STOCK EXCHANGE

ANNEXUREINTRODUCTION OF STOCK EXCHANGE HISTORY OF STOCK EXCHANGE IN INDIAMEANING OF STOCK EXCHANGEDEFINITION OF STOCK EXCHANGEFEATURES OF STOCK EXCHANGEFUNCTIONS OF STOCKEXCHANGESERVICES OF STOCK EXCHANGEDEFECTS & STEPS IN STOCK EXCHANGEORGANISATION OF STOCK EXCHANGEWEAKNESS OF STOCK EXCHANGEPRIMARY & SECONDARY STOCK EXCHANGECURRENT AFFAIRS OF STOCK EXCHANGE

MEANING OF STOCK EXCHANGE

A Stock exchange is an organized market where shares, debentures, stocks and other securities are bought and sold.

FUNCTIONS OF STOCK EXCHANGE

1. READY MARKET2. EVALUATION OF SECURITITES3. PROTECTION OF INVESTORS4. MOBILISATION OF SAVINGS5. CAPITAL FORMATION6. ECONOMIC BAROMETERS7. REGULATION OF COMPANY

MANAGEMENT8. CLEARING HOUSE OF INFORMATION

HISTORY OF STOCK EXCHANGE Bombay Stock Exchange (BSE) was

established in 1875. It is ASIA’s 1st stock exchange an one of the

India’s leading exchange groups.

BRIEF HISTORY OF STOCK EXCHANGE IN INDIA

The first organised STOCK EXCHANGE in India was started in 1875 at Bombay and it is stated to be the oldest in Asia.

In 1894 the Ahmadabad  STOCK EXCHANGE was started to facilitate dealings in the shares of textile mills there. The Calcutta stock exchange was started in 1908 to provide a market for shares of plantations and jute mills.

The madras stock exchange was started in 1920. At present there are 24 stock exchanges in the country, 21 of them being regional

ones with allotted areas. Two others set up in the reform era, viz., the National Stock Exchange (NSE) and Over the Counter Exchange of India (OICEI), have mandate to have nation-wise trading.

They are located at Ahmadabad, Vadodara, Bangalore, Bhubaneswar, Mumbai, Kolkata, Kochi, Coimbatore, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kanpur, Ludhiana, Chennai Mangalore, Meerut, Patna, Pune, Rajkot.

FEATURES OF STOCK EXCHANGE

1. An organization in the form of an association or a company.

2. A governing board or board of directors to supervise and regulate activities.

3. A framework of rules and regulations.4. A system of communication between

members.5. Brokers to serve as a link between

the buyers and sellers.

BSE provides an efficient and transparent market for trading in equity, debt instruments, derivatives, mutual funds.

SERVICES RENDERED BY STOCK EXCHANGE

SERVICES TO THE COUNTRY SERVICES TO CORPORATE SECTOR SERVICES TO INVESTORS

DIFFERENCE BETWEEN SENSEX AND NIFTY

SENSX IS THE INDEX OF 30 TOP COMPANIES

NIFTY IS THE INDEX OF TOP 50 COMPANIES

NIFTY

SPECULATORS

SPECULATORS

WEAKNESS OF STOCK EXCHANGE

1. Neglect Of Small Investors.2. Restrictions Om Forward Trading.3. Ineffective Banking System.4. Inadequacy Of Investor Service.5. Inadequate Infrastructure.

MAIN WEAKNESSES OF STOCK EXCHANGE

STOCK EXCHANGE TRADERS

STOCK EXCHANGE TRADERS

REMISIERSAUTHORISED CLERKSBROKKERS AND JOBBERSTARAWANIWALASDEALERS

STOCK EXCHANGE TRANSACTIONS CAN BE CLASSIFIED INTO TWO KINDS. THEY ARE :

1. READY DELIVERY CONTRACTS2. FORWARD DELIVERY CONTRACTS

METHODS OF TRADING

OTCEI & NSE

OTCEI OTCEI is expanded as OVER-THE-

COUNTER EXCHANGE OF INDIA. It was set up on August 23, 1989 as a

JOINT STOCK COMPANY.ADVANTAGES :

1. It offers complete transparency in dealings.

2. It offers both liquidity and security.3. Transactions are made fast and quickly.4. It is INVESTOR-FRIENDLY.5. Offers settlement and delivery.

NSENSE is expanded as NATIONAL

STOCK EXCHANGE.It was also set up as a JOINT

STOCK COMPANY.OBJECTIVES :

1. To establish a nationwide trading facility for equities, debt instruments and hybrids.

2. To enable shorter settlement cycles and book entry settlement system.

3. To meet the current international standards of securities markets.

1. Lack of Integration2. Classification of Listed Securities3. Varying Margins4. Settlement and Carry Forward5. Lack of Attention on Investors’ Interests6. Weakness of SE Management

Major defects in trading in Indian stock exchanges

THANK YOU ! ! !FOR WATCHING. . .

PRESENTED BY

HARI PRIYA. M