This action might not be possible to undo. Are you sure you want to continue?
• A stock is a certificate that certifies ownership of a certain portion of a firm.
• When a firm issues new shares of stock, it does not add to its debt. Instead, it brings in additional “owners” who supply it with funds. • Stockholders have a right to select the management of the firm and to share in its profits.
1 of 41
• Unlike bonds or direct borrowing, stocks do not promise a fixed annual payment. Returns depend on company performance. If profits are high, the firm may pay dividends.
• Most stocks bought and sold on the stock market daily are not newly issued but issued long ago, when the firm “goes public.”
2 of 41
Overview of Financial Markets Two types of financial markets • Money markets • Capital markets • • Primary market Secondary market .
.WHAT IS STOCK EXCHANGE Stock exchange is that place where trading of shares is done in terms of sale and purchase.
selling and dealing in securities .Role and Functions of a stock exchange Established for the purpose of assisting. regulating and controlling business of buying.
Role and Functions of a stock exchange cont‟d • Provides a market for the trading of securities to individuals and organizations seeking to invest their saving or excess funds through the purchase of securities .
7 of 41 .
merger or amalgamation.A company whose shares quoted on stock exchange they enjoy better reputation and credit. . • 2.dividends and property values. • 3.The market for the shares of such a company is naturally widened.FROM THE COMPANY POINT OF VIEW • 1.This raises the bargaining power of the company in the event of a takeover.The market price of securities is likely to be higher in relation to its earnings.
. • 3.His risk is considerably less when he holds or purchases listed securities.The stock exchange safeguards interests of investors through strict enforcement of rules and regulations.FROM THE INVESTORS POINT OF VIEW • 1.Liquidity of the investment is increased • 2. • 5.The securities dealt on a stock exchange are good collateral security for loans. • 4.The present net worth of investments can be easily known by the daily quotations.
INTRODUCTION : • There are 23 stock exchanges in the India. with over 6. Established in 1875. Mumbai's (earlier known as Bombay). . the exchange is also the oldest in Asia. The BSE accounts for over two thirds of the total trading volume in the country. Among the twenty-two Stock Exchanges recognised by the Government of India under the Securities Contracts (Regulation) Act. 1956.000 stocks listed. it was the first one to be recognised and it is the only one that had the privilege of getting permanent recognition ab-initio. Bombay Stock Exchange is the largest.
Name of Indian stock exchange: 1. Guwahati Stock Exchange . Bombay Stock Exchange 2. OTC Exchange Of India 4. Coimbatore Stock Exchange 10. Delhi Stock Exchange 11. Bhubaneshwar Stock Exchange 7. National Stock Exchange 3. Bangalore Stock Exchange 6. Cochin Stock Exchange 9. Ahmedabad Stock Exchange 5. Calcutta Stock Exchange 8.
Ludhiana Stock Exchange 15. Uttar Pradesh Stock Exchange 23. Vadodara Stock Exchange . Meerut Stock Exchange 20. Madhya Pradesh Stock Exchange 16. Madras Stock Exchange 17. Hyderabad Stock Exchange 13. Jaipur Stock Exchange 14.12. Pune Stock Exchange 21. Saurashtra Kutch Stock Exchange 22. Magadh Stock Exchange 18. Mangalore Stock Exchange 19.
• In 1874 group came at Dalal Street • In 1875 official organization known as 'The Native Share & Stock Brokers Association„ • In 1956 it became first Stock Exchange which was recognized by Govt.• Oldest Stock Exchange in Asia • Starting in 1850 under Banyan trees in front of Mumbai Town Hall Horniman Circle Park. with 4 Gujarati & 1 Parsi people • Changed place. Once Members increases. . of India.
conventions. and he assisted in setting out traditions. .• In 1986 BSE developed BSE SENSEX (Sensitive Index). • Base year is 1978-79 • Measures overall performance of this Exchange. trading Sensex futures contracts • The development of Sensex options along with equity derivatives followed in 2001 & 2002 expansion of platform of trading • Premchand Roychand was a leading stockbroker of that time. and procedures for the trading of stocks at BSE and they are still being followed. • In 2000 the BSE used this index to open its derivatives market.
as a brand. • BSE has played a pioneering role in the development of the Indian securities market • BSE's pride that almost every leading corporate in India has sourced BSE's services in capital raising and is listed with BSE • BSE. has been and is synonymous with the capital market in India. Its SENSEX is the benchmark equity index that reflects the health of the Indian economy .• India's biggest exchange. in terms of listed companies and market capital position.
2002 . First to have an exclusive facility for financial training First in India in the financial services sector to launch its website in Hindi and Gujarati Shifted from Open Outcry to Electronic Trading within just 50 days First bell-ringing ceremony in the history of the Indian capital markets (listing ceremony of Bharti Televentures Ltd on 18th Feb.• • • • • • • • • • 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 in 1995 First in India to obtain ISO certification for a stock exchange 'BSE On-Line Trading System‟ (BOLT) has been awarded the globally recognised the Information Security Management System standard BS7799-2:2002.
ACC ITC SUN PHARMA HERO HONDA RELIANCE BHEL L&T TATA POWER HUL REL INFRA GRASIM MARUTI SUZ TCS INFOSYS STRELITE HDFC BANK ONGC AIRTEL JAIPRAKASH AS TATA MOTORS HINDALCO REL COMMU DLF MAH N MAH TATA STEEL ICICI BANK SBI HDFC NTPC WIPRO .
It was set up in 1993 to encourage stock exchange reform through system modernization and competition. It was recently accorded recognition as a stock exchange by the Department of Company Affairs. The instruments traded are.NSE • The National Stock Exchange (NSE). treasury bills. located in Bombay. government security and bonds issued by public sector companies . It opened for trading in mid-1994. is India's first debt market.
• The Organisation: The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges. NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a taxpaying company unlike other stock exchanges in the country . • Base year is 1983-84 • Based on the recommendations. which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing.CONT……….
Security And Exchange Board of India Established in 1988 on the proposal of Cabinet Ministry. and got legal rights on 30-jan-1992 21 of 41 .
sub-brokers. • 3.OBJECTIVES OF SEBI • 1.Regulating substantial acquisition of shares and takeovers of companies.Registring and regulating the working of stock brokers. • 2.Registering and regulating the working of collective investment scheme including mutual funds. • 4. underwriters who may be associated securities market in any manner.share transfer agents.Prohibiting insider trading in securities. .
Performing such other functions as may be prescribed.Performing such function and exercising such powers under the provisins of the capital issues(control) act 1947 and SCRA 1956. • 7.Cont…… • 5. .as may be delegated to it by the central government.Calling for information from. undertaking inspection. conducting inquiries and audits of stock exchanges and intermediaries and self regulatory organizations in the securities market. • 6.
conclusion • THE STOCK EXCHANGE IS CONSIDERED TO BE THE BAROMETER OF ECONOMIC ACTIVITY. .
25 of 41 .