Financial Management Indian Capital Market

8/12/2019 Financial Management Indian Capital Market

1/31

Overview of the Indian

Capital Market


2/31

Classification of Capital Marketing

CAPITALMARKET

PRIMARYMARKET

PUBLICISSUE

RIGHTISSUE

BONUSISSUE

PRIVATEPLACEMENT

SECONDARYMARKET

STOCKMARKET


3/31

Primary Market

Market for new i!e"

T#e $ain o%&e'ti(e of a 'a)ita* i!e are +i(en

%e*ow, To )ro$ote a new 'o$)an-"

To e.)an/ an e.itin+ 'o$)an-"

To /i(erif- t#e )ro/!'tion an/ $o/erni0ation" To $eet t#e re+!*ar workin+ 'a)ita* re1!ire$ent"

To 'a)ita*i0e t#e reer(e"


4/31

Issuance Process Public Issue- It i an in(itation %- a 'o$)an- to )!%*i' to !%'ri%e to t#e

e'!ritie offere/ t#ro!+# a )ro)e't!

Initial Public Offer (IPO) 2 3#en an !n*ite/ 'o$)an- $ake eit#er a fre# i!e

of e'!ritie or offer it e.itin+ e'!ritie for a*e or %ot# for t#e firt ti$e to

t#e )!%*i'4 it i 'a**e/ IPO"

Further Public Offer (FPO)2 3#en an a*rea/- *ite/ 'o$)an- $ake eit#er a

fre# i!e of e'!ritie to t#e )!%*i' or an offer for a*e to t#e )!%*i'4 it i 'a**e/

an 5PO"

Right Issue- T#e i!e of new e'!ritie to e.itin+ #are#o*/er in afi.e/ ratio to t#oe a*rea/- #e*/ i 'a**e/ Ri+#t I!e"

Bonus Issue- S#are i!e/ %- 'o$)anie to t#eir #are#o*/er free

of 'ot %- 'a)ita*i0ation of a''!$!*ate/ reer(e fro$ t#e )rofit

earne/ in t#e ear*ier -ear"


5/31

Grading Of IPOGra/e ai+ne/ %- a Cre/it Ratin+ A+en'- 6CRA7

re+itere/ wit# SEBI"

Gra/e re)reent a re*ati(e ae$ent of t#e

f!n/a$enta* of t#at i!e in re*ation to t#e ot#er *ite/

e1!it- e'!ritie in In/ia"


6/31

Listing A/$iion of e'!ritie to /ea*in+ on a re'o+ni0e/

to'k e.'#an+e

Objectives Pro(i/e *i1!i/it- to e'!ritie

Mo%i*i0e a(in+ for e'ono$i' /e(e*o)$ent

Prote't interet of in(etor %- en!rin+ f!**

/i'*o!re


7/31

Minimum Listing Reuirements

In res!ect of Large "a! "om!anies T#e $ini$!$ )ot2i!e )ai/2!) 'a)ita* of t#e a))*i'ant 'o$)an- #a** %e

R" 8 'rore

T#e $ini$!$ i!e i0e #a** %e R" 9: 'rore

T#e $ini$!$ $arket 'a)ita*i0ation of t#e Co$)an- #a** %e R" ;< 'rore

In res!ect of #mall "a! "om!anies T#e $ini$!$ )ot2i!e )ai/2!) 'a)ita* of t#e Co$)an- #a** %e R" 8

'rore

T#e $ini$!$ i!e i0e #a** %e R" 8 'rore

T#e $ini$!$ $arket 'a)ita*i0ation of t#e Co$)an- #a** %e R" < 'rore


8/31

Green #hoe O!tion

Me'#ani$ for ta%i*i0in+ )ot2*itin+ )ri'e of t#e

i!e"

T#e 'a!e of a))*-in+ Green #oe O)tion2

T#e $ana+e$ent of t#e i!er i not o 'onfi/enta%o!t i!e )ri'e w#at t#e- are '*ai$in+ fro$ t#e

in(etor /!e to #i+# offer )ri'e 'o$)are/ to t#e )eer

+ro!) in t#e $arket


9/31

#econdary Market

Market w#ere e'!ritie are tra/e/ after %ein+

initia**- offere/ to t#e )!%*i' in t#e )ri$ar- $arket

an/ *ite/ on t#e to'k e.'#an+e"

It 'o$)rie e1!it- $arket an/ /e%t $arket"

Se'on/ar- $arket f!rt#er #a two 'o$)onent4

na$e*- t#e O(er2 T#e2Co!nter6OTC7 Market an/

E.'#an+e2Tra/e/ Market"


10/31

$rading Platforms


11/31

Bombay #tock %&change

O*/et e.'#an+e in Aia"

T#e +ro!) e(ent!a**- $o(e/ to Da*a* Street in 9=>?an/ in 9=>< %e'a$e an offi'ia* or+ani0ation known a

@T#e Nati(e S#are Sto'k Broker Ao'iation"

In 9


12/31

B#% 'acts 5irt in In/ia to intro/!'e E1!it- Deri(ati(e"

5irt in In/ia to *a!n'# a 5ree 5*oat In/e."

5irt in In/ia to *a!n'# US (erion of BSE Sene."

5irt in In/ia to *a!n'# E.'#an+e Ena%*e/ Internet Tra/in+ P*atfor$"

5irt in In/ia to o%tain ISO 'ertifi'ation for S!r(ei**an'e4 C*earin+ Sett*e$ent"

@BSE On2Line Tra/in+ S-te$ 6BOLT7 #a %een awar/e/ t#e+*o%a**- re'o+nie/ t#e Infor$ation Se'!rit- Mana+e$ent S-te$tan/ar/ BS>>2;,;::;"

5irt to #a(e an e.'*!i(e fa'i*it- for finan'ia* trainin+"


13/31

(ational #tock %&change

In/ia@ *ar+et Sto'k E.'#an+e 3or*/@ t#ir/ *ar+et

Sto'k E.'#an+e in ter$ of trana'tion"

In A)ri* 984 NSE wa re'o+ni0e/ a a Sto'k

e.'#an+e !n/er t#e Se'!ritie Contra't 6Re+!*ation7A't29


14/31

Objective Eta%*i#in+ nationwi/e tra/in+ fa'i*it- for a** t-)e of

e'!ritie"

En!rin+ e1!a* a''e to in(etor a** o(er t#e 'o!ntr-t#ro!+# an a))ro)riate te*e'o$$!ni'ation network"

Pro(i/in+ fair4 effi'ient tran)arent e'!ritie $arket !in+e*e'troni' tra/in+ -te$"

Ena%*in+ #orter ett*e$ent '-'*e an/ %ook entr-ett*e$ent"

Meetin+ Internationa* %en'#$ark an/ tan/ar/"


15/31

(se Market E1!it- OR Ca)ita* Market FNSE@ $arket #are i

o(er


16/31

"urrency Market

'oreign %&change Market:-

P!r'#ae or a*e of one nationa* '!rren'- in e.'#an+efor anot#er nation '!rren'-4 !!a**- 'on/!'te/ in a$arket ettin+


17/31

M")-#)

In/ia@ New Sto'k E.'#an+e wa *a!n'#e/ in O'to%er;::=4 !n/er t#e re+!*ator- fra$ework of Se'!ritie E.'#an+e Boar/ of In/ia 6SEBI7

C!rrent*- MCJ2SJ offer C!rren'- 5!t!re 'ontra't"

C*earin+ an/ Sett*e$ent i 'on/!'te/ t#ro!+# t#eMCJ Sto'k E.'#an+e C*earin+ Cor)oration Lt/6MCJ2SJ CCL7"

D!rin+ it one -ear of o)eration4 MCJ2SJ #aa'#ie(e/ t!)en/o! +rowt# rate in a(era+e /ai*-t!rno(er an/ O)en Interet"


18/31

"ommodity Market "OMMO*I$+:-So$et#in+ t#at #a 'o$$er'ia* (a*!e4

w#i'# 'an %e )ro/!'e/4 %o!+#t4 o*/4 'on!$e/ an/ #a*i1!i/it-"

"OMMO*I$+ M,R%$:-A 'o$$o/it- $arket i an

e.'#an+e w#ere %!-er an/ e**er 'o$e to+et#er totra/e 'o$$o/itie"

$here are three national and ./ regional commodity

e&changes in India0


19/31

M")

Hea/1!artere/ in t#e finan'ia* 'a)ita* of In/ia4 M!$%ai"

It i a /e$!t!a*ie/ nationwi/e e*e'troni' 'o$$o/it-f!t!re e.'#an+e et !) %- 5inan'ia* Te'#no*o+ie 6In/ia7

Lt/" wit# )er$anent re'o+nition fro$ Go(ern$ent ofIn/ia for fa'i*itatin+ on*ine tra/in+4 '*earin+ ett*e$ento)eration for f!t!re $arket a'ro t#e 'o!ntr-"

T#e e.'#an+e tarte/ o)eration in No(e$%er ;::8"


20/31

M")#a a'#ie(e/ t#ree ISO 'ertifi'ation

I#O /11.23111 for 1!a*it- $ana+e$ent I#O 3411.23115 2 for infor$ation e'!rit-

$ana+e$ent -te$

I#O .611.23116 for en(iron$ent $ana+e$ent -te$

M") offers futures trading in more than 61commodities from various market segments includingbullion7 energy7 ferrous and non-ferrous metals7 oil

and oil seeds7 cereal7 !ulses7 !lantation7 s!ices7 !lasticand fibre


21/31

'act 'ile

MCJ i In/ia@ No" 9 'o$$o/it- e.'#an+e wit# =?Market #are in ;::=6:"=? tri**ion7

T#e e.'#an+e@ 'o$)etitor i Nationa* Co$$o/it- Deri(ati(e E.'#an+e Lt/ 6NCDEJ7

G*o%a**-4 MCJ rank no" 9 in i*(er4 no" ; in nat!ra* +a4 no"8 in 'r!/e oi* an/ +o*/ in f!t!re tra/in+

T#e 'r!/e (o*!$e to!'#e/ ;8"? Mi**ion %arre* on an!ar-84 ;::

T#e #i+#et tra/e/ ite$ i +o*/ wit# an a(era+e $ont#*-t!rno(er of R 9"?; Tri**ion 6; Bi**ion7"

MCJ #a 9: trate+i' a**ian'e wit# *ea/in+ 'o$$o/it-

e.'#an+e a'ro t#e +*o%e


22/31

'act 'ile MCJ re'or/e/ it Hi+#et Dai*- T!rno(er in'e

in'e)tion of R"


23/31

Key World Stock Indices

Key Asian Stock Indices

9" Han+ Sen+ 6Hon+ Kon+ Market in/e.7

;" SGJ 6Sin+a)ore Sto'k E.'#an+e7

8" Nikkei 6a)an7

Key Euroean Stock E!chan"es

9" 5TSE 9:: 6Lon/on7

;" CAC ?: 6Pari7

8" DAJ 65rankf!rt7


24/31

Depository

A /e)oitor- i *ike a %ank w#erein t#e /e)oit aree'!ritie 6(i0" #are4 /e%ent!re4 %on/4 +o(ern$ente'!ritie4 !nit et'"7 in e*e'troni' for$"

T#ere are two t-)e of De)oitor- in o!r 'o!ntr-

NSDL6Nationa* Se'!ritie /e)oitor- Li$ite/7

CDSL6Centra* De)oitor- Ser(i'e Li$ite/7


25/31

#$S% Facts & Fi"ures:NSDL i )ro$ote/ %-

In/!tria* De(e*o)$ent Bank of In/ia Li$ite/ 6IDBI72 t#e *ar+et /e(e*o)$ent %ank of In/ia4

Unit Tr!t of In/ia 6UTI7 2 t#e *ar+et $!t!a* f!n/ inIn/ia an/

Nationa* Sto'k E.'#an+e of In/ia Li$ite/ 6NSE7 2 t#e*ar+et to'k e.'#an+e in In/ia


26/31

#$S% Facts & Fi"ures:

NSDL #a 'roe/ $ore t#an one Crore /e$at a''o!nt"

N!$%er of 'o$)anie in w#i'# $ore t#an >


27/31

'$S% Facts & Fi"ures:

CDSL wa )ro$ote/ %-

Bo$%a- Sto'k E.'#an+e Li$ite/ 6BSE7 &oint*- wit#*ea/in+ %ank !'# a State Bank of In/ia4 Bank ofIn/ia4 Bank of Baro/a4 HD5C Bank4 Stan/ar/C#artere/ Bank4 Union Bank of In/ia an/ Cent!rionBank"


28/31

'$S% Facts & Fi"ures:So$e of t#e i$)ortant $i*etone of CDSL -te$ are,

CDSL re'ei(e/ t#e 'ertifi'ate of 'o$$en'e$ent of %!inefro$ SEBI in 5e%r!ar-4 9"

Honora%*e 5or$er Union 5inan'e Miniter4 S#ri Ya#wantSin#a f*a++e/ off t#e o)eration of CDSL on !*- 9


29/31

Regulators in Secondary MarketKe- Market Re+!*ator

SE*I(Securities & E!chan"e *oard Of India)

+esonsibility-+e"ulation of 'aital ,arket

;" DEA6De)art$ent of E'ono$i' Affair7Re)oni%i*it-2Or/er*- f!n'tionin+ of t#e w#o*e finan'ia* $arket"

8" CLB6Co$)an- Law Boar/7

Re)oni%i*it-2A/$initration of Co$)anie A't 9


30/31

Regulators in Secondary Market


31/31

Lit of Pro$inent SEBI C#air$an

Na$e 5ro$ To

U"K"Sin#a 9= 5e%r!ar- ;:99 Preent

C" B" B#a(e 9= 5e%r!ar- ;::= 9= 5e%r!ar- ;:99

M" Da$o/aran 9= 5e%r!ar- ;::< 9= 5e%r!ar- ;::=

G" N" Ba&)ai ;: 5e%r!ar- ;::; 9= 5e%r!ar- ;::

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Financial Management Indian Capital Market