The document summarizes key aspects of perfect competition and provides a case study on the Indian stock exchange. It discusses how the stock exchange historically resembled a perfectly competitive market with many buyers and sellers trading identical products. However, over time the exchange transitioned from open outcry trading to screen-based trading to increase efficiency. Several scams in the 1990s and early 2000s exposed regulatory loopholes, leading to reforms like the establishment of SEBI to protect investors and increase transparency.

1. Perfect Competition – Case Study on Stock Exchange By: Amit Sheth Gagan Pareek Sainatth Wagh Samir Daddikar

3. The number of firms is large.

4. There are no barriers to entry.

5. The firms' products are identical.

7. Poultry

8. Stock Market

9. Fisheries

11. Constituents of Stock Market Types of Securities

12. List of Stock Exchanges India

14. Investors were allowed to watch from the investors’ gallery and they had to physically visit the broker’s office to place an order. A representative of the broker would then rush to the Ring and execute the trade. Disadvantages of Open Out Cry: This was time consuming and inefficient Imposed limits on trading volumes and efficiency. Share of Mumbai was 80% , whereas rest part was not able to participate.

16. This enabled it to spread across to various towns and cities in India by setting up terminals connected to the central system through VSAT.

18. Transaction Stages –Micro Level Pay In and Pay Out Period

19. From outcry to screenplay 2009 :NSE turnover almost 70% of total stock market Trade settlement reduced from three weeks to T+15 and now T+2. Mumbai shares compare with India reduced from 70% to 40% , thereby giving large players fare chance.

21. The amount involved in the scam was around 4000 cr INR.

24. In the mean time the seller holds the securities in trust of buyer.

25. For this operation, banks such as the bank of Karad (BoK) and Metropolitan Co-operative Bank (MCB) came handy which issued Mehta with fake BR or BR without any backing from government.

28. In this settlement process, the buyer and the seller might not even know whom they had traded with, either being know only to the broker.

30. Registering and regulating the working of stock brokers.

31. Promoting and regulating self-regulatory organizations.

32. Prohibiting insider trading in securities.

33. Regulating substantial acquisition of shares.

34. Leving fees or other charges for carrying out various activities.

36. Shortening of trading and settlement cycles

38. Dematerialising the securities in the depository mode

39. Providing maintenance of ownership records in a book entry form.

40. Facilitating Screen Based Electronic Trading

42. Investor Protection Investor Education and Protection Fund (IEPF) SEBI and the stock exchanges have set up investor grievance cells for redressal of investor grievance.

44. Sudden crash of 176 points on 1 March 2001

45. SEBI ordered for an instant investigation

46. KP arrested on 30 March 2001

49. KP used his BoI accounts to discount 248 pay orders worth about Rs 24 billion between January and March 2001

50. BoI's losses eventually amounted to Rs 1.2 billion

54. Term Imprisonment for three to seven years.

56. Questions??

57. THANK YOU!!