share market and SEBI - Dev Saighal

Stock Market and Security and Exchange Board of India (SEBI) : 

Stock Market and Security and Exchange Board of India (SEBI) Dev Saighal Created By--

Introduction : 

Introduction It was in 1875 that the Indian Share Market first started functioning. The first share trading association in India was known as the Native Share and Stock Broker's Association, only to become the Bombay Stock Exchange (BSE) later on in 1894. Main components of India Share Market – Bombay Stock Exchange (BSE) National Stock Exchange (NSE)

Importance of stock Market : 

Importance of stock Market The exchange makes buying and selling easy. With an exchange in place, you can buy and sell shares instantly. It allows the price of a stock to be known every second of the day. The price of a stock also reflects the dividend that the stock pays.

The products that are traded in the stock market are: : 

The products that are traded in the stock market are: Equity or Share Futures (both index and stock) Options (Call and Put) Wholesale Debt Market Retail Debt Market

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Share Market Investors

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Poorly invested so he does not survive market condition

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Poorly invested so he does not survive market condition

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3rd investor invested smartly and after a lot of market research so market condition did not affect him much.

Importance of Stock Market Research : 

Importance of Stock Market Research Needed to make good decisions. To gain understanding . Results in profitability. Reduces chances of losses.

Why to invest in share market ? : 

Why to invest in share market ? An investor does not require a lot of money to start investing in India share market unlike buying property . Time of trading involved spans from small to big. One can trade for a short period of time or even a lengthy span. It helps you to see 'fast' cash if the market is in robust mood and helps in fast liquidation.

Bulls and Bears… : 

Bulls and Bears… BULL Market – Economy is great – GDP is high – Stocks are rising. An optimistic person is called a “BULL” and is said to have a bullish outlook. BEAR Market – Economy is declining – GDP is low – Stocks are falling. A pessimist is know as a “BEAR” and is said to have a bearish outlook.

Bombay Stock Exchange(BSE) : 

Bombay Stock Exchange(BSE) BSE is known as the oldest exchange in Asia. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. The Bombay Stock Exchange developed the BSE Sensex in 1986, In 2000 the BSE used this index to open its derivatives market,

National Stock Exchange (NSE) : 

National Stock Exchange (NSE) The NSE, located in Bombay, is India's first debt market. It was set up in 1993 to encourage stock exchange reform . It opened for trading in mid-1994. It was recently accorded recognition as a stock exchange by the Department of Company Affairs. The instruments traded are: treasury bills government security and bonds issued by public sector companies.

Advantages of Stock Market : 

Advantages of Stock Market Creating a market for the listed company's shares Increasing public awareness and public interest in the company and its products Accessing to additional fund raising in the future by means of new issues of shares or other securities Facilitating acquisition opportunities by use of the company's shares One stop shop for shares of various companies. Helps in comparison while buying.

Disadvantages of Stock Market : 

Disadvantages of Stock Market Do not to maintain dividend and profit growth trends Need to observe and adhere strictly to the rules and regulations by governing bodies Increasing costs in complying with higher level of reporting requirements Relinquishing some control of the company following the public offering. Control by few people resulting in Market Scams. Control over stock prices by dominating companies.

Introduction of SEBI : 

Introduction of SEBI The Securities and Exchange Board of India was established on April 12, 1992. It was established in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.

PREAMBLE : 

PREAMBLE The Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as “…..to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto.”

Objectives of SEBI : 

Objectives of SEBI To protect the interests of investors in securities; To promote the development of Securities Market; To regulate the securities market. It makes rules and regulations for the market.

Functions of SEBI : 

Functions of SEBI Checks Trading of Securities. Regulates Capital Market. Regulates brokers and sub brokers. Resolves investor’s queries through a feedback department. Resolve any issues in the stock market. To promote any Speculative activities. Checks the malpractices in the market .

THANK YOU  : 

THANK YOU 