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SPECIAL THANKS :
ANJU MAMM .
Overview With this presentation we are trying to through some light towards our stock market. .
T & Z groups. B. . which we now know by the name Bombay Stock Exchange or BSE in short. BSE is the world's number one exchange in terms of the number of listed companies and the world's 5th in transaction numbers.79 trillion . National Stock Exchange comes second to BSE in terms of popularity. Deutsche Börse & Singapore Exchange.INTRODUCTION The working of stock exchanges in India started in 1875. The history of Indian stock trading starts with 318 persons taking membership in Native Share and Stock Brokers Association. Today. are classified into A. The market capitalization as on December 31. S. 2007 stood at USD 1. An investor can choose from more than 4. BSE got permanent recognition from the Government of India.700 listed companies. BSE is the oldest stock market in India. In 1965. which for easy reference. as its strategic partners. BSE has two of world's best exchanges.
. The systems and processes are designed to safeguard market integrity and enhance transparency in operations.FACILITIES BSE provides an efficient and transparent market for trading in equity. BSE has always been at par with the international standards. Over the past 133 years. It has a nation-wide reach with a presence in more than 359 cities and towns of India. debt instruments and derivatives. BSE has facilitated the growth of the Indian corporate sector by providing it with an efficient access to resources. There is perhaps no major corporate in India which has not sourced BSE's services in raising resources from the capital market.
It is also the first exchange in the country and second in the world to receive Information Security Management System Standard BS 7799-2-2002 certification for its BSE On-line Trading System (BOLT). It has become the first national level stock exchange to launch its website in Gujarati and Hindi to reach out to a larger number of investors.ACHIVEMENTS BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000 certification. .
the ICERS facilitates the corporate in sharing with BSE their corporate announcements. W hile the Directors Database provides a single-point access to information on the boards of directors of listed companies. It has successfully launched a reporting platform for corporate bonds in India christened the ICDM or Indian Corporate Debt Market and a unique tickercum-screen aptly named 'BSE Broadcast' which enables information dissemination to the common man on the street. . BSE launched the Directors Database and ICERS (Indian Corporate Electronic Reporting System) to facilitate information flow and increase transparency in the Indian capital market. In 2006.
BSEW EBX. BSE On-line Trading (BOLT). Surv eillance.com . BSE Training Institute.SERVICES Inv estor Serv ices.
The Human Resource Management at BSE has won the Asia . 2006 and March 31 2007 have been awarded the ICAI awards for excellence in financial reporting. health management at work and excellence in HR through technology . The Annual Reports and Accounts of BSE for the year ended March 31.AWARDS The W orld Council of Corporate Governance has awarded the Golden Peacock Global CSR Award for BSE's initiatives in Corporate Social Responsibility (CSR).Pacific HRM awards for its efforts in employer branding through talent management at work.
100 Date of Launch:. 2003. calculation method shifted to free-float market capitalization. Number of scrips:.01-01-1986 Method of calculation:-Launched on full market capitalization method and effective September 01.SENSEX Base Year:.1978-79 Base Index Value:.30 .
SENSEX CALCULATION METHODOLOGY SENSEX is calculated using the "Free-float Market Capitalization" methodology. This market capitalization is further multiplied by the free-float factor to determine the free-float market capitalization. the level of index at any point of time reflects the free-float market 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. wherein.
the market capitalization of each company in a free-float index is reduced to the extent of its readily available shares in the market. government holding. In other words. Free-float market capitalization takes into consideration only those shares issued by the company that are readily available for trading in the market.UNDERSTANDING FREEFREE FLOAT METHODOLOGY Free-float methodology refers to an index construction methodology that takes into consideration only the free-float market capitalization of a company for the purpose of index calculation and assigning weight to stocks in the index. It generally excludes promoters' holding. strategic holding and other locked-in shares that will not come to the market for trading in the normal course. .
ADVANTAGES A Free-float index reflects the market trends more rationally as it takes into consideration only those shares that are available for trading in the market. It aids active managers by enabling them to benchmark their fund returns vis-Ã -vis an investible index. Free-float Methodology makes the index more broadbased by reducing the concentration of top few companies in Index. This enables an apple-to-apple comparison thereby facilitating better evaluation of performance of active managers. a Free-float adjusted index is best suited for the passive managers as it enables them to track the index with the least tracking error . A Free-float index aids both active and passive investing styles. Being a perfectly replicable portfolio of stocks.
S&P and STOXX have adopted the same. the Free-float Methodology of index construction is considered to be an industry best practice and all major index providers like MSCI. FTSE. Globally. This improves market coverage and sector coverage of the index. Free-float Methodology improves index flexibility in terms of including any stock from the universe of listed stocks. .
Strong investor confidence in the economy. High economic growth. Investor's confidence in the market is week. Represents downtrend or selling sentiment in market. Represents uptrend or buying sentiment in market. . BEAR RUN Fall in stock prices.DIFFRENCE BETWEEN BULL AND BEAR RUN BULL RUN Rise in stock prices. Economic growth is low.
A D e m a t A / c i s a p e r s o n a l A / c f o r p u r c h a s i n g and selling stocks. PURPOSE : The idea of Demat A/c is to avoid the need to hold physical shares. The shares are virtually being bought and sold through the banking A/c.D E M A T E R I A L I Z E D A/C : MEANING : D e m a t e r i a l i z e d a c c o u n t p o p u l a r l y k n o w n a s DEMAT A/c. It is similar to a savings account that you open with a bank. . A savings account holds your money electronically and a dmat account holds your stocks electronically.
You need to fill up a Demat A/c opening form. However this will be linked to your savings bank A/c. Centurion Bank of Punjab have Demat division. PAN CARD is mandatory for opening a Demat A/c. . MAI NT ANENCE COST : You do not have to maintain any minimum balance for this. You will be charged annually from Rs 350/to Rs 1000/. two photographs.varies from bank to bank.HOW TO OPEN IT: All private banks like ICICI. HDFC. address proof & a Pan card.
STEPS ONE SHOULD FOLLOW TO EARN PROFIT Fix a profit goal. Before purchasing stock you visit the company site and see the company policy. . Trade in growing stock. if not. then buy those shares where you can wait a long so that you get return. Trade in both w ays intraday and delivery. If you have risk taking venture then go for intraday trading but.
and other securities. A mutual fund is a professionallymanaged form of collective investments that pools money from many investors and invests it in stocks. its percentage in unit of MF will decrease. its percentage in unit of MF will increase. One unit of mutual fund contains fractional unit of many companies shares. short-term money market instruments. If price of a share decreases. bonds.MUTUAL FUND Unit Trust of India was the first mutual fund set up in India in the year 1963. Mutual funds are bunch of shares. . If price of a share increases.
A debenture is usually unsecured in the sense that there are no liens or pledges on specific assets.DEBENTURE A debenture is a long-term debt instrument used by governments and large companies to obtain funds. It is similar to a bond except the securitization conditions are different. A debenture is a loan secured on specific assets owned by a company and is repaid if a company runs into difficulties. They usually have a fixed rate of interest and a fixed maturity date .
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