GOVERNMENT POLYTECHNIC HINGOLI

“ The role of the bombay stock exchange in the industrial growth of india ”

Submitted in partial fulfillment of the requirement for the award of

Submitted by :

1. Gayatri Dilip Pawar(2011630156)

2.Disha Arvind Joshi(1911630017)
3.Rutuja Vishnu Mopkar (2011630153)

(CO6I)

GUIDED BY

Prof. Gajanan Mangnale

Submitted To:
Department of Computer Engineering
Government Polytechnic Hingoli
 Declaration
I hereby declare that the role of the bombay stock exchange in
the industrial growth of india project report the For the award of
degree of diploma (Computer Engineering) government polytechnic,
Hingoli.

1.Gayatri Dilip Pawar(2011630156)

2.Disha Arvind Joshi (1911630017)
3.Rutuja Vishnu Mopkar (2011630153)

Certificate
 This is certify that the entitle “ The role of the bombay stock
Exchange in the industrial growth of india
Was Successfully Completed by Students of third year diploma
In computer engineering
Project completed by

NAME OF SUTDENT &ENROLLMENT NO

1.Gayatri Dilip Pawar(2011630156)
2.Disha Arvind Joshi (1911630017)
3.Rutuja Vishnu Mopkar (2011630153)
In partial fulfilment of requirements for the award of the
Diploma in computer engineering Submitted to the
Department Of computer engineering
GOVERNMENT POLYTECHNIC HINGOLI work Carried out during

Prof. G. Mangnale Prof.N.Jadhav

Name of mentor Head of Department

Principle of College

Dr. A. Upadhyay
ABSTRACT

This research work is aimed at finding the effect of training development in

banking operations.
The purpose is to determine the relationships between the level of productivity
and human resources, training and development; discover the causes of high
labour turnover in banks, especially commerce banks.

Also to determine the whether the availability of training and development

opportunities motivate staff of banks, to enable them stick firmly to the service of
the banks.

In conducting the research, the researcher used oral interview, questionnaires

and personal observations to collect the necessary data required.

A sample size of 53 (Fifty-three) of First Bank Plc, were studied. The data collected
were statistically analyzed by the use of percentage. On the application, it was
discovered that training and development opportunities motivate workers and
improves the level of job performance of he staff of the banks. Despite the fact
that substantial number of banks’ employees have been trained, their
performance as still not encouraging.

Based on the above findings, the following recommendations were made: Banks
should ensure that their training programmes are will structured and planned;
equal opportunity for training and development should be given to evenly
member of staff at all levels. Training programme should be supported with
adequate job rotation and assignment. Training should be structured to cover
many of the practical aspects of banking services. Trainers also should be
equipped with materials and should ensure regular training for trainers to enable
them update their knowledge.
 Acknowledgement
The completion of project report on has given me immense
pleasure and knowledge. the role of the bombay stock exchange in the
industrial growth of india project report

Obligation were heavy during my project work and it is a great

pleasure to knowledge deep sense of gratitude to my guide PR. G.
Mangnale for her valuable guidance, advice, positive criticism,
suggestion and constant encouragement throughout the project.

I would also like to thank sincerely to my cousins and friends for

their help and guidance during this task.

Last but not least we are thankful to all of them who directly of
indirectlty helped us in computing this report successfully.

Introduction
1.1 Stock Exchange Definition
1.2 Features of Stock Exchange
1.3 Role of Stock Exchange
1.4 Promoting Capital Formation
1.5 Function Of Stock Exchange
1.6 Diagram of Bombay stock exchange
1.7 Reference
 INTRODUCTION

A stock exchange is a form of exchange which provides services for stock brokers
and traders to
trade stocks, bonds, and other securities. Stock exchanges also provide facilities
for issue and
redemption of securities and other financial instruments, and capital events
including the payment of income and dividends. Securities traded on a stock
exchange include shares issued by companies, unit trusts, derivatives, pooled
investment products and bonds.
To be able to trade a security on a certain stock exchange, it must be listed there.
Usually, there is a central location at least for record keeping, but trade is
increasingly less linked to such a physical place, as modern markets are electronic
networks, which gives them advantages of increased speed and reduced cost of
transactions. Trade on an exchange is by members only. The initial offering of
stocks and bonds to investors is by definition done in the primary market and
subsequent trading is done in the secondary market.
A stock exchange is often the most important component of a stock market.
Supply and demand in stock markets are driven by various factors that, as in all
free markets, affect the price of stocks (see stock valuation). There is usually no
compulsion to issue stock via the stock exchange itself, nor must stock be
subsequently traded on the exchange. Such trading is said to be off exchange or
over-the-counter. This is the usual way that derivatives and bonds are traded.
Increasingly, stock exchanges are part of a global market for securities
Stock Exchange Definition :-
According to Husband and Dockerary "Stock exchanges are privately organized
markets which are used to facilitate trading in securities. According to securities
contract ( regulation ) act of 1956 "An association, organization or body of
individuals, whether incorporated or not, established for the purpose of assisting,
regulating and controlling business in buying, selling and dealing in securities".

Features of Stock Exchange:-

1. Market for securities: Stock exchange is a market, where securities of
corporate bodies, government and semi-government bodies are bought
and sold.

2. Deals in second hand securities: It deals with shares, debentures bonds and
such securities already issued by the companies. In short it deals with
existing or second hand securities and hence it is called secondary market.

3. Regulates trade in securities: Stock exchange does not buy or sell any
securities on its own account. It merely provides the necessary
infrastructure and facilities for trade in securities to its members and
brokers who trade in securities. It regulates the trade activities so as to
ensure free and fair trade.

4. Allows dealings only in listed securities: In fact, stock exchanges maintain

an official list of securities that could be purchased and sold on its floor.
Securities which do not figure in the official list of stock exchange are called
unlisted securities. Such unlisted securities cannot be traded in the stock
exchange.
5. Transactions effected only through members: All the transactions in
securities at the stock exchange are effected only through its authorised
brokers and members. Outsiders or direct investors are not allowed to
enter in the trading circles of the stock exchange. Investors have to buy or
sell the securities at the stock exchange through the authorised brokers
only.

6. Association of persons: A stock exchange is an association of persons or

body of individuals which may be registered or unregistered.

7. Recognition from Central Government: Stock exchange is an organised

market. It requires recognition from the Central Government.

8. Working as per rules: Buying and selling transactions in securities at the

stock exchange are governed by the rules and regulations of stock
exchange as well as SEBI Guidelines. No deviation from the rules and
guidelines is allowed in any case.

9. Specific location: Stock exchange is a particular market place where

authorised brokers come together daily (i. e. on working days) on the floor
of market called trading circles and conduct trading activities. The prices of
different securities traded are shown on electronic boards. After the
working hours market is closed. All the working of stock exchanges is
conducted and controlled through computers and electronic system.

10.Financial Barometers: Stock exchanges are the financial barometers and

evelopment indicators of national economy of the country. Industrial
growth and stability is reflected in the index of stock exchange.
The group eventually moved to Dalal Street in 1874 and in 1875 became an
official organization known as 'The Native Share & Stock Brokers
Association'. In 1956, the BSE became the first stock exchange to be
recognized by the Indian Government under the Securities Contracts Regulation
Act. The Bombay Stock Exchange developed the BSE SENSEX in 1986, giving the
BSE a means to measure overall performance of the exchange. In 2000 the BSE
used this index to open its derivatives market, trading SENSEX futures contracts.
The development of SENSEX options along with equity derivatives followed
in 2001 and 2002, expanding the BSE's trading platform. Historically an open
outcry floor trading exchange, the Bombay Stock Exchange switched to an
electronic trading system in 1995. It took the exchange only fifty days to make
this transition. This automated, screen-based trading platform called BSE On-line
trading (BOLT) currently has a capacity of 8 million orders per day. The BSE has
also introduced the world's first centralized exchange-based internet trading
system, BSEWEBx. o. in to enable investors anywhere in the world to trade on the
BSE platform. The BSE is currently housed in Phiroze Jeejeebhoy Towers at Dalal
Street, Fort area. NATIONAL STOCK EXCHANGE The National Stock Exchange (NSE)
is stock exchange located at Mumbai, India. It is in the top 20 largest stock
exchanges in the world by market capitalization and largest in India by daily
turnover and number of trades, for both equities and derivative trading. NSE has
a market capitalization of around US$1 trillion and over 1,652 listings as of July
2012.
Though a number of other exchanges exist, NSE and the Bombay Stock Exchange
are the two most significant stock exchanges in India, and between them are
responsible for the vast majority of share transactions. The NSE's key index is the
S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an
index of fifty major stocks weighted by market capitalization. NSE is mutually
by a set of leading financial institutions, banks, insurance companies and other
financial intermediaries in India but its ownership and management operate as
separate entities.
The development of SENSEX options along with equity derivatives followed in
2001 and 2002, expanding the BSE's trading platform. Historically an open outcry
floor trading exchange, the Bombay Stock Exchange switched to an electronic
trading system in 1995. It took the exchange only fifty days to make this
transition. This automated, screen-based trading platform called BSE On-line
trading (BOLT) currently has a capacity of 8 million orders per day. The BSE has
also introduced the world's first centralized exchange-based internet trading
system, BSEWEBx. o. in to enable investors anywhere in the world to trade on the
BSE platform. The BSE is currently housed in Phiroze Jeejeebhoy Towers at Dalal
Street, Fort area. NATIONAL STOCK EXCHANGE The National Stock Exchange (NSE)
is stock exchange located at Mumbai, India. It is in the top 20 largest stock
exchanges in the world by market capitalization and largest in India by daily
turnover and number of trades, for both equities and derivative trading. NSE has
a market capitalization of around US$1 trillion and over 1,652 listings as of July
2012.
Though a number of other exchanges exist, NSE and the Bombay Stock Exchange
are the two most significant stock exchanges in India, and between them are
responsible for the vast majority of share transactions. The NSE's key index is the
S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an
index of fifty major stocks weighted by market capitalization. NSE is mutually
owned by a set of leading financial institutions, banks, insurance companies and
other financial intermediaries in India but its ownership and management operate
as separate entities.
There are at least 2 foreign investors NYSE Euro next and Goldman Sachs who
have taken a stake in the NSE. As of 2006, the NSE VSAT terminals, 2799 in total,
cover more than 1500 cities across India. In 2011, NSE was the third largest stock
exchange in the world in terms of the number of contracts (1221 million) traded
in equity derivatives. It is the second fastest growing stock exchange in the world
with a recorded growth of 16. 6%.
Role of stock exchange:-
Effective Mobilisation Of Savings Stock exchanges provide organised market for
an individual as well as institutional investors.
They regulate the trading transactions with proper rules and regulations in order
to ensure investor's protection. This helps to consolidate the confidence of
investors and small savers. Thus, stock exchanges attract small savings especially
of large number of investors in the capital market.

Promoting Capital formation:-

The funds mobilised through capital market are provided to the industries
engaged in the production of various goods and services useful for the society.
This leads to capital formation and development of national assets. The savings
mobilised are channelised into appropriate avenues of investment. Wider
Avenues of investment Stock exchanges provide a wider avenue for the
investment to the people and organisations with investible surplus. Companies
from diverse industries like Information Technology, Steel, Chemicals, Fuels and
Petroleum, Cement, Fertilizers, etc. offer various kinds of equity and debt
securities to the investors. Online trading facility has brought the stock exchange
at the doorsteps of investors through computer network. Diverse type of
securities is made available in the stock exchanges to suit the varying objectives
and notions of different classes of investor.

Necessary information from stock exchanges available from different sources

guides the investors in the effective management of their investment portfolios. *
Liquidity of investment Stock exchanges provide liquidity of investment to the
investors. Investors can sell out any of their investments in securities at any time
during trading days and trading hours on stock exchanges. Thus, stock exchanges
provide liquidity of investment. The on-line trading and online settlement of
demat securities facilitates the investors to sellout their investments and realise
the proceeds within a day or two.
Even investors can switch over their investment from one security to another
according to the changing scenario of capital market. * Investment priorities Stock
exchanges facilitate the investors to decide his investment priorities by providing
him the basket of different kinds of securities of different industries and
companies. He can sell stock of one company and buy a stock of another company
through stock exchange whenever he wants. He can manage his investment
portfolio to maximise his wealth. * Investment safety.

Stock exchanges through their by-laws, Securities and Exchange Board of India
(SEBI) guidelines, transparent procedures try to provide safety to the investment
in industrial securities. Government has established the National Stock Exchange
(NSE) and Over The Counter Exchange of India (OTCEI) for investors' safety.
Exchange authorities try to curb speculative practices and minimise the risk for
common investor to preserve his confidence. * Financial resources for public and
private sectors Stock Exchanges make available the financial resources available
to the industries in public and private sector through various kinds of securities.

Due to the assurance of liquidity, marketing support, investment safety assured

through stock exchanges, the public issues of securities by these industries
receive strong public response (resulting in oversubscription of issue). Funds for
Development Purpose Stock exchanges enable the government to mobilise the
funds for public utilities and public undertakings which take up the developmental
activities like power projects, shipping, railways, telecommunication, dams &
roads constructions, etc.

Stock exchanges provide liquidity, marketability, price continuity and constant

evaluation of government securities. Indicator of Industrial Development Stock
exchanges are the symbolic indicators of industrial development of a nation.
Productivity, efficiency, economic-status, prospects of each industry and every
unit in an industry is reflected through the price fluctuation of industrial securities
on stock exchanges. Stock exchange sensex and price fluctuations of securities of
various companies tell the entire story of changes in industrial sector. Barometer
of National Economy Stock exchange is taken as a Barometer of the economy of a
country. Each economy is economically symbolized (indicators) by its most
significant stock exchange. New York Stock Exchange, London Stock Exchange,
Tokyo Stock Exchange and Bombay Stock Exchange are considered as barometers
of U. S. A, United Kingdom, Japan and India respectively. At both national and
international level these stock exchanges represent the progress and conditions
of their economies.

Functions of Stock Exchange:

Stock exchange provides a ready and continuous market for purchase and sale of
securities. It provides ready outlet for buying and selling of securities. Stock
exchange also acts as an outlet/counter for the sale of listed securities. Facilitates
evaluation of securities Stock exchange is useful for the evaluation of industrial
securities. This enables investors to know the true worth of their holdings at any
time. Comparison of companies in the same industry is possible through stock
exchange quotations (i. e price list). Encourages capital formation.

Stock exchange accelerates the process of capital formation. It creates the habit
of saving, investing and risk taking among the investing class and converts their
savings into profitable investment. It acts as an instrument of capital formation. In
addition, it also acts as a channel for right (safe and profitable) investment.
Provides safety and security in dealings Stock exchange provides safety, security
and equity (justice) in dealings as transactions are conducted as per well defined
rules and regulations. The managing body of the exchange keeps control on the
members.

Fraudulent practices are also checked effectively. Due to various rules and
regulations, stock exchange functions as the custodian of funds of genuine
investors. Regulates company management Listed companies have to comply
with rules and regulations of concerned stock exchange and work under the
vigilance (i. e supervision) of stock exchange authorities. Facilitates public
borrowing Stock exchange serves as a platform for marketing Government
securities. It enables government to raise public debt easily and quickly. Provides
clearing house facility.
Stock exchange provides a clearing house facility to members. It settles the
transactions among the members quickly and with ease. The members have to
pay or receive only the net dues (balance amounts) because of the clearing house
facility. Facilitates healthy speculation Healthy speculation, keeps the exchange
active. Normal speculation is not dangerous but provides more business to the
exchange. However, excessive speculation is undesirable as it is dangerous to
investors & the growth of corporate sector. Serves as Economic Barometer

Stock exchange indicates the state of health of companies and the national
economy. It acts as a barometer of the economic situation / conditions. Facilitates
Bank Lending Banks easily know the prices of quoted securities. They offer loans
to customers against corporate securities. This gives convenience to the owners
of securities.

Thus, stock exchange serves the nation in several ways through its diversified
economic services which include imparting liquidity to investments, providing
marketability, enabling evaluation and ensuring price continuity of securities.
Thus we can say that Stock exchange is the mirror of economy

Diagram of Bombay stock exchange

References
Financial Management – I. M Pandey
Financial Management – Prasanna Chandra
Business studies – B. S Raman
Business studies – P. K Lasar
http://moneycontrol. com
http://investopedia. com
http://wikipedia. com
http://kalyan-city. blogspot. in