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A Training Report submitted in partial fulfillment of the requirements for the Award of the degree of the Bachelor of Business Administration (Industry Integrated), Gauhati University on “WORKING OF STOCK EXCHANGESS IN INDIA”


Submitted to: Controller of examination Guahati University, Guwahati

Prepared & Submitted by: RAVI MISHRA BBA (IIP) 2nd Semester



This is to certify that Ravi Mishra, a student of the Gauhati University has prepared his Training Report entitled “Working of Stock Exchanges in India” under my guidance. He has fulfilled all requirements under the regulations of the MBA(IIP) & BBA(IIP) Gauhati University, leading to the B.B.A(IIP) degree. This work is the result of his own investigation and the project; neither as a whole nor any part of it was submitted to any other University or Educational Institution for any research or diploma.

I wish him all success in life.

Ms. Gurvinder Kaur Head of the Training Department NIAM Institute of Applied Management, Faridabad



Under the guidance of Ms. Gurvinder Kaur Submitted in Partial fulfillment of the requirements for the Degree of BACHLOR OF BUSINESS ADMINISTRATION (Industry Integrated) TO GAUHATI UNIVERSITY, GUWAHATI Is my original work and the same has not been submitted for the award of any other Degree/diploma/fellowship or other similar titles or prizes.

Place: Date:

Ravi Mishra Roll No.09-02-0174 Reg. No.- 003174 Year – 2009-10


Acknowledgement to be mentioned to the Head of the Academic Partner, NIAM, Faculty guide. Training officer in charge. Manager in charge, other staff member, colleagues and friends for their encouragement, support, guidance and assistance for undergoing management training and preparing the training report.




INTRODUCTION 1.1 General Introduction. 1.2 Light on stock exchange and it services


SECURITIES & EXCHANGE BOARD OF INDIA 2.1 General Introduction 2.2 Role of SEBI 2.3 Terminologies associated with stock exchanges 2.4 National Securities Deposit Limited


BOMBAY STOCK EXCHANGE 3.1 General Introduction 3.2 Capital listed and market capitalization 3.3 BSE Sensex 3.4 Trading system    Settlement and clearing Demat pay in Close out

3.5 Opportunities for foreign investors 3.6 Disclosure & Listing Norms 3.7 Computerized trading 3.8 Future development 4. NATIONAL STOCK EXCHANGE 4.1 General Introduction 4.2 Locations 4.3 Listing

BIBLIOGRAPHY .7 4.1 7. STUDY OF SELECTED RESEARCH PROBLEMS 6.1 6.9 4.4.1 5.5 Order books Order matching rules Order conditions Price Conditions Trading Workstation and trading options Broker and Sub-broker Clint agreement form   Details of client registration form For proof of address 5.10 4.2 Student’s work profile (Role and responsibilities) Key Learning 6.2 Summary of leaming experience Conclusation and recommendation 8.11 Trading members Trading mechanism Market types 4.8 4.2 6. DISCUSSION ON TRAINING 5.3 Introduction Types of Research Research Design 7.4 Constitution    4. SUMMARY AND CONCLUSION 7.6 4.

their numbers running into hundreds. education. death. health and so on for wanting to convert their savings into cash. such breaking of business ownership would help mobilize small savings in the economy into entrepreneurial ventures. In general. such as better investment opportunity. Nobody would like to invest in such partnerships in the first place. depending on the size of business venture. especially with a small amount of savings. Also. stock exchanges are perhaps the most crucial agents and facilitators of entrepreneurial progress. After the industrial revolution. big enterprises will be able to raise capital from the public at large only if there were some mechanism by which the investors could purchase or sell their share of business as ands they wished to do so. such that each unit may be independently & easily bought and sold without hampering the business activity as such.1. small time proprietors. These problems will be even more magnified in large proprietorships and partnerships. for investment. . marriage. Clearly then. or partners of a proprietary or partnership firm. Such huge requirement of capital could only be met by the participation of a very large number of investors. just when one wishes to sell it. as the size of business enterprises grew. to readily find an appropriate business opportunity. And most people have lots of reasons. INTRODUCTION 1.1 General Introduction Of all the modern service institutions. or a part thereof. This is so because it is not always possible to find buyers for an entire business or a part of business. since once invested. it is not easy for someone with savings. thousands and even millions. This end is achieved in a modern business through the mechanism of shares. it was no longer possible for proprietors or partnerships to raise colossal amount of money required for undertaking large entrepreneurial ventures. This implies that ownership in business has to be “broken up” into a larger number of small units. Similarly. are likely to find it rather difficult to get out of their business should they for some reason wish to do so. their savings would be very difficult to convert into cash.

each fragment represented by a share certificate.1. namely shares. And for that very reason. . owing to the stock exchanges. mostly a stock exchange is also distinguished by a physical location and characteristics of its own. Each such fraction of ownership is represented in the form of a certificate known as a share certificate. Thus by enabling the convertibility of ownership in the product market into financial assets. known as stock market or security market. The breaking up of total ownership of a business into small fragments. Institutions where small chunks of businesses could be traded. one can be all of these things. the earliest location of the Bombay Stock Exchange. one can be part owner in a company hundreds or thousands of miles away. In fact. one can be part owners in several companies at the same time.e. What is a stock exchange? “The institution where this buying and selling of shares essentially takes place is the Stock Exchange. one can be part owners of one company today and another company tomorrow. according to me. i. enables them to be easily bought and sold. Also a stock exchange is distinguished by a specific locality and characteristics of its own. there would be no modern business in the form of publicly held companies. stock exchanges bring together buyers and sellers (or their representatives) of fractional ownerships of companies. which for a long period was known as “the native share and stock brokers’ association”. activities relating to stock exchanges are also appropriately enough. Today.2 Stock Exchange and it Services What is a share? A share represents the smallest recognized fraction of ownership in a publicly held business.” In the absence of stock exchanges. was probably under a tree around 1870.

The stock exchanges are the exclusive centers for the trading of securities. as well as some public representatives. which in effect precluded competition among the exchanges. wishing to list their securities. formed for the express purpose of regulating and facilitating buying and selling of securities by the public and institution at large. a stock exchange has been an association of individual members called member brokers (or simply members or brokers). a stock exchange is governed by a board consisting of directors largely elected by the member brokers.  Typically. BSE alone accounts for over 80% of the total volume of transactions in shares. to list on the regional stock exchange nearest to their registered office. the area of operation/ jurisdiction of exchange were specified at the time of its recognition. usually nominated by the government from among . The regulatory framework encourages this by virtually banning trading of securities outside exchanges. In order to provide an opportunity to investors to invest/ trade in the securities of local companies. The member brokers are essentially the middlemen who carry out the desired transactions in securities on behalf of the public(for a commission) or on their own behalf. At present. and a few nominated by the government. it is mandatory foe the companies. the largest among them being the Bombay Stock Exchange. who is an elected member. A president. who are expected to safeguard the public interest in the functioning of the exchanges. Until recently. there are 23 stock exchanges in India. New membership to a Stock Exchange is through election by the governing board of that stock exchange. Government nominee include representatives of the ministry of finance. 1956. A stock exchange in India operates with due recognition from the government under the Securities and Contracts (Regulations) Act. Characteristics of Stock Exchanges in India  Traditionally. These are called regional exchanges.

heads the board. who is usually appointed by the by the stock exchange with the government approval is the operational chief of the stock exchange. which do not include trading members. management and trading are in the hands of three sets of people. Exchange management Made some attempts in this direction. Thus. the finance minister in March 2005 proposed demutualization of exchanges by which ownership. The concept of demutualization completely eliminates any conflict of interest and helps the exchange to pursue market efficiency and investors interest aggressively. of administration of broker-managed exchanges. Board of directors. . Of the 23 stock exchanges in India. OTCEI and NSE are already demutualised. all ordinary shares. but this did not materially alter the situation. preference shares and debentures of the publicly held companies are listed in the stock exchange. two stock exchanges viz. His duty is to ensure that the day to day operations the Stock Exchange are carried out in accordance with the various rules and regulations governing its functioning.  The overall development and regulation of the securities market has been entrusted to the Securities and Exchange Board of India (SEBI) by an act of parliament in 1992. The regulators are working towards implementing this. manages these. In view of the less than satisfactory quality. The executive director.the elected members.  All companies wishing to raise capital from the public are required to list their securities on at least one stock exchange. where ownership.. management and trading membership would be segregated from each other. These are purest form of demutualised exchanges.

is the national regulatory body for the securities market. merchant bankers. portfolio managers. The Board of SEBI comprises a Chairman.regulatory . set up under the securities and Exchange Board of India act. that is.2 Role of SEBI SEBI has its head office in Mumbai and it has now set up regional offices in the metropolitan cities of Kolkata. and to regulate the securities market and for matters connected therewith and incidental too. 2. sub-brokers. trustees of trust deeds. and Chennai. SECURITIES & EXCHANGE BOARD OF INDIA 2. investment advisors and such other intermediaries who may be associated with the stock market in any way. registrars to an issues. registration and regulation of the working stock brokers. registration and regulations of mutual funds. the power and functions of the Board encompass the regulation of Stock Exchanges and other securities markets.2. 1992. As per the SEBI act. two members from the central government representing the ministries of finance and law. one member from the Reserve Bank of India and two other members appointed by the central government.1 Introduction The SEBI. under writers. bankers to an issue (a public offer of capital). the Securities and the Exchange Board of India. promotion and regulation of self. 1992. to “protect the interest of investors in securities and to promote the development of. Delhi.

regulatory organizations of the securities market. 1956. Prescribed there under and the byelaws. No stockbroker or sub-broker is allowed to buy. the SEBI act 1992. the rules. rules and regulations of the concerned exchange. regulating substantial acquisition of shares and takeover of companies.organizations. conducting necessary research for above purposes and performing such other functions as may be prescribes from time to time. A broker is admitted to the membership of an exchange in terms of the provisions of the SCRA. conducting inquiries and audits of stock exchanges. The stock exchanges are free to stipulate stricter requirements for its members than those stipulated by SEBI. performing such functions and exercising such powers as contained in the provisions of the Capital Issues (Control) Act. notifications. A broker/sub-broker compiles with the code of conduct prescribed by SEBI. The standards for admission of members lay . undertaking inspection. etc. intermediaries and self.3 Terminologies associated with the stock exchange Membership The trading platform of a stock exchange is accessible only to brokers. 2. SEBI and the Exchange play complimentary roles to enhance the investor protection and the overall quality of the market. The broker enters into trades in exchanges either on his own account or on behalf of clients. SEBI as the watchdog of the industry has an important and crucial role in the market in ensuring that the market participants perform their duties in accordance with the regulatory norms. prohibiting Fraudulent and unfair trade practices and insider trading in securities markets. circulars. sell or deal in securities. calling for information from. The clients may place their order with them directly or a sub-broker indirectly.1947 and the Securities Contracts (Regulation) Act. levying various fees and other charges. guidelines. The minimum standards stipulated by NSE for membership are in excess of the minimum norms laid down by SEBI. unless he or she holds a certificate of registration granted by SEBI. The Stock Exchange as a responsible Self Regulatory Organization (SRO) function to regulate the market and its prices as per the prevalent regulations.

capital adequacy. the listing agreement entered into by the issuer and the stock exchange and the circulars/ guidelines issued by central government and SEBI. A single consolidated order book for each stock displays. NEAT has lent considerable depth in the market by enabling large number of members all over the country to trade simultaneously and consequently narrowed the spreads significantly.down by NSE stress on factors. SCRR. India Index Services & Products Limited (IISL). promoted by NSE and CRISIL. rules. corporate structure. Index services Stock index uses a set of stocks that are representative of the whole market. The trading system at NSE known as the National Exchange for Automated Trading (NEAT) system is an anonymous order-driven system and operates on a strict price/time priority. on a real time basis. screen-based trading system. invariably evidenced by a listing agreement between the issuer of the security and the stock exchange. bye-laws and regulations of the concerned stock exchange. or a specified sector to measure the change in overall behavior of the markets or sector over a period of time. SCRA. Listing of securities on Indian Stock Exchanges is essentially governed by the provisions in the companies act. buy and sell orders originating from all . Trading Mechanism All stock exchanges in India follow screen-based trading system. such as. . education. experience. track record. NSE model was gradually emulated by all other stock exchanges in the country. etc. It enables members from across the countries to trade simultaneously with enormous ease and efficiency. 1956. Listing Listing means formal admission of a security to the trading platform of a stock exchange. And reflect the conscious endeavors to ensure quality broking services. NSE was the first stock exchange in the country to provide nation-wide order-driven. is the only specialized organization in the country to provide stock index services.

the investors get confirmation about them on their pcs through the same Internet routes. SEBI approved trading through wireless medium or WAP platform. which are orders to buy or sell shares at a stated quantity and stated price. SEBI has approved the use of Internet as an order routing system. NSE is the only exchange to provide access to its order book through the hand held devices. SEBI. Several time-related (Good-Till-Cancelled. Orders are sorted and match automatically by the computer keeping the system transparent. NSE was the first exchange in the country to provide web-based access to investors to trade directly on the exchange. The trading system also provides complete market information on-line. but also from the personal computers in the homes of investors through the internet and from the hand-held devices through WAP. SEBI has stipulated the minimum conditions to be fulfilled by trading members to start internet-based trading and services. Thus. objective and fair. price related (buy/sell limit and stop-loss orders) or volume related (All-or-None. for communicating clients’ orders to the exchanges through brokers. The trading platform of BSE is also accessible from 400 cities. It was followed by the launch of Internet trading by BSE in March 2001.over the country. Minimum Fill. This .registered brokers can introduce internet-based trading after obtaining permission from the respective Stock Exchanges. the NEAT system provides an open electronic consolidated limit order book (OECLOB).) Conditions van be easily built into an order. The limit order is executed only if the price quantity conditions match. The trading system provides tremendous flexibility to the users in terms of kinds of orders that can be placed on the system. Internet trading is available on NSE and BSE. The trading platform of the CM segment of NSE is accessed not only from the computer terminals from the premises of brokers spread over 420 cities. which is updated on real time basis. as of now. Immediate-or-Cancel). The bookstores only limit orders. It launched Internet trading in February 2001. etc. Soon after these orders get matched and result into trades. Good-TillDay. which use WAP technology. The orders originating from the personal computers (pcs) of investors are routed through the Internet tot eh trading terminals of the designated brokers with whom they have relations and further to the exchange of trade execution.

K and Hong Kong. traded and settled in demat form. all investors are required to mandatorily trade in dematerialized form in respect of 2. Depository facility has effected changes in stock market microstructure. Competition and regulatory developments facilitated reduction in custodial charges and improvements in qualities of service standards. While the investors have a right to hold securities in either physical or demat form.. The paper observes that one imminent and apparent immediate benefit of competition between the two depositories is fall in settlement and other charges. Since the introduction of the depository system. 2005. SEBI has introduced some degree of compulsion in trading and settlement of securities in dematerialized form. SEBI has mandated compulsory trading and settlement of securities in dematerialized form. viz. This was initially introduced for institutional investors and was later extended to all investors. The details of progress in dematerialization in two depositories. dematerialization has progressed at a fast pace and has gained acceptance among the participants in the market. Competition has been driving improvement in service standards.335 securities as at end-June. NSDL and CDSL are presented as below: In a SEBI working paper titled ‘Dematerialization: A Silent Revolution in the Indian Capital Market’ released in April 2000. it has been observed that India has achieved a very high level of dematerialization in less than three years’ time.serves primarily retail investors who are mobile and want to trade from any place when the market prices for st0ocks of their choice are attractive. Demat Trading A depository holds securities in dematerialized form. . Breadth and depth of investment culture has further got extended to interior areas of the country faster. and currently more than 99%of trades settle in demand form. All actively traded scrips are held. Dematerialization growth in India is the quickest among all emerging markets and also among developed markets excepting for the U. Explicit transaction cost has been falling due to dematerialization. Starting with 12 scrips on January 15. It maintains ownership records of securities in a book entry form and also effects transfer of ownership through book entry. Dematerialization substantially contributed to the increased growth in the turnover. 1998.

the process of transfer took much longer than stipulated in the then regulations. nse joined hands with uti and idbi to set up the first depository in india called the "national securities depository limited" (nsdl). . All these added to the costs and delays in settlement and restricted liquidity. with the change of Ownership being evidenced by an endorsement on the security certificate. Theft. Further. settlement of trades required moving the securities physically from the seller to the ultimate buyer. To obviate these problems and to promote dematerialization of securities. In many cases. The depository system gained quick acceptance and in a very short span of time it was able to achieve the objective of eradicating paper from the trading and settlement of securities. through the seller's Broker and buyer's broker. Dematerialized delivery today constitutes almost 100% of the total delivery based settlement. and was also able to get rid of the risks associated with fake/forged/stolen/bad paper. which involved lot of time and the risk of delay somewhere Along the chain. mutilation of certificates and other irregularities were rampant.4 National Securities Deposit Limited (NSDL) Prior to trading in a dematerialized environment.2. the system of transfer of ownership was grossly inefficient as every transfer involved physical movement of paper to the issuer for registration. forgery.

1 General Introduction The Stock Exchange. whether against the companies or its own member-brokers. six public representatives and an Executive Director is the apex body. The Exchange. It also strives to educate and enlighten the investors by making available necessary informative inputs and conducting investor education programmes. which decides the policies and regulates the affairs of the Exchange. Mumbai.3. as a voluntary non-profit making association. upholds the interests of the investors and ensures redressal of their grievances. while providing an efficient and transparent market for trading in securities. a Reserve Bank of India nominee. A Governing Board comprising of 9 elected directors (one third of them retire every year by rotation). which was founded in 1878. It may be noted that the Stock Exchanges is the oldest one in Asia. even older than the Tokyo Stock Exchange. BOMBAY STOCK EXCHANGE 3. It has evolved over the years into its present status as the premier Stock Exchange in the country. . two SEBI nominees. popularly known as "BSE" was established in 1875 as "The Native Share and Stock Brokers Association".

16. It ranked first in terms of the number of listed companies and stock issues listed. 2005.2 Capital Listed and Market Capitalization The Stock Exchange. The capital listed in the BSE as on 31st March 1994 accounted for 50% of the overall capital listed on all the stock exchanges.8984. introduction of Compulsory Rolling Settlements in all scrips traded on the Exchanges i. abolition of account period settlements.19 crore and average number of daily trades was 8. The ban on all deferral products like BLESS and ALBM in the Indian capital Markets by SEBI i. 908 crore as on the 31st March. 2005.69 lakh. The average daily turnover of the Exchange during the year 2005-2006 (April-March). Have adversely impacted the liquidity and consequently there is a considerable decline in the daily turnover at the Exchange. 700 crore.2007 has declined to Rs. However. the Steel Authority of India had the largest market capitalization of Rs. 1994 followed by the State Bank of India with the market capitalization of Rs.e.10 crore and number of average daily trades during the period to 8.11. Bombay (BSE) is the premier Stock Exchange in India. 3.3 BSE SENSEX .19.The Executive Director as the Chief Executive Officer is responsible for the day-to-day administration of the Exchange. On the BSE. Its share of the market capitalization was around 74% as on the same date. 44% respectively of the overall capital listed on all the Stock Exchanges as on the same date. was Rs. December 31. 31%. etc. The paidup capital of equity. July 2.17 lakh. the average daily turnover of the Exchange during the year 2006. 2244. 3. debentures/bonds and preference were 73%. 702 crore and Mahanagar Telephone Nigam Limited with the market capitalization of Rs.e. The BSE accounted for 46 per cent of listed companies on an all India basis as on 31st March 1994.

In fact the SENSEX is considered to be the pulse of the Indian stock markets. foreign investors. which has the longest social memory. print electronic media and is widely used to measure the used to measure the performance of the Indian stock markets.The BSE SENSEX. institutional investors. Further. Small wonder that the SENSEX has over the years has become one of the most prominent brands of the Country. the domestic international. The objectives of the index are:  To measure market movements Given its long history and its wide acceptance. wellestablished and financially sound companies. as the oldest index of the Indian Stock Market. The index is widely reported in both. it provides time series data over a fairly long period of time. It is the oldest index in India and has acquired a unique place in collective consciousness of the investors. foreign investors and fund managers. . short form of Sensitive Index. The BSE SENSEX is the benchmark index of the Indian capital market and one. SENSEX is widely Used to describe the mood in the Indian stock markets. no other index matches the BSE SENESX in the reflecting market movements and sentiments. Objectives of SENSEX The BSE SENSEX is the benchmark index with wide acceptance among individual investors. first compiled in 1986 is a “market Capitalization-Weighted” index of 30 component stocks representing a sample of large.  Benchmark for funds performance The inclusion of blue chip companies and the wide and balanced industry Representation in the SENSEX makes it the ideal benchmark for fund managers to compare the performance of their funds.

we believe that it will be the most liquid Contract in the Indian market and will garner a predominant market share. Since SENSEX comprises of the leading companies in All the significant sectors in the economy. money managers and small investors. all refer to the BSE SENSEX for their specific purposes. For index based derivatives products Institutional investors. Some Companies represented in the SENSEX Company name Hindustan lever Reliance limited Infosys technologies Reliance petroleum ITC State bank of India MTNL Satyam computers Zee telefilms Ranbaxy labs ICICI Larsen & toubro Cipla Hindalco HPCL TISCO Nestle Sector FMCG Chemicals and petrochemicals Information technology Oil and gas FMCG Finance Telecom Information technology Media Healthcare Finance Diversified Healthcare Metals and mining Metal and mining Metal and mining FMCG 3.4 Trading System . The BSE SENSEX is in effect the proxy for The Indian stock markets.

which is 10 working days for group 'A' securities and 5 working days for group 'B' securities. August 13. which had an open outcry trading system. The matching logic for the Carry-Forward System as in the case of the regular trading system is quote driven with the order book functioning as an "auxiliary jobber". showing matched and unmatched transactions. after taking into account all transactions for the member during the settlement period. 1995. was commissioned on March 14. Settlement processing involves computation of each member's net position in each security. the facility of placing of quotes has been removed i. Trading is done by members and their authorized assistants from their Trader Work Stations (TWS) in their offices. Through the BOLT system the members now enter orders from Trader Work Stations (twss) installed in their offices instead of assembling in the trading ring. Trading The Exchange. BOLT system accepts two-way quotations from jobbers. However.Till Now. This system. market and limits orders from client-brokers and matches them according to the matching logic specified in the Business Requirement Specifications (BRS) document for this system. The transaction details of the account period (called settlement period) were submitted for settlement by members after each trading session.e. The computerized settlement system initiated the netting and clearing process by providing on a daily basis statement for each member. which was initially both order and quote driven. through the BSE On-Line Trading (BOLT) system. that used to take place in the trading ring. buyers and sellers used to negotiate face-to-face on the trading floor over a security until agreement was reached and a deal was struck in the open outcry system of trading. BOLT system has replaced the open outcry system of trading. had switched over to a fully automated computerized mode of trading known as BOLT (BSE on Line Trading) System. 2005 in view of lack of market interest and to improve system- .

The 'Z' group was introduced by the Exchange in July 1999 and covers the companies which have failed to comply with listing requirements and/or failed to resolve investor complaints or have not made the required arrangements with both the Depositories. as on March 31. Chidambaram inaugurated the expansion of BOLT network the then Finance Minister. automatic order matching and faster execution of orders in a transparent manner. which is now only order driven.m.1930 and 3044 respectively. 2002. facilitates more efficient processing. 2005. Trading on the BOLT System is conducted from Monday to Friday between 9:00 a. Of these. In terms of the permission granted by SEBI and certain modifications announced later. And 3:30 p. as on March 31. admitted subsidiary companies formed by 13 Regional Stock Exchanges as its members. 2006 was 173. Government of India on August 31. Companies in "Z" group numbered 3044 as on March 31.e. .. The members of these Regional Stock Exchanges work as sub-brokers of the member-brokers of the Exchange. In order to expand the reach of BOLT network to centers outside Mumbai and support the smaller Regional Stock Exchanges. viz. in October 1996. 1997. 'B2'. i. September 30. 'B2' and 'Z' groups. 2006. Central Depository Services (I) Ltd. The scrips traded on the Exchange have been classified into 'A'. 560. 'B1'.m. which represent the equity segment. The objectives of granting membership to the subsidiary companies formed by the Regional Stock Exchanges were to reach out to investors in these centers via the members of these Regional Exchanges and provide the investors in these areas access to the trading facilities in all scrips listed on the Exchange. However. The system. 'B1 '. (CDSL) and National Security Depository Ltd. the members of the Exchange are now free to install their trading terminals at any place in the country. the Exchange obtained permission from SEBI for expansion of its BOLT network to locations outside Mumbai.matching efficiency. Shri P.. (NSDL) for dematerialization of their securities by the specified date. Earlier. the Exchange has. 2006. The number of scrips listed on the Exchange under 'A'. 'F' and 'Z' groups. The 'F' group represents the debt market (fixed income securities) segment wherein 748 securities were listed as on March 31. the members of the Exchange were permitted to open trading terminals only in Mumbai.

to begin with the Exchange has permitted trading in scrips of five companies listed on other Stock Exchanges i. Accordingly. provides a facility to market participants of on-line trading in odd lots of securities and Rights renunciations. Permitted Securities The Exchange has since decided to permit trading in the securities of the companies listed on other Stock Exchanges under “Permitted Securities" category which meet the relevant norms specified by the Exchange.1429 companies were in "Z" group for not complying with the provisions of the Listing Agreement and/or pending investor complaints and the balance 1615 companies were on account of not making arrangements for dematerialization of their securities with both the Depositories. The Exchange. trading and settlement in their scrips would be shifted to their respective erstwhile groups. The 'C' group can also be used by investors for selling unto 500 shares in physical form in respect of scrips of companies where trades are to be compulsorily settled by all investors in demat mode. 2002. 'B2' and 'Z' groups and Rights renunciations in all the groups of scrips in the equity segment. Compulsory Rolling Settlement Segment.e. thus. April 22. The Exchange has also the facility to trade in "C" group which covers the odd lot securities in 'A'. Once they finalize the arrangements for dematerialization of their securities. trading in all securities listed in equity segment of the Exchange takes place in one market segment.. With effect from December 31. 1615 companies have been put in "Z" group as a temporary measure till they make arrangements for dematerialization of their securities. 2001. 'B1'. viz. The facility of trading in odd lots of securities not only offers an exit route to investors to dispose of their odd lots of securities but also provides them an opportunity to consolidate their securities into market lots. This scheme of selling physical shares in compulsory demat scrips is called as Exit Route Scheme. Computation of closing price of scrips in the Cash Segment .

2005. However..The closing prices of scrips are computed on the basis of weighted average price of all trades in the last 15 minutes of the continuous trading session. the trades done on a particular day are settled after a given number of business days rather than settling all trades done during a period at the end of an 'account period'.e. Compulsory Rolling Segment (CRS) Compulsory Rolling Settlement (CRS) Segment: With a view to introduce the best international trading practices and to achieve higher settlement efficiency. However. are settled only on trade to trade basis on T+3 i. The transactions in securities of companies which have made arrangements for dematerialization of their securities by the stipulated date are settled only in Demat mode on T+3 on net basis. then the last traded price in the continuous trading session is taken as the official closing price. A T+3 settlement cycle means that the final settlement of transactions done on T or trade day by exchange of monies and securities. as mandated by SEBI. 2006 should be settled on T+3 bases. buy and sale positions in the same scrip are netted and the net quantity is to be settled. if one buys and sells 100 shares of a company on the same day which is on trade to trade basis. Accordingly. For example. the transactions are settled on a gross basis and the facility of netting of buy and sale transactions in a scrip is not available.e. the two positions will not be netted . April 1. trades in all the equity shares listed on the Exchange in CRS Segment were to be settled on T+5 basis i. SEBI has further directed the Stock Exchanges that trade in all scrips i. 2006 Under a rolling settlement environment. April 1. if there is no trade during the last 15 minutes. all transactions in all groups of securities in the equity segment and fixed income securities listed on the Exchange are settled on T+3 bases i. December 31. occurs on fifth business day after the trade day. i.. which have failed to make arrangements for dematerialization of their securities or /are in "Z" group. transactions in securities of companies.e.e.e.

And pay-out of funds and securities by 2:00 p.and he will have to first deliver 100 shares at the time of pay-in of securities and then receive 100 shares at the time of pay-out of securities on the same day. if one fails to deliver the securities sold at the time of pay-in. . T+5 Auction pay-in and pay-out.m T+4 Auction on BOLT. The following tables summarize the steps in the trading and settlement cycle for scrips under CRS: Day Activity Trading on BOLT and daily downloading of statements showing details of transactions and margins at the end of each trading day.m. 6A/7A entry by the member-brokers. * 6A/7A : A mechanism whereby the obligation of settling the transactions done by a memberbroker on behalf of a client is passed on to a custodian based on his confirmation. it will be treated as a shortage and the position will be auctioned/ closed-out. Downloading of securities and funds obligation statement by members. Thus. T+1 Confirmation of 6A/7A data by the Custodians. T+3 Pay-in of funds and securities by 11:00 a.

Statements giving details of the daily transactions entered into by the members. which can be downloaded by the members in their back offices on a daily basis. the Custodians have been given connectivity to BOLT System and have also been admitted as members of the Clearing House. 'B2'.Thus. In case a transaction is not confirmed by a registered Custodian. corporate or institutional clients may be either through the member himself or through a SEBI registered Custodian appointed by him or the respective client. provided early receipt of securities and monies to buyers and sellers respectively and brought Indian Capital Markets at the international standard of settlements  Settlement and Clearing System Pay-in and Pay-out for 'A'. he has to confirm the trade done by a member on the BOLT System through 6A-7A entry. In case the delivery/payment is to be given or taken by a registered Custodian. Statements giving details of margins payable by the members in respect of the trades executed by them. The Information Systems Department of the Exchange generates the following statements. The settlement of the trades (money and securities) done by a member on his own account or on behalf of his individual. The introduction of settlement on T+3 basis has resulted in reduction in settlement risk. the pay-in and pay-out of funds and securities takes places on the 3rd working day of the execution of the trade. 'C'. For this purpose. "F" & 'Z' group of securities . 'B1'. the liability for pay-in of funds or securities in respect of the same devolves on the concerned member.

The bank accounts of members maintained with the eight clearing banks. the original seller . Centurion Bank Ltd. although are required to be reported to the Exchange. effective pay-in date... In case of NSDL. except for certain off-market transactions which. fail to deliver the same. and Indusind Bank Ltd.. All deliveries of securities are required to be routed through the Clearing House. HDFC Bank Ltd... etc. are directly debited through computerized posting for their settlement and margin obligations and credited with receivables on accounts of pay-out dues and refund of margins. may be settled directly between the members concerned. the members are required to give instructions to their Depository Participant (DP) specifying settlement no. The members are required to give delivery-out instructions so that the securities are considered for pay-in. The Clearing House of the Exchange handles the share and the money parts of the settlement process in the case of 'A' and 'B1' groups.. quantity. In the former case. (CDSL) or National Securities Depository Ltd. Global Trust Bank Ltd. The securities are transferred to the Pool Account. ICICI Bank Ltd. The Clearing House handles only the money part of 'B2' group while securities are physically exchanged between the brokers. settlement type. (NSDL). UTI Bank Ltd..  Close Out There are cases when no offer for particular scrip is received in an auction or when members who offer the scrips in auction. viz.. the trades done by members in all the securities in CRS are now settled by payment of money and delivery of securities on T+3 basis. Standard Chartered Bank.As discussed earlier. Bank of India.  Demat pay-in The members can effect demat pay-in either through Central Depository Services (I) Ltd.

GDR's and Euro convertibles.  Investment by fiis through following alternative routes. 2. However. permitted upto 51 per cent in all priority areas. in applying the ceiling of 24 percent the following are excluded:  Foreign investment under a financial collaboration (DFI). which is.member's account is debited and the buyer member's account is credited at the closeout rate. Offshore Single/Regional funds.5 Opportunities available for foreign investors 1. the offer or member's account is debited and the buyer member's account is credited at the close-out rate. Investment through Stock Exchanges Foreign Institutional Investors (FII) upon registration with the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) are allowed to operate in Indian Stock Exchanges subject to the guidelines issued for the purpose by SEBI. In the latter case. 3. foreigners can even have holding upto 100 per cent. Direct investment Foreign Companies are now permitted to have a majority stake in their Indian affiliates except in a few restricted industries. . The holding of a single FII in any one company is subject to a ceiling of 5 per cent of the total issued capital. Portfolio investment in primary or secondary markets will be subject to a ceiling of 24 per cent of issued share capital for the total holding of all registered fiis in any one company. Important requirements under the guidelines are as under: I. In certain specific industries.

Asset Management Companies/Merchant Banking Foreign Participation in Asset Management Companies and Merchant Banking Companies is permitted. Guidelines for the purpose have been issued by SEBI. A registered FII is required to buy or sell only for delivery. It is also not allowed to sell short.  Any change in key managerial personnel.6 Disclosure & Listing Norms Companies who wish to raise money from capital market follow guidelines relating to disclosure. Investment in Euro Issues/Mutual Funds Floated Overseas Foreign investors can invest in Euro issues of Indian companies and in India-specific funds floated abroad. III. Broking Business Foreign brokers upon registration with the SEBI are now allowed to route the business of registered fiis. . 3. 3. Some of the disclosure norms are:  Details of other income if it constitutes more than ten percent of total income. 4. 5. It should not offset a deal.  All adverse events affecting the operations of the company.II. However. Disinvestments will be allowed only through a broker of a Stock Exchange. laid down by the Securities and Exchange Board of India.  Risk factors specific to the project and those which are external to the company. foreign brokers at present are not allowed membership in India Stock Exchanges.

settlement related daily transactions inputs and outputs were uploaded and downloaded from the TWS in the brokers’ offices.  Any take-over offer made either voluntarily or compulsorily to a company requires a public announcement by both the offer and the offered company.  The company must explain to the Stock Exchange any large variation between audited and unaudited results in respect of any item. including the existing holding the Exchange must be notified within two days of such acquisition by the company or by authorized intermediary or by the acquirer. Important disclosures are:  The company is required to furnish unaudited half-yearly financial results in the prescribed Performa. offers. Phase II: In 1994. .7 Computerized Trading BSE computerized its trading and settlement activities by following a three-phased approach. 3.  When any person or an institution acquires or agrees to acquire any security of a company which would result in his holding five percent or more of the voting capital of the company.The listing requirements with the Exchange call for further disclosure by companies to promote public confidence. DIDS was commissioned in November 1992 to disseminate bids. actual rates of transactions and indices on a real time basis. Phase I: The primary objective of this phase was the real time dissemination of price data through the Display Information Driver System (DIDS).

855 Deals BSE Sensitive Index 4285.) Average Number of Daily 75.010 73.54 End) No.76 (In US $ Billion) 97.25 (Year End) BSE 2000 585.86 194.000 65.000 system.Billion) 717.24 0.07 365.35 450. 1995.32 2.52 3778.850 (In Million Nos.10 Average Daily Turnover (In Rs.89 238.71 4354.792 1.38 3.87 1881.16 (In US $ Billion) 0.67 168.Mar (Apr.37 153.51 14.00 2280.64 (In US $ Billion) 22.72 116.50 26.78 2.786 85.57 1549. all scrips-exceeding 5000 had been put on the BOLT system. The BOLT system was commissioned with the Himalaya K 10.000 central trading computer hardware.Phase III: Commissioned on March 14.84 1.Mar (Apr.Mar) ) ) ) ) No.95 3366.49 500.55 21.515 3. Of Listed Companies 2061 2861 3585 4702 5603 Market Capitalization (In Rs.07.40 1829. Stock Market Indicators 1991-92 1992-93 1993-94 1994-95 1995-96 (Apr.71 1021.Mar (Apr.23 0.61 (Year End) BSE National Index 1967.97 345.57 Velocity 0.78 14.19 234.07 0. screen based trading started with 818 scrips.24 0.Billion) 3.27 Annual Turnover (In Rs.46 3680.313 7.71. Of 145 308 366 .99 3260.81 5264.96 836.77 456.35. Although.16 0.8 7.535 63.42.Billion) 3059.53 1605.24.13 59.85 138.40 (Year End) Dollex (Year 261. Since then the hardware has been upgraded to the Himalya K 20.06 No. by the 70th day of its commissioning.25 124. The system provides for a response time of two seconds and can handle more than two hundred thousand trades in a day.50. Of Shares Traded 6.29 677.06 0.10 0.12 0.Mar (Apr.

BSE has applied for permission from SEBI to expand BOLT to other centres. BSE in collaboration with Bank of India (BOI) will shortly establish a depository. . Of Members (Year End) No. Expansion of BOLT would bring more investors into the ambit of the capital market and consequently add depth to it. the President of India promulgated an Ordinance.92 641 63 3.63 0.67 636 26 31. which allowed for establishment of depositories.95 558 4 558 4 628 4 21. Billion) (In US $ Billion) No.Registered Flls (In Rs.85 0.24 0. Of Corporate Members (Year End) Fll Net investment 29.8 Future Developments In 1995.

510 crore in the equities segment accounting for 45% of the total market. 1994 and within a short span of 1 year became the largest exchange in India in terms of volumes transacted. the NSE has been co-sponsored by other development/ public finance institutions. NSE started equity trading on November 3.19. NATIONAL STOCK EXCHANGE 4.7 crore in November 1994 to Rs. Sponsored by the industrial development bank of India. During the year 2004-2005. LIC.4. It provides a modern. Trading volumes in the equity segment have grown rapidly with average daily turnover increasing from Rs. NSE reported a turnover of Rs. banks and other financial institutions such as SBI Capital Market. Infrastructure leasing and finance and so on. NSE introduced for the first time in India. fully automated screen based trading. which transcends geographical barriers. Stockholding corporation.6 lakh trades on a daily basis. Having operationalised both the .6797 crore in February 2005 with an average of 14.1 General Introduction The National Stock Exchange (NSE) is India's leading stock exchange covering around 400 cities and towns all over India. GIC. fully computerized trading system designed to offer investors across the length and breadth of the country a safe and easy way to invest or liquidate investments in securities. 39. The NSE represented an attempt to overcome the fragmentation of regional markets by providing a screen-based system. India has had a history of stock exchanges limited in their operating jurisdiction to the cities in which they were set up.

Its main objectives has been to set up comprehensive facilities for the entire range of securities under a single umbrella. Reliance Industries Ltd. Sector Electrical equipment Cement and cement products Power Electrical Equipment Banks Pharmaceuticals Power Refineries .  To ensure equal access to investors across the country through an appropriate o Communication network. which will provide futures and options in equity.  To provide a fair. NTPC Ltd. ACC Ltd. and  To meet the current international standards prevalent in the securities Industry/markets. Some Companies represented in the Nifty Company name ABB Ltd.  To ensure shorter settlement cycles and book entry settlement systems.  To set up a nation wide trading facility for equities. Banks Dr. debt instruments and o Hybrids. HDFC Bank Ltd. namely.debt and equity markets. Power Bharat Heavy Electricals Ltd. efficient and transparent securities market to investors using the electronic trading system. the NSE is planning for a derivative market. Tata Power Co. Ltd. Reddy's Laboratories Ltd.

Punjab National Bank National Aluminum Co.3 Listing The prime objective of admission to dealings on the Exchange is to provide liquidity and marketability to securities as also to provide a mechanism for effective management of trading. Wipro Ltd. . Zee Entertainment Enterprises Ltd. Hindustan Unilever Ltd. NSE uses sophisticated telecommunication technology through which members can trade remotely from their offices located in any part of the country. NSE trading terminals are present in around 400 cities and towns all over India.2 Locations One of the objectives of NSE was to provide a nationwide trading facility and to enable investors’ spread all over the country to have an equal access to NSE. Larsen & Toubro Ltd. Ltd. Sterlite Industries (India) Ltd. Computers Suzlon Energy Ltd. 4. Banks Aluminum Metals Diversified Software Electrical Equipment Engineering Construction 4.

They are selected on the basis of a comprehensive selection criterion.  Trading members They are recognized members of NSE.4 Constitution The NSE has two segments for trading in securities: Wholesale Debt Market (WDM) and Capital Market (CM). Tuesday's trades shall be settled on the next Tuesday and so on. which include bank holidays. For arriving at the settlement day all intervening holidays. . Saturdays and Sundays are excluded. Separate membership is required for each segment. On the 5th working day. Various types of securities of a company are traded under a unique symbol and different series.e. The persons eligible to become tms are body corporate. This section provides a direct link to the web site of companies traded on the Exchange. 4.Securities listed on the Exchange are required to fulfill the listing eligibility criteria. the trades in rolling settlement are settled on a T+5 basis i.  Trading Mechanism Rolling Settlement In a rolling settlement. In NSE. NSE holidays. each trading day is considered as a trading period and trades executed during the day are settled based on the net obligations for the day. Typically trades taking place on Monday shall be settled on the next Monday. subsidiaries of banks and financial institutions.

In order to ensure that the overall FII ceiling limits are not violated. In this segment quantity not exceeding 500 shares of each security held in the name of the investor can be traded. trading members are allowed to enter sell orders in this market segment only for their FII clients.Limited Physical Market Pursuant to SEBI guidelines. This has helped reduce jobbing spreads not only on NSE but in other exchanges as well. The list of these securities is notified by SEBI from time to time. NSE has made it . However. NSE consciously opted in favour of an order driven system as opposed to a quote driven system. This resulted in a great deal of uncertainty and high transaction costs. NSE introduced a new market called Limited Physical Market to provide a facility to small investors to trade and settle physical shares in those securities where compulsory dematerialized trading and settlement is enforced by SEBI. Till the advent of NSE. Trade for Trade Segment Trading in this segment is available only for those securities. Trading System NSE operates on the 'National Exchange for Automated Trading' (NEAT) system. The settlement of transactions in this segment is in demat mode only. which have not established connectivity with both the depositories as per SEBI directive. thus reducing transaction costs. a fully automated screen based trading system. which adopts the principle of an order driven market. Institutional Segment Trading in this market segment is available for institutional investors only. members can enter buy orders on behalf of FII/FI clients. an investor wanting to transact in a security not traded on the nearest exchange had to route orders through a series of correspondent brokers to the appropriate exchange.

 Market Types The NEAT system in NSE has four types of market. and Negotiated Trade Orders and Stop Loss orders depending on their order attributes. is one. Special Term orders. Currently the odd lot market facility is used for the Limited Physical Market as per the SEBI directives.  Odd Lot Market All orders whose order size is less than the regular lot size are traded in the odd-lot market. They are:  Normal Market All orders which are of regular lot size or multiples thereof are traded in the Normal Market. An order is called an odd lot order if the order size is less than regular lot size. which are traded in the compulsory dematerialized mode the market lot of these shares. irrespective of location. both the price and quantity of both the orders (buy and sell) should exactly match for the trade to take place. These orders do not have any special terms attributes attached to them. For shares. at the same price and at the same cost.possible for an investor to access the same market and order book. In an odd-lot market.  Spot Market . Normal market consists of various book types wherein orders are segregated as Regular lot orders.

the Exchange on behalf of trading members for settlement related reasons initiates’ auctions. 3.  Initiator The party who initiates the auction process is called an initiator.  Solicitor The party who enters orders on the opposite side as of the initiator is called a Solicitor. Orders are first numbered and time-stamped on receipt and then immediately .  Auction Market In the Auction Market. There are 3 participants in this market.5 Order Books The NSE trading system provides complete flexibility to members in the kinds of orders that can be placed by them. These orders do not have any special terms attributes attached to them.  Competitor The party who enters orders on the same side as of the initiator is called a Competitor.Spot orders are similar to the normal market orders except that spot orders have different settlement period’s vis-à-vis normal market. Currently the Spot Market is being used for the Automated Lending & Borrowing Mechanism (ALBM) session.

then the orders are stored in different 'books'. a) All or None (AON) b) Minimum Fill (MF) c) Stop Loss (SL) 2. Special Terms Book The Special Terms book contains all orders that have either of the following terms Attached: a) All or None (AON) b) Minimum Fill (MF) Note: Currently.  Within Price. . The Capital Market segment has following types of books 1. Regular Lot Book The Regular Lot Book contains all regular lot orders that have none of the following attributes attached to them. the order that is entered first gets the higher priority. Negotiated Trade Book The Negotiated Trade book contains all negotiated order entries captured by the system before they have been matched against their counterparty trade entries. AON and MF are not available on the system as per the SEBI directives. 3.Price priority means that if two orders are entered into the system. by time priority-Time priority means if two orders having the same price are entered. the order having the best price gets the higher priority. If a match is not found.processed for potential match. Orders are stored in price-time priority in various books in the following sequence:  Best Price. Every order has a distinctive order number and a unique time stamp on it.e. special term orders i.

Currently. 7. The system attempts to match an active spot lot order against the passive orders in the book. The system attempts to match an active odd lot Order against passive orders in the book. Auction Book This book contains orders that are entered for all auctions. When the trigger price is reached or surpassed.A sell order in the Stop Loss book gets triggered when the last traded price in the normal market reaches or falls below the trigger price of the order. The matching process For auction orders in this book is initiated only at the end of the solicitor period. . The stop loss condition is met under the following circumstances: Sell order . Currently the Spot Market book type is being used for conducting the Automated Lending & Borrowing Mechanism (ALBM) session.These entries are matched with identical counterparty entries only. 6. the order is released in the Regular lot book. This is referred as the Limited Physical Market (LPM). Spot Book The Spot lot book contains all spot orders (orders having only the settlement period different) in the system. Stop-Loss Book Stop Loss orders are stored in this book till the trigger price specified in the order is reached or surpassed. pursuant to a SEBI directive The Odd Lot Market is being used for orders which has a quantity less than or Equal to 500 (Qty more than the market lot) for trading. Odd Lot Book The Odd lot book contains all odd lot orders (orders with quantity less than Marketable lot) in the system. 4. It is to be noted that these entries contain a counter party code in addition to other order details. 5.A buy order in the Stop Loss book gets triggered when the last traded price in the normal market reaches or exceeds the trigger price of the order. Buy order .

Members can proactively enter orders in the system. a seller would obviously like to sell at the highest possible buy price that is offered. Alternatively. 4. Orders are always matched at the passive order price. An order may match partially with another order resulting in multiple trades. This is because the system views all buy orders available from the point of view of a seller and all sell orders from the point of view of the buyers in the market.7 Order Conditions A Trading Member can enter various types of orders depending upon his/her requirements. the best buy order is the one with the highest price and the best sell order is the one with the lowest price.3. For example Time Conditions . So. Orders lying unmatched in the system are 'passive' orders and orders that come in to match the existing orders are called 'active' orders. of all buy orders available in the market at any point of time. which will be displayed in the system till the full quantity is matched by one or more of counter-orders and result into trade(s) or is cancelled by the member.6 Order Matching Rules The best buy order is matched with the best sell order. This ensures that the earlier orders get priority over the orders that come in later. Hence. the best buy order is the order with the highest price and the best sell order is the order with the lowest price. For order matching. These conditions are broadly classified into three categories: time related conditions. pricerelated conditions and quantity related conditions. members may be reactive and put in orders that match with existing orders in the system.

Note: Currently. and the unmatched portion of the order is cancelled immediately.A Good Till Cancelled (GTC) order is an order that remains in the system until the Trading Member cancels it. as the name suggests.A Day order. The Exchange notifies the maximum number of days a GTC order can remain in the system from time to time. The Exchange notifies the maximum number of days a GTD order can remain in the system from time to time. It will therefore be able to span trading days if it does not get matched. failing which the order will be removed from the market. This may be by way of multiple trades. AON and MF orders are not available on the system as per SEBI directives.  GTC .  AON . Each day/date counted is a calendar day and inclusive of holidays. If the full order is not matched it will stay in the books till matched or cancelled.  GTD .8 Price Conditions Limit Price/Order .A Good Till Days/Date (GTD) order allows the Trading Member to specify the days/date up to which the order should stay in the system.All or None orders allow a Trading Member to impose the condition that only the full order should be matched against.An Immediate or Cancel (IOC) order allows a Trading Member to buy or sell a security as soon as the order is released into the market. Partial match is possible for the order. DAY . is an order which is valid for the day on which it is entered. 4. At the end of this period the order will get flushed from the system. The days/date counted are inclusive of the day/date on which the order is placed. If the order is not matched during the day.  IOC . the order gets cancelled automatically at the end of the trading day.

the trigger is 93. the limit price is 95. Buy order A buy order in the Stop Loss book gets triggered when the last traded price in the normal market reaches or exceeds the trigger price of the order. Sell order A sell order in the Stop Loss book gets triggered when the last traded price in the normal market reaches or falls below the trigger price of the order.00 and the market (last traded) price is 90.00. then this order is released into the system once the market price reaches or exceeds 93. Market Price/Order An order to buy or sell securities at the best price obtainable at the time of entering the order.00. If for stop loss buy order. Stop Loss (SL) Price/Order The one which allows the Trading Member to place an order which gets activated only when the market price of the relevant security reaches or crosses a threshold price. Until then the order does not enter the market.00.g. .An order. which allows the price to be specified while entering the order into the system. This order is added to the regular lot book with time of triggering as the time stamp.00. E. as a limit order of 95.

Order Modification. Security List and Help. Net Position. Order Status. A member can have several user ids allotted to him by which he can have more than one employee using the system concurrently. Market Movement. Market Inquiry. Tool Bar A window with different icons which provides quick access to various functions such as Market By Order. Previous Trades. Ticker Window . Supplementary Menu. Activity Log. Snap Quote. Market Watch. Sell order entry. Auction Inquiry. Order Cancellation.4. Trader Workstation Screens The Trader Workstation screen of the Trading Member is divided into several major windows: Title Bar The title bar displays the current time. Online Backup. All these functions are also available on the keyboard. Market By Price. Each trader has a unique identification by way of Trading Member ID and User ID through which he is able to log on to the system for trading or inquiry purposes. Trading system name and date. A Trading Member can define a hierarchy of users of the system with the Corporate Manager at the top followed by the Branch Manager and Dealers. The Exchange may also allow a Trading Member to set up a network of dealers in different cities all of whom are provided a connection to the NSE central computer. Buy order entry.9 Trading Workstation The trader workstation is the terminal from which the member accesses the trading system. Outstanding Orders.

the user has the information on the current value of the Nifty. which appear in the ticker. The purpose of Market Watch is to view market information of pre-selected securities. High. Market Inquiry (MI) Market Inquiry enables the user to view the market statistics like Open. Last traded quantity. Last traded price change indicator. Market Watch Window The Market Watch window is the main area of focus for a Trading Member. Previous close. Index Inquiry gives information on Close. date and time etc. Most Active Securities and Net Position useful. Low and current index values at the time of invoking this inquiry screen. which are of interest to the Trading Member. This value is displayed at the extreme right hand corner of the ticker window. Market Movement (MM) . The user has the option to set-up the securities. Open. On line index and Index Inquiry With every trade in a security participating in Index.The ticker displays information about a trade as and when it takes place. Low. High. These are available in the supplementary menu. A user may find inquiry screens like Market Movement.

Open. Net Position This functionality enables the user to interactively view his net position for all securities in which he has traded.The Market Movement screen provides information to the user regarding the movement of a security for the current day. It gives details of the movement of the scrip for a time interval. Snap Quote The Snap Quote feature allows a Trading Member to get instantaneous market information on any desired security. High. Low. On line back up An on line back up facility is provided which the user can invoke to take a back up of all order and trade related information. Trading members find this convenient in their back office work. The information presented is the same as that of Market Watch window. There is an option to copy the file to any drive of the computer or on a floppy diskette. This is normally used for securities which are not already on display in the Market Watch window. The details include total buy and sell order quantity value. Off Line Order Entry A member is able to make an order entry in the batch mode. Last traded price etc. . Most Active Securities This screen gives a list of the securities with the highest traded value during the day and the quantity traded for each of them.

the writer is under an obligation to deliver. Thus. who is permitted to do trades on the screen-based trading system of different stock exchanges. Exchanges normally guarantee the writer's position. to limit default in the market. in international markets. This is purely from the options-writer's perspective. A market exists only if there is a writer and a buyer. Sub-broker A sub-broker is a person who is registered with SEBI as such is affiliated to a member of a recognized stock exchange. Since the buyer of an option contract is not under any obligation to exercise his right. 4. He is enrolled as a member with the concerned exchange and is registered with SEBI. in this situation. Currently. the margin requirements are quite high. that for index options works out to the commission received plus around 15 per cent of the contract's notional value.Trading options: Trading options are riskier than futures. they may not be allowed to write options. Hence. But given that there are few takers for the futures market. Market making in options depends to a great extent on institutions willing to write the contracts. This means the risk borne by the optionwriter is enormous. while the margin rate for index futures contracts is around 5 per cent. the regulations prevent funds from taking speculative positions in the spot market. there is excessive risk for the options-writer and transactions costs could be high. his risk is limited to the premium paid for purchasing the right. However. For instance.10 Broker and Sub-broker Broker A broker is a member of a recognized stock exchange. . it is difficult to foresee a lot of interest in the options market. So.

The member.  Proof of identity submitted either as MAPIN UID Card/Pan No.  If you are registered with any other broker. on the other hand agrees to be satisfied by the genuineness and financial soundness of the client and making client aware of his (broker’s) liability for the business to be conducted. residential status (Resident Indian/ NRI/others)  Unique Identification Number (wherever applicable)  Bank and depository account details  Income tax no.4. address. In case of individual client registration. (PAN/GIR) which also serves as unique client code. you have to broadly provide following information:  Name. for which you have to fill client registration form. For proof of address (any one of the following)  . then the name of broker and concerned Stock exchange and Client Code Number. occupation. date of birth. photograph.  Details of Client Registration form The brokers have to maintain a database of their clients.11 Client Agreement Form This form is an agreement entered between client and broker in the presence of witness where The client agrees (is desirous) to trade/invest in the securities listed on the concerned Exchange through the broker after being satisfied of brokers capabilities to deal in securities./Passport/Voter  ID/Driving license/Photo Identity card issued by Employer registered card. educational qualifications.

 Passport  Voter ID  Driving license  Bank Passbook  Rent Agreement  Ration Card  Flat Maintenance Bill  Telephone Bill  Electricity Bill  Certificate issued by employer registered under MAPIN  Insurance Policy .

5. Many times I store the data in the computer regarding clients. Some of the key learning is listed below:  How to interact with the customer and understand the nature of them.5. . Gurvinder Kaur. DISCUSSION ON TRAINING 5.2 Key Learning There I was working as a trainee. The job profile is to go in the market to meet with the customers and giving them details about the demat account in which the company is dealing.  Some client doesn’t having listened about the product. I also sent company’s representatives to the clients who need more information about his quarries. I have to tell all the features of it.1 Student’s work profile (Role and responsibilities) I am working as a trainee under the guidance of Ms. I guide them for various solutions related to demat account.  Some of them are having negative profile about the product. I also have to provide relevant information to the customers about the product.

 Analyzing the data.  Planning the research design.  Preparation of the report.  Collection of data.1 Introduction The project titled procedures & documentation of “Working of Stock Exchange in India” (With references to BSE and NSE) is clearly defined & based on systematic research design to meet the objectives of the study. .6.  Formulation of conclusion. The research process includes the following steps:  Defining the problem.  Statement of research objectives. STUDY OF SELECTED RESEARCH PROBLEMS 6. The logical analysis of various aspects of the data is made to arrive at the results of the study.  Planning the sample.

or determining the relationship between two or more variables. sex. respondents should be given sufficient freedom to express themselves. interested in knowledge the proportion of it in a given population who have behaved in a particular manner. Data Collection Method Data collection methods can be classified into two methods:  Primary methods Data directly collected by a researcher is known as Primary Data. The methods used for collecting primary data may be:  Survey  Observation Sources of primary data  Interview methods .  Descriptive research It is undertaken when researcher is interested in knowledge the characteristics of certain groups such as age.2 Types of Research  Exploratory Research It is done to generate new ideas. educational level.6. descriptive study may be necessary. occupation or income. It is generally based on secondary data that are readily available. Therefore unable to frame detailed research questions . making the projections of a certain things.

but rather for use by some other person or for some other project are termed secondary data. Secondary Methods Data not originally collected for use in the research project under consideration. Depth interviews  Mail interviews  Telephone interviews  Delphi technique. The design of a research study is based on the purpose of the study. Quantitative Research Design.3 Research Design It is a type of blueprint prepared developing on various types of blueprints available for the collection. measurement & analysis of data. Types of research design   Qualitative Research Design. . It can be classified into two categories:  Internal Sources  External Sources 6.

They help me large number of clients of this company • To be confident while dealing with the customers. I was not having much Information about the company and its products.1 Summary of leaming experience The roles and responsibility whar I was as a trainee. There are many types of customers. them.7. All the people at iCICi Bank are very supported and helpful. . It is not that I constrained myself just to trainee. Here I got the real practical experience how to talk with the customer. In my whole training period I got a chance to work with my various seniors. facilities they provide. It is very essential to know every aspect of the company is dealing in which it is dealing. It has been a great pleasure to work with ICICI Bank. We should be very confident. This company earns good reputation In the market of business card There are a One of the main aims of working there to be confident. It is not easy to handle this concept but I was never scared because I got training under the guidance of Gurivander Kaur. SUMMARY AND CONCLUSION 7. I came to know about the different benefits of the same. different mindsets of customers and prices of different packages. Confidence is one of the most Important things that Is required while dealing with the customers. In order to attract them for our product .2 Conclusation and recommendation To gain complete knowledge about company & its product. The concept is difficult but I got an opportunity to learn different ways of marketing. Before I feel hesition at the time of meeting with the customers but after working there I become very cofident in my dealings. I believe in the practical knowledge of the job. which comes across while working. so it was a great opportunity for me to improve my knowledge also how to work in selling the demat account. 1. requirements and demands of customers. • To know what position does it earns in the market every time whenever I require As a trainee.

com 5) .BIBLIOGRAPHY 1) Indian securities market 2) NSE News 3) 6) 4) Www.

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