1. SEBI INVESTOR AWARENESS PROGRAMME - SECONDARY MARKET
Securities and Exchange Board of India
Securities and Exchange Board of India

2. Securities and Exchange Board of India
Topics to be covered
Structure of Securities Market
Participants in the Secondary Market
Getting started
Where to trade
Trading – a general understanding
How to trade
Post trade
Charges by the stock broker
Settlement
Investor Protection Mechanism
Investors Grievance Redressal
Securities and Exchange Board of India

3. Securities and Exchange Board of India
Structure of Securities Market
The securities market in India can be divided into two segments –
Primary Market
Secondary Market
Securities and Exchange Board of India

4. Participants in the Secondary Market
Stock Exchange
Clearing Corporation
Depositories/ DP
Trading Member (Stock Broker)/ Clearing Member
Registrar to an Issue and Share Transfer Agent
Securities and Exchange Board of India

5. Securities and Exchange Board of India
Getting started
To start trading the following are required –
Trading account
Member – Client Agreement
Risk Disclosure Document
Demat account
Bank account
Permanent Account Number (PAN)
Unique Client Code
Securities and Exchange Board of India

6. Securities and Exchange Board of India
Where to trade
The secondary market is divided into two segments –
Cash/ Equity segment
Derivative segment –
Equity Futures and Option (F & O) – Index / Single Stock
Currency Futures/ Option
Interest Rate Futures
Securities and Exchange Board of India

7. Securities and Exchange Board of India
How to trade
Trade through a SEBI registered Stock Broker, by -
Placing margins as required with the broker
placing order over the phone
etc.
Internet Trading
Wireless / Mobile Trading.
Securities and Exchange Board of India

8. Securities and Exchange Board of India
Post Trade
The stock broker is required to provide contract notes confirming the trades done within 24 hrs of executing the trade
The contract notes can either be in physical or electronic form
Securities and Exchange Board of India

9. Charges by the Stock Broker
Brokerage charged by member broker (maximum 2.5%)
Service tax as stipulated
Securities Transaction Tax
Penalties arising on specific default on behalf of client (investor)
Securities and Exchange Board of India

10. Securities and Exchange Board of India
Settlement
The settlement in the securities market is done on a T+2 Rolling Settlement Cycle (where T = Trading Day).
FAILURE TO
PAY-IN
T + 2
TRADE
SETTLEMENT
Trading
(T)
Option of
Early Pay-in
(T1)
Pay-in and
Pay out
(T2)
Auction
(T3)
Close out
(T4)
Securities and Exchange Board of India

11. Securities and Exchange Board of India
Settlement - Auction
Incase there is a shortage in Pay-in of shares at the time of settlement on T+2, the Stock Exchange purchases the requisite quantity in the Auction Market and gives them to the buying trading member.
Securities and Exchange Board of India

12. Securities and Exchange Board of India
Settlement - Close Out
If the shares could not be bought in the auction i.e. if shares are not offered for sale in the auction, the transactions are closed out as per SEBI guidelines
Securities and Exchange Board of India

13. Investor Protection Mechanism
Investor Protection Fund or Consumer Protection Fund (IPF/ CPF) is set up by the Stock Exchanges to meet the legitimate investment claims of the clients of the defaulting members that are not of speculative nature
Securities and Exchange Board of India

14. Investor Grievance Redressal
Complaints can be filed with OIAE department of SEBI against companies for delay or non-receipt of shares, refund orders, etc., and with Stock Exchanges against brokers on certain trade disputes or non receipt of payment/securities.
Arbitration
Court of Law
Securities and Exchange Board of India

15. Securities and Exchange Board of India
THANK YOU
Securities and Exchange Board of India