Major Participants in the Stock Market

Major Participants In The Stock Market - The Indian Trader

The stock market comprises of a lot many people or institutions than just the buyers and sellers of securities. Here is a list of the major participants of the stock market which you must know.


These are the companies or entities that develop, register and sell securities for financing. These are the participants in the market who have deficit of funds or the need of it.


Investors are the participants who have surplus funds and are investing in the market to make profit or increase wealth. They are classified into various categories:

  • Retail investors
    • These are individual investors like you and me.
  • Institutional Investors
    • These are big institutions or companies who invest huge funds in the stock market. They are:
      1. Mutual Funds: Mutual Funds are the institutions which invests money pooled by the retail investors. It is managed by a fund manager. These are also known as AMC (Asset Management Companies).
      2. Hedge Funds: Hedge Funds are structurally very similar to Mutual Funds but are fundamentally very different.  They have an aggressive approach. A hedge fund can short stocks and have a high leverage.


Brokers are the liaison between Issuers and the Investors and have a licence from SEBI. They are a catalyst for financial transactions. Brokers can be an individual or a company. They research, advice, executes orders and also provide investment management services.

Lead Manager

Lead Manager is an independent financial company or institution appointed by another company planning to go public to manage their IPO. These are more commonly known as Investment Banks and are also known as Book Runners, Under-Writers and Merchant Banks.

The Lead Manager decides the public issue date, listing date and also the offer price. It takes care of everything related to an IPO for a company. A company that is planning to go public however, can hire more than one Lead Managers.


The purpose of a Depository is easy transfer of ownership through a book entry rather than the transfer of physical certificates. It functions exactly like a bank but for securities and not funds. It is also accountable for the safekeeping of securities similar to a bank. You can consider it as a bank for securities.

There are two depositories that are registered with SEBI –

National Securities Depository Limited (NSDL)

Central Depository Services (India) Limited (CDSL).

The Regulator

SEBI (Securities and Exchange Board of India) is the regulator for the Indian stock markets. Its purpose mentioned in its preamble is – ‘To protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto’.

There you have it, all the major participants in the stock markets explained!

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I started to learn about the stock market in 2014 after getting excited by watching the movie The Wolf of Wall Street and reading about people like Warren Buffet, George Soros, Steven A. Cohen who earned a lot of money in the stock market. I wanted to do it too. I wanted to learn how to do it.

Well, this is the point where the problem and my journey to solve it begins. After reading about a few market wizards I was certain about one thing that without knowledge this was not possible. The big problem was I had no prior knowledge of the stock market whatsoever. However, the bigger problem was I did know where I could get the required knowledge from. Neither the books helped initially (because there is no course or guide for this thing only stories and novels) nor I knew anyone who did not have a negative position about stock markets (or ‘Jua’ as they called it).

Still, I was stubborn enough to not listen to anyone and continue learning about the stock markets until I felt I was ready. Well, it took time but yes I did enter the stock markets with some knowledge, a plan and also a vision.

Success story..? Well, let’s see..!!~

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