Basics of Capital Market

Description
Overview of Capital Market (Basics)

(Overview Of Capital Market )
1

Capital market Participants
2

? SEBI ? Depositories ? Depository Participants ? Demat account ? Stock Brokers ? Settlement
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Securities and Exchange Board Of India
3

? Improving Market efficiency.
? Enhancing Transparency. ? Checking unfair trade practices . ? Bringing the Indian market to International standards

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Depositories
4

The Principal function of the Depository is to dematerialise securities and enable their transactions in book-entry form.
? National Securities Depository Limited. ? Central Depository Security (India) Limited

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Depository Participants (DP)
5

They are the intermediaries between the depository and Investors
Depository

DP

DP

Broker

Investor

Broker

Investor
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Demat Account
6

Bank

Demat

Holds funds in accounts Transfer funds between accounts Transfer without handling cash

Holds securities in accounts Transfers securities between accounts Transfer without handling physical securities

Safekeeping of money

Safekeeping of securities

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Stock Brokers
7

? Intermediaries who are allowed to trade in securities

on the exchange.
? They buy and sell on their won behalf as well as on

behalf of their clients.
? For retail clients it’s compulsory to open a Broking

account.

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Settlements
8

? Off-market Transactions

? Market Transaction

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9

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