What is SEBI?
Securities and Exchange Board of India (SEBI) is the
regulatory body for the stock market of
India. It was established in 1992, under section 3 of SEBI Act.
SEBI has power to regulate all
market intermediaries and also to penalize them in case of
fraudulent activities and unfair trade
practices. SEBI has the authority to regulate and develop the
stock market.
Objectives of SEBI:
▪ To regulate the activitiesof the stock exchange
▪ Protecting the rights of
investors
▪ Preventing fraudulent
and unfair activities
▪ Develop a code of
conduct for
intermediar
Purpose of SEBI:
The main purpose for which SEBI was setup was to keep a check on
malpractices and protect
the interests of investors. It was set up in order to meet the needs of three
groups:
Issuers: To provide a marketplace in which they can raise capital easily.
Investors: To provide protection and supply of information.
Intermediaries: To provide a competitive professional market
List of exchanges in India
NSE BSE MCX
NSE
The National Stock Exchange (NSE) is the leading stock exchange of India, located in Mumbai.
It was established in the year 1992 as the first demutualized electronic exchange in the country.
NSE was the first exchange in the country to provide a modern, fully automated screen-based
electronic trading system which offered easy
trading facility to the investors spread across the
country.
2.BSE
The Bombay Stock Exchange (BSE) is India's & Asia's oldest exchange which began 140 years
ago under a banyan tree! It was India's primary exchange till the emergence of the NSE. Evolving
from an open outcry system, the BSE also shifted to electronic trading mode in a record 50 Days.
With increased connectivity, the BSE was the first Indian Exchange to launch Mobile Trading in
2010. Despite being 140 years old, the BSE is India's fastest exchange with 6 micro seconds!
There are few more exchanges in India which are not so active in the market
What is DEMAT
Accout
Benefits of DEMAT Account:
• Easy and a convenient way to hold securities.
• Safer than paper-shares.
• Reduced paperwork for transfer of securities.
• Reduced transaction cost.
• No "odd lot" problem: even one share can be sold
• Transmission of securities is done by DP, eliminating the need for
notifying companies.
• Automatic credit into DEMAT account for shares arising out of
bonus/split,
consolidation/merger, etc.
• A single DEMAT account can hold investments in both equity and debt
instruments.
• Traders can work from anywhere
What is a Depositary
What is a Depositary
A depository is a facility such as a building, office, or warehouse in which something is deposited
for storage or safeguarding. It can refer to an organization, bank, or institution that holds
securities and assists in the trading of securities. The term can also refer to a depository
institution that accepts currency deposits from customers. There are two depositaries in India and those are NSDL and CDSL. National Securities Depository Limited (NSDL) is an Indian central securities depository based
in Mumbai. It was established on 8th November 1996 as the first electronic securities depository
in India with national coverage. It was established based on a suggestion by a national institution
responsible for the economic development of India. &
Central Depository Services Limited (CDSL) is the second Indian central securities
depository based in Mumbai. Its main function is the holding securities either in certificated or
dematerialized form, to enable book entry transfer of securities.
Market Timing
Market timings
Segment Timings
Equity & FNO 09:15 AM - 3:30 PM
Commodity 09:00:00 AM - 11:30 PM or 11:55 PMCurrency 09:00 AM - 05:00 PM
Cross currency 09:00 AM - 07:30 PM
Derivatives / F&O
Market
A derivative is a financial instrument whose value is derivedfrom the value of another
asset, which is known as the underlying.
When the price of the underlying changes, the value of thederivative also changes.
A Derivative is not a product. It is a contract that derives
its value from changes in the
price of the underlying.
Example: The value of a gold futures contract is derived
from the value of the underlying asset
Derivatives / F&O Marke
Futures Options
Futures
What is a Futures Contract
A futures contract is a legal agreement to buy or sell a particular commodity or assetatapredetermined price at a specified time in the future. Futures contracts are standardizedforquality and quantity to facilitate trading on a futures exchange. The buyer of a futurescontractis taking on the obligation to buy the underlying asset when the futures contract expires. Theseller of the futures contract is taking on the obligation to provide the underlying assetattheexpiration date.
option
Options
What are Option Contracts?
An options contract is an agreement between a buyer and seller that gives the
purchaser of
the option the right to buy or sell a particular asset at a later date at an agreed
upon
price. Options contracts are often used in securities
There are 2 types of Options
• Call Option(Bullish)
• Put Option (Bearish
Call Option –
Call option refers to the Assuming that the stock or underlying asset price will Rise. Technically
a call option is defined as an option to buy assets at an agreed price on or before a particular
date.
Put Option –
Put option refers to the Assuming that the stock or underlying asset price will Fall. Technically
a put option is defined as an option to sell assets at an agreed price on or before a particular
date.
Contract Name (Expiry)-
Similar to future contract expiry one can buy /Sell Option of current month + 2 months
maximum
Example- If you want to buy a Option contract one can buy current month i.e. March one can
buy for April or May.
Option PremiumPremium is the amount paid to get the right.
Example-Let’s say you want to buy a house but before buying you give a token to the seller
both agreeing that the Buyer may buy the said house at a particular date and at a particular
price and the sell may sell the said house at that particular date and price.
So the amount which is given to the seller i.e. token is the premium.
Premium is basically the amount required to be paid to get that particular right, As the
example suggest that the buyer and seller may have right to buy/sell but not a obligation
(Compulsory) the sell/buyer may deny the contract.
Option Strike PriceStrike Price is basically a price you are quoting option for.
Example- Let take a price scale of Reliance Industries Stock
General terms
A stock index or stock market index is a measurement of a section of the stock market. It is
computed from the prices of selected stocks. It is a tool used by investors and financial
managers to describe the market, and to compare the return on specific investments.
You may often hear people speaking that the ‘market’ fell one day, or that the ‘market’ jumped.
However, if you read the stock table, you will realize that not all stocks rose or fell. There were
some which moved in the opposite direction. This is called INDEX.
NIFTY 50
The NIFTY 50 index is National Stock Exchange of India's benchmark broad based stock market
index for the Indian equity market. Full form of NIFTY is National Stock Exchange Fifty. It
comprises of 50 Indian company stocks in 12 sectors and is one of the main stock indices used
in India.NIFTY 50 Index has shaped up as a largest single financial product in India, with an
ecosystem comprising of exchange traded funds, exchange-traded futures and options, other
index funds and OTC derivatives.
SENSEX
The BSE SENSEX is a free-float market-weighted stock market index of 30 well-established and
financially sound companies listed on Bombay Stock Exchange. The 30 component companies
which are some of the largest and most actively traded stocks, are representative of
various industrial sectors of the Indian economy.
Volatility
Volatility is the range of price change that a security experiences over a given period of time. If
the price stays relatively stable, the security has low volatility. A highly volatile security is one
that hits new highs and lows, moves erratically, and experiences rapid increases and dramatic
falls.
.
Why do
companies come
to Share Market?
01
A company enters the primary market to raise funds.
It is in the primary market that a company
gets registered to issue shares to the public and raise money.
Companies generally get listed on
the stock exchange through the primary market route.
Ipo
Initial Public Offering (IPO) is the process by which a private company can go public by sale of
its stocks to general public. It could be a new, young company or an old company which decides
to be listed on an exchange and hence goes public.
Companies can raise equity capital with the help of an IPO by issuing new shares to the public
or the existing shareholders can sell their shares to the public without raising any fresh capital.
ASBA
ASBA process facilitates retail individual investors bidding at a cut-off, with a single option, to
apply through Self Certified Syndicate Banks (SCSBs), in which the investors have bank accounts.
SCSBs are those banks which satisfy the conditions laid by SEBI. SCSBs would accept the
applications, verify the application, block the fund to the extent of bid payment amount, upload
the details in the web based bidding system of NSE, unblock once basis of allotment is finalized
and transfer the amount for allotted shares to the issuer.
Applications Supported by Blocked Amount (ASBA) is a process developed by the India's Stock
Market Regulator SEBI for applying to IPO. In ASBA, an IPO applicant's account doesn't get
debited until shares are allotted to them.
What is SEBI?
Securities and Exchange Board of India (SEBI) is the
regulatory body for the stock market of
India. It was established in 1992, under section 3 of SEBI Act.
SEBI has power to regulate all
market intermediaries and also to penalize them in case of
fraudulent activities and unfair trade
practices. SEBI has the authority to regulate and develop the
stock market.
Objectives of SEBI:
▪ To regulate the activitiesof the stock exchange
▪ Protecting the rights of
investors
▪ Preventing fraudulent
and unfair activities
▪ Develop a code of
conduct for
intermediar
Purpose of SEBI:
The main purpose for which SEBI was setup was to keep a check on
malpractices and protect
the interests of investors. It was set up in order to meet the needs of three
groups:
Issuers: To provide a marketplace in which they can raise capital easily.
Investors: To provide protection and supply of information.
Intermediaries: To provide a competitive professional market
List of exchanges in India
NSE BSE MCX
NSE
The National Stock Exchange (NSE) is the leading stock exchange of India, located in Mumbai.
It was established in the year 1992 as the first demutualized electronic exchange in the country.
NSE was the first exchange in the country to provide a modern, fully automated screen-based
electronic trading system which offered easy
trading facility to the investors spread across the
country.
2.BSE
The Bombay Stock Exchange (BSE) is India's & Asia's oldest exchange which began 140 years
ago under a banyan tree! It was India's primary exchange till the emergence of the NSE. Evolving
from an open outcry system, the BSE also shifted to electronic trading mode in a record 50 Days.
With increased connectivity, the BSE was the first Indian Exchange to launch Mobile Trading in
2010. Despite being 140 years old, the BSE is India's fastest exchange with 6 micro seconds!
There are few more exchanges in India which are not so active in the market
What is DEMAT
Accout
Benefits of DEMAT Account:
• Easy and a convenient way to hold securities.
• Safer than paper-shares.
• Reduced paperwork for transfer of securities.
• Reduced transaction cost.
• No "odd lot" problem: even one share can be sold
• Transmission of securities is done by DP, eliminating the need for
notifying companies.
• Automatic credit into DEMAT account for shares arising out of
bonus/split,
consolidation/merger, etc.
• A single DEMAT account can hold investments in both equity and debt
instruments.
• Traders can work from anywhere
What is a Depositary
What is a Depositary
A depository is a facility such as a building, office, or warehouse in which something is deposited
for storage or safeguarding. It can refer to an organization, bank, or institution that holds
securities and assists in the trading of securities. The term can also refer to a depository
institution that accepts currency deposits from customers. There are two depositaries in India and those are NSDL and CDSL. National Securities Depository Limited (NSDL) is an Indian central securities depository based
in Mumbai. It was established on 8th November 1996 as the first electronic securities depository
in India with national coverage. It was established based on a suggestion by a national institution
responsible for the economic development of India. &
Central Depository Services Limited (CDSL) is the second Indian central securities
depository based in Mumbai. Its main function is the holding securities either in certificated or
dematerialized form, to enable book entry transfer of securities.
Market Timing
Market timings
Segment Timings
Equity & FNO 09:15 AM - 3:30 PM
Commodity 09:00:00 AM - 11:30 PM or 11:55 PMCurrency 09:00 AM - 05:00 PM
Cross currency 09:00 AM - 07:30 PM
Derivatives / F&O
Market
A derivative is a financial instrument whose value is derivedfrom the value of another
asset, which is known as the underlying.
When the price of the underlying changes, the value of thederivative also changes.
A Derivative is not a product. It is a contract that derives
its value from changes in the
price of the underlying.
Example: The value of a gold futures contract is derived
from the value of the underlying asset
Derivatives / F&O Marke
Futures Options
Futures
What is a Futures Contract
A futures contract is a legal agreement to buy or sell a particular commodity or assetatapredetermined price at a specified time in the future. Futures contracts are standardizedforquality and quantity to facilitate trading on a futures exchange. The buyer of a futurescontractis taking on the obligation to buy the underlying asset when the futures contract expires. Theseller of the futures contract is taking on the obligation to provide the underlying assetattheexpiration date.
option
Options
What are Option Contracts?
An options contract is an agreement between a buyer and seller that gives the
purchaser of
the option the right to buy or sell a particular asset at a later date at an agreed
upon
price. Options contracts are often used in securities
There are 2 types of Options
• Call Option(Bullish)
• Put Option (Bearish
Call Option –
Call option refers to the Assuming that the stock or underlying asset price will Rise. Technically
a call option is defined as an option to buy assets at an agreed price on or before a particular
date.
Put Option –
Put option refers to the Assuming that the stock or underlying asset price will Fall. Technically
a put option is defined as an option to sell assets at an agreed price on or before a particular
date.
Contract Name (Expiry)-
Similar to future contract expiry one can buy /Sell Option of current month + 2 months
maximum
Example- If you want to buy a Option contract one can buy current month i.e. March one can
buy for April or May.
Option PremiumPremium is the amount paid to get the right.
Example-Let’s say you want to buy a house but before buying you give a token to the seller
both agreeing that the Buyer may buy the said house at a particular date and at a particular
price and the sell may sell the said house at that particular date and price.
So the amount which is given to the seller i.e. token is the premium.
Premium is basically the amount required to be paid to get that particular right, As the
example suggest that the buyer and seller may have right to buy/sell but not a obligation
(Compulsory) the sell/buyer may deny the contract.
Option Strike PriceStrike Price is basically a price you are quoting option for.
Example- Let take a price scale of Reliance Industries Stock
General terms
A stock index or stock market index is a measurement of a section of the stock market. It is
computed from the prices of selected stocks. It is a tool used by investors and financial
managers to describe the market, and to compare the return on specific investments.
You may often hear people speaking that the ‘market’ fell one day, or that the ‘market’ jumped.
However, if you read the stock table, you will realize that not all stocks rose or fell. There were
some which moved in the opposite direction. This is called INDEX.
NIFTY 50
The NIFTY 50 index is National Stock Exchange of India's benchmark broad based stock market
index for the Indian equity market. Full form of NIFTY is National Stock Exchange Fifty. It
comprises of 50 Indian company stocks in 12 sectors and is one of the main stock indices used
in India.NIFTY 50 Index has shaped up as a largest single financial product in India, with an
ecosystem comprising of exchange traded funds, exchange-traded futures and options, other
index funds and OTC derivatives.
SENSEX
The BSE SENSEX is a free-float market-weighted stock market index of 30 well-established and
financially sound companies listed on Bombay Stock Exchange. The 30 component companies
which are some of the largest and most actively traded stocks, are representative of
various industrial sectors of the Indian economy.
Volatility
Volatility is the range of price change that a security experiences over a given period of time. If
the price stays relatively stable, the security has low volatility. A highly volatile security is one
that hits new highs and lows, moves erratically, and experiences rapid increases and dramatic
falls.
.
Why do
companies come
to Share Market?
01
A company enters the primary market to raise funds.
It is in the primary market that a company
gets registered to issue shares to the public and raise money.
Companies generally get listed on
the stock exchange through the primary market route.
Ipo
Initial Public Offering (IPO) is the process by which a private company can go public by sale of
its stocks to general public. It could be a new, young company or an old company which decides
to be listed on an exchange and hence goes public.
Companies can raise equity capital with the help of an IPO by issuing new shares to the public
or the existing shareholders can sell their shares to the public without raising any fresh capital.
ASBA
ASBA process facilitates retail individual investors bidding at a cut-off, with a single option, to
apply through Self Certified Syndicate Banks (SCSBs), in which the investors have bank accounts.
SCSBs are those banks which satisfy the conditions laid by SEBI. SCSBs would accept the
applications, verify the application, block the fund to the extent of bid payment amount, upload
the details in the web based bidding system of NSE, unblock once basis of allotment is finalized
and transfer the amount for allotted shares to the issuer.
Applications Supported by Blocked Amount (ASBA) is a process developed by the India's Stock
Market Regulator SEBI for applying to IPO. In ASBA, an IPO applicant's account doesn't get
debited until shares are allotted to them.
What is SEBI?
Securities and Exchange Board of India (SEBI) is the
regulatory body for the stock market of
India. It was established in 1992, under section 3 of SEBI Act.
SEBI has power to regulate all
market intermediaries and also to penalize them in case of
fraudulent activities and unfair trade
practices. SEBI has the authority to regulate and develop the
stock market.
Objectives of SEBI:
▪ To regulate the activitiesof the stock exchange
▪ Protecting the rights of
investors
▪ Preventing fraudulent
and unfair activities
▪ Develop a code of
conduct for
intermediar
Purpose of SEBI:
The main purpose for which SEBI was setup was to keep a check on
malpractices and protect
the interests of investors. It was set up in order to meet the needs of three
groups:
Issuers: To provide a marketplace in which they can raise capital easily.
Investors: To provide protection and supply of information.
Intermediaries: To provide a competitive professional market
List of exchanges in India
NSE BSE MCX
NSE
The National Stock Exchange (NSE) is the leading stock exchange of India, located in Mumbai.
It was established in the year 1992 as the first demutualized electronic exchange in the country.
NSE was the first exchange in the country to provide a modern, fully automated screen-based
electronic trading system which offered easy
trading facility to the investors spread across the
country.
2.BSE
The Bombay Stock Exchange (BSE) is India's & Asia's oldest exchange which began 140 years
ago under a banyan tree! It was India's primary exchange till the emergence of the NSE. Evolving
from an open outcry system, the BSE also shifted to electronic trading mode in a record 50 Days.
With increased connectivity, the BSE was the first Indian Exchange to launch Mobile Trading in
2010. Despite being 140 years old, the BSE is India's fastest exchange with 6 micro seconds!
There are few more exchanges in India which are not so active in the market
What is DEMAT
Accout
Benefits of DEMAT Account:
• Easy and a convenient way to hold securities.
• Safer than paper-shares.
• Reduced paperwork for transfer of securities.
• Reduced transaction cost.
• No "odd lot" problem: even one share can be sold
• Transmission of securities is done by DP, eliminating the need for
notifying companies.
• Automatic credit into DEMAT account for shares arising out of
bonus/split,
consolidation/merger, etc.
• A single DEMAT account can hold investments in both equity and debt
instruments.
• Traders can work from anywhere
What is a Depositary
What is a Depositary
A depository is a facility such as a building, office, or warehouse in which something is deposited
for storage or safeguarding. It can refer to an organization, bank, or institution that holds
securities and assists in the trading of securities. The term can also refer to a depository
institution that accepts currency deposits from customers. There are two depositaries in India and those are NSDL and CDSL. National Securities Depository Limited (NSDL) is an Indian central securities depository based
in Mumbai. It was established on 8th November 1996 as the first electronic securities depository
in India with national coverage. It was established based on a suggestion by a national institution
responsible for the economic development of India. &
Central Depository Services Limited (CDSL) is the second Indian central securities
depository based in Mumbai. Its main function is the holding securities either in certificated or
dematerialized form, to enable book entry transfer of securities.
Market Timing
Market timings
Segment Timings
Equity & FNO 09:15 AM - 3:30 PM
Commodity 09:00:00 AM - 11:30 PM or 11:55 PMCurrency 09:00 AM - 05:00 PM
Cross currency 09:00 AM - 07:30 PM
Derivatives / F&O
Market
A derivative is a financial instrument whose value is derivedfrom the value of another
asset, which is known as the underlying.
When the price of the underlying changes, the value of thederivative also changes.
A Derivative is not a product. It is a contract that derives
its value from changes in the
price of the underlying.
Example: The value of a gold futures contract is derived
from the value of the underlying asset
Derivatives / F&O Marke
Futures Options
Futures
What is a Futures Contract
A futures contract is a legal agreement to buy or sell a particular commodity or assetatapredetermined price at a specified time in the future. Futures contracts are standardizedforquality and quantity to facilitate trading on a futures exchange. The buyer of a futurescontractis taking on the obligation to buy the underlying asset when the futures contract expires. Theseller of the futures contract is taking on the obligation to provide the underlying assetattheexpiration date.
option
Options
What are Option Contracts?
An options contract is an agreement between a buyer and seller that gives the
purchaser of
the option the right to buy or sell a particular asset at a later date at an agreed
upon
price. Options contracts are often used in securities
There are 2 types of Options
• Call Option(Bullish)
• Put Option (Bearish
Call Option –
Call option refers to the Assuming that the stock or underlying asset price will Rise. Technically
a call option is defined as an option to buy assets at an agreed price on or before a particular
date.
Put Option –
Put option refers to the Assuming that the stock or underlying asset price will Fall. Technically
a put option is defined as an option to sell assets at an agreed price on or before a particular
date.
Contract Name (Expiry)-
Similar to future contract expiry one can buy /Sell Option of current month + 2 months
maximum
Example- If you want to buy a Option contract one can buy current month i.e. March one can
buy for April or May.
Option PremiumPremium is the amount paid to get the right.
Example-Let’s say you want to buy a house but before buying you give a token to the seller
both agreeing that the Buyer may buy the said house at a particular date and at a particular
price and the sell may sell the said house at that particular date and price.
So the amount which is given to the seller i.e. token is the premium.
Premium is basically the amount required to be paid to get that particular right, As the
example suggest that the buyer and seller may have right to buy/sell but not a obligation
(Compulsory) the sell/buyer may deny the contract.
Option Strike PriceStrike Price is basically a price you are quoting option for.
Example- Let take a price scale of Reliance Industries Stock
General terms
A stock index or stock market index is a measurement of a section of the stock market. It is
computed from the prices of selected stocks. It is a tool used by investors and financial
managers to describe the market, and to compare the return on specific investments.
You may often hear people speaking that the ‘market’ fell one day, or that the ‘market’ jumped.
However, if you read the stock table, you will realize that not all stocks rose or fell. There were
some which moved in the opposite direction. This is called INDEX.
NIFTY 50
The NIFTY 50 index is National Stock Exchange of India's benchmark broad based stock market
index for the Indian equity market. Full form of NIFTY is National Stock Exchange Fifty. It
comprises of 50 Indian company stocks in 12 sectors and is one of the main stock indices used
in India.NIFTY 50 Index has shaped up as a largest single financial product in India, with an
ecosystem comprising of exchange traded funds, exchange-traded futures and options, other
index funds and OTC derivatives.
SENSEX
The BSE SENSEX is a free-float market-weighted stock market index of 30 well-established and
financially sound companies listed on Bombay Stock Exchange. The 30 component companies
which are some of the largest and most actively traded stocks, are representative of
various industrial sectors of the Indian economy.
Volatility
Volatility is the range of price change that a security experiences over a given period of time. If
the price stays relatively stable, the security has low volatility. A highly volatile security is one
that hits new highs and lows, moves erratically, and experiences rapid increases and dramatic
falls.
.