Basics of Share Market

In India there are two stock exchange markets i.e. Bombay Stock Exchange and National Stock Exchange.

1.Bombay Stock Exchange (BSE)

• 3000+ Companies Listed
• Index is known as SENSEX
• Index is calculated on “BSE30”
• “BSE 30” means Top 30Company under BSE
• Founded in 1980
• Example: Reliance Industries Ltd., Oil and Natural Gas Corporation Ltd., etc.
• Timing : Monday to Friday : 9:15 to 3:30

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2.National Stock Exchange (NSE)

• 5000+ Companies Listed
• Index is Known as NIFTY
• Index is calculated on “NSE 50”
• “NSE 50” means Top 50 Company under NSE
• Founded  in 1996
• Bharat Petroleum Corporation, Oil and Natural Gas Corporation Ltd.,etc.
• Timing : Monday to Friday : 9:15 to 3:30

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Role of SEBI

 Security Exchange Board of India (SEBI) handles the securities and Commodity markets decisions owned by the Government of India. It was established in 12 April 1988.

• Power to regulate stock exchange.
• Power to control stock exchange.
• Power to declare applicability of section 17 of the securities contract (Regulation) Act 1956, in any state or area, to grant licenses to dealers in the securities.
• Power to direct enquiries to be made in relation to affairs of stock exchange.
• Power to compel listing of securities by public companies.
• SEBI fixed the time of trading 9:15 am to 3:30pm, Monday to Friday in stock market.
• To stop fraud in Capital Market.

Functions of SEBI:

• Setting Rule for stock exchange.
• Taking care of Investor.
• Audit to companies if fraud found.
• Observe trader, broker and sub broker.
• Observe movement of company.

What is DEMAT ACCOUNT?

Demat Account is an Account to Hold/ Store the shares of company in Digital Format. One account can hold various investments like shares, commodities, mutual funds in digital format.

Types of Demat Account:

Regular Demat Account:

• Single: Use only single holder.
• Joint: It is generally used for family member.(Sharing the Stock)

Repatriable Demat Account:

Repatriable account is useful to the Non-Resident Indians as it allows fund transfers abroad. It requires an associated NRE bank account.

Non-Repatriable Demat Account:

Non-Repatriable account, too, is for the Non-Resident Indians. However, in this case, funds cannot be trandferred abroad, and this account requires an associated NRO bank account.

Types of Brokers:

Zerodha ,  sherekhan          

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Motilal Oswal , Angle Broking,  

Upstock , Samco, eddles wise,etc.

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Bank with Broker’s:

ICICI Securities,    Axis Securities,     

            HDFC Securities, etc.

Set up for Trade:

Trading Account:

Trading Account for buying and selling of shares with any SEBI registered Broker or Sub Broker.

Demat Account:

Demat Account for hold and transfer of shares with any authorized depositary participant of NSDL/CDSL (PAN).

Saving Account:

Saving Account is for to Pay and Receive funds (Our Bank Account).

Documents’ requirements for opening DEMAT Account:

Offline & Online

• Passport size photo
• PAN Card
• Aadhar Card
• Cancel Cheque with name print on cheque / 6 Month Bank Statement.
• Email & Mobile Number( Bank Attached)