Secondary Market in India

1. Dhananjay kumar
M.A Economics
IIIrd sem.
Central University of Bihar
CUB1301212003
2013-15

2. Securities are traded after being initially offered
to the public in the primary market and/or listed
on the Stock Exchange.
Two Market
Equity Market
Debt Market

3. For the G.I, Provides an efficient platform for
trading of his securities.
For the management of the company:-
Secondary equity markets serve as a
monitoring and control conduit. By-
facilitating value-enhancing control activities.
enabling implementation of incentive-based
management contracts, and
aggregating information

4. PRIMARY MARKET
SECONDARY MARKET
Securities are offered to
public for subscription
for the purpose of
raising capital or fund
Already existing/pre-
issued securities are
traded among investors
It could be either
auction or dealer
market.

5. It is a place where buying and selling of
Securities takes place.
Regulatory Authority : SEBI
trading platform provided by NSE: Electronic
Demutualisation of stock exchanges:
Ownership, trading rights, managements are
segregated.
Mutual Exchange.

6. Screen Based Trading
NEAT: National Exchange for Automated
Trading
Placing orders with the broker.
Contract Note
details are required
maximum brokerage: 2.5%
INB and INS
precautions

7. Shares: Equity Shares, Rights Issue/ Rights
Shares, Bonus Shares, Preference shares,
Cumulative Preference Shares, Cumulative
Convertible Preference Shares
Bonds: Zero Coupon Bond, Convertible Bond,
Treasury Bills,

8. Portfolio
Diversification
Advantages