A PROJECT REPORT

ON
BUSINESS STUDIES AND MANAGEMENT

NATIONAL STOCK EXCHANGE OF INDIA

Submitted by:

Smile patro

C.H.S.E. Roll No:

Registration No:

SARASWATI JUNIOR VIDYA MANDIR

ANNUAL HIGHER SECONDARY EXAM 2017-18

Signature of the Student: Sign of Internal Examiner:

Date of Submission: Sign of Examiner:

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 ACKNOWLEDGEMENT
I would like to express my gratitude to my teacher Mr. Sudhansu Kumar
Tripathy sir, who gave me the amazing opportunity to do this wonderful business
studies project on the topic national stock exchange of India.

Secondly I would also like to thank my parent and friends who helped me a
lot in finalizing the project within the limited time frame.

PLACE: BERHAMPUR NAME: SMILE PATRO

DATE: SIGNATURE:

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 CERTIFICATE
This is to certify that SMILE PATRO of +2 2nd years Commerce has
successfully completed the Business Studies Project as per the guidelines of +2
CHSE examinations conducted by CHSE Odisha.

It is further certifying that this project is the individual and bonafide work of
the candidate

TEACHER’S SIGN:

TEACHER’S NAME: Mr. Sudhansu Kumar Tripathy

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 CONTENT
S.NO. TOPICS PAGE.NO.
1 Introduction about NSEI 5
2 NSEI: 6-7
I. Meaning
II. Feature

3 I. Functions of NSEI 8-14

II. Role of stock exchange
III. Trading procedure of NSE

4 Listed companies in NSE 15-21

5 I. Conclusion 22-23
II. Bibliography

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INTRODUCTION
National Stock Exchange of India:

The National Stock Exchange of India Limited (NSE) is the leading stock exchange of
India, located in Mumbai . The NSE was established in 1992 as the first demutualized electronic
exchange in the country. NSE was the first exchange in the country to provide a modern, fully
automated screen-based electronic trading system which offered easy trading facility to the
investors spread across the length and breadth of the country. Vikram Limaye is Managing
Director & Chief Executive Officer (MD & CEO) of NSE.

NSE was set up by a group of leading Indian financial institutions at the behest of the
government of India to bring transparency to the Indian capital market. Based on the
recommendations laid out by the government committee, NSE has been established with a
diversified shareholding comprising domestic and global investors. The key domestic investors
include Life Insurance Corporation of India, State Bank of India, IFCI Limited IDFC Limited
and Stock Holding Corporation of India Limited. And the key global investors are Gagil FDI
Limited, GS Strategic Investments Limited, SAIF II SE Investments Mauritius Limited, Aranda
Investments (Mauritius) Pte Limited and PI Opportunities Fund I.[3]

NSE offers trading, clearing and settlement services in equity, equity derivatives, debt
and currency derivatives segments. It is the first exchange in India to introduce electronic trading
facility thus connecting together the investor base of the entire country. NSE has 2500 VSATs
and 3000 leased lines spread over more than 2000 cities across India.

The exchange was incorporated in 1992 as a tax-paying company and was recognized as
a stock exchange in 1993 under the Securities Contracts (Regulation) Act, 1956, when P. V.
Narasimha Rao was the Prime Minister of India and Manmohan Singh was the Finance Minister.
NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The
capital market (equities) segment of the NSE commenced operations in November 1994, while
operations in the derivatives segment commenced in June 2000.

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MEANING:

Stock Exchange (also called Stock Market or Share Market) is one important constituent
of capital market. Stock Exchange is an organized market for the purchase and sale of industrial
and financial security. It is convenient place where trading in securities is conducted in
systematic manner i.e. as per certain rules and regulations.

It performs various functions and offers useful services to investors and borrowing
companies. It is an investment intermediary and facilitates economic and industrial development
of a country.

Stock exchange is an organized market for buying and selling corporate and other
securities. Here, securities are purchased and sold out as per certain well-defined rules and
regulations. It provides a convenient and secured mechanism or platform for transactions in
different securities. Such securities include shares and debentures issued by public companies
which are duly listed at the stock exchange, and bonds and debentures issued by government,
public corporations and municipal and port trust bodies.

Stock exchanges are indispensable for the smooth and orderly functioning of corporate
sector in a free market economy. A stock exchange need not be treated as a place for speculation
or a gambling den. It should act as a place for safe and profitable investment, for this, effective
control on the working of stock exchange is necessary. This will avoid misuse of this platform
for excessive speculation, scams and other undesirable and anti-social activities.

Definitions of Stock Exchange

According to Husband and Dockerary,

"Stock exchanges are privately organized markets which are used to facilitate trading in
securities."

The Indian Securities Contracts (Regulation) Act of 1956, defines Stock Exchange as,

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"An association, organization or body of individuals, whether incorporated or not, established for
the purpose of assisting, regulating and controlling business in buying, selling and dealing in
securities."

FEATURES OF STOCK EXCHANGE:

Characteristics or features of stock exchange are:-

1. Market for securities: Stock exchange is a market, where securities of corporate bodies,
government and semi-government bodies are bought and sold.
2. Deals in second hand securities: It deals with shares, debentures bonds and such
securities already issued by the companies. In short it deals with existing or second hand
securities and hence it is called secondary market.
3. Regulates trade in securities: Stock exchange does not buy or sell any securities on its
own account. It merely provides the necessary infrastructure and facilities for trade in
securities to its members and brokers who trade in securities. It regulates the trade
activities so as to ensure free and fair trade
4. Allows dealings only in listed securities: In fact, stock exchanges maintain an official list
of securities that could be purchased and sold on its floor. Securities which do not figure
in the official list of stock exchange are called unlisted securities. Such unlisted securities
cannot be traded in the stock exchange.
5. Transactions effected only through members: All the transactions in securities at the
stock exchange are affected only through its authorized brokers and members. Outsiders
or direct investors are not allowed to enter in the trading circles of the stock exchange.
Investors have to buy or sell the securities at the stock exchange through the authorized
brokers only.
6. Association of persons: A stock exchange is an association of persons or body of
individuals which may be registered or unregistered.
7. Recognition from Central Government: Stock exchange is an organized market. It
requires recognition from the Central Government.
8. Working as per rule: Buying and selling transactions in securities at the stock exchange
are governed by the rules and regulations of stock exchange as well as SEBI Guidelines.
No deviation from the rules and guidelines is allowed in any case.

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9. Specific location: Stock exchange is a particular market place where authorized brokers
come together daily (i.e. on working days) on the floor of market called trading circles
and conduct trading activities. The prices of different securities traded are shown on
electronic boards. After the working hours market is closed. All the working of stock
exchanges is conducted and controlled through computers and electronic system.

FUNCTIONS OF NATIONAL STOCK EXCHANGE:

1. Continuous and ready market for securities

Stock exchange provides a ready and continuous market for purchase and sale of
securities. It provides ready outlet for buying and selling of securities. Stock exchange also
acts as an outlet/counter for the sale of listed securities.

2. Facilitates evaluation of securities

Stock exchange is useful for the evaluation of industrial securities. This enables investors
to know the true worth of their holdings at any time. Comparison of companies in the same
industry is possible through stock exchange quotations (i.e price list).

3. Encourages capital formation

Stock exchange accelerates the process of capital formation. It creates the habit of saving,
investing and risk taking among the investing class and converts their savings into profitable
investment. It acts as an instrument of capital formation. In addition, it also acts as a channel
for right (safe and profitable) investment.

4. Provides safety and security in dealings

Stock exchange provides safety, security and equity (justice) in dealings as transactions
are conducted as per well defined rules and regulations. The managing body of the exchange
keeps control on the members. Fraudulent practices are also checked effectively. Due to
various rules and regulations, stock exchange functions as the custodian of funds of genuine
investors.

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 5. Regulates company management

Listed companies have to comply with rules and regulations of concerned stock exchange
and work under the vigilance (i.e. supervision) of stock exchange authorities.

6. Facilitates public borrowing

Stock exchange serves as a platform for marketing Government securities. It enables

government to raise public debt easily and quickly.

7. Provides clearing house facility

Stock exchange provides a clearing house facility to members. It settles the transactions
among the members quickly and with ease. The members have to pay or receive only the net
dues (balance amounts) because of the clearing house facility.

8. Facilitates healthy speculation

Healthy speculation, keeps the exchange active. Normal speculation is not dangerous but
provides more business to the exchange. However, excessive speculation is undesirable as it
is dangerous to investors & the growth of corporate sector.

9. Serves as Economic Barometer

Stock exchange indicates the state of health of companies and the national economy. It
acts as a barometer of the economic situation / conditions.

10. Facilitates Bank Lending

Banks easily know the prices of quoted securities. They offer loans to customers against
corporate securities. This gives convenience to the owners of securities

SERVICES GIVEN BY STOCK EXCHANGE TO INVESTORS

1. Provides liquidity to investment: Stock exchange provides liquidity (i.e easy convertibility to
cash) to investment in securities. An investor can sell his securities at any time because of the

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 ready market provided by the stock exchange. Stock exchange provides easy marketability to
corporate securities.
2. Provides collateral value to securities: Stock exchange provides better value to securities as
collateral for a loan. This facilitates borrowing from a bank against securities on easy terms.
3. Offers opportunity to participate in the industrial growth: Stock exchange provides capital for
industrial growth. It enables an investor to participate in the industrial development of the
country.
4. Estimates the worth of securities: Stock exchange provides the facility of knowing the worth
(i.e. true market value) of investment due to quotations (i.e. price list) and reports published
regularly by the exchange. This type of information guides investors as regards their future
investments. They can purchase or sell securities as per the price trends (i.e. latest price value)
in the market.
5. Offers safety in corporate investment: An investor can invest his surplus money (i.e. extra
money) in the listed securities with reasonable safety. The risk in such investment is reduced
considerably due to the supervision of stock exchange authorities on listed companies.
Moreover, securities are listed only when the exchange authorities are satisfied as regards
legality and solvency of company concerned. Such scrutiny (detailed checking) avoids
listing, of securities of unsound companies (i.e companies with bad financial status).

SERVICES GIVEN BY STOCK EXCHANGE TO COMPANIES

1. Widens market for securities: Stock exchange widens the market for the listed securities
and enables the companies to collect capital for promotion, expansion and modernization
purpose. It indirectly provides financial support to companies / corporations.
2. Creates goodwill and reputation: Stock exchange enhances the goodwill and the
reputation of the companies whose securities are listed. Listing acts as a character
certificate given to a company. It gives prestigious position to company.
3. Facilitates fair pricing of listed securities: The market price of listed securities tends to be
slightly higher in relation to earnings and property values.
4. Provides better response from investors: Listed securities get better response from the
investor due to safety and security. Listing of securities is a unique service which stock
exchanges offer to companies. It is a moral support given to stable companies.

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5. Facilitates quick selling of securities: Stock exchange enables companies to sell their
securities easily and quickly. This is natural as investors always prefer to invest money in
listed securities.

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ROLE OF STOCK EXCHANGES IN CAPITAL MARKET OF INDIA

Stock Exchanges play a crucial role in the consolidation of a national economy in general
and in the development of industrial sector in particular. It is the most dynamic and organized
component of capital market. Especially, in developing countries like India, the stock exchanges
play a cardinal role in promoting the level of capital formation through effective mobilization of
savings and ensuring investment safety.

1. Effective Mobilization of savings

Stock exchanges provide organized market for individual as well as institutional

investors. They regulate the trading transactions with proper rules and regulations in order to
ensure investor's protection. This helps to consolidate the confidence of investors and small
savers. Thus, stock exchanges attract small savings especially of large number of investors in the
capital market.

2. Promoting Capital formation

The funds mobilized through capital market are provided to the industries engaged in the
production of various goods and services useful for the society. This leads to capital formation
and development of national assets. The savings mobilized are channelized into appropriate
avenues of investment.

3. Wider Avenues of investment

Stock exchanges provide a wider avenue for the investment to the people and
organizations with investible surplus. Companies from diverse industries like Information
Technology, Steel, Chemicals, Fuels and Petroleum, Cement, Fertilizers, etc. offer various kinds
of equity and debt securities to the investors. Online trading facility has brought the stock
exchange at the doorsteps of investors through computer network. Diverse type of securities is
made available in the stock exchanges to suit the varying objectives and notions of different
classes of investor. Necessary information from stock exchanges available from different sources
guides the investors in the effective management of their investment portfolios.

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4. Liquidity of investment

Stock exchanges provide liquidity of investment to the investors. Investors can sell out
any of their investments in securities at any time during trading days and trading hours on stock
exchanges. Thus, stock exchanges provide liquidity of investment. The online trading and online
settlement of demat securities facilitates the investors to sell out their investments and realize the
proceeds within a day or two. Even investors can switch over their investment from one security
to another according to the changing scenario of capital market.

5. Investment priorities

Stock exchanges facilitate the investors to decide his investment priorities by providing
him the basket of different kinds of securities of different industries and companies. He can sell
stock of one company and buy a stock of another company through stock exchange whenever he
wants. He can manage his investment portfolio to maximize his wealth.

6. Investment safety

Stock exchanges through their by-laws, Securities and Exchange Board of India (SEBI)
guidelines, transparent procedures try to provide safety to the investment in industrial securities.
Government has established the National Stock Exchange (NSE) and Over The Counter
Exchange of India (OTCEI) for investors' safety. Exchange authorities try to curb speculative
practices and minimize the risk for common investor to preserve his confidence.

7. Wide Marketability to Securities

Online price quoting system and online buying and selling facility have changed the
nature and working of stock exchanges. Formerly, the dealings on stock exchanges were
restricted to its head quarters. The investors across the country were absolutely in dark about the
price fluctuations on stock exchanges due to the lack of information. But today due to Internet,
on line quoting facility is available at the computers of investors. As a result, they can keep track
of price fluctuations taking place on stock exchange every second during the working hours.
Certain T.V. Channels like CNBC are fully devoted to stock market information and corporate
news. Demat facility has revolutionized the procedure of transfer of securities and facilitated
marketing.
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8. Financial resources for public and private sectors

Stock Exchanges make available the financial resources available to the industries in
public and private sector through various kinds of securities. Due to the assurance of liquidity,
marketing support, investment safety assured through stock exchanges, the public issues of
securities by these industries receive strong public response (resulting in over subscription of
issue).

9. Funds for Development Purpose

Stock exchanges enable the government to mobilize the funds for public utilities and
public undertakings which take up the developmental activities like power projects, shipping,
railways, telecommunication, dams & roads constructions, etc. Stock exchanges provide
liquidity, marketability, price continuity and constant evaluation of government securities.

10. Indicator of Industrial Development

Stock exchanges are the symbolic indicators of industrial development of a nation.

Productivity, efficiency, economic-status, prospects of each industry and every unit in an
industry is reflected through the price fluctuation of industrial securities on stock exchanges.
Stock exchange Sensex and price fluctuations of securities of various companies tell the entire
story of changes in industrial sector.

TRADING PROCEDURE ON A STOCK EXCHANGE

1. Selection of a broker:

The buying and selling of securities can only be done through SEBI registered brokers
who are members of the Stock Exchange. The broker can be an individual, partnership firms or
corporate bodies. So the first step is to select a broker who will buy/sell securities on behalf of
the investor or speculator.

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2. Opening demat account with depositary:

Demat account refer to an account which an Indian citizen must open with depositary
participant to trade in listed securiti9es in electronic form. Second step in trading procedure
is to open a demat account.

The security is held in the electronic form by a depositary. Depositary is an organization

which holds securities (e.g. shares, debentures, bonds, mutual funds, etc.) at present in India
there are two depositaries.

3. Placing the order:

After opening the demat account, the investor can place order. The order can be
placed to the broker either personally or through phone, email, etc.

Investor must place the order very clearly specifying the range of price at which
securities can be bought or sold.

4. Executing the order:

As per the instructions of the investor, the execute the order i.e. he buys or sells
the securities. Broker prepares a contract note for the order executed. The contract note
contains the name and the price of the securities, name of parties and brokerage charged
by him. Contract note is signed by the broker.

5. Settlement:

This means actual transfer of securities. This is the last stage in the trading of
securities done by the broker on behalf of their client. There can be two types of
settlement.

 On the spot settlement:

It means settlement is done immediately on spot settlement follows. T +2

rolling settlement. This means any trade taking place on Monday gates settled by
Wednesday.

 Forward settlement:

It means settlement will take place on some future date. It can be T +5 or

T +7, etc. all trading in stock exchanges takes place between 9.55 am and 3.30
pm. Monday to Friday.

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25 LISTED COMPANIES IN STOCK EXCHANGE OF INDIA

1. AXIS BANK
2. BHARTI AIRTEL
3. BAJAJ AUTO
4. CIPLA
5. COAL INDIA
6. HDFC BANK
7. HERO MOTOCORP
8. HINDUSTAN UNILEVER
9. HOUSING DEVELOPMENT FINANCE CORPORATION
10. ITC
11. ICICI BANK
12. INFOSYS
13. KOTAK MAHINDRA BANK
14. MAHINDRA & MAHINDRA
15. MARUTI SUZUKI
16. NTPC
17. OIL AND NATURAL GAS CORPORATION
18. POWER GRID CORPORATION OF INDIA
19. RELIANCE INDUSTRY
20. STATE BANK OF INDIA
21. SUN PHARMACEUTICAL
22. TATA CONSULTANCY SERVICES
23. TATA MOTORS
24. TATA STEEL
25. WIPRO

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 LISTING AND SHAREHOLDING
AXIS BANK
Axis Banks's equity shares are listed on the Bombay Stock
Exchange and National Stock Exchange of India.[19][92] The company's
global depository receipts (GDRs) are listed on the London Stock
Exchange.

BHARTI AIRTEL

In 1999, Bharti Enterprises acquired control of JT

Holdings, and extended cellular operations to Karnataka and
Andhra Pradesh. In 2000, Bharti acquired control of Skycell
Communications, in Chennai. In 2001, the company acquired
control of Spice Cell in Calcutta. Bharti Enterprises went public in
2002, and the company was listed on Bombay Stock Exchange
and National Stock Exchange of India. In 2003, the cellular phone
operations were re-branded under the single Airtel brand. In 2004, Bharti acquired control
of Hexacom and entered Rajasthan. In 2005, Bharti extended its network to Andaman and
Nicobar. This expansion allowed it to offer voice services all across India.

BAJAJ AUTO

Bajaj Auto's equity shares are listed on Bombay Stock

Exchange where it is a constituent of the BSE SENSEX index, and
the National Stock Exchange of India where it is a constituent of
the CNX Nifty

CIPLA

The equity shares of Cipla are listed on the Bombay

Stock Exchange, where it is a constituent of the BSE SENSEX
index, and the National Stock Exchange of India, where it is a
constituent of the CNX Nifty. Its Global Depository Receipts (GDRs) are listed on the
Luxembourg Stock Exchange.

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COAL INDIA

Listing: CIL's equity shares are listed on Bombay Stock

Exchange where it is a constituent of the BSE SENSEX index,Scripwise
Weightages in S&P BSE SENSEX SE India 31 Aug 2013 and the
National Stock Exchange of India where it is a constituent of the S&P
CNX Nifty.

HDFC BANK
The equity shares of HDFC Bank are listed on
the Bombay Stock Exchange and the National Stock Exchange
of India. Its American Depository Shares are listed
on NYSE and the global depository receipt are listed on
the Luxembourg Stock Exchange where two GDRs represent
one equity share of HDFC Bank.

HERO MOTOCORP

The equity shares of Hero Motocorp are listeNational Stock

Exchange of India, where it is a constituent of the S&P CNX
Nifty.

HINDUSTAN UNILEVER

The equity shares of Hindustan unilever

are listed on the Bombay Stock Exchange,  where it is a constituent of
the BSE SENSEX index, and the National Stock Exchange of
India, where it is a constituent of the S&P CNX Nifty

HOUSING DEVELOPMENT FINANCE CORPORATION

Listing: The equity shares of HDFC are listed

on Bombay Stock Exchange where it is a constituent of the BSE
SENSEX index, and the National Stock Exchange of
India where it is a constituent of the S&P CNX Nifty.

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ITC

ITC's equity shares are listed on Bombay Stock

Exchange, National Stock Exchange of India and Calcutta
Stock Exchange. The company's Global Depository
Receipts (GDRs) are listed on the Luxembourg Stock
Exchange.

ICICI BANK

The National Stock Exchange was promoted by India's

leading financial institutions (including ICICI Ltd.) in 1992
on behalf of the Government of India with the objective of
establishing a nationwide trading facility for equities, debt
instruments and hybrids, by ensuring equal access to investors all over the country
through an appropriate communication network.
INFOSYS
In India, shares of Infosys are listed at BSE where it is
included in BSE SENSEX and NSE where it is included
in CNX NIFTY. Its shares are listed by way of American
Depositary Receipts at NYSE.

KOTAK MAHINDRA BANK

Kotak mahindra bank equity

shares are listed on Bombay Stock Exchange, National Stock
Exchange of India.

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MAHINDRA & MAHINDRA

Mahindra and Mahindra’s equity shares

are listed on Bombay Stock Exchange, National Stock Exchange
of India.

MARUTI SUZUKI

The equity shares of Maruti Suzuki are listed

on Bombay Stock Exchange where it is a constituent of
the BSE SENSEX index, and the National Stock
Exchange of India where it is a constituent of the S&P
CNX Nifty.

NTPC

 NTPC got listed on BSE and

NSE on 5 November 2004. Against the issue price of
INR 62 per share, it closed the first day of listing with
INR 75.55 per share. On the day of listing, it become the
third largest company in India in terms of market capitalisation.

OIL AND NATURAL GAS CORPORATION

The equity shares of ONGC are listed on

the Bombay Stock Exchange, where it is a constituent of
the BSE SENSEX index, and the National Stock
Exchange of India, where it is a constituent of the S&P
CNX Nifty.

POWER GRID CORPORATION OF INDIA

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 POWERGRID is listed on both the BSE and the NSE. As of 30 September 2010,
there were 792,096 equity shareholders holders in POWERGRID. Initially,
POWERGRID managed transmission assets owned by NTPC, NHPC Limited ("NHPC")
and North-Eastern Electric Power Corporation Limited.

RELIANCE INDUSTRY

The company's equity shares are listed on the National Stock

Exchange of India Limited (NSE) and the BSELimited. The Global
Depository Receipts (GDRs) issued by the Company are listed
on Luxembourg Stock Exchange.

STATE BANK OF INDIA

As on 31 March 2017, Government of India held

around 61.23% equity shares in SBI. The Life Insurance
Corporation of India, itself state-owned, is the largest non-
promoter shareholder in the company with 8.82%
shareholding.

SUN PHARMACEUTICAL

Sun Pharma was listed on the stock exchange in 1994

in an issue oversubscribed 55 times. The founding family
continues to hold a majority stake in the company. Today Sun
Pharma is the second largest and the most profitable
pharmaceutical company in India, as well as the largest
pharmaceutical company by market capitalization on the Indian exchanges.

TATA CONSULTANCY SERVICES

The equity shares of TCS are listed on the Bombay

Stock Exchange, where it is a constituent of the BSE
SENSEX index, and the National Stock Exchange of
India, where it is a constituent of the S&P CNX Nifty.

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TATA MOTORS

Tata Motors is listed on the (BSE) Bombay Stock

Exchange, where it is a constituent of the BSE
SENSEX index, the National Stock Exchange of India, and
the New York Stock Exchange

TATA STEEL

The equity shares of Tata Steel are listed on

the Bombay Stock Exchange, where it is a constituent of
the BSE SENSEX index, and the National Stock Exchange
of India, where it is a constituent of the S&P CNX Nifty.

WIPRO

Wipro's equity shares are listed on Bombay

Stock Exchange where it is a constituent of the BSE
SENSEX index,[78] and the National Stock Exchange
of India where it is a constituent of the S&P CNX
Nifty.[79] The American Depositary Shares of the
company are listed at the NYSEsince October 2000.[80]

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 BIBLIOGRAPHY

BOOKS:

1. NCERT-TEXT BOOK IN BUSINESS STUDIES AND MANAGEMENT

2. FINANCIAL MARKETING AND MANAGEMENT

NEWS PAPER:

1. THE TIMES OF INDIA

2. HINDUSTAN TIME

INTERNET:

1. GOOGLE.COM
2. WWW.NSE.IN

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