Professional Documents
Culture Documents
Financial
Services- Equity
services
Abhimanyu
Pradeep
Pratip
Rahul
Thomas
Stock Exchange
Organizedand regulated financial market where
securities (bonds,notes,shares) areboughtand sold
atprices governed by theforcesofdemand and supply.
Functions
Maintains active trading
Increase liquidity and marketability of the shares
Functions
Dissemination of Information
Various publications
Performance indicators
Price reflect the performance of the company
Self Regulation
Monitor the integrity of the members, companies
and clients
Settlement of disputes
Scams
A. Harshad Mehta
. The 1992 security scam and its exposure
B. Ketan Parekh
. The exposure of the dupe
SEBI - INTRODUCTION
Securities and Exchange Board of India is the
regulator for the securities market in India.
Main Function Stop Fraudulent activities in Stock
Market
Head Quarters : Mumbai
Website : www.sebi.gov.in
Chairman : U.K.Sinha
1992
Statutory
power given
by GOI
1988- Established
1995
Addition
al Power
given
Why SEBI?
India is an information weak market
Restoring investors confidence who have been
beaten by repeated scams
Protecting, developing and regulating the
Securities market
Regulates the operations of Depositories, FIIs,
Credit rating agencies and other intermediaries
Role of SEBI
To meet the needs of three groups
Issuers Place to raise finance
Investors - Information
Intermediaries - Competitive professional market
Achievements
Transforming the markets from paper to electronic
Reducing the settlement date to T+2
Location
Mumbai is the business capital of India
Popularity of stocks among Gujaratis, Sindhis,
Marwaris brought volume of trade for BSE
Mumbai has the only financial hub in India
Mumbai ensured higher success of IPOs
Electronics trading reduced significance for
multiple exchanges
Companies reluctant to pay multiple listing fees if
it is not profitable
Formation of NSE
NSE was established in 1992 as the first demutualized
electronic exchange in the country
NSE was set up by a group of DFI at the behest of the
government of India to bring transparency to the Indian
capital market after 1992 scam
NSE separated ownership and management in the
exchange underSEBI's supervision
NSE ensured that anyone who was qualified, experienced
and met minimum financial requirements was allowed
totrade
Electronic Trading
NSE started electronic platform based trading
The power started to shift from brokers to
institutional investors
High tech systems of BSE and NSE allow Algo
trading and HFT
In 1994, when trading started, NSE technology
was handling 2 orders a second. This increased to
60 orders a second in 2001. Today NSE can handle
1, 60,000 orders/messages per second, with
infinite ability to scale up at short notice on
demand
Use of technology reduced brokerage cost and
exchange fee
F&O Introduction
NSE was the first to launch future and options
trading in India at 2000
BSE started F&O trading at 2008
NSE has the largest basket of stock in India that
can be traded in F&O
No regional stock market has ever had F&O
trading
Different investment products like currency
derivatives increased liquidity of NSE
1993 blast
Most of the famous stock market scams were in BSE
Governments intention was to promote NSE as the only
stock exchange
BSE was a broker run exchange
BSE had ring trading like other regional stock
exchanges
BSE was the first stock exchange in the world to be
attacked by terrorists
The event gave BSE huge publicity, exposure,
sympathy and free press
Main Index
BSE Sensex
Index value
Location
Mumbai, India
Mumbai, India
Claim to fame
Trading Platform
Demise of RSEs
May 30, 2012 Sebi circular
Earn Rs 1,000 crore as annual turnover and have a net worth
of Rs 100 crore or more by May 30, 2014, failing which the
exchanges should consider "exit" options
April 29, 2014
15 of the 20 stock exchanges in the country have opted to
exit the business altogether
Of the remaining 15 stock exchanges, 11 have already
applied to exit the business
The Madras Stock Exchange is convening meeting for
passing the resolution for an exit
Ahmedabad Stock Exchange and Delhi Stock Exchange are
also convening the meeting for an exit
The MPSE (Madhya Pradesh Stock Exchange Ltd) is also
working on an exit