1. By,
Rakesh Murthy K G, CFA

2. Stock Exchange
 An organized Market to transact in Financial
Instruments
 Recognized by SEBI
 The Reach of Stock Exchange has been extended to
deal in Commodities and naturally any tangible assets

3. Functions
 Liquidity
 Safety of Funds
 Supply for Long term Funds
 Flow of Capital
 Misc

4. Recognition Procedure
 Grant Recognition
 The rules & By-Laws of the exchange must ensure in fair
dealing and protection of Investors
 To be compliant and promise to remain for all the laws
framed and future laws by the GOI
 The grant should be in the Interest of Trade and Public
Interest
 Renewal of Recognition

5. Demutualization
 Originally all the exchanges were formed as an
association of Persons
 Now, all the Recognized exchanges had to be
Demutualised
 That is, to be formed as a Corporate Structure
 Now all the Stock Exchanges are functioning as
Public/Private ltd. Companies
 Guess the Listed Public Ltd Stock exchange and Non Listed
Public Ltd. exchange

6. Analyze
Merits Drawbacks
 Liquidity  Speculation
 Publicity  Economic Crisis
 Assures Capital  Degrades Company’s
Reputation
 Borrowing Capacity
 Disclosure
 Protects Investors

7. Recent Developments
 Entry of FII’s
 Allowing the Listing of Foreign Stocks
 Having the Index spread its wings
 MF’s and ETF’s
 25% of the Issued Capital to be in the hands of Public
to meet the Listing Compliance
 Mandatory rating by the Credit Rating Agencies

9. “Be the change you want to see in this world”
- Mahathma Gandhi