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.