Infrastructure Providers | Video 4 of Stock Investing Ecosystem Series | Stock Market Basics


In today’s video, we’ll talk about
infrastructure providers of the stock market ecosystem. Infrastructure providers are the comapnies which enable the transactions
and functioning of different instruments. It means all the digital
and physical infrastructures required for the investor to invest
is provided by the infrastructure provider. If you don’t know about instruments,
do watch the third video of this series, in which we have covered
different instruments in detail. The most common example of
infrastructure provider is a stock exchange. Just like vegetable market is a place
where you can buy different vegetables, similarly, a stock exchange is
a place or platform where you can buy or sell different stocks. A stock exchange is a place where, with the help of a broker
and the stock exchange, two investors can buy or sell stocks
without knowing each other. You must have heard about
Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). They are the two major
stock exchanges of India where people buy or sell stocks. BSE was Asia’s first stock exchange and over 5000 companies are listed on it. On the other hand,
around 1600 companies are listed on NSE. And just like you can buy a phone
or any other item both at Flipkart and Amazon, similarly, you can buy stocks
both at BSE and NSE, provided that stock is listed
and available to buy on that exchange. Second infrastructure providers
are depositories. Depositories are the companies who store the stocks bought by you
in electronic form. Like, investors used to
get a stock certificate earlier which you would store physically. Similarly, in this digital age, the stocks bought by you
are stored with the depositories. You can store stocks with the depositories
through your Demat account. Depositories help you to transfer stocks and perform various other functions,
like checking your statements, checking what stocks you do have, and providing information
related to your transactions. An investor doesn’t interact much
with the depositories, because, generally, your broker
keeps in touch with the depositories and provides you all information
related to your portfolio. Central Depository Services Limited (CDSL) and National Securities
Depository Limited (NSDL) are the two major depositories of India. The third major infrastructure providers
are RTAs, i.e, Registrar and Transfer of Agents. Just like there are depositories
in case of stocks, there are RTAs in case of mutual funds. All trades of a mutual fund investor, like subscription,
redemption, transfer, etc. are recorded by RTAs. RTAs also help mutual fund investors in providing their portfolio
and statements to them. Whenever you invest
or transact in a mutual fund, whether directly through AMCs,
i.e, Asset Management Companies or through platforms like
Zerodha Coin, Grow or Scripbox, your transactions are processed by RTAs. And RTA coordinates with AMC to add or delete units from your portfolio. Cams and Karvy are
the two biggest RTAs of India. The fourth infrastructure providers
are AMFI, i.e, Association of Mutual Funds of India. It is an association of
44 active AMCs of India which helps in the development
and promotion of mutual funds. You must have seen the ads
“Mutual Funds Sahi Hai.” These ads and the promotion campaign are also sponsored and launched by AMFI. So this was all about the major
infrastructure providers. In the next video, we’ll tell you about SEBI, i.e,
Securities and Exchange Board of India and intermediaries which are the people or companies that perform important tasks and functions
in stock market ecosystem. So subscribe this channel
and press the bell icon so that you get a notification as soon as
the next video of this series is out. And if you found this video informative,
do share it with your friends so that they can also
easily understand stock investing. Happy investing.

8 Replies to “Infrastructure Providers | Video 4 of Stock Investing Ecosystem Series | Stock Market Basics

  1. Enable CC/Subtitles to view the video with english subtitles.

    You can watch the whole series here: https://www.youtube.com/watch?v=huE4TKAOt74&list=PLW7s8_EjCL42eQcB7Fbt3MkWDxxUjoinf

  2. e-Commerce related valuable Information के लिए आप यह ब्लॉग हिन्दी में पढ़ सकते हैं l https://www.capbrief.com/what-is-e-commerce-in-hindi/

  3. सर कोइ स्टोक खराब परफोर्मेंस कर रहा हो तो इसे समोलकेस से रखना है या इसे बहार कर के नया स्टोक एड करना है ये हमे कैसे पता चलेगा मुचललफंड मै तो मैनेजर अपने हिसाब से करते है क्या समोलकेस मै उसी कोइ सिस्टम है कया

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