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Stock Exchange

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STOCK EXCHANGE

Presented By- Girish Chougule


Submitted To - Prof. Sonia Jain

Content
Introduction
Features
Functions
Major Players in Stock exchange
Types of Stock Exchange
BSE
NSE
OTCEI

Introduction
a market in which securities are bought and sold
Only stock exchange operating in 19 th century were those of

Mumbai set up in 1875 and Ahmedabad set up in 1894


Organised as non-profit-making association of brokers to regulate

and protect interest


Before 1950, it was state subject and Bombay Securities

Contracts(Control) Act of 1925 used to regulate trading


In 1956, it become central subject and on basis of A.D. Gorwala

committees recommdation, the securities Contract(Regulation) Act


become Law.

Features of stock Exchange


Market for securities
Deals in Second hand Securities
Regulates trade in securities
Allows dealings in Listed Securities
Transactions Effected only through members
Association of persons
Recognition from Central Government

Functions of Stock Exchange


Ensure Liquidity of Capital
Continuous market for Securities
Evaluation of securities
Helpful in raising new capital
Safety in dealing
Listing of securities

Major Player in Stock Exchange


Stock broker

a regulated professional individual, usually associated with a


brokerage firm or broker-dealer, who buys and sells stocks and
other securities for both retail and institutional clients
Financial Intermediaries

an institution that facilitates the channelling of funds between


lenders and borrowers indirectly, such as investment banks,
insurance companies, broker-dealers, mutual funds and pension
funds
Individual Investors

an individual who purchases securities for his or her own


personal account rather than for an organization

Major Stock Exchanges


BSE (Bombay Stock Exchange)
NSE (National Stock Exchange)
OTCEI (Over-the-Counter Exchange of India)

Bombay Stock Exchange


Oldest and largest stock exchange in Asia
Fifth largest in world
Approx. 5133 Indian companies listed
Introduce Equity derivatives in India
BSE Sensex

- a value-weighted index
- calculated out of 30 largest and most active trading stocks
Physically available in 417 cities in India
Online trading system BOLT

National Stock Exchange


Indias largest securities exchange
Trades on medium-sized securities of equity shares and debt

instruments
NSE is promoted by IDBI,ICICI,LIC,SBI etc. under the Companies Act

1956.
More than 1600 listed member
Fully automated electronic
Nifty is major index of NSE and it comprises 50 scripts from different

sectors.

Over-the-Counter Exchange of India


In mid 80s G.S. Patel committee and Abid Holi committee

recommended second tier stock market


Incorporated in 1990 and become operational in 1992.
Provide liquidity to a less traded security or that of smaller

company
Will not list and trade in companies listed on any other stock

exchange
Two way public offer

Conclusion

Thank you

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