STOCK EXCHANGE

EASY WAY TO EARN MONEY,

EASY WAY TO LOOSE MONEY
 WHAT IS STOCK EXCHANGE?

The securities regulation act of 1956 defined stock

exchange as “an association , organization , or
a individual which is established for for the
purpose of assisting , regulating , and
controlling business in buying ,selling and
dealing in securities.”
 FEATURES OF STOCK EXCHANGE
 It is an organized market
 It is a securities market
 It is an important constituent of capital market i.e., market
for long-term finance
 It is a voluntary association of persons desirous of dealing in
securities
 Stock exchange is a voluntary association, its membership is
not open to everybody
 In a stock exchange, only the members can deal in i.e., buy
& sell securities
 The members of a stock exchange can buy and sell
securities either as brokers for & on behalf of their clients
 The dealings in a stock exchange are under certain accepted
code of conduct i.e., rules and regulations
 IMPORTANT FUNCTION OF STOCK EXCHANGE

 Provide central and convenient meeting places for sellers and

buyer of securities
 Increase the marketability and liquidity of securities
 Contribute to stability of prices of securities
 Equalization of price of securities
 Smoothen price movement
 Help the investors to know the worth of their holdings
 Promote the habit of saving and investment
 Help capital formation
 Help companies and government to raise funds from the
investors
 Provide forecasting service
 HISTORY OF STOCK EXCHANGE

The stock exchange was established by “East India

company” in 18th century . In India it was established
in 1850 with 22 stock brokers opposite to town hall
Bombay .This stock exchange is known as oldest stock
exchange of Asia.
 Initial members who are
still running their business
in stock exchange are
D.S.Prabhudas &company
Jamnadas Morarjee
Champak lal Devidas
Brymohan Laxminarayan
 BROKER AND JOBBER
 BROKER: He is one acts as a intermidiary on
behalf of others. A broker in a stock exchange ,is
a commission agent who transacts business in
securities on behalf of non members.
 JOBBER: He is not allowed to deal with the
public directly .He deals with brokers who are
engaged with the investors . Thus, the securities
is bought by the jobber from members and sells
to members who are operating on the stock
exchange as broker.
 DIFFERENCES BETWEEN A JOBBER AND A BROKER
JOBBER
 A jobber is an independent
dealer in securities, purchasing
or selling securities on his own
account
 A jobber deals only with the
brokers ,does not deal with the
general public
 A jobber earns profit from his
operations i.e., buying and
selling activities
 Each jobber specializes in certain
group of securities
BROKER
 A broker deals with the jobber
on behalf of his clients. in other
words, a broker is a middleman
between a jobber and clients
 A broker is merely an agent,
buying or selling securities on
behalf of his clients
 A broker gets only commission
for his dealings
 The broker deals in all types of
securities
SPECULATION AND SPECULATOR
 SPECULATION : It is the transaction of members to
buy or sell securities on stock exchange with a view to
make profits to anticipated raise or fall in price of
securities.
 SPECULATOR : The dealer in stock exchange who
indulge in speculation are called speculator . They do not
take delivery of securities purchased or sold by them , but
only pay or rescue the difference between the purchase
price and sale price . The different types of speculators are
BULL
BEAR
STAG
LAME DUCK
 BULL {TEJIWALA}

He is speculator who expects the future raise in price of

securities he buys the securities to sell them at future date
at the higher price.
He is called as bull because his activities resembles as a bull ,
as the bull tends to throw its victims up in the air through its
horns. In simple the bull speculator tries to raise the price of
securities by placing a big purchase orders.
BEAR {MANDIWALA}

He is speculator who
expects future fall in prices
, he does an agreement to
sell securities at future
date at the present market
rate .
He is called as bear because
his altitude resembles with
bear , as the bear tends to
stamp its victims down to
earth through its paws . In
simple the bear speculator
forces of prices of
securities to fall through
his activities.
STAG {DEER}
He operates in new issue
of market . He is just like a
bull speculator . He applies
large number of shares in
the issue market only by
paying , application money
, allotment money. He is
not a genuine investor
because , he sells the
alloted securities at the
premium and makes profit.
In simple he is cautious in
his dealings . He creates an
artificial rise in prices of
new shares and makes
profits.
LAME DUCK
He is speculator when the
bear operator finds it
difficult to deliver the
securities to the consumer
on a particular day as
agreed upon , he struggles
as a lame duck in fullfilling
his commitment . This
happens when the prices
do not fall as expected by
the bear and the other
party is not willing to
postpone the settlement to
the next period.
 Largest stock exchanges
IN THE WORLD
 LONDON STOCK EXCHANGE
 NEW YORK STOCK EXCHANGE
 SHANHAI STOCK EXCHANGE
 AUSTRALIA STOCK EXCHANGE
 TOKYO STOCK EXCHANGE
 HONG KONG STOCK
EXCHANGE
 TORONTO STOCK EXCHANGE
 DEUTSCHE BORSE
 BM&F BOVESPA
 NASDAQ OMX STOCK
EXCHANGE
IN INDIA
 NATIONAL STOCK EXCHANGE
 BOMBAY STOCK EXCHANGE
 CALCUTTA STOCK EXCHANGE
 COCHIN STOCK EXCHANGE
 MULTI COMMODITY
EXCHANGE
 DERIVATIVES EXCHANGE
 OTC EXCHANGE
 PUNE STOCK EXCHANGE
 INTERCONNECTS EXCHANGE
 LONDON STOCK EXCHANGE
It was the first stock exchange established by
east India company in 18th century in London.
The top gainer of LONDON STOCK EXCHANGE
is “Blue chip shares”.
BOMBAY STOCK EXCHANGE

It is oldest and first stock

exchange of India
established in the year
1875. First it was started
under baniyan tree
opposite to town hall of
Bombay over 22 stock
brokers. The top gainer in
BSE is 100 companies in
that GMR infra is first
 Board of Directors

• Non-Executive Chairman :
Mr. S. Ramadorai
Public Interest Director
Vice Chairman
Tata Consultancy Services Ltd
 About
• Original named as “The Native Share & Stock
Brokers Association”
• Established : 1875
• Location : Mumbai
• work on bid-ask quote
• In 1995 its fully computerized system (screen-
based system)
• In 1996 SEBI permitted BSE to extend its BOLT
network outside of mumbai.
• About 5,092 listed companies
• total market capitalization of around 59 trillion Rupees
• currently ranking around number four in terms of
annual transactions.
• SENSEX is major index of BSE
• SENSEX comprise 30 scripts from different sectors.
• Other important indices originating from the Bombay
exchange include the BSE 100, BSE 500, BSEPSU,
BSEMIDCAP, BSESMLCAP, and BSEBANKEX.
 BSE Hours of Operation

• Beginning of the Day Session: 8:00 - 9:00

• Login Session: 9:00 - 9:15
• Trading Session: 9:15 - 15:30
• Position Transfer Session: 15:30 - 15:50
• Closing Session: 15:50 - 16:05
• Option Exercise Session: 16:05 - 16:35
• Margin Session: 16:35 - 16:50
• Query Session: 16:50 - 17:35
• End of Day Session:17:35
 NATIONAL STOCK
EXCHANGE OF INDIA(NSE
OR NSEI)
The NSE of India is the leading stock
exchange of India, covering 370 cities and
towns in the
country. It was established in1994 as a TAX
company. It was established by 21 leading
financial institutions and banks like the
IDBI,ICICI,IFCI,LIC,SBI,etc.

Features of NSEI
Nation wide coverage i.e., investors from all over country
Ringless i.e., it has no ring or trading floor
Screen-based trading i.e., trading in this stock exchange is done electronically.
Transparency,i.e.,the use of computer screen for trading makes the dealings in
securities transparent.
Professionalization in trading, i.e., it brings professionalism in its functions
 Board of Directors

• Mr. Ravi Narain

National Stock Exchange of India Limited
Managing Director
• Ms. Chitra Ramkrishna
National Stock Exchange of India Limited
Joint Managing Director
[Shareholder Director ]
 Type Stock Exchange
 Location Mumbai, India
 Founded 1992
 Owner National Stock Exchange of
India Limited
Currency INR
 No. of listings More than 2000
Website www.nse-india.com
 INTRODUCTION
 The national stock exchange of India was promoted by
leading financial institution at the order of government
of India and was incorporated in November 1992 as a
tax paying company.
 In April 1993,it was recognized as a stock exchange
under the securities contract(Regulation) Act,
1956…NSE commenced operation in June 1994
 The capital market segment of the NSE commenced
operation in November 1994 ,while operation in the
derivatives segment in June 2000
 PURPOSE
• Establishing a National wide trading facility for all
type of securities.
• Ensuring equal access to investor all over the
country through an appropriate communication
network.
• Providing for a Fair, efficient and transparent
securities market using electronic Trading system.
• Enabling shorter Settlement cycles.
• Meeting up with international benchmark and
standard
 Trading schedule
• Trading takes place on all days of the week except
Saturdays & Sundays. The market timings are as follows:
(1) Pre-open session (Regular)
Order entry & modification Open: 09:00 hrs
Order entry & modification Close: 09:08 hrs*
• *with random closure in last one minute. Pre-open order
matching starts immediately after close of pre-open order
entry.
(2) Pre-open Session for IPO and Relist Securities
Order entry & modification Open: 09:00 hrs
Order entry & modification Close: 09:45 hrs*
• *with random closure in last one minute. Pre-open order
matching starts immediately after close of pre-open order
entry.
(3) Regular trading session
Normal Market Open: 09:15 hrs
Normal Market Close: 15:30 hrs
• Block deal session is held between 09:15 hrs and
09:50 hrs.
(4) The Closing Session is held between 15.40 hrs
and 16.00 hrs.
• The Exchange may also extend, advance or
reduce trading hours when its deems fit and
necessary.
 ADVANTAGES
WIDER ACCESSIBILITY
SCREEN BASED TRADING
NON-DISCLOSURE OF THE TRADING MEMBERS
IDENTITY
TRANSPARENT TRANSACTION
MATCHING OF ORDERS
TRADING IN DEMATERIALISED FORM
• Raising capital for businesses
• Mobilizing savings for investment
• Facilitating company growth
• Profit sharing
• Corporate governance
• indicator of the economy
 Mile Stones

• November 1992 Incorporation

• April 1993 Recognition as a stock exchange
• October 1995 Became largest stock exchange in
the country
• April 1996 Launch of S&P CNX Nifty
• November 1997 Best IT Usage award by
Computer Society of India.
• May 1998 Launch of NSE's Web-site:
www.nse.co.in
• February 2000 Commencement of Internet
Trading
• June 2000 Commencement of Derivatives Trading
(Index Futures)
• January 2002 Launch of Exchange Traded Funds
(ETFs)
• June 2007 NSE launches derivatives on Nifty
Junior & CNX 100.
• August 2008 Launch of Currency Derivatives
• November 2009 Launch of Mutual Fund Service
System
• February 2010 Launch of Currency Futures on
additional currency pairs
 Indices

NSE has launched several stock indices, including:

• S&P CNX Nifty(Standard & Poor's CRISIL NSE
Index)
• CNX Nifty Junior
• CNX 100 (= S&P CNX Nifty + CNX Nifty Junior)
• S&P CNX 500 (= CNX 100 + 400 major players
across 72 industries)
• CNX Midcap (introduced on 18 July 2005 replacing
CNX Midcap 200)
 Markets
Currently, NSE has the following major segments of the capital
market:
• Equity
• Futures and Options
• Retail Debt Market
• Wholesale Debt Market
• Currency futures
• MUTUAL FUND
• STOCKS LENDING & BORROWING
 Eligibility Criteria for Listing

IPOs by Companies

1. The paid up equity capital of the applicant shall

not be less than Rs. 10 crores and the
capitalisation of the applicant’s equity shall not
be less than Rs. 25 crores
2. The Issuer shall have adhered to conditions
precedent to listing as emerging from inter-
aliance from Securities Contracts (Regulations)
Act 1956, Companies Act 1956, Securities and
Exchange Board of India Act 1992.
3. At least three years track record.
 Certifications

• NSE also conducts online

examination and awards certification,
under its programmes of NSE's
Certification in Financial Markets
(NCFM). Currently, certifications are
available in 19 modules, covering
different sectors of financial and
capital markets. Branches of the
NSE are located throughout India.
 OVER-THE-COUNTER EXCHANGE
OF INDIA(OTCEI)
The OTCEI is a national,ringless and computerized stock
exchange. It was established in october,1990.it started its
operation in september,1992.

Features of OTCEI
1. It is a nation-wide stock exchange. Its operational areas cover entire India.
2. It is a ringless stock exchange. The trading ring(i.e., trading place)commonly found in a
traditional stock exchange is not found in the OTCEI.
3. It is a computerized stock exchange
Advantages of OTCEI
1. It helps the investors to have easy and direct access to the stock exchange
2. It helps investors to get fair prices for their securities
3. It provide safety to the investors
4. To provide computerized trading system
5. To provide investors a convenient,effcient and transparent mode of
investment
 SECURITIES AND EXCHANGE
BOARD OF INDIA(SEBI)
The SEBI was constituted on 12th April,1988 under a
resolution of the Government of India. On 31st
january,1992,it was made a statutory body by the
Securities and Exchange board of India Act,1992.
The Companies (Amendment) Act,2000 has given certain
powers to SEBI as regards the issues and transfer of
securities and non-payment of dividend

Function Of SEBI
Regulating the business in stock exchange and any other securities
markets.
Promoting and regulating self-regulatory organization.
Registering and regulating the work of collective investment
scheme,incluing mutual funds.
Prohibiting fraudulent and unfair trade practices relating to
securities market.
Promoting education, and training of intermediaries of securities
market
 Power of SEBI
Power to approve the bye-laws of stock exchange
Power to inspect the books of accounts
Power to grant license to any person for the purpose of dealing in certain areas.
Power to delegate powers exercisable by it.
Power to try directly the foliation of certain provision of the company Act
 How to see the value of
shares in stock exchange
SENSEX is an indicator to checkout in
BSE
NIFTY is an indicator to checkout in NSE
Latest news of BSE and NSE
Most profitable company in BSE is GMR Infra
Most profitable company in NSE will be
RELIANCE and ICICI
During last three months nearly only 26% of
profit is earned by our stock exchanges the
working hours will be
From 9:30 to 3:30 from Monday to Friday
 The Daily graph of the
companies will be showed in
following manner
How stock exchanges get
money
They get their money by listing fees
paid by the corporation to have their
company traded
 HOW TO DEAL AND INVEST IN
STOCK EXCHANGE
In order to deal with a securities one as to have an
account called Demat a/c or Trading a/c. It is just like a
bank account. Same procedure of opening the bank
account is followed to open the a/c. But all the banks
does not give this facility of opening the account , only
few banks provide this facility. After demat a/c or
Trading a/s is opened then the securities is bought and
sold. The banks which gives facility of demat a/c in
India is
 ICICI Bank
 Citi Bank
 Bank of Baroda
HAPPY INVESTMENT WITH
LOTS OF PROFITS
END
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