Rulebook

STOCK BUYING- XXXXXXXXX, 2023, Saturday
MARKET AND TRADING - XXXXXXXXXX 2023, Sunday
• Each team is given 5 lakh Rupees for Trading Round.
• Company have stocks listed in this virtual stock market are in various sectors constituting the overall picture of indices.
• The use of Laptops and Calculators are preferable.
• Each team will have to have their EXCEL!
GENERAL RULES FOR BOTH TRADING SESSIONS
01.
The event will start with the initial trading round where each team member needs to buy stocks from the Econ Team according to the news provided.
02.
After the initial trading there will be 5 further rounds of trading where teams are required to trade among themselves.
03.
Each Stock has an initial price tag which would be given at the starting of each day.
04.
Each team will be initially given Rs.5 lakhs for the day. At any given time in the event, the team should have a minimum of 10% of initial virtual money i.e. 10% of the initial cash, in hand otherwise the team will be disqualified for the round. However, this won't affect the participation or the result of the team in the other round.
05.
Teams should invest at least 60% of their money in the initial trading session.
06.
Once the trade has been mutually agreed between the two teams it would be valid only when the trade request has been accepted by brokers.
EXTRA POINTS
01.
There will be a simulation of the upper circuit and the lower circuit in the stock price.
02.
Teams are allowed to trade stocks amongst themselves.
03.
Before the start of each round there will be a news session, the news from each round may or may not be correlated. News will be based on hypothetical situations regarding the market.
Example: News - Sony comes to Zee Entertainment’s rescue, signs term sheet for merger
Possible reactions- The Sony-zee network would directly compete with other OTT platforms like Netflix, Disney+ Hotstar. The integration of two media giants will lead to increased capacity of viewership, which means an increase in revenue so people may start buying the stock.
Note For WDS:
All stocks stand at 5% lower and upper circuit for both days.
The lower circuit is the minimum price to which a stock is allowed to fall downwards.
The upper circuit is the maximum price to which a stock is allowed to rise upwards.
There will be a 5% brokerage/transaction fee charged each time on the team which is buying the stock! While selling the stock the selling team won't be charged brokerage.
INSIDER TRADING
1.
Insider trading is the trading of a public company's stock or other securities (such as bonds or stock options) based on material, non-public information about the company. ... A person who becomes aware of non-public information and trades on that basis may be guilty of a crime.(Khabri)
2.
It is possible that some of you might get inside information in exchange for a sum of money.
3.
The information might or might not be true. The informer will not be responsible if the news turns out to be fraudulent
4.
All the teams have an option to report other teams in case they suspect a team with insider information.
5.
In case a team has been correctly reported for insider trading they will incur a fine of 15% of their current holdings.
6.
In a case a team has been wrongly reported for insider trading, the team which has reported will incure a fine of 18% of their current volume.
Example-If the team has 50000 they will incur a fine of 7500. But if the report turns out to be unsuccessful the reporting team will incur a fine of 18 % of current holdings. Example- If the team has 50000 they will incur a fine of 9000.
IPO
IPO stands for Initial Public Offering, buying of this will happen in lots (collection of share in a cluster) in which u can apply for the IPO and its pre-market price in lots.
And if u get the IPO, u will get the shares when IPO will get public and its share will be placed in the market .
NOTE:- Teams can apply for IPO but it is not sure that all we will be allotted shares.