Download - Equity market
Basics of Equity Market
Equity Market is a public entity (a loose network of economic transactions, not a physical facility or discrete entity) for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange.
Equity Market
Primary Market (Issuing of Securities)
Secondary Market (Trading
of Securities)
Role of SEBI
There are many roles of SEBI and it’s the regulator
of Stock Exchanges in India, Establishment in 1992 in
replacement of Controller of Capital Issues ( CCI ).
• Power to make rules for controlling stock exchange.
• To provide license to dealers and brokers.
• To Stop fraud in Capital Market.
• To Control the Merge, Acquisition
and takeover the companies.
Role of SEBI
• To make new rules on carry - forward transactions.
• To create relationship with ICAI.
• Introduction of derivative contracts on Volatility Index
• To Require report of Portfolio Management Activities.
• To educate the investors.
• To audit the performance of stock
market.
Role of Brokers
Investors
Stock
Exchange
• To ensure market liquidity and respond rapidly to its clients' needs.
• To respect the confidential nature of its clients' transactions.
• Perfect knowledge of financial markets.• Providing superior quality, high value added
service.
BROKER
Online Trading Facilities
• Online trading in securities refers to the facility of investor being able to place his own orders using the internet trading platform offered by the trading member viz., the broker.
• To start with, investor needs to identify a trading member who offers internet trading facility and register with the trading member for availing the internet trading facility.
• Trading platform is provided based on the place you own your demat acount(equity, commodity,etc).
• Once an investor receives trading platform he has to register ID with stock exchange.
Placing of Buy Order
Placing of Sell Order
Demat Account
• Dematerialized account for individual Indian citizens to
trade in listed stocks or debentures, required for investors
by The Securities Exchange Board of India (SEBI).
• A Demat account reduces brokerage charges, enables
quick ownership of securities on settlement resulting in
increased liquidity, avoids confusion in the ownership
title of securities, and provides easy receipts for public
issue allotments or IPOs.
• A single Demat account can hold investments in both
equity and debt instruments
Contract Note
Dematerialization
To dematerialize any physical security:
a) open a demat account with a DP.
b) fill in a DRF (Demat Request Form) and submit the same with the physical certificate/s to the DP for dematerialization.c) DP defaces and sends the certificates to the Issuer/Registrar who credits an equivalent number of securities in the demat account, maintained by CDSL.
Physical Form Electronic Form
Demat Account
Re-Materialization
• Re-Materialization is the process by which a client can get his electronic holdings converted into physical certificates.
• A client can rematerialize his dematerialized holdings at any point of time.
• If one wishes to get back his securities in the physical form, one has to fill in the RRF (Remat Request Form) and request his DP for Re-Materialization of the balances in his securities account.
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