Indian Capital Market

1. Dr.K.Karthikeyan,
Associate Professor of Commerce,
Dean and Controller of Examinations,
Vivekananda College,
Tiruvedagam West – 625 234
Mobile: +91-9865074994
Email: karthikeyan.madurai@gmail.com

2. ▪ Education - Student
▪ Employment - Employee
▪ Entrepreneurship - Entrepreneur

3. 1. The Economic Times
2. The Financial Express
3. The Hindu Business Line
4. Business India
5. Money Today
6. Outlook Money
7. Money Life
8. Business Today
9. Forbes India
10. Capital Market

11. 1. Equity Shares
2. Preference Shares
3. Debentures
4. Bonds
5. Mutual Funds
6. Public Deposits
7. Derivatives

12. “An organised and centralised market
for the purchase and sale of industrial and
financial securities of all descriptions, viz.,
Stocks, Shares, Debentures etc.”
“An association, organisation or body of
individuals, whether incorporated or not,
established for the purpose of assisting,
regulating and controlling business in buying,
selling and dealing in securities”.

13. 1. Economic Barometer
2. Pricing of Securities
3. Safety of Transactions
4. Contributes to Economic Growth
5. Spreading of Equity Cult
6. Providing Scope for Speculation
7. Liquidity
8. Better Allocation of Capital
9. Promotes the Habits of Savings and
Investment

14. Stock Exchanges in India are organised in
any of the following forms:
(a) Voluntary, non-profit making associations,
e.g., Bombay, Ahmedabad and Indore;
(b) Public Limited Companies such as
Calcutta, Delhi and Bangalore stock
exchanges; and
(c) Company Limited by guarantee, e.g.;
Hyderabad and Madras stock exchanges.

15. The members only enter into trading of
stock exchange and carry on business. A non-
member can buy or sell securities through a
member. Every stock exchange has its own rules
and regulations for the admission of members.
Member of a stock exchange are allowed to
appoint certain agents to do business on their
behalf.
The non-members who can carry on
business on the floor of a stock exchange on
behalf of the members are of three types:

16. (a) Remisiers:
They are agents of full-fledged members of a stock exchange.
They are appointed to secure business for the members. They cannot carry
business on their own name. They are paid commission out of the
brokerage collected by members on the business procured by the remisiers.
They also known as half-commission men or sub-brokers.
(b) Authorised Clerks:
A member of the stock exchange can appoint authorised clerks or
assistants to assist him. The authorised clerks are merely employees of the
members, and cannot do business in their own name.
(c) Brokers and Jobbers:
A broker is a commission agent who buys and sells securities on
behalf of non-members. He executes the order of his clients and earns
commission from them. A Jobber is an independent dealer in securities
who buys and sells securities in his own name. He cannot enter into
contract with non-members. He derives his income from the profit made
through difference in prices.

17. Membership of the Exchange/ NSE
Clearing is open to corporate entities,
limited liability partnerships, partnership
firms and individuals who fulfill the
eligibility criteria laid down by SEBI and
NSE. Two types of memberships are:
1. Normal - Unrestricted business expansion
2. Alpha - For focused proprietary trading
with limited clientele

20. 1. SEBI
2. NSE
3. Dematerialisation of Shares
4. Screen Based Trading (SBTS)
5. Investors Protection
6. Rolling Settlement
7. The Clearing Settlement of India Ltd

21. 8. Trading in Central Govt. Securities
9. Credit Rating Agencies
10. Accessing Global Funds Market
11. Mutual Funds
12. Internet Trading
13. Buy Back of Shares
14. Derivatives Trading
15.National Securities Clearing Corporation
Ltd

22. 1

26. 1. Credit Rating Information Services of India
Limited (CRISIL)
2. Investment Information and Credit Rating
Agency of India Limited. (ICRA)
3. Credit Analysis and Research limited
(CARE)
4. Brickwork Ratings (BWR)
5. India Rating and Research Pvt. Ltd
6. Small and Medium Enterprises Rating
Agency of India (SMERA)

28. 1. Futures Contracts
2. Forwards Contracts
3. Options Contracts
a) Call Option
b) Put Option
4. Swaps

32. 1. Money Market funds
2. Fixed Income funds
3. Equity funds
4. Balanced funds
5. Index funds
6. Specialty funds
7. Fund-of-funds

33. A stock exchange without a proper trading floor.
OTCEI has been incorporated U/S 25 of the Companies
Act 1956 and is recognised by the Securities Contracts
Regulation Act, 1956 as a stock exchange. The purpose of
the formation of OTCEI was to aid enterprising
promoters in raising finance for new projects in a cost
effective manner and to provide transparent and efficient
mode of trading to the investors.
It is modelled along the lines of the NASDAQ
market and has introduced several novel concepts to the
Indian capital markets, like screen-based nationwide
trading, sponsorship of companies, market making and
scripless trading.

34. It is promoted for a common cause of
promoting the interest of small and medium
companies.
This company was promoted by a group
of financial institutions owned by the
Government of India, consisting of UTI,
ICICI, IDBI, SBI Capital Market, IFCI, LIC,
GIC; and Can Bank Financial Services
(which is a subsidiary of Canara Bank).
It commenced its operations in 1992.

35. ▪ Day Trading or Intraday Trading [for
Experienced Players]
▪ Delivery Trading [for Beginners]
▪ Short Sell [for Experienced Players]
▪ Buy Today Sell Tomorrow (BTST)
▪ Sell Today Buy Tomorrow (STBT)

36. ▪ Arbitrage Trading
▪ Market Making
▪ Momentum Day Trading
▪ Pattern Trading
▪ Scalping
▪ Rebate Trading
▪ Price Action Trading
▪ Swing Trading
▪ Trading the News ( News Playing)

37. 1. Arbitrage: Arbitrage a kind of hedged investment meant to
capture slight differences in price. When there is a difference in
the price of something on two different markets the arbitrageur
simultaneously buys at the lower price and sells at the higher
price.
2. Market Making: Market Makers are appointed by stock
exchanges like The New York Stock Exchange (NYSE) and
American Stock Exchange (AMEX), NASDAQ Stock Exchange
and London Stock Exchange (LSE) to continuously provide ask
and bid rates for the brokers to buy and sell the stock in these
exchanges.
3. Momentum Day Trading: It is a method of stock trading,
where in a trade is made, when the stock is making a trending
movement and the trade is closed at the end of the day.

38. 4. Pattern trading: As the stock prices move up and down,
they tend to form recognizable recurring designs or
figurative diagrams, called chart patterns. Trading these
patterns gives us more consistent profitable trades.
5. Scalping: It is a technique of trading and profiting in
stock market. It is a day trading strategy and focuses on
taking very small profits from hundreds of trades. It involves
taking quick and small profits, using the ask and bid
differences.
6. Rebate Trading: It is a technique of day trading and
profiting in stock market. Here instead of trader paying the
commission for buying and selling, he is being paid by the
service provider. ECN rebate is the primary source of profit.

39. 7. Price Action Trading: It is a technique of stock trading and
profiting in stock market. This is a simplistic and minimalistic
approach to trading. This approach considers action of price only,
that is open, high, low and close of a time period. The time period
can be a minute, five minute, thirty or sixty minute. Some traders
consider volume also for decision making, though it is optional.
The trade is closed on the same day of opening.
8. Swing Trading: It is a technique of stock Trading. The trade is
taken at the beginning of the price swings and closing at the end
of the price swing and on the same day of opening the trade.
9. Trading the News (News Playing): It is a technique to trade
any financial instruments, profiting on price fluctuation, that
follows a sensitive news release. The trade is closed on the same
day of opening the trade.

40. Every stock exchange maintains a list
containing the names of selected
companies in whose securities the stock
exchange will deal. This list is called
“Official Trade List“.
The inclusion of the name of a
company in the official list of securities,
which can be dealt with in a stock
exchange is called listing.

41. 1. Provision of ready
marketability.
2. Imparting liquidity to the
securities.
3. Provision of free negotiability.
4. Protection of the interests of the
investors and the general public.

42. 1. Companies
2. Dealers
3. Members
4. Investors
5. Custodian or Settlers
6. Transfer agents
7. OTCEI
8. Government and
9. SEBI

43. 1. MONEYCONTROL
(http://www.moneycontrol.com)
2. SCREENER
(https://www.screener.in)
3. INVESTING:
(https://in.investing.com)
4. ECONOMIC TIMES MARKET
(http://economictimes.indiatimes.com/markets)
5. LIVEMINT
(http://www.livemint.com)
6. NSE INDIA
(https://www.nseindia.com)
7. BSE INDIA
(http://www.bseindia.com)

47. It is similar to the actual trading
where you can buy and sell stocks.
However, here no real money is
involved. You invest only in virtual
money. Such platforms which
provide virtual trading facilities are
called stock simulators.

48. When you register in these stock
simulators, you will get virtual money (Say
Rs 10 lakhs or 1 Crores) in your account.
You can use this money to practice trading.
Stock simulators provide real-time
stock data, which means that you can try
out different strategies of trading in stocks
just like the real world stock market, but
risk-free.

49. 1.Open a free account (using your email-id) on a
simulating platform
2. Get instant virtual money in your account.
3. Start buying/selling stocks like real trading
scenarios.
4. Monitor your portfolio and track profit/loss
5. Try different strategies and learn the trading
basics.
6. When you get enough confidence and
experience- move to real trading

50. 1. Moneybhai
(https://moneybhai.moneycontrol.com)
2. TrakInvest
(http://www.trakinvest.com/)
3. Dalal Street
(https://www.dsij.in/Stock-Market-
Challenge)

54. THANK YOU