PARTICIPANTS OF SHARE MARKET | பங்குச் சந்தையின் பங்கேற்பாளர்கள்

 

INTRODUCTION:

Imagine a situation, where you are going to buy a car and you go to the nearby showroom.

here there are three people involved

1. Buyer (You ).

2. Seller ( The car showroom ).

3. Supplier ( The car manufacturer ).

Similarly, in the case of the share market, the public or the investors are the buyers, companies are the sellers and to facilitate the process there is a stock exchange platform. The fuel for everyone here is the capital/money that the people invest.

WHO ARE THOSE INVESTORS? 

We had studied in economics that capital is the lubricant that keeps the economy moving and this capital is floated by the investors to support the quantity of wealth that they invest.

The types of investors according to the stock market are:-

1. Retail Investors: Individual investors who invest or trade from their personal demat account.
2. High Net-worth Individuals : They are also Individual investors, but they invest/trade with larger amounts E.g: Rakesh Jhunjhunwala, Vijay Kedia, etc...
3. Institutional Investors: They are Mutual Funds, Banks, Financial Instituitions, Foreign Investors, Insurance companies, etc...

INTERMEDIARIES:

STOCKBROKERS:

When it comes to managing your own account or Demat account, you can find a stockbroker who manages it for you. Stockbrokers act as an intermediary between investors and stock exchanges by facilitating the exchange of securities. It is for this service that they charge brokerage fees.

DEPOSITORY PARTICIPANTS:

Depository participants are an important body in the stock market because they are the one who deals with our transaction. Suppose if you want to buy a share you will place the order for the share in your Demat account. Now, these Depository participants are the persons who will hold your transactions and find a person who is selling the share and the exchange the shares.

These institutions hold the securities electronically for the investors. and hence they are called Depositories.

In India, there are two depositories registered with SEBI:-

1. NSDL ( National Securities Depository Limited )
2. CDSL ( Central Depositories Service Limited )

CLEARING CORPORATION:

The Clearing corporation is like a protecting body to the participants of the stock market. By monitoring the stock market, they ensure that all the players meet their obligations to deliver funds and securities. As a legal entity, they ensure that transactions are settled when they are executed on the stock market. Afterward, securities are safeguarded by a custodian.

Apart from the above-mentioned participants of the stock market, there are also other few members which we will see in detail in another post. But the above mentioned are the most important participants every investor or a beginner should know.

see yaa in another interesting and informative post.

DISCLAIMER:-

The content of this site is only for educational purpose. I am not SEBI Registered. The motive of this site is to share my knowledge on share market to new budding investors and others who are learning about stock market

My Kind request to my site viewers, Before taking any decision please do self analysis, consult or discuss with Your financial Advisor .

மறுப்பு:-

இந்த தளத்தின் உள்ளடக்கம் கல்வி நோக்கத்திற்காக மட்டுமே. நான் செபியில் பதிவு செய்யப்படவில்லை. இந்த தளத்தின் நோக்கம், பங்குச் சந்தையைப் பற்றிய எனது அறிவை புதிய வளரும் முதலீட்டாளர்கள் மற்றும் பங்குச் சந்தையைப் பற்றி அறிந்துகொள்ளும் மற்றவர்களுக்குப் பகிர்வதாகும்

எனது தள பார்வையாளர்களுக்கு எனது அன்பான வேண்டுகோள், எந்தவொரு முடிவையும் எடுப்பதற்கு முன், சுய பகுப்பாய்வு செய்யுங்கள், ஆலோசனை செய்யுங்கள் அல்லது உங்கள் நிதி ஆலோசகருடன் விவாதிக்கவும்.