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Indian Stock Market

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INDIAN STOCK

………MARKET
VISION 2020
“To be a leading securities
exchange in the world”
That believes in: -
•People
•Integrity
•Professional Ethics
•Innovation
•Confidentiality
•Fairness
•Excellence
“To provide a world class trading facility for wealth
creation
PRESENT STATUS OF
INDIAN STOCK MARKET
• On Feb, 2010, the equity market capitalization of the companies
listed on the BSE was US$1.28 trillion, making it the 4th largest
stock exchange in Asia and the 11th largest in the world.
• Talking about NSE is the second fastest growing stock exchange in
the world with a recorded growth of 16.6%.
• Also NSE is the third largest Stock Exchange in the world in terms
of the number of trades in equities.
• With over 4900 Indian companies listed & over 7700 scrips on the
stock exchange, it has a significant trading volume.
WHERE WE ARE LAGGING ?
• Transparency in operations
• To raise resources directly from the market on an
increasing scale
• Lack of proper governance system which leads the
speculators enter easily into the market.
• Lack of awareness about the stock market trading
amongst the common people.
• Major portion of Indian households invest in deposits
account rather than more risky securities.
HOW COULD INDIAN STOCK
MARKET IMPROVE :
• By setting up nationwide trading facilities for equity debt
instruments and hybrids.
• By ensuring equal access to investor through proper
communication network.
• By providing fair and transparent security market to
investors.
• By ensuring shorter settlement cycle and book entry
settlement system.
• By meeting current international standards.
ROLE OF FIIA
To flexible the rules of FIIA i.e. Foreign Investment
Implementation Authority.
To be more flexible and allow more participation of FDI’s
& FII’s.
To initiate multi agency consultations.
To enhance overall credibility.
To refer the matter not resolved at FIIA level to the higher
level so as to avoid delay.
ROLE OF SEBI AND RBI
• To ensure that new derivative market should operate
fairly on market principles.
• SEBI should create a derivative cell, an advisory
committee & Economic research team.
• SEBI should the make the entry of broker more stringent
than cash market (existing exchange).
• SEBI &RBI should review the governance system of
exchange & introduced strict system so as to prevent
fraud
WHAT IS STOCK MARKET
• A stock market or equity market is a public market (a
loose network of economic transactions, not a physical
facility or discrete entity) for the trading of company
stock (shares) and derivatives at an agreed price; these
are securities listed on a stock exchange as well as those
only traded privately.
• A few decades ago, worldwide, buyers and sellers were
individual investors, such as wealthy businessmen, with
long family histories (and emotional ties) to particular
corporations. Over time, markets have become more
"institutionalized"; buyers and sellers are largely
institutions .

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