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• There are 23 stock exchanges in the India. Mumbai's (earlier known as Bombay), Bombay Stock Exchange is the largest, with over 6,000 stocks listed. The BSE accounts for over two thirds of the total trading volume in the country. Established in 1875, the exchange is also the oldest in Asia. Among the twenty-two Stock Exchanges recognized by the Government of India under the Securities Contracts (Regulation) Act, 1956, it was the first one to be recognized and it is the only one that had the privilege of getting permanent recognition ab-initio.
Magadh stock exchange(Patna) 6.madras stock exchange .Bhubaneswar stock exchange 9.Bombay stock exchange 2.vadodara stock exchange(Baroda) 8.Ahmedabad stock exchange 7.Utter pradesh stock exchange(kanpur) 5.national stock exchange(Mumbai) 3.Calcutta stock exchange(kolkata) 10.Name of Indian stock exchange: • • • • • • • • • • 1.Banglore stock exchange 4.
• • • • • • • • • • • • • 11.saurashtrakutch stock exchange 21.Pune stock exchange 20.Jaipur stock exchange 17.Gauhati stock exchange 14.Madhya pradesh stock exchange(indore) 16. OTC Exchange Of India .Meerat Stock exchange 23.Cont…….Cochin stock exchange 12.Hydrabad stock exchange 15.Mangalore stock exchange 19. Delhi Stock exchange 22.coimbatore stock exchange 13.Ludhina stock exchange 18.
DLF 7.HDFC 10.CIPLA 6.BHEI 5.BAJAJ 3. • • • • • • • • • • • Bombay stock exchange : it has 30 companies sripted.HDFC BANK .AIRTEL 4.ACC 2.GRASIM 8.GUJRAT AMBUJA 9.Cont……. Name:1.
CONT…… • • • • • • • • • • 11.HERO HONDA 12.INFICYS 16.HUL 14.MARUTI 19.ICICI BANK 15.ONGC .HINDALCO 13.L&T 18.ITC 17.NTPC 20.
CONT…… • • • • • • • • • • 21.TATA STEEL 30.TCS 28.SBI 27.WIPRO .RANBAXY 22.RELIANCE ENERGY 24.SATYAM 26.RELIANCE COMMUNICATION 23.TATA MOTERS 29.RIL 25.
769. 2007 --. 2008 --.1.616.43 points Jan 18. 2008 --.717. 10.18 points Aug 16.687.857 points Feb 11.73 points . Jan 21. 2008 --. 2.70 points Apr 2.678. 2007 --.THE TOP TEN SINGLE DAY FALLS OF THE SENSEX HAS : 1.82 points Nov 21.48 points Oct 17. 9.642. 4. 3.98 points May 18. 2007 --.826 points Dec 17. 8. 2007 --. 2006 --.408. 2007 --. 7.833. 5.35 points Jan 22. 6. 2007 --.
BSE CHART • .
04 Day's Range: 17.17.80 .503.734.349.07 Trade Time: 3:58PM IST Change: 385.17%) Prev Close: 17.309.68 Open: 17.61 (2.47 .• • • • • • • • • • • Index Value: 17.526.
It was set up in 1993 to encourage stock exchange reform through system modernization and competition. The instruments traded are. It was recently accorded recognition as a stock exchange by the Department of Company Affairs. is India's first debt market.NSE • The National Stock Exchange (NSE). treasury bills. located in Bombay. government security and bonds issued by public sector companies . It opened for trading in mid-1994.
CONT………. • The Organisation: The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges. which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. .
CONT……… • Based on the recommendations. NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a taxpaying company unlike other stock exchanges in the country .
National Securities Depository Ltd.Cont……………………. National Securities Clearing Corporation Ltd. 4.. (IISL) 2. NSE. (NSDL) 5. (NSCCL) 3. DotEx International Limited .ss • NSE Group: 1. India Index Services & Products Ltd.IT Ltd.
currencies.commodities.holding.SPECULATION : • Definition : it involves the buying.collectibles or any valuable financial instrument to profit from fluctuations in its price as opposed to buying it for use or for income via method like dividends or interest.bonds.selling. .shortterm selling of stocks.
• Bear Market (Mandiwala) : He sells security in the hope that he will be able to buy them back at lesser price.he is also called a long buyer. .Kinds of speculation • Bull Market (Tejiwala): In case of that they purchase the shares at current prices to sell at a higher price in the near future and makes a profit if his expectations come true.It is also called “short selling”.
.. .find it difficult to meet his commitment due to non-availability of security.they always struggling.Cont……………… • Lame duck : When a bear has made contracts to sell securities.He is bullish and very cautious. • Stag : He is that type of speculator who applies for a large number of a shares in a new issue with the intention of selling them at a premium.
20 Japanese Yen 0.48 GB Pound 81.Forex Market • • • • • • • • • • Mar 19. 4:30 P.M.45(US.4072 S'pore Dollar 29.CurrencyIN .DOLLAR) Euro 63. 40.160 .
BENEFITS OF STOCK EXCHANGE • FROM THE POINT OF VIEW OF COMMUNITY: • 1.It encourages capital formation • 4. • 3. • 2.Government can undertake projects of national importance and social value raising funds through the sale of its securities on the stock exchange. • 5.It assist the economis development by providing a body of interested investors.It is the stock exchanges that central bank of a country can control credit by undertaking open market operations (purchase and sale of securities) .it uploads the position of superior enterprises and assist them in raising further funds.
• 3.This raises the bargaining power of the company in the event of a takeover. . • 2.FROM THE COMPANY POINT OF VIEW • 1.The market for the shares of such a company is naturally widened.A company whose shares quoted on stock exchange they enjoy better reputation and credit.The market price of securities is likely to be higher in relation to its earnings.dividends and property values.merger or amalgamation.
• 3.The stock exchange safeguards interests of investors through strict enforcement of rules and regulations.FROM THE INVESTORS POINT OF VIEW • 1. . • 4. • 5.The securities dealt on a stock exchange are good collateral security for loans.His risk is considerably less when he holds or purchases listed securities.The present net worth of investments can be easily known by the daily quotations.Liquidity of the investment is increased • 2.
DEBENTURE HOLDER .SHAREHOLDER • 2.ROLE PLAYER • EXTERNAL:---• 1.
.Preference shareholder: Preference shareholder are those which have preferential right to the payment of dividend during the life time of the company.and a preferential right to the return of the capital when the company is wound up.SHAREHOLDER • Shareholders are divided into two parts • 1.
• 2.They get their fixed rate of dividend before any dividend is distributed among the other class of shareholders.At the time of winding up of the company. • 3. .CHARACTERISTICS OF PREF. the preference shareholder must be paid back their capital before anything is paid to the ordinary shareholders.SHAREHOLDER • 1.The dividend on them is fixed by the articles of the company.
If profits are not sufficient to pay in a particular year then that will pay on next year. • 2.SHAREHOLDER • 1.Non comulative pref.KINDS OF PREF.share: These shares cannot claim arrears of dividends of any year (if not paid due to insufficiency of pfofits ) out of rofits of subsequent year. .Comulative shareholder: These shares are entitled to fixed dividends whether there are profits or loss.
The company researves its rights to call back or purchased these shares at any time .Redeemable pref. . • 4.shares: These are shares which can be purchased back by the company. • 3.Cont……. Shares: These shares receives a fixed rate of dividend in priority to ordinary shares and further.Participating pref.the right to participate in balance of profits in an agreed proportion together with ordinary shares.
EQUITY SHARES • All shares which are not preference shares are equity shares.they are always irredeemable and their holders have normal voting rights.These shares do not have a fixed rate of dividend. • They are also the owners of the company. • They take dividend .
DEBENTURES • A document under the company seal which provides for the payment of a principal sum and interest there on at regular intervals which is usually secured by a fixed or floating charge on the company’s property or undertaking which acknowledges a loan to the company. .
He purchase and sells securities in his own name.They may have number of sub-brokers to canvass and secure business for them.Jobber: He is an independent dealer securities. He is not allowed to deal with nonmembers directly.INTERNAL PLAYERS • The members of the stock exchange can be divided into two parts: • A. .Broker: He is a commission agent who transacts business in securities on behalf of nonmembers. • B.He works for profit.
They can not transact business on their own account. He is also called the half commission men.They buy or sell on the behalf of employers. • Authorized clerks: They are the assistant or agents. • Remisers: They are the sub-brokers. .Tarawaniwala • Non-members : The following categories of non members are also permitted to enter trading hall and transact business on the behalf of members.
SPECULATIVE PRESSURE 4.CHANGE IN COMPANY’S BOARD OF DIRECTORS • 6.CAUSES OF PRICE FLUCTUATION • • • • 1.DAMAND AND SUPPLY 2.ACTIONS OF UNDERWRITERS AND OTHER FINANCIAL INSTITUTIONS • 5.BANK RATE 3.FINANCIAL POSITION OF THE COMPANY .
POLITICAL FACTORS 9.EXPECTED MONSOON B.OIL PRICES IN THE INTERNATIONAL MARKET.TRADE CYCLE 8.CONT…….PERSONAL HEALTH OF HEAD OF GOVERNMENT OR CHAIRMAN OF THE COMPANY • C. • • • • • • 7.OTHER FACTORS: A.SYMPATHETIC FLUCTUATIONS 10.. .
STOCK BROKERS SCAM LIKE HARSHAD MEHTA AND KETHAN PAREKH • G. .LOBERLIZATION AND PRIVATIZATION OF THE COMPANY.CONT……. • D.NEW BUDGET PROPOSALS • I.BORDER TENSION • F.STRIKES AND LOCK-OUT OF THE COMPANY.CHANGES IN EXCHANGE RATE • E. • H.
in respect of regulation of stock exchanges were transferred to the SEBI. some of the powers and function exercised by the central government.With the coming into effect of SEBI. .SEBI • It was constituted and made a statutory body by SEBI act 1992.
.OBJECTIVES OF SEBI • 1.share transfer agents. • 2.underwriters………. • 4.Prohibiting insider trading in securities.Registring and regulating the working of stock brokers.Registering and regulating the working of collective investment scheme including mutual funds.sub-brokers. • 3.Regulating substantial acquisition of shares and takeovers of companies.who may be associated securities market in any manner.
as may be delegated to it by the central government. • 6. • 7.Calling for information from.Performing such function and exercising such powers under the provisins of the capital issues(control) act 1947 and SCRA 1956.Performing such other functions as may be prescribed.Cont…… • 5.conducting inquiries and audits of stock exchanges and intermediaries and self regulatory organizations in the securities market.undertaking inspection. .
BUY BACK SHARES • In simple term when company re-purchase of its own shares that is called buy back shares. .
The offer price is premium over the market price to encourage the shareholder. .Fixed price tender offers: company announces a fixed price at which it is willing to buy its shares.a maximum number of shares that it will commit to buy and an expiration date for the offer.tender offers: this is basically two types • A.Open market repurchase: company makes an announcement regarding the repurchase of a specified number of shares.The purchases are made anonymously through a broker from the secondary market over a specified period of time.MODESS OF REPURCHASE • BASICALLY THERE ARE TWO MODES OF REPURCHASE: • 1. • 2.
the company announces the maximum number of shares it wishes to buy and a range of prices at which it will entertain offers.Shareholders who choose to participate must then select a single price in this range at which to tender their shares. • Dutch auction tender offers : In a dutch auction.Cont…………. .
RULES FOR REPURCHASE UNDER SEBI ACT 1988 • 1. the details under the buy back scheme shall be made available to the stock exchange on daily basis:the details in turn shall be made available to public regularly.Buy back through negotiated deals. • 3. .In case of purchase through the stock exchange an offer for buy back will not remain open for more than 30 days.Regulations cover only the listed securities of the company • 2. • 4. spot transactions or private arrangements is not permitted.In the purchases made through stock exchange.
accounting accuracy.Rating is not fixed. The rating grades are: • AAA: HIGHEST SAFTY • AA: HIGH SAFTY • A: ADEQUATE SAFTY • BBB: MODERATE SAFTY • BB: IN ADEQUATE SAFTY • BC&D: HIGH RISK AND DEFAULT .auditors quality.assets quality. it may be change.HOW RATING IS GIVEN TO THE COMPANY? • Basically rating is given after see the company 'image.management quality.
CRISIL 2.CREDIT RATING AGENCY IN INDIA • • • • 1.ICRA 3.CARE 4.DPCR .
.conclusion • THE STOCK EXCHANGE IS CONSIDERED TO BE THE BAROMETER OF ECONOMIC ACTIVITY.
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