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Inside…

1.Asset Classes

Equity – Shares

Debt Instruments

Funds

2.Money Laundering

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Asset Classes

FINANCIAL MARKET

EQUITY DEBT

Ownership of Lending
the business (Interest)

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 Equity

What is a Share?

A share is a claim of ownership in a firm in proportion to the amount of money

invested and is freely tradable at exchanges after listing.

A firm’s capital is divided into smaller denominations called equity shares.

Ex: Capital is divided by the denomination of Rs.10 & has separate face value

When you buy a share it has a claim on the firm’s assets and income & you
Become one of the several owners in proportion to the number of shares bought.

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Benefits to Equity share holders

Voting rights to share holders

To form board of directors.

Dividends
Part of company profit paid to equity holders

Capital appreciation
A rise in the value of an asset based on a rise in market price.

Bonus shares
Payment of dividend in the form of stock rather than cash.

Rights issue
Issuing rights to existing share holders to buy the shares at discount price

Liquidity
Can be easily sold through Stock exchanges

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Market Types

Primary Market

When a security is purchased directly from the issuer, it is called primary market.

When any entity makes available its newly issued securities in the market is called IPO.

Secondary Market

The Stock exchange is called Secondary market.

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Primary & Secondary Market

BSE (Bombay Stock Exchange)

Oldest stock exchange in Asia established in 1875.

World’s no 1 exchange in terms of no of listed companies and no 5 th in transaction.

BSE Index & SENSEX is India’s first stock market index and is tracked worldwide

NSE (National Stock Exchange)

India’s leading stock exchange set up by leading financial institutions

NSE – CNX , NIFTY is the most popular.

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Blue chip & CAP

Blue Chip
Means the common stock of a nationally known company that has a long record of
Profit, growth and dividend payment and a reputation for quality in management,
Products and services.

Small Cap, Mid Cap, Large Cap

Less than Rs.500 crores of Market Capitalization – Small Cap

Between Rs.500 – Rs.1000 croes of Market Capitalization – Mid Cap

More than Rs.1000 crores of Market Capitalization – Large Cap

Market Capitalization = No. of Shares x Share Price

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 Debt Instruments

• Fixed income Securities

• Pay regular income(fixed interest) decided at the beginning of transaction &

principal repaid at the end of term.

• Issued by Government and Corporate

• Long term or short term

Examples of Debt are,

Govt Securities, Treasury Bills, Oil Bonds, Food Bonds, Fertilizer Bonds, issued by GOI

State Development Loans by State Government

Non Convertible Debentures(NCDs) Corporate, Financial Institutions, estd by State & Central Govts.

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 Funds

How Fund
Works?

Investors
Paid back Invest money through

Returns Fund Managers

Invest in
Generate
Securities

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Funds

• Portfolio Diversification
• Professional Management
Equity
• Reduction of Risk (diversification)
• Secured Returns
• Reduction of transaction costs Balanced
R
• Liquidity I
S
• Transparency K Debt

• Convenience & Flexibility

• Wide Choice of Schemes Liquid

• Tax Benefits
RETURNS
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ELSS

Equity Linked Savings Schemes

• ULIPs (Unit Linked Insurance Plans)

• Mutual Funds

• SIPs (Systematic Investment Plans)

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Equity Vs Other Instruments

17%
18%

16% 15%
14% 13%
12%
12%

10%
7%
8%

6%

4%

2%

0%

Inflation Gold Silver SENSEX GOI Bonds

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Anti-Money Laundering Guidelines

What is Money Laundering?

Money Laundering is the process of moving illegally acquired cash through financial
systems so that it appears to be legally acquired.

Common Stages of Money Laundering

Placement
(Process of disposing bulk cash into bank by small but regular deposits or investments)

Layering
(Laundering the dirty funds by large volume of transaction, diff currencies & jurisdictions)

Integration
(Using layered funds purchasing the legitimate assets)

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 Money Laundering Regulations

In India AML measures are controlled by The Prevention of Money Laundering

Act 2002.

RBI, SEBI, IRDA has been under the provisions of PML Act.

PML applicable to all financial institutions, banks, insurance co, mutual funds
& brokers.

Agency monitoring AML activities in india is called Financial Intelligence Unit

(FIU IND)

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 Money Laundering - Consequences

The PML Act, 2002 provides

‘whosoever directly or indirectly attempts to indulge or knowingly assists or

Knowingly is a party or is actually involved in the process or activity connected
with the proceeds of crime and projecting it as untainted property shall be
guilty of money laundering’

Under the Act, the offences will be punished with rigorous imprisonment for a
Term from 3 to 7 years and a fine upto Rs.5 lac

*KYC is the solution to avoid suspicious transactions

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 ?
Any Questions

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Thank You

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