The document discusses stock markets in India. It provides an introduction to stock markets, including their history and role in India. It then discusses key features of stock markets such as advantages and disadvantages. Finally, it discusses methods to promote a healthy stock market, focusing on major stock exchanges in India like the Bombay Stock Exchange and National Stock Exchange. Order types, matching rules, and trading rules of these exchanges are also outlined.

1. What is Stock Market and what are
the method to promote a healthy stock
market.

2.  Introduction of stock market
 History
 Role in India
 FEATURE
 ADVANTAGE & DISADVANTAGE
 METHODS
CONTENT

3.  The Stock Market is the market in which share of
publicly held companies are issued and traded either
through exchange or over the country markets.
 Share Market are also know as Equity market.
 The Stock Market can be split into two main section:
1. Primary Market
2. Secondary market
INTRODUCTION OF STOCK MARKET

4.  The first organised stock exchange in India was started in -1875
at Bombay and it is started to be oldest in Asia.
 In 1884 the Ahmedabad Stock Exchange was started.
 The Calcutta stock Exchange was started in 1908.
 Then the Madras Stock Exchange was started in 1920.
 Two other set up in the reform era.
1. NATIONAL STOCK EXCHANGE (NSE)
2. OVER THE COUNTRY EXCHANGE OF INDIA (OICEI)
HISTORY OF STOCK MARKET
(THE BOMBAY STOCK EXCHANGE)

5.  To establish a nation wise trading facility for equity debt and
hybrid instrument.
 To ensure investors all over the country equal excess through an
appropriate communication network.
 To provide fair, efficient and transparent security market to the
investor through an electronic system.
 To unable shorter settlement cycle and book entry settlement
system.
 To meet the current international standard of the securities
market.
A modern stock exchange which brought the global
practices. It was establish in 1992 with the following
objective.

6.  Any recognized Stock Exchange may subject to previous
approval of SEBI make and from by loss for the regulation &
control of contract.
 The by laws may provide for the opening & closing of market &
regulation of an hours of trade.
 Regulatre or prohibates blank transfer.
 To determine and declare market rates including the opening
and closing highest & lowest rates for securities.
 Fixation of method & procedures for the settlement of claims or
disputes including settlement by arbitration.
FUNCTION OF A STOCK EXCHANGE

7.  Giving access to new capital to develop the business..
 Making it easier for you and other investors including venture
capitalists to realise their investment.
 Placing a value on your business.
 Increasing your public profile and providing reassurance to your
customers and suppliers.
 Allowing you to offer employees to extra incentives by granting
share option – this can encourage and motivate your employees
to work towards long – term goals.
Benefits of Stock Market Floatation

8.  Market Fluctuation
 Cost
 Responsibilities to shareholders
 The need for transparancy
 Demand on the Management team
 Investor relations.
Problems of Stock Market Floatation

9.  BSE
 NSE
 OTCEI
 INTER CONNECT STOCK EXCHANGE IN INDIA
METHOD TO PROMOTE A HEALTHY
STOCK MARKET

10. 
BOMBAY STOCK EXCHANGE (BSE)
TYPE STOCK EXCHANGE
LOCATION MUMBAI, MAHARASHTRA,INDIA
COORDINATES 18.929681 N 72.833589 E
FOUNDED 9 JULY 1875
OWNER BSE LIMITED
KEY PEOPLE ASHIS KUMAR CHAUHAN (MD & CEO)
CURRENCY INDIAN RUPEE
NO. OF LISTININGS 5749
MARKET CAP US$ 1.64 TRILLION (SEP 2015)
VOLUME US$ 93 BILLION (JUNE 2014)
WEBSITE WWW.bseindia.com
INDICES BSE SENSEX, BSE SMALL CAP, BSE MID-
CAP, BSE 500

11.  ORDER MATCHING RULES
- Order matching take place
after order acceptance wherein the system search for
an opposite matching order. If a match is found , a
trade has generated.
In case the order is not exhausted further matching
order are searched for and trades generated till the
order gets exhausted or no more match – able order
are found. If the order is not entirely exhausted, the
system retains the order in the pending order book.
BSE TRADING RULES

12.  LIMITED ORDER
 MARKET ORDER
 STOP LOSS
ALL ORDERS HAVE THE FOLLOWING ATTRIBUTES
1. ORDER TYPE
2. ASSETS CODE, PRODUCT TYPE, CALL PUT AND STRIKE PRICE
3. BUY SELL INDICATOR
4. ORDER QUANTITY
5. PRICE
6. ORDER RELATION TYPE (GFD GTD GTC)
7. ORDER RELATRION PERIOD
8. PROTECTION POINTS
9. RISK REDUCING ORDER
ORDER CONDITION OF BSE

13. TYPE STOCK EXCHANGE
LOCATION MUMBAI, INDIA
FOUNDED 1992
OWNER NATIONAL STOCK EXCHANGE OF INDIA
LTD.
KEY PEOPLE CHITRA RAMKRISHNA (MD & CEO)
CURRENCY INDIAN RUPEE
NO. OF LISTING 1696
MARKET CAP US$ 1.65 TRILLION (23 JAN 2015)
VOLUME US$442 BILLION (JUNE 2014)
WEBSITE WWW.nseindia.com
INDICES CNX NIFTY, CNX NIFTY JUNIOR, CNX 500
NATIONAL STOCK EXCHANGE (NSE)

14.  ORDER MATCHING RULES
- The best buy order will match
with the best sell order. An order may match partially
with another order resulting in multiple trade. For
order matching, the best buy order is the one with
highest price and the best sell order is the one with
lowest price. This is because the computer views all
buy order available from the point of view of a seller
and all sell orders from the point of view of the buyers
in the market.
NSE TRADING RULES

15.  ORDER CONDITION
 TIME CONDITION
1. DAY
2. IOC
 PRICE CONDITION
1. LIMIT PRICE ORDER
2. STOP LOSS PRICE ORDER
ORDER CONDITION OF NSE

16. OVER THE COUNTER EXCHANGE INDIA
(OTCEI)