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The National Securities Clearing Corporation (NSCC), a public sector company set up in 1996 takes the counter party risk of all transactions done at the NSE just as an intermediary guarantees all trades.
A process started (2002) by SEBI under which ownership, management and trading membership was to be segregated from each other. No broker was to be on the Board of Directors or an office-bearer in a stock exchange.
This has been done in the case of all stock exchanges except three regional stock exchanges (RSEs) in India.
The limits upto which shares can be issued by a company—also known as the nominal or registered capital. This is fixed in the Memorandum of Association (MoA) and the article of association (AoA) of a company as required by the Companies Act (Law).
The part of the authorised capital of a company that has actually been paid by shareholders. A difference may arise because all shares authorised might not be issued or issued shares are only partly paid-up.
The amount actually paid by the shareholders or have been committed by them for contribution.
The amount which is sought by a company to be raised by issuing shares which cannot exceed the authorised capital of the company.
A provision under which a company issuing shares for the first time is allowed to sell some additional shares to the public—usually 15 per cent, is also known as over-allotment provision. It gets its name from the first company (Greenshoe Company, USA) which was allowed such an option.
The share which remains low-priced at a stock exchange for a comparatively longer period. Speculators may start hoarding them for hefty margins, this was seen in India in mid-2006. And since such stocks get hoarded, ultimately their market prices increase. The speculators earn profit after offloading (selling) these shares at high prices and others who purchase these shares ultimately might fetch huge losses because price rise of these stocks are unintentional or each intentional manipulation and nothing else.