Stock Exchanges in India part I


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Have a brief look on all the stock exchanges of India.

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Stock Exchanges in India part I

  1. 1. (c) www.aj-
  2. 2. • Ahmedabad Stock Exchange or ASE is the second oldest exchange of India located in the city of Ahmedabad in the western part of the country. It is recognized by Securities Contract (Regulations) Act, 1956 as permanent stock exchange. It has adopted a Swastika in its logo which is one of the most auspicious symbols of Hinduism depicting wealth and prosperity.• The stock exchange was established as a Public Charitable Trust in 1894 following the establishment of the Bombay Stock Exchange in 1875. Earlier the stock exchange functioned under the framework of the Bombay Securities Contracts Act, 1925. (c) www.aj- 2
  3. 3. • The stock exchange went live on December 12, 1996. Initially, ASE used a system provided by IBM. Since June 1999, ASE operates on Ahmedabad Stock Exchanges Online Trading System (ASETS). This system was provided to ASE by Tata Consultancy Services Pvt. Ltd. Members of the ASE can also trade on the Bombay Stock Exchange though a system called IBOSS. (c) www.aj- 3
  4. 4. • Bangalore Stock Exchange (BgSE) is a public stock exchange based in Bangalore, India. It was founded in 1963 and currently has 595 regional and non-regional companies listed. In September 2005, the BgSE announced plans to go public by divesting at least 51% of its ownership. The stock exchange is managed by a Council of Management, consisting of members appointed by the Securities and Exchange Board of India. First stock exchange in South India to start electronic trading of securities in 1996.• Some of the companies that trade on the BgSE include Infosys, Wipro, United Breweries and Bharat Electronics Limited. (c) www.aj- 4
  5. 5. • Bhubaneswar Stock Exchange (BhSE) was initially incorporated on the 17th April,1989 as a Company limited by guarantee without having share capital with an object to facilitate, assist, regulate and control the business of dealing in stocks, shares and like securities in the State of Orissa. Ministry of Finance, Govt. of India, New Delhi granted recognition to Company on 5th June,1989 under the provisions of the Securities Contracts (Regulation) Act,1956 and the Rules made there under for an initial period of five years to perform the role of a Stock Exchange. At present, the said recognition of BhSE is being renewed by Securities and Exchange Board of India (SEBI) from time to time. (c) www.aj- 5
  6. 6. • The Bombay Stock Exchange (BSE) (formerly, The Stock Exchange, Bombay) is a stock exchange located on Dalal Street, Mumbai and is the oldest stock exchange in Asia. The equity market capitalization of the companies listed on the BSE was US$1 trillion as of December 2011, making it the 6th largest stock exchange in Asia and the 14th largest in the world. The BSE has the largest number of listed companies in the world.• As of December 2011, there are over 5,112 listed Indian companies and over 8,196 scrips on the stock exchange, the Bombay Stock Exchange has a significant trading volume. The BSE SENSEX, also called "BSE 30", is a widely used market index in India and Asia. (c) www.aj- 6
  7. 7. (c) www.aj- learningplus.blogspot.comSession TimingBeginning of the Day Session 8:30 - 9:00Pre-open trading session 9:00 - 9:15Trading Session 9:15 - 15:30Position Transfer Session 15:30 - 15:50Closing Session 15:50 - 16:05Option Exercise Session 16:05 - 7
  8. 8. • Calcutta Stock Exchange (CSE) located at the Lyons Range, Kolkata, India, was incorporated in 1908 and is the second largest bourse in India• In 1830, the bourse activities in Kolkata used to conducted under a neem tree.The earliest record of dealings in securities in India is the British East India Company’s loan securities. In 1908, the stock exchange was incorporated and had consisted of 150 members. The present building at the Lyons Range was constructed in 1928. The Calcutta Stock Exchange has been granted permanent recognition by the Central Government with effect from April 14, 1980 under the relevant provisions of the Securities Contracts (Regulation) Act, 1956. The Calcutta stock exchange followed the familiar outcry system for stock trading up until 1997, when it was replaced by an electronic (eTrading) system known as C-STAR (CSE Screen Based Trading And Reporting) (c) www.aj- 8
  9. 9. • The Cochin Stock Exchange Limited (CSE) is a capital stock market in Kochi, Kerala in India. Incorporated in 1978, it has now over 350 Indian companies listed. CSBL a wholly owned subsidiary of CSE is a member of NSE and BSE.• Computerized trading was introduced in 1997.The major back office system software used are NESS and BOSS respectively for NSE and BSE. The trading software used in CSBL is Multex. Traders are provided Meta Stock and ERS software, trading terminals and optical fiber connections. DP holdings are maintained by demat services like CDSL.• The new millennium saw the stock exchange building being shifted from the old structure in downtown Cochin to a brand new building in the Kaloor area in northern Kochi. (c) www.aj- 9
  10. 10. • The Coimbatore Stock Exchange Limited, (CSX) is located in Coimbatore, Tamilnadu, India. It is the youngest stock exchange in India. It was founded by K.G. Balakrishnan (not related to the current Chief Justice of the Supreme Court India of the same name). It is now governed by the Governing Body which consists of the member brokers. Currently the staff strength is fifty.• The exchange also has Screen Based Trading (SBT) system which commenced operations on 9 October 1996. The system is equipped to handle 25,000 traders per day and 400 members. Each member has been given a computer terminal which is connected in a Local Area Network (LAN). (c) www.aj- 10
  11. 11. • The Delhi Stock Exchange (DSE) is located in New Delhi, India. It was incorporated on June 25, 1947. The exchange is an amalgamation of Delhi Stock and Share Brokers Association Limited and the Delhi Stocks and Shares Exchange Limited. It is Indias fifth exchange. The exchange is one of the premier Stock Exchange in India. The Delhi Stock Exchange is well connected to 50 cities with terminals in North India.• The exchange has over 3,000 listed companies. It has received the market regulators permission from BSE and has become a member. Now it facilitates the DSE members to trade on the BSE terminals. The exchange is also considered the same from NSE. (c) www.aj- 11
  12. 12. • Delhi Stock Exchange has paired up with the National Security Depository Limited (NSDL), and commenced trading in dematerialised shares. This started September, 1988. However, the option for delivering shares either in physical or demat form started in November 1998. (c) www.aj- 12
  13. 13. • The Guwahati Stock Exchange (GSE) is locate in Guwahati, Assam, India. It was incorporated on 29 November 1983 and it was recognised by the Government of India on 1 May 1984. The GSE is limited by guarantee by the member- brokers. (c) www.aj- 13
  14. 14. • The Hyderabad Stock Exchange (HSE) was a stock exchange established in 1941 located in Hyderabad, India. The exchange was disbanded in 2007.• In November 1941, some leading bankers and brokers formed the share and stock Brokers Association. In 1942, Mr. Gulab Mohammed, the Finance Minister formed a committee for the purpose of constituting rules and regulations of the Stock Exchange. Sri Purushothamdas Thakurdas, president and founding member of the Hyderabad Stock Exchange performed the opening ceremony of the exchange on November 14, 1943 under Hyderabad Companies Act. Mr. Kamal Yar Jung Bahadur was the first president of the exchange. (c) www.aj- 14
  15. 15. • The HSE started functioning under Hyderabad Securities Contract Act of No. 21 of 1352 under H.E.H. Nizam’s government as a company limited by guarantee. It was the 6th Stock Exchange recognized under Securities Contract Act, after the Premier Stock Exchanges, Ahmedabad, Bombay, Calcutta, Madras, and Bangalore Stock Exchange. All deliveries were completed every Monday or the next working day. (c) www.aj- 15
  16. 16. • SEBI had notified The Hyderabad Stock Exchange Ltd. (Corporatisation and Demutualisation) Scheme, 2005 on August 29, 2005. The Hyderabad Stock Exchange Ltd. has failed to dilute 51% of its equity share capital to the public other than shareholders having trading rights on or before August 28, 2007. Consequently, in terms of section 5(2) of the Securities Contracts Regulation Act, 1956 (SCRA), the recognition granted to HSE was withdrawn with effect from August 29, 2007. After derecognization by SEBI, the company name has been changed to "Hyderabad Securities and Enterprises Ltd"• The number of members of the Exchange was 55 in 1943, 117 in 1993 and increased to 300 with 869 listed companies having paid up capital of Rs.19128.95 crores as of March 31, 2000. The business turnover also substantially increased to Rs. 1236.51 crores in 1999- 2000. The Exchange had a very smooth settlement system. (c) www.aj- 16
  17. 17. • Inter-connected Stock Exchange Ltd. (ISE) started its operation in 1998 in Vashi, Mumbai. It is a national-level stock exchange, providing trading, clearing, settlement, risk management and surveillance support to its trading members. It has 841 trading members, who are located in 18 cities. These intermediaries are administratively supported through the regional offices at Delhi, Kolkata, Patna, Ahmedabad, Coimbatore and Nagpur, besides Mumbai.• The ISE is promoted by 12 regional stock exchanges namely at Bangalore, Bhubaneshwar, Chennai, Cochin, Coimbatore, Guwahati, Indore, Jaipur, Kanpur, Mangalore, Magadh and Vadodara. The participating exchanges of ISE have 4,500 members and listed securities. It is a stock exchange of stock exchanges, members of the stock exchanges being traders on the ISE. (c) www.aj- 17
  18. 18. • Abolition of Badla with effect from July 2, 2001, acted as the backbone of trading at the Calcutta, Delhi, Ahmedabad and Ludhiana Stock Exchange Association and also at a few other exchanges, which conducted Badla trading but in a clandestine manner, dealt a serious blow to trading at the RSEs. Introduction of uniform trading cycles at all the stock exchange, also effective from July 2, 2001, reduced further the volume of trading at the RSEs due to diminished opportunities for arbitrage transactions. Introduction of compulsory rolling settlements, initially in a few securities and subsequently in all securities effective from December 31, 2001 on a T+5 bases accelerated the reduction in turnover at the RSEs. The switch over of the rolling settlement to T+3 effective from April 1, 2002 and to T+2 with effect from April 1, 2003 sealed the fate of the RSEs. (c) www.aj- 18
  19. 19. • Yet another major reason for the absence of trading at the RSEs is that all the major operators are all these exchanges acquired memberships of either NSE or BSE or of both, while most others acquired the sub-brokerships of members of NSE/BSE and all of them switched over their operations completely to NSE and BSE. In spite of the fact that trading at the RSEs has ground to a halt, RSEs have managed to survive so far because of the annual listing fees that are being received from the listed companies. The circulars issued by the Ministry of Finance on April 23, 2003 withdrawing its earlier circulars which required all companies including existing listed companies, to be listed on the stock exchanges located in the State where the registered office or the main works/fixed assets of the company are situated, has led to the conclusion of RSEs as companies have started lining up one after the other to get themselves delisted from the RSEs. (c) www.aj- 19
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