Stock Exchange
BSE/NSE/OTC
GROUP MEMBER:
• AMMOL PATIL
• SUSHIL PATIL
• SMRUTI PANASKAR
• SHIKHA SHAH
• SHWETA TOPKAR
• SWAPNIL SAGNE
Under the Guidance of
Prof. [Link]
STOCK EXCHANGE
Stock Exchange
• A stock exchange is an entity which provides
"trading" facilities for stock brokers and traders,
to trade stocks and other securities.
Roles of Stock Exchanges
• Raising capital for businesses
• Mobilizing savings for investment
• Facilitating company growth
• Profit sharing
• Corporate governance
Major Stock Exchanges
• New York Stock Exchange, New York City
• London Stock Exchange, the City of London
• Sao Paulo Stock Exchange, Sao Paulo
• Australian Securities Exchange's Sydney
Exchange Centre, Sydney
• Borsa Italiana, Milan Stock Exchange
• Tokyo Stock Exchange, Tokyo
• Toronto Stock Exchange, Toronto
• Frankfurt Stock Exchange, Frankfurt
• Paris Stock Exchange, Paris
• SWX Swiss Exchange, Zurich
• Mexican Stock Exchange, Mexico City
Indian Stock Exchanges
• Bombay stock exchange
• National stock exchange(Mumbai)
• Banglore stock exchange
• Utter pradesh stock exchange(kanpur)
• Magadh stock exchange(Patna)
• Ahmedabad stock exchange
• Vadodara stock exchange(Baroda)
• Bhubaneswar stock exchange
• Calcutta stock exchange(kolkata)
• Madras stock exchange
Conti…..
• Cochin stock exchange
• Coimbatore stock exchange
• Gauhati stock exchange
• Hydrabad stock exchange
• Madhya pradesh stock exchange(indore)
• Jaipur stock exchange
• Ludhina stock exchange
• Mangalore stock exchange
• Pune stock exchange
• Saurashtra stock exchange
Bombay Stock Exchange
BSE
• Established in 1875, the exchange is also the oldest in Asia.
• 23 stock exchanges in the India.
• Bombay Stock Exchange is the largest, with over 6,000 stocks
listed.
• The BSE accounts for over two thirds of the total trading volume
in the country.
• Among the twenty-two Stock Exchanges recognized by the
Government of India under the Securities Contracts (Regulation)
Act, 1956.
• ACC • MARUTI
• AIRTEL • MAHINDRA & MAHINDRA
• BHEL • NTPC
• DLF • ONGC
• GRASIM • RANBAXY
• GUJRAT AMBUJA • RELIANCE
• HDFC • RIL
• HDFC BANK • STERLITE INDUSTIES LTD
• HINDALCO • SBI
• HUL • TCS
• ICICI BANK • TATA MOTERS
• INFOSYS • TATA STEEL
• SUN Pharma IND. LTD • TATA POWER COMPANY LTD
• ITC • WIPRO
• L&T
SENSEX
• BSE, in 1986, came out with a Stock Index-SENSEX- that
subsequently became the barometer of the Indian stock
market.
• The launch of SENSEX in 1986 was later followed up in
January 1989 by introduction of BSE National Index
(Base: 1983-84 = 100).
• The BSE National Index was renamed BSE-100 Index
from October 14, 1996 and since then, it is being
calculated taking into consideration only the prices of
stocks listed at BSE. BSE launched the dollar-linked
version of BSE-100 index on May 22, 2006.
• SENSEX has been calculated since 1986 and initially it
was calculated based on the Total Market Capitalization
methodology and the methodology was changed in 2003
to Free Float Market Capitalization.
• Hence, these days, the SENSEX is based on the Free
Floating Market cap of 30 SENSEX Stocks traded on the
BSE relative to the base value which is 100(1978-79) and
it is calculated for every 15 seconds.
How is SENSEX calculated?
• The formula for calculating the SENSEX = (Sum of
free flow market cap of 30 benchmark stocks)*Index
Factor
• where,
Index Factor = 100/Market Cap Value in 1978-79.
100 is the Index value during 1978-79
Example
• Assume SENSEX has only 2 stocks namely SBI and
RELIANCE. Total shares in SBI are 500 out of which
200 are held by Government and only 300 are
available for public trading. RELIANCE has 1000
shares out of which 500 are held by promoters and
500 are available for trading. Assume price of SBI
Stock is Rs.100 and Reliance is Rs.200. Then "free-
Floating Market Cap" of these 2 companies
• (300*100+500*200) = 30000+100000 = Rs. 130000
Assume Market Cap during the year 1978-79 was
Rs.25000
Then SENSEX = 130000*100/25000 = 520.
The methodology in the example is exactly followed
to calculate the SENSEX, only difference being the
inclusion of 30 stocks.
National Stock Exchange
NSE
• Located:
• It was set up in 1992
• The instruments traded are, treasury
bills, government security and bonds
issued by public sector companies
NIFTY
• [Link] year is 1995 and base value is 1000.
[Link] is calculated based on 50 stocks.
Hours
• Normal Trading Sessions- 9.00 a.m.-
3.30 p.m.
• On Dec 16, 2009, NSE announced that
it would pre-pone the market opening at
9.00 a.m. from Dec 18,2009.
• NSE new market timing- 9.00 a.m.- 3.30
p.m.- Jan 04, 2010.
• Market Capitalization
47,01,923 Cr (7 Aug 2009)
• As no. of other stock exchanges exit,
NSE and BSE are the two most
important stock exchanges in India.
• Two Foreign Investors- NYSE Euronext
and Goldman Sachs.
Over The Counter Exchange of India
OTCEI
OTCEI
• OTC Exchange Of India also known as Over-the-
Counter Exchange of India or OTCEI was set up
to access high-technology enterprising promoters
in raising finance for new product development in
a cost effective manner and to provide
transparent and efficient trading system to the
investors.
• OTC was founded in1990 under the Companies Act 1956
and got recognized by the Securities Contracts Regulation
Act, 1956 as a stock exchange.
• It has a pattern along the lines of the NASDAQ market and
has introduced several innovations to the Indian capital
markets like:
[Link]-based nationwide trading
[Link] of companies
[Link] making
[Link] less trading
• Exchanges has 115 listings
Technology
• Computerized Screen based trading.
• Trading software modeled on TCAM software.
• Connectivity through Satellite and & Terrestrial.
• Excellent infrastructure/software support from
CMC/TCS/HCL Comnet.
Services
OTC Exchange Of India introduced certain new concepts
in the Indian trading system:
• screen based nationwide trading known as OTCEI
Automated Securities Integrated System or OASIS
• Market Making
• Sponsorship of companies
• Trading done in share certificates
• Weekly Settlement Cycle
• Short Selling
• Demat trading through National Securities Depository
Limited for convenient paperless trading
• Tie-up with National Securities Clearing Corporation Ltd
for Clearing.
Co-Promoters
• Some of the leading financial institutions of India that co-
promote the Over-the-Counter Exchange of India are like:
• Unit Trust of India
• ICICI
• Industrial Development Bank of India
• SBI Capital Markets Limited
• Industrial Finance Corporation of India
• Life Insurance Corporation of India
• Canbank Financial Services Limited
• General Insurance Corporation of India & its subsidiaries
Salient Features
• Ringless and Screen-based Trading
• Sponsorship
• Transparency of Transactions
• Liquidity through Market Making
• Listing of Small and Medium-sized Companies
• Technology
• Nation-wide Listing
Benefits of getting OTCEI Listing for
Companies
The OTCEI offers facilities to the companies having a
issued equity capital of more than Rs. 30 lakhs. The
benefits of listing at the OTCEI are:
• Small and medium closely-held companies can go public.
• The OTCEI encourages entrepreneurship.
• It is more cost-effective to come with an issue of OTCEI.
• Small companies can get listing benefits.
• Easy issue marketing by using the nation-wide OTCEI
dealer network.
• Nation-wide trading by listing at just one exchange.
THANK YOU