2. About
A stock exchange is a form of exchange which
provides services for stock brokers and traders to
trade stocks, bonds, and other securities.
Securities on stock trade includes companies,
bonds, unit trust, investment products.
The first stock exchange in India is the BSE,
established in 1875.
Trading on exchange is only by members
3. Features
Providing liquidity & marketability to
existing shares.
Pricing of securities.
Safety of transaction.
Providing scope for speculation.
Facilitate online and offline stock trading.
4. BSE
The first Exchange in India and second world’s ISO 9001-2000
certified.
Located in Mumbai
5,381 listings (as of May, 2014) out of which 1294 companies
are in suspended category and 4087 companies are eligible
for trading.
Indices are: BSE SENSEX
BSE Small Cap
BSE Mid-Cap
BSE 500
5. Functions
First level regulator in the securities market.
To detect irregularities and manipulations in stock
prices.
Provides counter party risk management
Trades equity, debt, mutual funds and derivatives.
6. NSE
Established in the mid 1990s as a demutualised electronic
exchange.
Located in Mumbai.
CEO: Chitra Ramkrishna
9th 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.
Indices: CNX Nifty
CNX Nifty Junior
CNX 500
7. OTC Exchange of India
Founded in 1990
First exchange for small companies
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.
The Exchange today has 115 listings and has assisted in
providing capital for enterprises that have gone on to build
successful brands for themselves like VIP Advanta, Sonora
Tiles & Brilliant mineral water, etc.
