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By,
    Rakesh Murthy K G, CFA
Stock Exchange
 An organized Market to transact in Financial
 Instruments

 Recognized by SEBI


 The Reach of Stock Exchange has been extended to
 deal in Commodities and naturally any tangible assets
Functions
 Liquidity
 Safety of Funds
 Supply for Long term Funds
 Flow of Capital
 Misc
Recognition Procedure
 Grant Recognition
    The rules & By-Laws of the exchange must ensure in fair
     dealing and protection of Investors
    To be compliant and promise to remain for all the laws
     framed and future laws by the GOI
    The grant should be in the Interest of Trade and Public
     Interest
 Renewal of Recognition
Demutualization
 Originally all the exchanges were formed as an
  association of Persons
 Now, all the Recognized exchanges had to be
  Demutualised
 That is, to be formed as a Corporate Structure
 Now all the Stock Exchanges are functioning as
  Public/Private ltd. Companies

 Guess the Listed Public Ltd Stock exchange and Non Listed
  Public Ltd. exchange
Analyze
Merits                 Drawbacks
 Liquidity             Speculation


 Publicity             Economic Crisis


 Assures Capital       Degrades Company’s
                         Reputation
 Borrowing Capacity
                        Disclosure
 Protects Investors
Recent Developments
 Entry of FII’s
 Allowing the Listing of Foreign Stocks
 Having the Index spread its wings
 MF’s and ETF’s
 25% of the Issued Capital to be in the hands of Public
  to meet the Listing Compliance
 Mandatory rating by the Credit Rating Agencies
“Be the change you want to see in this world”
                                   - Mahathma Gandhi

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Global markets

  • 1. By, Rakesh Murthy K G, CFA
  • 2. Stock Exchange  An organized Market to transact in Financial Instruments  Recognized by SEBI  The Reach of Stock Exchange has been extended to deal in Commodities and naturally any tangible assets
  • 3. Functions  Liquidity  Safety of Funds  Supply for Long term Funds  Flow of Capital  Misc
  • 4. Recognition Procedure  Grant Recognition  The rules & By-Laws of the exchange must ensure in fair dealing and protection of Investors  To be compliant and promise to remain for all the laws framed and future laws by the GOI  The grant should be in the Interest of Trade and Public Interest  Renewal of Recognition
  • 5. Demutualization  Originally all the exchanges were formed as an association of Persons  Now, all the Recognized exchanges had to be Demutualised  That is, to be formed as a Corporate Structure  Now all the Stock Exchanges are functioning as Public/Private ltd. Companies  Guess the Listed Public Ltd Stock exchange and Non Listed Public Ltd. exchange
  • 6. Analyze Merits Drawbacks  Liquidity  Speculation  Publicity  Economic Crisis  Assures Capital  Degrades Company’s Reputation  Borrowing Capacity  Disclosure  Protects Investors
  • 7. Recent Developments  Entry of FII’s  Allowing the Listing of Foreign Stocks  Having the Index spread its wings  MF’s and ETF’s  25% of the Issued Capital to be in the hands of Public to meet the Listing Compliance  Mandatory rating by the Credit Rating Agencies
  • 8.
  • 9. “Be the change you want to see in this world” - Mahathma Gandhi