FInvesTree Blog

 Do's and Don'ts for investing / trading in securities market DOs 1. You may consult with a SEBI registered Investment Advisor for your investment needs in securities market. 2. Invest in a scheme/product depending upon your investment objective and risk appetite. 3. Insist on a valid contract note/ confirmation memo for trades done within 24 hours of the transaction. Keep track of your portfolio in your demat account on a regular basis. 4. Read all the documents carefully before signing them. 5. You should carefully note all the charges/ fees/ brokerage that are applicable on your accounts and keep a record of the same. 6. Keep a record of documents signed, account statements, contract notes received and payments made. 7. Periodically review your financial needs / goals and review the portfolio to ensure that the same are possible to achieve. 8. Always pay for your transactions using banking channel, i.e. no dealing in cash. 9. Always keep your information updated. Inform your...

What are Securities and Securities Market? A) Equity Shares or commonly called as shares, represent a share of ownership in a company. An investor who invests in shares of a company is called a shareholder, and is entitled to receive all corporate benefits, like dividends, out of the profits of the company. The investor is also entitled to receive the right to cast a vote with regard to the decision making process of the company at General meeting of the company. B) Debt Securities represent money that is borrowed by the company / institution from an investor and must be repaid to the investor. Debt securities are also called as debentures or bonds. An investor who invests in debt securities is entitled to receive payment of interest/coupons and repayment of principal (i.e. the money invested). Debt Securities are issued for a fixed term, at the end of which the securities can be redeemed by the issuer of securities. Debt securities can be secured (backed by collateral) or unsecure...

 Regulatory Framework for Securities Market The regulation of buying, selling and dealing in securities such as shares of a company, units of mutual funds, Derivatives, etc. and stock exchanges, commodity derivative exchanges and depositories comes within the purview of Securities and Exchange Board of India (SEBI) in terms of SEBI Act, 1992 (SEBI Act) and various SEBI regulations/ circulars/ guidelines/ directives. SEBI was established on April 12, 1992 in accordance with the provisions of the SEBI Act. The mandate of SEBI is to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto. At present, the four main legislations governing “the securities market” are: A) The SEBI Act, 1992, which empowers SEBI with statutory powers for (i) protecting the interests of investors in securities, (ii) promoting development of the securities market, and (iii) regulating t...