National Stock Exchange

By – Mr. Arihant ZunjarvadMBA IIIrd Sem,

Introduction To NSE

• National Stock Exchange• CEO: J. Ravi chandran (Dec, 2016 - )• Currency: Indian rupee (₹)• Founded: 1992, Mumbai• Headquarters: Mumbai• Type of business: Stock exchange

Products Of NSE

• Equity• Debt• G – Sec• F & Os• Commodities• Bullion

Equity• The securities market has two interdependent and inseparable segments,

the new issues (primary) market and the stock (secondary) market. • The primary market provides the channel for creation and sale of new

securities, while the secondary market deals in securities previously issued.

• The Stock market or Equities market is where listed securities are traded in the secondary market. Currently more than 1300 securities are available for trading on the Exchange.

• The Equity market also known as the stock market is where the listed securities are traded in the secondary market.

• Equity is a common stock and it gives some rights.• Trading1. Investment and Trading

Equity

• History and Present situation in the Market• As on Jan 04, 2017 16:00:00 IST• Traded Volume (shares in lakh) 9,985.• Traded Value (Rs crores) 17,475.43

Debt

• The erstwhile Wholesale Debt Market (WDM) segment of the Exchange commenced operations on June 30, 1994. This provided the first formal screen-based trading facility for the debt market in the country. It has now been merged under the New Debt Market as the Negotiated Trade Reporting Platform.

Market Timings• Settlement• Monday to Friday• Other Day Settlement (Government Securities)• 09.00 hrs to 17.15 hrs• Same Day and Other Day Settlement (Non-Government Securities)• 09.00 hrs to 17.45 hrs

• Activities in the Negotiated Trade Reporting Platform is divided into two phases as under:

• Market Open Phase• The system allows for inquiries of the following activities when the market is

open for trading:• Order Entry• Order Modification• Order Cancellation• Trade Cancellation• Post Market Phase (also called SURCON)• During the period of SURCON (SURveillance and CONtrol) a trading member

gets only inquiry access with a facility to request for trade cancellation. On completion of SURCON the system processes data and gets the system ready for the next day.

Derivatives

• Equity Derivatives• Currency Derivatives• NSE and Futures

Arguments against derivatives are as follows:

SpeculationMarket efficiencyVolatilityCounter party riskLiquidity risk

Risk Mitigation Measures

Natural Hedging

Hedging by Contracts

Currency

denomi-

nation

Netting and

offsetting

Leading and

lagging Definiti

on

FORWARDS

OTHERS

OPTIONS

FUTURES

Participants in Derivatives Market

Trading participants:Hedgers Speculators Arbitrageurs

Intermediary participants:BrokersMarket markers and jobbers

• Institutional framework:ExchangeClearing house

BUYER (TRADE

R)

SELLER (TRADE

R)

BROKER

(MEMBER)

BROKER

(MEMBER)

CLEARING

HOUSE

TRANSACTION

PURCHASE ORDER SALES ORDER

Trading Process

Equity Derivatives

Product No. of contracts Turnover (cr.)* Premium Turnover (cr.)

Index Futures 1,73,825 11,522.21 -

Vol Futures 0 0.00 -

Stock Futures 4,54,393 29,579.22 -

Index Options 36,35,690 2,52,394.46 1,014.84

Stock Options 2,41,122 16,369.49 333.06

F&O Total 45,05,030 3,09,865.38 1,347.90

Business Growth in NBF Segment

Year Volume (Contracts)

Turnover ( cr.)

2016-2017 1,07,85,331 2,23,893.02

2015-2016 2,60,56,481 5,26,424.57

2014-2015 2,05,87,036 4,21,558.28

2013-2014 15,02,148 30,172.89

2012-2013 12 0.22

2011-2012 2,15,200 3,959.21

2010-2011 3,348 61.90

2009-2010 1,60,894 2,974.59

CommoditiesMulti Commodity Exchange of India Ltd

• Type - Public• Traded as - BSE: 534091• Industry - Commodity Exchange• Founded - 10 Nov. 2003• Headquarters - Mumbai, India• Key people - Mr. Satyananda Mishra, IAS (Retd.), Chairman; Mr.

Mrugank Paranjape, Managing Director and CEO; Mr. P. K. Singhal, President and Whole Time Director

• Products - Commodity futures• Revenue - ₹ 3326.40 million (April 2014 to March 2015) ( Source:

Annual Report 2014-15)• Website - www.mcxindia.com

Products

• Metals(Aluminium, Aluminium Mini, Copper, Copper Mini,

Lead, Lead Mini, Nickel, Nickel Mini, Zinc, Zinc Mini)• Bullion(Gold, Gold Mini, Gold Guinea, Gold Petal, Gold Petal

( New Delhi) , Gold Global , Silver, Silver Mini, Silver Micro , Silver 1000)

• Agro Commodities(Cardamom, Cotton, Crude Palm Oil, Kapas, Mentha Oil)

• Natural Gas (Brent Crude Oil, Crude Oil, Crude Oil Mini,

Natural Gas)

National Commodities Dirivatives Exchanges

• Type : Public• Industry : Business services• Founded :15 December 2003• Headquarters : Mumbai, Maharashtra, India• Key people : Samir Shah, MD & CEO (in

charge)• Products :Futures• Website : www.ncdex.com

Products (Agriculture)Cereals and PulsesBajraBarleyChanaChana 1 MT/2 MTMaize Kharif- Feed/Industrial GradeMaize Rabi- Feed/Industrial GradeWheat

FibresV-797 kapasShankar kapas29 mm Cotton

Guar ComplexGuar Seed 2MTGuar Seed 10 MTGuar Gum

Plantation ProductsRubber

OthersPotatoOil and Oil seedsCotton seed oilcakeSoy BeanRefined soy oilMustard SeedCrude Palm Oil

SoftSugar MSugar SGur SpicesPepperTurmericJEERAChilliCoriander

Non - AgricultureMetalsSteel long CommercialSteelCopperPrecious MetalsGoldGold (100 gms)Gold HedgeGold Hedge (100 gms)SilverSilver HedgeSilver Hedge 5 Kgs

BrochuresProduct BrochuresCastorCerealsChanaCottonCotton Seed Oil CakeCrude OilGoldGuar ComplexRape Mustard SeedRefined Soya

Soya BeanPVCCrOilSilverSpices ComplexSugarude Palm oil

Fundamental BrochuresFundamental Brochures - Part 1Fundamental Brochures - Part 2

Business Growth in Negotiated Platform

YearMarket

Capitalisation

(crores)

Trading Days

Number of Trades

Net Traded Value

(crores)

Average Daily Value

(crores)

Average Trade Size

(crores)

2016-2017 71,44,431 181 13,520 5,43,151.99 3,000.84 40.17

2015-2016 59,65,056 241 14,676 5,69,494.67 2,363.05 38.80

2007-2008 21,23,346 248 16,179 282,317.02 1,138.38 17.45

2006-2007 17,84,801 244 19,575 2,19,106.47 897.98 11.19

1998-1999 4,11,470 289 16,092 1,05,469.13 364.95 6.55

1997-1998 3,43,191 289 16,821 1,11,263.28 384.99 6.61

1996-1997 2,92,772 291 7,804 42,277.59 145.28 5.42

1995-1996 2,07,783 291 2,991 11,867.68 40.78 3.97

1994-1995 1,58,181 223 1,021 6,781.15 30.41 6.64

Forward Market Commission• The Forward Markets Commission (FMC) is the chief

regulator of commodity futures markets in India. • As of July 2014, it regulated Rs 17 trillion[1] worth of

commodity trades in India. • It is headquartered in Mumbai and this financial regulatory

agency is overseen by the Ministry of Finance. • The Commission allows commodity trading in 22

exchanges in India, of which 6 are national.• On 28 September 2015 the FMC was merged with the

Securities and Exchange Board of India (SEBI)

The three members of the Commission are;

• Shri Ramesh Abhishek (Chairman) - Appointed 24 September 2012

• M. Mathisekaran• Shri Nagendraa Parakh - appointed July 2013•

Responsibilities and functions• To advise the Central Government in respect of the recognition or the withdrawal of

recognition from any association or in respect of any other matter arising out of the administration of the Forward Contracts (Regulation) Act 1952.

• To keep forward markets under observation and to take such action in relation to them, as it may consider necessary, in exercise of the powers assigned to it by or under the Act.

• To collect and whenever the Commission thinks it necessary, to publish information regarding the trading conditions in respect of goods to which any of the provisions of the act is made applicable, including information regarding supply, demand and prices, and to submit to the Central Government, periodical reports on the working of forward markets relating to such goods;

• To make recommendations generally with a view to improving the organization and working of forward markets;

• To undertake the inspection of the accounts and other documents of any recognized association or registered association or any member of such association whenever it considers it necessary.

• It allows futures trading in 23 fibers and manufacturers, 15 spices, 44 edible oils, 6 pulses, 4 energy products, single vegetable, 20 metal futures and 33 other futures.

THANK YOU…

Any doubts plz…?