Indian securities market and the role of Sharekhan

Securities market has essentially three categories of participants, namely the issuer of securities, investors in securities and the intermediaries, and two categories of products, namely the services of the intermediaries, the securities including derivatives. The securities market has two interdependent and inseparable segments, the new issues (primary market) and the stock (secondary market). The primary market provides the channel for sale of new securities while the secondary market deals in securities previously issued. An important early event in the development of the stock market in India was the formation of the Native Share and Stock Brokers’ Association at Bombay in 1875, the precursor of the present-day Bombay Stock Exchange. This was followed by the formation of associations /exchanges in Ahmedabad (1894), Calcutta (1908), and Madras (1937). IN addition, a large number of ephemeral exchanges emerged mainly in buoyant periods to recede into oblivion during depressing times subsequently.

While the recognized stock exchanges have been accorded a privileged position, they are subject to government supervision and control. The rules of recognized stock exchanges relating to the managerial powers of the governing body, admission, suspension, expulsion, and re-admission of its members, appointment of authorized representatives and clerks, so on and so forth have to be approved by the government. These rules can be amended, varied or rescinded only with the prior approval of the government. The Securities Contracts (Regulation) Act vests the government with the power to make inquiries into the affairs of a recognized stock exchange and its business, withdraw the recognition the task of regulating the stock exchange to the Securities Exchanges Board of India.

[...] A stock broker plays a very important role in the secondary market helping both the seller and the buyer of the securities to enter into a transaction. The buyer and seller may be either a broker or a client. The transaction entered cannot be annulled except in the case of fraud, willful misrepresentation or upon prima-facie evidence of a material mistake in the transaction, in the judgment of the existing authorities. If a member of the stock exchange (broker) has orders to buy and to sell the same kind of securities, he may complete the transaction between his clients concerned. [...]

[...] Sharekhan needs to fill up these gaps, which are traditionally identified by Berry, Zeith and Parshuraman to improve the quality of the services offered by a company PRODUCTION TO DERIVATIVES 7.1 Introduction to derivatives The emergence of the market for derivative products, most notably forwards, futures and options, can be traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices. By their very nature, the financial markets are marked by a very high degree of volatility. [...]

[...] Otherwise one has to make fund transfer or withdraw by cheque Features of Speed Trade Instant order Execution & Confirmation Single screen trading terminal Real-time streaming quotes, tic-by-tic charts Market summary (most traded scrip, highest value and lots of other relevant statistics) Hot keys similar to a brokers terminal Alerts and reminders Back-up facility to place trades on Direct Phone lines Single screen interface for cash and derivatives 5.4 Charges of Different companies for online A/C Parameters Opening Fee Brokerage Interface Trading Demate Delivery Square Bank Associated A/C A/c Off IDBI, City Bank ,UTI,OBC,HDFC, City Bank Bank Bank 5.5 OTHER SERVICES DIAL-N-TRADE Free with your Sharekhan Classic Account, the Dial-n-Trade service enables you to place orders for buying and selling shares through your telephone. [...]