ATHARVA SCHOOL OF BUSINESS

CAPITAL MARKETS

GROUP MEMBERS BIPIN YADAV14 DHAWAL JAIN21 JAGIN DESAI32 JIGAR KORADIA35 MANTHAN SHAH47 SHAILESH BAJAJ66 TEJAL KARIYA71

FINANCIAL MARKET MONEY MARKET CAPITAL MARKET INTRODUCTION

WHAT IS CAPITAL MKT?  A capital market is simply any market where a government or a company can raise money (capital) to fund their operations and long term investment.  Selling bonds and selling stock are two ways to generate capital, thus BOND MARKET and STOCK MARKET are considered capital markets.  Capital Market is characterized as the provider of long- term financing. The instruments used for this long-term financing are equity instruments, insurance instruments, derivative instruments and bonds.

CAPITAL MARKET PRIMARY MARKET SECONDARY MARKET

PRIMARY MARKET Primary Market also called the new issue market, is the market for issuing new securities. Many companies, especially small and medium scale, enter the primary market to raise money from the public to expand their businesses.

METHODS OF ISSUING SECURITIES IN PRIMARY MARKET Initial public offering (IPO) FOLLOW ON PUBLIC OFFERING (FPO) Rights issue (for existing companies ) Preferential issue

IPO- Initial Public Offer WHAT IS IPO..? REQUIREMENTS BY SEBI TO ISSUE IPO..?? REQUIREMENTS BY CUSTOMER FOR SUBSCRIBING IPO..? IPO IN RELATION WITH ASBA (APPLICATION SUPPORTED BY BLOCKED AMOUNTS)

IPO IN RELATION WITH ASBA ASBA :- APPLICATION SUPPORTED BY BLOCKED AMOUNTS

What is Secondary Market?  The secondary market, also called aftermarket, is the financial market where previously issued securities and financial instruments such as stock, bonds, options, and futures are bought and sold.  Secondary mkt is also called as STOCK MARKET.

WHAT IS A SHARE????

Stock Exchanges in INDIA Mangalore Stock Exchange Hyderabad Stock Exchange Uttar Pradesh Stock Exchange Coimbatore Stock Exchange Cochin Stock Exchange Bangalore Stock Exchange Saurashtra Kutch Stock Exchange Pune Stock Exchange National Stock Exchange National Stock Exchange OTC Exchange of India Calcutta Stock Exchange Inter-connected Stock Exchange (NEW) Madras Stock Exchange Bombay Stock Exchange Bombay Stock Exchange Madhya Pradesh Stock Exchange Vadodara Stock Exchange The Ahmedabad Stock Exchange Magadh Stock Exchange Gauhati Stock Exchange Bhubaneswar Stock Exchange Jaipur Stock Exchange Delhi Stock Exchange Assoc Ludhiana Stock Exchange

Difference BSE stands for Bombay stock exchange. BSE index comes after averaging the 30 listed companies under it BSE provides state based trading BSE is indicated by sensex. NSE stands for National Stock Exchange. NSE index comes after averaging the 50 listed companies under it NSE provides nation wide trading. NSE is indicated by Nifty.

BSE RELIANCE IND 16. M& M 2. INFOSYS TECH 17. JINDAL STEEL P 3. ICICI BANK 18. HINDALCO 4. L & T 19. WIPRO 5. HDFC 20. STERLITE INDS 6. HDFC BANK 21. TATA POWER 7. ITC 22. MARUTI SUZUKI 8. SBI 23. NTPC 9. ONGC 24. HERO HONDA 10. BHARTI AIRTEL 25. RELIANCE INFRA 11. TATA CONSULT 26. CIPLA 12. HINDUSTAN UNILEVER 27. JAIPRAKASH ASSO 13. BHEL 28. DLF 14. TATA STEEL 29. RELIANCE COMM 15. TATA MOTORS 30. ACC

NSE 50 NSE RELIANCE IND 26. NTPC 2. INFOSYS TECH 27. PUNJAB NATIONAL BANK 3.ICICI BANK 28. KOTAK MAHINDRA BANK 4. L& T 29. HERO HONDA 5. HDFC 30. RELIANCE INFRA 6.HDFC BANK 31. CIPLA 7.ITC 32. SUN PHARMA 8. SBI 33. CAIRN 9. ONGC 34. JAIPRAKASH ASSO 10. BHARTI AIRTEL 35. DLF 11. TATA CONSULT 36. UNITECH 12.AXIS BANK 37. SIEMENS 13.BHEL 38. IDEA CELLULAR 14. TATA STEEL 39. AMBUJA CEMENT 15. TATA MOTORS 40. SAIL 16. HINDUSTAN UNILEVER 41. RELIANCE COM 17. IDFC 42. ACC 18. M & M 43. BPCL 19. JINDAL STEE.L 44. ABB 20. HINDALCO 45. REL CAPITAL 21.WIPRO 46. HCL TECHNO 22. TATA POWER 47. RANBAXY LAB 23. STERLINE IND 48. POWER GRID 24. GAIL(I) 49. RELIANCE POW 25.MARUTI SUZUKI 50. SUZION ENRGY

Securities Exchange Board of India

Governing Body The Securities and Exchange Board of India (SEBI) is the regulatory authority in India established under Section 3 of SEBI Act,  POWERS  Functions

De-Mat De-Mat account is a safe and convenient means of holding securities just like a bank account is for funds. Today, practically 99.9% settlement (of shares) takes place on demat mode only. A maximum of 3 persons are allowed to open a joint demat account in their names.

Depositaries CENTRAL DEPOSITORY SECURITIES LIMITED

Role of broker & sub broker in CAPITAL MARKET  A broker is a member of a recognized stock exchange, who is permitted to do trades on the screen-based trading system of different stock exchanges. He is enrolled as a member with the concerned exchange and is registered with SEBI.  A sub broker is a person who is registered with SEBI as such and is affiliated to a member of a recognized stock exchange

What kind of detail do I hav 2 provide in client registration form? The brokers have to maintain a database of their clients, for which you have to fill client registration form. In case of individual client registration, you have to broadly provide following information: Permanent Account Number (PAN), which has been made mandatory for all the investors participating in the securities market. Your name, date of birth, photograph, address, educational qualifications, occupation, residential status(Resident Indian/ » NRI/others) Bank and depository account details If you are registered with any other broker, then the name of broker and concerned Stock exchange and Client Code Number.

QUESTIONS IN THE MIND OF INVESTORS???  How do I place my orders with the broker or sub broker?  What is the maximum brokerage that a broker can charge?  What are the charges that can be levied on the investor by a stock broker?  What is STT?

HOW TRADING TAKES PLACE & WHT IS THE PROCESS OF TRADING Step1: Investor or trader decides to trade Step2: Places order with a broker to buy or sell the required quantity of respective security Step3: Best priced order matches based on price- time priority Step4: Order is electronically communicated to the brokers terminal

Step5: Trade confirmation slip issued to the investor/trader by the broker Step6: Within 24hrs of trade execution, contract note is issued to the investor/trader by the broker Step7: Pay-in of funds & securities before T+2 day Step8: Pay-out of funds & securities on T+2 day.

Clearing & Settlement Process

INTERMEDIARIES IN CAPITAL MARKET

INVESTORS IN CAPITAL MARKET  Individuals.  Corporate.  Governments.  Foreign countries.  Banks.  Financial Institutions

CLASSIFICATION OF INDIAN CAPITAL MARKET INDIAN CAPITAL MARKET DEBT MARKET EQUITY MARKET COMMODITY MARKET DERIVATIVES MUTUAL FUNDS

Cash market Can buy in small Quantity Delivery take place Less risky Use by small investor Benefit of dividend Eg Eg. I want to buy 1 share of reliance industries or I can buy 1000 shares also depending upon my capital.

Future Market 1 has to buy in large quantity Unlimited losses and unlimited profit Delivery doesn't take place No dividend Use by large trader High risk Eg. If I have the capacity to loss money and I have a proper news then I can buy more quantity by paying margin amount only.

What we Mean by Large Cap Mid Cap Small Cap

FACTORS AFFECTING INDIAN CAPITAL MARKET PUBLIC SENTIMENT Speculation or Insider Trading FDI Change in Policy

 GOVERNMENT POLICIES  GLOBAL MARKET  INFLATION  FINANCIAL STATEMENTS OF COMPANIES

1. BANKING SECTOR 2. CAPITAL GOODS SECTOR 3. CEMENT SECTOR

4. OIL& GAS 5.INFRASTRURURE 6. POWER 7. TELECOMMUNICATION

8. METAL 9. IT 10. AUTO

FUTUREOF INDIAN CAPITAL MARKET

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