Professional Documents
Culture Documents
of 19th century.
m After the American Civil War(1860-61) due to the
share mania of the public, no. of brokers dealings
in share increased. So they organized an informal
association in Mumbai, µ The Native Stock &
Share Brokers Associationµ in 1875.
m At the end of World War, growth of S.E suffered a
set back bcz of the Worldwide depression.
m Securities & Contract Regulation Act, 1956 gave
power to central government to regulate the stock
exchange
m The Stock Exchanges in Mumbai, Calcutta,
Chennai, Ahmedabad, Delhi, Hyderabad &
Indore were recognized by SCR Act.
m At present we have 23 Stock Exchanges & 21 of
them had hardware & software compliant to
solve Y2k Problem.
m Till recent past, floor trading took place in all
Stock Exchanges.
m Maintains active trading.
m Fixation of prices.
m Ensure safe & fare dealings.
m Aid in financing the industry.
m Dissemination of information.
m Performance inducer
m Self-regulatory organization.
m Ahmedabad Stock Exchange m Jaipur Stock Exchange
m Bangalore Stock Exchange m Kanpur Stock Exchange
m Bhobaneshwat Stock Exchangem Ludhiana Stock Exchange
m Bombay Stock Exchange m Madras Stock Exchange
m Calcutta Stock Exchange m Magadh Stock Exchange
m Cochin Stock Exchange m Mangalore Stock Exchange
m Coimbatore Stock Exchange m Pune Stock Exchange
m Delhi Stock Exchange m Saurashtra Stock Exchange
m Guwahati Stock Exchange m Vadodhara Stock Exchange
m Hyderabad Stock Exchange m NSE
m Indore Stock Exchange m OTCEI
m Inter connected Stock
Exchange
The Securities Contract Act of 1956 has provided
uniform regulation for the admission of members in
the Stock Exchanges.
m Minimum age prescribed for the members is 21yrs.
m She/he should be an Indian citizen.
m He should be neither a bankrupt nor compounded
with the creditors.
m He should not be convicted for fraud or dishonesty.
m He should not be engaged in any other business
connected with the company.
m He should not be defaulter of any Stock Exchange.
m Minimum required educational qualification is a
pass in 12th standard examination.
m A member, if he has completed five years of
membership in a Stock Exchange can apply for
membership in other Stock Exchanges.
m If he applies before the completion of five years
he has to relinquish the membership of the
present membership before accepting the others.
m Online trading started in India on 1st April 2000
with 79 members seeking permission for online
trading.
m The SEBI committees on internet based
securities trading services has allowed the net to
be used as an Order Routing System(ORS).
m Under the ORS the client enters his
requirement(Security, Quantity, Price, Buy/Sell)
in broker·s site.
m The client receives a conformation on execution of
order.
m The customer·s portfolio & ledger accounts get
updated to reflect the transaction.
m The user should have the user id, password, demat a/c
& bank a/c.
m The client has to enter stock code & other parameters
such as quantity & price of the scrip on the place
order window.
m The client can review the order placed by clicking the
review option.
m Satisfactory order are sent by clicking the send
option.
m The client receives an order conformation message
with order no. & value of the order.
m If order is rejected by the broker or SE, a related
message appears at the bottom of the screen. The
time taken to execute the order is 10 sec.
m Provides total transparancy b/w a broker & an
invester.
m Confirmation & execution of trade reaches within 30
sec.
m Origin in 1875.
m Recognised as permanent basis in 1957.
m Objectives
m Transparent transactions.
m Matching of order.
m More liquidity
m Less brokrage
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