Capital Market Safe Guards

7/29/2019 Capital Market Safe Guards

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Capital Market Seminar

Welcome to the workshop

Empowering InvestorsThrough EducationISB

16th June, 2012


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INVESTMENT

WHY

WHERE

WHEN

HOW MUCH


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Why?

Encounter Inflation

Restore Purchasing

Power of Money.

Tax Saving

Financial Goal


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Need for Investment

ITEM 1987 1997 2007 2027

ColgateToothpaste

8.05 18.90 28.00 104.00

Petrol(1litre) 7.99 25.48 42.50 259.12

LPG Cylinder 56.15 137.85 300.00 830.85


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Where?

CASH

FD

DEBT / FIXED INCOME SECURITY

INSURANCE

MEDICLAIM

TAX SAVING SCEMES

MUTUAL FUNDS

STOCK MARKET


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BSE - Introduction

Oldest Exchange in Asia

Introduced Securities Trading

SRO -formulated Rules & Bye-laws

First Exchange to be granted permanent recognition under the

SC(R)A

1956

AOP ( 18752005 ).

Corporatisation 19/08/2005.

Demutualisation - Separation of Ownership, Administration &Trading

> 5000 Listed Companies (>7000 Scrips).

BSE Sensex


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Financial Market

FinanceBlood of Business

Financial Market; objective to mobilize

capital from unproductive venture to

productive venture.


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Participants

Government

Financial Institutions

Public


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Categorization

Financial

Market

Capital

Market

Money

Market


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Capital Market

A Meeting Ground for Savers & Users

Promotes Economic Efficiency by

Channelling Capital to Productive ventures.

Government & Corporate firms Raise Long

Term Finance.


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Types

Capital Market

Primary Market Secondary Market

Equity Market

Debt Market Debt Market

Equity Market

Derivatives Market


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Primary Market

Deals with issuance of New Securities.

Companies, Government can Obtain Fund

through the sale of New Stock or Bond.

Market for Long-term Capital.

Securities are Issued to the Investors directly.

Subsequently these Securities get Listed and

Traded on the Stock Exchanges.


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Mechanism of New Issue

Rights Issue

Private Placement

IPO/Public Issue


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Secondary Market

Market where Previously Issued Stocks

& Financial Instruments are Traded.

Transfer of Securities between the

Investors.

Refers to the Stock Exchanges.


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Exchange

A Platform, where trading of Securities is done

A Facilitator

Small Investors can Invest.


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Functions of Exchange

Raising Capital for Business

Facilitating Company Growth

Helps in Price Discovery.

Barometer of the Economy.

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17

CC / CH

CMTM

SE


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Trading

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Broker BrokerStockExchange

Clearing HouseClearing Corporationeller Buyer

SaleOrder

Trade Id Trade Id

SaleInstruction

Contract Note

ContractNote

BuyInstruction

BuyOrder


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Types of Orders

Limit Price/ Order

Market Price/ Order

Stop Loss Price / Order

Day Order (Day)

Immediate or Cancel Order (IOC)

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SCRIP GROUPS & SENSEX

Based on liquidity of trading

A=204; B=2110; F=35; T=641; Z=3

Sensex=Sensitive Index - Regd

Trademark

30 Most liquid scrips

Introduced in 1986

1978-79 = 100 is now > 18,000

Average Return 1618 %


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Depositories

No physical shares issued since 2005

Trading only in dematerialsed form

Bank A/c for shares in electronic form

Keep Delivery Instruction Slip Book Safely

It is like a cheque book

Sign only when required

Insist for statement

No balance / One share

S t t l t


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S e t t l e m e n t

T+5 introduced w.e.f. 31-12-2001

T+3 introduced w.e.f. 01-04-2002

T+2 introduced from 01-04-2003

BSE CAN MAKE T+1 or T+0


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Day Activity

T

Trading

Downloading of Provisional securities and

funds Obligation Statements by Trading

MembersGive-up entry by the TM/ Confirmation by

custodian

Settlement Cycle


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Day Activity

T+1

Modify the unconfirmed give-up entry upto

11:00 a.m.

Confirmation of give-up data by the

Custodian upto 11:00 a.m.

Downloading of Final Securities and Funds

Obligation Statements


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Day Activity

T+2 Pay-in by 11:00 a.m.

Pay-out by 1:30 p.m.

T+3 Auction between 11:00 a.m. to 12 noon

Download of Auction Report by 12:30 p.m.

T+4 Auction pay-in by 12 noonAuction Pay-out by 1:30 p.m.


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Circuit & Filters

Used to Stop Adverse Movement in either way.

Applied at 3 stages

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10% 15% 20%

Before 1p.m.

1 hr Halt ofTrade

2 hr Halt Halt forRemainder

of Day

12:30

p.m.

hr Halt 2 hr Halt Remainder

of Day

After 2:30

p.m.

No Halt Remainder

of Day

Remainder

of Day


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Scrip-wise Circuit

Individual scrip-wise band of 20% on either

side will be the circuit for any Scrip

Scrip for which derivative products are

available are excluded from circuit limits

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Rights of the Investors

Receive Contract Notes in the specified format within 24 hours.

Money and Securities to be received within one

working day of the Pay-Out from the Member Broker. Brokerage not to Exceed 2.5% of the Contract Price.

Insist on a Statement of Account

Access to Grievance & Arbitration Mechanism


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Friday, March 29, 2013 29


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Friday, March 29, 2013 30


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Complaints Against Companies

Meeting with RTA / Co

Complaints Against Members

IGRC

Arbitration

Investor Service Centers

Investors Grievance Redressal Mechanism at BSE


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Safeguards for Investors

One Share

1% deposit of IPO

TGF

IPF

Co Info on Website

Trade Info

ETF / MF Depositories

ASBA


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BSE Training Institute

Conducts courses on:

Three months part time - Comprehensive course on capital

Market in coordination with JBIMS,

Retail Debt Market

Corporate Governance

Derivatives / Futures Options etc.( Basic & Advanced)

Interest Rate / Fixed Income Derivatives

Mergers and Acquisitions / Mutual Funds

Technical Analysis / Fundamental Analysis.

Stock Market operations / BOLT Trading Operation.

MBA Certification Courses IGNOU + Lucknow Uni.

BSE Web Site :


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BSE Web Site :www.bseindia.com

Most popular web site of the Capital Market

Focal point for information dissemination

Site to provide information ranging from

Trade information - Live prices & Volumes of Equities &

Derivatives segment

Corporate information- quarterly results of listed companies

Real time Corporate announcements

Personal Portfolio Management (Valuation).


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BSE - SENSEX 21st MARCH, 2012.

SENSEX 21st

March, 2012.

RECENT DEVELOPMENTS IN


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RECENT DEVELOPMENTS ININDIAN CAPITAL MARKET

Mobile Trading

Call Auction in Pre-open Market Session

Smart Order Routing

Currency trading

Indian Depository Receipts

YOUR MONEY PROTECT YOURSELF


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BSE Toll Free No. 1800 22 6663

Thank YouE-mail is [email protected] write to :

Department of Investors Services2nd Floor, Horizon

57, JL Road

Kolkata - 700071033 2282 1375/ 61

Capital Market Safe Guards

Documents

Transcript of Capital Market Safe Guards