Equity Market           By Hitesh Mali/ M.N.Jayprakash           Vice President of Motilal Oswal   What is Equity?   Fea...
   Equity is Based on       Indian Growth Story       Indian Stock Market   Demate Accounts       NSDL (National Secu...
Low participation is also a Growth     Opportunity in Equity   Equity - 11728          Equity - 65000   Insurance - 195...
The Big Opportunity in EquityCountry   Investors   Population   %China       152         1,325      11%Korea       4.6    ...
Asset Classes in IndiaBank Deposit/FD                                   Gold Silver                                    Rea...
Intermediaries Comes in Various Shapes & SizeIntermediary           Advantages                  Disadvantages1. Agent 80% ...
Wealth Creation Cycle   Research       Advisory   Distribution     Process     Excellent   Technology   Operation    Empl...
Evolution from Broker to Financial                 Planner   Position from a one stop financial service    destination  ...
Why we need Stock Market???               Stock Market               Common player forCapital        buyers & SellersRequi...
Ministry of FinanceIRDA                SEBI                                     RBIInsurance      Stock Exchange/         ...
What are Market Activities???             NSDL     DP                       DP              CC   Brokers                  ...
Derivatives????      Future                                      OptionUnlimited profits &               Call             ...
Investors                  Trader1. Long term             1. Short term2. Follows Fundamental   3. Follows TechnicalAnalys...
Debt Market            - By Abhiroop Mukhrajee           Fund Manager Motilal Oswal   Case for Government Borrowing     ...
Types of Debt Securities   Government Securities       Long term market borrowing of the government       Largest segme...
Bond Price Dynamics   Bond market prices are inversely related to the market    yields, when market yields go up, bond ma...
Factors Affecting Interest Rates   Macro & Micro economic scenarios   Inflation expectations   Money supply in the syst...
Structure of Debt Market   Government Market   Money Market   Corporate Bonds   Derivatives
Government Bonds                                         State Government Central Government                              ...
   Money Market               Corporate Bonds       Call Money                 Corporate Bonds       CBLO            ...
Derivatives   Derived from another Security or overnight rates   Interest rate swaps   Traded in OTC market   Used mai...
   Trading       Done by telephonic negotiation between        counterparties (OTC Market)       Order Matching Reporte...
 www.ccilindia.com– Debt Market www.nseindia.com – Equity Market Thank You Krunal & Raxit
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Workshop equity debt market

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Workshop equity debt market

  1. 1. Equity Market By Hitesh Mali/ M.N.Jayprakash Vice President of Motilal Oswal What is Equity? Features  Entitled to a portion of the company’s profits share and claim on assets  Tradability  Limited Liability
  2. 2.  Equity is Based on  Indian Growth Story  Indian Stock Market Demate Accounts  NSDL (National Securities Depositories Ltd)  Investors Accounts – 11966928  Dp Service Center - 13969  CDSL (Central Depositories Securities Ltd)  Investors Accounts – 7862627  Dp Service Center - 10675
  3. 3. Low participation is also a Growth Opportunity in Equity Equity - 11728  Equity - 65000 Insurance - 19502  Insurance - 53860 Mutual Fund – 2219  Mutual Fund – 11482 FY 2010  FY 2020
  4. 4. The Big Opportunity in EquityCountry Investors Population %China 152 1,325 11%Korea 4.6 47 10% India 16 1,190 1%
  5. 5. Asset Classes in IndiaBank Deposit/FD Gold Silver Real Estate Equity Player In Market Regional Broker Bank Broker Discount Broker Advisories
  6. 6. Intermediaries Comes in Various Shapes & SizeIntermediary Advantages Disadvantages1. Agent 80% to 90% Personalized service, comes & picks up your Cannot advice across multiple asset classes form as & when you wish low cost service provider2. Internet Ease of transacting anytime, anywhere in No personal touch the globe3. Pure Advisor No blas towards products For execution, you have since he/she does not to approach someone sell them else4. Financial Planner Well trained to after you advice across multiple If your portfolio size is small, you may not be asset classes able to afford him5. Brokerage House Large organization with strong research Lacks personal touch relationship managers/Bank capabilities ability to could change very oftern advice across assets
  7. 7. Wealth Creation Cycle Research Advisory Distribution Process Excellent Technology Operation Employment Customer
  8. 8. Evolution from Broker to Financial Planner Position from a one stop financial service destination Focus on grater wallet share Standalone brokers may become defunct in the next decade
  9. 9. Why we need Stock Market??? Stock Market Common player forCapital buyers & SellersRequirement Requirement of capitalof a Company ProvidersLong term Long term/Short/Medium Sources of Investor can convert their new capital stock into cash for companies
  10. 10. Ministry of FinanceIRDA SEBI RBIInsurance Stock Exchange/ Banks/ NBFC Broker/ Advisors
  11. 11. What are Market Activities??? NSDL DP DP CC Brokers Broker Sellers Buyers Sellers
  12. 12. Derivatives???? Future OptionUnlimited profits & Call PutUnlimited Loses Buyer Limited losses & Buyer Seller Unlimited gains Seller Limited Loses & Unlimited gains Limited gains & Unlimited gains Unlimited Loses & Limited loses
  13. 13. Investors Trader1. Long term 1. Short term2. Follows Fundamental 3. Follows TechnicalAnalysis Analysis3. Stay invested as long 3. Trades with sharpas home is continuing loses & price Target
  14. 14. Debt Market - By Abhiroop Mukhrajee Fund Manager Motilal Oswal Case for Government Borrowing  Fund required to run operations of government  Salaries of government employees  Day to day activities  Capital expenditure
  15. 15. Types of Debt Securities Government Securities  Long term market borrowing of the government  Largest segment of the debt market  Issued by RBI & Subscribed banks, primary dealers & Institutions Corporate Bonds  All listed debt securities issued by banks, PSU undertakings, Municipal Corporations, Bodies Corporate & Companies  Issued by the above entities mostly through private placement route
  16. 16. Bond Price Dynamics Bond market prices are inversely related to the market yields, when market yields go up, bond market price falls & Vice Versa The sensitivity of bond’s market price to change in yield is given by its modified duration, higher the duration of the bond, more sensitivity it is to yield changes, vice versa
  17. 17. Factors Affecting Interest Rates Macro & Micro economic scenarios Inflation expectations Money supply in the system Monetary & Fiscal policies Global economic conditions Crude oil prices Currency situation
  18. 18. Structure of Debt Market Government Market Money Market Corporate Bonds Derivatives
  19. 19. Government Bonds State Government Central Government State Development Loan T-Bill CMB FRBG-Sec 10yr 90,182, 90,182, Upto10 yr 364 days 364 days 10yr
  20. 20.  Money Market  Corporate Bonds  Call Money  Corporate Bonds  CBLO  Commercial Papers  REPO  Certificate of Deposits  Certificate of Deposits  Commercial Papers
  21. 21. Derivatives Derived from another Security or overnight rates Interest rate swaps Traded in OTC market Used mainly as tool of hedging against interest rate risks Tenures – 3m, 6m, 1yr, 3yr, 5yr, 7yr & 10yr 1 to 5 yr segments are the most actively traded
  22. 22.  Trading  Done by telephonic negotiation between counterparties (OTC Market)  Order Matching Reported on the Negotiated Dealing System Risk involved in Debt Market  Credit risk or Issuer risk It is the risk that the issuer will not pay the coupon income and/or the maturity amount on the specified dates.  Interest rate risk Interest rate risk affects investors in bonds who do not plan to hold till maturity
  23. 23.  www.ccilindia.com– Debt Market www.nseindia.com – Equity Market Thank You Krunal & Raxit

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