Welcome to the Program. Day 2 2 Program : Road Map Part 2 Part 3 Capital Market Structure ,NSE BSE, Basic Market Terminology Part 2 Part 2 Part 1 NSDL,CDSL,Demat Account Capital Market Structure GOI RBI AMFI IRDA Banks Mutual Funds Insurance SEBI BSE NSE Bombay Stock Exch / Sensex @ Fort National Stock Exchange / Nifty @ BKC Capital Market Structure... BSE NSE 108+yrs Old:6500+ Listed Cos. Base of 30 Stocks across Sector Base Value of 100 Points 10 yrs Old:3500+ Listed Cos. Base of 50 Stocks across Sector Base Value of 1000 Points Depository CDSL:Central Depository Securities Ltd NSDL:National Securities Depository Ltd Depository Participants SHAREKHAN BANKS Demat Holders Demat Account What is a Demat Account ? Demat refers to a Dematerialized account. Demat Account is must for trading and investing in Stock Market. You need to open a Demat account if you want to Buy or Sell stocks. It is just like a Bank account where actual money is replaced by shares. Just like a Bank passbook or statement, the DP(Sharekhan) will provide you with periodic statements of holdings and transactions. Demat Account Stock Market Terminology Stock Broker A critical link between Buyer & Seller. Buyer Who intends to Buy Shares. Seller Who intends to Sell Shares. Margin Amount required to deal in Stock Market. Exposure Credit provided by the Broker to it Client to Buy Stocks,subject to clearing of pending due within Settlement Period. Settlement Settlement is just the process whereby payment is made by all those who have made purchases and shares are delivered by all those who have made sales. Settlement Cycle The period within which the settlement is made -- the period within which buyers receive their shares and sellers receive their money --is called a Settlement cycle. T+2 Settlement.... T+2 Settlement At present, trades are settled on a T+2 basis,ie on the second working day. For arriving at the settlement day, all intervening holidays Bank holidays,National Stock Exchange holidays,Saturdays and Sundays are excluded. T+2 means that trades are settled two working days after the day the trade takes place. Trades taking place on Monday are settled on Wednesday. Trades taking place on Tuesday are settled on Thursday. Trades taking place on Wednesday are settled on Friday. Trades taking place on Thursday are settled on Monday. Trades taking place on Friday are settled on Tuesday. T+2 Settlement.... Schedule of T+2 Trade Day = T T+1 By 11:00 am-Confirmation of all trades. By1:30 pmProcessing and downloading of files to Brokers. T+2 By 11:00 am-Pay-in of securities and funds. By 1:30 pm-Pay-out of securities and funds Putting it simply, if you sell shares, the money is received by your broker on the third day. If you buy shares, your broker gets them on the third day. Usually, you'll be able to get your money or your stocks from your broker on the day after he receives it. OFFLINE TRADING ACCOUNT They either operate through their own branch network or through a franchisee of sub-brokers. ONLINE TRADING ACCOUNT These are modern times and every aspect of your online Trading is made paperless. You can buy or sell shares at the click of the mouse. Thank You