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Capital

Marketing is defined as the process of increasing the major part of financial capital required for starting a business through issue of shares to public. The issue may be Shares, Debentures , Bonds, etc. Capital market is a market for long term debts and equity shares.

A depository is like a bank wherein the deposits are securities (viz. shares, debentures, bonds, government securities, units etc.) in electronic form. There are two types of Depository in our country NSDL CDSL

CAPITAL MARKET

PRIMARY MARKET

SECONDARY MARKET

PUBLIC ISSUE

RIGHT ISSUE

BONUS ISSUE

PRIVATE PLACEMENT

STOCK MARKET

In

Primary Market, Securities are offered to the public for subscription, for the purpose of raising the capital or funds. The issue of securities in the primary market is subjected to fulfillment of a number of pre-issue guidelines by SEBI and compliance to various provision of the Company Act.

Classification of Issues

Issues
Right Public
Private placement

Initial Public Offering

Further Public Offering

Fresh Issue

Offer for sale

Fresh Issue

Offer for sale

PUBLIC ISSUE It involves raising of funds directly from the public and get themselves listed on the stock exchange in case of new companies ,the face value of the securities is issue at par, and in the case of existing companies, the face value of securities are issued at premium Initial public offer (IPO): When an unlisted company makes either a fresh issue of securities or offers its existing securities for sale or both for the first time to the public, it is called an IPO. This paves way for listing and trading of the issuers securities in the Stock Exchanges. Further public offer (FPO): When an already listed company makes either a fresh issue of securities to the public or an offer for sale to the public, it is called a FPO. RIGHT ISSUE:Right issue is the method of raising additional finance from existing members by offering securities to them on pro rata bases. The rights offer should be kept open for a period of 60 days and should be announced within one month of the closure of books.

BONUS ISSUE:Companies distribute profits to existing shareholders by way of fully paid bonus share in lieu of dividend. These are issued in the ratio of existing shares held. The shareholders do not have to make any additional payment for these shares PRIVATE PLACEMENT: Private Placement is an issue of shares by a company to a select group of persons under the Section 81 of the companies act 1956. It is a faster way for a company to raise equity capital.

Secondary Market refers to a market where securities are traded after being initially offered to the public in the primary market and/or listed on the stock exchange. Secondary market comprises of Equity market and Debt market. It is the trading avenue in which the already existing securities are traded amongst investors. Banks facilitate secondary market transactions by opening direct trading and demat accounts to individuals and companies.

SEBI is the regulator for the Securities Market in India. It was formed officially by the Government of India in 1988 with SEBI Act 1992 being passed by the Indian Parliament.

Securities Transaction Tax(STT): Securities Transaction Tax is a tax being levied on all transaction done on the stock exchanges at rates prescribed by the central government from time to time. Rolling Settlement: In Rolling Settlement, trades executed during the day are settled, based on the Nett obligations for the day. Presently the trade pertaining to the rolling settlement are settled on a T+2 day basis , where T stands for the trade day. Pay- in Day and Pay-out Day: Pay-in day is the day when the brokers make payments or delivery of securities to the exchange. Pay-out day is the day when the exchange makes payment or delivery of securities to the broker. Settlement cycle is on a T+2 rolling settlement basis.

Centres for trading of securities 24 stock exchanges in India22 are regional stock exchanges are primary stock exchanges

Total

-National Stock Exchange -Bombay Stock Exchange

Set up in June 1994. Provides fully automated screen-based trading system across the country. Has S&P NSE 50 Index( Nifty).

Established in1987. BSE Index- BSE Sensex comprising of 30 stocks.

Brokers An individual or firm which acts as an intermediary between abuyer and seller, usually charging a commission. Forsecurities and most other products, a license is required. Sub broker Any person not being a member of a stock exchange who acts on behalf of a stockbroker as an agent or otherwise for assisting the investors in buying, selling or dealing in securities through such stock-brokers.

Apollo Sindhoori Capital Investments ICICIdirect Sharekhan Indiabulls India Infoline Geojit Securities HDFC Reliance Money Religare Geojit Angel Broking