13-08-2012, 02:43 PM
SECURITIES MARKET
![Microsoft PowerPoint Document .ppt](https://seminarproject.net/images/attachtypes/ppt.gif)
PARTICIPANTS IN THE SECURITIES MARKET
PARTICIPANTS IN THE SECURITIES MARKET
Regulators
CLB, RBI, SEBI,
DEA, DCA
SEC, FRB
Stock Exchanges
Listed Securities
Depositories
Brokers
FIIs
Merchant Bankers or Investment Bankers
Mutual Funds
Custodians
Registrars
Underwriters
Bankers to an issue
Debenture trustees
Venture capital funds.
Credit rating agencies
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
PUBLIC ISSUES IN THE U.S
In the U.S., public offerings of both stocks and bonds are typically marketed by investment bankers who perform the role of underwriters. 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 2005 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 1994.
Within a short period it emerged as the largest stock
exchange surging ahead of the Bombay Stock
Exchange (BSE)
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 1995.
Jobbers play an important role on the BSE. A jobber is
a broker who offers a two-way quote or a bid-ask quote.
Since both jobbers and brokers feed their orders, the
BSE has adopted a ‘quote-driven’ system and an ‘order-
driven’ system.
NIFTY
The S&P CNX Nifty, popularly called Nifty, is arguably the most rigorously constructed stock market index in India. The Nifty reflects the price movement of 50 stocks selected on the basis of market cap and liquidity (impact cost). The base period for Nifty is the close of price on November 3, 1995. The base value of the index has been set at 1000. It is a value-weighted index. It is market-cap weighted