of shares, • violation of rules and regulationscustomers were losing confidence and faith

To impose monetary penalties can ask any informationcan introduce specific rulesAnd many more

The securities market has two segment:

MARKET SEGMENTS

PRIMARY MARKET

SECONDARY MARKET

also known as new issue market (NIM).provides the channel for creation and sale of new securitiesissued by public ltd companies or by government undertakingspublic issue: anyone cansubscribe itPrivate placement: issueis made available to a selected group of persons

Also known as stock marketdeals in securities previously issuedmarket enables participants to changes in their assessment of risks and returns.Once the new securities are issued in the primary market they are traded in the secondary market.

secondary market operates through two mediums, namely,the over-the-counter (OTC) market &exchange-traded market.

OTC markets are informal markets where trades are negotiated.most of the trades in the government securities are in the OTC marketrefer to the market for any used goods or assets, or an alternative use for an existing product or asset securities are sold by and transferred from one investor to another

PRIMARY MARKET

SECONDARY MARKET

securities are issued by the company directly to investorscompany receives the money and issues new security certificates to the investorsP. Issues are used by companies for the purpose of setting up new business expanding or, modernizing the existing businessperforms the crucial function of facilitating capital formation in the economy

ELEMENTS

The four important elements of securities markets are

the investors: An investor is the backbone of the capital market of any economy

the issuers: those who issues the securities ex: companies the intermediaries: refers to those who are in the

business of managing:• individual portfolios,• executing orders, • dealing in or distributing securities and providing

information relevant to the trading of securities.

regulators. ensures that the market participants behave in a desired manner• so that securities markets continue to be a major source of finance for corporategovernment and, the interest of investors are protected.

I.National Stock Exchange of India Ltd.(NSE) and II.Bombay Stock Exchange (BSE) provide trading in the equity futures & options in India

Two exchanges operated from Mumbai

• is Indian stock exchange located in Mumbai, Maharashtra India

• Established in 1875• Considered to be Asia’s fastest stock

exchange• 200 ms speed• One of India’s leading and oldest stock ex.

In south Asia

BSE: Bombay stock exchange

NSE: NATIONAL STOCK EXCHANGE

• Is a leading stock exchange• Located in Mumbai • Was established in 1992• Is the first demutualized electronics exchange in the

country• Has market capitalization of more than US $1.65

trillion

THANK YOURabia Sagheer