NSE & BSE
Secondary Market Structure
NSE
Board of Directors
Mr. Ashok Chawla
Former Secretary, Ministry of Finance
Government of India
Chairman
[Public Interest Director]
Mr. Ravi Narain
Former Managing Director & CEO
National Stock Exchange of India Limited
Vice Chairman
[Shareholder Director]
INTRODUCTION
The national stock exchange of India was promoted
by leading financial institution at the order of
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 contract(Regulation) Act,
1956…NSE commenced operation in June 1994
The capital market segment of the NSE commenced
operation in November 1994 ,while operation in the
derivatives segment in June 2000
PURPOSE
•
•
•
•
•
Establishing a National wide trading facility for all
type of securities.
Ensuring equal access to investor all over the
country through an appropriate communication
network.
Providing for a Fair, efficient and transparent
securities market using electronic Trading system.
Enabling shorter Settlement cycles.
Meeting up with international benchmark and
standard
Trading schedule
•
•
•
Trading takes place on all days of the week except
Saturdays & Sundays. The market timings are as
follows:
(1) Pre-open session (Regular)
Order entry & modification Open: 09:00 hrs
Order entry & modification Close: 09:08 hrs*
*with random closure in last one minute. Pre-open
order matching starts immediately after close of
pre-open order entry.
(2) Pre-open Session for IPO and Relist Securities
Order entry & modification Open: 09:00 hrs
Order entry & modification Close: 09:45 hrs*
*with random closure in last one minute. Pre-open
order matching starts immediately after close of
pre-open order entry.
•
(3) Regular trading session
Normal Market Open: 09:15 hrs
Normal Market Close: 15:30 hrs
(4) The Closing Session is held between 15.40 hrs
and 16.00 hrs.
The Exchange may also extend, advance or
reduce trading hours when its deems fit and
necessary.
ADVANTAGES
WIDER ACCESSIBILITY
SCREEN BASED TRADING
NON-DISCLOSURE OF THE TRADING MEMBERS
IDENTITY
TRANSPARENT TRANSACTION
MATCHING OF ORDERS
TRADING IN DEMATERIALISED FORM
ROLEROLE
•
•
•
•
•
•
Raising capital for businesses
Mobilizing savings for investment
Facilitating company growth
Profit sharing
Corporate governance
indicator of the economy
Mile Stones
•
•
•
•
•
•
November 1992 Incorporation
April 1993 Recognition as a stock exchange
October 1995 Became largest stock exchange in
the country
April 1996 Launch of S&P CNX Nifty
November 1997 Best IT Usage award by
Computer Society of India.
May 1998 Launch of NSE's Web-site: www.nse.co.
in
•
•
•
•
•
•
•
February 2000 Commencement of Internet
Trading
June 2000 Commencement of Derivatives Trading
(Index Futures)
January 2002 Launch of Exchange Traded Funds
(ETFs)
June 2007 NSE launches derivatives on Nifty
Junior & CNX 100.
August 2008 Launch of Currency Derivatives
November 2009 Launch of Mutual Fund Service
System
February 2010 Launch of Currency Futures on
additional currency pairs
Markets
•
•
•
•
•
•
Currently, NSE has the following major segments of the
capital market:
Equity
Futures and Options
Retail Debt Market
Wholesale Debt Market
Currency futures
MUTUAL FUND
BSE
Board of Directors
• Mr. Ashishkumar Chauhan
Managing Director & CEO
Dr. K. Kasturirangan 
Public Interest Director
Dr. Sriprakash Kothari
Shareholder Director
Mr. Sethurathnam Ravi
Public Interest Director
About
•
•
•
•
•
•
Original named as “The Native Share & Stock
Brokers Association”
Established : 1875 
Location : Mumbai
Work on bid-ask quote
In 1995 its fully computerized system (screen-
based system)
In 1996 SEBI permitted BSE to extend its BOLT
network outside of mumbai.
•
•
•
•
SENSEX is major index of BSE
SENSEX comprise 30 scripts from different
sectors
.
Other important indices originating from the
Bombay exchange include the BSE 100, BSE 500,
BSEPSU, BSEMIDCAP, BSESMLCAP.
BSE Hours of Operation
•
•
•
•
•
•
•
•
•
Beginning of the Day Session: 8:00 - 9:00
Login Session: 9:00 - 9:15
Trading Session: 9:15 - 15:30
Position Transfer Session: 15:30 - 15:50
Closing Session: 15:50 - 16:05
Option Exercise Session: 16:05 - 16:35
Margin Session: 16:35 - 16:50
Query Session: 16:50 - 17:35
End of Day Session:17:35 
Various stock exchange in India
•
•
•
•
•
•
•
•
•
•
Bombay Stock Exchange (BSE)
National Stock Exchange of India (NSE)
Indian Commodity Exchange (ICEX)
United Stock Exchange of India (USE)
Multi Commodity Exchange (MCX)
Over the Counter Exchange of India (OTCEI)
Inter-connected Stock Exchange of India (ISE)
Madras Stock Exchange (MSE)
Ahmedabad Stock Exchange (ASE)
Bhubaneshwar Stock Exchange (BhSE)
•
•
•
•
•
•
•
•
•
•
Cochin Stock Exchange (CSE)
Hyderabad Stock Exchange (HSE)
Calcutta Stock Exchange (CSE)
Delhi Stock Exchange (DSE)
Bangalore Stock Exchange
Madhya Pradesh Stock Exchange, Indore
Jaipur Stock Exchange (JSE)
Magadh Stock Exchange, Patna
UP Stock Exchange (UPSE)
Vadodara Stock Exchange,Vadodara (VSE)
17 most valuable stock exchanges 
•
•
•
•
•
•
•
•
New York Stock Exchange
NASDAQ-National Association of
Securities Dealers Automated Quotations 
Japan Exchange Group
Shanghai Stock Exchange
London Stock Exchange
Euronext
Shenzhen Stock Exchange-China
Hong Kong Stock Exchange
•
•
•
•
•
•
•
•
TMX Group-Canada
Deutsche Boerse-Germany's
National Stock Exchange of India
SIX Swiss Exchange
Korea Exchange
Australian Securities Exchange
NASDAQ Nordic Exchanges
Johannesburg Stock Exchange 

Fm unit-1 part 2

  • 1.
    NSE & BSE SecondaryMarket Structure
  • 2.
  • 3.
    Board of Directors Mr.Ashok Chawla Former Secretary, Ministry of Finance Government of India Chairman [Public Interest Director] Mr. Ravi Narain Former Managing Director & CEO National Stock Exchange of India Limited Vice Chairman [Shareholder Director]
  • 4.
    INTRODUCTION The national stockexchange of India was promoted by leading financial institution at the order of 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 contract(Regulation) Act, 1956…NSE commenced operation in June 1994 The capital market segment of the NSE commenced operation in November 1994 ,while operation in the derivatives segment in June 2000
  • 5.
    PURPOSE • • • • • Establishing a Nationalwide trading facility for all type of securities. Ensuring equal access to investor all over the country through an appropriate communication network. Providing for a Fair, efficient and transparent securities market using electronic Trading system. Enabling shorter Settlement cycles. Meeting up with international benchmark and standard
  • 6.
    Trading schedule • • • Trading takesplace on all days of the week except Saturdays & Sundays. The market timings are as follows: (1) Pre-open session (Regular) Order entry & modification Open: 09:00 hrs Order entry & modification Close: 09:08 hrs* *with random closure in last one minute. Pre-open order matching starts immediately after close of pre-open order entry. (2) Pre-open Session for IPO and Relist Securities Order entry & modification Open: 09:00 hrs Order entry & modification Close: 09:45 hrs* *with random closure in last one minute. Pre-open order matching starts immediately after close of pre-open order entry.
  • 7.
    • (3) Regular tradingsession Normal Market Open: 09:15 hrs Normal Market Close: 15:30 hrs (4) The Closing Session is held between 15.40 hrs and 16.00 hrs. The Exchange may also extend, advance or reduce trading hours when its deems fit and necessary.
  • 8.
    ADVANTAGES WIDER ACCESSIBILITY SCREEN BASEDTRADING NON-DISCLOSURE OF THE TRADING MEMBERS IDENTITY TRANSPARENT TRANSACTION MATCHING OF ORDERS TRADING IN DEMATERIALISED FORM
  • 9.
    ROLEROLE • • • • • • Raising capital forbusinesses Mobilizing savings for investment Facilitating company growth Profit sharing Corporate governance indicator of the economy
  • 10.
    Mile Stones • • • • • • November 1992Incorporation April 1993 Recognition as a stock exchange October 1995 Became largest stock exchange in the country April 1996 Launch of S&P CNX Nifty November 1997 Best IT Usage award by Computer Society of India. May 1998 Launch of NSE's Web-site: www.nse.co. in
  • 11.
    • • • • • • • February 2000 Commencementof Internet Trading June 2000 Commencement of Derivatives Trading (Index Futures) January 2002 Launch of Exchange Traded Funds (ETFs) June 2007 NSE launches derivatives on Nifty Junior & CNX 100. August 2008 Launch of Currency Derivatives November 2009 Launch of Mutual Fund Service System February 2010 Launch of Currency Futures on additional currency pairs
  • 12.
    Markets • • • • • • Currently, NSE hasthe following major segments of the capital market: Equity Futures and Options Retail Debt Market Wholesale Debt Market Currency futures MUTUAL FUND
  • 13.
  • 14.
    Board of Directors •Mr. Ashishkumar Chauhan Managing Director & CEO Dr. K. Kasturirangan  Public Interest Director Dr. Sriprakash Kothari Shareholder Director Mr. Sethurathnam Ravi Public Interest Director
  • 15.
    About • • • • • • Original named as“The Native Share & Stock Brokers Association” Established : 1875  Location : Mumbai Work on bid-ask quote In 1995 its fully computerized system (screen- based system) In 1996 SEBI permitted BSE to extend its BOLT network outside of mumbai.
  • 16.
    • • • • SENSEX is majorindex of BSE SENSEX comprise 30 scripts from different sectors . Other important indices originating from the Bombay exchange include the BSE 100, BSE 500, BSEPSU, BSEMIDCAP, BSESMLCAP.
  • 17.
    BSE Hours ofOperation • • • • • • • • • Beginning of the Day Session: 8:00 - 9:00 Login Session: 9:00 - 9:15 Trading Session: 9:15 - 15:30 Position Transfer Session: 15:30 - 15:50 Closing Session: 15:50 - 16:05 Option Exercise Session: 16:05 - 16:35 Margin Session: 16:35 - 16:50 Query Session: 16:50 - 17:35 End of Day Session:17:35 
  • 18.
    Various stock exchangein India • • • • • • • • • • Bombay Stock Exchange (BSE) National Stock Exchange of India (NSE) Indian Commodity Exchange (ICEX) United Stock Exchange of India (USE) Multi Commodity Exchange (MCX) Over the Counter Exchange of India (OTCEI) Inter-connected Stock Exchange of India (ISE) Madras Stock Exchange (MSE) Ahmedabad Stock Exchange (ASE) Bhubaneshwar Stock Exchange (BhSE)
  • 19.
    • • • • • • • • • • Cochin Stock Exchange (CSE) HyderabadStock Exchange (HSE) Calcutta Stock Exchange (CSE) Delhi Stock Exchange (DSE) Bangalore Stock Exchange Madhya Pradesh Stock Exchange, Indore Jaipur Stock Exchange (JSE) Magadh Stock Exchange, Patna UP Stock Exchange (UPSE) Vadodara Stock Exchange,Vadodara (VSE)
  • 20.
    17 most valuablestock exchanges  • • • • • • • • New York Stock Exchange NASDAQ-National Association of Securities Dealers Automated Quotations  Japan Exchange Group Shanghai Stock Exchange London Stock Exchange Euronext Shenzhen Stock Exchange-China Hong Kong Stock Exchange
  • 21.
    • • • • • • • • TMX Group-Canada Deutsche Boerse-Germany's NationalStock Exchange of India SIX Swiss Exchange Korea Exchange Australian Securities Exchange NASDAQ Nordic Exchanges Johannesburg Stock Exchange