Major Participants in the Indian Stock Market

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Part of the objective of Securities and Exchange Board of India is to hold requirements for truthful and orderly markets. In order to help gain this goal, the Securities and Exchange Board of India regulates a range of stock market participants. These encompass the following:

Stock Exchange

An inventory alternate is an organized market that brings all the investors or merchants together. It enables the sale and buy of shares through unique shoppers and sellers. Most of the trading in Indian stock market takes region on BSE and NSE. These inventory exchanges implement strict policies and guidelines that listed agencies and buying and selling individuals should follow.

Listed Companies

Also regarded as issuers, these are the businesses whose shares are traded on the stock exchange. All the listed agencies go via Initial Public Offering (IPO) and register themselves with the inventory trade after abiding through all the prescribed regulations.

Stock Brokers

Stock brokers are licensed by using the Securities and Exchange Board of India and are entitled to exchange at the inventory exchange. They act as the middlemen or dealers between the agents and the customers of stocks in the inventory market. For presenting these broking services, they obtain buying or selling fee from their clients.

Investors

Investors are additionally referred to as stockholders or shareholders. These are the people who personal the shares of businesses that are listed on the stock exchange. They are entitled to get hold of dividends and different benefits due to shareholders.

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Clearing House

Clearing Houses are entirely owned subsidiaries of Securities and Exchange Board of India. They are formed to make sure the orderly settlement of trades done on a range of inventory exchanges. Clearing Houses settle the dollars and switch shares based on day-to-day transactions between sellers and buyers.

Transfer Agents

Transfer Agents report modifications of ownership of shares. They furnish the listed agencies with a list of its protection holders. Transfer marketers are also accountable for cancelling or issuing of certificates and distribute dividends.

Settlement Banks

The settlement banks perform the characteristic of accepting the credit score of dollars for price of stocks bought with the aid of an investor or verify payment of money when due. These banks debit or credit score the investor’s account throughout agreement and additionally file balances and different statistics as may be required.

Depository

A depository refers to an organization or an organization that assists in the buying and selling of securities. This group also holds securities in digital shape or in dematerialized form. One of the fundamental functions of the depositories is to transfer the ownership of shares from one investor’s account to any other when an exchange takes place.

Thus, each inventory market participant has a specific role to play in the suitable and easy functioning of the stock market.

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Major Participants in the Indian Stock Market. (2022, September 01). Edubirdie. Retrieved April 26, 2024, from https://edubirdie.com/examples/major-participants-in-the-indian-stock-market/
“Major Participants in the Indian Stock Market.” Edubirdie, 01 Sept. 2022, edubirdie.com/examples/major-participants-in-the-indian-stock-market/
Major Participants in the Indian Stock Market. [online]. Available at: <https://edubirdie.com/examples/major-participants-in-the-indian-stock-market/> [Accessed 26 Apr. 2024].
Major Participants in the Indian Stock Market [Internet]. Edubirdie. 2022 Sept 01 [cited 2024 Apr 26]. Available from: https://edubirdie.com/examples/major-participants-in-the-indian-stock-market/
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