2. WHAT IS STOCK MARKET
A stock market or equity market is a public
market for the trading of company stock and
derivatives at an agreed price; these are
securities listed on a stock exchange as well as
those only traded privately.
3. REQUIREMENTS FOR LISTING
1) Memorandum and Articles of Association
2) Minimum Public Offer
3) Prospectus
4) Allotment of Shares
5) Further Issue and Rights Issue
6) Listing Fees & Application
7) Listing Agreement
4. WHAT IS A STOCK EXCHANGE ?
A stock exchange, share market or
bourse is a corporation or mutual
organization which provides facilities for
stock brokers and traders, to trade
company stocks and other securities
6. BOMBAY STOCK EXCHANGE
Established in 1875
Oldest stock exchange in Asia
It became the first stock exchange to be
recognized by the Indian Government
under the Securities Contracts Regulation
Act.1956.
Flagship index of BSE is BSE SENSEX which
is an index of 30 companies (19294.12)
7. NATIONAL STOCK EXCHANGE
Established in 1992
It is the largest stock exchange in India
Its key index is the S & P Nifty, known as
the Nifty, an index of fifty major stocks
weighted by market capitalization.
(5816.70)
8. MCX
MCX Stock Exchange Limited (MCX-SX), India’s new stock
exchange, is recognized by Securities and Exchange
Board of India under Section 4 of Securities Contracts
(Regulation) Act, 1956. The Exchange was notified as a
“recognized stock exchange” by Ministry of Corporate
Affairs, Govt. of India on December 21, 2012.
MCX-SX launched Capital Market Segment, Futures and
Options Segment and flagship index ‘SX40’ on February
9, 2013 and commenced trading from February 11, 2013.
“SX40”, is a free-float based index consisting of 40 large-
cap, liquid stocks representing diverse sectors of the
economy. Its base value is 10,000 with the base date of
March 31, 2010. (11533.78)
9. MAJOR STOCK EXCHANGES
ECONOMY STOCK
EXCHANGE
INDEX
US & EUROPE NYSE DJIA 30
US NASDAQ NASDAQ 100
JAPAN TOKYO STOCK
EXCHANGE
NIKKEI 225
UNITED
KINGDOM
LONDON STOCK
EXCHANGE
FTSE 100
CHINA SHANGHAI STOCK
EXCHANGE
SSE COMPOSITE
HONG KONG HONGKONG STOCK
EXCHANGE
HANGSENG
BRAZIL BM&F BOVESPA BOVESPA 50
10. ECONOM
Y
STOCK
EXCHANGE
INDEX
GERMANY DEUTSCHE BORSE DAX 30
SWITZERLA
ND
SIX SWISS
EXCHANGE
SMI
FRANCE FRENCH STOCK
EXCHANGE
CAC 40
INDIA BOMBAY STOCK
EXCHANGE
SENSEX 30
SOUTH
KOREA
KOREA EXCHANGE KOSPI
INDIA NATIONAL STOCK
EXCHNGE
NIFTY
11. Trading Mechanism
In this system a member can punch
into the computer quantities of
securities and prices at which he
likes to transact.
The transaction is executed as soon
as it finds a matching sale or buy
order from a counter party.
12. Trading Mechanism
A single consolidated order book for
each stock displays, on a real time
basis, buy and sell orders originating
from all over the country.
The book stores only limit orders,
which are orders to buy or sell shares at
a stated quantity and stated price.
The limit orders are executed only if
the price quantity conditions match.
13. Brokerage
A fee charged by a broker for facilitating
the purchase or sale of any security.
14. GTC Order
A Good Till Cancelled (GTC) order
remains in the system until the trading
member cancels it.
15. GTD Order
A Good Till Day (GTD) order remains in
the system till the end of the trading day.
At close all unexecuted orders will be
cancelled and a fresh order will need to be
placed to execute the unexecuted orders the
next day.
16. Limit Orders
Investors may also place limit
orders, whereby they specify prices
at which they are willing to buy or
sell a security.
17. Market Order
Market Order is an order to buy or sell
securities at the best price obtainable in the
market at the time it is matched by the
exchange. Therefore, chances of its getting
executed are better
18. Stop Loss Order
A Stop Loss is an order to buy (or sell) a
security once the price of the security
climbs above or drops below a specified
price. It is an order to buy a security at no
more or sell at no less than a specified
price limit.
19. Market Timings
Trading on the equities segment takes
place on all days of the week (except
Saturdays and Sundays and holidays
declared by the Exchange in advance).
The market timings of the equities
segment are:
Normal Market Open : 09:515 hours
Normal Market Close : 15:30 hours
20. Clearing and settlement Process
Trade details from Exchange to Clearing
corporation
Clearing Corporation notifies the consummated
trade details to custodians who affirm back.
Based on the affirmation, clearing house
determines obligations.
Download of obligation and pay-in advice of
funds/ securities.
Instructions to clearing banks to make funds
available by pay-in- time.
Instructions to depositories to make securities
available by pay-in- time.
21. Settlement Cycle
Rolling Settlement
At NSE and BSE, trades in rolling
settlement are settled on a T+2 basis i.e.
on the 2nd working day.
For arriving at the settlement day all
intervening holidays, which include
bank holidays, NSE holidays, Saturdays
and Sundays are excluded.
Typically trades taking place on
Monday are settled on Wednesday,
Tuesday's trades settled on Thursday
and so on.
22. Duration of trading halt (in minutes)
%
movement
in either
indices in
either
direction
Before 1
p.m.
1 p.m. to 2
p.m.
2 p.m. to
2.30 p.m.
After 2.30
p.m.
10 60 30 30 No halt
15 120 60 Trading halt
for the
remainder
of the day
Trading halt
for the
remainder
of the day
20 Trading
halt for the
remainder
of the day
Trading halt
for the
remainder
of the day
Trading halt
for the
remainder
of the day
Trading halt
for the
remainder
of the day
