A STUDY RELATING TO

SECURITIES

IN PARTIAL FULFILLMENT
OF ONE YEAR LL.M.
IN CORPORATE AND COMMERCIAL LAW

BY TUNIKA UPADHYAY
ROLL NO. 24007
 INTRODUCTION TO
SECURITIES
• Securities are the means by which
companies raise new capital.
• It is a certificate or a financial
instrument which has monetary
value and can be traded.
• It is a tradable financial asset and
refers to stock and bonds which are
negotiable.
 DEFINITION OF SECURITIES
• Section 2(h) of the Securities Contract
Regulation Act defines securities to include
equity shares, preference shares and
debentures.
• Section 2(81) of the Companied=s Act 2013
defines securities as referring to the definition
under section 2(h) of the SCRA.
ADVANTAGES OF SECURITIES

Fun of High rate

of return
investing

Provide Fair
liquidity to
investment Dealings

Flexible Investor
can apply
objectives for loans
 TYPES OF SECURITIES
Debt Derivative
Shares
Securities Securities
Bonds,
Corporate and
Money Market Debentures,
Government
Securities Commercial
bonds
Paper

Municipal and
Swaps and Future and
Mortgage backed
Options Forward Contract
Securities
 LEVELS OF SECURITIES

SECONDARY
PRIMARY
MARKET
MARKET

Trading over stock

Market for new issue exchange
of securities

Issued by
Corporations nd
Known as new issue government
market
DISADVANTAGES OF SECURITIES

Violent
Scamsters may
fluctuations in Insider trading
indulge in scams
share prices

Sometimes does
not show the true Unfair Labour
picture of Practices
economy
 CONCLUSION
• Securities represent ownership claims on
company’s net assets.
• An amazing diversity of securities has
developed over a period of time due to
development of quantitative analysis and
investment models.
THANK YOU