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1. base. Q: What is the role of stock exchanges? A: Stock exchanges are regulated markets where
securities like bonds, notes, and shares are bought and sold, enabling companies to raise capital
and investors to trade securities. They provide a fair marketplace, enhance liquidity, and protect
investors' rights. Q: What is the process of demutualization? A: Demutualization is the
transformation of member-owned organizations into shareholder-owned companies, either listed
on stock exchanges or closely held. Demutualized stock exchanges operate under SEBI
recognition and include OTCEI, NSE, and BSE in India. Q: What are the advantages of stock
exchanges? A: Stock exchanges offer a fair market, enhance liquidity, provide transparent pricing,
offer continuous reporting of prices, furnish comprehensive information about companies,
protect investors' rights, eliminate counterparty risk, and ensure organized trading and clearing.
Q: What is the BSE known for? A: BSE (Bombay Stock Exchange) is the oldest and most
experienced exchange in Asia. It introduced securities trading in India, and was granted
permanent recognition. It became a corporate entity in 2005 and was demutualized in 2007. BSE
is also the fastest exchange in the world, with trades executed in 6 microseconds.