Introduction
Stock exchanges to some extent play an important role as indicators, reflecting
the performance of the country's economic state of health. Stock market is a
place where securities are bought and sold. It is exposed to a high degree of
volatility, prices fluctuate within minutes and are determined by the demand
and supply of stocks at a given time. Stock brokers are the ones who buys and
sells securities on behalf of individuals and institutions for some commission.
The Securities and Exchange Board of India (SEBI) is the authorised body which
regulates the operations of stock exchanges, banks and other financial
institutions. The past performances in the capital markets specially the
securities scam by Harshad Mehta has led to tightening of the operations by
SEBI. In addition the international trading and investment exposure has made it
imperative to better operational efficiancy. With the view to improve,
discipline and bring greater transparency in this sector, constant efforts are
being made and to a certain extent improvements have been made.
As the condition of capital markets are constantly improving, it has started
drawing attention of lot more people than before. On the career related
aspects, professionals have opportunities to choose from for a wide range of
jobs available in a number of organisations in this sector and one can expect
to have good times ahead of him.
Nature of Work
In India capital markets are experiencing radical reformation. The stricter
regulatory framework alongwith introduction of information and technology has
added more professionalism to the industry. The most common areas of work in
the capital markets, one can look forward to include the following.
Stock Brokers
Given the present complex situation of our capital markets, stock brokers have
to face challenging tasks. The specialized knowledge and professional acumen
required has made the job of brokers highly skillful. The work of stock brokers
depends upon the kind operations they engage themselves into. Some of the
brokers like to practice with individual clients while others work for
institutions. Brokers who work for institutional investors are often called
securities traders. Many prefer to work as dealers, advisors and securities
analysts. Security analysts are those who advise companies on floatations of
shares as they are expected to have sound knowledge of capital markets. Brokers
also work in the financial sector with banks, mutual funds, consultancies,
insurance companies, pension funds and financial institutions etc.
Investment Analysis
Investments in todays capital markets is not something which can always
fructify, based on mere guesses. It requires thorough scientific research and
analysis to make something out of it. Investment analysts are those who carry
out the very same job and help fund managers manage their investments. They can
work as stock broking analysts or as institutional analysts. The expertise and
experience, though it varies from individual to individual, in the subject of
capital markets makes them suitable to handle high value investment decisions
of merchant banks, insurance and pension funds and other financial institutions.
With diversification of financial sector into vast and complex fields,
investment analysts usually specialize in a particular field so that they can
give their best.
The work of investment analysts include studying the companies financial
reports, assess various statistical information, estimate demand and supply
factors, profitability projections, compare financial results, visit the
organisaton, meet the management, survey the industry as a whole and on the
basis of the available information, finally conclude to a decision.
Equity Analysis
Investment markets all over the world are witnessing major changes. Indian
markets are no exception. The amount of professionalism and complexity of
financial markets has led to the adoption of most advanced techniques and
approach while dealing in securities. Increasing presence of both domestic and
foreign players in the indian markets have further added to the demand for
having a more systematic approach. Therefore arose the need for professionals
who can specialize in the fields of capital markets. Equity analyst is one such
specialist who does research and helps in systematic and better financial
investments. Given the prevailing market conditions, equity analysts are in for
favourable times ahead. There work is quite similar to that of investment
analysts. The job mainly involves research activities apart from analysing
financial performance, making profit projections, conducting interviews with
the executives of c! ompanies, making field visits and market research, etc.
What are the services offered by stock
brokers?
Stock brokers offer services such as buying and selling on behalf of investors.
They also provide advisory services. If stock brokers are also registered as a
portfolio manager, they can offer PMS services. Some of the bigger brokers also
publish their own research reports which are available at a cost for investors.
What to do in case of a dispute?
If there is a dispute between you and your stock broker, bring the facts of the
case immediately to the notice of stock broker. Follow it up with written
complaints if the same is not resolved within reasonable time. If still nothing
is done, write to the investor grievance cell of the stock exchange of which he
is the member with all the facts of the case and necessary documents. Follow it
up. You can also write to SEBI if your complaint is not resolved. It is
possible for you to write your complaints online. You may get the relevant
details from the websites of stock exchanges (www.nseindia.com, www.bseindia.com
and of SEBI which is www.sebi.gov.in).