PRESENTED BY: ANNY GUPTA DEEPIKA CHIB

What is stock exchange?

Stock exchange is a place where trading of shares is done in terms of sale and purchase.

The term Securities include

Share Scrip Stock Bond Debenture Derivative Security Receipts Government Securities other instrument

Factors influencing the price of securities

Financial Position of the company. Demand and supply Trade cycle Lending Rates

INDIAN STOCK EXCHANGES AND THEIR INDICES

INTRODUCTION
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.

Name of Indian stock exchange:

1.Bombay stock exchange 2.national stock exchange(Mumbai) 3.Banglore stock exchange 4.Utter Pradesh stock exchange(kanpur) 5.Magadh stock exchange(Patna) 6.Ahmedabad stock exchange 7.vadodara stock exchange(Baroda) 8.Bhubaneswar stock exchange 9.Calcutta stock exchange(kolkata) 10.madras stock exchange

11.Cochin stock exchange 12.coimbatore stock exchange 13.Gauhati stock exchange 14.Hydrabad stock exchange 15.Madhya Pradesh stock exchange(indore) 16.Jaipur stock exchange 17.Ludhina stock exchange 18.Mangalore stock exchange 19.Pune stock exchange 20.saurashtrakutch stock exchange

Where Indian Stock Market IS First

First in India to introduce Equity Derivatives First in India to launch a Free Float Index First in India to launch US$ version of BSE Sensex First in India to launch Exchange Enabled Internet Trading Platform First in India to obtain ISO certification for Surveillance, Clearing & Settlement . 'BSE On-Line Trading System (BOLT) has been awarded the globally, recognized by the Information Security Management System standard Moved from Open Outcry to Electronic Trading within just 50 days

Stock exchanges in INDIA

BOMBAY STOCK EXCHANGE

NATIONAL STOCK EXCHANGE

REGIONAL STOCK EXCHANGE

BSE(BOMBAY STOCK EXCHANGE)

The oldest exchange in Asia and the first exchange in the country to be granted permanent recognition under the Securities Contract Regulation Act, 1956, Bombay Stock Exchange Limited (BSE) has had an interesting rise to prominence over the past 130 years.

The base value of the sensex is 100 on April 1, 1979, and the base year of BSE-SENSEX is 197879.

INDEX OF BSC

SENSEX :
SENSEX Blue chip index of the Bombay Stock Exchange (BSE). first compiled in 1986 and was calculated on a Market Capitalization-Weighted Methodology of 30 component stocks representing a sample of large, well-established and financially sound companies. Consist of A basket of 30 constituent stocks representing a sample of large, liquid and representative companies Base index value is 100.

NSE(NATIONAL STOCK EXCHANGE)

The National Stock Exchange of India was set up by Government of India on the 1991. Promoted by leading Financial institutions essentially led by IDBI at the behest of the Government of India. Its promoters are IDBI, ICICI, SBI, Bank of boroda , Union bank of inda etc. it was incorporated in November 1992

MARKET INDICES:
Stock market indices are the barometer of the stock market. BSE SENSEX,NSE-50 etc are some of the market indices. Their usefulness: Indices help to recognize broad trends in the market. The investor can use the indices to allocate the funds rationally among the stocks. Technical analysts use these indices to predict the future market. Indices function as a status report on the general economy.

INDEX OF NSC

CNX NIFTY
S&P CNX NIFTY (NIFTY 50) National Index of Fifty Shares Blue chip index of NSE Most popular and widely used stock market indicator in the country. Diversified 50 stocks index accounting for 22 sectors of the economy Top 50 liquid stocks in India Accounts for 58.64 % of total market capitalization of CM For reflecting the stock market behavior accurately and also for modern applications such as index funds and index Derivatives. Base capital of Rs.2.06 trillion.

REGULATORY FRAMEWORK
Regulatory Framework At present, the Six main Acts governing the securities markets are (a) The SEBI Act, 1992; (b) The Companies Act, 1956, which sets out the code of conduct for the corporate sector in relation to issuance, allotment and transfer of securities, and disclosures to be made in public issues; (c) The Securities Contracts (Regulation) Act, 1956, which provides for regulation of transactions in securities through control over stock exchanges ; (d) The Depositories Act, 1996 which provides for electronic maintenance and transfer of ownership of demat shares (NSDL) ; (e) Prevention of Money Laundering Act, 2002; (f) Capital Issues (Control) Act, 1947.

SEBI { Securities and Exchange Board of India}

Securities and Exhange Board of India (SEBI) is a autonomous body created by the Government of India in 1988 and given statutory form in 1992 with the SEBI Act 1992. SEBI is the regulator of Securities markets in India. The new chairman of SEBI, Mr.C.B.Bhave took charge on February 16 2008.

SEBI Act, 1992

SEBI Act, 1992 The SEBI Act, 1992 was enacted to empower SEBI with statutory powers for (a) Protecting the interests of investors insecurities, (b) Promoting the development of the securities market, (c) Regulating the securities market. (d) It can conduct enquiries, audits and inspection of all concerned and adjudicate offences under the Act. (e) It has power to register and regulate all market intermediaries and also to penalize them in case of violations of the provisions of the Act, SEBI has full autonomy and authority to regulate and develop an orderly securities market.

Securities Contracts (Regulation) Act, 1956

Securities Contracts (Regulation) Act, 1956 It provides for direct and indirect control of virtually all aspects of securities trading and the running of stock exchanges and aims to prevent undesirable transactions in securities. It gives Central Government regulatory jurisdiction over stock exchanges through a process of recognition and continued supervision (b) Contracts in securities, and (c) Listing of securities on stock exchanges. As a condition of recognition, a stock exchange complies with conditions prescribed by Central Government. Organized trading activity in securities takes place on a specified recognized stock exchange.

Depositories Act, 1996 :

Depositories Act, 1996 The Depositories Act, 1996 provides for the establishment of depositories in securities with the objective of ensuring Free transferability of securities with speed, accuracy and security by making securities of public limited companies freely transferable subject to certain exceptions; (b) Dematerializing the securities in the depository mode; and (c) Providing for maintenance of ownership records in a book entry form. (d) In order to streamline the settlement process, the Act envisages transfer of ownership of securities electronically by book entry without making the securities move from person to person.

Companies Act, 1956 :

Companies Act, 1956 It deals with issue, allotment and transfer of securities and various aspects relating to company mgt. It provides for standard of disclosure in public issues of capital, particularly in the fields of company management and projects, information about other listed companies under the same management, and management perception of risk factors. It also regulates underwriting, the use of premium and discounts on issues, rights and bonus issues, payment of interest and dividends, supply of annual report and other information.

Sensex milestones
1000, July 25, 1990 2000, January 15, 1992 3000, February 29, 1992 4000, March 30, 1992 5000, October 11, 1999 6000, February 11, 2000 7000, June 21, 2005

8000, September 8, 2005 9000, December 09, 2005 10,000, February 7, 2006 11,000, March 27, 2006 12,000, April 20, 2006 13,000, October 30, 2006 14,000, December 5, 2006

13,000, October 30, 2006 14,000, December 5, 2006 15,000, July 6, 2007 16,000, September 19, 2007 17,000, September 26, 2007 18,000, October 9, 2007 19,000, October 15, 2007 20,000, October 29, 2007 21,000, January 8, 2008

The 10 largest falls of the Sensex: 1. Jan 21, 2008 - 1,408.35 points 2. Mar 17, 2008 - 951.03 points 3. Mar 3, 2008 - 900.84 points 4. Jan 22, 2008 - 875.41 points 5. Feb 11, 2008 - 833.98 points 6. May 18, 2006 - 826.38 points 7. Mar 13, 2008 - 770.63 points 8. Dec 17, 2007 - 769.48 points 9. Oct 17, 2007 - 717.43 points 10. Jan 18, 2007 - 687.82 points

Speculators
Bull ;- optimistic speculators, who expects rise in price of the securities in which he deals..He enters purchase transaction with the objective of selling them at profit in future.

Bear :- pessimistic speculators who expects a fall in price of certain securities. Sells the shares so to buy it when the prices are lowered.
Stage : caution investor compared to bull and bear. Opt for fresh issues with the object of selling tem at premium or profit

Listing of securities
Any company when it intend to offer shares to the public through prospectus ,should make an application to the stock exchange or exchanges where it is to be listed. A formal application form should be filled before filing the prospectus with the registrar of companies. With the application following certificated has to be submitted: copies of MOA, AOA. Copies of prospectus. Certified copies of underwriting, vendors agreement. Details regarding reconstruction , amalgamation . Specimen copies of share certificate , debenture certificate, letter of allotment etc. The minimum market capitalization of the Company shall be Rs. 25 crore (market capitalization shall be calculated by multiplying the post-issue paidup number of equity shares with the issue price).

Qualification for Listing

Minimum issued capital :-the minimum issued capital should be 3 crore. Payment of excess money :- allotment should be done within 30 days of the closure of public issue .Refund to be dispatched within specifies period otherwise interest charged. Advertisement : No advertisement regarding good response or thanks . Draft prospectus Approval :-from stock exchange authorities. The prospectus should state the name of regional stock exchange where it intends to list its securities. Specify the date of commencement and closing date of subscription.

Settlement Cycle and Trading Hours

Equity spot markets follow a T+2 rolling settlement. This means that any trade taking place on Monday, gets settled by Wednesday. All trading on stock exchanges takes place between 9:55 am and 3:30 pm, Indian Standard Time (+ 5.5 hours GMT), Monday through Friday. Delivery of shares must be made in dematerialized form, and each exchange has its own clearing house, which assumes all settlement risk, by serving as a central counterparty.

 Trading at both the exchanges takes place through an open electronic limit order book, in which order matching is done by the trading computer. There are no market makers or specialists and the entire process is order-driven, which means that market orders placed by investors are automatically matched with the best limit orders. As a result, buyers and sellers remain anonymous. The advantage of an order driven market is that it brings more transparency, by displaying all buy and sell orders in the trading system. However, in the absence of market makers, there is no guarantee that orders will be executed. All orders in the trading system need to be placed through brokers, many of which provide online trading facility to retail customers. Institutional investors can also take advantage of the direct market access (DMA) option, in which they use trading terminals provided by brokers for placing orders directly into the stock market trading system. (For more, read Brokers And Online Trading: Accounts And Orders.)

Trading Mechanism

 Bid Price The bid price is the price at which buyers are ready to buy shares. The bid price is also called as buying price. Ask Price The Ask price is the price at which sellers are ready to sell shares. The ask price is also called as selling price or offer price

Types of order
Market Order :- broker instructed by the investor to buy and sell a stated number of shares immediately at the best prevailing price in the market .Incase of buy price = lowest price, selling =highest price. Limit Order :- investor specifies in advance the limit price at which he wants the transaction to be carried out.

Stop order :- the investor specifies what is know as stop price . If it is a sell order the stop price must be executed. If buy order then stop price must be above the market price.
Day order week order

Dematerialisation and Rematerialisation

The process of converting securities held in physical form, that is in the form of certificate to an equivalent number of securities in electronic form is dematerialisation. Securities in demat form may again be converted back into physical form i.e. certificate is know as rematerialisation.

Is a demat account a must?

The market regulator, the Securities and Exchange Board of India (SEBI), has made it compulsory to open the demat account if you want to buy and sell stocks.

How to open a Demat account?

You have to approach a DP to open a Demat account. Most banks are DP participants so you may approach them. You need not have to have any shares to open a demat account. A demat account can be opened with no balance of shares. And also there is no restriction to maintain any minimum shares. You can have a zero balance (shares) in your account