• He should not be defaulter of any stock exchange. • The minimum required educational qualification is a pass in 12 th standard examination.
Share Groups • The listed shares are divided into three categories: • Share Groups Group A shares(specified shares) B1 shares B shares • The shares that come under specified group can avail the carry forward transactions.
• In group A, shares are selected on the basis of equity, market capitalization and public holding. Further it should have good track record and dividend paying company. It should have good growth potential too. • In the B1 group actively traded shares are included. Carry forward transactions are not allowed in this group. • The rest of the company shares listed form the B group.
Post-reforms Stock Market Scenario • NSE was set up in 1994. • It was the first modern stock exchange to bring in new technology, new trading practices, new institutions and new products. • There are 23 stock exchanges in India- 19 regional stock exchange, the BSE, the NSE, the OTCEI (over the counter exchange of India) and the Interconnected Stock exchange of India (ICSEI)
• 19 regional exchange are located at 1. Ahmadabad 2. Bangalore 3. Bhubaneswar 4. Kolkata 5. Cochin 6. Coimbatore 7. Delhi 8. Guwahati 9. Hyderabad 10.Indore 11.Jaipur 12.Kanpur 13.Ludhiana 14.Chennai 15.Mangalore 16.Pune 17.Patna 18.Rajkot 19.Vadodara
Functions of Secondary Market Facilitate liquidity and marketability Channelize funds to the efficient sector Provide valuation of securities Protect investor’s interests Induce companies to improve performance
Difference between the Primary market and the Secondary market – In the primary market, securities are offered to public for subscription for the purpose of raising capital or fund. – Secondary market is an equity trading avenue in which already existing/pre- issued securities are traded amongst investors. – Secondary market could be either auction or dealer market. While stock exchange is the part of an auction market.
A company has to list its securities on the exchange so that they are available for trading. A company can seek listing on more than one stock exchange but it is compulsory to list on the regional stock exchange nearest to its registered office. A company can seek listing if minimum of 20 lakh securities have been offered to public for subscription. In addition, the size of the net offer to the public (offer price * number of securities offered) is not less than Rs.100 crore. The basic norms for listing of securities are uniform for all exchanges. Basic norms for listing uniform Companies to pay listing fees annually SEBI has setup a Central Listing Authority (CLA) Listing of Securities (assignment new rules)
After a security is issued to the public and listed on a stock exchange, the issuing company has to make continuous disclosures relating to financial results, material information which would have a bearing on the performance of the company.
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- Fall '14
- • Securities