Glossary

S

• Safety Net Any safety net scheme or buy-back arrangements of the shares proposed in any public issue shall be finalized by an issuer company with the lead merchant banker in advance and disclosed in the prospectus. Such buyback or safety net arrangements shall be made available only to all original resident individual allottees limited up to a maximum of 1000 shares per allottee and the offer is kept open for a period of 6 months from the last date of dispatch of securities. The details regarding safety Net are covered under Clause 8.18 of DIP Guidelines.  
• Screen Based Trading Screen based trading uses the modern telecommunications and computer technology to combine information transmission with trading in stock market. Trading members are connected to the Exchange from their workstations to the central computer located at the Exchange via satellite using VSATs (Very Small Aperture Terminals).
• Secondary Market This refers to the market place where the investors can transact in the existing securities. The market in existing securities provided by the Stock Exchanges. The market provides the liquidity in the existing securities.
• Sector fund The corpus of the fund can be invested in the stocks of a particular sector. For example any pharma fund will invest its fund only in the companies of the pharma sector.  The corpus of the fund can be invested in the stocks of a particular sector. For example any pharma fund will invest its fund only in the companies of the pharma sector.  The corpus of the fund can be invested in the stocks of a particular sector. For example any pharma fund will invest its fund only in the companies of the pharma sector.  The corpus of the fund can be invested in the stocks of a particular sector. For example any pharma fund will invest its fund only in the companies of the pharma sector.  
• Security An investment instrument, other than an insurance policy or fixed annuity, issued by a corporation, Government, or other organization, which offers evidence of debt or equity.
• Seller The investor who has placed the order for selling a particular security. (also see buyer)
• Seller of an option The party whose market transaction is the sale of an option. Where the party's opening transaction is a sale, he is referred to as the option writer. Unlike the option buyer, who acquires a specific right, the writer of an option incurs a specific liability (the obligation to make or take delivery of the underlying asset if the holder chooses to exercise the option).
• Series All option contracts on the same underlying instrument with the same exercise price and the same expiry date. Put options and call options with the same strike price and same expiry date form two different series.
• Settlement This refers to the payment of cash for securities or the delivery of securities against payment i.e. securities transaction by delivery. It is the payment or receipt of an outstanding due at the end of the settlement period.
• Settlement date The date on which a contract must be fully paid for and delivered.