, PI c
E. Gordon, M.Com., M.Phil.
Former Professor & Head, Dept. of Commerce,
A.N.J.A. College, Srivakasi
Dr. K. Natarajan, M.Com., M.Phil., Ph.D.
Principal
S. V.N. College, Madutai
-
tal
GJiimalaya <;pgblishingGHouse
MUMBAI • NEW DELHI • NAGPUR • BANGAl.ORE • HYDERABAD • CHENNAI • PUNE • lUCKNOW' AHMEDABAD • ERNAKULAM
, © Author
No part of thiS book shall be reproduced,.reprip.ted or translated for any purpose
whatsoever without permission of ,the publisher in writing.
REVISED EDITION, 2010
Published by Mrs. Meena Pandey
forHIMALA VA PUBLISHING HOUSE PVT. LTD.,
"Ramdoof', Dr. Bhalerao Marg, Girgaon, Mumbai - 400 004
Phones: 2386 01 70/2386 38 63, Fax: 022-2387 71 78
Email:
Website: www.himpub.com
Branch Offices:
New De/hi "PoojaApartments", 4-B, Murari Lal Street. Ansari Road. Darya Ganj,
New Delhi -110 002.
Phones: 23270392, 23278631, 30180302103/04/05/06,
Fax: ()11-23256286,
Nagpur Kundanlal Chandak Industrial Estate, Ghat Road,
Nagpur - 440 018. Phones: 2738731, 3296733
Telefax: 0712-27212'15 '
Banga/ore No. 16/1 (Old 12/1), 1st Floor, Next t~Hotel Highlands,
Madhava Nagar, Race Course Road, Barigalore - 560 001.
Phones: 22281541, 22385461, Telefax: 080-22286611
Hyderabad No. 2-2-1 167/2H, 1st-Floor, Near Railway Bridge, Tilak Nagar,
Main Road, Hyderabad - 500 044. Phone: 65501745,
Telefax: 040-27560041
Chennai No.2, Ramakrishna Street, North Usman Road, T. Nagar,
Chennai - 600 017. Phones: 044-28144004128144005
Pune First Floor, "Laksha" Apartment, No. 527, Mehunpura,
Shaniwar Peth, (Near Prabhat Theatre), Pune - 411030.
Phones: 020-24496323/24496333
Lucknow C-43, Sector - C, Ali Gunj, Lucknow - 226 024.
Phone: 0522-4047594
Ahmedabad: 114, "SHIL" 1st Floor, Opp. Madhu Sudan House, C.G. Road,
Navrang Pura, Ahmedabad - 380 009.
Phones: 09327324149,0931467413
Ernaku/am 39/104 A, Lakshmi Apartment, Karikkamuri Cross Rd.,
Ernakulam, Cochin - 622011 .
Phones: 0484-2378012, 2378016, Mob- 09344199799
DTP by Sri Slddhl Softtek
Bangalore
Printed by Gaetanjali PFe~ Pv,t. "'td.
Nagpur
, CONTENTS
1. THE FINANCIAL SYSTEM IN INDIA 3-25
Functions of the Financial System - Financial ConceJB'ts -
Financial Assets - Financial Intermediaries - Financial Markets
- Classification - Capital Market -Industrial securities Market
- Government Securities Market - Long Term Loans Market -
Mortgages Market - Financial Guarantees Market - Money Market
- Call Money Market - Treasury Bills Market - Short Term
Loan Market - Foreign Exchange Market - New Financial
Products and Services -Innovative Financial Instruments.
2. NEW ISSUES MARKET 26-53
Meaning - Stock Exchange - Distinctions between New
Issue Market and Stock Exchange - Relationship between
New Issues Market and Stock Exchange - Functions of New
Issue Market - Methods of floating New Issues - General
Guidelines for New Issue - Principal Steps of a public issue
- Private placement - Offer for Sale-SEBI guidelines for IPO
-Instruments of Issue - Players in the New Issue Market-
Recent Trends - Advantages and Disadvantages of Primary
Market - Suggestions.
3. SECONDARY MARKET 54-113
Introduction - Control Ove~econdary Market - Recognition
of Stock Exchanges - Services of Stock Exchanges - Organisation
of Stock Exchanges in India - Traditional Structure of Stock
Exchange - Listing of Securities - Group A, Group B, Group C
Shares - Advantages of Listing - Drawbacks - Listing Procedure
- Criteria for Listing - Listing Obligations - New Listing
Obligations - Registration of Stock Brokers - Registration
Procedure - Code of Conduct for Stock Brokers - Functions of
Brokers - Kinds of Brokers and their Assistants - Method of
Trading in a Stock Exchange - On-Line Trading - Advantages
of On-line Trading - NSE-NEAT System - Carryover or Badia
Transactions - Genuine Trading Vs Speculative Trading - Kinds
of Speculator.s - Speculative Transactions - Stock Indices -
Defects of Indian Capital Market - Recent Developments.
4. OTCEI AND NSE 114-127
Features of OTCEI - Promoters - Participants - Trading in
OTCEI Exchange - Listing on OTC Exchange - Advantages
- Operational Highlights - NSE - Objectives - Features of
NSE - Stock Exchange Vs NSE Vs OTCEI.
E. Gordon, M.Com., M.Phil.
Former Professor & Head, Dept. of Commerce,
A.N.J.A. College, Srivakasi
Dr. K. Natarajan, M.Com., M.Phil., Ph.D.
Principal
S. V.N. College, Madutai
-
tal
GJiimalaya <;pgblishingGHouse
MUMBAI • NEW DELHI • NAGPUR • BANGAl.ORE • HYDERABAD • CHENNAI • PUNE • lUCKNOW' AHMEDABAD • ERNAKULAM
, © Author
No part of thiS book shall be reproduced,.reprip.ted or translated for any purpose
whatsoever without permission of ,the publisher in writing.
REVISED EDITION, 2010
Published by Mrs. Meena Pandey
forHIMALA VA PUBLISHING HOUSE PVT. LTD.,
"Ramdoof', Dr. Bhalerao Marg, Girgaon, Mumbai - 400 004
Phones: 2386 01 70/2386 38 63, Fax: 022-2387 71 78
Email:
Website: www.himpub.com
Branch Offices:
New De/hi "PoojaApartments", 4-B, Murari Lal Street. Ansari Road. Darya Ganj,
New Delhi -110 002.
Phones: 23270392, 23278631, 30180302103/04/05/06,
Fax: ()11-23256286,
Nagpur Kundanlal Chandak Industrial Estate, Ghat Road,
Nagpur - 440 018. Phones: 2738731, 3296733
Telefax: 0712-27212'15 '
Banga/ore No. 16/1 (Old 12/1), 1st Floor, Next t~Hotel Highlands,
Madhava Nagar, Race Course Road, Barigalore - 560 001.
Phones: 22281541, 22385461, Telefax: 080-22286611
Hyderabad No. 2-2-1 167/2H, 1st-Floor, Near Railway Bridge, Tilak Nagar,
Main Road, Hyderabad - 500 044. Phone: 65501745,
Telefax: 040-27560041
Chennai No.2, Ramakrishna Street, North Usman Road, T. Nagar,
Chennai - 600 017. Phones: 044-28144004128144005
Pune First Floor, "Laksha" Apartment, No. 527, Mehunpura,
Shaniwar Peth, (Near Prabhat Theatre), Pune - 411030.
Phones: 020-24496323/24496333
Lucknow C-43, Sector - C, Ali Gunj, Lucknow - 226 024.
Phone: 0522-4047594
Ahmedabad: 114, "SHIL" 1st Floor, Opp. Madhu Sudan House, C.G. Road,
Navrang Pura, Ahmedabad - 380 009.
Phones: 09327324149,0931467413
Ernaku/am 39/104 A, Lakshmi Apartment, Karikkamuri Cross Rd.,
Ernakulam, Cochin - 622011 .
Phones: 0484-2378012, 2378016, Mob- 09344199799
DTP by Sri Slddhl Softtek
Bangalore
Printed by Gaetanjali PFe~ Pv,t. "'td.
Nagpur
, CONTENTS
1. THE FINANCIAL SYSTEM IN INDIA 3-25
Functions of the Financial System - Financial ConceJB'ts -
Financial Assets - Financial Intermediaries - Financial Markets
- Classification - Capital Market -Industrial securities Market
- Government Securities Market - Long Term Loans Market -
Mortgages Market - Financial Guarantees Market - Money Market
- Call Money Market - Treasury Bills Market - Short Term
Loan Market - Foreign Exchange Market - New Financial
Products and Services -Innovative Financial Instruments.
2. NEW ISSUES MARKET 26-53
Meaning - Stock Exchange - Distinctions between New
Issue Market and Stock Exchange - Relationship between
New Issues Market and Stock Exchange - Functions of New
Issue Market - Methods of floating New Issues - General
Guidelines for New Issue - Principal Steps of a public issue
- Private placement - Offer for Sale-SEBI guidelines for IPO
-Instruments of Issue - Players in the New Issue Market-
Recent Trends - Advantages and Disadvantages of Primary
Market - Suggestions.
3. SECONDARY MARKET 54-113
Introduction - Control Ove~econdary Market - Recognition
of Stock Exchanges - Services of Stock Exchanges - Organisation
of Stock Exchanges in India - Traditional Structure of Stock
Exchange - Listing of Securities - Group A, Group B, Group C
Shares - Advantages of Listing - Drawbacks - Listing Procedure
- Criteria for Listing - Listing Obligations - New Listing
Obligations - Registration of Stock Brokers - Registration
Procedure - Code of Conduct for Stock Brokers - Functions of
Brokers - Kinds of Brokers and their Assistants - Method of
Trading in a Stock Exchange - On-Line Trading - Advantages
of On-line Trading - NSE-NEAT System - Carryover or Badia
Transactions - Genuine Trading Vs Speculative Trading - Kinds
of Speculator.s - Speculative Transactions - Stock Indices -
Defects of Indian Capital Market - Recent Developments.
4. OTCEI AND NSE 114-127
Features of OTCEI - Promoters - Participants - Trading in
OTCEI Exchange - Listing on OTC Exchange - Advantages
- Operational Highlights - NSE - Objectives - Features of
NSE - Stock Exchange Vs NSE Vs OTCEI.
