Securities Market is where trades of securities such as stocks and bonds take place based on their demand and supply.
The Indian securities market consists of a number of participants who link demanders and suppliers of funds.
The different participants in Indian Securities Market are-
Security Market Regulators in India
The Indian agencies that have an important regulatory influence either directly or Indirectly over the securities market are as follows:
- The Company Law Board (CLB) - It is responsible for the administration of the Companies Act, 1956.
- The Reserve Bank of India (RBI) - It is primarily responsible for the Supervision of banks, money market, and government securities market.
- The Securities and Exchange Board of India (SEBI) - It is responsible for the Regulation of the capital market.
- The Department of Economic Affairs (DEA)- It is popularly known as an arm of the government, which is concerned with the orderly functioning of the financial markets as a Whole.
- The Ministry of Company Affairs (MCA)- It is responsible for the administration of corporate bodies.
Stock Exchanges in Indian Market
An institution where securities that have already been issued are bought and sold is known as Stock Exchanges. The two major Stock Exchanges in India are NSE and BSE.
Listed Securities : Stock Exchanges
Securities that are listed on various stock exchanges and so are eligible to be traded are called listed securities. Currently there are about 10,000 securities on all the stock exchanges in India put together.
What Are Depositories?
Depository is an institution which dematerialises physical certificates.It effects transfer of ownership by electronic book entries. Currently, there are about two depositories in India.
- The National Securities Depository Limited (NSDL.
- The Central Securities Depository Limited (CSDL).
Brokers: Middle Man
Brokers are registered members of the stock exchanges who buys and sells goods and assets for others India currently have about 10,000 brokers.
Foreign Institutional Investors
Institutional investors are investors from abroad who are registered with SEBI to operate in the Indian capital market . India have about 600 of them and have emerged as a major force in the market.
Merchant Bankers: Securities Manager
Merchant Bankers are the Firms that specialise in managing the issue of securities.
Brokers are registered members of the stock exchanges who buys and sells goods and assets for others India currently have about 10,000 brokers.
Foreign Institutional Investors
Institutional investors are investors from abroad who are registered with SEBI to operate in the Indian capital market . India have about 600 of them and have emerged as a major force in the market.
Merchant Bankers: Securities Manager
Merchant Bankers are the Firms that specialise in managing the issue of securities.
Merchant Bankers are the Bankers that have to be registered with SEBI.
Primary Dealers: First Dealer
Primary dealer,as appointed by RBI,serve as underwriters in the primary market and as market makers in the secondary market for government securities.
Mutual Funds: Long-Term Funds
A mutual fund act as a vehicle for collective investment.
Primary Dealers: First Dealer
Primary dealer,as appointed by RBI,serve as underwriters in the primary market and as market makers in the secondary market for government securities.
Mutual Funds: Long-Term Funds
A mutual fund act as a vehicle for collective investment.
It organises and manages the funds of investors.
Currently, there are about 30 mutual funds in India.
Custodians: Investment & Management
A custodian looks after the investment and management of mutual fund.
Custodians: Investment & Management
A custodian looks after the investment and management of mutual fund.
It receives and delivers securities, collects income, distributes dividends, and segregates the assets between schemes.
Registrars and Transfer Agents
A registrar and transfer agent is employed by a company to handle mutual fund and all investor-related services.
Underwriters : Guarantee For Public Subscription
An underwriter approves to subscribe to a given number of shares (or any other security) in the event the public subscription is inappropriate.
Registrars and Transfer Agents
A registrar and transfer agent is employed by a company to handle mutual fund and all investor-related services.
Underwriters : Guarantee For Public Subscription
An underwriter approves to subscribe to a given number of shares (or any other security) in the event the public subscription is inappropriate.
The underwriter stands guarantee for public subscription.
Bankers to An Issue
The bankers to an issue is used to collect money from the applicants on behalf of the company.
Debenture Trustees
A debenture trustee has to be appointed to ensure that the borrowing firm fulfills its contractual obligations at the time of issuing of the debentures.
Venture Capital Funds
A venture capital fund is a collective capital which is usually invested in equity shares or equity-linked instruments of unlisted companies.
Credit Rating Agencies
A credit rating agency works for assigning ratings primarily to debt securities.
This is how the Indian Securities Market is formed by 16 participants and how they play their role in managing fund and StocksStocks.
Written By: Hamna Khan
Bankers to An Issue
The bankers to an issue is used to collect money from the applicants on behalf of the company.
Debenture Trustees
A debenture trustee has to be appointed to ensure that the borrowing firm fulfills its contractual obligations at the time of issuing of the debentures.
Venture Capital Funds
A venture capital fund is a collective capital which is usually invested in equity shares or equity-linked instruments of unlisted companies.
Credit Rating Agencies
A credit rating agency works for assigning ratings primarily to debt securities.
This is how the Indian Securities Market is formed by 16 participants and how they play their role in managing fund and StocksStocks.
Written By: Hamna Khan
Edited By: Komal Jha
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