preamble:
The stock market is the backbone of a countries industrial economy.
with out a healthy stock market the economy cannot grow.
here we can see how the stock market is controlled and regulated.
REGULATION:
The stock market's regulatory body is SECURITIES EXCHANGE BOARD OF INDIA(SEBI).sebi plays a vital role in the indian stockmarket. basically the regulation of the the stock market can be compared with that of banking industry.
Banking industry:
The banks are controlled by RBI.
RBI>1) NATIONALIZED BANK 2)SCHEDULED BANK.>>THEIR BRANCHES>>> CUSTOMERS IN EACH BRANCH....
STOCK MARKET TYPES:
The market are of two types viz cash market and derivative market. the cash market is nothing but buying the shares by paying the full amount.the pushaser becomes the benificial owner of that share purchsed. He is eligible for dividend, bonus ,rights , votingpower etc....
Derivtive market introduced in India in the year 2000. actually derivative means value derived from an underlying asset. Widely derivative market is used as a hedging tool.
Derivative market has its time limit usually called as settlement date. In India the settlement for derivative market is last thursday of every month.
to be continued............
