MODULE · STEP 1 OF 9

Who's in the market and who watches it

WATCHEXPLORE

Everyone in the market

Watch the market fill up.

When you buy a share, you're one of many players. Some trade , some help trades happen, and one watches them all.

Lesson notes

A written summary of everything covered in this interactive lesson.

Everyone in the market

Watch the market fill up.

When you buy a share, you're one of many players. Some **trade**, some **help** trades happen, and one **watches** them all.

Who trades

Anyone who buys or sells in the market is a **market participant**. They come in a few kinds:

  • Retail investors people like you — Individuals trading their own money.
  • NRIs Indians living abroad — People of Indian origin based outside India.
  • Domestic institutions e.g. insurance companies — Large Indian organisations investing big sums.
  • Mutual funds asset management companies — Pool money from many people and invest it for them.
  • Foreign investors funds from abroad — Overseas funds and firms investing in India. They trade in large amounts, so their moves can sway the market's mood.

Big or small, they all have the same aim: to make money.

Who helps you trade

Tap each one.

**Remember:** the broker places your trade; the depository keeps your shares.

The referee: SEBI

Where there's money, there's greed and fear, and some people are tempted to cheat. So the market needs someone to set the rules and enforce them.

  • Sets the rules for every player — The **Securities and Exchange Board of India (SEBI)** writes the rules for exchanges, brokers, depositories, companies and every firm above.
  • Keeps it fair a level playing field — It checks that exchanges and brokers act fairly, that nobody uses unfair tricks, and that big investors don't manipulate prices.
  • Protects small investors people like you — Protecting retail investors is one of its main aims.

**Remember:** every firm in the market can only operate within SEBI's rules.

Check — Question 1 of 4

Match each job to the firm.

What you now know

  • Anyone who trades is a market participant: retail investors, NRIs, institutions, mutual funds and foreign investors.
  • Brokers place your orders; depositories (NSDL, CDSL) hold your shares, through a DP.
  • Merchant bankers take companies public; rating agencies judge borrowers.
  • SEBI regulates every one of them to keep the market fair.
  • Protecting small investors is one of SEBI's main aims.