SEBI 2018 Study Notes – Securities Markets Basic Terms (Part 1)

This blog is the first in the series of SEBI 2018 Study notes. In this series, we would be covering some basic terms related to Securities Markets. As per the Exam Pattern of the SEBI 2018 Exam, Securities Market is the most important subject. It has 40 marks in Phase 1 of the Exam and 100 marks in Phase 2 Exam. Therefore, through this SEBI 2018 Study notes series, we would help you prepare this subject.

SEBI 2018 Study Notes – Basic Terms

1)  Stock-Broker

Stock-brokers are registered trading members of stock exchanges. They sell new issuance of securities to investors. They put through the buy and sell transactions of investors on stock exchanges.  All secondary market transactions on stock exchanges have to be conducted through registered brokers. (source –

2) Asset Management Company

It is a company which handles the day to day operations and investment decision of unit trust. Asset management companies are permitted to offer securities (called units) that represent participation in a pool of money, which is used to create the portfolio. The company charges the investor a fee for rendering their services. (source –

Try Securities Markets Mock test for SEBI 2018 Exam to check how much you know about Securities Markets.

3) Portfolio Managers

They are investment specialists who offer their services in selecting and managing a portfolio of securities. Portfolio managers do not offer any security and are not permitted to pool the money collected from investors. Like the Asset management company, the Portfolio managers too charge the investor a fee for the services provided. (source –

4) Merchant Brokers/Investment Bankers

Investment Bankers help an issuer access the security market with an issuance of securities. They evaluate the capital needs, structure an appropriate instrument, get involved in pricing the instrument, and manage the entire issue process until the securities are issued and listed on a stock exchange. They engage other intermediaries such as registrars, brokers, bankers, underwriters and credit rating agencies in managing the issue process. (source –

To know how much you need to prepare from SEBI 2018 Study notes take a Securities Markets Mock test now.

5) Underwriters

Underwriters are primary market specialists who promise to pick up that portion of an offer of securities which may not be bought by investors.  They serve an important function in the primary market, providing the issuer with the comfort that if the securities being offered do not elicit the desired demand, the underwriters will step in and buy the securities. (source –

That is all from us in this part 1 of the SEBI 2018 Study notes. We hope you find the information provided above useful for your SEBI 2018 exam preparation. Do not forget to give the Securities Markets Mock tests from Oliveboard to practice whatever you have learned in the above SEBI 2018 Study notes. All the best.

SEBI 2018 Study Notes

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