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1. Financial market env. In India

2. Growth and Evalution of Stock mrket
in India
Process of liberlization and de-regulation that begin
in late 1980’s has directly effected the process of
capital market of the country.
No. of steps were taken by the Govt. in order to
bring aling economy back to rails. The extent of
growth can be gauged from the fact that amount
realised by the primary market which has lower’s
in 70’s and during the next up coming year’s. it
went up high India has the highest no. of listed
company’s in the world and this no. as on the
date more then 10,000 company’s app.

3. An Overview about Stock Market
• What are Markets?
• What are shares?
• What is a stock exchange?
• Who is a broker?
• What is a Demat A/c?
• Buying and selling of dematerialised securities
• How to receive income from shares?
• How much should you invest?
• How to make investment decisions?
• How to track your investments?

4. What are Markets?
• A stock market is a market for the trading of company
stock/ shares, and derivatives. This includes securities listed
on a stock exchange as well as those only traded privately.
Market is a place where buyers and sellers of securities can
enter into transactions to purchase and sell shares, bonds,
debentures etc.
• 1.1 Primary markets: The primary market is that part of
the capital markets that deals with the issuance of new
securities.
• 1.2 Secondary markets: The secondary market is the
financial market for trading of securities that have already
been issued in an initial private or public offering. In the
secondary market, securities are sold by and transferred
from one investor or speculator to another.

5. 2. What are shares?
• A share is one of a finite number of equal
portions in the capital of a company, entitling the
owner to a proportion of distributed, non-
reinvested profits known as dividends and to a
portion of the value of the company in case of
liquidation. Equity is a share in the ownership of a
company. It represents a claim on the company’s
assets and earnings. As you acquire more stock,
your ownership stake in the company increases.
The terms share, equity and stock mean the same
thing and can be used interchangeably.

6. 3. What is a stock exchange?
• Securities contracts act of 1956 defines,
“an association, organization or body
of individuals, incorporation, established for
the purpose of assisting, regulating and
controlling business in buying, selling and
dealing in securities”

7. Meaning
• Stock exchange is a place where buyers and
sellers are come together for undertaking
transactions involving sale of securities.

8. Function of Stock Exchange
• It provide ready market for securities
• It provide liquidity
• It helps in price discovery of securities.
• It insure low cost of raising finance issue of new market instruments
in the market
• Helps in capital generation process.
• Spreads equity cult & saving habits.
• Member of stock exchange provide investment policy.
• Promotion of investment.
• Help capital formation.
• Give mobility to capital.
• Exercise control over the working of companies.
• Marketing of new issues.

9. In India overview
• There are 23 stock exchanges in the India. Mumbai's
(earlier known as Bombay), Bombay Stock Exchange is
the largest, with over 6,000 stocks listed. The BSE
accounts for over two thirds of the total trading
volume in the country. Established in 1875, the
exchange is also the oldest in Asia. Among the twenty-
two Stock Exchanges recognized by the Government of
India under the Securities Contracts (Regulation) Act,
1956, it was the first one to be recognized and it is the
only one that had the privilege of getting permanent
recognition ab-initio.

10. Name of Indian stock exchange:
• 1.Bombay stock exchange
• 2.national stock exchange(Mumbai)
• 3.Banglore stock exchange
• 4.Utter Pradesh stock exchange (Kanpur)
5.Magadh stock exchange(Patna)
• 6.Ahmedabad stock exchange
• 7.vadodara stock exchange(Baroda)
8.Bhubaneswar stock exchange
• 9.Calcutta stock exchange(kolkata)
• 10.madras stock exchange

11. • 11.Cochin stock exchange
• 12.coimbatore stock exchange
• 13.Gauhati stock exchange
• 14.Hydrabad stock exchange
• 15.Madhya Pradesh stock exchange(indore)
16.Jaipur stock exchange
• 17.Ludhina stock exchange
• 18.Mangalore stock exchange
• 19.Pune stock exchange
• 20.saurashtrakutch stock exchange

12. Guidelines of listing
• Checklist
• Listing means admission of securities to dealings on a recognised stock exchange.
The securities may be of any public limited company, Central or State Government,
quasi governmental and other financial institutions/corporations, municipalities,
etc.
• The objectives of listing are mainly to :
• provide liquidity to securities;
• mobilize savings for economic development;
• protect interest of investors by ensuring full disclosures.
•
BSE has set various guidelines and forms that need to be adhered to and
submitted by the companies. These guidelines will help companies to expedite the
fulfillment of the various formalities and disclosure requirements that are required
at various stages of
• Public Issues
– Initial Public Offering
– Further Public Offering

13. REQUIREMENTS
• Some of the requirements are as under :
• Minimum Listing Requirements for New Companies
• Minimum Requirements for Companies Delisted by BSE seeking
relisting on BSE
• Permission to Use the Name of BSE in an Issuer Company's
Prospectus
• Submission of Letter of Application
• Allotment of Securities
• Trading Permission
• Requirement of 1% Security
• Payment of Listing Fees
• Compliance with the Listing Agreement
• Cash Management Services (CMS) - Collection of Listing Fees

14. Hours of operation
Session Timing
Beginning of the Day Session 8:00 - 9:00
pre-open trading session 9:00 - 9:15
Trading Session 9:15 - 15:30
Position Transfer Session 15:30 - 15:50
Closing Session 15:50 - 16:05
Option Exercise Session 16:05 - 16:35
Margin Session 16:35 - 16:50
Query Session 16:50 - 17:35
End of Day Session 17:30

15. Working
• Trading System:
• The NSE has an automated screen based trading systems, which
allow orders to be placed at a “pre-determined” or “best” price.
The automated screen based trading system for the NSE it is known
as the ‘National Exchange for Automated Trading’ (NEAT) system.
• The online trading systems follow the principles of an order driven
market which facilitates efficient input of orders and automatic
matching, resulting in faster execution of orders in a transparent
manner. The member-brokers enter orders for purchase or sale of
securities from work stations connected to the exchange trading
systems. Order matching is anonymous (i.e. the orders are matched
by the exchange system) and the identity of the counter-party is not
revealed.

16. • Order Matching – The trading system sorts pending orders in price-
time priority for order matching purposes by matching the best buy
order and best sell order. Best buy order is the one with the highest
price and the best sell order is the one with the lowest price (the
system sorts buy orders from the seller point of view and vice
versa). Orders may match with more than one order resulting in
multiple trades for an order.
• Member broker can place market orders (which will be matched
with the best available order) or limit orders (wherein member can
specify the price for the order) which will remain a part of order
books until matching.

17. • Orders are assigned a unique order number by the trading system (for a member
broker, security and transaction type) and time-stamped on entry by the member
broker by the trading system. The orders are processed for potential match.
Pending orders are stored in different ‘books’ based on price-time priority in the
following sequence:
• Best Price
• Within Price, by time priority.
• Price priority – of two orders entered into the system, the order with the best
price gets the higher priority for trade matching.
• Time Priority – of two orders having the same price, the order entered earliest gets
the higher priority for trade matching.

18. Additionally, member brokers can place conditions at the time of order entry. These
conditions are as under:
• Time Conditions: These conditions, as the name suggests, can be classified as Day
orders, Good till Canceled, Good till Date order and Immediate or Cancel order.
• Price conditions: This permits members to specify conditions to execute the trade
at specified price or best price. Members can also place stop loss orders.
• Quantity conditions: The member can disclose a part of the order quantity to the
market. For example, an order for quantity 1000 at a limit price can specify a
disclosed condition of quantity 200. This will ensure that only 200 quantity at a
point of time is displayed to the market. Once this quantity is traded, another
quantity 200 is automatically released and so on till the full order is executed. The
Exchange may set a minimum disclosed quantity criteria from time to time.

19. • Minimum FII: these orders allow the trading
member to specify the minimum quantity by
which an order should be filled.
• All or none orders: all or none orders allow a
trading member to impose the condition that
only full order should be matched against.
• Those debt securities are mainly negotiated
bilaterally and subsequently reported to the stock
exchanges.

20. How the market sets prices
• The price is set by the buyer willing to pay the
highest price
• The market price will be set by the
buyer who can take best advantage of the
asset
• Superior information about an asset can
increase its value by reducing its risk

21. 4. Who is a broker?
• A stockbroker is person who is licensed to
trade in shares. Brokers also have direct access
to the share market and can act as your agent
in share transactions. For this service they
charge a fee. They can also offer additional
services like advice on shares, debentures,
government bonds and listed property trusts
and non-listed investment options (cash
management trusts, property and equity
trusts.

22. 5. What is a Demat A/c?
• Investors who wish to trade in the market
need to have a dematerialized, or demat,
account. In India, the government has
mandated two entities –National Securities
Depository, or NSDL, and Central Depository
Services (India), or CDSL – to be the custodian
of dematerialized securities.

23. 6. Buying and selling of dematerialised
securities
• The procedure for selling dematerialized securities is very
simple. After you have sold the securities, you would
instruct your DP to debit your account with the number of
securities sold by you and credit your broker's clearing
account. This delivery instruction has to be given to your DP
using the delivery instruction slips given to you by your DP
at the time of opening the account.
• For receiving demat securities you may give a one-time
standing instruction to your DP. This standing instruction
can be given at the time of account opening or later.
Alternatively, you may choose to give separate receipt
instruction every time some securities are to be received.

24. 7. How to receive income from shares?
• We invest in shares to make money – either
through a share’s capital growth, i.e. the
amount by which the share price increases in
value over time, or through the dividends it
pays to its shareholders. Dividends are
payments made by companies to shareholders
from their profits.

25. 8. How much should you invest?
• Asset allocator and other tools… Benefits of
Investing Early Power of compounding Magic
of compounding Risk vs. Returns The Need To
Diversify Financial Investment Options
Financial Investment Options

26. 9. How to make investment
decisions?
• The stock market has, perhaps, the most exciting
investment opportunities for the investor
community. At the same time, it could be
unnerving and scary. In fact, equity investment
has always remained a big challenge, not only for
retail but institutional investors, too. In short,
investing in equities can be a difficult proposition
for retail investors. However, equity must form a
part of every investor’s portfolio. The proportion
could vary, depending on the investor’s age,
monetary requirements, risk appetite, etc.

27. • To cope with volatility, it is important to have a
disciplined and systematic approach to equity
investment. Set your own rules and more
importantly, follow them religiously. Indeed, the
mantra for successful equity investment is a well
thought-out, disciplined investment strategy. A
long-term monetary commitment, adherence to
discipline in investment and decisions based on
company fundamentals are essential ingredients
for successful equity investment.

28. 10. How to track your investments?
• The Portfolio Manager tracks and monitors all
your investments, cash flow and assets, through
live price updates. Investments like equity,
mutual funds, assets, cash flows, borrowing and
more can all be tracked. Displayed in real time, it
is the most up-to-date and precise indicator of
your net worth! With the Portfolio Manager, you
can not only view your investments at each stage,
but can use this record of your holdings to base
any future investments decisions.

29. • The Portfolio Manager comes along with some
useful tools to gain useful insight of volatile
markets. These tools help you to track the
trends of your current investments as well as
some stocks that have caught your eye.