CAPITAL

MARKET
S

INTRODUCT
ION

FINANCIAL MARKET

WHAT IS CAPITAL MKT?

A capital market is simply any market where
a government or a company can raise money
(capital) to fund their operations and long term
investment.
Selling bonds and selling stock are two ways
to generate capital, thus BOND MARKET and
STOCK MARKET are considered capital markets.
Capital Market is characterized as the
provider of long-term financing. The instruments
used for this long-term financing are equity
instruments, insurance instruments, derivative

CAPITAL
PRIMARY
SECONDARY
MARKET
MARKET
MARKET

PRIMARY MARKET
Primary Market also called the
new issue market, is the
market for issuing new
securities.
Many companies, especially
small and medium scale, enter
the primary market to raise
money from the public to
expand their businesses.

METHODS
Rights
Initial public
FOLLOW
Preferential
issue
ONissue
offering
PUBLIC

OFFERING

What is Secondary
Market?
The secondary market, also called
aftermarket, is the financial market
where previously issued securities
and financial instruments such as
stock, bonds, options, and futures
are bought and sold.

Secondary mkt is also called as

STOCK MARKET.

WHAT IS A SHARE????

Stock Exchanges in INDIA

Mangalore Stock
Exchange
Hyderabad Stock
Exchange
Uttar Pradesh Stock
Exchange
Coimbatore Stock
Exchange
Cochin Stock Exchange
Bangalore Stock
Exchange
Saurashtra Kutch Stock
Exchange
Pune Stock Exchange
National Stock Exchange
OTC Exchange of India
Calcutta Stock Exchange
Inter-connected Stock
Exchange (NEW)
Madras Stock Exchange

Bombay Stock
Exchange
Madhya Pradesh
Stock Exchange
Vadodara Stock
Exchange
The Ahmedabad
Stock Exchange
Magadh Stock
Exchange
Gauhati Stock
Exchange
Bhubaneswar Stock
Exchange
Jaipur Stock
Exchange
Delhi Stock

Difference

BSE stands for

Bombay stock
exchange.

NSE stands for

National Stock
Exchange.

BSE index comes

after averaging the
30 listed companies
under it

NSE index comes

after averaging the
50 listed companies
under it

BSE provides state

based trading

NSE provides nation

wide trading.

BSE is indicated by
sensex.

NSE is indicated by
Nifty.

BSE 30
1. RELIANCE IND
2. INFOSYS TECH
3. ICICI BANK
4. L & T
5. HDFC
6. HDFC BANK
7. ITC
8. SBI
9. ONGC
10. BHARTI AIRTEL
11. TATA CONSULT
12. HINDUSTAN UNILEVER
13. BHEL
14. TATA STEEL
15. TATA MOTORS

16. M& M
17. JINDAL STEEL P
18. HINDALCO
19. WIPRO
20. STERLITE INDS
21. TATA POWER
22. MARUTI SUZUKI
23. NTPC
24. HERO HONDA
25. RELIANCE INFRA
26. CIPLA
27. JAIPRAKASH ASSO
28. DLF
29. RELIANCE COMM
30. ACC

1. RELIANCE IND
2. INFOSYS TECH
PUNJAB NATIONAL BANK
3.ICICI BANK
KOTAK MAHINDRA BANK
4. L& T
HERO HONDA
5. HDFC
RELIANCE INFRA
6.HDFC BANK
CIPLA
7.ITC
SUN PHARMA
8. SBI
CAIRN
9. ONGC
JAIPRAKASH ASSO
10. BHARTI AIRTEL
11. TATA CONSULT
UNITECH
12.AXIS BANK
SIEMENS
13.BHEL
IDEA CELLULAR
14. TATA STEEL
AMBUJA CEMENT
15. TATA MOTORS

NSE 50

26. NTPC
27.
28.
29.
30.
31.
32.
33.
34.
35. DLF
36.
37.
38.
39.
40. SAIL

Securities
Exchange
Board of
India

Governing Body
The Securities and Exchange
Board of India (SEBI) is the
regulatory authority in India
established under Section 3 of
SEBI Act, 1992.
POWERS
Functions

De-Mat
De-Mat account is a safe and
convenient means of holding securities
just like a bank account is for funds.
Today, practically 99.9% settlement
(of shares) takes place on demat mode
only.
A maximum of 3 persons are allowed to
open a joint demat account in their
names.

Depositaries

CENTRAL DEPOSITORY
SECURITIES LIMITED

Role of broker & sub broker in CAPITAL MARKET

A broker is a member of a recognized

stock exchange, who is permitted to
do trades on the screen-based trading
system of different stock exchanges.
He is enrolled as a member with the
concerned exchange and is registered
with SEBI.
A sub broker is a person who is
registered with SEBI as such and is
affiliated to a member of a recognized
stock exchange

HOW TRADING TAKES PLACE

&
WHT IS THE PROCESS OF TRADING

Step1: Investor or trader decides to

trade
Step2: Places order with a broker to
buy or sell the required quantity of
respective security
Step3: Best priced order matches
based on price- time priority
Step4: Order is electronically
communicated to the brokers terminal

 Step5: Trade confirmation slip

issued to the investor/trader by the
broker
Step6: Within 24hrs of trade
execution, contract note is issued
to the investor/trader by the broker
Step7: Pay-in of funds & securities
before T+2 day
Step8: Pay-out of funds &
securities on T+2 day.

INVESTORS IN CAPITAL MARKET

Individuals.
Corporate.
Governments.
Foreign countries.
Banks.
Financial
Institutions

CLASSIFICATION OF INDIAN CAPITAL

MARKET
DEBT
MARKE
T

COMMODI
TY
MARKET

DERIVATI
VES

INDIAN
CAPITA
L
MARKE
T

EQUIT
Y
MARKE
T

MUTUAL
FUNDS

FACTORS AFFECTING
INDIAN CAPITAL
MARKET
PUBLIC SENTIMENT
Speculation or Insider
Trading
FDI
Change in Policy

 GOVERNMENT POLICIES
GLOBAL MARKET
INFLATION
FINANCIAL STATEMENTS OF
COMPANIES

e
S

r
o
t
c
s

1. BANKING SECTOR

2. CAPITAL GOODS SECTOR

3. CEMENT SECTOR

4. OIL& GAS

5.INFRASTRURURE

6. POWER
7. TELECOMMUNICATION

8. METAL

9. IT

10. AUTO

Than
k You