1

Secondary Market
2

What is secondary market/Stock Exchange?

It refers to the financial market place where existing securities such
as stocks, bonds and other financial instruments are bought and sold
by the investors

CAPITAL MARKET
3

Functions
Acts/
serve as
economic
baromete
r
Facilitates
Bank
evaluation
lending
of
facilitation
securities

Platform for
Examine/checks continuous and
on brokers ready market
securities
4

Investor Issuers

Players of Capital market

Intermediaries Regulators
5

It is a centralized market place where buyers and

sellers come together to trade various financial
instruments primarily stocks or shares of listed
companies
6

Role of Stock Exchange

Promoting investment Economic Growth
7

Are the investment vehicles that pool money from

multiple investors to invest in a diversified portfolio
of assets such as, stocks, bonds and other securities
8

Equity funds Bond bonds

Types Of
mutual funds
Balance funds/hybrid
Money market funds funds
9

Act as a intermediaries between their clients

and financial markets helping clients to raise
capital, manage risk and invest wisely
Eg. Citi group
10

Is an individual who often works as part of a financial

institutions and is primarily concerned with raising
capital for corporation, government, or other entities.
Eg. JP morgen chase, Morgen stanley
11

Introduction to commodities and debt market

Commodities
 It is a useful or valuable things.

 Commodities are raw material or a primary agricultural product that can

be bought and sold such as oil, gold, wheat, coffee, and natural gas etc.
12

Debt market/Bond market is a platform where debt securities are traded

by investors
13

Overview
The Royal Securities Exchange of Bhutan (RSEB) is the
main regulatory body for securities exchange in Bhutan.
The RSEB is responsible for overseeing the functioning of
the securities market, ensuring transparency and fairness,
and protecting the interests of investors.
The Securities Act of Bhutan, 2015 provides the legal
framework for the securities market in Bhutan. The Act
outlines the rules and regulations for the issuance,
trading, and settlement of securities in the country. The
Act also establishes the RSEB as the primary regulatory
authority for the securities market.
14

Existing Rules
• Companies must obtain approval
from the SEC before issuing
securities.
• restrictions on insider trading
and market manipulation.
• Guidelines for the disclosure of
material information to the
public.
• Market participants are also
subject to ongoing supervision
and enforcement by the SEC to
ensure compliance with these
rules.
15
Recent Changes
Provisions for the registration
of securities
Disclosure requirements, and
Dematerialized securities
Bhutan Online Trading System
(BOTS)
Potential Changes
One proposal is to allow
foreign investors to participate
introduce a securities lending
and borrowing mechanism
Introduce new listing
requirements for companies.
16

Role of market regulator

The market regulator plays a crucial role in ensuring transparency
and fairness in public issues. Public issues are the primary means for
companies to raise capital from the public, and it is essential that
investors have access to accurate and timely information to make
informed investment decisions. The market regulator is responsible
for regulating and overseeing the process of public issues to ensure
that it is conducted in a fair and transparent manner.
Importance of Market Regulator in Public Issues
The market regulator is responsible for ensuring that companies
comply with the rules and regulations governing public issues.
17

Role of Market Regulator

Approving the Ensuring

prospectus compliance

Monitoring the
issue
18

Listing and stock

market trading with
special reference with
RSEB.
19

WHAT?
g Sto
t i n ck
Ma
Lis rke
t

Listing refers to the process through It is a financial market which

which a company’s shares are made provides a venue to convert
available for trading on a stock securities into money and vice versa
exchange.
20

Started in 1993 as a stock exchange market and is now a member of

south Asian federation of exchange.
As of July 2023, it has
• 19 listed company
• 9 Brokerage firms
• About BTN 62 billion market capitalization.
BTCL has the highest Market Price with Nu. 845.74
21

Are you Interested in investment?

Do you want to be a part of Stock Market?

Do you want to Trade?

Register in
MCaMS Verification Fund your account
22

Benefit of Listing
1. Platform to raise funds for various purpose, such as;
 expanding operations
 investing in research and development
 reducing debt
2. Listing enhances a company’s visibility and credibility, making it
easier to attract investors and business partners/
3. Listing on a local exchange like RSEB can help strengthen the
domestic capital market.
23

Stock Market Trading

Stock market trading involves the buying and selling of securities,
such as stocks and bonds.

 Investors make decisions based on a range of factors, including

company performance
economic conditions
market trends