India Stock and Investment

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The India stock and investment market is mainly divided into 2 parts, namely the capital market and the money market. The stock market is an important part of the capital market in the country through which one can carry out the transaction of capital. It is usually done through the means of direct financing through the use of security and investment. The investment market can further be sub divided into the primary and secondary market.

Features of the Primary market

In case of the primary market, the listed shares are traded for the first time which is transferred to the investors from the listed company. In case of the primary market, the stock issuers and the listed companies make use of the capital by offering the stocks to the investors. The investors, in turn, buy the shares and supply the needed capital. In simple terms, the primary market is a type of platform where new securities and stocks are dealt with.

The primary market can be an ideal source of funding for various business enterprises and companies, public sector units and government organizations. All these organizations can make the funding by selling new bonds, stocks and other forms of securities. The buying and selling of the securities are done through dealers. The processes through which the new securities are sold to the investors are referred to as underwriting. On the other hand, if any new stock is issued to the investor, it is known as initial public offering (IPO). In most cases, the dealers who carry out the process get a sum of money in the form of a commission. The terms and conditions of the commission are based on the price offering of the securities.

Features of secondary market

An important part of the India stock and investment market is the secondary market. In simple terms, it is also known as the stock market. Mainly it is a type of continuous market which offers a very good platform for trading and business of securities and stocks. In most cases, the trading is done through a licensed broker, stock and securities units, security firms and other financial institutions. The trading has to be done according to the terms and conditions that are set by the specific stock exchanges.

There are two main stock exchanges in India which operate the bulk of the share and security trading. They are:

Bombay Stock Exchange:
The Bombay Stock Exchange (BSE), also known as the Stock Exchange, Mumbai is the oldest stock exchange in Asia and is credited with the operation of the most number of listed companies in the world. Incepted in the year 1875, it has a listing of more than 4,700 companies. It is located in the Dalal Street area of the city of Mumbai, the financial capital of India.

The BSE is owned by the Bombay Stock Exchange Limited and has a market cap amount of around US$ 1.1 trillion while the volume of the stock exchange is around US$ 980 billion. The currency type which is dealt in the BSE is Indian National Rupees (INR). The index on which the stock exchange operates is the BSE SENSEX, also referred to as the SENSitive indEX. The index is popularly known as BSE 30.

To cater to the customers, the Bombay Stock Exchange offers a number of facilities and services. They are:
  • BSE Investor Services
  • BSE On-line Trading (BOLT) process
  • On-Line Surveillance System (BOSS)
  •, BSE online trading site
  • BSE Training Institute for various certification programs
The BSE has also been awarded a number of prestigious awards for its service towards the economy of India. They are:
  • The ICAI financial reporting award
  • The Asia - Pacific HRM employer branding awards
  • The Golden Peacock Global Corporate Social Responsibility (CSR) Award
National Stock Exchange:
The National Stock Exchange of India, also referred to as NSE is also located in Mumbai. It is the largest exchange in India in term of the number of trades and the daily turnover. The capitalization amount of NSE amounts to around Rs 47, 01,923 crore. According to the economic experts, it is expected to become the largest stock by the end of the year 2009. The key index of the NSE is known as S&P CNX Nifty and is based on INR. The NSE has around 2799 VSAT terminals which coved around 1500 cities.

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