SECONDARY MARKET

Presentation by:
ADITYA RAJ
(42110019)
2nd Year, MBA (NIT KKR)
 Contents

• Introduction of Secondary Market

• Origin of Secondary Market
• Functions of Secondary Market
• Organisation of Stock Market
• Regulator of Stock Market
• References

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Secondary Market

• Secondary market is a market where shares

initially issued are traded.
• Trading of securities takes place when securities
are purchased or sold.
• This market is also known as stock market.
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• The securities issued by the Companies, Central
and State Government, and public bodies are
traded.
• Securities issued by a company for the first time
are offered to the public in the primary market.
Later on, the stock is listed, and they are traded
in the secondary market.
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Origin of Stock Market

• The Bombay Stock Exchange was formed in

1875.
• Total number of companies listed in BSE – 5298.
• The NSE was incorporated in 1992 and
commenced its operations in 1994.
• Total number of companies listed in NSE – 1816. 5
 Recognized Stock Exchange Recognized Valid Up to

Calcutta Stock Exchange Ltd PERMANENT

Metropolitan Stock Exchange
of India Ltd. Sep 15, 2023
Multi Commodity Exchange of
India Ltd. PERMANENT
National Commodity & PERMANENT
Derivatives Exchange Ltd.
Indian Commodity Exchange PERMANENT
Limited

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Functions of Secondary Market

• Economic Indicator
• Valuation of Securities
• Transaction in securities is safe in the secondary
market
• Contributes to economic growth
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• Liquidity and Marketability of Securities
• Source for Long term Funds
• It motivates companies to improve their
performance.

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Stock Market Organisation

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 STOCK
MARKET

CUSTODIAL DEPOSITORY
STOCK BROKING
SERVICES SYSTEM

BROKING DEPOSITORIES

SUB-BROKING NSDL

TRADING AND
CLEARING CDSL
MEMBERS
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The Regulator of Stock Exchange

• SEBI - To protect investor interests, promoting

and regulating the Indian securities markets.
• RBI - Regulator of the banking system, manager
of foreign exchange, regulator of payment &
settlement systems
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• Stock Exchange – The rules and regulations are
extended to member registration, securities
listing, transaction monitoring, compliance by
members to SEBI / RBI regulations, investor
protection etc.

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References

• SEBI website - https://www.sebi.gov.in/stock-exchanges.html

• NSE website -
https://www.nseindia.com/regulations/listing-compliance/nse-market-ca
pitalisation-all-companies
• BSE website -
https://www.bseindia.com/markets/equity/EQReports/allindiamktcap.as
px

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