STOCK EXCHANGES IN

INDIA
NSE – BSE – MCX – MAJOR INTERNATIONAL STOCK EXCHANGES
 What is Stock Exchange?
• A stock exchange is an organized marketplace where the
members meet (physically or otherwise) to trade company
• To trade in a stock exchange, the companies must be listed there. The
stock or other listed securities. The members could be agents exchange imposes rules and regulations on the firms & brokers for
acting on behalf of their clients or could be principals efficient trading and provides the facility for the issue and
representing their own accounts.  Stock exchanges can serve redemption of securities.
as a measure for the health of the national economy, and can
• Those companies which are not listed on the stock exchanges are
also be a key indicator of world economic strength.
traded over the counter (OTC). These are the smaller, riskier and less
• The Indian Securities Contract (Regulation) Act 1956
liquid companies. These OTC-traded shares typically will involve
defines a STOCK EXCHANGE as “ an association or body smaller (and riskier) companies, such as penny stocks that do not
of individuals ,whether incorporated or not, constituted for meet the listing requirements for established stock exchanges.
the purpose of assisting ,regulating or controlling business of
buying ,selling or dealing in securities.”
 Difference between Stock Exchange
and Commodity Exchange.
o The stock exchange is a place where the piece of ownership in
businesses (i.e. stocks) are bought and sold among the traders.
o A stock exchange is a marketplace for the buying and selling
of shares, bonds and securities.
o On the other hand, a commodity exchange is a market where
goods that come from the earth like gold, silver, corn,
soybeans, oil, cattle, coffee, etc are traded among the buyers
and sellers.
o A commodity is alternate and exchangeable by nature. It can
be categorized as every kind of movable good that can be
bought and sold, except for actionable claims and money.

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List Of Stock Exchanges In
India

• When we talk of Indian stock exchanges, most of the investing

population have heard of only two stock exchanges in India –
Bombay stock exchange (BSE) and National stock exchange
(NSE).  
• However, the list of Indian stock exchanges is bigger than just
two names. Here is the list of existing stock exchanges in India

1. Bombay Stock Exchange (BSE)

2. National Stock Exchange (NSE)
3. Calcutta Stock Exchange (CSE)
4. Metropolitan Stock Exchange (MSE)
5. India International Exchange (India INX)
6. NSE IFSC Ltd.
4 7. Magadh Stock Exchange Ltd. MM.DD.20XX
National Stock Exchange (NSE)

• NSE is the youngest stock exchange of India which • Today, the National Stock Exchange of India Limited (NSE)
came into picture in the year 1992 and operates with a conducts transactions in the wholesale debt, equity, and derivative
vision, “To continue to be a leader, establish a global markets. One of the more popular offerings is the NIFTY 50 Index,
presence, and facilitate the financial well-being of
which tracks the largest assets in the Indian equity market.
people.”
NSE’s index, the NIFTY 50, is used extensively by investors in
• It was the first exchange in the country to provide a
India and around the world as a barometer of the Indian capital
modern, fully automated screen-based electronic trading
system which offered the easy trading facility to the markets.
investors spread across the length and breadth of the
country.
• NSE has a total market capitalization of more than
US$1.41 trillion, making it the world’s 12th-largest stock
exchange as of March 2016.

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Main Functions of NSE
o The NSE was set-up with an express objective to fulfil the following functions:
1. Establishing a nationwide trading facility for equities, debt and other hybrid
instruments
2. Ensuring equal access to investors across the nation through an appropriate
communication network
3. Providing a fair, efficient and transparent securities market to investors using
electronic trading systems
4. Enabling shorter settlement cycles and book entry settlements systems
5. Meeting the current international standards of securities markets
6. NSE successfully fulfilled these functions by establishing the first electronic
stock market of India
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 Bombay Stock Exchange (BSE)
o BSE is an Indian stock exchange located at Dalal Street, Mumbai and
operates with a vision of to “Emerge as the premier Indian stock exchange
with best-in-class global practice in technology, products innovation, and
customer service.”
o Established in 1875 as the Native Share and Stock Brokers' Association,
the Bombay Stock Exchange (BSE) is Asia's first exchange and the largest
securities market in India.
o The BSE has been instrumental in developing India's capital markets by
providing an efficient platform for the Indian corporate sector to raise
investment capital.
o The BSE is known for its electronic trading system that provides fast and
efficient trade execution.

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• The BSE enables investors to trade in equities, currencies, debt instruments,
derivatives, and mutual funds
• In the year 1986, Sensex was introduced, as the first equity index to provide
a base for identifying the top 30 trading companies of the exchange, in
more than 10 sectors.

• The BSE also provides other important capital market trading services such
as risk management, clearing, settlement, and investor education.
• As of April 2018, BSE has an overall market capitalization of over $4.9
trillion, which makes it the 10th largest stock exchange marketplace in the
world.
• It also offers varied services such as market data services, risk management,
CDSL (Central Depository Services Limited) depository services, etc.

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List Of Commodity
Exchanges In India
o  A commodities exchange also refers to the physical center where trading takes place. The
commodities market is massive, trading more than trillions of dollars each day.
There are six major commodity trading exchanges in India as listed below.
o Multi Commodity Exchange – MCX
o National Commodity and Derivatives Exchange – NCDEX
o National Multi Commodity Exchange – NMCE
o Indian Commodity Exchange – ICEX
o Ace Derivatives Exchange – ACE
o The Universal Commodity Exchange – UCX

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 Multiple Commodities Exchange (MCX)
Following types of commodities are traded on MCX

• Multi Commodity Exchange (Full Form of

MCX) as the name suggests is an exchange like
BSE and NSE where commodities are traded.

Energy and Agro Commodities

Bullion

Base Metals
• It is a platform for commodity traders that • Gold • Aluminium • Crude Oil
facilitate online trading, settlement and clearing • Gold Mini • Aluminium • Crude Oil Mini
of commodity futures transactions, thereby Mini
providing a platform for risk management
• Gold Guinea • Brent Crude
• Gold Petal • Copper Oil
(hedging).
• Gold Petal • Copper Mini • Natural Gas
• It was established in November 2003 under the
regulatory framework of FMC. In 2016, the (New Delhi) • Lead • Cardamom
FMC was merged with SEBI and MCX as an • Gold Global • Lead Mini • Cotton
exchange falls under the regulatory purview of • Silver • Nickel • Crude Palm Oil
SEBI. • Silver Mini • Nickel Mini • Kapas
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• Silver Micro • Zinc • Mentha Oil
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• Silver 1000 • Zinc Mini
Market Operations:

Trading and Surveillance: A member of MCX performs trading operation using Trading Work
Station, a platform for placing and executing orders

Clearing and Settlement: Activities pertaining to delivery, fund settlements, margins is

monitored by an in-house clearing house.

Delivery: Delivery & Settlement of commodities traded are monitored and performed by
Delivery Department. The department is a facilitator for delivery related documentation.

Warehousing and Logistics: This division caters to exchange members and their constituents
with respect to their needs to store goods and give delivery through exchange platform

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Major International Stock Exchanges
Around The World
The top 10 stock exchanges in the world based on their market capitalisation in March 2018,
which have all been adjusted to the US dollar. These are:

1. New York Stock Exchange 1. London Stock Exchange

2. NASDAQ 2. Euronext
3. Tokyo Stock Exchange 8. Shenzhen Stock Exchange
4. Shanghai Stock Exchange 9. Toronto Stock Exchange
5. Hong Kong Stock Exchange 10. Deutsche Boerse
1. New York Stock Exchange 2. NASDAQ
• Located in New York, Times Square.
• Located in Wall street, New York.
• NASDAQ – National Association Of Securities Dealer
• Founded in 1817.
• Largest stock exchange in world ever since Automated Quotations.
• Founded in 1971.
the send of world war I.
• Frist electronic stock exchange.
• In 2012, it was taken over by Intercontinental
• Market capitalisation was $10.93 trillion in March
Exchange.
• Market capitalisation was $23.12 trillion in 2018.
• Second largest SE, but largest in Technology Stock.
march 2018, which is nearly 40% of the total
world stock market value.
• 2400 companies listed.

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3. Tokyo Stock Exchange. 4. Shanghai Stock Exchange

o Founded in 1878, Japan. • 4th largest stock exchange in the world.

o World War II problems • Founded in 1990.
o Rebranded 1949.
• Origin dates back to 1866, but was suspended due to
o Partners with other exchanges all over the world, like the the Chinese revolution.
London stock exchange.
• Each stock listed has ‘A’ and ‘B’ shares.
o 3575 companies listed.
o Market capitalisation was $6.22 trillion as of March 2018. • Market capitalisation reached $5.01 trillion in March
2018.
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5. Hong Kong Stock Exchange
• Founded in 1891 by the Association of
Stockbrokers in Hong Kong.
• Rename in 1914.
• 3rd largest stock exchange in Asia.
• 5th largest in the world
• MC of $4.46 trillion in March 2018.
• 1955 companies listed.
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6. London Stock Exchange
• Founded in 1801, origin dated back to 1698.
• Oldest stock exchange in the world.
• Was largest SE up until the end of WW I.
• 6th largest SE in the World and largest in Europe.
• Owned by the London Stock Exchange Group.
• MC was $4.38 trillion in March 2018.
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 8. Shenzhen Stock
7. Euronext Stock Exchange Exchange.
 Founded in 2000, represent the economy of Europe.
• Founded in 1987.
 It is a pan- European exchange, it spans the
Amsterdam, Netherlands, Portugal, Belgium, France, • Self-regulated body, but it is supervised by
Ireland, and the UK. the china Regulatory Commission.
 7the largest SE in world, with a MC of $4.36 trillion in • 8th largest SE in the world, MC of $3.49
March 2018.
trillion in March 2018
 1300 companies listed and 30 stock indices.
• Trades stock in Chinese Yuan. MM.DD.20XX

9. Toronto stock Exchange
• Founded in 1852.
• Largest SE in Canada, with 1500 companies listed.
• In 2009, merged with Montreal Stock Exchange.
• 9th largest SE in the world and 3rd largest in North
America
• MC of 42.26 trillion in March 2018.
10. Frankfurt Stock Exchange
• Founded in 1585 to fic currency rated.
• Officially established as Germany’s leading stock
exchange after the WW I
• In 1993, ownership transferred to Deutsch Borse AG.
• MC of $2.22 trillion in March 2018.
• 10th largest SE in the world.

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 THANK YOU
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