Professional Documents
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Capital Marketing: 26 Oct. 09 Duration: 1 Hour 30 Mins
Capital Marketing: 26 Oct. 09 Duration: 1 Hour 30 Mins
o Regulators (SEBI,RBI),
o Institutions (LIC,FII)
Types of market
Stock markets: Which provide financing through issue of
securities
Stock markets
Where new issued stock and existing stocks are traded
traded
The main stock exchanges in India are:
investors
Indian stock markets are highly liquid, deep and well
organized
Stock exchanges info.
Major stock exchanges are NSE & BSE
Number of companies listed at NSE are 1319 and
BSE are 4000
The major index are NIFTY and SENSEX
Both stock exchanges trade in following segments:
o Equity
o Retail debt market and wholesale debt market
o Futures and options
Innovations at NSE
Largest in terms of daily turnover and number of trades
First national electronic limit order book (LOB) exchange in India
Setting up first clearing corporation National securities Clearing
Corporation Ltd. (NSCCL)
Co-promoting and setting up of National Securities Depository
Limited. (NSDL)
Setting up S &P CNX Nifty, commencement of internet trading in
Feb. 2000.
First exchange to start Exchange traded derivatives (1996) and
equity derivatives (2000)
First exchange to start Gold ETF. (Exchange Trade Funds)
Bond market
National stock exchange also has bond market where bonds
are traded. It has two segments:
Wholesale Debt market's segment provides trading facilities
for a variety of debt instruments including Government
Securities, Treasury Bills and Bonds issued by Public Sector
Undertakings/ Corporate/ Banks. Large investors and a high
average trade value characterize this segment
Retail debt market: With a view to encourage wider
participation of all classes of investors across the country
(including retail investors) in government securities, the
Government, RBI and SEBI have introduced trading in
government securities for retail investors
Money market
Money market is global short term borrowing and lending
o Treasury bill
o Commercial paper
o Certificate of deposit
All the brokers and sub-brokers have to get register with SEBI
premium amounts