The Equities section provides with an insight into the equities segment of NSE &
BSE and also provides real-time quotes and statistics of the equities market. In-depth
information regarding listing of securities, trading systems & processes, clearing
and settlement, risk management, trading statistics etc are available.
Sharewealth is the registered member of NSE, giving equities at the most importance.
What are the various types of financial markets?
The financial markets can broadly be divided into money and capital market.
Money market is a market for debt securities that pay off in the short term usually
less than one year, for example the market for 90-days treasury bills. This market
encompasses the trading and issuance of short term non equity debt instruments including
treasury bills, commercial papers, bankers acceptance, certificates of deposits,
Capital market is a market for long-term debt and equity shares. In this market,
the capital funds comprising of both equity and debt are issued and traded. This
also includes private placement sources of debt and equity as well as organized
markets like stock exchanges. Capital market can be further divided into primary
and secondary markets.
What is meant by the Secondary Market?
Secondary Market refers to a market where securities are traded after being initially
offered to the public in the primary market and/or listed on the Stock Exchange.
Majority of the trading is done in the secondary market. Secondary market comprises
of equity markets and the debt markets.
For the general investor, the secondary market provides an efficient platform for
trading of his securities. For the management of the company, Secondary equity markets
serve as a monitoring and control conduit - by facilitating value-enhancing control
activities, enabling implementation of incentive-based management contracts, and
aggregating information (via price discovery) that guides management decisions.
What is the difference between the primary market and the secondary
In the primary market, securities are offered to public for subscription for the
purpose of raising capital or fund. Secondary market is an equity trading avenue
in which already existing/pre- issued securities are traded amongst investors. Secondary
market could be either auction or dealer market. While stock exchange is the part
of an auction market, Over-the-Counter (OTC) is a part of the dealer market.
Who is a broker?
A broker is a member of a recognized stock exchange, who is permitted to do trades
on the screen-based trading system of different stock exchanges. He is enrolled
as a member with the concerned exchange and is registered with SEBI.
Who is a sub broker?
A sub broker is a person who is registered with SEBI as such and is affiliated to
a member of a recognized stock exchange.
What is SEBI and what is its role?
The SEBI is the regulatory authority established under Section 3 of SEBI Act 1992
to protect the interests of the investors in securities and to promote the development
of, and to regulate, the securities market and for matters connected therewith and
What is the pay-in day and pay- out day?
Pay in day is the day when the brokers shall make payment or delivery of securities
to the exchange. Pay out day is the day when the exchange makes payment or delivery
of securities to the broker. Settlement cycle is on T+2 rolling settlement basis
w.e.f. April 01, 2003. The exchanges have to ensure that the pay out of funds and
securities to the clients is done by the broker within 24 hours of the payout. The
Exchanges will have to issue press release immediately after pay out.
What is an Auction?
The Exchange purchases the requisite quantity in the Auction Market and gives them
to the buying trading member. The shortages are met through auction process and
the difference in price indicated in contract note and price received through auction
is paid by member to the Exchange, which is then liable to be recovered from the
What is Arbitration?
Arbitration is an alternative dispute resolution mechanism provided by a stock exchange
for resolving disputes between the trading members and their clients in respect
of trades done on the exchange.