PDs deal in government securities both in secondary and primary markets. Their fundamental liability is to offer two-way estimates and act as market makers for government securities and fortify the government securities market. FIs provide\/lend long-term funds for industry and agriculture. FIs increase their resources through long-term bonds from the monetary system and borrowings from international monetary institutions such as International Finance Corporation, Asian Development Bank International Development Association, International Bank for Reconstruction and Development, etc.4. A Stock exchange is approved by the Regulators to provide purchase and sale of securities by an open yell or online on behalf of investors through agents.
The stock trades supply clearing house facilities for netting of obligations and securities shipping. Such clearing homes guarantee all deliveries and payments. Securities traded in stock markets include stocks, debt, and derivatives. Presently, in India, just dematerialized securities are allowed to be traded on that the stock trades. Settlement in securities accounts is made by depositories through participants account. It is necessary that stock exchanges are corporatized and mutualized so that there could be greater transparency in the negotiations and better governance in markets. Only brokers accepted by Capital Market Regulator can function on the stock market. Agents execute the task of intermediating between seller and buyers of securities.
They help build up order book, price discovery and are accountable for a contract being honored. For their services agents earn a fee known as brokerage. These are agencies\/organisations regulated and authorized by SEBI, the Capital Markets Regulator. They arrange to raise of funding through equity and debt path and assist companies in completing a variety of formalities such as filing of the prescribed document along with other compliances with the Regulator and Regulators. They advise that the issuing company on book building, pricing of a problem, organizing registrars, bankers to the issue along with other assistance services. They could underwrite the problem and also be the issue managers.
They can also buy and sell on their accounts. As per regulatory stipulations, such own accounts business should be separately booked and limited to scrips where insider information is not available to the investment\/merchant banker. Investment\/Merchant banking can be an exclusive business. A bank might also undertake these activities. FIIs are foreign-based funds approved from Capital Market Regulator to invest in nations equity and debt market through stock trades. They're permitted to repatriate sale proceeds of their holdings, provided sales have been created through an authorized stock market and taxes have been paid.
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