2. Intermediaries of the capital markets Merchant Bankers Registrar &Transfer Agents (R&T agents) Custodians Stock Exchange Stock Brokers
3. Merchant bankers Merchant bankers play an important role in mergers & acquisitions, private placement, corporate restructuring and so on A Merchant banker is mandated by SEBI to manage public issues and open offers and takeovers All issues should be managed by at least one merchant banker who acts as a Lead merchant Banker
4. R&T Agents-Registrar to issue The R&T agents provide services to shareholders on behalf of issuers for: Management of public issue (Registrar to Issue) Managing corporate benefits like distribution of dividends, interest on debentures, bonus shares, rights etc Share transfer services Maintaining Register of Members [ROM]
5. Custodians Custodians are appointed by institutional investors, mutual funds, banks etc for physical custody of securities, settlement services, monitoring and collection of corporate benefits and maintaining of their accounts of securities HSBC Bank, SHCIL, Citibank, Deutsche Bank, Standard Chartered Bank provide custodial services
6. Stock exchange The stock exchanges in India, under the overall supervision of the regulatory authority, the Securities and Exchange Board of India (SEBI), provide a trading platform, where buyers and sellers can meet to transact in securities
7. Role of stock exchange Provide trading platform to investors and provide liquidity Facilitate Listing of securities Register members - Stock Brokers, sub brokers Make and enforce by-laws Manage risk in securities transactions Provide indices
9. National Stock Exchange (NSE) NSE, promoted by leading financial institutions, was incorporated in 1992 as a corporate entity Trading in Equities and Debt Market commenced in 1994 It is the largest exchange in the country in terms of volume of trading It enjoys leadership position among exchanges in India
10. Bombay Stock Exchange (BSE) The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as "The Native Share and Stock Brokers Association“ It is the oldest stock exchange in Asia It has evolved over the years into its present status as the premier Stock Exchange in the country
11. Stock brokers A stock-broker is a member of the Stock Exchange Stock-brokers are the intermediaries who are allowed to trade in securities on the exchange of which they are members Brokers buy and sell on their own behalf as well as on the behalf of their clients Any person can act as a stock-broker only after registering as such with SEBI
12. Trading on BSE and NSE To provide transparency, efficiency and depth to market, BSE and NSE provide Screen Based Trading on Trading Platforms called ‘BOLT’ and ‘NEAT’ These platforms provide Trading Facility to Brokers, Sub-brokers and their clients through thousands of trading terminals spread throughout the nation
