securities law & compliance

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Querist : Anonymous

Querist : Anonymous (Querist)

01 July 2010 1)what is call option & put Option.
2) BOLT,NEAT,MCFS,SPDR,WMA,OMO,FSO,STR,FCCB,CIS,SPN.

CS Richa Sharma

CS Richa Sharma (Expert)
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01 July 2010 A Call option is an option to buy a stock at a specific price on or before a certain date. In this way, Call options are like security deposits.Call options usually increase in value as the value of the underlying instrument increases.When you buy a Call option, the price you pay for it, called the option premium, secures your right to buy that certain stock at a specified price, called the strike price.If you decide not to use the option to buy the stock, and you are not obligated to, your only cost is the option premium.

Put options are options to sell a stock at a specific price on or before a certain date. In this way, Put options are like insurance policies.With a Put option, you can "insure" a stock by fixing a selling price.

Gaurav Barmera

Gaurav Barmera (Expert)
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01 July 2010 in simple word, call option means right to purchase and put option means right to sale underlying asset at a specified date and rate. it is only an option so no party is under obligation. these both option can be purchased and sold, it other words if any body purchase call option, he is buying a right to purchase a asset at a pre determined rate so at the time of entering into contract he has to give option premium to the seller of option, by this way his liability is limited to premium only. if in future rate is not favourable to him he may refuse to fulfill the contract and premium amount will be forfeited by the seller. advantage of entering into this type of contract is minimisation of loss. but profit may be maximum. put option is just reversed of it.

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CS Richa Sharma

CS Richa Sharma (Expert)
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01 July 2010 BOLT: To facilitate smooth transactions, BSE had replaced its open outcry system with the BSE On-line Trading (BOLT) facility in 1995. This totally automated, screen-based trading in securities was put into practice nation-wide within a record time of just 50 days. BOLT has been certified by DNV for conforming to ISO 27001:2005 security standards.
The capacity of the BOLT platform stands presently enhanced to 80 lakh orders per day.

NEAT: NSE is the first exchange in the world to use satellite communication technology for trading. Its trading system, called National Exchange for Automated Trading (NEAT), is a state of-the-art client server based application.

OMO: OMO or Open Market Operations is a market regulating mechanism often resorted to by Reserve Bank of India. Under OMO Operations Reserve Bank of India as a market regulator keeps buying or/and selling securities through it's open market window. It's decision to sell or/and buy securities is influenced by factors such as overall liquidity in the system, disciplining a sentiment driven market, signaling of likely movements in interest rate structure, etc.

CS Richa Sharma

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01 July 2010 FCCB: FCCB are the freely convertible bonds. It is convertible to any foreign currency .For example: If you buying an Indian FCCB in US then it means you can invest using your dollars and they will be converted by the further investment. And any time you can get your money back in your currency .

CS Richa Sharma

CS Richa Sharma (Expert)
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01 July 2010 *BOLT:Bombay stock exchange OnLine Trading
*NEAT:National Stock Exchange Automated Trading
*MCFS:Modified Carry-Forward System
*SPDR:Standard And Poors Depository Receipt
*WMA:Ways & Means Advance
*OMO:Open Market Operation
*FSO:Foreign Structured Obligation
*STR:Suspicious Transaction Report
*FCCB:Foreign Currency Convertible Bonds
*CIS:Collective Investment Scheme
*SPN:Secured Premium Notes

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2010 thanks for the answers to all .