Share Market

A stock exchange is a centralised platform where securities such as shares, bonds, and derivatives are bought and sold. It plays a pivotal role in the financial ecosystem by facilitating capital formation, ensuring liquidity, and supporting transparent price discovery.

NSDL (National Securities Depository Limited) is a central securities depository in India that facilitates the holding and transfer of securities in electronic form. It serves as a secure and efficient platform for investors to hold and transact in various financial instruments such as shares, bonds, and government securities.

At its core, a share represents a piece of ownership in a corporation. When an individual purchases company shares, they become a shareholder, entitling them to a portion of the company's earnings and assets.

A non-controlling interest, also known as minority interest, refers to a form of ownership in which a shareholder possesses less than 50% of the outstanding shares and lacks the authority to influence decisions. The valuation of non-controlling interests is based on the net asset value of entities and does not factor in potential voting rights. In the modern landscape of public companies, the majority of shareholders would fall under the category of holding a non-controlling interest. Even an equity stake as modest as 5% to 10% is considered a significant holding in a single company. It stands in contrast to a controlling or majority interest, where the investor possesses voting rights and can frequently impact the direction of the company.

The SGX Nifty is a futures contract based on the National Stock Exchange of India's 50th index, also known as the Singapore NIFTY. The company is listed and quoted on the SGX in Singapore. Even when the Indian stock market is shut down, the SGX Nifty enables investors in other countries to invest in India's stocks.

Indian Depository Receipts (IDRs) are financial instruments issued in India, representing shares of foreign companies. IDRs provide Indian investors with indirect ownership of global companies' stock. They allow companies to raise capital in India without directly listing on Indian stock exchanges. IDRs facilitate diversification for Indian investors while providing foreign companies access to the Indian capital market.