Indian Share Market Flow Chart-of Participants

Indian Share Market Participants

By Anand Lagad   June 6, 2020 Share Marketing

The organizations and people who are interacting with share market are considered as the Indian share market participants.

INDIAN SHARE MARKET PARTICIPANTS:

1.SEBI

  • SEBI is the very first and very important in Indian Share Market Participants.
  • SEBI Stands for Securities and Exchange Board of India.
  • It was established in 1988 and powers through the ‘SEBI Act 1992’.
  • SEBI is the regulator of the share market in India owned by the Government of India.
  • In simple words, it is the government agency which checks whether every participant of the share market is acting in a legal way or not.
  • It protects the interest of investors.
  • All share market participants have to work with respect to the laws and guidelines provided by the SEBI Act 1992.
  • 2. Issuer

  • The company that sells the stocks/shares is called as Issuer.
  • 3. Investor?

  • In the share market, the investor is the person who invests money in the company’s shares with the expectation of future financial returns or gains an advantage.
  • 4.Stock Exchange

  • It is the platform for investors to buy and sell shares/ securities with each other.
  • Stock Markets in India began way back in 1875.
  • BSE (Bombay Stock Exchange)

  • The BSE (Bombay Stock Exchange – मुंबई रोखे बाजार ) is the most established stock exchange in India.
  • The BSE was established in 1875.
  • NSE (National Stock Exchange)

  • The NSE was established in 1992 as the first de-materialized electronic exchange in the country.
  • NSE was the first exchange in the country to provide a modern, fully automated screen-based electronic trading system which offered an easy trading facility to the investors.
  • NSE is the biggest stock exchange in India.
  • 5. Brokers

  • In simple words, a broker means the person who buys/sells things on behalf of others.
  • In the Indian share market, brokers are the mediator between the stock exchange and the investor.
  • Brokers provide trading account and de-mat account to its customers for trading.
  • 6. Clearing House

  • A clearing house is a financial institution formed to facilitate the clearance of shares.
  • The clearing house clear and settle trades in shares traded on the stock exchanges.
  • I. Indian Clearing Corporation Limited (ICCL)

  • Provides trade execution and clearance services to BSE
  • II. National Securities Clearing Corporation Limited (NSCCL)

  • NSCCL carries out the clearing and settlement of the trades executed in the Shares for NSE.
  • 7. Depositories

  • Depository means where something is deposited for storage or safeguarding.
  • In the share market, depositories are the institutions which hold the securities like shares, mutual funds, bonds in the electronic format.
  • These depositories transform the physical shares into electronic format.
  • Depositories are mainly responsible and accountable for the safe-keeping of your securities and keep a record of all your trades.
  • SEBI is responsible for the registration, regulation, and inspection of the depository.
  • Types Of Depositories:

    I. National Securities Depository Limited (NSDL)

  • Holds all trade records and shares for NSE.
  • II. Central Depository Services (India) Limited (CDSL)

  • Holds all trade records and shares for BSE.

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