SEPM Presentaton

8/7/2019 SEPM Presentaton

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Group A SharesGroup A Shares Group B SharesGroup B Shares Group C SharesGroup C Shares

ExamplesExamples ExamplesExamples ExamplesExamples



The important function of a broker is to execute hisclients orders swiftly and carefully.

The broker must obtain specific instructions as to:

1. The name of the company whose securities have to bebought or sold.

2. The precise number of share required.

3. The limit / market price condition etc.



ABO (At Best Order) Day Order

Limit Order GTC ( A Good Till Cancelled)

Immediate or Cancel Order GTD ( A Good Till Days)

DO (Discretionary Order) IOC ( Immediate or Cancel

Order) Limited Discretionary Order MKT (Market) Order

Stop Loss Order ATO (At The Open)



1. Spot Delivery Settlement

2. Hand Delivery Settlement

3. Clearing Settlement

4. Special Delivery Settlement



The rules and procedures for buying and selling securities

are the same in all the recognized stock exchanges in

India. The procedures are listed below:



A. Purchase of Shares:

(i) Purchase of existing shares from the Market:-

Placing the order with the broker Receipt of Contract Note

Intimation of deliverySending shares for transfer



(i) Purchase of shares being issued by a Company:-

Filling application formwith application money

Receipt of allotmentletter/refund order

Payment of allotment

money and call money

Endorsement of payment

on share certificate



B. Sale of Shares:

Placing the order with the broker Receipt of contract note

elivery of share certificateReceipt of payment



y

Carry forward & badla charges:-

It refers to postponement of the settlement of a

transaction till the next settlement period. It is nothing

but facility to carry forward the transaction form onesettlement period to another. It involves payment of

some charges known as BADLA CHARGES by the

speculator. Badla charges are fixed based on demand and

supply condition in the market.



y Stock Exchanges allow speculative trading in shares listed

in the forward list, allowing thereby for short-selling andlong-buying of shares.

y All transactions on the specified list are taken stock on

the badla day, once a week, being every Friday which isnow on a weekly basis. The mechanics of these badla

transactions are quite intricate, though pretty logical.



Two things may happen on the badla day as far asspeculative transactions are concerned:

1. They are carried forward from one settlement period to

the next by drawing up a fresh set of contract notes togive effect to the carry forward.

2. Either an interest called Seedha Badla is paid to the seller

by the buyer or charges as Undha Badla is paid by theseller to the buyer depending on the net overbought or

oversold position in any scrip.



y All business transacted in any week, between a Monday

and Friday of the week, is settled on the next Saturday

(riot the one immediately following). The price at whichthey are actually bought or sold is considered for the

settlement. Delivery is made on the following Monday.

y Settlement and delivery in respect of specified shares

take place as between the members and through the

caring house. Both delivery of shares and, payment or

receipt of money would he through the clearing.



After the Badla Day

y All deliveries of shares/payments arising out of the badla

day adjustments have to be settled with respective

deliveries and payments before the next badla day.

y The transactions contracted by the member in respect of

specified shares are entered into the "Settlement

Register." The transactions executed during thesettlement period with the clients/other members are

balanced in this register and the outstanding transactions

are adjusted at the "Carry Forward" or the "Havala" rates

on the badla day.



Client Broker Bulls / Tejiwallas

Floor Brokers Bears / Mandiwallas

Jobbers (Taravaniwallas) Stags

Badla Financier / Badliwallas Wolves

Arbitragers Lame ducks



y Option Dealing

yWash sales

y Arbitrage

y Cornering

y Rigging the market

y Blank transfers

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