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Finance GlossarySEBI (Securities and Exchange Board of India)
SEBI (Securities and Exchange Board of India)
Definition of SEBI (Securities and Exchange Board of India)
The Securities and Exchange Board of India is the authority that regulates the securities market in India. It protects the interests of investors and ensures that trading practices are fair. The body also promotes transparency across different exchanges and intermediaries. SEBI regulates brokers and prevents the market from being manipulated. Thus, the authority plays a crucial role in regulating Indian financial markets and maintaining transparency.
Related Terms
Pennant Pattern
A Pennant is a continuation chart pattern used in technical analysis, and is shaped like a small, symmetrical triangle or a flag. It is formed following a sharp, significant move in price (either up or down) and represents a brief consolidation phase where volume is declining. The pennant pattern is characterised by two converging trend lines. Once the consolidation is over, a breakout from the pennant pattern (in the direction of the initial move) is anticipated, which indicates a continuation of the previous trend. Traders look for a large volume to accompany the breakout to confirm the move.
Negative Correlation
Negative Correlation describes a relationship between two assets where they move in opposite directions. When one increases in value, the other tends to decrease. In finance, it is often used to reduce portfolio risk by combining assets that do not move together. An example is gold and equity market.
Liquidity Ratio
The Liquidity Ratio is a tool in financial analysis for measuring a company’s ability to fulfil short-term debt obligations without the need to secure external financing. The key term here is liquidity.
Candlesticks
Candlesticks are technical charts used in trading to understand price movements. A candlestick chart will show the following information:
There are three components to a call option:
- High (for the period)
- Low (for the period)
- Open price
-
Closing price
The main body of the candle will be green if the closing price is higher than the opening price and red if the closing price is lower than the opening price.
Long green candles mean more investors and traders want to buy a stock. Long red candles mean more investors and traders want to exit a stock.
Long green candles mean more investors and traders want to buy a stock. Long red candles mean more investors and traders want to exit a stock.
Iceberg Order
An Iceberg Order is used to slice and execute large orders into multiple “legs”. Large orders have the potential to drastically affect stock prices and subsequently investor behaviour.
That’s why institutional investors or traders with a relatively large buy or sell order place an Iceberg Order, thus masking their total transaction value and effectively going under the radar.
Brokers and trading platforms offer Iceberg Orders as a feature, which is activated after a certain quantity of scrips or contracts are selected, typically above 100.
That’s why institutional investors or traders with a relatively large buy or sell order place an Iceberg Order, thus masking their total transaction value and effectively going under the radar.
Brokers and trading platforms offer Iceberg Orders as a feature, which is activated after a certain quantity of scrips or contracts are selected, typically above 100.
Shooting Star
A shooting star refers to a bearish candlestick pattern that appears after an uptrend. This pattern has a small body close to the low in a day, and a long upper wick. This shows that buyers pushed the prices up, but by the close, sellers took control over the stock. A shooting star often points to a possible trend reversal or short-term weakness.
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