Trading and settlement mechanism of stock exchange ppt
Automatically changes to Flash or non-Flash embed. WordPress Embed Customize Embed. Presentation Description trading in stock market. Credit rating agencies PowerPoint Presentation: PUBLIC ISSUE IN INDIA Approval of the board of directors Approval of shareholders Appointment of the lead manager Due diligence by the lead manager Appointment of other intermediaries like co-managers, advisors, underwriters, bankers, brokers, and registrars Preparation of the draft prospectus Filing of the draft prospectus with SEBI Application for listing in stock exchanges Filing of the prospectus after any modifications suggested by SEBI with the Registrar of Companies Promotion of the issue Printing and distribution of applications Statutory announcement Collection of applications Processing of applications Determination of the liability of underwriters Finalisation of allotment Giving of demat credit or dispatch of share certificates and refund orders Listing of the issue PowerPoint Presentation: PUBLIC ISSUES IN THE U.
S In the U.
Generally, the lead investment banker forms an underwriting syndicate with other investment bankers to share the responsibility of the issue. BOOK BUILDING Book building is a method of offering shares to investors in which the issue price is not fixed in advance as is done in a fixed price offer but is determined through a bidding process.
STOCK MARKET IN INDIA As of January there were 23 stock exchanges recognised by the central government. The most important development in the Indian stock market was the establishment of the National Stock Exchange NSE in Within a short period it emerged as the largest stock exchange surging ahead of the Bombay Stock Exchange BSE PowerPoint Presentation: NATIONAL STOCK EXCHANGE NSE The NSE is a ringless, national, computerised exchange.
The NSE has two segments: The Capital Market Segment and the Wholesale Debt Market Segment. Trading members in the Capital Market Segment are through VSATs. The trading members in the Wholesale Debt Market are linked through leased lines. The NSE has opted for an order-driven system.
All trades on NSE are guaranteed by the National Securities Clearing Corporation. BOMBAY STOCK EXCHANGE BSE The BSE switched from the open outcry system to the screen-based system in Jobbers play an important role on the BSE. A jobber is a broker who offers a two-way quote or a bid-ask quote. SCREEN BASED SYSTEM The kind of screen based system adopted in India is referred to as the open electronic order ELOB market system.
LIMIT ORDER BOOK Buyside Sellside Limit Price Shares PowerPoint Presentation: MID - TODAY TRADING 3. BUYING AND SELLING OF SHARES Locating a Broker Placement of Order Execution of Order Internet Trading PowerPoint Presentation: TYPES OF ORDER Limit Order Those who place limit order supply liquidity Market Order Those who place market order demand liquidity PowerPoint Presentation: SENSEX The Bombay Stock Exchange Sensitive Index, popularly called the Sensex reflects the movement of 30 sensitive shares from specified and non-specified groups.
The index for any trading day reflects the aggregate market value of the sample of 30 shares on that day in relation to the average market value of these shares in the base year This means that this is a value-weighted index. The base value is From September 1, , Sensex is being constructed on the basis of free float market cap rather than full market cap. The Nifty reflects the price movement of 50 stocks selected on the basis of market cap and liquidity impact cost.
The Trading Procedure on a Stock Exchange – Explained!
The base period for Nifty is the close of price on November 3, The base value of the index has been set at It is a value-weighted index. It is market-cap weighted PowerPoint Presentation: There are two versions of i-BEX. Total return index This tracks the total returns. BOOK BUILDING SECONDARY MARKET TRADING: NEW YORK STOCK EXCHANGE Trading through a system of brokers and specialists Brokers … link … investors … market Specialists … dual role Match buy and sell orders when the prevailing prices permit them to do so Buy and sell on their own account when they cannot match customer orders.
NASDAQ Unlike the NYSE, Nasdaq does not have a specific location. It is a fully computerized market consisting of many market makers competing on an electronic network of terminals rather than on the floor of the exchange Each Nasdaq company has a number of competing market makers, or dealers, who make a market in the stock. Dealers post their bid and ask prices on the Nasdaq system. Brokers choose among market makers to handle their trades PowerPoint Presentation: TOKYO STOCK EXCHANGE The TSE divides stocks into two sections: Trading in the larger stock of the First Section … on the floor of the exchange Remaining stocks in the First Section and the Second Section are traded electronically The TSE relies on saitories who match orders but do not trade on their own A saitori maintains a public limit order book, matches market and limit orders, and slows down price movements when simple matching of orders would result in price changes greater than what is prescribed by the exchange.
SHOULD TRADING BE REGULATED? A CARD NOT PRACTICAL 1. CREATION OF WHOLESALE DEBT MARKET SEGMENT ON THE NATIONAL STOCK EXCHANGE, THE FIRST FORMAL MECHANISM FOR THE TRADING OF G-SECS.
REVERSE CHARGE MECHANISM UNDER SERVICE TAX -SUMMARY | SIMPLE TAX INDIA
The RBI announces the auction of G-secs through a press notification and invites bids from prospective investors.
Two systems of treasury auctions are widely used all over the world: Other investors are insurance companies, provident funds, mutual funds, trusts, primary and satellite dealers. The RBI provides the facility of Subsidiary General Ledger SGL account to large banks and financial institutions so that they can hold their investment in G-secs and treasury bills in the electronic book entry form. These institutions can settle their trades in securities through DVP delivery versus payment mechanism.
Primary dealers are important intermediaries in the G-secs market. They serve as underwriters in the primary market, act as market makers in the secondary market, and enable investors to access the SGL account.
SECONDARY MARKET FOR G-SECS As soon as they are issued G-secs are deemed to be listed and eligible for trading. The NSE has a wholesale Debt Market WDM for high value debt transactions. Two kinds of trades occur on the WDM: Repo trades and Non-repos trades. Despite the WDM, the wholesale market in G-secs is by and large a telephone market.
After a deal is done, it is reported on the Negotiated Dealing System NDS of NSE PowerPoint Presentation: MONEY MARKET Money market is the market for short-term debt funds.
It comprises of the call and notice money market, repo market, and the market for debt instruments such as treasury bills that have an original maturity of less than one year. The money market does not exist in a specific physical location or follow a single set of rules or post a single set of prices.
Rather, it represents a web of borrowers and lenders, linked by telephones and computers, dealing with short-term debt funds. REPO MARKET In a repo transaction two parties exchange securities and cash with a simultaneous agreement to reverse the transaction after a given period. Thus a repo represents a collateralised short-term lending transaction.
The party which lends securities or borrows cash is said to be doing the repo and the party which lends cash or borrows securities is said to be doing a reverse repo. TREASURY BILL MARKET Treasury bills are short-term debt instruments of the central government.
Treasury bills are sold through an auction process according to a calendar announced by RBI. Treasury bills are issued at a discount and redeemed at par.
Most buyers of treasury bills hold them till maturity and hence the secondary market activity is limited PowerPoint Presentation: SUMMING UP The securities market is the market for equity, debt, and derivatives.
Equity market has two segments, viz. There are four ways in which a company may raise equity capital in the primary market: The secondary market consists of the organised stock exchanges. The principal stock exchanges in India are the National Stock Exchange and the Bombay Stock Exchange.
Online Broking, Online Share Broking, Share Broking, Stock Broking Companies in India - ICICI Direct
The key features of stock market transaction in India are screen-based trading, electronic delivery, and rolling settlement. The major stock exchanges around the world are the New York Stock Exchange, NASDAQ, International Stock Exchange, and Tokyo Stock Exchange. The general market movement is measured by stock market indices.
Sensex and Nifty are the two most popular stock market indices in India. G-secs are issued through an auction mechanism. Transactions in G-secs are settled through the delivery versus payment mode. The wholesale secondary market in G-secs is by and large a telephone market. Presently, corporate bonds debentures in India are mostly privately placed. The secondary market for corporate debt has been historically rather dull. The money market is the market for short-term funds.
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Sign Up Sign In Take a Tour Help. PowerPoint Templates PowerPoint Diagrams. Upload from Desktop Single File Upload. Presentations PPT, KEY, PDF. Presentations PPT, KEY, PDF PowerPoint Templates. The presentation is successfully added In Your Favorites. PUBLIC ISSUE IN INDIA Approval of the board of directors Approval of shareholders Appointment of the lead manager Due diligence by the lead manager Appointment of other intermediaries like co-managers, advisors, underwriters, bankers, brokers, and registrars Preparation of the draft prospectus Filing of the draft prospectus with SEBI Application for listing in stock exchanges Filing of the prospectus after any modifications suggested by SEBI with the Registrar of Companies Promotion of the issue Printing and distribution of applications Statutory announcement Collection of applications Processing of applications Determination of the liability of underwriters Finalisation of allotment Giving of demat credit or dispatch of share certificates and refund orders Listing of the issue.
Within a short period it emerged as the largest stock exchange surging ahead of the Bombay Stock Exchange BSE. LIMIT ORDER BOOK Buyside Sellside Limit Price Shares BUYING AND SELLING OF SHARES Locating a Broker Placement of Order Execution of Order Internet Trading.
TYPES OF ORDER Limit Order Those who place limit order supply liquidity Market Order Those who place market order demand liquidity.
It is market-cap weighted. Brokers choose among market makers to handle their trades.
After a deal is done, it is reported on the Negotiated Dealing System NDS of NSE. Most buyers of treasury bills hold them till maturity and hence the secondary market activity is limited. Internet Security cagatay parlak By: Securities market operation- By: Health IT Security Market - Growth opportunity due to Cloud Security By: Regulation and Securities Market Players By: Global Smartphone Security Market By: Chemical, Biological, Radiological, and Nuclear CBRN Security Market By: Channel Statistics Included in these Channels: You do not have the permission to view this presentation.
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