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Oldest stock exchange in Asia Established as "The Native Share &
Stock Brokers Association" in 1875.
The Exchange has a nation-wide reach
with a presence in 417 cities and towns of India
Groups Listed In BSE
A B1 B2 F Z G
Total Market Capitalisation
– Rs.3022190 Cr. / $ 6520bn
Total Scrips Listed
Equities Derivatives Debt Market Securities
Board Of Directors
Mr. Jagdish Capoor, Chairman, HDFC Bank
MD & CEO: Mr. Rajnikant Patel
Mr. P. K. Banerji Mr. Shekhar Datta Mr.S.Jambunathan Mr. Jitesh Khosla Mr. Vijay Mukhi Mr. Pradip P. Shah Mr. P. P. Vora
IAS (Retd.) Former Managing Director & President Greaves Cotton Limited IAS (Retd.) Joint Secretary, Ministry of Company Affairs, Govt. of India Managing Director, Vijay Mukhi's Computer Institute Chairman, IndAsia Fund Advisors Private Limited
Ex-Chairman, Industrial Development Bank of India and National Stock Exchange of India Limited
It consists of the 30 largest and most
actively traded stocks, representative of various sectors, on the BSE
Free Float capitalisation method The base value of the Sensex is 100 on
April 1, 1979 and the base year of BSESENSEX is 1978-79.
Calculation of SENSEX
Aggregate Mkt Capitalisation * Base Index Value Aggregate base Mkt capitalisation
Which 30 Stocks?
1. Associated Cement Companys Ltd. 2. Bajaj Auto Ltd. 3. Bharat Heavy Electricals Ltd. 4. Bharti Airtel Ltd. 5. Cipla Ltd. 6. Dr Reddy's Laboratories Ltd. 7. Grasim Industries Ltd. 8. Gujarat Ambuja Cements Ltd. 9. HDFC 10.HDFC Bank Ltd. 11.Hero Honda Motors Ltd. 12.Hindalco Industries Ltd. 13.Hindustan Lever Ltd. 14.ICICI Bank Ltd. 15.Infosys Technologies Ltd. • • • • • • • • • • • • • • •
ITC Ltd. Larsen & Toubro Limited Maruti Udyog Ltd. NTPC Ltd. ONGC Ltd. Ranbaxy Laboratories Ltd. Reliance Communications Limited Reliance Energy Ltd. Reliance Industries Ltd. Satyam Computer Services Ltd. State Bank of India Tata Consultancy Services Limited Tata Motors Ltd. Tata Steel Ltd. Wipro Ltd.
How 30 companies selected?
Market Capitalization Industry Representation Trading Frequency No. of Trades Value Traded
14000 12000 10000 8000 6000 4000 2000 0 7/1/1997 1/1/1998 7/1/1998 1/1/1999 7/1/1999 1/1/2000 7/1/2000 1/1/2001 7/1/2001 1/1/2002 7/1/2002 1/1/2003 7/1/2003 1/1/2004 7/1/2004 1/1/2005 7/1/2005 1/1/2006 7/1/2006
BSE launched the country’s first free float based
index ‘ BSE Teck Index’ in 2001. It launched the Dollar version of Sensex “ DOLLEX- 30” on July 25,2001 BSE –PSU Index 2002 BANKEK June 2003 BSE 100 BSE 200 BSE 500
BSE MIDCAP & BSE SMALLCAP BSE HEALTH CARE BSE CONSUME DURABLE BSE CAPITAL GOODS
Index Maintenance Index committee : It comprises of
academicians, fund managers, journalist and broker members. They have been formed to give advice on all aspects related to indices. Index Cell : It looks after the daily index maintenance
SENSEX Prudential ICICI Exchange
Traded Fund Features of both an open-ended mutual fund and an exchange listed security The price of one SPIcE unit will be equal to approximately 1/100th of SENSEX value
BOLT - BSE On-Line Trading
Need for Bolt Poor transparency 15 days + settlement cycle Poor liquidity Computer & Network Evolution Faster spread of equity
Type of Orders
Limit orders Market orders Hit/Take orders Stop loss orders
– Best five quotes – Total depth – buy and sell – Last traded rate & quantities – Trades / values / volumes – Lower / upper circuit limit rate & weighted avg. rate – Open / High / Low / Close
– Ex-dates – Book Closure – No Delivery period – Standard Rate – ISIN No. – Dividend
Daily Trading Sessions on BOLT
Opening Session Log-in Session Continuous Session Closing Session Post Closing Session 6A / 7A / Member Query Session 08.46 a.m. To 09.00 a.m. To 09.55 a.m. To 3.30 p.m. To 09.00 a.m. 09.55 a.m. 3.30 p.m. 03.50 p.m. 04.15 p.m. 05.30 p.m.
03.50 p.m. To 04.15 p.m. To
Advantages of BOLT
Transparency of trades Faster settlement T + 2 Improved access to sensitive information Simplicity in broker back office operations Increases geographical spread
Landmark 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 11000 12000 Date 25-Jul-90 15-Jan-92 29-Feb-92 30-Mar-92 11-Oct-99 11-Feb-00 21-Jun-05 08-Sep-05 09-Dec-05 07-Feb-06 27-Mar-06 20-Apr-06
Debt Markets Or Bond Markets
Brief Overview of Bond Markets
Fixed income securities Wide Variety of Instruments Growing Retail Interest in India Safer and secure vis-à-vis other financial
instruments Continuing innovations and developments Issued by any legal entity Lower average volatility
Composition of Indian Debt Markets
Composition of Indian Bond Mkt
6% 8% 7% 6%
73% Government Securities Corporate Debt PSU Bonds Money Market Instru. FI Bonds
Investment Opportunities in Debt Government Securities Treasury Bills Money Market Instruments Certificates of Deposits Commercial Paper PSU & Institutional Bonds Corporate Bonds
Participants in Indian Debt Markets
– Public Sector Banks – Private Sector & Foreign Banks – Primary Dealers – Financial Institutions – LIC / GIC
New Class of Investors
– FIIs & Mutual Funds – Co-operative Banks – Private Insurance Companies – Private Trusts & Pension Funds – Corporate & Retail Investors
Wholesale Debt Market Segment
Retail Debt Segment
Retail Debt Market
– Greater investment opportunities for retail investors – Efficient Diversification and balancing for investor portfolios – Enhance liquidity and trading options in debt instruments
BSE Debt Segment: trading mechanism Accrued Interest and Delivery Value:
available in the system T + 1 & T + 2
Z Group Rules
Three out of the following seven criteria
– – – – – Required notice of Book Closure & Record Dates Yearly submission of Annual Reports Quarterly submission of shareholding pattern Payment of Annual Listing Fees Publication of Audited / Unaudited results on a quarterly basis – Redressal of Investors' Complaints (regarding share transfers etc.) – Implementation of corporate governance, if applicable.
Investor Protection Fund
The members contribute The Stock Exchange contributes The maximum amount presently payable
to an investor
The company should have minimum issued and
paid up equity capital of Rs. 3Cr.
The Company should have profit making
track record for last three years. Minimum networth of Rs. 20 Crs The company should have a dividend paying track record
Clause 38 of the listing agreement. Delisted due to amalgamation, merger,
Security Contract Regulation Act 1956 Security Contract Regulation Rules 1957 SEBI Act 1992 and rules and Regulations there
under SEBI Stock Brokers and Sub Brokers Rules 1992. Rules Regulation and Bye laws, of the Exchange SEBI, Prohibition of Fraudulent and Unethical Trade Practices Regulations 2003
Types of Risk for an Exchange
Mkt Abuse Risk Reg. Compliance risk Default Risk
Surv. & Monitoring
Risk Mgt. Tools
Objectives : Surveillance
Detect unusual price/vol. Mvts. at a nascent
stage & impose corrective measures.
ability of Market Participants to influence price and volume of securities
Minimize Default Risk through Position
Strengthen the Self Regulatory Mechanism
1. Price Monitoring
On-Line Surveillance Off-Line Surveillance Rumour Verifications
2. Position Monitoring
Top Purchasers and Sellers Concentrated Purchases/ Sales Purchase/ Sales of scrips having thin trading Trading in B1, B2, T & Z Groups Pay in liabilities above a threshold limit Verification of Institutional Trades Weak Member Portfolio profile & MTM loss monitoring
BPL Ltd Singer India Limited Starlite Components Ltd. Kinetic Trust Ltd. Jaybharat Fabrics Mills Ltd. Vision Organics Ltd
THANK YOU !!!
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