Designated Market Maker Maintains Orderly Markets


Posted March 2, 2016 by jamesaeker

Ever since SEBI has given the permission for algorithmic trading in India, there have been many companies in India, which have mushroomed over the years to provide investment management and execution services.

 
Ever since SEBI has given the permission for algorithmic trading in India, there have been many companies in India, which have mushroomed over the years to provide investment management and execution services. The companies also own websites that are purely there to help the pursuit of qualified employment candidates and to provide general information to the vendors and their clients. Investment management is completely quant driven. The world is looking at India as an emerging market and therefore most of the companies all around the world are looking at investing huge amounts in Indian market. While the choice of High frequency trading firms India providing investment management services is huge, investments should not be made in haste. It is very essential to choose a company that has proven track record in this field. Apart from a good track record, the company should also have a good reputation in providing execution services. One should also ensure that the company has a proper investment strategy in place and ensure that investments are made in market neutral funds in order to avoid risks.

The designated market maker ensures fair and orderly markets for the assigned set of listed firms. The designated market makers who were formerly called specialists are the point of contact for the listed companies. They provide the company with all the essential information about the mood of the traders and who is trading the stock. The designated market makers offer the same quotes that are quoted by the floor brokers. They are obligated to quote at the national best bid or offer for a percentage of the time. Generally the market makers will be required to provide a two way quote for 75% of the time in a day. The minimum quote would be Rs. 1, 00,000/-. However, the investors with holdings of a value less than the said amount shall be allowed to offer their holding to the market maker in that scrip with one condition that one shall sell their entire holding in that scrip in a single lot along with an affirmation to the effect to the selling broker.

Generally, the number of market makers per scrip would not be more than five. The market makers may compete with other market makers for better quotes to the investors. The market maker would act in this capacity for a period of three years and has to start providing quotes from the day of the listing.

Estee Advisors Pvt. Ltd.
8th Floor, Block 1,
Vatika Business Park, Sohna Road, Sector 49
Gurgaon
Haryana
122001
India
Phone: +91 824 463 7700
Fax: +91 124 463 7701

If you are searching for registered NSE Broker in India, then you are at the right place. Esteeadvisors is a registered broker-member with all the major Indian exchanges, including NSE, BSE and MCX-SX. Here you can know the charges for colocation services offered by the exchange. For more details about Arbitrage India, please visit http://www.esteeadvisors.com/
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Issued By jamesaeker
Country India
Categories Business
Last Updated March 2, 2016