Capital Market (Dealers) Module

CAPITAL MARKET (DEALERS) MODULE
CURRICULUM
1.Trading
Introduction
Neat System
Market Types – Normal Market, Odd Lot Market, Retail Debt Market, Auction Market
Corporate Hierarchy
Local Database
Market Phases - Opening, Open Phase, Market Close, Surcon
Logging on
Log Off/Exit from the Application
Neat Screen
Invoking An Inquiry Screen - Market Watch, Security Descriptor, Market by Price, Previous Trades, Outstanding Orders, Activity Log, Order Status, Snap Quote, Market Movement, Market Inquiry, Auction Inquiry, Security/Portfolio List, Multiple Index Broadcast and Graph, Online Backup, Basket trading, Buy Back Trades, Supplementary Functions
Order Management - Entering Orders, Order Modification, Order Cancellation, Order Matching
Trade Management – Trade Modification, Trade Cancellation
Auction - Entering Auction Orders, Auction Order Modification, Auction Order Cancellation, Auction Order Matching
Limited Physical Market
Retail Debt Market (RDM)
Trading Information Downloaded to Members
Internet Broking
Wireless Application Protocol

2.Clearing and Settlement
Introduction - Transaction Cycle, Settlement Process, Settlement Agencies, Risks in Settlement
Settlement Cycle
Securities Settlement
Funds Settlement
Shortages Handling
Risk Containment Measures - Capital Adequacy Requirements, Margins, Settlement Guarantee, No-Delivery Period
International Securities Identification Number
Dematerialisation And Electronic Transfer of Securities
Investor Protection Fund
Clearing Software – Reports
File Transfer Protocol

3.Trading Membership
Stock Brokers – Introduction, Membership in NSE
Sub-Brokers
Broker-Clients Relations - Know Your Client, Unique Client Code, Margins from the Clients, Execution of Orders, Accumulation of Orders, Contract Note, Payments/Delivery of Securities to the Clients, Brokerage, Payment of Stamp Duty, Segregation of Bank Accounts
Sub-Broker-Client Relations - Know Your Client, Orders, Purchase/Sale Note, Payments/Delivery of Securities, Sub-Brokerage
Dispute, Arbitration and Appeal
Code of advertisement

4.Legal Framework
Securities Contracts (Regulation) Act, 1956
Securities Contracts (Regulation) Rules, 1957
Securities and Exchange Board of India Act, 1992
SEBI (Stock Brokers & Sub-Brokers) Rules, 1992
SEBI (Stock Brokers & Sub-Brokers) Regulations, 1992
SEBI (Insider Trading) Regulations, 1992
SEBI (Prohibition of Fraudulent And Unfair Trade Practices Relating to Securities Markets) Regulations, 1995
The Depositories Act, 1996
Indian Contract Act, 1872
The Companies Act, 1956
Public Debt Act, 1944
Income Tax Act, 1961

5.An Overview of the Indian Securities Market
Introduction - Market Segments, Products and Participants
A Profile - Dependence on Securities Market, Investor Population
Primary Market
Secondary Market
Derivatives Market
Market Design - Primary Market, Secondary Market, Derivatives Market
Regulatory Framework
Research in Securities Market
Testing and Certification

6.Fundamental Valuation Concepts
Elementary Statistical Concepts - Mean, Geometric Mean, Variance, Standard Deviation, Coefficient of Variation, Covariance, Correlation Coefficient, Normal Distribution
Time Value of Money – Future Value of A Single Cash Flow, Future Value of an Annuity, Present Value of a Single Cash Flow, Present Value of an Annuity
Understanding Financial Statements - Comparative Financial Statements, Common Size Statements, Ratio Analysis
Equity Research - Bhav Copy Database, Index Database, Order Book Snapshots, Database, Trades Database