The document provides an overview of the stock market in India, including the various markets and their key features, regulation by the Securities and Exchange Board of India (SEBI), and the development and functions of primary and secondary markets. It discusses trading and settlement procedures, depository systems, and order types and circuit breakers that provide stability to the market.

1. Stock Market In India

10. Departments of SEBI 1)MARKET INTERMEDIARIES REGULATION AND SUPERVISION DEPARTMENT (MIRSD) 2) MARKET REGULATION DEPARTMENT (MRD) 3) DERIVATIVES AND NEW PRODUCTS DEPARTMENT (DNPD) 4) CORPORATION FINANCE DEPARTMENT (CFD) 5) INVESTMENT MANAGEMENT DEPARTMENT (IMD) 6) INTEGRATED SURVEILLANCE DEPARTMENT (ISD) 7) INVESTIGATIONS DEPARTMENT (IVD) 8) ENFORCEMENT DEPARTMENT (EFD) 9) LEGAL AFFAIRS DEPARTMENT (LAD) 10 ) ENQUIRIES AND ADJUDICATION DEPARTMENT (EAD) 11) OFFICE OF INVESTOR ASSISTANCE AND EDUCATION (OIAE). 12 ) GENERAL SERVICES DEPARTMENT (GSD) 13)RESEARCH AND TRAINING DEPARTMENT (RTD). 14) OFFICE OF THE CHAIRMAN (OCH) 15) THE REGIONAL OFFICES (RO’s)

11. PRIMARY EQUITY MARKET • PUBLIC ISSUE • RIGHTS ISSUE • PRIVATE PLACEMENT • PREFERENTIAL ALLOTMENT

12. 10 % advance payment is required to be made by the QIBs along with the application, while other categories of investors have to pay 100 % advance along with the application. Demand for the securities offered , and at various prices, is available on a real time basis.. A 20 % price band is offered by the issuer within which investors are allowed to bid and the final price is determined by the issuer only after closure of the bidding. Book Building Issues 100 % advance payment is required to be made by the investors at the time of application. Demand for the securities offered is known only after the closure of the issue Price at which the securities are offered and would be allotted is made known in advance to the investors Fixed Price Issues PAYMENT DEMAND OFFER PRICE ISSUE TYPE

13. Reverse Book Building The reverse book building is an efficient price discovery mechanism of de-listing of securities, which is provided for capturing the sell orders on online basis from the shareholders through respective BRLM.

19. Depository system Facilitates safekeeping of securities Facilitates safekeeping of money Facilitates transfer of ownership without having to handle securities Facilitates transfer without having to handle money Transfers securities between accounts on the instruction of the BO account holder Transfers funds between accounts on the instruction of the accountholder Holds securities in an account Holds funds in an account DEPOSITORY BANK

25. LIMIT ORDER BOOK Buyside Sellside Limit Price Shares 500 501 502 503 504 505 506 507 508 509 510 511 512

27. SETTLEMENT • Security transactions are settled through electronic delivery facilitated by depositories • Presently, the settlement of all trades is a rolling settlement on a T+2 basis

28. In case of sale :- BO will give delivery instruction through Delivery Instruction Slip (DIS) to DP to debit his account and credit the broker’s account. Such instruction should reach the DP’s office at least 24 hours before the pay-in, failing which, DP will accept the instruction only at the BO’s risk. ETF An ETF is a basket of securities that is traded on the stock exchange, akin to a stock. So, unlike conventional mutual funds, ETFs are listed on a recognised stock exchange. Their units can be bought and sold directly on the exchange, through a stockbroker during the trading hours.

29. Circuit Breakers In case of a 10% movement of either of these indices, there would be a 1-hour market halt if the movement takes place before 1 p.m. In case the movement takes place at or after 1 p.m. but before 2.30 p.m. there will be a trading halt for ½ hour. In case the movement takes place at or after 2.30 p.m. there will be no trading halt at the 10% level and the market will continue trading. In case of a 15% movement of either index, there will be a 2-hour market halt if the movement takes place before 1 p.m. If the 15% trigger is reached on or after 1 p.m. but before 2 p.m., there will be a 1 hour halt. If the 15% trigger is reached on or after 2 p.m. the trading will halt for the remainder of the day. In case of a 20% movement of the index, the trading will be halted for the remainder of the day.

30. Circuit filters On individual stocks When applied to individual stocks, circuit filters are known as price bands or price filters. There are no circuits on the 30 stocks included in the Sensex or the 50 included in the Nifty. The filter bands are in the range of 2%, 5%, 10% and 20%.

31. Buy back of shares Buyback is the reverse of issue of shares by a company. In buy back, company offers to take back its shares owned by the investors at a specified price; this offer can be binding or optional to the investors.