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Who are the Market Infrastructure Institutions and Market

Who are the Market Infrastructure Institutions and Market

Market Infrastructure Institutions and Market Intermediaries

  • Market Infrastructure Institutions (MIIs): Provide infrastructure to facilitate transactions in the securities market, including Stock Exchanges, Depositories, and Clearing Corporations.
  • Stock Exchanges: Nation-wide computerized screen-based trading platforms for buying and selling securities, such as BSE Limited (BSE), National Stock Exchange of India Limited (NSE), and Metropolitan Stock Exchange of India Limited (MSE).
  • Clearing Corporations: Guarantee settlement of trades executed on Stock Exchanges, ensuring buyers receive securities and sellers receive payment.
  • Depositories: Hold securities in dematerialized/electronic form, providing demat services through Depository Participants (DPs), such as National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL).

Market Intermediaries

  • Definition: Support the process of executing orders for buying or selling securities, dealing in securities, and providing relevant information.
  • Types: Include stock brokers, depository participants, merchant bankers, share and transfer agents, and registrars.
  • Registration: All market intermediaries are registered with SEBI and must abide by prescribed norms to protect investors.

Investing in Securities Market

  • Investment Goals: Identify personal investment goals, objectives, and risk appetite.
  • Investment Decision: Reflect individual needs and requirements, considering risk appetite and desired preferences.
  • Investment Risks: Understand that every investment carries the risk of change in inherent value.
  • Informed Decision: Make informed decisions before investing, carefully reading company information and disclosures.
  • SEBI Registered Investment Adviser: May be approached for investment advice, with a list available on the SEBI website.
  • Caution: Exercise caution against unsolicited investment advice from unregistered investment advisers.