Stock Market
Stock Market
Stock Market
In India
Meaning
Stock exchange is a place where buyers and sellers are come together for undertaking transactions involving sale of securities.
In India overview
There are 23 stock exchanges in the India. Mumbai's (earlier known as Bombay), Bombay Stock Exchange is the largest, with over 6,000 stocks listed. The BSE accounts for over two thirds of the total trading volume in the country. Established in 1875, the exchange is also the oldest in Asia. Among the twentytwo Stock Exchanges recognized by the Government of India under the Securities Contracts (Regulation) Act, 1956, it was the first one to be recognized and it is the only one that had the privilege of getting permanent recognition ab-initio.
11.Cochin stock exchange 12.coimbatore stock exchange 13.Gauhati stock exchange 14.Hydrabad stock exchange 15.Madhya Pradesh stock exchange(indore) 16.Jaipur stock exchange 17.Ludhina stock exchange 18.Mangalore stock exchange 19.Pune stock exchange 20.saurashtrakutch stock exchange
Guidelines of listing
Checklist Listing means admission of securities to dealings on a recognised stock exchange. The securities may be of any public limited company, Central or State Government, quasi governmental and other financial institutions/corporations, municipalities, etc. The objectives of listing are mainly to : provide liquidity to securities; mobilize savings for economic development; protect interest of investors by ensuring full disclosures. BSE has set various guidelines and forms that need to be adhered to and submitted by the companies. These guidelines will help companies to expedite the fulfillment of the various formalities and disclosure requirements that are required at various stages of Public Issues
Initial Public Offering Further Public Offering
REQUIREMENTS
Some of the requirements are as under :
Minimum Listing Requirements for New Companies Minimum Requirements for Companies Delisted by BSE seeking relisting on BSE Permission to Use the Name of BSE in an Issuer Company's Prospectus Submission of Letter of Application Allotment of Securities Trading Permission Requirement of 1% Security Payment of Listing Fees Compliance with the Listing Agreement Cash Management Services (CMS) - Collection of Listing Fees
Hours of operation
Session Beginning of the Day Session pre-open trading session Trading Session Position Transfer Session Closing Session Option Exercise Session Margin Session Query Session Timing 8:00 - 9:00 9:00 - 9:15 9:15 - 15:30 15:30 - 15:50 15:50 - 16:05 16:05 - 16:35 16:35 - 16:50 16:50 - 17:35
17:30
Working
Trading System: The NSE has an automated screen based trading systems, which allow orders to be placed at a pre-determined or best price. The automated screen based trading system for the NSE it is known as the National Exchange for Automated Trading (NEAT) system. The online trading systems follow the principles of an order driven market which facilitates efficient input of orders and automatic matching, resulting in faster execution of orders in a transparent manner. The member-brokers enter orders for purchase or sale of securities from work stations connected to the exchange trading systems. Order matching is anonymous (i.e. the orders are matched by the exchange system) and the identity of the counter-party is not revealed.
Order Matching The trading system sorts pending orders in pricetime priority for order matching purposes by matching the best buy order and best sell order. Best buy order is the one with the highest price and the best sell order is the one with the lowest price (the system sorts buy orders from the seller point of view and vice versa). Orders may match with more than one order resulting in multiple trades for an order. Member broker can place market orders (which will be matched with the best available order) or limit orders (wherein member can specify the price for the order) which will remain a part of order books until matching.
Orders are assigned a unique order number by the trading system (for a member broker, security and transaction type) and time-stamped on entry by the member broker by the trading system. The orders are processed for potential match. Pending orders are stored in different books based on price-time priority in the following sequence: Best Price
Time Priority of two orders having the same price, the order entered earliest gets the higher priority for trade matching.
Additionally, member brokers can place conditions at the time of order entry. These conditions are as under: Time Conditions: These conditions, as the name suggests, can be classified as Day orders, Good till Canceled, Good till Date order and Immediate or Cancel order. Price conditions: This permits members to specify conditions to execute the trade at specified price or best price. Members can also place stop loss orders. Quantity conditions: The member can disclose a part of the order quantity to the market. For example, an order for quantity 1000 at a limit price can specify a disclosed condition of quantity 200. This will ensure that only 200 quantity at a point of time is displayed to the market. Once this quantity is traded, another quantity 200 is automatically released and so on till the full order is executed. The Exchange may set a minimum disclosed quantity criteria from time to time.
Minimum FII: these orders allow the trading member to specify the minimum quantity by which an order should be filled. All or none orders: all or none orders allow a trading member to impose the condition that only full order should be matched against.
Those debt securities are mainly negotiated bilaterally and subsequently reported to the stock exchanges.
4. Who is a broker?
A stockbroker is person who is licensed to trade in shares. Brokers also have direct access to the share market and can act as your agent in share transactions. For this service they charge a fee. They can also offer additional services like advice on shares, debentures, government bonds and listed property trusts and non-listed investment options (cash management trusts, property and equity trusts.
To cope with volatility, it is important to have a disciplined and systematic approach to equity investment. Set your own rules and more importantly, follow them religiously. Indeed, the mantra for successful equity investment is a well thought-out, disciplined investment strategy. A long-term monetary commitment, adherence to discipline in investment and decisions based on company fundamentals are essential ingredients for successful equity investment.
The Portfolio Manager comes along with some useful tools to gain useful insight of volatile markets. These tools help you to track the trends of your current investments as well as some stocks that have caught your eye.