PROJECT REPORT

ON

LUDHIANA STOCK
EXCHANGE

SUBMITTED TO:- SUBMITTED BY:-

TRIANING DEPARTMENT SANDEEP KAUR
CODE NO:- A-23
A STOCKEXCHANGE change is an entity which
provides "trading" facilities for stock brokers and traders, to
trade stocks and other securities. Stock exchanges also provide
facilities for the issue and redemption of securities as well as
other financial instruments and capital events including the
payment of income and dividends. The securities traded on a
stock exchange include: shares issued by companies, unit
trusts, derivatives, pooled investment products and bonds. To
be able to trade a security on a certain stock exchange, it has
to be listed there. Usually there is a central location at least for
recordkeeping, but trade is less and less linked to such a
physical place, as modern markets are electronic networks,
which gives them advantages of speed and cost of transactions.
Trade on an exchange is by members only. The initial offering
of stocks and bonds to investors is by definition done in the
primary market and subsequent trading is done in the
secondary market. A stock exchange is often the most
important component of a stock market. Supply and demand
in stock markets are driven by various factors which, as in all
free markets, affect the price of stocks (see stock valuation)

There is usually no compulsion to issue stock via the stock

exchange itself, nor must stock be subsequently traded on the

exchange. Such trading is said to be off exchange or over-the-
counter. This is the usual way that derivatives and bonds are
traded. Increasingly, stock exchanges are part of a global
market for securities

THE FIRST STOCK EXCHANGES

In 11th century France the courtiers de change were
concerned with managing and regulating the debts of
agricultural communities on behalf of the banks. As these men
also traded in debts, they could be called the first brokers.

Some stories suggest that the origins of the term "bourse"

come from the Latin bursa meaning a bag because, in 13th
century Bruges, the sign of a purse (or perhaps three purses),
hung on the front of the house where merchants me

House Ter Beurze inBruges,Belgium.

However, it is more likely that in the late 13th century
commodity traders in Bruges gathered inside the house of a
The Ludhiana Stock Exchange Limited was established in 1981, by Sh. S.P. Oswal of Vardhman Group and Sh. B.M. Munjal of Hero Group
Exchange has grown phenomenally. The Stock Exchange has played an important role in channelising savings into capital for the various
economic, industrial and social development of the States under its jurisdiction.

Ludhiana Stock Exchange is one of the leading Regional Stock Exchange and has been in the forefront of other Stock Exchange in every s
entering into the field of Commodities trading or imparting education to the Public at large by way of starting Certification Programmes

The vision and mission of Stock Exchange is:

"Reaching small investors by providing services relating to Capital Market including Trading, Depository Operations etc and creating
To create educated investors and fulfilling the gap of skilled work force in the domain in Capital Market."

Further, the Exchange has 295 members out of which 162 are registered with National Stock Exchange as Sub-brokers and 121 with Bom

LSE has a strong governance and administration, which encompasses a right balance of Industry Experts with highest level educational
indepth knowledge of Secretarial, Legal and Education & Training.

The Governing Board of our Exchange comprises of eleven members, out of which two are Public Interest Directors, who are eminent p
Committees namely Disciplinary Committee, Arbitration Committee, Defaults Committee and Investor Services Committee. In addition,

LSE has a Code of Conduct in place that governs the elected Board Members and the Senior Management Team. The same is monitored

The composition of the Governing Board is as under:-

Sr.
Name of Director
No.

1 Prof. Padam Parkash Kansal

2 Sh. Joginder Kumar

 3 Dr. Ravinder Nath Sethi

4 Sh. Satish Nagpal

5 Sh. Ashok Kumar

6 Sh. Varun Chhabra

7 Dr. Raj Singh

8 Sh. Ashwani Kumar

9 Sh. T. S. Thapar

10 Sh. Sunil Gupta

11 Sh. Sanjay Anand

STRENGTHS OF LSE GROUP

1. “LSE” brand is popular among masses. The brand image of LSE can be capitalized.

2. We have requisite infrastructure for the Capital Market activities which includes a multi-storeyed, centrally air conditioned building s

3. We have well experienced staff handling operations of Stock Exchange.

4. We have competent Board and professional management.

5. We have much needed networking of sub brokers in the entire region, who are having rich experience in Stock Market operations fo

6. We have more than 40,000 clients spread across Punjab, Himachal Pardesh, Jammu & Kashmir and adjoining areas of Haryana and R

7. The turnover of our subsidiary is the highest amongst all subsidiaries of Regional Stock Exchanges in India.

INFRASTRUCTURE AND ASSETS BASE AT LUDHIANA STOCK EXCHANGE

 The Exchange building is situated at Feroze Gandhi Market, Ferozepur Road, Ludhiana. It is a six storeyed building, which is centrally ai
been leased out to brokers. The first floor also has canteen and banking facilities. Investor Service Centre is also located at first floor wh
Market and around. Basement of the building has air-conditioning plant and Generators to provide air-conditioned environment and tw

The Exchange has also an additional plot of land measuring 2333 sq. yards in the prime location of city, to enhance its infrastructure an

STATUS OF OUR SUBSIDIARY I.E LSE SECURITIES LIMITED

 LISTING OF SECURITIES OF COMPANIES AT LUDHIANA STOCK EXCHANGE

At present, Ludhiana Stock Exchange has 330 listed companies, out of which 214 are regional and 116 are Non-regional. The total listed
abovesaid companies, which are situated in the region comprising of Punjab, Himachal Pardesh, Jammu & Kashmir, Chandigarh.

Despite the fact, the implementation of SEBI (Delisting of Securities) guidelines, 2003 has resulted into the Delisting of good companies
Futuristic Communications Limited etc.

Ludhiana Stock Exchange has facilitated the capital generation for agro based industries as Punjab is a agricultural led economy. It will

INVESTOR RELATED SERVICES

The Exchange has been providing a variety of services for the benefit of investing
public. The services include Investor Service Centres, Investor Protection fund and
Investor Educational Seminars.

(i).Investor Service Centres

The Exchange has set-up Investor Service Centres at various DP branches of its
subsidiary for providing information relating to Capital Market to the general public.
The Centres subscribe to leading economic, financial dailies and periodicals. They also
store the Annual Reports of the companies listed at the Stock Exchange. The Investor
Service Centres are also equipped with a Terminal for providing “live” rates of trading
at NSE and BSE. A large number of the investors visit the centres to utilize the services
being provided by the Exchange.

(ii).Investor Awareness Seminars

 The Exchange has been organizing Investor Awareness Seminars for the benefit of
Investors of the region comprising State of Punjab, Himachal Pradesh, Jammu &
Kashmir, Chandigarh and adjoining areas of Haryana and Rajasthan. This massive
exercise of organizing Investor Awareness Seminars has been launched as a part of
Securities Market Awareness Campaign launched by SEBI in January, 2003. The
Exchange apprises the investors about Do’s and Don’ts to be observed while dealing in
Securities Market. Till date, Exchange has organized more than 200 workshops in the
region mentioned above.

(iii).Website of the Exchange: www.lse.co.in

The Exchange has its own website with the domain name www.lse.co.in. The website
provides valuable information about the latest market commentary, research reports
about companies, daily status of International markets, a separate module for Internet
trading, information about listed companies and brokers and sub-brokers of the
Exchange and its subsidiary. The website also contains many useful links on portfolio
management, investor education, frequently asked questions about various topics
relating to Primary and Secondary Market, information about Mutual Funds, Financials
of the Company including Quarterly Results, Share Prices, Profit and Loss Accounts,
Balance Sheet and Many More. The website also contains daily Technical Charts of
various scrips being traded in BSE and NSE.

EDUCATIONAL INITIATIVES OF EXCHANGE

LSE has carved out its unique position among the Stock Exchanges of the country for the Knowledge Management. It has set up an Educ
Centre for Industry Institute Partnership Programme Panjab University, Chandigarh for the last three year. This programme has widene
all Professionals working in different areas of Capital Market. We have completed series of batches of this programme and we now wan

We have edge over others as far as Education and Training in Financial Services is concerned due to following factors:

a. Directly connected with the Industry as Regional Stock Exchange.

b. Connected with large base of Investors as they use the Stock Exchange as a Trading Platform for their liquidity needs

c. Presence in the region of Punjab, Himachal Pradesh, Jammu & Kashmir and Chandigarh through our branches Network and the area b

d. Already running Certification programmes in Capital Market successfully.

e. Continuously holding Investor Awareness Programmes for Investors & Investor Groups through association with Brokers, Sub-brokers
WH AT IS
STOCK EXCHANGE