SECONDARY

MARKET

WHAT IS STOCK MARKET

A stock market or equity market is a public

market for the trading of company stock and

derivatives at an agreed price; these are

securities listed on a stock exchange as well as

those only traded privately.

REQUIREMENTS FOR LISTING

1) Memorandum and Articles of Association

2) Minimum Public Offer

3) Prospectus

4) Allotment of Shares

5) Further Issue and Rights Issue

6) Listing Fees & Application

7) Listing Agreement

WHAT IS A STOCK EXCHANGE ?

A stock exchange, share market or

bourse is a corporation or mutual

organization which provides facilities for

stock brokers and traders, to trade

company stocks and other securities

STOCK EXCHANGES IN INDIA

23 STOCK EXCHANGES

BSE

NSE

MCX

BOMBAY STOCK EXCHANGE

Established in 1875

Oldest stock exchange in Asia

It became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act.1956.

Flagship index of BSE is BSE SENSEX which is an index of 30 companies (19294.12)

NATIONAL STOCK EXCHANGE

Established in 1992

It is the largest stock exchange in India

Its key index is the S & P Nifty, known as the Nifty, an index of fifty major stocks weighted by market capitalization. (5816.70)

MCX MCX Stock Exchange Limited (MCX-SX), India’s new stock

exchange, is recognized by Securities and Exchange Board of India under Section 4 of Securities Contracts (Regulation) Act, 1956. The Exchange was notified as a “recognized stock exchange” by Ministry of Corporate Affairs, Govt. of India on December 21, 2012.

MCX-SX launched Capital Market Segment, Futures and Options Segment and flagship index ‘SX40’ on February 9, 2013 and commenced trading from February 11, 2013.

“SX40”, is a free-float based index consisting of 40 large-cap, liquid stocks representing diverse sectors of the economy. Its base value is 10,000 with the base date of March 31, 2010. (11533.78)

MAJOR STOCK EXCHANGES ECONOMY STOCK

EXCHANGE

INDEX

US & EUROPE NYSE DJIA 30

US NASDAQ NASDAQ 100

JAPAN TOKYO STOCK

EXCHANGE

NIKKEI 225

UNITED

KINGDOM

LONDON STOCK

EXCHANGE

FTSE 100

CHINA SHANGHAI STOCK

EXCHANGE

SSE COMPOSITE

HONG KONG HONGKONG STOCK

EXCHANGE

HANGSENG

BRAZIL BM&F BOVESPA BOVESPA 50

ECONOM

Y

STOCK

EXCHANGE

INDEX

GERMANY DEUTSCHE BORSE DAX 30

SWITZERLA

ND

SIX SWISS

EXCHANGE

SMI

FRANCE FRENCH STOCK

EXCHANGE

CAC 40

INDIA BOMBAY STOCK

EXCHANGE

SENSEX 30

SOUTH

KOREA

KOREA EXCHANGE KOSPI

INDIA NATIONAL STOCK

EXCHNGE

NIFTY

Trading Mechanism

In this system a member can punch

into the computer quantities of

securities and prices at which he

likes to transact.

The transaction is executed as soon

as it finds a matching sale or buy

order from a counter party.

Trading Mechanism

A single consolidated order book for

each stock displays, on a real time

basis, buy and sell orders originating

from all over the country.

The book stores only limit orders,

which are orders to buy or sell shares at

a stated quantity and stated price.

The limit orders are executed only if

the price quantity conditions match.

Brokerage

A fee charged by a broker for facilitating

the purchase or sale of any security.

GTC Order

A Good Till Cancelled (GTC) order

remains in the system until the trading

member cancels it.

GTD Order

A Good Till Day (GTD) order remains in

the system till the end of the trading day.

At close all unexecuted orders will be

cancelled and a fresh order will need to be

placed to execute the unexecuted orders the

next day.

Limit Orders

Investors may also place limit

orders, whereby they specify prices

at which they are willing to buy or

sell a security.

Market Order

Market Order is an order to buy or sell

securities at the best price obtainable in the

market at the time it is matched by the

exchange. Therefore, chances of its getting

executed are better

Stop Loss Order

A Stop Loss is an order to buy (or sell) a

security once the price of the security

climbs above or drops below a specified

price. It is an order to buy a security at no

more or sell at no less than a specified

price limit.

Market Timings

Trading on the equities segment takesplace on all days of the week (exceptSaturdays and Sundays and holidaysdeclared by the Exchange in advance).The market timings of the equitiessegment are:

Normal Market Open : 09:515 hoursNormal Market Close : 15:30 hours

Clearing and settlement Process

Trade details from Exchange to Clearing

corporation

Clearing Corporation notifies the consummated

trade details to custodians who affirm back.

Based on the affirmation, clearing house

determines obligations.

Download of obligation and pay-in advice of

funds/ securities.

Instructions to clearing banks to make funds

available by pay-in- time.

Instructions to depositories to make securities

available by pay-in- time.

Settlement Cycle

Rolling Settlement

At NSE and BSE, trades in rollingsettlement are settled on a T+2 basis i.e.on the 2nd working day.

For arriving at the settlement day allintervening holidays, which includebank holidays, NSE holidays, Saturdaysand Sundays are excluded.

Typically trades taking place onMonday are settled on Wednesday,Tuesday's trades settled on Thursdayand so on.

Duration of trading halt (in minutes)

%

movement

in either

indices in

either

direction

Before 1

p.m.

1 p.m. to 2

p.m.

2 p.m. to

2.30 p.m.

After 2.30

p.m.

10 60 30 30 No halt

15 120 60 Trading halt

for the

remainder

of the day

Trading halt

for the

remainder

of the day

20 Trading

halt for the

remainder

of the day

Trading halt

for the

remainder

of the day

Trading halt

for the

remainder

of the day

Trading halt

for the

remainder

of the day