BFM

Depository Services And Demat Account In the depository system, the physical securities are converted into electronic form through the process of dematerialization The constituents of depository system are: Depository Depository Participants Issuing Company Investors   In India, there are two depositories: NATIONAL SECURITIES DEPOSITORY LTD. (NSDL) – having 95 cr demat accounts CENTRAL DEPOSITORY SERVICES […]

Trading Procedure On A Stock Exchange   Till a few years ago trading on a stock exchange took place through a public outcry or auction system. This has been replaced by an online screen based electronic trading system as almost all exchanges have become electronic. Trading has, therefore, shifted from the stock market floor to […]

Functions of a Stock Exchange The efficient functioning of a stock exchange creates a conducive climate for an active and growing primary market for new issues. An active and healthy secondary market in existing securities leads to positive environment among investors. The following are some of the important functions of a stock exchange. Providing Liquidity […]

STOCK EXCHANGE A stock exchange is an institution which provides a platform for buying and selling of existing securities. As a market, the stock exchange facilitates the exchange of a security (share, debenture etc.) into money and vice versa. Stock exchanges help companies raise finance, provide liquidity and safety of investment to the investors and […]

SECONDARY MARKET The secondary market is also known as the stock market or stock exchange. It is a market for the purchase and sale of existing securities. It helps existing investors to disinvest and fresh investors to enter the market. It also provides liquidity and marketability to existing securities. It also contributes to economic growth […]

e-IPOs: A company proposing to issue capital to the public through the on-line system of the stock exchange has to enter into an agreement with the stock exchange. This is called an Electronic Initial Public Offer (e-IPO). SEBI registered brokers have to be appointed for the purpose of accepting applications and placing orders with the […]

Rights Issue: This is a privilege given to existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company. The shareholders are offered the ‘right’ to buy new shares in proportion to the number of shares they already possess.

Commercial Paper: Commercial paper is: A short-term unsecured promissory note which is freely transferable. It is issued by large and creditworthy companies to raise short-term funds at lower rates of interest than market rates. It usually has a maturity period of 15 days to one year. The issuance of commercial paper is an alternative to […]

Treasury bill: A Treasury bill is basically: an instrument of short-term borrowing by the Reserve Bank Of India on behalf of Government of India maturing in less than one year to meet its short-term requirement of funds They are also known as Zero Coupon Bonds issued with minimum amount of Rs 25,000 Treasury bills are […]

Depository: It is an institution which holds securities of investors in electronic form at the request of investors through depository participant   Depository Participant – He is the agent of depository. A DP works like a bank branch with whom demat a/c is opened. He is in direct contact with the investors for all the […]