1 stock exchange an its importance


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1 stock exchange an its importance

  1. 1. Presented by:_ Anjum Fatima Anjana Rani Amit KumarHari Mohan Singh
  2. 2.  The Indian Securities Contracts (Regulation) Act of 1956, defines Stock Exchange as,"An association, organization or body of individuals, whether incorporated or not, established for the purpose of assisting, regulating and controlling business in buying, selling and dealing in securities."
  3. 3.  It is an organized market for the purchase and sale of industrial and financial security. London stock exchange (LSE) is the oldest stock exchange in the world. Two major one’s in India are… BSE and NSE. Bombay stock exchange (BSE) is the oldest in India.
  4. 4.  First stock exchange was set up in India in 1875 under "The Native Share and Stock Brokers Association". At present there are 23 recognised stock exchanges operating in India. Two familiar one’s are:- Bse(bombay stock exchange) Nse(national stock exchange)
  5. 5.  It is a part of capital market where only securities are bought and sold. Provides safety in dealings. Mobility of capital. Recognises the broad trend in the market. Used as a benchmark for evaluating the investors portfolio. Acts as financing industry.
  6. 6.  It is located in dalal street, MUMBAI. It is the oldest exchange in Asia. The equity market capitalization of cos listed in BSE us$1trillion as of dec’11. 6th largest exchange in Asia and 14th largest of the world.
  7. 7. It traces it’s history to the 1850’s. when 4Gujrati and 1 parsi stockbroker would gather under banyan tree, in front of Mumbai town hall.The location of these meetings changed many times, as the no. of brokers constantly increased.The gr. Move to Dalal street in 1874 and in 1875 become an official org. known as THE NATIVE SHARE AND STOCK BROKERS ASSOCITION.
  8. 8.  In 1956, the BSE become the first stock exchange to be recognized by the Indian Govt. under the Securities contracts regulation Act. The BSE developed the BSE SENSEX in 1986. In 2000 the BSE used this index to open it’s DERIVATIVES market, trading SENSEX ,FUTURE contract. Dev. Of SENSEX OPTION along with equity derivatives in 2001-02 The BSE switched to an electronics trading system in 1995.
  9. 9.  First in India to introduce equity Derivatives. First in India to launch exchange enabled Internet trading platform. First in India to obtain ISO certification for stock exchange. BSE on-line trading (BOLT) has been awarded the Globally recognized the information security management system standard. First to have an exclusive facility for financial training. First in India in financial sector to launch it’s websites in Hindi and Gujrati.
  10. 10.  The world council of corporate governance has awarded the Golden Peacock Global award for BSE initiatives in corporate social responsibility. The annual report and accounts of BSE for year ended mar.31 2006 and mar.31 2007 have been awarded the ICAI awards for excellence in financial reporting. The HRM at BSE has won the Asia-Pacific HRM awards for it’s in employee branding through talent management at work.
  11. 11.  Type -- Stock Exchange Location – Mumbai India Founded -- 1875 Owner – Bombay Stock Exchange Limited Key people – Madhu Kannan Currency – Indian Rupee No. of listing – 5112 Market capital– us$1trillion
  12. 12. . Type-Stock Exchange Location-Mumbai,India Founded-1992. Owner- National Stock Exchange of India Limited MD-Ravi Narain Currency-Indian rupee No. of listings-1,640 Market cap. – US$ 985 billion (Dec 2011) Website-www.nseindia.com
  13. 13. The National Stock Exchange of India was promoted by leading Financial Institutions of the Government of India, and was incorporated in November 1992 as a tax-paying company.In April 1993, it was recognized as a Stock Exchange under the Securities Contracts(Regulation)Act, 1956. NSE started operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment of the NSE started operations in November 1994, while operations in the Derivatives segment commenced in June 2000.
  14. 14.  Formation of National Stock Exchange of India Limited (NSE)1992 is one important development in the Indian capital market. The need was felt by the industry and investing community since 1991. The NSE is slowly becoming the leading stock exchange in terms of technology, systems and practices in due course of time. NSE is the largest and most modern stock exchange in India. In addition, it is the third largest exchange in the world next to two exchanges operating in the USA.
  15. 15.  The National Stock Exchange (NSE) -is a stock exchange located at ,Mumbai, Maharashtra(INDIA). It is the 16h largest Stock Exchange in the world by market capitalization and largest in India by daily turnover and number of trades, for both equities and derivative trading. NSE has a market capitalization of around US$985 billion and over 1,640 listings as of December 2011. NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India, and between them are responsible for the vast majority of share transactions.
  16. 16.  The NSEs key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalization. NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities. There are at least 2 foreign investors NYSE Euronext and Goldman Sachs who have taken a stake in the NSE.
  17. 17.  As of 2006, it cover more than 1500 cities across India. NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities. It is the second fastest growing stock exchange in the world with a recorded growth of 16.6%.
  18. 18.  NSE is the first exchange to propose an investor grievance cell and an investor protection fund . Setting up the first clearing corporation "National Securities Clearing Corporation Ltd." in India. NSCCL was a landmark in providing innovation on all spot equity market (and later, derivative markets) trades in India. Co-promoting and setting up of National Securities Depository Limited, first depository in India Setting up of S&P CNX Nifty.
  19. 19.  NSE started Internet Trading in February 2000, which led to the wide population of the NSE in the broker community. Being the first exchange that, in 1996, proposed exchange traded derivatives, particularly on an equity index, in India. After four years of policy and regulatory debate and formulation, the NSE was permitted to start trading equity derivatives. It is the first and the only exchange to trade GOLD ETFs (exchange traded funds) in India. NSE has also launched the NSE-CNBC-TV18 media centre in association with CNBC-TV 18..
  20. 20.  NSE.IT Limited, setup in 1999 , is a 100% subsidiary of the National Stock Exchange of India. A Vertical Specialist Enterprise, NSE.IT offers end-to-end Information Technology (IT) products, solutions and services. NSE (National Stock Exchange) was the first exchange in the world to use satellite communication technology for trading, using a client server based system called National Exchange for Automated Trading (NEAT). For all trades entered into NEAT system, there is uniform response time of less than one second.
  21. 21.  In August 2008 currency derivatives were introduced in India with the launch of Currency Futures in USD INR by NSE. Currently it has also launched currency futures in euros, pounds and yen. Interest Rate Futures were introduced for the first time in India by NSE on 31 August 2009, exactly one year after the launch of Currency Futures. NSE became the first stock exchange to get approval for interest rate futures, As recommended by SEBI-RBI committee, on 31 August 2009, a futures contract based on 7% 10 Year Government of India (Notional) was launched with quarterly maturities.
  22. 22.  NSEs normal trading sessions are conducted from 9:15 am India Time to 3:30 pm India Time. It opens on all days of the week except Saturdays, Sundays and Official Holidays declared by the Exchange (or by the Government of India) in advance. This timings is not valid for currency segment of National Stock Exchange. The exchange, in association with BSE (Bombay Stock Exchange Ltd.), is thinking of revising its timings from 9.00 am India Time to 5.00 pm India Time.