Bearish falling share prices

Bullish - Increasing share prices

Hawkish tightening policy – higher interest ratesDovish -accommodative policy- lower interest rates

World's oldest exchange -Amsterdam Stock exchange (1602) Netherlands
Asia's oldest exchange - Bombay Stock Exchange (1875)
India’s Oldest BSE->Ahmedabad->Kolkata->NSE
Sensex is sensitive index which is weighted average of Free Float Market Capitalization of 30 companies decided by Index Cell
BSE Sensex = FFMC (Present year/Base year* 100)

Penny stocks- share value is less than 10/- and very low market capitalization. Used to launder black money

Demat account

Dematerialized account
In India, shares and securities are held electronically in a dematerialized (or "Demat") account, instead of the investor taking physical possession of certificates
Each shareholder has a Demat account similar to bank account wherein Demat account, securities transactions are done and in bank account, money transactions are done
Electronic securities and share are stored in depositories and there are two depositories in India - National Security Depository Limited NSDL and Central Security Depository Limited CSDL
Hence there can be two types of Demat account- one with NSDL and other with CSDL
Depository Participant (DP), who as an agent of the depository, offers depository services to investors.

In the depository system, securities are held in depository accounts, which are similar to holding funds in bank accounts. Transfer of ownership of securities is done through simple account transfers. This method does away with all the risks and hassles normally associated with paperwork.

National Security Depository Limited	Central Security Depository Limited
First electronic securities depository in India with national coverage	CDSL is the second largest depository in India, which facilitated book entry transfer of securities
Promoters: IDBI, UTI, NSE	Promoters: BOB, BOI, SBI, HDFC and BSE
Market: NSE	Market: BSE

Acts and Regulations

SEBI Act 1992

Securities Contracts (Regulation) Act, 1956

Depositories Act 1996

Companies Act 1956

Prevention of Money Laundering Act, 2002

Securities and Exchange Board of India SEBI

Statutory, SEBI Act 1992
Quasi-legislative, Quasi-judicial and Quasi-executive
Enforce: SEBI Act 1992, Depositories Act 1996
In 1988 as a non-statutory body for regulating the securities markets, while it became an autonomous body in 1992.
SEBI Act, 1992 to:

protect interest of investors
promote development of securities market
regulate the securities market

SEBI has powers

to investigate and examine companies
to visit their premises
to inspect records and personnel and
to impose penalties that are commensurate with any misconduct.

SEBI has to be responsive to the needs of three groups, which constitute the market:

the issuers of securities
the investors
the market intermediaries

SEBI regulates both securities and commodities markets of India
In Jan 2018, SEBI in principle OKAYED the proposal of having an universal exchange i.e. single exchange can offer equity, commodity , debt and currency products
SEBI introduced Graded Surveillance Measures (GSM) to enhance market integrity and safeguard interest of investors.
Forward Market Commission merged with SEBI in 2015
SEBI (Venture Capital Funds) Regulations, 1996
SEBI (Foreign Institutional Investor) Regulations 1995

Exchanges

Stock Exchanges
National Stock Exchange of India Ltd (NSE)
Bombay Stock Exchange (BSE)
Commodity Exchanges
National Commodity and Derivative Exchange	Guar seed - India's first Agri commodity Option Negotiable Warehouse Receipt
Indian Commodity Exchange ICEX	Reliance Capital World’s First diamo futures exchange
Multi Commodity Exchange MCX	Financial Technologies (I) Ltd, SBI, Fidelity International, NSE, NABARD, HDFC Bk, SBI Life Insurance Co., UBI, Canara Bk, BOI, BOB and Corporation Bank India's first Commodity Option "Gold Options" ; Carbon Credits bullion, base metals, energy and agro commodities.
National Multi Commodity Exchange of India Limited
Universal Commodity Exchange Ltd
Energy Exchanges
Indian Energy Exchange	ESCert Energy Saving Certificates traded here
Power Exchange India	ESCert Energy Saving Certificates traded here

India International Exchange INX	Wholly owned by BSE Indian Railways Finance Corporation's (IRFC) first green bond in Global Securities Market Asian Development Bank ADB's Masala Bonds are dual listed on both Luxembourg exchange and India INX
Social Stock Exchange SSE

Social Stock Exchange SSE

It is an electronic fundraising platform that allows investors to buy shares in a social enterprise that has been vetted by the exchange
Social enterprise is a revenue-generating business whose primary objective is to achieve a social objective, for example, providing healthcare or clean energy

Regulated by SEBI

London Stock Exchange

Masala Bonds
NHAI Masala Bonds
Masala Green Bonds
Rural Electrification Corporation's first Green Bond (Climate Bonds Initiative certified)

GIFT Gujarat International Finance Tech-City

GIFT city is the first IFSC (International financial services centre) and to be set up in a SEZ.
state-of-the-art connectivity, infrastructure and transportation with sustainable growth.
From offshore banking to currency convertibility, re-insurance, commodity and securities trading and capital raising all kinds of financial activity can take place inside this IFSC.

Indian Commodity Exchange ICEX

Backed by Reliance Capital
World’s First diamond futures exchange
ICEX offers trading in diamonds of two sizes: 50 cents and 1 carat (1 carat equals 100 cents). An investor can buy diamonds through the systematic investment plan (SIP) route by buying as low as 1 cent in one trade, for as little as ₹3,200, and continue to buy further. One can seek physical delivery of the diamond after accumulating at least 50 cents.

Multi Commodity Exchange MCX

Carbon credits are traded in MCX of India
Based in Mumbai
Promoted by Financial Technologies (I) Ltd, SBI, Fidelity International, NSE, NABARD, HDFC Bk, SBI Life Insurance Co., Union Bank of India, Canara Bk, Bank of India, Bank of Baroda and Corporation Bank.
Regulated by SEBI
Four types of commodities are traded on the MCX – bullion, base metals, energy and agro commoditi s.

Oct 2017, Gold Options on MCX

Forward Market Commission

Note: FMC has been merged with SEBI in 2015

In the first ever merger of two regulators, commodities regulatory body Forward Markets Commission (FMC) merged with the capital markets watchdog SEBI.
Post-merger, Commodity futures market in India is now supervised by SEBI, making for an integrated regulation of both the securities and commodities markets in India.

FMC has been regulating commodities markets since 1953, but lack of powers has led to wild fluctuations and alleged irregularities remaining untamed in this market segment

Data Lake project

By SEBI
For improving surveillance to monitor and analyse social media posts to keep a tab on possible market manipulations
A data lake is a centralized repository that allows anyone to store all structured and unstructured data at any scale

Misc.

Red Herring Prospectus

Red herring is a preliminary prospectus filed by a company with Securities and Exchange Board of India (SEBI) usually in connection with the company's initial public offering.
A red herring prospectus contains most of the information pertaining to the company's operations and prospects but does not include key details of the issue, such as its price and the number of shares offered.

Dutch Tulip Bulb Bubble

Occurred in Holland during the early 1600s
when speculation drove the value of tulip bulbs to extremes.
At the height of the market, the rarest tulip bulbs traded for as much as six times the average person's annual salary

Dutch learned that tulips could be grown from seeds or buds that grew on the mother bulb

From seeds, a bulb grown from it would take 7-12 years to flower
But a bulb could itself flower in the very next year
Hence the demand for these types of broken bulbs

Bubble bursts

Dutch wealthy people spent lot of money buying these broken bulbs
But they only produced flowers for a week
Hence the bubble bursts

South Sea Bubble

Largest stock scams of all time
When the shares of the U.K.-based South Sea Company appreciated enormously based on rumor, speculation and false claims before plummeting and eventually becoming worthless.

Company's perceived monopoly to trade with Mexico and certain countries in South America.

Algorithm Trading/Algo Trading/Black Box Trading

System of trading which facilitates transaction decision making in the financial markets using advanced mathematical tools.
In this type of a system, the need for a human trader's intervention is minimized and thus the decision making is very quick. This enables the system to take advantage of any profit making opportunities arising in the market much before a human trader can even spot them.
As the large institutional investors deal in a large amount of shares, they are the ones who make a large use of algorithmic trading.

Securities Market