1. Key Exchanges:
The two major stock exchanges in India are the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Both play a crucial role in facilitating equity trading.
2. Regulatory Bodies:
The Securities and Exchange Board of India (SEBI) is the primary regulatory authority overseeing the securities market in India. It regulates stock exchanges, brokers, and other market intermediaries.
3. Market Indices:
The benchmark indices include the BSE Sensex and the NSE Nifty, which represent the overall performance of the stock market. They comprise a basket of stocks from various sectors.
4. Market Segments:
The Indian stock market consists of two main segments – the primary market and the secondary market. The primary market involves the issuance of new securities, while the secondary market involves the buying and selling of existing securities.
5. Market Participants:
Participants in the stock market include retail investors, institutional investors, mutual funds, foreign institutional investors (FIIs), and market intermediaries like brokers and depository participants.
6. Trading Mechanism:
Equity trading in India follows a rolling settlement cycle of T+2 (trade date plus two days). It means that the settlement of trades occurs two business days after the trade date.
7. Listing Requirements:
Companies need to fulfill certain criteria to get listed on stock exchanges. This includes meeting financial and governance standards.
8. Derivatives Market:
The Indian derivatives market includes futures and options trading, providing investors with tools to hedge risk or speculate on future price movements.
9. Market Regulation:
SEBI regularly updates and enforces regulations to ensure fair and transparent trading practices. This includes regulations related to insider trading, disclosure norms, and corporate governance.
10. Market Challenges and Opportunities:
The Indian stock market presents both challenges and opportunities. It is influenced by domestic and global economic factors, corporate performance, and government policies.
It’s important to note that market conditions, regulations, and other aspects may have evolved since my last update. For the latest and most accurate information, consider consulting official sources, financial news, and market reports.