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Stock Exchange & Its Regulations
Stock Exchange & Its Regulations
Once a companys public offering is gets listed in a stock exchange. After listing it would be available for trading to all investors in the stock exchanges where they are listed.
DEFINITION
According to Husband and dockerary,
Promotion of investment.
Help capital formation. Give mobility to capital. Exercise control over the working of companies. Marketing of new issues. Companies &government to raise funds from the investors. Providing forecasting services. Miscellaneous services.
Exchange of India) and the National Stock Exchange (NSE). The Bombay Stock exchange
established in 1878 is the oldest in Asia. There are over 10,000 companies listed and the number of investors is also one of the largest in the world. Only members and their authorized clerks can enter the trading floor and conduct buying and selling of securities.
TYPES OF SPECULATOR
Bull: Is a speculator who buys shares in the expectation of selling it at a higher price. Bear: Sells securities in the expectation of a fall in their prices in future. Stag: Neither buys nor sells but applies for subscription to the new issues expecting that he can sell them later at a premium. Option Dealing: Option is the right to buy or sell a certain quantity of the security at a certain price within a certain time. The option to buy is known as Call Option and the option to sell is know as a Put Option. In an option dealing, the speculator is given the right or option to buy
or sell, or both buy and sell as the case maybe on the settlement day or
else he will forfeit the option money.
REGULATIONS
Capital issue (control) act, 1947
It gives central government regulatory jurisdiction over: Stock exchanges: recognition and supervision Processing application of recognition of stock exchanges Grant of recognition to stock exchange
The act also provide various cases when a person is liable for
penalties such as when there is failure to: Furnish information, return, etc Enter into agreements with clients Redress investors grievances Segregate securities or moneys of client or clients Comply with provision of listing and delisting conditions etc.
markets.
Registering and regulating the working of: Stock brokers, sub-brokers, share transfer agents, bankers to
with
Speed Accuracy
Security
The act provides the right and obligations of: Depositories Participants Issuers Beneficial owners
of a beneficial owner.
The depository as a registered owner should not have any voting rights or other rights in the securities held by it.
of beneficial owners.
The depositories are required to furnish information about the transfer of securities in the name of beneficial owners at such
REFERENCES
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_EXCHANGE_ppt
http://www.scribd.com/doc/20732155/Stock-ExchangeSEBI-BSE-NSE-Sensex-Nifty-Cal-of-Sensex http://www.scribd.com/doc/53353159/SEBI-PPT http://www.slideshare.net/saifsidd/indian-stock-marketpresentation