The Securities Contract (Regulation) Act, 1956 [SCRA] defines ‘Stock Exchange’ as any body of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities.
The stock exchanges in India, under the overall supervision of the regulatory authority, the Securities and Exchange Board of India (SEBI), provide a trading platform, where buyers and sellers can meet to transact in securities. The trading platform provided by Indian exchanges is an electronic one and
there is no need for buyers and sellers to meet at a physical location to trade.
Stock exchange could be a regional stock exchange whose area of operation/jurisdiction is specified at the time of its recognition or national exchanges, which are permitted to have nationwide trading since inception.
In India there are two stock exchanges dealing with equities. i.e. National Stock Exchange(NSE) & Bombay Stock Exchange (BSE).
Stock Exchange
| Financial Management, Financial Market, Financial Service, Forex Market | 0 comments »Global Depository Receipts (GDRs) may be defined as a global finance vehicle that allows an issuer to raise capital simultaneously in two or markets through a global offering. GDRs may be used in public or private markets inside or outside US. GDR, a negotiable certificate usually represents company’s traded equity/debt. The underlying shares correspond to the GDRs in a fixed ratio say 1 GDR=10 shares.
Read Full post!American Depositary Receipts (ADR) is a U.S. dollar($) denominated form of share in a non-U.S. company. It represents the shares of the foreign company held on credit by a custodian bank in respective home country and it bears the corporate and economic rights of the foreign shares, subject to the terms and conditions specified on the ADR certificate.
ADRs can be represented by a physical ADR certificate. The terms "ADR" and "ADS" are habitually used interchangeably. ADSs provide U.S. investors with a suitable way to invest in securities in a foreign country and pave path to trade non-U.S. securities in the U.S. stock exchanges.
ADSs are issued by a depository bank. They are traded in the same mode as shares in U.S. companies, on the the American Stock Exchange (AMEX) and New York Stock Exchange (NYSE) or quoted on NASDAQ and the over-the-counter (OTC) market.
Although ADRs are U.S. dollar denominated certificates and pay dividends in U.S. dollars, they do not get rid of the currency exposure associated with an investment in a non-U.S. company.
