1. Securities Market Dr. Rana Singh 9811828987 www.ranasingh.org

10. Prospectus

13. Types of Financial Markets Types of Financial Markets Types of Financial Markets Types of Financial Markets Types of Financial Markets Types of Financial Markets Capital Market Money Market Forex Market Equity Debt Retail Corporate Banks FI FIIs T-Bills Call Money ICD, CP, CD Banks Corporate FI, FIIs Spots Forwards Banks Corporate FI, FIIs Agriculture Produces, Metals, Financial futures like Interest rate, currency, indices etc Banks, FIs Corporate Derivatives Market

14. Structure of Indian Financial Markets Structure of Indian Financial System: GOI Ministry of Finance RBI SEBI Depositories Companies Broker Dealers Clearing Corporations Stock Exchanges Mutual Funds Banks Registrar of Companies Merchant Bankers Registrar & Transfer Agents Primary Dealers GOI Dept of Co. Affairs Depository Participants GOI Ministry of Finance RBI SEBI Depositories Companies Broker Dealers Clearing Corporations Stock Exchanges Mutual Funds Banks Registrar of Companies Merchant Bankers Registrar & Transfer Agents Primary Dealers GOI Dept of Co. Affairs Depository Participants

15. Financial System Suppliers of Funds Individuals Businesses Governments Demanders of Funds Individuals Businesses Governments Financial Markets Money Market Capital Market Financial Institutions Commercial Banks Insurance Companies Mutual Funds Provident/Pension Funds Non-banking Financial Companies Private Placement Funds Securities Funds Securities Funds Funds Securities Securities Funds Funds Deposits Shares Loans

16. Primary Market An Overview

20. Exceptions The following are eligible for exemption from entry norms. (a) Private Sector Banks (b) Public sector banks (c) An infrastructure company whose project has been appraised by a PFI or IDFC or IL&FS or a bank which was earlier a PFI and not less than 5% of the project cost is financed by any of these institutions. (d) Rights issue by a listed company

23. Difference between shares offered through book building and offer of shares through normal public issue Payment only after allocation. Payment if made at the time of subscription wherein refund is given after allocation. Payment Demand for the securities offered can be known everyday as the book is built. Demand for the securities offered is known only after the closure of the issue Demand Price at which securities will be offered/allotted is not known in advance to the investor. Only an indicative price range is known. Price at which the securities are offered/allotted is known in advance to the investor Pricing Book Building Process Fixed Price Process Features

29. Contd… ADR’s and GDR’s are identical in legal, technical ,operational and administrative point of view GDR ADR Underlying shares correspond to GDR are fixed in ratio i.e. 1 GDR = 10 shares To facilitate the purchase, holding and sale of non U S Securities by U S investors. Allows issuer to raise capital in two or more markets simultaneously Quoted and traded in $ in U S markets Issued to public or private to markets inside or outside U S Negotiable U S certificate representing ownership of shares in a Non U S corp..

30. Secondary Market Overview of : 1.) Trading and Settlement. 2.) Order Management.

31. Transaction Cycle

32. Trading & Settlement Process Investor Depository Exchange Broker Clearing House

33. Contd…..

42. Settlement Process in CM segment of NSE

44. Flow: Trade Processing Exchange Customer Broker Trading Terminal Place order Enters order Order confirm Clearing Corporation Depository Trade Details Obligation report Clearing Banks Funds Availability Security Availability DP Security Transfer Security transfer To CM pool acct Security transfer CC a/c

52. Corporate Hierarchy