Unit - 1 Stock Exchange Sebi NSE Otcei Scra Fema

UNIT - 1 STOCK EXCHANGE SEBI NSE OTCEI SCRA FEMA
What is Stock Exchange?

Place where trading of shares is done in terms of sale and purchase Market place where trading of securities takes place. Securities (Ownerships of a company) are bought and sold in a stock exchange Place where a near to perfect price for any product (security) is determined based on the demand and supply factor existing in the market
Stock Exchange Introduction

Originated in 1800 Stock Exchange, Mumbai (BSE) was established in 1875 There are 23 Stock Exchanges in the India.
In the early 19th Century, Indias stock market has risen to greater heights. By 1990, India had 19 Stock Exchanges, by 1999, the number has risen to 23. Around 9877 listed companies in stock exchange
Indian Stock Exchanges

Bombay stock exchange National stock exchange(Mumbai) Bangalore stock exchange Uttar pradesh stock exchange(kanpur) Magadh stock exchange(Patna) Ahmedabad stock exchange Vadodara stock exchange(Baroda) Bhubaneswar stock exchange Calcutta stock exchange(kolkata) Madras stock exchange Cochin stock exchange Coimbatore stock exchange Gauhati stock exchange Hydrabad stock exchange Madhya pradesh stock exchange(indore) Jaipur stock exchange Ludhina stock exchange Mangalore stock exchange Pune stock exchange Saurashtrakutch stock exchange
Sensitive Index calculated using a market- capitalization weighted methodology. As per this methodology, the level of index at any point of time reflect the total market value of 30 components stock relative to a base period. (the market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company).
Nifty is an indicator of all the major companies of NSE.The Nifty index is a composite of the top 50stocks listed on the National stock exchange. It is a simplified tool which helps investors & ordinary people alike, understand what happens in the stock market & by extension, the economy.
NIFTY
SENSEX
SEBI Security & Exchange Board of India

Established & Administration - 1988, Government of India through executive resolution.
In 1992 upgraded as fully autonomous body With the passing of the Securities and Exchange Board of India Act (SEBI Act) on 30th January 1992.
SEBI appointed the L. C. Gupta Committee in 1998 to recommend the regulatory framework for derivatives trading and suggest byelaws for Regulation and Control of Trading and Settlement of derivative Contracts SEBI then appointed the J. R. Verma Committee to recommend Risk Containment Measures (RCM) in the Indian Stock Index Futures Market.
SEBI came into force on January 30, 1992.
It is a brief act containing 35 sections

The SEBI Act governs all the Stock Exchanges and the Securities Transactions in India. It consists of one Chairman and five members. One each from the department of Finance and Law of the Central Government One from the Reserve Bank of India Two other persons and having its head office in Bombay and regional offices in Delhi, Calcutta and Madras
Objectives & Working of SEBI

to protect the interests of investors in securities; to promote the development of Securities Market; to regulate the securities market and for matters connected therewith or incidental thereto
SEBI has introduced the comprehensive regulatory measures, prescribed registration norms, the eligibility criteria, the code of obligations and the code of conduct for different intermediaries like, bankers to issue, merchant bankers, brokers and sub-brokers, registrars, portfolio managers, credit rating agencies, underwriters and others.
Two broad approaches of SEBI is to integrate the securities market at the national level, and also to diversify the trading products This is to increase the number of traders including banks, financial institutions, insurance companies, mutual funds, primary dealers etc. to transact through the Exchanges.
Players in the Stock Market

General investor public Companies Mutual funds Indian financial investors Foreign institutional investors Non resident Indians Brokers Sub brokers
NSE National Stock Exchange

Located in Bombay India's first debt market Set up in 1993 to encourage stock exchange reform through system modernization and competition. Opened for trading in mid-1994. Recently accorded recognition as a stock exchange by the Department of Company Affairs. Instruments traded are, treasury bills, government security and bonds issued by public sector companies
NSE Group
India Index Services & Products Ltd. (IISL) National Securities Clearing Corporation Ltd. (NSCCL) NSE.IT Ltd. National Securities Depository Ltd. (NSDL) DotEx International Limited
NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country
SPECULATION & KINDS

It involves the buying, holding, selling, short-term selling of stocks, bonds, commodities,currencies,collectibles or any valuable financial instrument to profit from fluctuations in its price as opposed to buying it for use or for income via method like dividends or interest.
Bull Market (Tejiwala): Purchase the shares at current prices to sell at a higher price in the near future and makes a profit if his expectations come true - long buyer Bear Market (Mandiwala) : Sells security in the hope that he will be able to buy them back at lesser price Short Selling. Lame duck Bear has made contracts to sell securities, find it difficult to meet his commitment due to non-availability of security, they always struggling Stag Speculator who applies for a large number of a shares in a new issue with the intention of selling them at a premium - Bullish and very cautious.
OTCEI Over the Counter Exchange of India

Promoted by Leading Financial institutions in India OTCEI was established by UTI, IDBI, IFCI, LIC, GIC, SBI CAPTIAL MARKETS, CANBANK FINANCIAL SERVICES. Non-profit making company under Companies Act 1956. OTCEI in 1993, became the first Exchange in the country to open Investor Grievance Cells (IGCs) at four Metros - Chennai, Delhi, Kolkata and Mumbai. The IGCs handle complaints/ queries from investors against brokers and/or companies listed on the OTCEI. It is a recognized stock exchange. Two ways of making a public offer. Direct (with sponsor to the public) and Indirect (with sponsor to public and companies). Faster transfers because trading is not with share certificates but with a different tradable document called counter receipt (CR). Shares converted into CR and CRs are converted into shares. Players are investors, counter, settler, registrar / custodian, company and bank.
SCRA - SECURITIES CONTRACTS (REGULATION) ACT, 1956 Merchant bankers specialise in different services. However, since they are one of the major intermediaries between the issuers and the investors, their activities are regulated by
(1) SEBI (Merchant Bankers) Regulations, 1992. (2) Guidelines of SEBI and Ministry of Finance. (3) Companies Act, 1956. (4) Securities Contracts (Regulation) Act, 1956. (SCRA)
FEMA Foreign Exchange Management Act

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UNIT - 1 STOCK EXCHANGE SEBI NSE OTCEI SCRA FEMA

What is Stock Exchange?

Stock Exchange Introduction

Indian Stock Exchanges

SEBI Security & Exchange Board of India

It is a brief act containing 35 sections

Objectives & Working of SEBI

Players in the Stock Market

NSE National Stock Exchange

SPECULATION & KINDS

OTCEI Over the Counter Exchange of India

FEMA Foreign Exchange Management Act

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