NSEI

National Stock Of India

NSEI was established in the form of traditional
competitor stock exchange. It is an exchange
where business is carried on the medium and
large sized companies and the govt. securities.
This stock exchange is fully computerized.
 The NSEI was established in the form of public private
ltd. Company in nov. 1992. Its Promoter are like this
 IDBI
 IFCI
 ICICI
 LIC
 GIC
 The SBI capital market Ltd.
 The stock holding corporation of ltd.
 The infrastructure Leasing and Financial
ServiceLimited.
 Features of NSEI
 Model Exchange
 Floor less
 Two Segment
 Wholesale Debt market (WDM)
 Capital Market Segment
 Easy Access
 Same Price
 Order Driven System
 Purpose of NSEI
 Single Stock Exchange at National Level
 Increasing liquidity
 Transparency in Transactions
 Enabling Shorter Settlement Cycle
 Meeting International Bench Mark.
Trading Process on NSEI
Placing the order

Conveying the message to computer

Starting of Matching Process

Accepting the order

Delivery of Payment
OTECI(Over the counter Exchange of India)

 The OTECI is a completely computerized and

specially ring less stock exchange which is
different from the traditional stock exchange
and on which the buying and selling of
securities is absolutely transparent and moves
at a great speeda
 The OTCEI was established under section 25
of Companies Act , 1996 in October 1990.

 UTI
 ICICI
 IDBI
 IFCI
 LIC
 GIC
 The SBI Capital Market Ltd.
 The Canbank Financial Service Ltd.
 Features of OTCEI

 Ringless Trading

 Nation-wide Listing

 Exclusive List of Companies

 Fully Computerized

 Easy Access
 Purpose of OTCEI
 The traditional share market have completely failed in maintaining the
liquidity of securities of the small companies. In these markets, the
transactions in some selected securities are made and the remaining
securities only remain listed. More over, there are many other Factors
responsible for the lack of confidence on the part of the investors. They
Include:
 Lack of transparency.
 No immediate solution of the problem of the investors.
 Delay in the settlement of the transactions.
 Share market is out of reach of the ordinary investor.
 On the basis of these facts, It can be said that the object of the
establishment of the OTCEI may be described as under:

 Liquidity

 Transparency

 Investors’ Grievances

 Access

 Quick Settlement

 Listing Small Companies

Trading Process on OTCEI
Initial Allotment

Buying in the secondary market

Selling in the secondary market

 Difference between NSEI & OTCEI
Basis of dissimilarities NSEI
1. Year of Establishment November 1992
2. Paid up Capital Paid up capital Rs. 3 caror
and more
3. Securities Traded Equity Shares, Debentures ,
Treasury Bills, Commercial
paper, etc.
4. Duration of Settlement Provision of payment with
in 15 days of transaction.
5. Objectives Establishing single stock
exchange at national level.
OTCEI
October 1990
Paid up capital Rs. 30 lack
and more
Equity Shares, Debentures
etc.
Provision of payment with
in 7 days of transaction.
Providing listing facility to
small companies.
 Securities and Exchange Board of The india
(SEBI)

 Share market is the foundation of the economic condition of a

country. Through its medium, the people wishing to invest in
securities get good chance. It is very important to control the
share market in order to strengthen the economic condition of
country and protect the rights of the investors. Keeping this
thing in view, the Capital Issue (control) Act,1947 was enforced.
But the Act failed to control fully the share market. In order to
remove its drawbacks, Securities and Exchange Board of India –
(SEBI) was established in 1992.
 Objective of SEBI

 Regulation of Stock Exchanges.

 Protection to the Investors.

 Checking the Insider Trading.

 Control over Brokers.

 Function of SBI

 Protective Function.

 Regulatory Function.

 Development Function.
 Protective Function.
 To check unfair trade practice( such as, to supply misleading
statements to cheat the investors) in connection with security
market.
 To check insiders trading in securities.[insiders trading
meaning the buying and selling of securities by those persons
(Director, Promoters , etc.) who have some secret information
about the company and who wish to take the advantage of
this secret information.]
 To provide education relating to dealing in securities to the
investors.
 To promote code of conduct relating to security market.
 Regulatory Function.

 To regulate the business being done in the share

market.
 To register brokers and regulate the credit rating
agency.
 To register brokers, sub-brokers , transfer agents,
merchant banks, underwriters etc.
 To register and regulate the venture capital fund.
 To register and regulate collective investment scheme
like the mutual fund.
 To carry out audit of the share market.
 Development Function.

 To impart training to the intermediaries. ( Inter-mediaries

include share brokers, Sub-brokers Transfer Agent, Issue
Registers, Merchant Bankers, Portfolio Managers, etc.)
 To encourage self-regulating organizations.
 To carry on research work.
 To publish different kinds of information for the convenience
of all parties operating in the capital market.