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Introduction to BSE
Bombay Stock Exchange Limited Bombay Stock Exchange Profile
The Bombay Stock Exchange is the largest of 22 exchanges in India, with over 6,000 listed companies. It is also the fifth largest exchange in the world, with market capitalization of $466 billion.
Members information
Transactions in any stock Exchange are executed by member brokers who deal with investor. A member of a stock exchange is an individual or a corporate body who holds the right to trade in the stocks listed on the exchange. An investor can buy or sell securities only through one of the members of the exchange. The Bombay stock exchange has, at present (2004), 678 members, of whom 192 are individual members and 486 are corporate members.
Types of Brokers
There are five types brokers of BSE. Foreign brokers: Industrial groups: Local bodies: Subsidiaries of Indian financial institutions and banks: Subsidiaries of Stock exchanges:
Broker/Dealer
All stock exchange members are brokers/dealers though not all firms in practice at in this down capacity. Opening a securities account with a broker involves establishing the clients identify and depositing the requisite amount to cover the initial security purchase.
Market Makers
Market makers fulfill traditional role of wholesaler. A jobber is a wholesaler and also acts as market maker offering dual quotes for scrip's. They may also specialize in select scrip's.
.Agency Brokers
Agency brokers act as an intermediary between the investor and the market maker. They provide advice and charge a fee for this service. Some stockbrokers, however, do not provide any advice and render their service as "execution-only" brokers that is, purely taking orders and carrying out deals but not providing advice.
There are four types of BSE Market Over the counter Exchange of India The Inter-Connected Stock Exchange of India Secondary Market
Groups of Shares
Over the counter exchange of India has been copromoted by the leading financial institutions of the country, namely, unit Trust of India, Industrial Development Bank of India, SBI Capital Market Limited, Industrial Finance Corporation of India, its subsidiaries.
The Inter-connected stock exchange of India Limited has been up at Mumbai in 1997. Inter-connected stock exchange is an association of the 14 regional stock exchanges Bangalore, Bhubaneswar, Cochin, Coimbatore, Guwahati, Hyderabad, Jaipur, Madhya Pradesh, Madras, Mangalore, Saurashta Kutch, Utaar Pradash, and Vadodara acting as a single exchange.
Secondary Market
The existence of secondary markets for shares is of advantage to both the company and the investors. As for the companies, a good performance of the company's shares in the capital market creates a good image or goodwill for the company so that it can use this market information successfully for its future finance requirements.
Groups of Shares
At the Bombay stock exchange, trading takes place in groups,. Group A- Specified shares Group B- Non-specified shares further classified into B1and B2 groups) Group C- Odd lots and permitted shares Group F- Debt market (fixed income securities) Group G- Government Securities Group Z- List of companies which have failed to comply with listing requirements and failed to resolve investor complaints.
Operation Hours
Beginning of the Day Session....8:00 - 9:00 Login Session....9:00 - 9:30 Trading Session....9:30 - 15:30 Position Transfer Session....15:30 - 15:50 Closing Session....15:50 - 16:05 Option Exercise Session....16:05 - 16:35 Margin Session....16:35 - 16:50 Query Session....16:50 - 17:35
Entering in to Agreement
Transacting
Specify to the Broker / Sub - broker, the exchange through which your trade is to be executed and maintain separate account for each exchange. Obtain a valid Contract Note from the Broker / Sub-broker within 24 hours of the execution of the trade.
Settlement
Member should pay the money or securities to the investor within 24 hours of the payout. Opt for buying and selling shares in demat form. For delivery of shares from demat account, give the Depository Participant (DP) 'Delivery out' instructions to transfer the same from the beneficiary account to the pool account of broker through whom shares and securities have been sold.
Rights of Investors
To receive all benefits/ material information declared for the investors by the Company. As an equity holder have a right to subscribe to further issue of capital by the Company. Brokerage not to exceed 2.5% of the contract price. Expect delivery of shares purchased/value of shares sold within 24 hours from pay-out.
Introduction
Bombay Stock Exchange Limited (BSE) which was founded in 1875 with 6 brokers in Mumbai has now grown into a giant institution with 874 registered brokers ( now referred to as Members) spread over 380 cities across the country. BSE's Wide Area Network (WAN) connecting over 8,000 BSE Online Trading (BOLT) System Trader Work Stations (TWS) is one of the largest of its kind in the country
Technology
BSE webx.co.in
BSE has also introduced the world's first centralized exchange based Internet trading system, bsewebx.co.in. The initiative enables investors anywhere in the world to trade on the BSE basis which has enabled it to achieve the BS7799 certification and the subsequent ISO 27001 certification. In addition, BSE has also been successful in maintaining systems and processes uptime of 99.99%.
BSE WAN BSE WAN connects approximately 2500 member offices within Mumbai and 29 major metros to the BSE systems. Leased MLLN circuits from MTNL / BSNL are provided with ISDN / TTML leased circuit backup. Around 550 circuits are of 2Mbps capacity and the rest are of 64Kbps / 128Kbps capacity.
VSATs: BSE's uses VSAT technology to cater to around 2000 locations spread across 400 cities. Services are provided from BSE's satellite hub at Mumbai. Regional Hubs:
The regional Hubs in 9 cities provide low cost local leased lines backed by high availability trunk backbone to BSE. Such regional technology hubs are commissioned in Ahmedabad, Bangalore, Chandigarh, Chennai, Delhi, Hyderabad, Indore, Jaipur, Kolkatta, Ludhiana, Pune and Rajkot.
Integrated Services
Member Services and Development Department is the single point interface for addressing the Members' requirements and questions. across products such as Cash, Derivatives and Internet Trading, and processes such as Trading, Technology, Clearing and Settlement, Surveillance and Inspection, Membership, Training and Corporate Information.
Relationship Managers Member Services and Development Department has an efficient mechanism of Relationship Managers. Each Manager maintains a database of and is responsible for providing comprehensive services to an assigned group of Members.. The Relationship Managers as such become a single-point contact for the Members, saving them efforts and valuable time..
Technical Help Desk The Systems Help Desk provides assistance on system related issues concerning trading on BOLT, DTSS, BSE web systems, etc. that are available through different data networks like. Managed Leased Data Network (MLDN) and Wide Area Network (WAN) through VSAT connectivity.
Chapter 6
Bombay Stock Exchange Broad Coast history
Following is the timeline on the rise and rise of the Sensex through Indian stock market history.
1830's Business on corporate stocks and shares in Bank and Cotton presses started in Bombay. 1860-1865 Cotton price bubble as a result of the American Civil War 10, 2008 The Sensex 10527, Oct 1870 - 90's Sharp increase in share prices of jute industries followed by a boom in tea stocks and coal 6000, February 11, 2000 On February 11, 2000, 11801.70, Oct 6, 2008