presentation1 abdul hadi

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DR.RAFIQ ZAKARIA CAMPUS

MILLENNIUM INSTITUTE

OF MANAGEMENT

Topic:B.S.E. & N.S.E.

Presented by: Shaikh Abdul Hadi

Guide:Sayed Farhan Sir



STOCK EXCHANGE

Place where trading of shares is done in

terms of sale and purchase.

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 in securities.

Definition:



Functions of stock exchange

Marketability to Securities

Transferring Ownership

Providing Liquidity

Allocator of Capital

Safety to Investors

Mobilisation of SavingsPromoting industrial democracy



MAJOR DEPARTMENTS OF STOCK

EXCHANGE

ListingDepartment

OperationsD

epartmentComputer and EDP Department

Inspection and Audit Department

Monitoring Department

Investors ServiceDepatment



Bombay Stock Exchange

The oldest market not only in the country, but also in Asia.

BSE is the first stock exchange in the country which obtained permanent

recognition (in 1956) from the Government of India under the Securities

Contracts (Regulation) Act 1956

It migrated from the open outcry system to an online screen-based

order driven trading system in 1995



yBombay Stock Exchange is the oldest stockexchange in Asia What is now popularly known as

the BSE was established as "The Native Share &

Stock Brokers' Association" in 1875.

y world's number 1 exchange in the world in terms of

the number of listed companies (over 4900)

y It was recognised on a permanent basis on 1957.



OBJECTIVES OF B.S.E.

safeguard theinterest of

investing public

establish and

promote just practices in

securities.

promote, developand maintainwell-regulated

market for dealingin securities

To promote

industrialdevelopment inthe country

through efficientresource

mobilization



TRADING SYSTEM

In March 1995, the BSE introducedscreen based trading called BOLT.

BOLT is designed to get best bids and

offers from Jobbers¶ book as well as the

best buy and sell orders from order book

The capacity of the Tandem hardware

of BOLT is 5,00,000 trades per day (in 6

hours).

BOLT is now a nation wide network

connected with the main computer at

Mumbai through WA N.



National Stock Exchange (NSE)

The National Stock Exchange of India was promoted by leading

Financial institutions at the behest of the Government of India.

Incorporated in November 1992 as a tax-paying company

In April 1993, it was recognized as a stock exchange under the

Securities Contracts (Regulation) Act, 1956.



OBJECTIVES

To establish a nation wide trading facility for equities, debt instruments and hybrids.

To ensure equal access to investors all over the

country through appropriate communicationnetwork.

To provide a fair, efficient and transparentsecurities market to investors.

To enable shorter settlement cycle and book entrysettlement system.

To meet current international standards of securities market.



SENSEX

and

NIFTY ?



BSE Sensex

Sensex is an index, an index is basically an indicator.

The Sensex is an indicator of all the prices of the major

companies of the BSE(Bombay stock exchange)

SENSEX, first compiled in 1986

It consists of the 30 largest and most actively traded

stocks, representative of various sectors

BSE Sensex stands for Bombay Stock Exchange

Sensitive Index.



S&P CNX NIFTY

The National Stock Exchange's key index is the S&P CNX Nifty

(known as the Nifty).

S&P - Standard & Poor's.

CNX - Credit Rating Services of India Limited (CRISIL) and the

National Stock Exchange (NSE)

The base date selected for calculation of Nifty is November 3, 1995

It represents the 50 largest and most actively traded stocks of 22

various sectors on the National Stock Exchange.



Calculation of BSE Sensex

The formula for calculating the SENSEX

= (Sum of free flow market capital of 30 biggest

stocks of BSE)*Index Value in 1978-79/Market

Capital Value in 1978-79.

Note: The base value (index value) of theSensex is 100 on April 1, 1979, and the base

year of BSE-SENSEX is 1978-79.



Calculation of NSE Nifty

The formula for calculating the Nifty

= (Sum of free flow market cap of 50 biggest stocks

of NSE) * Index Value in 1995 / Market Cap Value in

1995.

Note: Base year is 1995 and base value (indexvalue) is 1000.NIFTY is calculated based on 50 stocks.



Thank you!!!!!

presentation1 abdul hadi

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