Financial System In India Money Market :The money market is a place for trading in money and shortterm financial assets that are close substitutes for money. Money Market Instruments: 1)Commercial Banks 2)Treasury Bills 3)Call & short notice money
Capital
Market Refers to the institutional arrangements for facilitating the borrowing and lending of long-term funds.
Components of Capital Markets: 1)Primary Market 2)Secondary Market 3)Financial Institution
National stock exchange NSE
was recognized as a Stock exchange in April 1993. It is the World's third largest Stock Exchange in terms of transactions. NSE is India's largest Stock Exchange . NSE was promoted by leading Financial Institutions . There are 1,381 companies listed at NSE . NSE is the first to allow short selling.
National Stock Exchange at Bandra Kurla Complex, Mumbai
Objectives
Establishing nationwide trading facility for all types of securities
Ensuring equal access to investors all over the country through an appropriate telecommunication network.
Providing fair, efficient & transparent securities market using electronic trading system.
Meeting International benchmarks and standards.
NSE's markets Equity
or Capital Markets (NSE's market share is over 65%) Futures & Options or Derivatives Market (NSE's market share over 99.5%) Wholesale Debt Market (WDM) Mutual Funds (MF) Initial Public Offerings (IPO)
Working Hours
NSE's normal trading sessions are from 9:55am to 03:30pm on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance.
Geographic Distribution
Over 2600 trading terminals
24 hour Network monitoring system in over 160 cities.
Membership in NSE There are no entry/exist barriers to membership in NSE anybody can become member by complying with the prescribed eligibility criteria and exit by surrendering hidden/over cost. The minimum prescribed qualification. The members are required to have an interest free cash deposit of Rs.25 lakhs. Minimum two directors in case the applicant is a corporate of which one should be a whole time direction
Technology
NEAT
National Exchange for Automated Trading (NEAT), is a client server based application.
At the server end all trading information is stored in an memory database to achieve minimum response time and maximum system availability for users.
It has uptime record of 99.7%.
For all trades entered into NEAT system, there is uniform response time of less than one second.
Major Indices S&P
CNX Nifty CNX Nifty Junior CNX 100 S&P CNX 500 CNX Midcap Nifty Midcap 50 CNX Midcap 200
Powers and Functions of SEBI
Regulating the business in Stock exchanges and any other securities market. Prohibiting insider trading in securities. Promoting investors education and training of intermediaries of securities markets. Conducting research to see that investing in stocks is safe and profitable. Prohibiting fraudulent and unfair trade practices relating to securities markets
Conclusion Start
investing Keep investing Invest smart
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