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    CH - 10 Financial Market

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    Anuj Changoiwala

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    CH - 10 Financial Market

    Uploaded by

    Anuj Changoiwala
    8 views3 pages

    Original Title

    Ch -10 Financial Market

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    8 views3 pages

    CH - 10 Financial Market

    Uploaded by

    Anuj Changoiwala

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Chapter -10

    FINANCIAL MARKET
    FUNCTION OF FINANCIAL MARKET : [FM in PC]
    1- Mobilisation of Saving and Channelising Them into the Most
    Productive use
    2- Facilitates Price Discovery
    3- Provides Liquidity to Financial Assets
    4- Reduces the Cost of Transactions

    CLASSIFICATION OF FINANCIAL MARKET :


    1. MONEY MARKET [SIP of LED]
    1- Investment Outlay 2- Participants
    3- Duration 4- Liquidity
    5- Safety 6- Expected Return
    MONEY MARKET INSTRUMENTS : [4CT] CT – Cylic Test
    1- Treasury Bill (T.Bill) 2- Commercial Paper
    3- Call Money 4- Certificate of Deposit
    5- Commercial Bills
    2) CAPITAL MARKET :

    FEATURES OF CAPITAL MARKET [SIP of LED]


    1- Investment Outlay 2- Participants
    3- Duration 4- Liquidity
    5- Safety 6- Expected Return
    COMPONENTS OF CAPITAL MARKET [PS]
    1) PRIMARY MARKET 2) SECONDARY MARKET

    PRIMARY MARKET [RPS of PE]

    METHODS OF FLOATATION
    1- Offer Through Prospectus
    2- Offer for Sale
    3- Private Placement
    4- Right Issue
    5- E-IPOs
    SECONDARY MARKET
    THREE - TIER FORMS OF SECONDARY MARKET – [NCR]
    1- Regional Stock Exchange
    2- National Stock Exchange
    3- Over the Counter Exchange of India
    STOCK EXCHANGE CSSPPP – [CSS does PPP]
    FUNCTIONS OF STOCK EXCHANGE :
    1- Providing Liquidity and Marketability to Existing Securities
    2- Pricing of Securities
    3- Safety of Transaction
    4- Contribute to Economic Growth
    5- Spreading to Equity Cult
    6- Providing Scope for Speculation
    TRADING PROCEDURE ON A STOCK EXCHANGE : [SSD DIED On PC]

    1- Selection of Broker
    2- Opening Demat Account
    3- Placing the Order
    4- Connecting to Main Stock Exchange
    5- Execution of Order
    6- Issuance of Contract Note
    7- Delivery of Shares or Payment of Cash by Investor
    8- Settlement of Deal - Before T+2
    9- Delivery of Securities or payment of cash by Stock Exchange
    10- Delivery of Securities in Demat Form
    ADVANTAGE OF ELECTRONIC TRADING SYSTEMS : [STEEL]
    1- Ensures Transparancy
    2- Increases Efficiency of Information
    3- Increases the Efficiency of Operations
    4- Improves the Liquidity of the Stock Market
    5- Provides a Single Trading Platform

    SECURITIES & EXCHANGE BOARD OF INDIA


    OBJECTIVES OF SEBI – [Red DPP]
    1- To Regulate Stock Exchanges
    2- To Protect Guide and Educate Investors
    3- To Prevent Trading Malpractices
    4- To Regulate and Develop a Code of Conduct for Intermediaries

    FUNCTIONS OF SEBI –
    REGULATORY FUNCTION : [LPP of RR]
    a) Notification of Rules and Regulations
    b) Registration of Brokers and Agents
    c) Inspection and Enquiries
    d) Prohibits Unfair Trade Practices
    e) Regulator of Investment Schemes
    f) As a Watch Dog
    g) Levying of Fees
    h) Performing and Exercising Powers

    DEVELOPMENT FUNCTION : [TRP]


    a) Training to Intermediaries
    b) Promotion of Fair Trade
    c) Research
    PROTECTIVE FUNCTION : [4P’s]
    a) Prohibits Fraudulent and Unfair Trade Practices
    b) Prevents Insider Trading
    c) Protects Investors
    d) Promotes Fair Practices

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