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PRIMARYMARKET

SECONDARYMARKET

AND

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INTRODUCTIONThe market for industrial securities is known as securities market.

It offers an ideal market for corporate securities such as shares and debentures.

Industrial securities market is relatively much smaller in India than that in other

industrialized countries.

Industrial securities market in India can hardly be regarded as a barometer of

economic activity.

PRIMARY

MARKET

SECONDARY

MARKET

INDUSTRIALSECURITIES

MARKET

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PRIMARY MARKETA market for raising fresh capital in the

form of shares and debentures.

The public limited and government

companies are the issuers and

individuals, institutions and mutual

funds are the investors.

It allows for the formation of capital in

the country and the accelerated

industrial and economic development.

The primary market got a tremendous

boost consequently upon the

liberalisation policy and the subsequent

abolition of capital issues control.

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SECONDARY MARKET

IT IS A BASE UPON WHICH PRIMARY MARKET

DEPENDS.

THE ACTIVITIES OF BUYING OR SELLING OF

SECURITIES ARE CARRIED OUT THROUGH

MECHANISM OF STOCK EXCHANGES.

THERE ARE 24 STOCK EXCHANGES IN INDIA

RECOGNISED BY GOVERNMENT.

THREE IMPORTANT STOCK EXCHANGES IN

BOMBAY: BSE, NSE, OVER THE COUNTER

EXCHANGE.

A MARKET WHICH DEALS IN SECURITIES THAT HAVE BEEN ALREADY ISSUED BY THE

COMBANIES IS CALLED SECONDARY MARKET.

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TRADINGSECONDARY MARKET OPERATION

THE ACT OF BUYING OR SELLING OF SECURITIES ON A STOCK EXCHANGE IS KNOWN AS STOCK

EXCHANGE TRADING.

TWO CATEGORIES OF DEALERS: JOBBERS AND BROKERS

JOBBER GIVES TWO QUOTATION AS A DEALER

DIFFERENCE BETWEEN TWO QUOTATION IS JOBBERS

REMUNERATION

BROKER IS AN AGENT TO BUY OR SELL ON BEHALF OF HIS

CLIENTS

BROKER GETS COMMISSION FROM HIS CLIENTS FIXED BY

THE STOCK EXCHANGE

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TYPES OF ORDERSAn order in a market such as a stock market, bond market, commodity market, or financial

derivative market is an instruction from customers to brokers to buy or sell on the exchange.

MARKET ORDER

LIMIT ORDER

STOP OR STOP LOSS ORDER

STOP LIMIT ORDER

DAY ORDER

GOOD-TILL-CANCELLED ORDER

ALL-OR-NONE ORDER

FILL-OR-KILL ORDER

IMMEDIATE-OR-CANCEL ORDER

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TRADING PROCEDURETrading is done on T+2 basis

Demat account by investors

Steps involved in trading of securities:-Order placing

Limit order

Best rate order

Open order

Order execution

Contract note

Clearing

Settlement

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DMAT TRADINGBuying and selling electronic shares is just like buying and selling physical shares.

The steps in the procedure are:-

Placing order

Issue receipt intimation

Payment

Transfer of shares

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The following stock exchanges are linked to the depository:-

Calcutta stock exchange

Ludhiana stock exchange

Over the courier exchange of

India(OTCEI)

Present position of depository:- setting of depository is a major

development in a major development in Indian capital market.

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ROLLING SETTLEMENT

Rolling settlement is a mechanism of settling tradesdone on stock exchange

Presently trading done on the major stock exchanges

i.e. BSE and NSE is done on T+2 basis

That is done as follows:

TradingClearing

Settlement

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ONLINE TRADINGOnline Trading in shares and securities in the India has

been made possible due to the introduction of d-mat

account

The major players in this sector are:

ICICI BankHDFC Securities

Axis Direct

SHCI

BOLT mechanism on BSE is the online trading portal by

the Bombay stock exchange

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THANK YOU

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PRESENTED BY:

NAME ROLL. NO

SHEETAL CHAUHAN 46

PURVI SHAH 43

RENUKA SHANKAR 41

BHAVIKA INDALKAR 17

MADHUMITA HARSHE 16

DIVYA BOTHRA 04