stock market,sebi

STOCK MARKET

PRESENTED BY:

PONNY ROSE

What are Markets? A stock market is a market for the trading of company stock/ shares, and derivatives. This includes securities listed on a stock exchange as well as those only traded privately.

Market is a place where buyers and sellers of securities can enter into transactions to purchase and sell shares, bonds, debentures etc

Features of Stock Market • Stock Market is an organized market, where

securities of govt. and semi govt. bodies and corporate enterprises are bought and sold.

• Stock Market deals in second hand or existing securities.

• Individuals alone can buy and sell securities.

• The Stock Market does not provide this facility to corporation and partnership firms.

• In the Stock Market only those securities which are listed in the Stock Market or transacted. Unlisted Securities or not permitted to be dealt in the market.

• The Stock Exchange to regulate its day-to-day operations.

Stock exchange is a place where buyers and sellers are come together for undertaking transactions involving sale of securities.

Function of Stock Exchange o It provide ready market for securities o It helps in price discovery of securities. o It insure low cost of raising finance issue

of new market instruments in the market o Helps in capital generation process.

o Encourages capital formation

o Provides proper direction to invest capital oPromotion of investment. o Help capital formation. o Give mobility to capital. o Exercise control over the working of

companies. oMarketing of new issues.

In India overview India's oldest and first stock exchange:

Mumbai (Bombay) Stock Exchange. Established in 1875. More than 6,000 stocks listed.

Total number of stock exchanges in India: 22 They are in: Ahmadabad, Bangalore, Calcutta,

Chennai, Delhi etc.

There is also a National Stock Exchange (NSE) which is located in Mumbai.

There is also an Over The Counter Exchange of India (OTCEI) which allows listing of small and medium sized companies.

The regulatory agency which oversees the functioning of stock markets is the Securities and Exchange Board of India (SEBI), which is also located in Bombay

Name of Indian stock exchange 1.Bombay stock exchange 2.national stock exchange(Mumbai) 3.Banglore stock exchange 4.Utter Pradesh stock exchange (Kanpur) 5.Magadh stock exchange(Patna) 6.Ahmedabad stock exchange 7.vadodara stock exchange(Baroda)

8.Bhubaneswar stock exchange 9.Calcutta stock exchange(Kolkata) 10.madras stock exchange 11.Cochin stock exchange 12.coimbatore stock exchange 13.Gauhati stock exchange 14.Hydrabad stock exchange

15.Madhya Pradesh stock exchange(Indore) 16.Jaipur stock exchange 17.Ludhina stock exchange 18.Mangalore stock exchange 19.Pune stock exchange 20.saurashtrakutch stock exchange

A Brief History Prior to SEBI the security markets and stock exchange were regulated by several Acts, which were: • The Bombay Securities Contracts Control Act, 1925 • The Capital Issues (Control) Act, 1947 • The Securities Contracts (Regulation) Act, 1956 • Registrar of Companies (The Indian Companies Act,1956)

For a healthy growth of capital markets and to prevent malpractices in trading, the Government subsequently decided to “set up a separate board for the regulation and orderly functioning of Stock Exchange and the securities industry”

Introduction SEBI was established as a statutory

authority through an Ordinance promulgated on 30.01.1992 by the President of India

SEBI is the regulator for the Securities Market in India

It is managed by a Board comprising of nine members including the chairman

Paradoxically this is a positive outcome of the Harshad Mehta Securities Scam of 1990-91

Basic Objectives • 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 there to

Powers of SEBI Powers to regulate business of stock exchanges : • SEBI is empowered to regulate the business of stock exchanges • Intermediaries associated with the securities market as well as mutual funds, fraudulent and unfair trade practices relating to securities and regulation of acquisition of shares and takeovers of companies

Recent DevelopmentSCreation of Market Regulator SEBI Act

1992 Protection of interest of Investors Promote the developments Regulating the Securities Market

SBT: SBT Provides Efficiency, Liquidity and

Transparency Time Saving Cost Saving

Globalization: Globalization Raise resources from Abroad Through:• ADRs • GDRs • FCCBs

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