Investor Protection Fund (IPF) has been set up as a trust under the Bombay Public Trust Act 1950 under the name of ‘National Stock Exchange Investor Protection Fund Trust’ and is administered by Trustees. The Investor Protection Fund (IPF) is…
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Settlement Guarantee Mechanism
The concept of guaranteed settlements has completely changed the way market safety is perceived. It has eliminated the counterparty risk of trading on the Exchange. The market has full confidence now that settlements will take place in time and will…
Circuits in share market
Many retail investors buy stocks which have some corporate governance issues just because they are trading at cheaper prices after the heavy selling. But they don’t understand that catching a falling knife is the biggest mistake which they are doing.…
Online and Offline Monitoring
In Indian share market Harshad Mehta and Ketan Parekh Scams have forced Stock Exchanges to be very stringent about their rules and regulations. To protect the interest of Investor, maximum use of technology and minimum interference of human was needed.…
Margin
What is Margin? Margin is the difference between the total value of securities held in an investor’s account and the loan amount from a broker. Borrowing on margin is the act of borrowing money to buy securities. The practice includes…
Capital Adequacy Requirement
Risks involved in Clearing and Settlement process of the Secondary Market are removed by implementing proper Risk Management System. NSCCL provides a transparent clearing and settlement system with no counter-party risk. It has created some frameworks and norms for its…
Book Review: ‘Guide to Technical Analysis and Candlesticks’ by Ravi Patel
Author: Ravi Patel Pages: 224 pages Publisher: Buzzingstock Publishing House; 1st edition (1 May 2010) Language: English Table of contents: Stock Market Basics Introduction to Stock Market Analysis Basics of Technical Analysis Introduction to Candlestick Introduction to Chart Patterns Introduction to Technical Indicators…
Risks in Settlement
There are two types of risks in settlement system. Counterparty risk System Risk 1) Counterparty Risk Counterparty risk arises if parties do not discharge their obligations fully when due or at any time thereafter. These have two major components,…
Settlement Agencies
Several entities are involved in the process of clearing. These are clearing corporation, clearing members, custodians, Clearing banks, Depositories etc. Lets study the roles of each of these entities. Clearing Corporation The clearing corporation is responsible for post-trade activities such…
Clearing and Settlement
Clearing refers to the process of comparing trades before settlement date or the determination of the net obligation of the broker participants (for both securities and cash) The settlement process refers to the exchange of cash and securities on the…