This presentation is about the securities market and an in depth study of the secondary market has been done.

1. Group Presentation
Sub.:- IAPM
Topic:- Securities Market
Members:- Pramod Chauhan (06)
Rahul Dani (07)
Dinesh Kumar (08)
Anuj Gupta (09)
Mukesh Gupta (10)

2. SECURITIES MARKET
 Securities market is a component of the wider financial
market where securities can be bought and sold on the basis
of demand and supply.
 Securities markets encompasses equity markets, bond
markets and derivatives where prices can be determined and
participants both professional and non professionals can meet.
 Different types of securities are traded in the securities
market such as ownership securities, debt securities, short-
term securities, long-term securities, government securities,
non-government or corporate securities.
 On the basis of the maturity period of securities traded in the
market, the securities market is segmented into money market
and capital market.

3. CAPITAL MARKET
 Capital market is the market segment where securities
with maturities of more than one year are bought and
sold.
 Equity shares, preference shares, debentures and bonds
are the long-term securities traded in the capital market.
 The capital market is the source of long-term funds for
business and industry.
 The capital market is divided into two different markets.
These are the primary market and secondary market.

4. SECONDARY MARKET
 A market which deals in securities that have been already
issued by companies, is called as secondary market.
 It is the base upon which the primary market is
depending.
 The secondary market where continuous trading in
securities takes place is the stock exchange.
 The chief purpose of the secondary market is to create
liquidity in securities.
 It is also known as the Stock market.

5. STOCK EXCHANGE
 Stock exchange is a centralized market for buying and
selling stocks where the price is determined through
supply-demand mechanisms.
 The stock exchange were once physical market places
where the agents of buyers and sellers operated through
the auction process.
 These are being replaced with electronic exchanges
where buyers and sellers are connected only by
computers over a telecommunications network.
 At present there are 24 Stock Exchanges in India
recognized by the government.

6. (CONT.)
 Out of these 20 exchanges are regional ones while 4
others National Stock Exchange of India
Limited(NSEIL), Over The Counter Exchange of India
Limited(OTCEI), Inter-connected Stock Exchange of
India Limited(ISE), & the Bombay Stock
Exchange(BSE) operate at he national level as they have
to mandate nationwide trading network.
 They have adopted Screen Based Trading
System(SBTS) to provide automated computerized mode
of trading.

7. BSE
 The Stock Exchange, Mumbai (BSE) is the leading and
also the oldest stock exchange in India with a history of
more than 125 years.
 It was established in 1875 with formation of the Native
Share and Stock Brokers Association.
 It is a very active stock exchange with highest number of
listed securities.
 Nearly 70% of all transactions in the country are done on
BSE.
 BSE has the largest no. of listed companies of more than
5000 on its trading list.

8. NSE
 NSE was formed in 1994 and it was an important
development in the Indian capital market.
 The new exchange which boasts of Screen Based
Trading System has been promoted as a competitor to
the BSE.
 The NSE has two segments: the Capital Market segment
and the Wholesale Debt Market segment.
 The capital market segment covers equities, convertible
debentures, and retail trade in non-convertible
debentures.
 The Wholesale debt market segment is a market for a
high value transactions in government securities, PSU
bonds, commercial papers, and other debt instruments.

9. TRADING
 The act of buying and selling of securities on a stock
exchange is known as Stock Exchange Trading. There
are 2 types of trading:-
1. Floor Trading:-
 Under this system, an investor desirous of buying a
security gets in touch with a broker and places a buy
order along with the money to buy the security.
Similarly the investor sells his shares.
 The broker in turn gets commission from his clients
which is fixed by the stock exchange.

10. ( CONT.)
 2. Screen based trading:-
 In the new electronic stock exchanges, which have a
fully automated computerized mode of trading, floor
trading is replaced with a new system of trading known
as screen-based trading.
 In this system the distant participants can trade with each
other through the computer network.

11. SETTLEMENT
 It means actual transfer of securities. This is the last
stage in the trading of securities done by the broker on
behalf of their clients. There can be 2 types of
settlement:-
 On the spot settlement:- It means settlement is done
immediately and on the spot settlement follows T+2
rolling settlement. This means any trade taking place on
Monday gets settled by Wednesday.
 Forward settlement:- It means settlement will take
place on some future date. It can be T+5 or T+7 etc. All
trading in stock exchanges takes place between 9.55am
and 3.30pm Monday to Friday.

12. DEBT MARKET
 Debt market refers to the financial market where
investors buy and sell debt securities, mostly in the form
of bonds.
 India debt market is one of the largest in Asia.
 The debt market, in turn, may be divided into three
parts, viz., the government securities market, the
corporate debt market, and the money market.
 The biggest advantage of investing in Indian debt
market is its assured returns. The returns that the market
offer is almost risk free.

13. SEBI
 The GOI set up the Securities and Exchange Board of
India on 12th April,1988.
 It deals with the matters relating to development and
regulation of securities market and investor protection.
 The primary focus of risk management by SEBI has been
to address the market risks, operational risks and
systemic risks.
 SEBI has been continuously reviewing its policies and
drafting risk management policies to mitigate these risks,
thereby enhancing the level of investor protection and
catalyzing market development.

14. THANK YOU