Created By: Chirag Singla Student B.com(CA) In that Powerpoint Presentation ~ Meaning of Capital Market, Different Types of Financial Instruments ~ Role and Functions of Capital Market. ~ Types of Capital Market, i.e. Primary Market & Secondary Market ~ Primary Market ~ New issue Market ~ E-IPO ~ Secondary Market and its produv ~ Process of trading ~ Difference Between Primary And Secondary Market ~ SEBI (Securities Exchange Board of India) ~ Regulation of Stock Exchange ~ Ministry of Finance ~ Governing Body ~ Regional Stock Exchange in India and News Channels where the Stock Prices on Tv. By this above description the Powerpoint Presentation is ended

1. Created By:
Chirag Singla

10. Primary market is a market for raising
fresh capital in the form of shares and
debentures
It allows for the formation of capital in
the country and the accelerated
industrial and economic development
Public limited companies who are desirous
of raising capital funds through the issue
of securities approach this market.
The Public limited and government
companies are the issuers and individuals,
institutions and mutual funds are the
investors in this market

11. NEW ISSUE MARKET
• It refers to the set-up which helps the
industry to raise the funds by issuing
different types of securities.
• These securities are issued directly to the
investors (both Individuals as well as
institutional) through the mechanism called
primary market or new issue market.
• The securities take birth in this market.

12. E-IPO
The companies are now
allowed to issue capital to
the public through the on-
line system of the stock
exchanges. For making such
on-line issues, the
Companies should comply with the
provisions contained in Chapter
11A of SEBI(Disclosure and
Investor Protection) Guidelines,

14. Secondary Market
• The secondary market is that market in
which the buying and
selling of the previously issued
securities is done.
• The transactions of the
Secondary market are generally
done through the medium of
stock exchange.
• The chief purpose of the secondary
market is to create liquidity in securities.

15. What are the products dealt in
Secondary Market?
 Equity shares.
 Debentures.
 Government securities.
 Bonds.
 Commercial Papers.

16. Step 1: Investor/Trader decides to trade
Step 2: Places order with a broker to
buy/sell the require quantity of
respective security.
Step 3: Best priced order matches based
on price-time
Step 4: Order execution is electronically
communicated tobroker’s terminal

17. Steps 5: Trade confirmation slip
issued to the investor
trader by the broker
Step 6: Within 24 hours of trade
execution, contract note is
issued to the investor
trader the broker
Step 7: pay-out of funds securities
on T+2 day

18. PRIMARY MARKET
VS
SECONDARY MARKE
T

19. Difference between
Primary Market and secondary market
Primary Market
• In primary market ,
securities are bought by
way of public issue directly
from company
• New issue are available in
primary market
• The primary is a
middlemen
• New issue of common
stock,bonds and preferred
stock are sold
Secondary Market
• In secondary market share are
traded between to investors
• Securities usually bought and
sold through the secondary
market
• The secondary market or
broker and dealer
• In Secondary Market bonds
issue are sold to the public

20. Securities Exchange
Board Of India

22. Regulation of Stock Exchange
The Securities Contract Regulation Act, 1956 and the
Securities and Exchanges Board
of India Act, 1992, provided a comprehensive legal
framework. A three tire regulatory
structure comprising the Ministry of Finance, the
Securities and Exchanges Board of India
and the Governing Boards of the Stock Exchanges
regulates the functioning of stock
exchanges.

23. Ministry of Finance
The stock Exchanges Division of the Ministry of Finance
has powers related to the application of the provision of
the SCR Act and licensing of dealers in the other area.
According to SEBI Act, the Ministry of Finance has the
appellate and supervisory powers over the SEBI. It has
power to grant recognition to the Stock Exchanges and
regulation of their operations. Ministry of Finance has the
power to approve the appointments of chief executives
and nominations of the public representatives in the
Governing Boards of the stock exchanges. It has the
responsibility of preventing undesirable speculation.

24. The Securities and Exchange Board of
India
The Securities and Exchange Board of India even though established in
the year 1988, received statutory powers only on 30th Jan 1992. Under
the SEBI Act, a wide variety of powers is vested in the hands of SEBI.
SEBI has the powers to regulate the business of stock exchanges, other
security markets and mutual funds. Registration and regulation of
market intermediaries are also carried out by SEBI. It has the
responsibility to prohibit the fraudulent unfair trade practices and
insider dealings. Takeovers are also monitored by the SEBI. Stock
Exchanges have to submit periodic and annual returns to SEBI. The
main objective of the SEBI is to promote the healthy growth of the
capital market and protect the investors.

25. These functions are performed by SEBI to regulate the business in stock
exchange. To regulate the activities of stock exchange following functions
are performed-
• SEBI has framed rules and regulations and a code of conduct to regulate the
intermediaries such as merchant bankers, brokers, underwriters, etc.
• These intermediaries have been brought under the regulatory perview &
private placement has been made more restrictive.
• SEBI registers and regulates the working of stock brokers,sub-brokers, share
transfer agents, trustees, merchant Bankers & all those who are associated
with stock exchange in any manner.
• SEBI registers and regulates the working of mutual funds etc.
• SEBI regulates takeover of the companies.
• SEBI conducts inquiries and audit of stock exchanges.

26. The Governing Board
The Governing Board of the stock exchange consists of elected member directors,
government nominees and public representatives. Rules, byelaws and regulations of the
stock exchange provide substantial powers to the Executive Director for maintaining
efficient and smooth day-to-day functioning of the stock exchange.
The governing Board has the responsibility to orderly maintain the well-regulated
market. The governing body of the stock exchange consists of 13 members of which;
(a) 6 members of the stock exchange are elected by the members of the stock exchange
(b) central government nominates not more than three members, (c) the board
nominates three public representatives
(d) SEBI nominates persons not exceeding three
(e)the stock exchange appoints one Executive Director