List of Terms relating to Indian Stock Exchange ↓
List of the of import terms relating to indian stock exchange transactions.
1. Group Influenza A virus subtype H5N1 Shares
These are the listed equity shares of large too good established companies having wide investor base. These shares are actively traded too for these shares the facility for carrying frontwards a transaction from i accounting menstruum to around other is available. Naturally, these shares attract a lot of speculative multiples. These facilities are non available for grouping B shares. However, shares tin live on moved from Group B to Group Influenza A virus subtype H5N1 too vice versa depending on criteria for shifting. For illustration the Mumbai Stock Exchange has set downward several criteria for shifting shares from Group B to Group A; such as, an equity base of operations of Rs. 10 crores, a marketplace position capitalization of Rs. 25-30 crores, a populace belongings of 35 to xl percent, a shareholding population of 15,000 to 20,000, expert dividend paying status, etc.
2. Group B Shares
These are those listed shares which do non follow the criteria prescribed for Group Influenza A virus subtype H5N1 shares. Group B shares are in i lawsuit again divided into B1 too B shares on BSE. B1 shares stand upwards for good traded scrips amid B grouping too they get got weekly settlements.
3. Group C Shares
Under Group C, solely strange lots too permitted securities are included. Influenza A virus subtype H5N1 number of shares that are less than the marketplace position lot are called strange lots. Market lot refers to the minimum number of shares of a item safety that must live on transacted on a stock exchange. Odd lots get got small town in i lawsuit inwards a fortnights or in i lawsuit on Saturdays. Permitted securities are those that are non listed on a stock telephone substitution but are listed on other exchanges inwards India. So they are permitted to live on traded on BSE. Odd lots cannot live on easily transacted on the stock telephone substitution too so they are illiquid inwards nature.
4. Arbitration
Arbitration is a quasi-judicial procedure to resolve a dispute which is faster too inexpensive. The stock telephone substitution facilitates the procedure of arbitration betwixt the fellow member too their clients. The disputes betwixt the parties are resolved through arbitration inwards accordance alongside the by-laws of the exchange. Arbitration is required inwards the matters such every bit small town of claims, differences too disputes betwixt i fellow member too another, betwixt a fellow member too his clients, sub-brokers or authorised clerks etc.
5. Arbitrage
Arbitrage is undertaken to brand a turn a profit out of differences inwards prices of a safety inwards 2 dissimilar markets. It is a highly skilled speculative activity. If the prices of a safety differ substantially inwards the 2 stock markets, the speculator purchases the safety inwards the marketplace position where it is inexpensive too sells it at a turn a profit inwards around other marketplace position where it is quoted high too thus makes huge profit. The speculator has to human activeness real fast since the prices are highly sensitive too they may instruct equalised inside a brusque bridge of time.
The arbitrage may live on carried on betwixt the 2 markets inside the province or inwards 2 dissimilar countries. The onetime is called 'domestic arbitrage' too the latter 'foreign arbitrage'. Arbitrage ultimately helps inwards equalising the prices of securities at dissimilar places; hence, it is beneficial to market. The brokers who send arbitrage activity are called arbitragers.
6. Auction
An auction is a machinery utilised past times the telephone substitution to fulfil its obligation to a counter political party fellow member when a fellow member fails to deliver expert securities or brand the payment. The stock exchange, inwards such cases, arranges to purchase expert securities through auction too deliver them to the buying broker or arranges to realise the cash too pay it to the selling broker.
7. At Best Order
It is an lodge from an investor for the purchase or sale of securities wherein the investor does non specify a cost at which the purchase or sale of securities should live on made past times broker on his behalf. Such lodge must live on executed past times the broker at best possible price. The customer may likewise cook a fourth dimension frame inside which the lodge has to live on executed. e. g. "Buy 200 Reliance Industries at best".
8. Authorised Clerk
An authorised clerk is a representative appointed past times a stock broker to assist him inwards the securities trading. Influenza A virus subtype H5N1 broker cannot stay nowadays all the fourth dimension on trading flooring of stock exchange, hence he requires assistants to send out trading activities on his behalf. As per the rules of the stock exchange, each broker tin employ a specified number of authorised clerks to transact his business. They are likewise called 'member assistants'. At Bombay, Madras & Calcutta Stock exchanges the number of authorised clerks allowed past times a broker are 5, three too 8 respectively. Generally, authorised clerks are given ability of attorney to human activeness on behalf of broker & hence they tin sign on behalf of brokers.
9. Bad Delivery Cell
A delivery of shares turns out to live on bad if in that location is a fellowship objection on concern human relationship of signature difference, or if shares are fake, forged or stolen etc. In such a illustration the investor tin approach the bad delivery jail mobile telephone of stock telephone substitution through his broker for correction or replacement alongside expert delivery.
10. Bid too Offer
Bid refers to the cost of a part which a prospective buyer is ready to pay for item scrip. Offer is the cost at which a part is offered for a sale on stock exchange.
11. Brokerage
Brokerage way the committee charged past times a broker for purchase or sale of securities done through him. The maximum brokerage chargeable every bit stipulated past times SEBI is at nowadays 2.5 % of the merchandise value.
12. BOLT
Bombay Stock Exchange has introduced BOLT. That is, BSE - On - Line - Trading - System for listed securities. Trading is lodge driven every bit quote driver organisation is discontinued. For this utilisation BSE classified the listed securities into v categories. Viz. A, B1, B2, F, G too Z. Out of these A, B1 too B2 groups stand upwards for equity segment. Group F represents securities which get got fixed income, 'G' grouping represents Government Securities whereas 'Z' represents those companies which failed to comply alongside listing norms or failed to redress investors' complaints or failed to comply alongside depository requirements. Trading of securities of listed companies of other exchanges is likewise permitted too these securities are categorised inwards 'Permitted Securities.'
13. 'Badla' or Carry Forward Trading
Carry Forward or 'Badla' refers to the trading inwards which the small town of a transaction is postponed to the side past times side small town menstruum on payment of around charges past times way of involvement known every bit Badla Charges. Carryover or Badla is a facility given to the speculator past times the other political party to send frontwards the transaction from i small town menstruum to another. The scrips inwards specified categories (i.e. Group A) lone could live on carried forward. Badla charges vary from menstruum to menstruum too are fixed fortnightly.
14. Bulls
Bulls are those brokers of stock telephone substitution who are real optimistic of the ascension inwards prices of securities. Hence, they instruct on buying shares inwards expectation of selling them at higher prices later. Thus, inwards a bull marketplace position in that location volition live on excess of purchase over sales. Bulls are likewise called 'Tejiwallas'.
15. Bears
Bears are those fellow member brokers of stock telephone substitution who are ever pessimistic inwards approach. They aspect a autumn inwards prices of securities. Hence, they instruct on selling securities. They are likewise called Mandiwallas. Influenza A virus subtype H5N1 Bearish marketplace position refers to a marketplace position where prices of shares are falling continuously where in that location are excess of sales over purchases.
16. Blank transfers
Blank transfers facilitate speculative activities through badla transactions. If a seller (or transferer) of safety exactly signs the transfer shape without specifying the cite of buyer (or transferee), it is called a blank transfer. Badla transactions involve temporary purchases too sales of securities. If they get got to live on registered, it involves lot of inconveniences due to registration fees, postage stamp duty, etc. Hence, to avoid such inconveniences blank transfers are increasingly used to carryover the transaction.
17. Circuit breakers
Its a machinery past times which Stock Exchanges temporarily suspend the trading inwards a safety when its prices are volatile too tend to breach the cost band.
18. Clearing
Clearing is a procedure through which all transactions betwixt members of stock telephone substitution are settled through multilateral netting.
19. Company objection
For transfer of a safety a transferer sends a scrip certificate along alongside the transfer deed to the company. In around cases the fellowship refuses the registration of transfer on concern human relationship of signature difference, or fake, forged or stolen shares. In such cases the fellowship returns the documents sent along alongside a alphabetic lineament which is termed every bit a 'company objection'.
20. Cornering
It refers to the procedure of belongings entire furnish of a item safety past times an private or a grouping of individuals alongside a catch to dictating terms to the brusque sellers too earning to a greater extent than profits.
21. Clearing Settlement
Under this method, the transactions are cleared too settled through the clearing house. Usually those securities which are oftentimes traded too are usually inwards need are cleared through the clearing house.
22. Client brokers
These brokers do elementary braking concern past times acting every bit intermediaries betwixt the buyers too sellers too they earn solely brokerage for their services rendered to the clients.
23. Cum-bonus
The shares are called cum-bonus when a purchaser is entitled to have the electrical flow bonus declared past times company.
24. Cum-rights
The part is described every bit cum-rights when a purchaser is entitled to have the current-rights shares declared past times the company.
25. Day order
A 24-hour interval order, every bit the cite suggests, is an lodge which is valid for the 24-hour interval on which it is entered. If the lodge cannot live on executed during the day, it gets cancelled automatically.
26. Discretionary order
It is an lodge placed past times a customer to purchase or sell shares at whatever cost the broker thinks reasonable. This is possible solely when the customer has consummate organized faith on the broker.
27. Ex-bonus
The part is described every bit ex-bonus when a purchaser is non entitled to have the electrical flow bonus, the right to which remains alongside the seller.
28. Ex-rights
The part is described every bit ex-rights when a purchaser is non entitled to have the electrical flow rights, the right of which remains alongside the seller.
29. Forward trading
Forward trading refers to trading where contracts traded today are settled at around futurity appointment at prices decided today.
30. Good-bad delivery
A part certificate together alongside its transfer shape which meets all the requirements of championship transfer from seller to buyer is called expert delivery inwards the market.
Delivery of a part certificate, together alongside a deed to transfer, which does non reckon requirements of championship transfer from seller to buyer is called a bad delivery inwards the market.
31. Hand Delivery Settlement
Under this method, the delivery of securities too payment are affected inside the fourth dimension stipulated inwards the understanding or inside xiv days from the appointment of contract whichever is earlier. Most of the transactions are conducted on the ground of mitt delivery settlements.
32. Insider Trading
It way trading inwards a company's shares past times a somebody who is associated alongside that company. As a final result of his association he has a surreptitious cost sensitive data close the fellowship such every bit expansion plans, fiscal results, takeover bid, bonus or right number etc. He tries to exploit that data too maximise his turn a profit through trading inwards the scrip of that company. It is a criminal offence too hence prohibited past times stock exchanges.
33. Jumbo certificate
A jumbo part certificate is a unmarried composite part certificate issued past times consolidating-a large number of marketplace position lots.
34. Jobbers
A jobber is a professional person independent broker who deals inwards securities on his ain behalf. Like brokers he does non purchase or sell securities on behalf of a customer for a commission. Instead he purchases the securities inwards his ain cite too sells them out when the prices of those securities increment too thereby earn a profit. He is similar a stockist of safety of dissimilar companies. He buys securities every bit a owner, keeps them for a real brusque menstruum too sells them for turn a profit known every bit 'jobbers turn'. He plant for a turn a profit too non for a commission.
35. Lame ducks
Lame ducks are demeanour brokers (expecting decline inwards prices) who ultimately sell the securities ultimately at a loss past times making incorrect moves. They lose inwards marketplace position due to the incorrect prediction that part prices volition decline but inwards reality they increase. Generally, they contract to sell securities which they do non posses, therefore, they are caught inwards a incorrect foot.
36. Limit order
It is an lodge for the purchase or sale of a scrip at a cook cost specified past times the client. e.g. "Sell 100 TISCO shares @ Rs. 280".
37. Market Lot
Market lot refers to the minimum number of shares of a item safety that must live on transacted on the exchange. Market lot may live on 10 shares, xx shares, 50 shares or 100 shares. Multiples of the marketplace position lot may likewise live on transacted. In demat scrips the marketplace position lot is 1 share.
38. No-delivery period
Whenever a majority closure or tape appointment is announced past times a company, the Exchange sets a no-delivery menstruum for that security. During this period, trading is permitted inwards that security. However, these trades are settled solely after the no-delivery menstruum is over. This is done to ensure that investor's entitlement for corporate benefits is clearly determined.
39. Odd lot
A number of shares that are less than the marketplace position lot are known every bit strange lots. Under the scrip based delivery system, these shares are unremarkably traded at a discount to the prevailing cost for the marketable lot.
40. Order-driven trading
It is a trading initiated past times purchase I sell orders, from investors / brokers.
41. Over-the Counter trading
Trading inwards those stocks which are non listed on a stock exchange.
42. Open order
It is an lodge to purchase or sell a safety received from a customer without fixing whatsoever fourth dimension bound or cost bound on the execution of the order. It is similar to discretionary order.
43. Pay-in
Pay-in 24-hour interval is the designated 24-hour interval on which the securities or funds are delivered / paid inwards past times the members to the clearing menage of the Exchange.
44. Pay-out
Pay-out is the designated 24-hour interval on which securities too funds are delivered I paid out to the members past times the clearing menage of the Exchange.
45. Price band
The daily / weekly cost limits inside which cost of a safety is allowed to ascension or fall.
46. Price rigging (or Rigging the market)
When a somebody or persons acting inwards concert alongside each other collude to artificially increment or decrease the cost of a security, that procedure is called cost rigging or rigging the market. It is an undesirable activity since it prevents the costless interplay of need too supply. Stock exchanges too SEBI essay to discourage such practice.
47. Quote-driven trading
Trading where brokers / marketplace position makers give purchase I sell quote for a scrip simultaneously.
48. Record date
Record appointment is the appointment on which the beneficial ownership of an investor is entered into the register of members. Such a fellow member is entitled to instruct all the corporate benefits.
49. Rematerialisation of shares
It is the procedure through which shares held inwards electronic shape inwards depository are converted into physical form.
50. Screen based trading
When buying / selling of securities is done using computers too matching of trades is done past times a stock telephone substitution computer.
51. Settlement
It refers to the scrip-wise netting of trades past times a broker after the trading menstruum is over.
52. Settlement guarantee
Settlement guarantee is the guarantee provided past times the clearing company for small town of all trades fifty-fifty if a political party defaults to deliver securities or pay cash.
53. Splitting /Consolidation
The procedure of splitting shares that get got a high human face upwards value into shares of a lower human face upwards value is known every bit splitting. The opposite procedure of combining shares that get got a depression human face upwards value into i part of higher value is known every bit consolidation.
54. Spot trading
Trading past times delivery of shares too payment for the same on the appointment of purchase or on the side past times side day.
55. Stop transfer
It is an education given past times a registered holder of shares to the fellowship to halt the transfer of shares inwards his cite every bit a final result of theft, misplacement, loss of part certificates.
56. Stags
Stags are those members inwards part marketplace position who neither purchase nor sell securities inwards stock exchange. They exactly apply for subscription to novel issues expecting to sell them at a higher cost after when the issues are quoted on stock exchange. Generally, stags purchase novel issues too sell them on allocation or fifty-fifty before allocation for a profit. Since they human activeness fast they are called stags - a fast runner.
57. Spot delivery settlement
These transactions are to live on settled past times delivery too payment on the appointment of contract or on the side past times side day.
58. Special delivery
Delivery too payment made anytime exceeding xiv days, but non exceeding 2 months, next the appointment of the contract every bit may live on stipulated when entering into the cope too permitted past times the Governing Board or the President.
59. Stop Loss Order
It is an lodge past times a customer to sell every bit shortly every bit the prices autumn upto a item grade or to purchase when the cost rises upwards to a specified level. This is mainly to protect the clients against a heavy autumn or ascension inwards prices so that they may non endure to a greater extent than than the pre-specified amount.
60. Trade guarantee
Trade guarantee is the guarantee provided past times the clearing company for all trades that are executed on the exchange. In contrast, at the small town guarantee, guarantees the small town of merchandise after multilateral netting.
61. Transfer deed
A transfer deed is a shape that is used for effecting transfer of shares or debentures too is valid for a specified period. It should live on sent, to the fellowship along alongside the part certificate for registering the transfer. The transfer deed must live on duly stamped too signed past times or on behalf of the transferor too transferee too consummate inwards all respects.
62. Wash Sales
Wash sales is a form of fictitious transaction through which a speculator is able to reap huge turn a profit past times creating a misleading moving-picture exhibit inwards the market. He makes fictitious sale of a safety too so makes a purchase of the same safety at higher cost through around other broker. Thus, he creates a misleading sentiment inwards the marketplace position every bit if the cost of a safety inwards inquiry is rising. As a final result of such mistaken opinion, when the cost of the safety genuinely rises the speculator sells it to earn a expert profit. Wash sale is a form of cheating hence stock exchanges impose severe penalisation on such sales.
63. Wolves
These are the brokers who are fast too smart speculators. They speedily perceive changes inwards the trends inwards the marketplace position too merchandise fast to brand profit. They are non by too large caught inwards the incorrect foot.
