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BROKER – A broker is an agent who is registered with SEBI, who represents clients to Buy/Sell stocks & there securities
EXCHANGE – Exchange are varied & highly important in the development of economy of the country. They measure & control the growth of a country. Stock exchange have very important role as follows
1. Raising capital of Business
2. Mobilising savings for Investment
3. Facilitating company growth
4. Profit sharing
5. Corporate Governance
6. Creating Investment opportunities for small investors
7. Government capital raising for development projects
8. Barometer of the Company
SEBI – Securities and Exchange Board of India, there prime objective is to protecting the interest of investors in securities, Regulating the securities market
1. Functions & Power of SEBI
– Regulation of business in the stock exchanges
– Registration & Regulation of the working of intermediarits & mutual funds, venture capital funds & collective investment scheme
– Prohibiting fraudulent & unfair trade practices & insider trading in securities market
– Investor education & the training of intermediaries
– Inspection & Inquiries
– Regulating substantial acquisition of shares to take overs
– Performing such functionshort & exercising such powers under the provisions of the securities contract
– Levying Fees or other charges carrying out the purposes of this section
2. Developmental Functions
– Promoting investors education & training of intermediaries
– Conducting research & publishing informations useful to all market participants
– Promotion of fair practices & self regulatory organisations
3. Powers of SEBI
– Power to call periodical returns from recognised stock exchanges
– Power to compel listing of Securities by public companies
– Power to Levying Fees or other charges for carrying out the purposes of regulation
– Power to call information or explanation from recognised stock exchanges
– Power to control & regulate stock exchanges
– Power to direct enquiries to be made in relation to affairsee of stock exchanges or their members
BANK ROLE – Investment bankers who actually on behalf of investors, which they conduct market research in the firm of legal & market analysis before the investment takes off.
– most importantly they determine the best timing of the ipo, they also care of selling debt of the companies to investors
GOVERNMENT – SEBI
Stock Trading – <span style=”line-height: 1.5;”>Orders are placed through the Trading Account registered either directly with the Exchange (in which case you will act as your stock broker) or with a brokerage firm (in which case orders are directed to the Exchange through the broker) using BOID (Beneficial Owner Identification number) or DEMAT (Dematerialized Account) number in every trade.</span>
Exchange – A place where the trading takes place. (NSE,BSE)
Broker – A broker acts as the middleman between clients and Exchange
SEBI – A regulatory body that protects the interests of investors and ensures transparency in the market
Govt – No direct role in stock trading but their plans or schemes can affect the entire market.
Bank – Aids in opening DEMAT account. Sometimes acts as a Broker.
Stock trading takes place in the stock market through secured online medium.
The role of Broker: A stock broker provides you a trading account which is used for all market-related transactions buying and selling of shares.
The role of Exchange: This is the common place of systemized trading.
The role of SEBI: SEBI is the regulator of the securities market in India. They set the legal framework and regulate all entities interested in operating in the market.
Role of Bank: They help in facilitating the fund transfer from your bank account to your trading account. You may be interested to note that for a given trading account only one bank account can be interlinked.
Stock trading takes place online in a common platform where buyers and sellers meet bse or nse in India
Broker- is intermediate between trader and exchange
Exchange- is a common platform where buyers and sellers trade
SEBI-securities and exchange board of India who is a regulator
Govt- has no direct role but there policies can impact stock trading
Bank-has no role in stock trading but can help as depositories
Stock Trading : Is done online where Buyers & sellers place their Orders.
Broker : Provides a trading account for Share market transactions.
Exchange : Where trading of Shares Buying & Selling takes place.
SEBI : Security and Exchange Board of India who is a regulator.
BANK : Transfer Funds from Bank Accounts to Trading Account (Demat Account).
Govt : No direct role in Stock Exchange but their action and policies decisions can impact an overall market.
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