Final Stock Exchange

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    PRESENTED BY:-KSHITIJ

    SHAILJA

    NAMRATA

    SHAILENDRA

    PRASHANT

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    The Securities Contract (Regulation) Act, 1956

    [SCRA] defines,

    Stock Exchange as any body of individuals,whether incorporated or not, constituted for the

    purpose of assisting, regulating or controlling the

    business of buying, selling or dealing insecurities.

    A stock exchange is an entity which provides"trading" facilities for stock brokers and traders,to trade stocks and other securities.

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    Bombay Stock Exchange

    National Stock Exchange

    Regional Stock Exchanges

    Ludhiana Stock Exchange Madhya Pradesh Stock Exchange

    Madras Stock Exchange

    Magadh Stock Exchange

    Mangalore Stock Exchange

    Meerut Stock Exchange

    OTC Exchange Of India

    Pune Stock Exchange

    Saurashtra Kutch Stock Exchange

    Uttar Pradesh Stock Exchange

    Vadodara Stock Exchange Ahmadabad Stock Exchange

    Bangalore Stock Exchange

    Bhubaneshwar Stock Exchange

    Calcutta Stock Exchange

    Cochin Stock Exchange

    Coimbatore Stock Exchange

    Delhi Stock Exchange

    Guwahati Stock Exchange

    Hyderabad Stock Exchange

    Jaipur Stock Exchange

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    In buying and selling of securities Provides electronic trading platform. No need of physical location.

    In economy

    Raising capital for businesses

    Facilitating company growth

    Mobilizing savings for investment

    Profit sharing

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    Issuers of securities

    Investors in securities Intermediaries, such as brokers, sub-brokers, etc.

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    Securities &

    Exchange Board

    of India(SEBI)

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    It was constituted andmade a statutory bodyby SEBI Act,1992.WhenSEBI came into effect,

    some of the powers andfunctions exercised bythe Central Governmentin respect of

    regulations of stockexchanges weretransferred to the SEBI.

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    According to Section 3 of SEBI Act, 1992,statutory powers of SEBI are listed as below:

    (a) Regulating the securities market

    (b) Protecting the interests of investors insecurities

    (c) Promoting the development of thesecurities market

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    NATIONAL

    STOCK

    EXCHANGE(NSE)

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    Promoted by leading financial institutionsat the behest of the Government of India.

    Incorporated in November 1992 as a tax-

    paying company.

    In April 1993, it was recognized as a stockexchange under the Securities Contracts(Regulation) Act, 1956.

    In October 1995, National Stock Exchangebecame the largest stock exchange in thecountry

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    Currently, NSE has the following majorsegments of the capital market:

    Equity & Commodity marketFutures and Options (Derivatives market)Retail Debt MarketWholesale Debt Market

    Currency futures. EtcLaunched Interest rate futures contracts

    on Aug 31 2009

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    BOMBAY STOCK

    EXCHANGE

    (BSE)

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    oldest market and number of listedcompanies is 4900 as of Feb 2010.

    First stock exchange in the country which

    obtained permanent recognition (in 1956)from the Government of India under theSecurities Contracts (Regulation) Act 1956

    It migrated from the open outcry systemto an online screen-based order driventrading system in 1995

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    BSE is corporatized and demutualisedentity incorporated under the provisionsof the Companies Act, 1956, pursuant to

    the BSE (Corporatization andDemutualisation) Scheme, 2005 notifiedby the Securities and Exchange Board ofIndia (SEBI).

    World's 3rd in terms of the number oflisted companies and the world's 5th interms of amount.

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    The worth of a company in terms of its shareswhich is calculated by :-

    Current share price (market price) * number oflisted shares that where issued by the company.

    Ex.-Company A has 150 shares in issue. Thecurrent market price is Rs. 100.

    The market capitalisation of company A is Rs.

    15000.

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    BSE Sensex stands for Bombay Stock ExchangeSensitive Index.

    The Sensex is an indicator of all the prices of themajor companies of the BSE.

    SENSEX, first compiled in 1986.It consists of the

    30 largest and most actively traded stocks,representing various sectors.

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    The National Stock Exchange's key index isthe S&P CNX Nifty (known as the Nifty).

    S&P - Standard & Poor's.

    CNX - Credit Rating Services of IndiaLimited (CRISIL) and

    the National Stock Exchange (NSE)

    The base date selected for calculation ofNifty is November 3, 1995

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    Sensex is calculated using the "Free-floatMarket Capitalization methodology.

    Free-float

    The open market shares that are free fortrading by anyone, are called the free-float shares.

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    = (Sum of free flow market cap of 30 biggeststocks of BSE) * Index Value in 1978-79/Market Cap in 1978-79.

    Note: The base value (index value) of theSensex is 100 on April 1, 1979, and the baseyear of BSE-SENSEX is 1978-79.

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    Same method is used for calculating NSENifty

    Base year is 1995 and base value (index

    value) is 1000.NIFTY is calculated based on 50 stocks.

    The formula for calculating the Nifty

    = (Sum of free flow market cap of 50biggest stocks of NSE) * Index Value in1995 / Market Cap Value in 1995.

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    BASIS BSE NSE

    Main Index BSE Sensex S&P CNX Nifty

    Full Name Bombay Stock ExchangeLimited

    National Stock Exchangeof India

    Key Person Mr. Madhu Kannan (MD &CEO)

    Mr. Ravi Narain (ManagingDirector)

    Claim to fame Oldest stock exchange inAsia

    Largest stock exchange inIndia

    Established in 1875 1992

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    BSE1) Lowest :- January 7, 2009 ---

    749.05 points

    2) Highest :- January 8, 2008---

    21078 points

    At present, the number of shares traded each month on the BSE isin the range of 40 - 50 million. The total market capitalization is$1.1 trillion.

    Ranks 04th in the world, in terms of number of transactions

    executed on a stock exchange, after NASDAQ,NYSE and ShanghaiSE.

    Ranks 03rd in the world, in terms of no. of contracts traded, inStock index Futures

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    Rakesh Jhunjhunwala (tagged as 'India's WarrenBuffett ) is an Indian Chartered Accountant byqualification but an investor / trader byprofession.

    In 2010, Forbes rated him as India's 51st and theworld's #1062 richest man with wealth of $1.0billion.

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