Comparative Study of NSE & BSE

A COMPARATIVE STUDY OF NSE AND BSE &
SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES

(PG BLOCK)KOLAR Page 1

1. INTRODUCTION
1.1.INTRODUCTION TO FINANCE
Finance is one of the major elements, which activates the overall growth of economy. Finance is
the lifeblood of economic activities. The study of business finance is concerned with the
provision, flow and use of finance within a business organization and with demand for, and
supply of, funds for business within the economy as a whole.
This would enable the country to have supply of funds to the industry and agriculture
continuously. Economics problems of the nation can be solved comfortably through which self-
sufficiency can be attained. Thus the financial system plays a significant role in the building up
the economy. Every enterprise, whether big, medium or small needs finance to carry on its
operations to achieve its targets. Hence, finance is so indispensable today that it is rightly said it
is life blood of an enterprise. Without adequate finance, no enterprise can possibly accomplish its
objectives. The function of finance has been traditionally classified into two type's namely
private finance and public finance. It deals with the requirements, receipts and disbursement of
funds in government institutions like state, local, self-government.
Private finance is concerned with the requirement, receipts and disbursement of funds in case of
an individual, a profit seeking business organization and a non-profit organization. During the
pre-independence period, financial constraints have hampered the rapid development of
industry in the country.
1.2.DEFINITION OF FINANCE
According to Howard and Upton, "finance may be defined as that administrative area or set of
administrative functions in an organization which relates with the arrangement of each and credit
so that the organization may have the means to carry out the objectives as satisfactorily as
possible. According to Anthony, Financial statements essentially, are interim reports, presented
annually and reflect a division of the life of an enterprise into more or less arbitrary accounting


period more frequently a year. The day-to-day transactions of a business are recorded in
different subsidiary books.
These transactions are reported in various ledgers and their balances are taken out at the end of
the financial period. The aim of maintaining various records is to determine the profitability of
the enterprise from the operations of the business and the financial position.
1.3.BUSINESS FINANCE
The term 'business finance is very comprehensive, as it implies finances of business activities.
The term, 'business' can be categorized into three groups: commerce, industry and service. It is a
process of rising, providing and managing of all the money to be used in connection with
business activities.

THE MAIN FEATURES OF FINANCE


1. Investment Opportunities
In Finance, Investment can be explained as a utilization of money for profit or returns.
Investment can be done by:-
Creating physical assets with the money (such as development of land, acquiring commercial
assets, etc.),
Carrying on business activities (like manufacturing, trading, etc.), and
Acquiring financial securities (such as shares, bonds, units of mutual funds, etc.).
Investment opportunities are commitments of monetary resources at different times with an
expectation of economic returns in the future.

2. Profitable Opportunities


In Finance, Profitable opportunities are considered as an important aspiration (goal).
Profitable opportunities signify that the firm must utilize its available resources most efficiently
under the conditions of cut-throat competitive markets.
Profitable opportunities shall be a vision. It shall not result in short-term profits at the expense of
long-term gains.
For example, business carried on with non-compliance of law, unethical ways of acquiring the
business, etc., usually may result in huge short-term profits but may also hinder the smooth
possibility of long-term gains and survival of business in the future.

3.Optimal Mix of Funds
Finance is concerned with the best optimal mix of funds in order to obtain the desired and
determined results respectively.
Primarily, funds are of two types, namely,
Owned funds (Promoter Contribution, Equity shares, etc.), and
Borrowed funds (Bank Loan, Bank overdraft, Debentures, etc).
The composition of funds should be such that it shall not result in loss of profits to the
Entrepreneurs (Promoters) and must recover the cost of business units effectively and efficiently.
4. System of Internal Controls
Finance is concerned with internal controls maintained in the organization or workplace. Internal
controls are set of rules and regulations framed at the inception stage of the organization, and
they are altered as per the requirement of its business.
However, these rules and regulations are monitored at various intervals to accomplish the same
which have been consistently followed.


5. Future Decision Making
Finance is concerned with the future decision of the organization. A "Good Finance is an
indicator of growth and good returns. This is possible only with the good analytical decision of
the organization. However, the decision shall be framed by giving more emphasis on the present
and future perspective (economic conditions) respectively.
CORPORATE FINANCE
Corporation finance deals with the financial problems of a corporate enterprise. These problems
include the financial aspects of the promotion of new enterprises and their administration during
their early period ; the accounting problems connected with the distinction between capital and
income, the administrative problems arising out of growth and expansion, and, finally, the
financial' adjustments which are necessary to booster up to rehabilitate a corporation which has
run into financial difficulties.

FINANCIAL ANALYSIS
Financial analysis is the process of identifying the financial strength and weakness of the firm by
properly establishing relationships between the items of the balance sheet and the profit and loss
account.
Financial Analysis can be defined as a study of relationship between many factors as disclosed
by the statement and study of the trend of these factors.
The basis for financial planning, analysis and Decision-making is the financial information.
Financial information is needed to predict, compare and evaluate the firms earning ability.


AIMS OF FINANCE
Acquiring sufficient funds
Proper utilization of funds
Increasing profitability Maximizing firms value
Estimating financial requirements
Deciding capital structure
Selecting a source of finance
Selecting a pattern of investment
Proper cash management
Implementing financial control
Proper use of surplus

STOCK EXCHANGE IN INDIA
Ahmedabad stock exchange Bangalore stock exchange
Bhubaneswar stock exchange BOMBAY STOCK EXCHANGE
Kolkata stock exchange Cochin stock exchange
Coimbatore stock exchange Delhi stock exchange


Guwathi stock exchange Hyderabad stock exchange
Indore stock exchange Jaipur stock exchange
Kanpur stock exchange Ludhiana stock exchange
Madras stock exchange Magadhstock exchange
Mangalore stock exchange Pune stock exchange
Saurashtra stock exchange Vadodara stock exchange
NATIONAL STOCK EXCHANGE Over the counter exchange of India [OTCEI]
Inter connected stock exchange [ICSE]

Stock exchanges are the physical location where stocks are bought and sold. They are the sisters
of the Over-The - Counter (OTC) market. The OTC refers to market in which securities
transactions are conducted through a telephone and computer networks connecting dealers in
stocks and bonds, rather than on the floor of an exchange. Together, these two markets form the
secondary market. The primary and secondary markets together form the stock mark.

WORLD WIDE STOCK EXCHANGES
American Stock Exchanges
American Stock Exchange (AMEX)
Chicago Mercantile Exchange (CME)
New York Stock Exchange (NYSE)
NASDAQ Stock Exchange


Toronto Stock Exchange (TSX)
European Stock Exchange:
London Stock Exchange (LSE)
London Metal Exchange (LME)
Irish Stock Exchange (ISE)
Italian Stock Exchange (BIT)
Frankfurt Stock Exchange (FSE)
OMX Stock Exchanges (OMX)
Moscow Stock Exchange(MICEX)
Athens Stock Exchange (ASE)
Asian and Pacific Stock Exchanges:
Hong Kong Stock Exchanges (HKSE)
Bombay Stock Exchange (BSE)
Tokyo Stock Exchange (TSE)
Singapore Exchange (SGX)
Australian Stock Exchange (ASX)
National Stock Exchange of India (NSE)
Karachi Stock Exchange (KSE)
Philippine Stock Exchange (PSE)
Shanghai Stock Exchange (SSE)


New Zealand Stock Exchange (NZX)
Dubai Stock Exchange (DIFX)
African Stock Exchange:
Johannesburg Stock Exchange (JSE)
New Zealand Stock Exchange (NZX)
Johannesburg Stock Exchange (JSE)
List of Top Companies of NSE (National Stock Exchange)

Reliance industries ltd.
Oil and natural gas corporation ltd.
Bharti airtel limited
NTPC ltd
Reliance
Hero Honda motors ltd,
Communications ltd.
ICICI bank ltd.
Infosys technologies ltd.
Tata consultancy services ltd,s
Bhel,
State bank of India,


Steel authority of India,
Larsen & turbo ltd.,
Zee entertainment ltd,
Indian petrochemicals corporation ltd.,
Bharat petroleum corporation ltd.,
Videsh sanchar nigam ltd,
Mahan agar telephone nigam ltd,
Power grid corporation of India,
Reliance energy ltd,
Siemens ltd,
ACC limited,
Ambuja cements ltd,
HCL technologies ltd,
Hindalco industries ltd,
National aluminium co ltd,
Sun pharmaceuticals ind.,
Mahindra & mahindra ltd,
TATA power co ltd,
Punjab national bank,
ITC ltd,


Reliance petroleum ltd.,
HDFC ltd,
Wipro ltd,
HDFC bank ltd,
TATA steel limited,
Hindustan unilever ltd.
TATA motors limited,
Maruti udyog limited

INTRODUCTION OF NSE
The National Stock exchange was incorporated for the first time in November, 1992. The
national stock exchange was not incorporated as the national stock exchange; rather, it had got
the recognition of the recognized stock exchange in April, 1993. The National stock Exchange
has increased its trading facilities in June 1994 when the WDM (Wholesale Debt Market
Segment) was gone live. It is basically one of the three market segments in which the national
stock Exchange works. In the same year, 1994 November, the Capital Market (CM) segment of
the stock exchange goes live through VSAT.
The National Stock Exchange has become the first Clearing Corporation in India by the
introduction of NSCCL in April 1995. In the same year, 1995 July, it has introduced the Investor
protection fund which is a very important function introduced by the national Stock Exchange.


The National stock Exchange had grown with leaps and bounds and had shown tremendous
growth mainly in all the fields and thus making it the largest stock exchange of India by October,
1995.
The concept of NSCCL was extended by the introduction of clearing and settlement with the
help of NSCCL in year 1996. The National stock Exchange has introduced its Index for the first
time in year April 1996. The index was known as the S&P CNX nifty index. In year June 1996,
it has introduced the Settlement Guarantee Fund. The National Securities Depositor Fund was
launched by the National Stock exchange in year 1996, November, and thus making it the first
stock exchange who becomes the first depository in India.
National stock exchange (NSE) is Indias leading stock exchange covering various cities and
towns across the country. NSE was set up by leading institutions to provide a modern, fully
automated screen-based trading system with national reach. The exchange has brought about
unparalleled transparency, speeds & efficiency, safety and market integrity. It has set up facilities
that Serve a model for the securities industry in terms of systems, practices and procedures. NSE
played a catalytic role in reforming the Indian securities market in terms of microstructure,
market practices and trading volumes. The market today uses state art information technology
to provide an efficiency and transparent trading , clearing and settlement mechanism and has
witnessed several innovations in products & services viz demutualization of stock exchange
governance, screen based trading compression of settlement cycles, dematerialization and
electronic transfer of securities, securities lending and borrowing, professionalization of tradings
members, fine-tuned risk management systems, counterparty risks, market of debt and
derivatives instruments and intensive use of information technology.

NSE INDEX OR NIFTY:
The NSE Index or the Nifty Index as it is popularly known, is the index of the performance of


the 50 largest & most profitable, popular companies listed in the index. Each company that is
part of the index has its own weightage in the value of
the Index. The value of the Nifty Index is the weighted average of the prices of these 50 compani
es.

THE ORGANISATION
The national stock exchange of the e of India limited has genesis in the report of the high
powered study group on establishment of new stock exchanges, which recommended promotion
of a national stock exchange by financial institutions (FIs) to provide access to investors from all
across the country on an equal footing. based on the recommendations, NSE was promoted by
leading financial institution at the behest of the government of India and was incorporated in
November 1992 as a tax paying company unlike other stock exchange in the country. On its
recognition as a stock exchange under the securities contracts(regulation) act,1956 in April
1993, NSE commenced operations in the wholesale debt market (WDM) segment in June 1994.
The capital market (equities) segment commenced operations in November 1994 and operations
in derivatives segment commenced in June 2000.

MISSION
NSE's mission is setting the agenda for change in the securities markets in India. The NSE was
set-up with the main objectives of:

establishing a nation-wide trading facility for equities, debt instruments and hybrids,

Ensuring equal access to investors all over the country through an appropriate communication
network.


*Providing a fair, efficient and transparent securities market to investors using electronic trading
systems,
Enabling shorter settlement cycle and book entry settlements systems, and meeting the current
international standards of securities markets. The standards set by NSE in terms of market
practices and technologies have become industry bench market and being emulated by other
market participants. NSE is more than a mere market facilitator. Its that force which is guiding
industry to wards new horizons and greater opportunities.

Logo
The logo of the NSE symbolizes a single nationwide securities trading facility ensuring equal
and fair access to investors, trading members and issuers all over the country. The initials of the
Exchange viz., NSE have been etched on the logo and are distinctly visible. The logo symbolizes
use of state of the art information technology and satellite connectivity to bring about the change
within the securities industry. The logo symbolizes vibrancy and unleashing of creative energy to
constantly bring about change through innovation

ABOUT BSE
Bombay stock exchange limited is the oldest stock exchange in Asia with a rich heritage.
Popularly known as BSE. It is the first stock exchange in the country to obtain permanent
recognition in 1956 from the government of India under the securities contracts (regulation) act,
1956. The exchanges pivotal and pre-eminent role in the development of the Indian capital
market is widely recognized and its index, SENSEX, is tracked worldwide. Earlier an
Association of Persons(AOP), the exchange is now a demutualized and corporatized under the


provisions of the companies Act,1956, pursuant to the BSE (corporatization and demutualization
) scheme, 2005 notified by the securities and exchange board of India (SEBI). With
demutualization, the trading rights and ownership rights have been de-linked effectively
addressing concern regarding perceived and real conflicts of interest. The exchange is
professionally managed under the overall direction of the board direction. The board comprises
eminent professionals, representatives of trading members and the managing director of the
exchange. The board is inclusive and is designed to benefits from the participation of market
intermediaries.

In terms of organization structure, the board formulates large policy issues and exercises overall
control. The committees constituted by the board are board based. The day to day operations of
the exchange are managed by the managing directors and a management team of professionals.
The exchange has a nation wide reach with a presence in 417 cities and towns of India. The
systems and processes of the Exchange are designed to safeguard market integrity and enhance
transparency in operations. During the year 2004-2005, the trading volumes on the Exchange
showed robust growth. The Exchange provides an efficient and transparent market for trading in
equity, debt instruments and derivatives. The BSE's On Line Trading System (BOLT) Is a
proprietary system of the Exchange and is BSE certified. The surveillance and clearing &
settlement functions of the exchange are ISO 9001:2000 certified.

BSE INDEX OR SENSEX:
The BSE index or the Sensex as it is popularly known, is the index of the performance of the 30
largest & most profitable, popular companies listed in the index. Each company that is part of the
index has its own weightage in the value of the index. since the number of companies is lesser ,
the index variations are higher when compared to the Nifty index.



LIST OF COMPANIES OF BSE
1.ACC Ltd. Cement and cement products
2.Ambuja Cements Ltd. Cement and Cement Products
3.Bajaj Auto Ltd. Automobiles 2 and 3 Wheelers
4.Bharat Heavy Electricals Ltd. Electrical Equipment
5.Bharti Airtel Ltd. Telecommunication Services
6.Cipla Ltd. Pharmaceuticals
7.DLF Ltd. Developers/Construction
8.Grasim Industries Ltd. Diversified
9.Housing Development Finance Corporation Ltd. Finance -Housing
10.HDFC Bank Ltd. Banks
11.Hindalco Industries Ltd. Aluminium
12.Hindustan Unilever Ltd. FMCG
13.ICICI Bank Ltd. Banks
14.Infosys Technologies Ltd. Information Technology
15.ITC Ltd FMCG
16.Larsen & Toubro Ltd. Engineering1Mahindra & Mahindra Ltd. Automobile 4 wheelers
17.Maruti Udyog Ltd. Automobiles 4 wheelers
18.NTPC Ltd. Power
19.Oil & Natural Gas Corporation Ltd. Oil Exploration/Production

Logo of BSE
The BSE is a potent symbolism of the Indian capitalist economy, and is an important landmark
in the financial domain. Till the national stock exchange was found in 1992, the BSE continued
to be the center of the Indian corporate world. Its traditional open outcry system of trading,


with a milling crowd of brokers jostling with each other to make deals, inspired many an aspiring
entrepreneur.
Over the years, BSE has been pivotal in providing the Indian business in that most vital of
resources Capital. Every Indian corporate worth its salt has tapped the Indian capital market
through the exchange, and every major company ha its shares listed on the BSE. A listing on the
BSE was considered as the holy grail in the Indian corporate and business world. BSE lost a
substantial amount of reputation after the securities scam perpetrated by harsh ad Mehta, and
various scams in the following years have continued to pound its goodwill. Yet, the BSE
continues to move from strength to strength, and continues to be the flagship of the Indian capital
markets. The location of BSE dalal street has become the Indian equivalent of Wall Street.
Bombay Stock Exchange Building

FUNCTIONALITY AND ROLE OF BSE

BSE has pioneered various innovations into the Indian capital market. The BSE Index called
the Sensex is considered the pulse of the Indian capital system and industry. In addition to the
main index the Sensex BSE also offers several sub-indices and sectorial indices. BSE has
also introduced ETF (An Exchange Traded Fund) in collaboration with Hong Kong based
Barclays Global Investors. The ETF enables foreign investors to invest in the Indian stock
market.
BSE has been at the forefront of introducing transparency and successful investor friendliness in
the trading of various instruments such as stocks, derivate and debt instruments. It is a global


pioneer in achieving the coveted ISO 9001:2000 certification, and the introduction of BOLT
BSE Online Trading System. BOLT is currently available to thousands of traders across the
country, and provides access to markets from the computer screens. BSEWEBX, a service
introduced in 2001, was first of its kind in the world and enabled investors to deal in shares and
stocks from the comfort of their computers.
In addition to the equity market, BSE is also taking important steps to develop the retail debt
market. This step will help the common investors to gain access to an alternative investment
option, and provide greater diversification opportunities.
BSE is also involved in a number of initiatives to educate the investors, monitor the markets and
provide training and education on various aspects related to the Indian capital markets.



CHAPTER -2
REASRCH DESIGN

DESIGN OF THE STUDY
A background of the area chosen for study has been presented in the previous chapter. This
chapter is devoted for research design.
Research design is defined as a particular procedure or a set of procedures, the analysis of
principles of the enquiry in a particular field. The value of any scientific and systematic study
lies in its methodology.
A central part of research design is to develop an effective research strategy. It constitutes the
blue print for the collection, measurement and analysis of data.

TITEL OF THE STUDY
A Comparative study of NSE & BSE

STATEMENT OF THE PROBLEM
India NSE and BSE is growing at a rapid pace, thereby giving an impetus to the Indian economy.
The study has been carried out to provide a comparative analysis of 6 companies listed in NSE.


OBJECTIVES OF NSE & BSE
To gain an insight of national stock exchange and Bombay stock exchange towards the listing
procedures
To explore the benefit of listing on the stock exchange with a comparative study.
To know the recent trends in NSE&BSE
To offer suggestions based on the findings arrived from the study
LIMITATIONS OF THE STUDY
As per the study, it was supposed to collect information from many sub brokers but due to time
constraint and physical constraint most of the information was not collected.
Analysis and interpretation are purely based on the data collected from various websites. The
accuracy of interpretation depends upon accuracy of these data.
Data collected for analysis were only for limited period. Hence findings of study can be varying.
There are some changes in stock market in daily basis.

METHODOLOGY
The methodology used for the implementation of the assigned projects is based on primary data
& secondary data & with the help of custom type pie explore chart.


Research design for the descriptive study is of exploratory type & the forms is given to discover
the possible measures by detailed analysis this report also based on descriptive research because
it provide the detailed knowledge about the NSE & BSE & its listing procedures.

SOURCES OF DATA
PRIMARY DATA
SECONDARY DATA

PRIMARY DATA
Primary data are those, which are collected directly from the different company investors who
are investing in BSE & NSE.

SECONDARY DATA
Secondary data is to be used in the research have been collected from various magazines,
newspapers, websites, & questionnaires others sources.
Research design: descriptive types & analytical type
Data collection :secondary data collection method


CHAPTER SCHEMES

CHAPTER 1: INTRODUCTION
CHAPTER 2: RESEARCH DESIGN
CHAPTER 3: COMPANY PROFILE
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION
CHAPTER 5: SUMMARY OF FINDINGS, CONCLUSIONS
AND SUGGESTIONS
ANNEXURE
BIBLIOGRAPHY
CHAPTER-3
COMPANY PROFILE

NATIONAL STOCK EXCHANGE
National stock exchange (NSE) is Indias leading stock exchange covering various cities and
towns across the country. NSE was set up by leading institutions to provide a modern, fully
automated screen-based trading system with national reach. The exchange has brought about
unparalleled transparency, speeds & efficiency, safety and market integrity. It has set up facilities
that serve a model for the securities industry in terms of systems, practices and procedures. NSE
played a catalytic role in reforming the Indian securities market in terms of microstructure,
market practices and trading volumes. The market today uses state art information technology
to provide an efficiency and transparent trading , clearing and settlement mechanism and has
witnessed several innovations in products & services demutualization of stock exchange


governance, screen based trading compression of settlement cycles, dematerialization and
electronic transfer of securities, securities lending and borrowing, professionalization of tradings
members, fine-tuned risk management systems, counterparty risks, market of debt and
derivatives instruments and intensive use of information technology.
The national stock exchange is Indias leading stock exchange covering various cities and towns
across the country. NSE was set up by leading institutions to provide a modern, fully automated
screen based trading system with national reach. The exchange has brought about unparalleled
transparency, speed & efficacy safety and market integrity.it has set up facilities that serve a
model for the securities industry in terms of systems, practices and procedures. NSE has played a
catalytic role in reforming the Indian securities market in terms of microstructure, market
practices and trading volumes. The market today uses state-of-art information technology to
provide an efficient and transparent trading, clearing and settlement mechanism, and has
witnessed several innovations in products & services viz. demutualization of stock exchange
governance, screen based trading, compression of settlement cycles,
dematerialization and electronic transfer of securities, securities lending and borrowing,
professionalization of trading members, fine tuned risk management systems, emergence of
clearing corporations to assume counterparty risks, market of debt and derivative instruments
and intensive use of information technology.
AWARDS & RECOGNITION OF NSE
NSCCL Rated CCR AAA for fourth consecutive year - 28th Dec 2011.
For fourth consecutive year CRISIL has assigned its highest corporate credit rating of CCR
AAA to the National Securities Clearing Corporation Ltd (NSCCL). 'CCR AAA' rating
indicates highest degree of strength with regard to honoring debt obligations. As per CRISIL the
rating reflects NSCCLs status as Clearing Corporation for NSE. The rating also factors in
NSCCLs rigorous risk management controls and adequate settlement guarantee cover.
CRISIL has further stated that NSCCLs risk management system is comprehensive, and is
regularly upgraded to pre-empt market failures. The company addresses risks in clearing and


settlement with its stringent norms for selection of members, robust margining system, and risk-
based position limits and surveillance mechanism.
NSE and NSCCL receive Asian Banker awards
NSE has been awarded 'The Asian Banker Financial Derivative Exchange of the Year Award"
NSCCL has been awarded 'The Asian Banker Clearing House of the Year Award"

ACIEVEMENTS OF NSE
The industrial organization is created to meet the demands trade essential to the success of the
project. With the concern to bring together the expertise and the knowledge strictly necessary, in
an optimized configuration, with the qualities of excellence, transparency and respect for all
people involved, in an economic efficiency context, functional and technical.
NSE is sized to industrialize your projects through the phases of prototype and prototyping, in
order to validate the technical solutions considered.
NSE implements throughout its projects, a system of risk management related to products, under
the supervision of an account manager who will be your main contact.
NSE provides a global Project management of its supply chain. NSE selects, assures the follow
up and the quotation of its suppliers to ensure the quality of the process supply (mechanical,
electronic card, low cost solutions).

Aeronautic Defense



CORPORATE STRUCTURE
NSE is one of the first de-mutualized stock exchanges in the country, where the ownership and
management of the Exchange is completely divorced from the right to trade on it. Though the
impetus for its establishment came from policymakers in the country, it has been set up as a
public limited company, owned by the leading institutional investors in the country.
From day one, NSE has adopted the form of a demutualized exchange - the ownership,
management and trading is in the hands of three different sets of people. NSE is owned by a set
of leading financial institutions, banks, insurance intermediaries and is managed by
professionals, who do not directly or indirectly trade on the Exchange. This has completely
eliminated any conflict of interest and helped NSE in aggressively pursuing policies and
practices within a public interest framework. The NSE model however, does not preclude, but in
fact accommodates involvement, support and contribution of trading members in a variety of
ways. Its Board comprises of senior executives from promoter institutions, eminent professionals
in the fields of law, economics, accountancy, finance, taxation, etc, public representatives,
nominees of SEBI and one full time executive of the Exchange.
While the Board deals with broad policy issues, decisions relating to market operations are
delegated by the Board to various committees constituted by it .Such committees include
representatives from trading members, professionals, the public and the management. The day-
to-day management of the Exchange is delegated to the Managing Director who is supported by
a team of professional staff.


NSE MILESTONES
May 13, 2013 NSE launches the first dedicated Debt Platform
on the Exchange
January 10, 2013 Agreement on Launch of S&P CNX Nifty
Futures in Japan
January 03, 2013 NSCCL Rated CCR AAA for fifth consecutive
year
September 18, 2012 NSE launches SME operations
June 27, 2012 NSE launches financial literacy initiative '
Jagruti' in Mohali, in partnership with India
Post
May 03, 2012 Futures and Options contracts on FTSE 100
March 22, 2012 NSE and India Post start Unique Financial
Inclusion Initiative "Jagruti"
March 14, 2012 NSE launches EMERGE - SME Platform

December 2011
NSCCL Rated CCR AAA for fourth
consecutive year - 28th Dec 2011

September 2011
Launch of derivatives on CNX PSE and CNX
Infrastructure Indices
August 2011 Launch of derivatives on Global Indices
July, 2011

Commencement of trading in 91 Day GOI
Treasury Bill Futures



MISSION
NSE's mission is setting the agenda for change in the securities markets in India. The NSE was
set-up with the main objectives of:

Establishing a nation-wide trading facility for equities, debt instruments and hybrids,

Ensuring equal access to investors all over the country through an appropriate communication
network.
*Providing a fair, efficient and transparent securities market to investors using
electronic trading system,
Enabling shorter settlement cycle and book entry settlements systems, and meeting the current
international standards of securities markets. The standards set by NSE in terms of market
practices and technologies have become industry bench market and being emulated by other
market participants. NSE is more than a mere market facilitator. Its that force which is guiding
industry to wards new horizons and greater opportunities.

PROMOTERS
NSE has been promoted by leading financial institutions, banks, insurance companies and other
financial intermediaries:


1. Industrial Development Bank of India Limited

2. Industrial Finance Corporation of India Limited

3. Life Insurance Corporation of India

4. State Bank of India

5. ICICI Bank Limited

6. IL & FS Trust Company Limited

7. Stock Holding Corporation of India Limited

8. SBI Capital Markets Limited

9. The Administrator of the Specified Undertaking of Unit Trust of India

10. Bank of Baroda


11. Canara Bank

12. General Insurance Corporation of India

13. National Insurance Company Limited

14. The New India Assurance Company Limited

15. The Oriental Insurance Company Limited

16. United India Insurance Company Limited

17. Punjab National Bank

18. Oriental Bank of Commerce

19. Corporation Bank

20. Indian Bank


21. Union Bank of India

GROUP OF NSE
National Securities Clearing Corporation Ltd. (NSCCL)
The national securities clearing corporation ltd. (NSCCL), a wholly owned subsidiary of NSE,
was incorporated in august 1995. It was set up to bring and sustain confidence in clearing and
settlement of securities: to promote and maintain, short and consistent settlement cycles; to
provide country party risk guarantee, and to operate a tight risk containment system. NSCCL
commenced clearing operation on April 1996. N SCCL carries out the clearing and settlement of
the trades executed in the equities and derivatives segments and operates subsidiary general
ledger (SGL) for settlement of trades in government securities. It assumes the counter party risk
of each member and guarantees financial settlement of transactions on other stock exchange like,
the over the counter exchange of India NSCCL has successfully brought about an up gradation of
the clearing and settlement procedures and has brought Indian financial markets in line with
international markets.

NSE.IT Ltd


NSE.IT, a 100% subsidiary of National Stock Exchange of India Limited (NSE), is the
information technology arm of the largest stock exchange of the country. A leading edge
technology user, NSE houses state-of-the-art infrastructure and skills. NSE.IT possesses the
wealth of expertise acquired in the last six years by running the trading and clearing
infrastructure of largest stock exchange of the country. NSE .IT is uniquely positioned to provide
products, services and solutions for the securities industry. There has been a long felt need for
top of the line products, services and solutions in the areas of trading, broker front end and back-
office, clearing and settlement, web- based trading, risk management, treasury management,
asset liability management, banking. Insurance ect. NSE.ITs expertise in these areas is the
primary focus. The company also plans to provide consultancy and implementation services in
the areas of data warehousing, business continuity plans, stratus main frame facility
management, site maintenance and backups, real time market analysis & financial news over
NSE- Net, ect. NSE.IT is an export oriented unit with STP and plans to go global for various IT
service in due course. In the near future the company plans to release new products for broker
back office operations and enhance Neat XS / Neat is to support straight through processing on
the net.

INDIA INDEX SERVICES & PRODUCTS LTD. (IISL)
India index services and products limited (IISL), a joint venture between NSE and CRISIL
Ltd.( formerly the credit rating information services of India limited), was set up in May 1998 to
provide a variety of indices and index related services and products for the Indian capital
markets. It has a consulting and licensing agreement with standard and poors (S &P),the worlds
leading provider of investible equity indicates, for co- branding equity indices. IISL provides a
broad range of services, products and professional index services. It maintains over 80 equity


indices comprising broad-based benchmark indices, sectorial indices and customized indices.
Many investment and risk management products based on IISL indices have been developed in
the recent past, within India and abroad. These include index based derivatives traded on NSE
and Singapore exchange (SIMEX) and a number of index funds.

National Securities Depository Ltd. (NSDL)
In order to solve the myriad problems associated with trading in physical securities, NSE joined
hands with the industrial development bank of india (IDBI) and the unit trust of India (UTI) to
promote dematerialization of securities. Together they set up national securities depository
limited (NSDL), the first depositary in India. NSDL commenced operations in November 1996
and has since established a national infrasture of international standards to handle trading and
settlement in dematerialized from and thus completely eliminated the risks to investors
associated with fake / bad / stolen paper.

Dot Ex International Limited
Dot Ex was formed to provide world class internet trading platforms which allow members of
NSE to offer online trading facilities to their customers. Members of NSE can service a larger
clientele by using the automated risk management features and thus increase volumes. Investors
get comprehensive and updated information necessary to trade, along with a single- click
convenience to fulfill their obligations. The initial offering of dot Ex is dot Ex plaza where
multiple market participants such as members of NSE, depository participants and banks can
offer web- based services to their customers. As a neutral aggregator and infrastructure provider,
dot Ex offers choice and convenience to investors. Dot Ex was a joint venture between i-flex
solutions ltd. And NSE.IT ltd. Recently NSE has taken over the shareholding and management
of dot Ex .


Dot Ex product may be classified under the following broad categories;
Equity trading module
F & O trading module

NSE TECHNOLOGY
Across the globe, developments in information, communication and network technologies have
created paradigm shifts in the securities market operations. Technology has enable organizations
to build new sources of competitive advantages, bring about innovations in products and
services, and to provide for new business opportunities. Stock exchange all over the world has
realized the potential of IT and Have moved over to electronic trading systems, which are
cheaper, have wider reach and provide a better mechanism for trade and post trade executions
believes that technology will continue to provide the necessary impetus for the organization to
retain its competitive edge and ensure timeliness and satisfaction in customer service. In
recognized of the fact that technology will continue to redefine the shapes of the securities
industry, NSE stresses on innovation and sustained investment in technology to remain a head of
competition. NSES set up is the largest by any company in india . it uses satellite
communication technology to energies participation from around 400 cities spread all over the
country. In the recent past, capacity enhancement measures taken up in regard to the trading
systems so as effectively meet the requirements of increase users and associated trading loads.
With up gradation of trading hardware, NSE can handle up to 1 million trades per days has also
put in place NIBIS ( NSEs internet based information system ) for on line real time
dissemination of trading information over the internet. In order to.



EQUITIES OF NSE
NSE started trading in the equities segment (capital market segment) on November 3, 1994 and
within a short span of 1 year became the largest exchange India in terms of volumes transited.
Trading volumes in the equity segment have grown rapidly with average daily turnover
increasing from Rs. 17 crores during 1994-95 to Rs. 4,328 crores during 2003 -04. During the
year 2003-04, NSE reported a turnover of rs. 1,099,535 crores in the equities segment accounting
for 68.60% of the total Indian securities market. The equities section provides you with an
insight into the equities segment of NSE ans also provides real- time quotes and statistics of the
equities market. In depth information regarding listing of securities, trading systems &
processes, clearing and settlement, risk management, trading statistics ect. Are available here.
.

LISTING OF NSE
Listing means admission of securities of an issuer to trading privileges on a stock exchange
through a formal agreement. The prime objective of admission to dealing on the exchange is to
provide liquidity and marketability to securities, as also to provides a mechanism for effective
management of trading. Listing on NSE provides qualifying companies with the broadest access
to investors, the greatest market depth and liquidity,


Cost effective access to capital, the highest visibility, the fairest pricing, and investor benefits.
NSE trading terminals are now situated in various towns across the length the eligibility criteria
for listing. Various types of securities of a company are traded under a unique symbols and
different series. NSE played an important role in helping an Indian companies access equity
capital, by providing a liquid and well- regulated market. NSE has about 800 companies listed
representing the length, breadth and diversity of the Indian economy which includes from hi-tech
to heavy industry, software, refinery, public-sector units, infrastructure, and financial services.
Listing on NSE raises a companys profile among investors in India and abroad. Trade data is
distributed worldwide through various news-vending agencies.
More importantly, each and every NSE listed company is required to satisfy stringent financial,
public distribution and management requirements. High listing standards foster investor
confidence and also bring credibility into the markets. NSE listed securities in its capital market
(equities) segment and its wholesale debt market segment.

LISTING PROCEDURES OF NSE
An issuer has to take various steps prior to making an application for listing its securities on the
NSE. These steps are essential to ensure the compliance of certain requirement by the issuer
before listing its securities on the NSE. The various steps to be taken include:


1. Initial Discussions
2. Approval of Memorandum and Articles of Association
3. Approval of draft prospectus
4. Submission of Application
5. Listing conditions and requirements

LISTING PROCEDURE

Initial Discussions
Authorized persons of the concerned issuer should discussions with NSE personnel regarding
various requirements to be fulfilled by the issuer for listing its securities. The discussions should
particularly cover the qualifications of the issuer which are required for an issuer to be admitted
for listing on the NSE and to understand all the conditions that are precedent to listing on the
NSE. The proposed memorandum & articles of Association and the draft prospectus may be
presented to the NSE for examination before finalizing them

Approval of draft prospectus
The Issuer shall file the draft prospectus and application forms with NSE. In case NSE is not the
Regional Stock Exchange then the draft prospectus and application forms have to be filed


simultaneously with the NSE when the same is filed with the Regional Stock Exchange
pertaining to the issue, for the perusal of NSE. The draft prospectus should have been prepared in
accordance with the statutes, notifications, circulars, guidelines, etc. governing preparation and
issue of prospectus prevailing at the relevant time. The Issuers may particularly bear in mind the
provisions of Companies Act, Securities Contracts (Regulation) Act, the SEBI Act and the
relevant subordinate legislations thereto. NSE will peruse the draft prospectus only from the
point of view of checking whether the draft prospectus is in accordance with the listing
requirements, and therefore any approval given by NSE in respect of the draft prospectus should
not be construed as approval under any laws, rules, notifications, circulars, guidelines etc.
The Issuers shall file a copy of the prospectus given by the respective Regional Stock
Exchange with NSE.The Issuer should also submit the SEBI acknowledgment card or letter
indicating observations on draft prospectus or letter of offer by SEBI.
Submission of Application
For issuers listing on NSE for the first time
Listing of Further issues by issuers already listed on NSE
listing fees
security deposit (for new & fresh issues and when NSE is the regional stock exchange)
supporting document

Submission of Application (For Issuers listing on NSE for the first time)
Issuers desiring to list existing/new securities on the NSE shall make application for admission
of their securities to dealings on the NSE in the forms prescribed in


This regard as per details given hereunder or in such other form or forms as the Relevant
Authority may from time to time prescribe in addition thereto or in modification or substitution
thereof.
Appendix 'A' - Clauses of Articles of Association
.Appendix 'B'- Application Letter for Listing.
Appendix 'C-1' - Listing Application providing pre-issue details of securities
.Appendix 'C-2' - Listing Application providing post-issue details of securities
.Appendix 'D'- Checklist for supporting documents ( as applicable to the issuer)
Appendix 'E' - Schedule of Distribution
Appendix 'F'- Listing Agreement

Submission of Application (Listing of further Issues by Issuers already listed on NSE)
Issuers whose securities are already listed on the NSE shall apply for admission to listing on the
NSE of any further issue of securities made by them. The application for admission shall be
made in the forms prescribed in this regard or in such other form or forms as the Relevant
Authority may from time to time prescribe in addition thereto or in modification or substitution
thereof.
Appendix 'E' - Schedule of Distribution
Appendix 'G'- Application Letter for Listing of further issues.
Kindly draw your Cheques/Demand Drafts favoring National Stock Exchange of India Limited,
payable in Mumbai.
Listing Procedure


Submission of Application (Security Deposit)

(Payable only for new and fresh issues and only when NSE is the Regional Stock Exchange)The
Relevant Authority shall not grant admission to dealings of securities of an Issuer which is not
listed or of any new (original or further) issue of securities of an Issuer excepting Mutual Funds,
which is listed on the NSE unless the Issuer deposits and keeps deposited with the NSE (in cases
where the securities are offered for subscription, whether through the issue of a prospectus, letter
of offer or otherwise, and NSE is the Regional Stock Exchange for the Issuer) an amount
calculated at 1% of the amount of securities offered for subscription to the public and or to the
holders of existing securities of the Issuer, as the case may be for ensuring compliance by the
Issuer within the prescribed or stipulated period of all requirements and conditions hereinafter
mentioned and shall be refundable or forfeitable in the manner hereinafter stated:
The Issuer shall comply with all prevailing requirements of law including all requirements of and
under any notifications, directives and guidelines issued by the Central Government, SEBI or
any statutory body or local authority or any body or authority acting under the authority or
direction of the Central Government and all prevailing listing requirements and conditions of the
NSE and of each recognized Stock Exchange where the Issuer has applied for permission for
admission to dealings of the securities, within the prescribed or stipulated period;
If the Issuer has complied with all the aforesaid requirements and
conditions including, wherever applicable, its obligation under Section 73(or any statutory
modification or re-enactment thereof) of the Companies Act, 1956 and obligations arising
therefrom, within the prescribed or stipulated period, and on obtaining a No Objection Certificate
from SEBI and submitting it to NSE , NSE shall refund to the Issuer the said deposit without
interest within fifteen days from the expiry of the prescribed or stipulated period;



If on expiry of the prescribed or stipulated period or the extended period referred to hereafter, the
Issuer has not complied with all the aforesaid requirements and conditions, the said deposit shall
be forfeited by the NSE, at its discretion, and thereupon the same shall vest in the NSE. Provided
the forfeiture shall not release the Issuer of its obligation to comply with the aforesaid
requirements and conditions;

If Issuer is unable to complete compliance of the aforesaid requirements and conditions within
the prescribed or stipulated period, the NSE, at its discretion and if the Issuer has shown
sufficient cause, but without prejudice to the obligations of the Issuer under the laws in force to
comply with any such requirements and conditions within the prescribed or stipulated period,
may not forfeit the said deposit but may allow such further time to the Issuer as the NSE may
deem fit; provided that;

the Issuer has at least ten days prior to expiry of the prescribed or stipulated period applied in
writing for extension of time to the NSE stating the reasons for non-compliance, and

the Issuer, having been allowed further time by the NSE, has before expiry of the prescribed or
stipulated period, published in a manner required by the NSE, the fact of such extension having
been allowed; provided further that where the NSE has not allowed extension in writing before
expiry of the prescribed or stipulated period, the request for extension shall be deemed to have
been refused; provided also that any such extension shall not release the Issuer of its obligations
to comply with the aforesaid requirements and conditions 50% of the above mentioned security
deposit should be paid to the NSE in cash. The balance amount can be provided by way of a
bank guarantee, in the format prescribed by or acceptable to NSE. The amount to be paid in cash
is limited to Rs.3 crores.



Submission of Application (Supporting Documents)
Issuers applying for admission of their securities to dealings on the NSE shall submit to the NSE
the following:

Documents and Information The documents and information prescribed in Appendix D or
Appendix I (as the case may be) to this Regulation or such other documents and information as
the Relevant Authority may from time to time prescribe, in addition thereto or in modification or
substitution thereof together with any other documents and information which the Relevant
Authority may require in any particular case;

Distribution Schedules Distribution Schedules duly completed in respect of each class and kind
of security in the form prescribed in Appendix E (Table I, II & III) to this Regulation or in such
other form or forms as the Relevant Authority may from time to time prescribe in addition
thereto or in modification or substitution thereof.

Listing conditions and requirements
All Issuers whose securities are listed on the NSE shall comply with the listing conditions and
requirements contained in the Listing Agreement Form appearing in Appendix F to this


Regulation or such other conditions and requirements as the Relevant Authority may from time
to time prescribe in addition thereto or in modification or substitution thereof. After fulfilling
these criteria, a company has to send the following information for further processing:
1. A brief note on the promoters and management
2. Company profile.
3. Copies of the Annual Report for last 3 years.
4. Copies of the Draft Offer Document.
5. Memorandum & Articles of Association

BORD OF DIRECTORS OF NSE
Chairman Mr. S.B Mathur
Administrator of the specified under taking
of unit trust of india
Managing director Mr,Ravi Narain national stock exchange of
india ltd
Deputy managing director Ms.chitra ram krish
National stock exchange of india ltd

ABOUT BSE
Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage.
Popularly known as "BSE", it was established as "The Native Share &Stock Brokers
Association" in 1875. It is the first stock exchange in the country to obtain permanent


recognition in 1956 from the Government of India under the Securities Contracts (Regulation)
Act, 1956.The Exchange's pivotal and pre-eminent role in the development of the Indian capital
market is widely recognized and its index, SENSEX ,
is tracked worldwide. Earlier an Association of Persons(AOP), the Exchange is now a demutuali
zed and corporatized entity incorporated under the provisions of the Companies Act, 1956,pursua
nt to the BSE(Corporatization and Demutualization) Scheme, 2005 notified by the Securities and
Exchange Board of India (SEBI).With demutualization, the trading rights and ownership rights
have been de-linked effectively addressing concerns
regarding perceived and real conflicts of interest.
The Exchange is professionally managed under the overall direction of the Board of Directors. T
he Board comprises eminent professionals, representatives of Trading Members and the
Managing Director of the Exchange. The Board is inclusive and is designed to benefit from the
participation of market intermediaries.
In terms of organization structure, the Board formulates larger policy issues and exercises over-
all control. The committees constituted by the Board are broad-based. The day-to-day operations
of the Exchange are managed by the Managing Director and a management team of
professionals. The Exchange has a nation-wide reach with a presence in 417 cities and towns of
India. The systems and processes of the Exchange are designed to safeguard market integrity and
enhance transparency in operations. During the year 2004-2005, the trading volumes on the
Exchange showed robust growth. The Exchange provides an efficient and transparent market for
trading in equity, debt instruments and derivatives. The BSE's On Line Trading System (BOLT)
Is a proprietary system of the Exchange and is BS certified. The surveillance and clearing &
settlement functions of the Exchange are ISO9001:2000 certified.

AWARDS & RECOGNITIONS
As a pioneering financial institution in the Indian capital market, BSE has won several awards
and recognitions that acknowledge the work done and progress made.


The Golden Peacock Global CSR Award for its initiatives in Corporate Social Responsibility
BSE has won NASSCOM - CNBC-TV18s IT User Awards, 2010 in Financial Services category
BSE has won Skoch Virtual Corporation 2010 Award in the BSE StAR MF category
Responsibility Award (CSR), by the World Council of Corporate Governance
Annual Reports and Accounts of BSE have been awarded the ICAI awards for excellence in
financial reporting for four consecutive years from 2006 onwards
Human Resource Management at BSE has won the Asia - Pacific HRM awards for its efforts in
employer branding through talent management at work, health management at work and
excellence in HR through technology

ACHIEVEMENTS OF BSE
At par with international standards, BSE Ltd. has been a pioneer in several areas over the
decades and has many firsts and key achievements to its credit. BSE is the first exchange in India
to
Launch a special platform for trading in SME securities
Introduce Equity Derivatives
Launch a Free Float Index - S&P BSE SENSEX
Launch Exchange Enabled Internet Trading Platform
Obtain ISO certification for a stock exchange
Exclusive facility for financial training BSE Institute Ltd.
Launch its website in Hindi and regional languages


Host the popular opening-bell ceremony in Indian capital markets
Launch mobile-based trading in India in Sept 2010
Become securities market infrastructure member of SWIFT in India and provide corporate
actions to custodians in ISO 15022 format
Launched S&P BSE SENSEX Realized S&P BSE Volatility (REALVOL) Index in Nov 2010

HERITAG OF BSE
The oldest exchange in Asia and the first exchange in the country to be granted permanent
recognition under the Securities Contract Regulation Act, 1956, Bombay Stock Exchange
Limited (BSE) has had an interesting rise to prominence over the past 130 years. While the BSE
is now synonymous with Dalal Street, it wasnt always so. In fact the first venues of the earliest
stock broker meetings in the 1850s were amidst rather natural environs - under banyan trees - in
front of the Town Hall, where Horniman Circle is now situated. A decade later, the brokers
moved their venue to another set of foliage, this time under banyan trees at the junction of
Meadows Street and Mahatma Gandhi Road. As the number of brokers increased, they had to
shift from place to place, and wherever they went, through sheer habit, they overflowed in to the
streets. At last, in 1874,found a permanent place, and one that they could, quite literally, call
their own. The new place was, aptly, called Dalal Street. The is as eventful and interesting as the
history of Indias securities market. Indias biggest bourse, in terms of listed companies and
market capitalization, BSE has played a pioneering role in the Indian securities market- one of
the oldest in the world. Much before actual legislations were enacted, BSE had formulated


comprehensive set of Rules and Regulations for the Indian Capital Markets. It also laid down
best practices adopted by the Indian capital markets after India gained its independent. Perhaps,
there would not be any leading corporate in India, which has not sourced BSEs services in
resource mobilizations as a brand is synonymous with capital markets in India. The
BSESENSEX is the benchmark equity index that reflects the robustness of the economy and
finance. At par with international standards, BSE has been a pioneer in several areas. It has
several firsts to its credit even in an intensely competitive environment.
First in India to introduce Equity Derivatives
First in India to launch a Free Float Index
First in India to launch US$ version of BSE Sensex
First in India to launch Exchange Enabled Internet Trading Platform
First in India to obtain ISO certification for surveillance, clearing & settlement.
'BSE On-Line Trading System (BOLT) has been awarded the globally recognized the
Information Security Management System standardBS7799-2: 2002.
First to have an exclusive facility for financial training
Moved from Open Outcry to Electronic Trading within just 50 days An equally important
accomplishment of BSE is the launch of a nationwide investor awareness campaign - Safe
Investing in the Stock Market - under which nationwide awareness campaigns and dissemination
of information through print and electronic medium was undertaken. BSE also actively promoted
the securities market awareness campaign of the Securities and Exchange Board of India. In
2002, the name The Stock Exchange, Mumbai, was changed to BSE. BSE ,which had introduced
securities trading in India, replaced its open outcry system of trading in 1995, when the totally
automated trading through the BSE Online trading (BOLT) system was put into practice. The
BOLT network was expanded, nationwide, in 1997. It was at the BSE's International Convention
Hall that Indias 1st Bell ringing ceremony in the history Capital Markets were held on February
18th, 2002. It was the listing ceremony of Bharti Tele ventures Ltd. BSE with its long history of


capital market development is fully geared to continue its contributions to further the growth of
the securities markets of the country, thus helping India increase its sphere of influence in
international financial markets. For the premier Stock Exchange that pioneered the stock broking
activity in India, 125 years of experience seem to be a proud milestone. A lot has changed since
1875 when 318 persons became members of what today is called "Bombay Stock Exchange
Limited" by paying a princely amount of Re1.Since then, the stock market in the country has
passed through both good and bad periods. The journey in the 20th century has not been an easy
one. Till the decade of eighties, there was no measure or scale that could precisely measure the
various ups and downs in the Indian stock market. Bombay Stock Exchange Limited (BSE) in
1986 came out with a Stock Index that subsequently became the barometer of the Indian Stock
Market. BSE-SENSEX, first compiled in 1986 is a "Market Capitalization-Weighted index of
30 component stocks representing a sample of large, well-established and financially sound
companies. The base year of BSE-SENSE. Is 1978-79. The index is widely reported in both
domestic and international markets through print as well as electronic media.
BSE-SENSEX is not only scientifically designed but also based on globally accepted
construction and review methodology. The "Market Capitalization Weighted"
Methodology is a widely followed index construction methodology on which majority of global
equity benchmarks are based. The growth of equity markets in India has been phenomenal in the
decade gone by. Right from early nineties the stock market witnessed heightened activity in
terms of various bull and bear runs. More recently, the bourses in India witnessed a similar
frenzy in the 'TMT' sectors. The BSE-SENSEX captured all these happenings in the most
judicial manner. One can identify the booms and bust of the Indian equity market through BSE-
SENSEX. The launch of BSE-SENSEX in 1986 was later followed up in January 1989by
introduction of BSE National Index (Base: 1983-84 = 100). It comprised of 100 stocks listed at
five major stock exchanges in India at Mumbai, Calcutta, Delhi, Ahmedabad and Madras. The
BSE National Index was renamed asBSE-100 Index from October 14, 1996 and since then it is
calculated taking into consideration only the prices of stocks listed at BSE.



BROAD OF DIRECTORS OF BSE
Non executive chairman Mr. jag dish Capoor
Chairman, HDFC bank
MD & CEO Mr. Rajnikant Patel

LISTING OF SECURITIES OF BSE
LISTING OF SECURITIES
Listing means admission of the securities to dealings on a recognized stock exchange. The
securities may be of any public limited company, Central or State Government, quasi-
governmental and other financial institutions/corporations, municipalities, etc. The objectives of
listing are mainly to :
provide liquidity to securities;
mobilize savings for economic development;

Protect interest of investors by ensuring full disclosures.
The Exchange has a separate Listing Department to grant approval for listing of securities of
companies in accordance with the provisions of the Securities Contracts (Regulation) Act, 1956,
Securities Contracts (Regulation) Rules, 1957, Companies Act, 1956, Guidelines issued by SEBI
and Rules, Bye-laws and Regulations of the Exchange. A company intending to have its


securities listed on the Exchange has to comply with the listing requirements prescribed by the
Exchange. Some of the requirements are as under:
Minimum Listing Requirements for new companies
Minimum Requirements for companies delisted by this Exchange seeking relisting of this
Exchange
Exchange
Permission to use the name of the Exchange in an Issuer Companys prospectus
Submission of Letter of Application
Allotment of Securities
Trading Permission
Requirement of 1% Security
Payment of Listing Fees
Compliance with Listing Agreement
"Z" Group
Cash Management Services (CMS) - Collection of Listing Fees.

Minimum listing requirements for new companies

Minimum Capital:



New companies can be listed on the Exchange, if their issued &subscribed equity capital after
the public issue is Rs.10 crores. In addition to this the issuer company should have a post issue
net worth (equity capital + free reserves excluding revaluation reserve) of Rs.20 crores.

For new companies in high technology ( i.e. Information technology, internet
E commerce telecommunication, media including advertisement, Entertainment. The following
criteria will be applicable regarding threshold limit:

1.The total income/sales from the main activity, which should be in the field
of information technology, internet, e-commerce, telecommunication, media including
advertisement, entertainment etc. should not be less than 75% of the total income during the two
immediately preceding years as certified by the Auditors of the company.

The minimum post-issue paid-up equity capital should be Rs.5Crores

The minimum market capitalization should be Rs.50 Crores. (The capitalizations will be
calculated by multiplying the post issue subscribed number of equity shares with the Issue price).
Post issue net worth (equity capital + free reserves excluding revaluation reserve) of Rs.20
Crores.

(b) Minimum public offer:



As per Rule 19(2) (b) of the Securities Contracts (Regulation) Rules, 1957,securities of a
company can be listed on a Stock Exchange only when at least25% of each class or kind of
securities is offered to the public for subscription.
In case of IPOs by unlisted companies in the IT & entertainment sector, at least10% of the
securities issued by the company may be offered to the public subject to the following:
Minimum 20 lac securities are offered to the public (excluding reservation, firm allotment and
promoters contribution)
The size of the offer to the public is minimum 50 crores.

For this purpose, the term "offered to the public" means only the portion offered to the public
and does not include reservations of securities on firm or competitive basis. SEBI may, however,
relax this condition on the basis of recommendations of stock exchange(s), only in respect of a
Government company defined under Section 617 of the Companies Act, 1956.

Minimum listing requirements for companieslisted on other stock exchanges

The Governing Board of the Exchange at its meeting held on 6th August, 2002 amended the
direct listing norms for companies listed on other stock exchange and seeking listing at BSE.
These norms are applicable with immediate effect.

The company should have minimum issued and paid up equity capital of Rs. 3 crores.



The Company should have profit making track record for last three years. The revenues/profits
arising out of extra ordinary items or income from any source of non-recurring nature should be
excluded while calculating distributable profits.

Minimum net worth of Rs. 20 crores (net worth includes Equity capital and free reserves
excluding revaluation reserves).

Minimum market capitalizations of the listed capital should be at least two times of the paid up
capital.
The company should have a dividend paying track record for the last 3consecutive years and the
minimum dividend should be at least 10%.

Exchange


The companies delisted by this Exchange and seeking relisting are required to make a fresh
public offer and comply with the prevailing SEBI's and BSE's guidelines regarding initial public
offerings.

[IV] Permission to use the name of the Exchange in an Issuer Company's prospectus
The Exchange follows a procedure in terms of which companies desiring to list their securities
offered through public issues are required to obtain its prior permission to use the name of the
Exchange in their prospectus or offer for sale documents before filing the same with the
concerned office of the Registrar of Companies. The Exchange has since last three years formed
a "Listing Committee" to analyses draft prospectus/offer documents of the companies in respect
of their forthcoming public issues of securities and decide upon the matter of granting them
permission to use the name of "Bombay Stock Exchange Limited" in their prospectus/offer
documents. The committee evaluates the promoters, company, project and several other factors
before taking decision in this regard.

[V] Submission of letter of application
As per Section 73 of the Companies Act, 1956, a company seeking listing of its securities on the
Exchange is required to submit a Letter of Application to all the Stock Exchanges where it
proposes to have its securities listed before filing the prospectus with the Registrar of
Companies.



[VI] Allotment of securities
As per Listing Agreement, a company is required to complete allotment of securities offered to
the public within 30 days of the date of closure of the subscription list and approach the Regional
Stock Exchange, i.e. Stock Exchange nearest to its Registered Office for approval of the basis of
allotment. In case of Book Building issue, Allotment shall be made not later than 15 days from
the closure of the issue failing which interest at the rate of 15% shall be paid to the investors.

[VII] Trading permission
As per Securities and Exchange Board of India Guidelines, the issuer company should complete
the formalities for trading at all the Stock Exchanges where the securities are to be listed within 7
working days of finalization of Basis of Allotment. A company should scrupulously adhere to
the time limit for allotment of all securities and dispatch of Allotment Letters/Share Certificates
and Refund Orders and for obtaining the listing permissions of all the Exchanges whose names
are stated in its prospectus or offer documents. In the event of listing permission to a company
being denied by any Stock Exchange where it had applied for listing of its securities, it cannot
proceed with the allotment of shares. However, the company may file an appeal before the
Securities and Exchange Board of India under Section 22 of the Securities Contracts
(Regulation) Act,1956.



[VIII] Requirement of 1% security
The companies making public/rights issues are required to deposit 1% of issue amount with the
Regional Stock Exchange before the issue opens. This amount is liable to be forfeited in the
event of the company not resolving the complaints of investors regarding delay in sending refund
orders/share certificates, non-payment of commission to underwriters, brokers, etc.

[IX] Payment of listing fees
All companies listed on the Exchange have to pay Annual Listing Fees by the30th April of every
financial year to the Exchange as per the Schedule of Listing Fees prescribed from time to time.
The schedule of listing fees for the year 2004-2005, prescribed by the Governing Board of the
Exchange and approved by the Securities and Exchange Board of India is given hereunder:

[X] Compliance with listing agreement

The companies desirous of getting their securities listed are required to enter into an agreement
with the Exchange called the Listing Agreement and they are required to make certain
disclosures and perform certain acts. As such, the agreement is of great importance and is
executed under the common seal of accompany. Under the Listing Agreement, a company
undertakes, amongst other things, to provide facilities for prompt transfer, registration, sub-
division and consolidation of securities; to give proper notice of closure of transfer books and
record dates, to forward copies of unabridged Annual Reports and Balance Sheets to the
shareholders, to file Distribution Schedule with the Exchange annually; to furnish financial
results on a quarterly basis; intimate promptly to the Exchange the happenings which are likely
to materially affect the financial performance of the Company and its stock prices, to comply
with the conditions of Corporate Governance, etc. The Listing Department of the Exchange
monitors the compliance of the companies with the provisions of the Listing Agreement,


especially with regard to timely payment of annual listing fees, submission of quarterly results,
requirement of minimum number of shareholders, etc. and takes penal action against the
defaulting companies.

[XI] "Z" Group

The Exchange has introduced a new category called "Z Group" from July 1999for companies
who have not complied with and are in breach of provisions of the Listing Agreement. The
number of companies placed under this group as at the end of May, 2001 was 1,475.

The number of companies listed at the Exchange as at the end of May 2001 was5,874.This is the
highest number among the Stock Exchanges in the country and in the world.

New Direct Listing norms
The Governing Board of the Exchange at its meeting held on 6th August, 2002amended the
direct listing norms for companies listed on other Stock Exchange(s) and seeking listing at BSE.
These norms are applicable with immediate effect.
1.The company should have minimum issued and paid up equity capital of Rs.3 crores.

2.The Company should have profit making track record for last three years. The revenues/profits
arising out of extra ordinary items or income from any source of non-recurring nature should be
excluded while calculating distributable profits.



3.Minimum net worth of Rs. 20 crores (net worth includes Equity capital and free reserves
excluding revaluation reserves)

.4.Minimum market capitalization of the listed capital should be at least two times of the paid up
capital.

[XII] Cash management services (cms) - collection of listing fees
As a further step towards simplifying the system of payment of listing fees, the Exchange has
entered into an arrangement with HDFC Bank for collection of listing fees, from 141 locations,
situated all over India. Details of the HDFC Bank branches, are available on our website site
www.bseindia.comas well as on the HDFC Bank website www.hdfcbank.com The above facility
is being provided free of cost to the Companies. Companies intending to utilize the above facility
for payment of listing fee would be required to furnish the information, (mentioned below) in
the Cash Management Cash Deposit Slip.
The Cheque should be drawn in favor of Bombay Stock Exchange Limited , and should be
payable, locally .Companies are requested to mention in the deposit slip, the financial year(s) for
which listing fee is being paid. Payment made through any other slips would not be considered.
The above slips will have to be filled in quadruplicate. One acknowledged copy would be
provided to the depositor by the HDFC Bank.



CHAPTER -4
DATE ANALYSIS & INTERPATION

DATA ANALYSIS
Data analysis is a practice in which is ordered and organized so that useful information can be
extracted from it. The process of organizing and thinking about data is a key to understanding
what the data does and does not contain. There are a variety of ways in which people can
approach data analysis, and it is notoriously easy to manipulate data during the analysis phase to
push certain conclusions or agendas. For this reason, it is important to pay attention when data
analysis is presented, and to think critically about the data and the conclusions which were
drawn.
DATA INTERPRETATION
The analysis of the data via statistical measures and/or narrative themes should provide answers
to the assessment questions. Interpreting the analyzed data from the appropriate perspective
allows for determination of the significance and implications of the assessment.



Table 4.1
Table showing the information about the age group
Age No of respondents Percentage
15 to 25 25 25 %
25 to 30 35 35 %
30 above 40 40 %
Total 100 100 %

ANALYSIS
The above table 25 % of the respondents to the age group of 15 to 25, 35 % are between 25 to 30
years, 40 % are belong to 30 above years .



Graph - 4.1
Graph showing the information about the age group

0
5
10
15
20
25
30
35
40
15 to 25 25 to 30 30 above
Series1


INTERPRETATION
The above graph are majority of respondents are in the age group of above 30 years .

Table 4.2
Table showing information about the occupation

Occupation NO of respondents Percentage
Business service 55 55%
Student 45 45 %
Total 100 100 %

ANALYSIS
The above table 55% of the respondents is business service, 45 %of the respondents are student
others.


Graph- 4.2
Graph showing the information about the occupation

INTERPRETATION
Business service,
55
Student , 45


The table is showing the majority of the respondents are in the employees business
services.

Table 4.3
Table showing the investing in NSE & BSE

Respondents No of respondents Percentage
Yes 50 50 %
No 50 50%
Total 100 100 %



ANALYSIS
The above table is 45 % of investing of NSE & BSE is YES, 55 % of respondents is NO.

Graph 4.3
Graph showing the investing in NSE & BSE



INTERPRETATION
The graph we can infer that 50 % of respondents are investing in NSE & BSE.

Table - 4.4
50% 50%
Yes No


Table showing percentage of your investment is invested in NSE & BSE

Category No of respondents Percentage
Less than 25 % 25-50% 40 40 %
51-75% more than75 % 60 60 %
Total 100 100 %

ANALYSIS
The above table showing the 40 % of the respondents is less than 25 % 25- 50 %, 60 % of the
respondents is 51- 75 % more than 75 %.



Graph-4.4
Graph showing the percentage of your investment is invested in NSE & BSE

INTERPRETATION
The graph showing the majority of respondents is 51- 75 % more than 75 %.

Less than 25 % 25-50%
51-75% more than75 %
0
10
20
30
40
50
60
1 2
Less than 25 % 25-50%
51-75% more than75 %


T able - 4.5
Table showing how long you are investing in NSE & BSE

Less than 1 year or 1 to 2
years
35 35 %
2 to 3 year or more than 3
year
65 65 %
Total 100 100 %

ANALYSIS
The above table showing that out of 100 respondents, 35% of them are investing in NSE & BSE
for the period less than 1 year or 1 to 2 years.



Graph 4.5
The graph showing how long you are investing in NSE & BSE

INTERPRETATION
0%
10%
20%
30%
40%
50%
60%
70%
1 2
2 to 3 year more than 3 year


The above graph it shows that the majority are 65 %respondents are from 2 to 3 year more than
3 year.

Table -4.6
Table showing the do you invest in NSE & BSE

For quick short term gain 60 60 %
For high long term gain 40 40 %
Total 100 100 %



ANALYSIS
The above this table showing the out of 100 respondents, 60 % of for quick short term gain, 40
% of respondents is for high long term gain.

Graph - 4.6
Graph showing how long you are investing in NSE & BSE



INTERPRETATION
The graph showing that the majority are 60 % respondents for quick short term gain.

Table 4.7
Table showing the attracts you towards stock exchange market

0
10
20
30
40
50
60
1
2
For quick short term gain
For high long term gain


High return 18 18 %
Speculation 25 25 %
Dividend 35 35 %
Liquidity of invested fund 22 22 %
Total 100 100

ANALYSIS
The above table showing 100 respondents, 18 % high return of respondents, 25 %
speculation,35 % dividend, & 22 % liquidity of invested fund.



Graph 4.7
Graph showing the attracts you towards stock exchange market

INTERPRETATION
The graph showing majority are 35 % respondents is dividend .

0
5
10
15
20
25
30
35
High return Speculation Dividend Liquidity of
invested
fund
Series1
Series2


Table - 4.8
Table showing the purpose of investment

To meet the cost of inflation 25 25 %
To earn return on idle
resources 34 34 %
To generate a specified sure
of money for a specific goal
in life 20 20 %
To make a provision for an
uncertain future 21 21 %
Total 100 100 %

ANALYSIS


The above table showing 100 respondents, 25 % to meet the of inflation, 34 % to earn return on
idle resources, 20 % to generate a specified sure of money for a specific goal in life, 21 % to
make a provision for an uncertain future.

Graph - 4.8
Graph showing the purpose of investment

0
5
10
15
20
25
30
35
40
To meet the
cost of
inflation
To earn return
on idle
resources
To generate a
specified sure
of money for a
specific goal in
life
To make a
provision for
an uncertain
future
Series1


INTERPRETATION

The graph showing majority are 34 % respondents are to earn on idel resources.

Table 4.9
Table showing the how much is your total investing annually

<5000 22 22 %
5000-10000 30 30 %
10000-25000 26 26 %
25000-50000 22 22 %
Total 100 100 %

ANALYSIS
The above table showing 100 respondents, 22 % of < 5000, 30 % of


5000- 10000, 26 % of 10000-25000, & 22 % of 25000-50000.

Graph 4.9
Graph showing the how much is your total investing annually



INTERPRATATION
The graph showing majority are 30 % respondents are 5000- 10000

Table 4.10
Table showing the how much is your investment period of NSE & BSE
22%
30%
26%
22%
<5000 5000-10000 10000-25000 25000-50000


< 25% 30 30 %
25% - 50% 20 20 %
50% - 75 % 35 35 %
75 % - 100 % 15 15 %
Total 100 100 %

ANALYSIS
The above table showing 100 respondents,30 % investment period is < 25 %, 20 % 25 % - 50 %,
35% 50 %- 75 %, 15 % of 75 % 100 %.



Graph 4.10
Graph showing the how much is your investment period of NSE & BSE

INTERPRETATION
The graph showing majority are 35 % respondents are 50 % -75 %.

30%
20%
35%
15%
< 25%
25% - 50%
50% - 75 %
75 % - 100 %


Table 4.11
Table showing the generally which is the holding period of NSE & BSE

Intraday 44 44 %
Delivery 56 56 %
Total 100 100 %

ANALYSIS
The above table showing 100 respondents, 44 % of intraday, 56 % delivery.



Graph 4.11
Graph showing the generally which is the holding period of NSE & BSE

0
10
20
30
40
50
60
1 2
Intraday
Delivery


INTERPRATATION
The graph showing majority are 56 % respondents are delivery.

Table 4.12
Table showing the in which sector you invest most

IT 35 35 %
Telecom 20 20 %
Banking 15 15 %
Petroleum 30 30 %


Total 100 100 %

ANALYSIS

The above table showing 100 respondents, 35 % it sectors, 20 % telecom sector,15 % banking
sector,&30 % petroleum sector most investing the money.

Graph 4.12
Graph showing the in which sector you invest most



INTERPRATATION

The graph showing majority are 35 % respondents are it sector.

TABLE 4.13
0
5
10
15
20
25
30
35
IT
Telecom
Banking
Petroleum
35
20
15
30
Series1


Table showing the future of equity market in India as per you

Bullish 35 35 %
Bearish 40 40 %
Cant say 25 25 %
Total 100 100 %

ANALYSIS
The above table showing 100 respondents, 35 % bullish, 40 % bearish, 25 % cant say.

Graph 4.13
Graph showing the future of equity market in India as per you


INTERPRETATION
The above graph majority are 40 % respondents are bearish equity market in india.

35
40
25
0
5
10
15
20
25
30
35
40
45
1 2 3 4
Bullish Bearish Cant say


Table 4.14
Table showing the do you have d-mat account
Yes 56 56 %
No 44 44 %
Total 100 100 %

ANALYSIS
The above table showing 100 respondents 56 % respondents saying YES, 44 % respondents
saying NO.



Graph 4.14
Graph showing the do you have d-mat account

INTERPRATATION
The above t graph showing the majority are 56 % respondents are saying yes .

0
10
20
30
40
50
60
Yes No
Series1


Table 4.15
Table showing the of you have a d-mat account, then to which kind does it belong
Online 45 45 %
Offline 55 55 %
Total 100 100 %

ANALYSIS
The above table showing 100 respondents 45 % online of has a d- mat account, offline of 55%
of respondents.



Graph 4.15
Graph showing the of you have a d-mat account, then to which kind does it belong

INTERPRETATION
The above graph showing the majority 55 % respondents are offline.

0
10
20
30
40
50
60
Online Offline
Series1


CHAPTER - 5
SUMMARY OF FINDINGS, CONCLUSION & RECOMMENDATIONS
The analysis made in previous chapter comparative study on equity market in India. And few
companies were selected for analysis has outperformed the market and few companies are not,
but still are giving an average return and few of them are outlined here.

35 % of the respondents are in the age group of 30 above years.
45 % of the respondents are in the qualification of business service.
50 % of the respondents are investing in NSE & BSE .
60 % of the respondents are 51-75 %more than 75 %.
65 % of the respondents are 2 to 3 year & more than 3 year are long investing in NSE & BSE.
60% of the respondents are for quick short term gain are investing in NSE & BSE.
35 % of the respondents are dividend to attract stock exchange market.
34 % 0f the respondents are to earn return on ideal resource of the purpose of investment.



SUGGESTIONS
In the previous chapter attempt was made to outline major findings arrived from the study. This
chapter provides suggestions based on findings outlined earlier, few of them are outlined here.
Investors have to go through proper analysis before investing in different stock exchange.

Risk pertains in every investment; investor must select and invest in different stock exchange.

Risk adverse investors can invest in large company scrips, because they will yield minimum
return in long run.

Investing in securities is not an easy job, so before making investment investor must update with
all the information available in the stock market.

When investors are not sure about their returns, they should obtain better guidance from their sub
brokers and personal consultants.



For a company which is fundamentally good, investors should not switch over to other
companies when their prices fall rather they have to purchase its shares to take advantage of
increased prices in future.

Investors can hold their investments for a multi period rather than a single period horizon.

CONCLUSION

It was in great experience to study study on NSE & BSE and more knowledge about shares and
how companies involved & shares their capital in bot share market.

On the basis of above stated study it has been assorted that with respect to technology, listing
fees, listing procedure, & listing requirements the National Stock Exchange has the edge. Despite
the fact that Bombay Stock Exchange is older & has high level of trading volume. However,
many market Players, Brokers, sub-brokers, trading firms etc. deal through the Bombay Stock
Exchange



LISTING
Listing means admission of securities of an issuer to trading privileges on a stock exchange
t hr ough a f or mal agr eement . The pr i me obj ect i ve of admi s s i on t o dealings on
the Exchange is to provide liquidity and marketability to securities, as also to provide a
mechanism for effective management of trading.
Li s t i n g o n NS E p r o v i d e s q u a l i f y i n g c o mp a n i e s wi t h t h e b r o a d e s t
a c c e s s t o investors, the greatest market depth and liquidity, cost-effective access to capital,
t he hi ghes t vi s i bi l i t y, t he f ai r es t pr i ci ng, and i nves t or benef i t s . NSE
t r adi ng t er mi nal s ar e now s i t uat ed i n var i ous towns across t he l engt h and
breath of India. Securities listed on the Exchange are required to fulfill the eligibility
criteria for l i s t i ng. Var i ous t ypes of securities of a c o mp a n y a r e t r a d e d
u n d e r a u n i q u e symbol and different series. NSE pl ays an i mpor t ant r ol e i n
hel pi ng an I ndi an company s acces s equi t y capi t al , by pr ovi di ng a l i qui d
and wel l - r egul at ed mar ket . NSE has about 800compani es l i s t ed
r epr es ent i ng t he l engt h, br eadt h and di ver s i t y of t he I ndi an economy which
includes from hi-tech to heavy industry, software, refinery, public- s ect or uni t s ,
i nf r as t r uct ur e, and f i nanci al s er v i ces . Li s t i ng on NSE r ai s es companys
profile among investors in India and abroad. Trade data is distributed worldwide through various
news-vending agencies.

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A COMPARATIVE STUDY OF NSE AND BSE &

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Comparative Study of NSE &amp; BSE

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A COMPARATIVE STUDY OF NSE AND BSE &

SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES

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Comparative Study of NSE & BSE

Comparative Study of NSE & BSE