Capital Market Awareness

BSE & Key Initiatives

■ Founded as The Native Stocks & Share Brokers Association in
1875
■ Largest number of listed companies….. 5,900+
■ 7th largest exchange in Asia in terms of Market Capitalization
■ 8th Largest Exchange in World – number of trades in Equity
Shares
■ S&P BSE SENSEX is traded internationally on the EUREX as
well as leading exchanges of the BRCS nations
■ Trade Guarantee Fund –
System of guaranteeing settlement of trades and market equilibrium in
case of payment default
■ BSE’s Investor Protection Fund (IPF) –
Investor Awareness Programs across India to educate
nvestors about the Indian Capital Market
 BSE Market Offerings
□ Cash Market

□ Derivatives

□ Currency Derivatives

□ Interest Rate Derivatives

□ Debt Market segment

□ ETFs/Mutual Funds

□ BSE SME Platform

 Key Investor Do’s (including Investor Rights)
□ Always deal with the market intermediaries registered with
SEBI / stock exchanges
□ Always insist on contract notes from your broker
□ Always settle the dues through the normal banking
channels with the market intermediaries
□ Adopt investment strategies commensurate with your risk-
bearing capacity
□ Be cautious about stocks which show a sudden spurt in
price or trading activity
□ No guaranteed returns on market investments
□ Approach nearest Regional Investor Service Centre of BSE

For the entire list of Do’s for Investors, visit www.

bseindia.com
 Key Investor Don'ts
□ Don't deal with Unregistered brokers / sub - brokers,
or other Unregistered intermediaries
□ Don't execute any documents with any intermediary
without fully understanding its terms
□ Don't deal based on Rumours or ‘Tips‘
□ Don't fall prey to promises of guaranteed returns
□ Don't leave the custody of your Demat Transaction
slip book in the hands of any intermediary
□ Don't blindly follow media reports

For the entire list of Dont’s for Investors, visit www.bseindia.

com
 Regulators & Key Players
❑ Regulators of the Securities Market

■ SEBI, RBI, DEA and DCA regulates the Indian securities

market
■ Commodity Market is regulated by SEBI post the merger of
the Forward Markets Commission (FMC) into it

❑ Other Key Players in the Securities Market

■ Depository
■ Clearing Corporation
■ Broker
 INVESTING
in the
CAPITAL MARKET
e-trading Screen

1 8
 How the Capital Market Operates
Settlement System: T+2 Settlement System

Day Time Description of activity

T 9:15 a.m. – 3:30 p.m. Trade Day

Confirmation of all trades (including custodial trades)

By 11:00 a.m. Facility of an exceptional window for late confirmations
T+1 would be made available by the exchanges

Processing and downloading of obligation files to brokers /

By 1:30 p.m.
custodians

By 11:00 a.m. Pay-in of securities and funds

T+2
By 1:30 p.m. Pay-out of securities and funds
 How the Capital Market Operates
□ e-trading
□ BOLT on-line Trading
System at BSE
□ Benefits :
■ Lower Transaction Costs
■ Increased Liquidity &
Transparency
■ Greater Competition
■ Time Efficient & Automated
□ De-materialization (Demat)
□ Shares held in electronic
format (Non-Physical)
□ Facilitates electronic
settlement of trades
□ Maintained & monitored
by Depository Participant
(DP)
 The Importance Of INVESTING

Investments In
Traditional Saving
Avenues
are usually
impacted by
Inflation &
Taxation
 100 = 20 .…. How ?
Illustration Amount
Base Income 100
Less : Direct Tax 30
Post Direct Tax Income 70
Non - Discretionary Expenses 35
Indirect Taxes 5
Net Income 30
Net Investible Income 20

Now that Rs. 100 has become 20, how will one make Rs.20 work
optimally ???
 Asset Class Offerings
□ Equity
■ Direct Equity (Share Market)
■ Equity Mutual Funds

□ Debt
■ Bank FDs
■ Corporate FDs
■ Debt Mutual Funds
■ Government Instruments (PPF, NSC, Post Office Savings)

□ Gold
■ ETFs
■ Gold Mutual Funds
■ Gold Sovereign Bonds
Equity v/s Debt – Performance Record
Investment of Rs. 100 invested in January 2009 would have been
□ Equity □ Debt
Rs. 400 in June 2019 at a CAGR Rs. 161 in June 2019 at a CAGR
Return of ~14.9% After Tax** Return of 4.9% After Tax**
** assumed investor is in Highest Tax Bracket
** Equity Returns are Taxed @ 10% as LTCG

BSE Sensex as on 20th June, 2019

January 2009 - June 2019

15 –
u n : 20
lR
Bul
7
201
 Selecting a Stock
□ Management

□ Business Model

□ Numbers

□ Story behind the Numbers

□ Industry Outlook

□ Annual Report
Mutual Funds –The Vehicle for Retail Investors

□ Pool of Money

□ Professionally Managed

□ Governed by SEBI

□ Sponsor / Trustee, AMC

 Power of Compounding
SIP in Equity Mutual Funds for
WEALTH CREATION
Monthly SIP Expected Rate of Estimated
Amount (`) Return Corpus over 10 years

2,000 14% Rs. 5.2 lakh

3,500 14% Rs. 9.1 lakh

5,000 14% Rs. 13.0 lakh

Financial Planning - Key Aspects
□ Financial Goals
■ Buying a house
■ Children's Education
■ Children’s Marriage

□ Insurance Planning

□ Tax Planning

□ Retirement Planning
Capital Markets – Road Ahead
□ Current Participation – 4-5%; Year 2025 – 10-15%
participation

□ Indian Equity Market - Strong Potential for Growth

■ Investment Cycle has to re-start

■ Sheer Size of Indian Economy

■ Changing Demographics in India

THANK YOU !!!

INVESTING IS A FULL
TIME ACTIVITY

THERE IS NO SHORT
CUT TO MAKING
MONEY