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www.bseindia.

com

HISTORY
History dates back to 1855 when 5 stockbrokers gathered under a
banyan tree
They moved to Dalal Street in 1874 and became official
organization known as The Native Share & Stock Brokers
Association in 1875
Got recognized by Indian government under Securities Contracts
Regulation Act on August 31, 1957
Developed BSE Sensex index in 1986
Switched to electronic trading system in 1995

QUICK FACTS
Located at Dalal Street, Mumbai.
Established in 1875
Asias first stock exchange
Worlds fastest stock exchange
median trade speed = 6 microseconds
Worlds 11th largest stock exchange
Market cap = $1.682 trillion (January 31, 2015)
Worlds No. 1 exchange with 5688 listed companies (June 30, 2015)

CONTD
First exchange in India and second in world
to obtain ISO 9001:2000 certification
to receive Information Security Management System
Standard BS 7799-2-2002 certification for its On- Line
trading System (BOLT)
BSE's equity index - the S&P BSE SENSEX - is India's
most widely tracked stock market benchmark index.
Provides depository services through its Central Depository
Services Ltd. (CDSL) arm

IMPORTANT EVENTS FOR


BSE (CHRONOLOGICAL
ORDER)

BSE Training Institute


(Jan 3, 89)

Negotiated Dealing
System (Feb 15, 02)

Retail Trading in GSecs (Jan 16, 03)

BOLT System (Mar


14, 95)

Stock Futures (Nov 1,


01)

Indian Corporate
Debt Market (Jan 2,
07)

IRS & FRA allowed


(Jun 1, 99)

Stock Options (Jul 9,


01)

Currency Derivatives
(Oct 1, 08)

Overnight Investment
Product (May 18, 15)

Equity Derivatives
(Jun 9, 00)

VaR Model (Jul 2, 01)

Interest Rate
Derivatives (Aug 7,
09)

Currency derivatives
& Interest Rate
Derivatives (Nov 28,
13)

Index Options (Jun 1,


01)

Wholesale Debt
Market (Jun 15, 01)

SLB (Nov 22, 10)

Offer For Sale (Feb


24, 12)

Market Cap (in Trillion USD)


As on January 31, 2015
19.22

6.83 6.19
4.49 3.99
3.33 3.32

2.29 1.94 1.76 1.68 1.64


1.52 1.27 1.25 1.21 0.95 0.94 0.86
0.82

Rank 11

SHARE HOLDING PATTERN

*As on
31/3/15

PRODUCTS OFFERING

DEBT MARKET
PRIMARY MARKET
Preferred choice by issuers for
listing Privately Placed Debt
Instruments.
In FY14-15, BSE listed 1,575
Instruments vis-a-versa 1,301 on
other Exchange.
Out of 26 Debt Public Issues, 25
times BSE has been appointed as
Designated Stock Exchange
Amount
crores.

mobilized:

Rs.41,860

SECONDARY MARKET

Retail trading of
Corporate Bonds
(Market Share)

FY 1314

FY 1415

Jun
15

55%

63%+

71%

WDM (Govt. bonds) 48,952 2,21,233 44%


(Reporting Volumes) crores crores
Corporate Bonds

22%

CORPORATE DEBT MARKET


During December 2015,
1,165 trades with a traded
value of `14,135 crore
was reported on BSE
compared to 1,132 trades
with a traded value of
`14,672 crore reported in
November 2015
The adjoining figure gives
the turnover of corporate
bonds in the year 2015

DEBT MARKETS VIEW

PUBLIC ISSUES

FUND MOBILIZATION

OVERALL FUND
MOBILIZATION

EQUITY TRADES

EQUITY DERIVATIVES
India is one of the vibrant markets for exchange traded equity
derivatives in the world.
The trading volumes in the equity derivative market surpassed
that of the cash segment turnover by 12.4 times in November
2015.
Index options comprised 94.5 percent of BSEs equity
derivative turnover, stock options constituted 5.2 percent.
In December 2015, NSE had 97.5 percent share in total equity
derivatives turnover in India while BSEs share was 2.5 percent.

TRENDS IN EQUITY DERIVATIVES MARKET


Turnover (` crore)

No. of contracts

Particular
Dec-15
(i) Index Futures

381

(ii) Options on Index

405

-6.1

Dec-15

Nov-15

7,353

%age
Change
over Month

7,790

-5.6

Put

23,423

22,410

4.5

4,65,551

4,40,825

5.6

Call

90,213

79,201

13.9

17,14,077

14,88,080

15.2

27

16

67.7

551

332

66.0

(iii) Stock Futures


(iv) Options on Stock

TOTAL

Nov-15

%age Change
over Month

Put

3,280

1,650

98.7

64,064

30,652

109.0

Call

2,965

1,843

60.9

57,044

37,518

52.0

1,20,288

1,05,526

14

23,08,640

20,05,197

15.1

INDEX OPTIONS

CURRENCY DERIVATIVES
Currency Derivatives are Future and Options contracts which
one can buy or sell specific quantity of a particular currency
pair at a future date
It is similar to the Stock Futures and Options but the underlying
happens to be currency pair (i.e. USDINR, EURINR, JPYINR
OR GBPINR) instead of Stocks
The turnover of currency derivatives at BSE increased by 7.7
percent to 1,93,962 crore in December 2015 from 1,80,138
crore in November

TRENDS OF CURRENCY DERIVATIVES

CURRENCY FUTURES

CURRENCY OPTIONS

INTEREST RATE DERIVATIVES


The introduction of trading in interest rate futures in India is one more step
towards integration of the Indian Securities Market with the rest of the world.
It is a financial instrument based on an underlying financial security whose
value is affected by changes in interest rates.
e.g., plain vanilla interest rate swap, swaptions, euro-strips etc.
BSEs Interest Rate Derivative Segment:
91-day Government of India (GOI) Treasury Bill
10 Year Government of India Futures
The turnover of currency derivatives at BSE increased by 31.9 percent to
`17,793 crore in December 2015 from `13,492 crore in November 2015

TRENDS OF IRDs

SECURITIES LENDING AND BORROWING


Market practice whereby securities are temporarily transferred by one
party (the lender) to another (the borrower) via an approved
intermediary.
Salient Features in SLB
SLB Contracts up to 1 year (12 monthly contracts)
Early Return and Recall
Base Minimum Capital reduced to NIL
No separate exe Login same as BOLT
Facility of Early pay-in

WHY PARTICIPATE IN SECURITIES


LENDING & BORROWING ?
Lender's Motivation
- It provides lender incremental return on an idle portfolio
Borrower's Motivation
- To cover a short position : avoidance of settlement failure
- Hedging of futures & options positions
- Borrow and lend to reap benefits of the market sentiment

REGISTRATION PROCEDURE

TRADING MECHANISM
Screen based trading : All SLB
transactions (Lending and Borrowing,
and Recalls and Early Returns) will
take place on a single automated,
screen based, order-matching platform
which will be provided to the eligible
participants. Matching will be on
price-time priority.
Eligible Securities : All securities
available for trading in F&O segment
are permitted. Securities lending and
borrowing is permitted in
dematerialized form only.
Product specifications are given
beside:

Approved
BOISL
Intermediary
Eligible
All securities traded in the Derivatives
Securities
Segment
Trading Hours
9:15 a.m. to 3.30 p.m.
Series
Order Type
Permitted lot
size
Tick Size

All eligible Securities will have a 12


monthly contracts available at any time.
Borrow / Recall Lend / Early Return
1
Rs 0.01

Last Trading
Day

For any given stock return day, the last


day to borrow and lend will be the third
business day prior to the stock return day.
If the stock return day is a holiday, then
the return will take place on the
Immediately Preceding Trading Day.

Stock Return
Day (SRD)
Corporate
Action

The day on which the Borrower will return


the securities to the Lender.
Foreclosed except for dividends and
stock splits

CLEARING
All obligations are on a gross basis i.e. there is no netting of transactions.
Obligations for the first leg are downloaded to participants/Custodians on the T day and
obligations for the reverse leg are downloaded on T+1 day.
Lenders Obligation : The lenders obligation is the securities lent on T day (Transaction
date). The lender is required to deliver the securities by the scheduled time on T+1 day.
Recall Obligation : In case of recall the lenders obligation is the lending fee transacted for
the recall transaction and is payable on T+1 day.
Borrowers Obligation : Borrowers obligation is the lending fees and the lending price
(T-1 day closing price in the underlying security) in cash collaterals payable on T+1 day.
Early Return Obligation : The borrower is required to deliver the securities by the
scheduled time on T+1 day.

BSE SCREEN LAYOUT

CIRCUIT BREAKERS
The index-based market-wide
circuit breaker system applies at
3 stages of the index movement,
either way viz. at 10%, 15% and
20%. These circuit breakers
when triggered bring about a
coordinated trading halt in all
equity and equity derivative
markets nationwide. The marketwide circuit breakers are
triggered by movement of either
the S & P BSE Sensex or the
NSE CNX Nifty, whichever is
breached earlier.
The trigger limits and the
respective halt duration is
given beside:

Trigger Limit

10%

15%

20%

Trigger Time

Halt duration

Before 1 Pm
45 Minutes
At or After 1 PM
15 Minutes
to 2.30 PM
At or after 2.30
No Halt
PM
1 Hour 45
Before 1 PM
minutes
At or after 1 PM
45 Minutes
before 2 PM
Trading halt for
On or after 2 PM the remainder of
the day.
Trading halt for
Any time of the
the remainder of
day
the day.

Pre Opening
Session
duration post
each halt
15 Minutes
15 Minutes
15 Minutes
15 Minutes
-

How Are The SENSEX 30 Stocks


Selected?
Listing History
Trading Frequency
Rank based on the Market Cap (Should be Among top 100)
Market Capitalization weight
Industry / sector they belong
Historical Record

HOW IS SENSEX 30
CALCULATED?
SENSEX has been calculated since 1986 and initially it was
calculated based on the Total Market Capitalization
methodology and the methodology was changed in 2003 to
Free Float Market Capitalization.
The SENSEX is based on the Free Floating Market cap of 30
SENSEX Stocks traded on the BSE relative to the base value
which is 100 and it is calculated for every 15 seconds.

HOW IS SENSEX 30
CALCULATED? CONTD..
SENSEX is calculated using the "Free-float Market
Capitalization" methodology, wherein, the level of index at any
point of time reflects the free-float market.
It reflects value of 30 component stocks relative to a base
period.
The market capitalization of a company is determined by
multiplying the price of its stock by the number of shares
issued by the company.
This market capitalization is further multiplied by the free-float
factor to determine the free-float market capitalization.

HOW IS SENSEX 30
CALCULATED? CONTD..
The formula for calculating the SENSEX =
(Sum of free flow market cap of 30 benchmark stocks)*Index
Factor
where,
Index Factor = 100/Market Cap Value in 1978-79.
100 is the Index value during 1978-79.

SENSEX PRICE MOVEMENTS

Benefits of
listing in BSE

CURRENT NEWS
11th Feb 2016
5th Feb 2016

BSE has urged the government to permit


equity exchanges to have a separate
commodity derivatives segment, it will bring
down cost and time as the exchanges already
have the necessary technology platform and
risk management framework in place.

The move assumes significance following


merger of Forward Markets Commission
(FMC) with the Securities and Exchange
Board of India (Sebi) in September.

BSE Institute Ltd, a wholly owned subsidiary


of BSE Ltd, announced the launch of a new
accelerator for start-ups.

This accelerator is housed in the iconic


P.J.Towers the home of BSE, Asias oldest
and the worlds fastest stock exchange.

16th Feb 2016


Software provider Quickheal Technologies, which raised Rs 451 crore through its initial public offer
(IPO), will list shares on the stock exchanges on Thursday.

GROUP 5
AKASH VERMA
ABHINAV GUPTA
KAVYA PARUPUDI
GARIMA AGARWAL