 Simple to Complex

 Supply > Demand

 Information Technology
 One world
 New Type of Industry
 Job Profile Changing
 Security to Performance
 Eligibility of Jobs-


Not Qualification but Uniqueness
 Legislations
◦ Capital Issues (Control) Act,1947
◦ SEBI Act, 1992
◦ Securities Contract (Regulation) Act,1956
◦ Depositories Act, 1996
◦ Companies Act, 1956
 Regulators
◦ DEA, DCA, RBI and SEBI
 Instruments
◦ Traditional
◦ Modern-Derivatives, Exchange Traded Funds, Euro Issues
etc.
 Services
◦ Underwriting, Merchant Banking, Custodial Services
 Intermediaries
 Underwriter, Broker, Banker, Registrar, Advisors etc.
Structure of Capital Market in India
• Market Segments
– Primary and Secondary
• Regulators
– SEBI, RBI, DCA, DEA
• Legislations
– Capital Issues (Control) Act,1947
– SEBI Act, 1992; Depositories Act,1996
– Securities Contract Regulation Act 1956
– Companies Act, 1956
• Participants
– Issuers, Intermediaries, Investors
Broad Structure of Secondary Market as on March 31,2003
 Objectives
◦ Improving Market Efficiency
◦ Enhancing Transparency
◦ Preventing Unfair Trade Practices
◦ Integration with International Markets
 Actions
◦ Liberalise
◦ Regulate
◦ Develop
 SEBI ACT,1992
◦ Protect-Promote-Regulate
 Disclosure and Investor Protection Guidelines
(DIP)
 Free Pricing
 Book Building
 Screen Based Trading
 Internet Trading-Mobile Trading
 Trading Cycle
◦ T+5, T+3, T+2, T+1
 Derivatives Trading (June 2000)
 Demutalisation and Corporatisation
◦ Ownership-Management-Trading Membership
 Depositories
◦ NSDL and CDSL
 Risk Management
◦ Capital Adequacy, Margin, monitoring,
Trade/Settlement Guarantee Fund
 Investor Protection and Education
 Globalisation
◦ ADR, GDR, FCCBs, ECBs, FIIs, IDRs
 Miscellaneous
◦ e-IPOs,
◦ ESOPs,
◦ Buy back,
◦ Private Placement,
◦ Bought out Deals,
◦ OTCEI, NSE, ICSEI,
◦ Regional Stock Exchanges