What is the Capitalisation and Free-float Capitalisation of the Company
EXPLAINING WITH AN EXAMPLE:
A.S. STEELS LTD
THE TOTAL NO OF SHARES IN THE COMPANY: 5 CRORE SHARES
PROMOTER HOLDING (STOCK) IN THE COMPANY: 3 CRORE SHARES
NON-PROMOTER HOLDING (FREE-FLOAT STOCK) IN THE COMPANY : 2 CRORE SHARES
FACE VALUE OF THE SHARE: Rs 10
MARKET VALUE OF THE SHARE : Rs 300
TOTAL SHARE CAPITAL OF THE COMPANY IS: Rs 10 * 5 CRORE SHARES = Rs 50 CRORES
TOTAL CAPITALISATION OF THE COMPANY IS: Rs 300 * 5 CRORE SHARES = Rs 1500 CRORES
TOTAL FREE- FLOAT CAPITALISATION (NON-PROMOTER CAPITALISATION) OF THE COMPANY IS : RS 300* 2 CRORE SHARES=Rs 600 CRORES
Here A.S. STEELS LTD has 5 crores shares in total, of which 3 crores are held by the promoters, so that only 2 crores shares are available for trading to the general public. These 2 crores shares are the so-called ‘free-floating’ shares/Non-promoters shares.
If the price of each share is Rs 300, then the ‘total’ market capitalization of the company is Rs 1500 crores (5 crores shares x Rs 300), but its free-float market capitalization is Rs 600 crores (2 crores shares x Rs 300).
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Keywords: Free float Capitalisation, Total Capitalization, Stock Market, NCFM Classes in Hyderabad, NCFM Course training in Hyderabad.
Differences between Large Cap, Mid Cap and Small Cap Stocks
There are three main classifications when it comes to stocks –
What is market Capitalisation?
It is the value of the stock that you arrive at by multiplying the stock price by the company’s outstanding number of equity shares.
|Market Capitalisation = Current Stock Price x Number of Shares outstanding|
For a better understanding, let us see an example:
Company ABC has 1,00,00,000 shares outstanding and its current share price is Rs 300. Based on the above formula, we can calculate that Company ABC’s market capitalisation is Rs 300 crores (1,00,00,000 shares x Rs 300 per share.= Rs 300 crores)
Thus, the Large-cap companies, Mid-cap companies and Small-cap companies contribute 80%, 15% and 5% of the total Market Capitalization of the market respectively.
Generally, the absolute market capitalisations of the respective classes are as under:
|Large Cap.||Above Rs.10,000 Crore|
|Mid-Cap.||Rs.2000 Crore to Rs.10,000 Crore|
|Small-Cap.||Up to Rs.2,000 Crore|
Risk (Probability of negative returns)
|Probability of exceptionally high returns||
|Company Information Availability||
As we mentioned above, the first category based on market capitalisation is that of ‘large cap stocks’.
One can look at the BSE-Sensex or BSE-100 Index as a reference point for large cap stocks. Market capitalisation for stocks in the BSE-100 Index, for instance, ranges from Rs 20,000 crores to Rs 3,50,000 crores
These are stocks of usually large and well-established companies that have a strong market presence and are generally considered as safe investments. One important fact about large caps is that information regarding these companies is readily available in newspapers and magazines. Most of the large cap companies have good disclosures and therefore there is no dearth of information for an investor looking into them.
Large companies such as Infosys, TCS, and Wipro are classified as large cap stocks. These companies have been around in the industry long enough and have firmly established themselves as leading players. Their stocks are publicly traded and have large market capitalisations.
Mid-caps lie between large cap stocks and small cap stocks. Mid cap stocks are those that generally have a market capitalisation within the range of Rs 5,000 crores and Rs 20,000 crores . These represent mid-sized companies that are relatively more risky than large cap as investment options yet, they are not considered as risky as small cap companies. They rank between the two extremes on all the important parameters like size, revenues, employee and client base.
When one invests in mid-caps for the long term, he may be investing in companies that could become tomorrow’s runaway success stories. Generally speaking, mid cap stocks as an investment can bring you higher returns in 3 to 5 years as opposed to their big brother large cap stocks that can bring you moderate (yet safer) returns during this time frame.
Lying at the lowest end of market capitalisation, Small cap stocks are generally viewed under the misconception of being hazardous or ‘quick rich’ stocks. However, both these labels are untrue.
Small cap companies have smaller revenue and client bases, and usually include the start-ups or companies in the early stage of development. Small cap stocks are potentially big gainers as they are yet to be discovered within the sector and can show growth potential in large numbers once unfurled in the market. However, as these enterprises are small ventures, these should be researched properly. This is considering that a lot of small companies do not have the financial strength to survive bad times and some of them might be mismanaged businesses run by greedy promoters. Hence it is essential, especially in the case of small caps investments that one does a thorough research regarding the promoters’ credentials, management strength and track record, and long and short term growth plans of the company before investing.
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Sources : stockshastra.moneyworks4me.com
Here is the process to follow to become Stock Exchange Trading Member or a Broker in India. As you all know Broker means a member in recognized stock exchange who will said be the authorized trader.
Steps to become a Trading Member (Broker) in National Stock Exchange of India Ltd
1. Eligibility: Indian Citizen, 21 years, HSC or equivalent qualification, 2 years experience in stock market relative affairs.
Note:- but real time brokers collecting for delivery transactions around 0.50%
For Intra-day transactions around 0.05%
For Option Market for each lot Rs.10 to Rs.50
In case if you want TM cum CM Broking Card on behalf of Company Rs.300 Lakhs net worth plus Rs.30 Lakhs paid up Capital is required.
a) For individual:- (not exceeding 4 members) his & his spouse not less than 51%. One Person Graduation is compulsory.
b) For Firm:- not less than 51% his & his spouse, children’s & brothers One Person Graduation is compulsory.
C) Corporate company:- Not less than 40% of the directors share holding (at least 50% each director) 2 Directors Graduation is compulsory.
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Eligibility of Sub Broker in Stock Market
a) But real time sub-brokers collecting for delivery transactions around 0.50%
b) For Intraday transactions around 0.05%
c) For Option Market for each lot Rs.10 to Rs.50
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What is Demat Account?
Before 1996, Indian investors held their shares and securities in physically, in the form of Certificates. After that, it was the beginning of a new era of paperless trading, where-in instead of the investor taking physical possession of certificates; it was stored or held in an electronic form in a Dematerialized (or Demat) account.
The Demat account can be opened by the investor while registering with an investment broker (or sub-broker) and this Demat account no. can quoted for all transactions to enable electronic settlements of trades to take place. On opening the account, internet password and a transaction password is given for the transfers or purchases of securities.
When an investor buys a share today, it gets credited to the investor’s demat account in just 2 days.
For example: delivery failures caused by signature mismatch, postal delays and loss of certificate during transit. Further, it eliminates the risks associated with forgery and due to damaged stock certificates.
Disadvantages of Demat
To open a Demat account, you have to provide documents which fulfill the requirements of KYC (Know Your Customer) norms. You have to sign a contract with Stock broker. Generally the documents are
1. PAN (Compulsory).
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Before opening ‘Trading and Demat account’ in any Broking company, SEBI has advised the Precautions to Investors, in the form of “Know your client (KYC)”. These are as given below
Sources : NSEIL (National Stock Exchange of India Ltd.,)
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Source : National Stock Exchange of India Ltd
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NCFM Capital Market (Dealers) Module Practice Paper
Please find Answers below
1. Appeal against the orders Securities and Exchange Board of India can be made to
___________. [2 Marks] (a) Central Government
(b) Securities Appellate Tribunal
(c) Registrar of Companies
(d) High Court
2. In case, a body corporate is applying for trading membership in the capital
market segment of NSEIL, [3 Marks] (a) at least 5 directors should be graduates of whom one should be a professional.
(b) at least two directors should be graduates and have minimum of 2 years
experience of securities market.
(c) no prior experience is required.
(d) all the directors should be graduates.
3. What is the purpose of ‘Trade Log’ report on the NEAT system?
[2 Marks] (a) There is no report as ‘Trades Log’ report.
(b) To show the trades that have only been cancelled or modified orders for the
dealers belonging to a trading member for the current trading day.
(c) To show the details of the trade related activity by the trading member for a
(d) To show the trades that was done by the trading member for the last seven
4. In ASBA, the amount is blocked in
[2 Marks] (a) Trading members account
(b) Investors own account
(c) Both A and B
(d) None of the above
5. The Capital Market Segment of NSE commenced operations in
[1 Mark] (a) Sep-96
6. _____________ obligates the depositories to maintain ownership records of
securities and effect changes in such records electronically at the behest of the
owner of the securities. [2 Marks] (a) The Depositories Act, 1996
(b) The SEBI Act, 1992
(c) The Securities Contract (Regulation) Act, 1956
(d) The Companies Act, 1956
7. The first two characters in ISIN code for a security represents _____.
[1 Mark] (a) issuer type
(b) security type
(c) country code
(d) company identity
8. Which of the following is true regarding the norms and procedures pertaining to
surrender of membership ?
a) A trading member desirous of surrendering membership has to give its request in
writing in a prescribed form
b) The original SEBI registration certificates for all trading segments have to be
submitted by the trading member.
c) Sub-broker registration certificates have to be submitted
d) All leased lines and VSATs will not be dismantled for the surrendering trading
member. [3 Marks] (a) a,b,c
9. If the eighth and ninth character of the ISIN is mentioned as 04, what does it
indicate [2 Marks] (a) security is security receipt
(b) security is non-convertible preference share
(c) security is a warrant
(d) security is equity share / mutual fund
10. Activities in the ‘Activity Log’ screen on the NEAT system are displayed in
________. [2 Marks] (a) chronological order where within the order number, the details appear with the
oldest activity first and the latest last
(b) descending order of order numbers
(c) ascending order of order numbers
(d) reverse chronological order
11. The ‘Snap Quote’ screen in the NEAT system enables the user to view
________. [1 Mark] (a) instantaneous market information on a desired security.
(b) best five quotes in the market.
(c) quotes in the normal market.
(d) None of the above.
12. Clearing and settlement of trades and risk management are central functions of NSCCL. [2 Marks]
(c) Not Attempted
13. Who provides counter party guarantee for all trades executed on NSEIL?
[1 Mark] (a) NSE Clearing House
14. Which of the following is FALSE about auctions in the NEAT system?
[2 Marks] (a) All auction orders are entered into the auction order book.
(b) Auction matching takes place only across orders belonging to the same
(c) All auction trades take place at the last traded price for that day in the regular
lot book in the normal market.
(d) Auction order matching takes place at the end of the solicitor period for the
15. Is order cancellation and order modification allowed for orders entered in the
retail debt market segment.
[2 Marks] (a) FALSE
16. The FIIs can invest in a company upto _____ % of the paid up capital of the
company. This percentage can be increased upto the sectoral cap as applicable to
the Indian Companies by passing a resolution of its board of directors.
[2 Marks] (a) 32
17. Are secured loans a part of Liability or Asset in balance sheet ?
[1 Mark] (a) Liability
(c) Not Attempted
18. Member can procure the CTCL Software from – a) Vendors empanelled with NSE
b) Non-empanelled Vendors c) Develop in-house d) All of the above
[1 Mark] (a) b
19. The Client registration form is filled by the client when ________.
[2 Marks] (a) client delivers spurious shares
(b) broker has to file FIR against client
(c) client enrolls himself with the broker
(d) client defaults in making payments
20. The corporate action indicator XB on the NEAT system stands for
[2 Marks] (a) ex-dividend
21. Which of the following statements is NOT correct?
[1 Mark] (a) Depository is registered owner of the securities held in demat form.
(b) Securities in a depository are fungible.
(c) Securities in a depository are held in dematerialised form.
(d) Dematerialised securities have distinct numbers.
22. Do clearing banks provide stock lending facilities ?
[1 Mark] (a) FALSE
(c) Not Attempted
23. SEBI has prescribed the Code of Conduct for the sub-brokers in __________.
[1 Mark] (a) Indian Contract Act, 1872
(b) Securities Contracts (Regulation) Act, 1956
(c) Companies Act, 1956
(d) SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992
24. A stockbroker means a member of _________.
[1 Mark] (a) SEBI
(b) any exchange
(c) a recognised stock exchange
(d) any stock exchange
25. What price does a market order take, in case the security has never been traded
on the NEAT system? [2 Marks] (a) The market order gets cancelled by the system.
(b) Market orders cannot be entered for a security in which a trade has not taken
(c) The market order takes the value of the base price and sits in the order book
as a passive order.
(d) None of the above
26. Member A places a buy order for 1000 shares of ABC Ltd. in the NEAT system at
11:22:01 for Rs.155 per share. Member B places a sell order for 2000 shares of ABC
Ltd. at 11:22:02 for Rs.150 per share. Assume that no other orders were available in
the system during this time. Whether the trade will take place and if yes, at what
price? [1 Mark] (a) 1000 shares get traded at Rs. 150 per share.
(b) 1000 shares get traded at Rs. 150.50 per share.
(c) 1000 shares get traded at Rs. 152.50 per share.
(d) 1000 shares will get traded at Rs. 155 per share.
27. VaR margin is charged at differential rate on the ____________ position of the
client in each security.
[2 Marks] (a) Only sale
(b) Only buy
(c) Gross outstanding
(d) Net outstanding
28. Nifty index drops by 15% at 3:00 pm. Market will be halted _____.
[2 Marks] (a) by half an hour
(b) for remainder of the day
(c) for ten minutes
(d) for fifteen minutes
29. What is FALSE about an outstanding order on the NEAT system?
[2 Marks] (a) It is an order that has been entered by the user and is partially matched.
(b) It is a stop loss order that has not yet been triggered in the market.
(c) It is an order that has been entered by the user and not yet been traded.
(d) It is an order that has been entered by the user, but which has not yet been
completely traded or cancelled.
30. Which of the following is NOT true about SEBI?
[2 Marks] (a) It determines the premium/discounts at which securities are to be issued.
(b) It can specify the matters to be disclosed and the standards of disclosure
required for the protection of investors in respect of issues.
(c) Its regulatory jurisdiction extends over all intermediaries and persons
associated with the securities market.
(d) Its regulatory jurisdiction extends over corporates in the issuance of capital
and transfer of securities.
31. Which of the following is NOT true about corporate securities market reforms?
[1 Mark] (a) The secondary market overcame the geographical barriers by moving to screen
(b) Counter-party risk is borne by investors.
(c) The trading cycle in the stock exchanges follow rolling settlement.
(d) The practice of allocation of resources among different competing entities as
well as its terms by a central authority was discontinued.
32. A portfolio contains securities with the expected return as follows:-
Security Probability Return
A 50 10
B 30 25
C 20 40
What will be the expected return of the portfolio? [1 Mark] (a) 1.75
33. Which of the following is FALSE about order cancellation in the NEAT system?
[2 Marks] (a) Order Cancellation functionality is available for all book types.
(b) The user is allowed to cancel auction initiation and competitor orders in auction
(c) Order Cancellation functionality can be performed only for orders which have
not been fully or partially traded (for the untraded part of partially traded orders
(d) Order Cancellation functionality can be performed during market hours and in
pre open period
34. The maximum amount of claim payable from the IPF to the investor (where the
trading member through whom the investor has dealt is declared a defaulter) is
________. [2 Marks] (a) Rs. 15 lakh
(b) Rs. 10 lakh
(c) Rs. 17 lakh
(d) Rs. 1 lakh
35. ABC Bank Ltd has a policy of continuous compounding of fixed deposits. Abhishek
has deposited Rs. 60,000 at the interest rate of 12% for 3 years. How much would
his deposit grow up to at the end of the term?
[2 Marks] (a) 82,068.81
(e) Not Attempted
36. When a user logs in for the first time in the trading system of CM segment, he
has to enter the default password provided by the Exchange. What is this default
[1 Mark] (a) NEAT
(b) DEFAULT PSWD
37. Which of the following statement(s) is/are true pertaining to Mark – to – Market
a) It is calculated by marking each transaction in security to the closing price of the
security at the end of trading.
b) The margin is collected from the member before the start of the trading of the
c) The MTM margin is collected on the gross open position of the member.
[1 Mark] (a) a,b
38. If the eighth and ninth character of the ISIN is mentioned as 12, what does it
[2 Marks] (a) security is deep discount bond
(b) security is a floating rate bond
(c) security is regular return bond / promissory note
(d) security is step discount bond
39. If a client buys shares worth Rs. 1,25,000 and sells shares worth Rs. 75,000
through a broker, then the maximum brokerage payable to him is ___.
[2 Marks] (a) Rs. 5,000
(b) Rs. 24,000
(c) Rs. 20,000
(d) Rs. 16,000
40. In case of surrender of the membership at NSEIL, ___________.
[2 Marks] (a) the matter is treated as confidential
(b) only the members are notified by way of a circular
(c) the surrendering member is permitted to trade with a limited exposure
(d) advertisement is issued in leading dailies
41. A trading member on the NSE, has set the branch order value unlimited for his
Chennai branch and Rs. 650 lakh for Kolkata branch. Chennai branch has two users
‘X’ and ‘Y’ with user order value limits of Rs. 250 lakh and Rs. 300 lakh respectively.
Kolkata branch has one user ‘Z’ with user order value limit of Rs. 350 lakh. The
member applies for a new user at Kolkata. What is the maximum user order value
that can be set for the new user?
[3 Marks] (a) Rs. 300 lakh
(d) Not more than Rs. 650 lakh
42. An application for arbitration can be filed within ____ from the date of dispute.
[1 Mark] (a) 3 months
(b) 45 days
(c) 6 months
(d) 1 year
43. SEBI (Intermediaries) Regulations 2008 are not applicable for foreign venture
[1 Mark] (a) TRUE
44. Which of the following requirements by intermediaries are laid down by the SEBI
(Intermediaries) Regulations, 2008 for all the Intermediaries.
a) Grant of Registration
b) Code of Conduct
c) Common procedure for action in case of default.
[1 Mark] (a) b,c
45. Which of the following is not a delivery report ?
[2 Marks] (a) Memberwise withheld securities statement
(b) Margin Report
(c) Client Allocation Details
(d) Demat Final Delivery Statement
46. Who can set Branch Order Value limits on the NEAT system?
[2 Marks] (a) None of the above
(c) Corporate manager
(d) Branch manager
47. If the eighth and ninth character of the ISIN is mentioned as 07, what does it
[2 Marks] (a) security is non-convertible preference share
(b) security is a warrant
(c) security is equity share / mutual fund
(d) security is secured debenture
48. If a client buys shares worth Rs. 90,000 and sells shares worth Rs. 1,10,000
through a stock-broker, then the maximum brokerage payable is _____.
[3 Marks] (a) Rs. 4,000
(b) Rs. 6,000
(c) Rs. 2,000
(d) Rs. 5,000
49. If the eighth and ninth character of the ISIN is mentioned as 08, what does it
[2 Marks] (a) security is equity share / mutual fund
(b) security is non-convertible preference share
(c) security is secured debenture
(d) security is an unsecured debenture
50. NSE’s Certification in Financial Markets is NOT a _____________ testing and
[1 Mark] (a) nation-wide
(c) fully automated
51. The securities market has two segments primary and secondary.
Is the above statement True or False
[1 Mark] (a) FALSE
52. Auction is held in XYZ for 10,000 shares.
The closing price of XYZ on that day was Rs.146.00
The last traded price of XYZ on that day was Rs.141.00
The close price of XYZ last Friday was Rs.142.00
The previous day’s close price of XYZ was Rs.151.00
What is the maximum allowable price at which the member can put a sell order in
the auction for XYZ? (Price band applicable for Auction market is +/ -15%)
[3 Marks] (a) Rs. 167.90
(b) Rs. 173.65
(c) Rs. 163.30
(d) Rs. 162.15
53. In case of failure to give delivery in a limited physical market, close out price is
_____% over the actual trade price. [2 Marks] (a) 20
54. ______ price is the price for orders after the orders get triggered from the stop
[1 Mark] (a) Limit
(c) Not Attempted
55. A depository participant _______________
[1 Mark] (a) is an investor who buys/sells shares through the depository.
(b) trades in the dematerialised shares.
(c) destroys the share certificates and makes a credit entry for his clients.
(d) is an agent of the depository and takes physical share certificates from his
clients and sends them for dematerialisation.
56. Under the Member Constituent Agreement, trading members are required to
make the clients aware of which of the following
a) trading segment in which the trading member is admitted
b) SEBI Registration number
c) basic risks involved in trading on the Exchange
[1 Mark] (a) b,c
57. Mr. Desai has decided to deposit Rs. 100,000 in the bank annually. If the bank
has a policy of continuous compounding and the prevailing interest rate is 11.5%
how much would his deposit grow upto in 2 years? [2 Marks] (a) 166,141.11
58. Which of the following is deemed to be price sensitive information
a) periodical financial results of the company
b) intended declaration of dividends (both interim and final)
c) issue of securities or buy back of securities
d) any major expansion plans or execution of new projects
[1 Mark] (a) b,c,d
59. Which of the following statements is FALSE about the NEAT system?
[1 Mark] (a) All orders placed on NEAT must necessarily result in trades.
(b) Orders are matched automatically by the computer keeping the system
transparent, objective and fair.
(c) All orders received on the system are sorted with the best priced order getting
the first priority for matching.
(d) Similarly priced orders are sorted on time priority basis.
60. If the third character of the ISIN is mentioned as ‘E’ what does this denote ?
[2 Marks] (a) The issuer is company, statutory corporation, banking company
(b) The issuer is mutual fund
(c) The issuer is state government
(d) The issuer is municipal corporation
1 (b) 21 (d) 41 (a)
2 (b) 22 (b) 42 (c )
3 (c ) 23 (d) 43 (a)
4 (b) 24 (c ) 44 (b)
5 (b) 25 (c ) 45 (b)
6 (a) 26 (d) 46 (c )
7 (c) 27 (d ) 47 (d)
8 (a) 28 (b) 48 (d)
9 (b) 29 (b) 49 (d)
10 (a) 30 (a) 50 (b)
11 (a) 31 (b) 51 (b)
12 (b) 32 (b) 52 (b)
13 (d) 33 (b) 53 (a)
14 (c ) 34 (a) 54 (a)
15 (b) 35 (d) 55 (d)
16 (d) 36 (c ) 56 (d)
17 (a) 37 (b) 57 (d)
18 (d) 38 (d) 58 (b)
19 (c ) 39 (a) 59 (a)
20 (b) 40 (d) 60 (a)
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Cash Market Settlement Cycle for Dematerialized Securities as follows:
Normal Market: The trades executed each trading day are considered as a trading period and trades executed during the day are settled based on the net obligations for the day. At National Stock Exchange, trades in rolling settlement are settled on a T+2 basis i.e. on the 2nd working day. Typically trades taking place on Monday are settled on Wednesday, Tuesday’s trades settled on Thursday and so on.
A tabular representation of the settlement cycle for rolling settlement is given below
|Clearing||Custodial Confirmation||T+1 working days|
|Delivery Generation||T+1 working days|
|Settlement||Securities and Funds pay-in||T+2 working days|
|Securities and Funds pay-out||T+2 working days|
|Valuation of shortages based on closing prices (at T+1 closing prices)||T+2 working days|
|Post Settlement||Auction||T+2 working days|
|Auction settlement||T+3 working days|
|Bad Delivery Reporting||T+4 working days|
|Rectified bad delivery pay-in and pay-out||T+6 working days|
|Re-bad delivery reporting and pickup||T+8 working days|
|Close out of re-bad delivery and funds pay-in & pay-out||T+9 working days|
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The Cash Market settlement process begins as soon as member’s obligations are determined through the clearing process. The clearing banks and depositories provide the necessary interface between the custodians/clearing members (who clear for the trading members or their own transactions) for settlement of funds/securities obligations of trading members. The clearing corporation provides a major link between the clearing banks, clearing members and the depositories. This link ensures actual movement of funds and securities on the prescribed pay-in and payout day. The core processes involved in the settlement process are:
The cash market settlement process for transactions in securities in the CM segment of NSE is presented in the below:
(1) Trade details from Exchange to NSCCL (real-time and end of day trade file).
(2) NSCCL notifies the consummated trade details to CMs/custodians who affirm back. Based on the affirmation, NSCCL applies multilateral netting and determines obligations.
(3) Download of obligation and pay-in advice of funds/securities.
(4) Instructions to clearing banks to make funds available by pay-in time.
(5) Instructions to depositories to make securities available by pay-in time.
(6) Pay-in of securities (NSCCL advises depository to debit pool account of custodians/CMs and credit its account and depository does it).
(7) Pay-in of funds (NSCCL advises Clearing Banks to debit account of custodians/CMs and credit its account and clearing bank does it).
(8) Pay-out of securities (NSCCL advises depository to credit pool account of custodians/CMs and debit its account and depository does it).
(9) Pay-out of funds (NSCCL advises Clearing Banks to credit account of custodians/CMs and debit its account and clearing bank does it).
(10) Depository informs custodians/CMs through DPs.
(11) Clearing Banks inform custodians/CMs.
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