Transcription
Financial Markets ManagementClass-XII1
PrefaceAbout NSE AcademyNSE Academy is a subsidiary of National Stock Exchange of India. NSE Academy straddlesthe entire spectrum of financial courses for students of standard VIII and right up to MBAprofessionals. NSE Academy has tied up with premium educational institutes in order todevelop pool of human resources having right skills and expertise which are apt for thefinancial market. Guided by our mission of spreading financial literacy for all, NSE Academyhas constantly innovated its education template, this has resulted in improving the financialwell-being of people at large in society. Our education courses have so far facilitated morethan 41.8 lakh individuals become financially smarter through various initiatives.NSE Academy’s Certification in Financial Markets (NCFM)NCFM is an online certification programme aimed at upgrading skills and building competency.The programme has a widespread reach with testing centres present at more than 154 locations across the country.The NCFM offers certifications ranging from the Basic to Advanced.One can register for the NCFM through: Online mode by creating an online login id through the link ‗Education‘ ‗Certifications‘ ‗Online Register / Enroll‘ available on the website www.nseindia.com Offline mode by filling up registration form available on the website www.nseindia.com ‗Education‘ ‘Certifications‘ ‗Register for Certification‘Once registered, a candidate is allotted a unique NCFM registration number along with anonline login id and can avail of facilities like SMS alerts, online payment, checking of testschedules, online enrolment, profile update etc. through their login id.
CONTENTSCHAPTER1: Introduction to Indian Securities Market and Trading Membership . 101.11.21.3Market Segments . 101.1.1Primary Market . 101.1.2Secondary Market . 10Key Indicators of Securities Market . 101.2.1Index . 101.2.2Market Capitalisation . 101.2.3Market Capitalisation Ratio . 111.2.4Turnover . 111.2.5Turnover Ratio . 11Products and Participants . 111.3.1Products . 111.3.2Participants . 111.4Market Segments and their Products . 131.5Reforms in Indian Securities Markets . 131.6Stock Brokers . 161.7NSE Membership . 171.7.1New Membership . 171.7.2Eligibility Criteria for Membership at NSE . 191.7.3Admission Procedure for New Membership . 251.8Surrender of Trading membership . 261.9Suspension & Expulsion of Membership . 281.9.1Basis of Suspension of Membership . 281.9.2Suspension of Business . 301.9.3Removal of Suspension . 301.9.4Consequences of Suspension . 311.9.5Consequences of Expulsion . 311.10Declaration of Defaulter . 321.11Authorised Persons . 331.12Sub-Brokers . 331.12.1 Eligibility . 351.12.2 Registration . 351.12.3 Cancellation of Registration . 363
1.13Broker-Clients Relations . 361.13.1 Client Registration Documents . 361.13.2 Unique Client Code(UCC) . 371.13.3 Margins from the Clients . 381.13.4 Execution of Orders . 381.13.5 Contract Note . 391.13.6 Payments/Delivery of Securities to the Clients . 391.13.7 Brokerage . 391.13.8 Segregation of Bank Accounts . 391.13.9 Segregation of Demat (Beneficiary)Accounts . 401.14Sub-Broker-Clients Relations . 401.14.1 Relationship with clients . 401.14.2 Contract notes . 401.14.3 Securities/Funds . 401.15Investor Service Cell and Arbitration . 411.16Code of Advertisement . 41CHAPTER 2 : TRADING . 452.1Introduction . 452.2NEAT System . 472.3Market Types . 472.4Trading System Users Hierarchy . 482.5Local Database . 482.6Market Phases . 492.7Logging On . 512.8Log Off / Exit from the Application . 542.9NEAT Screen . 552.10Invoking an Inquiry Screen . 56Market Watch . 56Security Descriptor . 58Market by Price . 59Previous Trades . 60Outstanding Orders . 61Activity Log . 62Order Status . 63Snap Quote . 64Market Movement . 644
Market Inquiry . 65Auction Inquiry . .66Security /Portfolio List . 67Multiple Index Broadcast and Graph . 68Online Backup . 69Basket Trading . 70Buy Back Trades . 72Supplementary Functions . 722.10Order Management . 862.10.1 Entering Orders . 862.10.2 Order Modification . 922.10.3 Order Cancellation . 932.10.4 Order Matching . 932.11Internet Broking . 962.12Co-location .972.13Wireless Application Protocol (WAP) 97CHAPTER3: Clearing, Settlement and Legal Framework . 983.1Introduction . 983.2Key terminologies used in Clearing and Settlement Process . 983.3Transaction Cycle . 993.4Settlement Agencies . 993.5Clearing and Settlement Process . 1013.63.73.5.1Clearing Process . 1013.5.2Settlement Process . 1023.5.3Settlement Cycle . 104Securities and Funds Settlement . 1063.6.1Securities Settlement . 1063.6.2Funds Settlement . 109Shortages Handling . 1113.7.1Valuation Prices . 1113.7.2Close-out Procedures . 1123.8Risks in Settlement . 1153.9Risk Management . 1163.9.1Capital Adequacy Requirements . 1163.9.2Margins . 1183.9.3On-Line Exposure Monitoring . 1273.9.4Off-line Monitoring . 1275
3.9.5Index-based Market-wide Circuit Breakers/Price Bands for Securities . 1273.9.6Settlement Guarantee Mechanism . 1283.10International Securities Identification Number . 1283.11Data and Report Downloads . 1303.11.1 Obligation Reports . 1303.11.2 Custodial Trade Reports . 1303.11.3 Deliveries Reports . 1303.11.4 Funds Reports . 1313.11.5 Auction Reports .
About NSE Academy NSE Academy is a subsidiary of National Stock Exchange of India. NSE Academy straddles the entire spectrum of financial courses for students of standard VIII and right up to MBA professionals. NSE Academy has tied up with premium educational institutes in order to
