Equity Detail

8/4/2019 Equity Detail

1/5

WHAT IS DEMAT & DEMAT A/C.

DEMAT is an abreivation for Dematerialised.This is a term used in share trading. Earlier, around till 4 years

back people used to have shares in physical form.(certificates)But now, these are held in electronic

form(DEMAT) as per the regulations of SEBI ( Securities Exchange Board of India).The depository regulators

like ICICI, Kotak,Indiabulls, etc maintain a/c s of individuals and with the help of their respective softwares,

and a login id and password, individuals can easily trade on BSE and NSE online(electronically). The a/c these

organisations provide is called DEMAT a/c.

What is DP.

A broker is separate from a DP. A broker is a member of the stock exchange, who buys

and sells shares on his behalf and on behalf of his clients.

A DP will just give you an account to hold those shares.

What's the difference between a depository and a depository participant?

A depository is a place where the stocks of investors are held in electronic form.

The depository has agents who are called depository participants (DPs).

Think of it like a bank. The head office where all the technology rests and details of all

accounts held is like the depository. And the DPs are the branches that cater to

individuals.

There are only two depositories in India -- the National Securities Depository Ltd (NSDL)

and the Central Depository Services Ltd (CDSL). There are over a 100 DPs.

WHAT IS SEBI

In 1988 the Securities and Exchange Board of India (SEBI) was established by the Government of India through an

executive resolution, and was subsequently upgraded as a fully autonomous body (a statutory Board) in the year

1992 with the passing of the Securities and Exchange Board of India Act (SEBI Act) on 30th January 1992. In place

of Government Control, a statutory and autonomous regulatory board with defined responsibilities, to cover both

development & regulation of the market, and independent powers have been set up. Paradoxically this is a positive

outcome of the Securities Scam of 1990-91.

The basic objectives of the Board were identified as:


2/5

to protect the interests of investors in securities;

to promote the development of Securities Market;

to regulate the securities market and

for matters connected therewith or incidental thereto.

When mcx & nxdex established

Multi Commodity Exchange (MCX): is an independent commodity exchange based in India. It

was established in 2003 and is based in Mumbai. It has an average daily turnover of aroundUS$1.55 billion.

National Commodity & Derivatives Exchange Limited (NCDEX): is an online commodityexchange based in India. It was incorporated as a private limited company incorporated on April23, 2003 under the Companies Act, 1956. It obtained its Certificate for Commencement ofBusiness on May 9, 2003. It has commenced its operations on December 15, 2003. NCDEX is aclosely held private company which is promoted by national level institutions and has anindependent Board of Directors and professionals not having vested interest in commoditymarkets.


3/5

About Equity market , (NSE BSE)

Stock market is something which you cannot predict what is going to happen in the

market tomorrow without proper analyzes of market. So, it is always preferable to go forsome professional help if you wish to invest in the Indian stock market. You should alsobe acquainted with the concept of NSE and BSE. Here we will discuss the differencebetween NSE and BSE.

What Is NSE?

National Stock Exchange of India or in short NSE happens to be Indias largest StockExchange and Worlds third largest stock exchange in terms of transactions. It is locatedin Mumbai and was incorporated in November 1992 as a tax-paying company. It was inApril 1993 that NSE was recognized as stock exchange under the Securities ContractAct 1956.

Objectives

The main objective behind NSE is to establish trading facility nationwide for all types ofsecurities. It also ensures equal access to all investors in the country through theprocess of an appropriate telecommunication network. NSE was able to achieve itsobjectives within a very short span of time. NSE has national reach to major marketsegments like equity or capital markets, futures and options or derivatives market,wholesale debt market, mutual funds, initial public offerings and so on. There is also aconcept of day trading which suits well for short term investments. But there areinvestors who think that this type of trading is quite risky.

About BSE

BSE or Bombay Stock Exchange is the oldest stock exchange in Asia that wasestablished in 1875. Whats more, it is also the biggest stock exchange in the world.BSE is located at Dalal Street, Mumbai.


4/5

Bombay Stock Exchange and National Stock Exchange are both major stock exchangein India. But there is a difference between NSE and BSE. Investors put their money inthe stock market in order to reap huge benefits from their investment. But nobody canpredict the market as we have already discussed. Also any stock market is decided byits countrys growth. But you should be aware that it requires a lot of patience. The

market tumbles down and this is the reason why investors fear of investing their money

Read more:What is full form of sensex,and difference between bse and nse |Answerbaghttp://www.answerbag.com/q_view/298993#ixzz1UineqMGb

Meaning and Concept of Capital Market

Capital Market is one of the significant aspect of every financial market. Hence it is necessary to study its correct

meaning. Broadly speaking the capital market is a market for financial assets which have a long or indefinite maturity.

Unlikemoney market instrumentsthe capital market intruments become mature for the period above one year. It is

an institutional arrangement to borrow and lend money for a longer period of time. It consists of financial institutions

like IDBI, ICICI, UTI, LIC, etc. These institutions play the role of lenders in the capital market. Business units and

corporate are the borrowers in the capital market. Capital market involves various instruments which can be used for

financial transactions. Capital market provides long term debt and equity finance for the government and the

corporate sector. Capital market can be classified into primary and secondary markets. The primary market is a

market for new shares, where as in the secondary market the existing securities are traded. Capital market

institutions provide rupee loans, foreign exchange loans, consultancy services and underwriting

Commodity

A standardized contract set by a particular futures exchange that includes the size (1000 barrels,5000 bushels, 5000 ounces, etc.), the place where delivery can be made, the type and quality ofthe commodity to be delivered, and the price of the transaction.

The futures contract is negotiated on a regulated futures exchange, which is a central marketplace where all buy and sell orders are routed to a single location on the exchange.

A transaction in the commodity futures market is made on the trading floor (or in the trading computers) ofthe exchange between brokers who are members of the exchange that particular commodity is trading

on. The seller will have a broker, and buyer will have a broker. They will then transact an order for apurchase and sale.

The buyers and sellers of commodity futures contracts have obligations. The buyer is obligated to takedelivery and pay for the cash commodity during a specific time frame. The seller is obligated to deliver thecommodity, for which he will be paid the price that was decided in the exchange pit by the brokers.(Sometimes the price can be more or less depending on the grade (quality) of the specific material.) Thebuyer and seller can eliminate their obligation by offsetting their trade at the exchange before the contractcomes due. This is what most speculators do in the commodity markets.
http://www.answerbag.com/q_view/298993#ixzz1UineqMGbhttp://www.answerbag.com/q_view/298993#ixzz1UineqMGbhttp://www.answerbag.com/q_view/298993#ixzz1UineqMGbhttp://www.answerbag.com/q_view/298993#ixzz1UineqMGbhttp://www.answerbag.com/q_view/298993#ixzz1UineqMGbhttp://www.answerbag.com/q_view/298993#ixzz1UineqMGbhttp://kalyan-city.blogspot.com/2010/09/instruments-of-monetary-policy.htmlhttp://kalyan-city.blogspot.com/2010/09/instruments-of-monetary-policy.htmlhttp://kalyan-city.blogspot.com/2010/09/instruments-of-monetary-policy.htmlhttp://kalyan-city.blogspot.com/2010/09/instruments-of-monetary-policy.htmlhttp://www.answerbag.com/q_view/298993#ixzz1UineqMGbhttp://www.answerbag.com/q_view/298993#ixzz1UineqMGbhttp://www.answerbag.com/q_view/298993#ixzz1UineqMGb


5/5

Speculators:

There are speculators and hedgers that trade in the commodity markets. (A hedger is not interested inmaking a profit off the movements in price of a commodity futures contract, but rather in shifting his risk ofloss on the commodity itself due to adverse price change.) Speculators will buy and sell futures, oroptions on futures, for the purpose of making a profit. They will buy futures (a long position) when they

think prices will rise, or they will sell futures (a short position) when they think prices will fall. Both thespeculators and hedgers add volume to a market making it a more liquid market to trade.

Most individuals who open commodity trading accounts are speculators looking to benefit off of the pricemovement of the commodity being traded. Farmers, oil operators, cattle companies, etc could open acommodity futures trading account looking to be a hedger and reduce their risk of price movement.

Hedging is the process that is used to reduce risk of loss against negative outcomes within the

stock market. Hedging is a similar concept to home insurance, where you might protect yourself

against negative outcomes by purchasing fire and peril insurance. The only difference with

hedging is that you are insuring against market risks and you are never fully compensated for

your loss. This occurs when one investment is hedged through the purchase of another

investment.

Equity Detail

Documents

Transcript of Equity Detail