Inter connected stock exchange

1. Inter-connected Stock
Exchange

2. Company Overview
 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.

3. Mission
 ISE shall endeavor to provide flexible and cost-
effective access to multiple markets to its
intermediaries across the country using the latest
technology.

4. OBJECTIVE
 Create a single integrated national-level solution with
access to multiple markets by providing high cost-
effective service to investors across the country.
 Create a liquid and vibrant national-level market for all
listed companies in general and small capital
companies in particular.
 Provide a level playing field to small Trading Members
by offering opportunity to participate in a national
market for investment.
 Provide clearing and settlement facilities to the
Trading Members across the country at their doorstep
in a decentralised mode.
 Spread demat trading across the country.

5. Regional offices
 Delhi
 Kolkata
 Patna
 Ahmadabad
 Coimbatore
 Nagpur
 Mumbai

6. Depository services
 Inter-connected Stock Exchange is a Depository Participant
of Central Depository Service(India) Limited (CDSL) and
National Securities Depository Limited(NSDL). ISE-DP
has branches at Delhi, Kolkata, Patna, Guwahati,
Ahmedabad, Hyderabad, Nagpur, Coimbatore, Tirunelveli
and 155 Collection Centers across the country. Following
depository services of CDSL are provided to the individual
and corporate investors by ISE-DP.
 Dematerialisation (Demat)
 Rematerialisation (Remat)
 Pledge of Demat securities
 Electronic Access to Securities Information & Execution of Secured
Transactions (easiest)
 Settlement of securities in Demat Mode
 Electronic Access to Securities Information (easi)

7. MILESTONES
 January 22, 1998 -ISE incorporated as a company limited
by guarantee.
 November 18, 1998-SEBI grants recognition to ISE.
 January 18, 2000 -Incorporation of ISS as a company
limited by share capital.
 February 24, 2000 -SEBI registers ISS for the Capital
Market segment of NSE.
 May 4, 2001-Internet trading for clients started by ISS for
the NSE segment through DotEx Plaza.
 February 13, 2002-SEBI registers ISS for the Futures &
Options segment of NSE.
 June 21, 2003-First Investor Education Program under the
Securities Market Awareness Campaign (SMAC) of SEBI
conducted at Vashi.

8. Cont
 December 27, 2004-Trading in the BSE equities segment
started by ISS.
 November 24, 2005-ISE re-registered as a “for profit”
company, limited by shares.
 September 13, 2007-ISE was notified by SEBI as a
“Demutualised Exchange”.
 January 30, 2008-Restructuring of Board of ISE in
accordance with the Corporatization and
Demutualization Scheme, 2005.
 March 4, 2010-ISE awarded the contract to TCS for
reviving its Trading Platform.

9. CLEARING & SETTLEMENT SYSTEMS
 In tune with the SEBI decision, ISE has implemented
T+2 settlement cycle from April 1, 2003. The
movement of funds is done through HDFC Bank and
ICICI Bank, while securities are moved only in demat
mode through the National Securities Depository
Ltd. and Central Depository Services (India) Ltd.

10. RESEARCH CELL
 The Research Cell has been established in November
2005 with the objective of carrying out quality research
on various facets of the Indian financial system in
general and the capital market in particular.
 It has brought out a weekly publication titled ‘Weekly
Corporate Tracker’ and a booklet entitled ‘Basics of
Economics’.
 The Research Cell plans to expand its activities by
publishing a host of value based research publications,
covering a number of areas, such as equities,
derivatives, bonds, mutual funds, risk management,
pension funds, money markets and commodities.

11. TRAINING CENTRE
 The ISE Training centre, established in November 2000,
has been conducting classroom training programmes on
different subjects related to the capital market, such as
equities trading and settlement, derivatives trading, day
trading, arbitrage operations, technical analysis,
financial planning, Etc.
 It also aims to make and build the professional careers of
MBA, post graduates and graduates, with a view to
enabling them to work effectively in securities trading,
risk management,financial management, function as
intermediaries(viz. stock brokers, sub-brokers, merchant
bankers, clearing bankers etc.)

12. INVESTOR PROTECTION
 All settlement liabilities amongst the Trading
Members of ISE are guaranteed by the Exchange’s
Settlement Guarantee fund. In addition, investors
are protected against non-fulfillment of
commitments by the Trading Members of ISE
through the Investor Protection Fund

13. TECHNOLOGY
 ISE technology driven companies and state of art
technology spread across the country covering 146
cities and almost all states in India.

14. OTCEI

15. OVERVIEW
 OTCEI was incorporated in 1990 as a
Section 25 company under the Companies
Act 1956 and is recognized as a stock
exchange under Section 4 of the Securities
Contracts Regulation Act, 1956.
 The Exchange was set up to aid enterprising
promoters in raising finance for new
projects in a cost effective manner and to
provide investors with a transparent &
efficient mode of trading.

16. OASIS
 Securities are traded on OTCEI through the
'OTCEI Automated Securities Integrated System'
(OASIS), a state-of-art screen based trading
system.
 OASIS combines the principles of order driven
and quote driven markets and enables trading
members to access a transparent & efficient market
directly through a nationwide telecommunication
network.

17. Objectives
 To promote organised trading in Unlisted
Securities
 To broadbase the existing informal market
in order to make it more liquid
 To provide a source of valuation for
securities
 To act as a launch pad to an IPO

18. Benefits to the Participants
 Act as a benchmark to value securities
 Creating an exit option for illiquid stocks / venture
capitalists
 Introducing transparency for trading in Unlisted
Securities
 Platform for issuers and first level investors (QPs) like
financial institutions, State level Financial
corporations, Foreign Institutional Investors to trade
 System for defining benchmark for securities
 Organising and broadbasing trading in the existing
market
 Shuffling portfolios for the investors
 Increasing business for the market constituents

19. Milestone
 The first Indian stock exchange to introduce nationwide
computerised screen-based trading.
 State-of-the-art, STRATUS fault tolerant computer
server
 Trading software modeled on TCAM software
 Connectivity through combination of satellite (VSAT) &
terrestrial (lease line/dialup) modes.
 Excellent infrastructure/software support from
TCS/HCL Comnet
 Network of Members / Dealers spread over more than 50
cities.

20. OTC Exchange of India has been co-promoted by
the leading financial institutions of the country:
 ICICI Bank Limited
 IDBI Bank Limited.
 SBI Capital Markets Limited
 IFCI Limited
 Life Insurance Corporation of India
 Canbank Financial Services Limited
 General Insurance Corporation of India
 The New India Assurance Company Limited
 The Oriental Insurance Company Limited
 United India Insurance Company Limited
 National Insurance Company Limited

21. New Initiative
 As part of the Dave Committee report in 1996, it was
suggested that equity shares of unlisted companies
should be allowed to be traded on OTCEI.
 In this context, the exchange has designed the trading
rules and the market guidelines for the initiation of
Trading in Unlisted Securities and the same has been
submitted to SEBI for approval.
 OTCEI proposes to introduce a vibrant and a well
regulated market structure for trading in unlisted
securities thereby giving an exit option for venture
capital / Private equity, offshore funds and other
institutions and corporates.