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INTRODUCTION
In Indian financial system the equity market is playing important role in the development of economy. It is an efficient channel which mobilizes surplus funds to industrial purpose.
NSE started trading in the equities segment on November 3, 1994 and within a short span of 1 year became the largest exchange in India in terms of volumes are transacted.
Trading volumes in the equity segment have grown rapidly with average daily turnover increasing from Rs.17 crores during 1994-95 to Rs.14,148crores during FY 2007-08. During the year 2007-08, NSE reported a turnover of Rs.3,551,038crores in theequities


WHAT IS EQUITY?

Equity is the term commonly used to describe the ordinary share capital of a business. Ordinary shares in the equity capital of a business entitle the holders to all distributed profits after the holders of debentures and preference shares have been paid. Ordinary (equity) shares Ordinary shares are issued to the owners of a company. The ordinary shares of UK companies typically have a nominal or 'face' value.


WHY A COMPANY ISSUE ORDINARY SHARES?
A new issue of shares to be made for several reasons:
The company is wanted to raise more cash: For example might be needed for the expansion of a company's operations. If, for example, a company with 500,000 ordinary shares in issue decides to issue 125,000 new shares to raise cash, should it offer the new shares to existing shareholders, or should it sell them to new shareholders instead?
Where a company sells the new shares to existing shareholders in proportion to their existing shareholding in the company, this is known as a "rights issue".
The company might want to issue new shares partly to raise cash but more importantly to 'float' its shares on a stock market.
When a UK company is floated, it must make available a minimum proportion of its shares to the general investing public.