Share Market

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India’s Heart Beat : 

India’s Heart Beat शेयरMarket

What is Share? : 

What is Share? Share is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is issued by a company or can be purchased from the stock market. Owning a stock or a share means you are a partial owner of the company Investments in stocks can generate returns

Definition of Stock Market : 

Definition of Stock Market Stock exchange is that place where trading of shares is done in terms of sale and purchase & Provides a market for the trading of securities to individuals and organizations seeking to invest their saving or excess funds through the purchase of securities

20 Major Stock Exchanges : 

20 Major Stock Exchanges United States New York Stock Exchange   Japan Tokyo Stock Exchange   United States NASDAQ   Europe Euronext   United Kingdom London Stock Exchange   China Shanghai Stock Exchange   Hong Kong Hong Kong Stock Exchange  Canada Toronto Stock Exchange   Spain BME Spanish Exchanges   Brazil BM&F Bovespa  India Bombay Stock Exchange   Germany Deutsche Börse  Australia Australian Securities Exchange   India National Stock Exchange of India   Switzerland SIX Swiss Exchange   China Shenzhen Stock Exchange   South Korea Korea Exchange Nordic Countries NASDAQ OMX Nordic Exchange   South Africa JSE Limited  Taiwan Taiwan Stock Exchange  Italy Borsa Italiana

World’s 1st Stock Exchange Market : 

World’s 1st Stock Exchange Market The origin of the stock exchange is traced back to the stock exchange in Antwerp (1460). But the Amsterdam Stock Exchange is considered as the oldest stock Exchange in the World. This was established in 1602 by the Dutch East India Company that issued the first shares on the Amsterdam Stock Exchange.

World’s Largest Stock Exchange Hub : 

World’s Largest Stock Exchange Hub The first central location of the Exchange was a room, rented in 1792 for $200 a month, located at 40 Wall New York Stock Exchange: $21.79 trillion Location: New York City, United States Founded: March 8, 1817 Currency :United States dollar No. of listing: 2,304 Indexes: Dow Jones

stock exchanges in India : 

stock exchanges in India There are 23 stock exchanges in India. Among them two are national level stock exchanges namely Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE). The rest 21 are Regional Stock Exchanges (RSE).

The Stock Exchange, Bombay(bse) : 

The Stock Exchange, Bombay(bse) The Bombay Stock Exchange (BSE) is the oldest stock exchange in Asia and largest number of listed companies in the world, with 4990 listed as of Mid Sep.2010.It is located at Dalal Street, Mumbai, India. On Aug, 2010, the equity market capitalization of the companies listed on the BSE was US$1.39 trillion, making it the 4th largest stock exchange in Asia and the 11th largest in the world.

oldest exchange in Asia : 

The Bombay Stock Exchange is the oldest exchange in Asia. It traces its history to the 1850s, when 4 Gujarati and 1 Parsi stockbroker would gather under banyan trees in front of Mumbai's Town Hall. The location of these meetings changed many times, as the number of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as 'The Native Share & Stock Brokers Association'. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act oldest exchange in Asia

History BSE : 

History BSE Dalal Street[citation needed]. Similar to Wall Street in New York City, it is often used as a metonym for the entire Indian financial establishment. lot has changed since 1875 when 318 persons by paying a then princely amount of Re. 1, became members of what today is called Bombay Stock Exchange Limited (BSE).

classified : 

classified Companies have been classified as large cap companies and small cap companies A large cap company is a company with a minimum issue size of Rs. 10 crore and market capitalization of not less than Rs. 25 crore. A small cap company is a company other than a large cap company. minimum market capitalization shall be Rs. 5 crore

market capitalizationcalculated : 

market capitalizationcalculated market capitalization shall be calculated by multiplying the post-issue paid-up number of equity shares with the issue price The minimum number of public shareholders after the issue shall be 1000. The minimum issue size shall be Rs. 3 crore;

resolving the complaints : 

resolving the complaints Companies making public/rights issues are required to deposit 1% of the issue amount with the Designated Stock Exchange before the issue opens. This amount is liable to be forfeited in the event of the company not resolving the complaints of investors regarding delay in sending refund orders/share certificates, non-payment of commission to underwriters, brokers, etc.

Annual Listing Fees : 

Annual Listing Fees All companies listed on BSE are required to pay to BSE the Annual Listing Fees by 30th April of every financial year as per the Schedule of Listing Fees prescribed from time to time i) Companies with listed capital* up to Rs. 5 crore- 10000 (ii) Above Rs. 5 crore and upto Rs. 10 crore- 15000 (iii)Above Rs. 10 crore and upto Rs. 20 crore- 30000

Cont……… : 

Cont……… Companies which have a listed capital* of more than Rs. 20 crore are required to pay an additional fee @ Rs. 750 for every additional Rs. 1 crore or part thereof.

SENSEX : 

SENSEX The SENSEX was first formed on 1-1-1986 and used the market capitalization of the 30 most traded stocks of BSE. The base was 1979 and taken as 100. The 30 scrips of 1986 and no more the same - some have been removed while some have been added. At irregular intervals, the Bombay Stock Exchange (BSE) authorities review and modify its composition to make sure it reflects current market conditions.

30 companies that make up the Sensex : 

30 companies that make up the Sensex ACC (Cement - Major) Bharti Airtel (Telecommunications - Service) BHEL (Engineering - Heavy) DLF (Construction & Contracting - Real Estate) Grasim (Diversified) HDFC Bank (Banks - Private Sector) HDFC (Finance - Housing) Hindalco (Aluminium) HUL (Personal Care) ICICI Bank (Banks - Private Sector) Infosys (Computers - Software) ITC (Cigarettes) Jaiprakash Associates (Construction & Contracting - Civil) Larsen & Toubro (Diversified) Mahindra and Mahindra (Auto - Cars & Jeeps) Maruti Suzuki (Auto - Cars & Jeeps) NTPC (Power - Generation/Distribution) ONGC (Oil Drilling And Exploration) Ranbaxy Labs (Pharmaceuticals) Reliance Communications (Telecommunications - Service) Reliance Industries Limited (Diversified) Reliance Infrastructure (Power - Generation/Distribution) State Bank of India (Banks - Public Sector) Sterlite Industries (Metals - Non Ferrous) Sun Pharma (Pharmaceuticals) Tata Motors (Auto - LCVs/HCVs) Tata Power (Power - Generation/Distribution) Tata Steel (Steel - Large) TCS (Computers - Software) Wipro (Computers - Software)

Sensex Calculation : 

Sensex Calculation a) Find out the “free-float market cap” of all the 30 companies that make up the Sensex! b) Add all the “free-float market cap’s” of all the 30 companies! c) Make all this relative to the Sensex base. The value you get is the Sensex value!

To explain this further: : 

To explain this further: Suppose that the Sensex was made up of two companies, A and B. Company A, had 100 (free-float) shares in the market in 1979 and the price of Rs. 10. Market cap = Rs. 1000 Company B, had 200 (free-float) shares in the market in 1979 and the price of Rs. 15. Market cap = Rs. 3000 So the Sensex had a total market cap of Rs. 4000 in 1979 and this is taken as index value = 100 Today company A has 1000 (free-float) shares and the current price is Rs. 150, while company B has 5000 (free-float) shares at Rs. 120. Hence market cap = Rs. 150,000 + Rs. 600,000 = Rs. 750,000. So the equation is: Market Cap of 4000 = Sensex value 100Then, Market cap of 750,000 = ?Ans: today's Sensex value will be 18750.

Day Session : 

Day Session Beginning of the Day Session (8:00-9:00) Trading Session (9:00- 15:30) Position Transfer Session(15:40-16:00) Closing Session (16:00-16:15) Margin Session (16:35-16:50) Query Session (16:50-17:30) End of Day Session 17:30

राष्ट्रीय शेअर बाज़ार : 

राष्ट्रीय शेअर बाज़ार The National Stock Exchange (NSE) is a stock exchange located at Mumbai, India. It is the largest stock exchange in India in terms of daily turnover and number of trades………..

NSE : 

NSE Type Stock Exchange Location Mumbai, India Founded 1992 Owner National Stock Exchange of India Limited Key people Mr.Ravi Narain (MD) Currency Indian rupee Indexes S&P CNX Nifty CNX Nifty Junior S&P CNX 500 www.nse-india.com

major segments : 

major segments NSE has the following major segments of the capital market: Equity Futures and Options Retail Debt Market Wholesale Debt Market Currency futures MUTUAL FUND STOCKS LENDING & BORROWING

Eligibility Criteria for Listing : 

Eligibility Criteria for Listing The paid up equity capital of the applicant shall not be less than Rs. 10 crores * and the capitalization of the applicant’s equity shall not be less than Rs. 25 crores** Atleast three years track record The networth of the company has not been wiped out by the accumulated losses resulting in a negative networth The company has not received any winding up petition admitted by a court.

Eligibility Criteria for Listing : 

Eligibility Criteria for Listing No disciplinary action by other stock exchanges and regulatory authorities in past three years

NSE BSE : 

NSE BSE The Sensex is an indicator of all the major companies of the BSE. The Nifty is an indicator of all the major companies of the NSE.

Regional Stock Exchanges in India (rse) : 

Regional Stock Exchanges in India (rse) The Regional Stock Exchanges started clustering from the year 1894, when the first RSE, the Ahmedabad Stock Exchange (ASE) was established. In the year 1908, the second in the series, Calcutta Stock Exchange (CSE) came into existence. One aspect of the Indian capital market is the existence of as many as 21 regional stock exchanges – the highest in the world. RSEs existed in developed markets also but ultimately, they had to shut down or merge with the principal exchanges.

List of Regional Stock Exchanges in India : 

List of Regional Stock Exchanges in India » Ahmedabad» Bangalore» Bhubaneshwar» Calcutta» Cochin» Coimbatore» Delhi» Guwahati» Hyderabad» Jaipur» Ludhiana» Madhya Pradesh» Madras» Magadh» Mangalore» Meerut» OTC Exchange Of India» Pune» Saurashtra Kutch» UttarPradesh» Vadodara

Shares by Group : 

Shares by Group Group A: Shares in this category have a high Liquidity, Market Capitalization and Capital Appreciation.

Slide 31: 

Group B1 and B2: Similar to A, but with a slightly lower Market Capitalization and Appreciation but good liquidity. There are financially healthy stocks. Group C: It includes the odd lots of Categories of A, B1 and B2. Shares/Stocks are sold in Lots, any ODD lot remaining among the A, B1,B2 Groups ,are put under C Category.

Slide 32: 

Group F:It is a Debt Market Segment Group T: Their settlement needs to be done by DELIVERY only. Trading under "T", means , actual delivery of Scripps is warranted.

Slide 33: 

Group Z: Suspended Lots of Shares. They are Suspended due to non-compliance of SEBI Norms.

Demat account : 

Demat account Two-step process: You approach a DP and fill up the Demat account-opening booklet. The Web sites of the NSDL list the approved DP(DEPOSITORY PARTICIPANT). You will then receive an account number and a DP ID number for the account. demat account is a must for trading and investing

initial public offering (IPO), : 

initial public offering (IPO), An initial public offering (IPO), referred simply as an "offering" or "flotation", is when a company (called the issuer) issues common stock or shares to the public for the first time. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded.

BID : 

BID Bid Plays a Important Role in Share market while Purchasing & Selling Its applicable in Secondary market Any person can Bid on any share to buy that on particular amount & to sell on that particular amount

STT : 

STT STT is securities and transaction tax; its a tax one has to pay for buying and selling shares (stocks) on stock market

F&O(FUTURE & OPTIONS) : 

F&O(FUTURE & OPTIONS) Futures contract means a legally binding agreement to buy or sell the underlying security on a future date ,contract expires on a pre-specified date… Cash settlement entails paying/receiving the difference between the price at which the contract was entered

Cont……….. : 

Cont……….. Option contract is a type of derivatives contract which gives the buyer/holder of the contract the right (but not the obligation) to buy/sell the underlying asset at a predetermined price within or at end of a specified period

Call & Put : 

Call & Put Puts and calls are terms used when buying or selling optionsBuying an option is known as a call and allows you to simulate a long position on a stock, similarly a put enables you to simulate shorting a stockA call option Is a contract that allows the buyer to buy a stock at specified price at any given time during the time span of the optionA put option Is a contract that allows the buyer to sell a stock at specified price at any given time during the time span of the option

Blue-chip companies : 

Blue-chip companies Blue chip stock is the stock of a well-established company having stable earnings and no extensive liabilities. Blue chip stocks pay regular dividends. A company regarded as solid and well established and consequently a safe investment…….

Who Observe Share Market? : 

Who Observe Share Market? The Securities and Exchange Board of India (frequently abbreviated SEBI) is the regulator for the securities market in India. It was formed officially by the Government of India in 1992 with SEBI Act 1992 being passed by the Indian Parliament. Chaired by C B Bhave, SEBI is headquartered in the popular business district of Bandra-Kurla complex in Mumbai, and has Northern, Eastern, Southern and Western regional offices in New Delhi, Kolkata, Chennai and Ahmedabad.

Securities and Exchange Board of India (SEBI) : 

Securities and Exchange Board of India (SEBI) SEBI Bhavan, Mumbai headquarters Agency overview Formed April 12, 1992 Jurisdiction Government of India Headquarters Mumbai, Maharashtra Agency executive C B Bhave, Chairman Website www.sebi.gov.in

Role and Functions of SEBI : 

Role and Functions of SEBI Provides a physical location for buying and selling securities that have been listed for trading on that exchange Establishes rules for fair trading practices and regulates the trading activities of its members according to those rules The exchange itself does not buy or sell the securities, nor does it set prices for them

Role and Functions of SEBI : 

Role and Functions of SEBI Any company making a public issue or a listed company making a rights issue of value of more than Rs 50 lakh is required to file a draft offer document with SEBI for its observations. The company can proceed further on the issue only after getting observations from SEBI. The validity period of SEBI's observation letter is three months only i.e. the company has to open its issue within three months period. It conducts investigation and enforcement action in its executive function

Why Stock market is so Volatile? : 

Why Stock market is so Volatile? Acceptance of Globalization ,Internationalization Introduce of new Hybrid Financial instruments Human Element(broker activity) Political Factor Climatic factor Demand supply/growth Factor Market news Technological changes

How to make money in Stock Market? : 

How to make money in Stock Market? Patience, Knowledge Best Guess Diversification of Risk Portfolio Management Clear Define Entry and Exit Point Sector watch Company Knowledge

Drawbacks of Indian stock market : 

Drawbacks of Indian stock market Unethical Big greed Speculation Lack of protection of intrest to small investors Trading is typical Structure imbalance Long Procedure

Visit Some Web Site : 

Visit Some Web Site www.sebi.gov.in www.companylaw.com www.indiabondwatch.com www.money.cnn.com www.investopedia.com www.nseindia.com www.bseindia.com www.vickypedia.com www.parasramindia.com www.sharekhan.com www.Rediffmoney.com

Slide 50: 

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