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Bse and nse

Nov 19, 2014

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By Chellakannan.k.p

BSEy Bombay Stock Exchange is the

oldest stock exchange 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

TRADING SYSTEM In March 1995, the BSE introduced

screen 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 WAN.

SURVEILLANCE SYSTEM1. Circuit Filters 2. Margina. b. c. d.

Special Margin Concentration Margin Additional Volatility Margin Ad-hoc Margin

PROTECTION AGAINST DEFAULT Customers Protection fund. Trade Guarantee fund. Brokers contingency fund. Insurance cover. Investors grievances.

NSE NSE

of India became operational in the capital market on 3rd November 1994 in Mumbai. The genesis of the NSE in the recommendations of the Pherwani Committee.

DEFECTS IN INDIAN STOCK MARKET NSE was recommended because of five major defects in

the Indian stock market. Lack of liquidity in terms of depth and breadth. Lack of ability to develop markets for debt. Lack of Infrastructure facilities. Lack of transparency. Lack of single market due to the inability of various stock exchanges to function cohesively with the legal structure.

OBJECTIVESTo establish a nation wide trading facility for equities, debt instruments and hybrids. To ensure equal access to investors all over the country through appropriate communication network. To provide a fair, efficient and transparent securities market to investors. To enable shorter settlement cycle and book entry settlement system. To meet current international standards of securities market.

CAPITAL MARKET SEGMENT The companies with the minimum paid up capital of Rs.

10 crores are listed in NSE. The software in the NSE trading system is known as National Exchange for Automated Trading (NEAT). The trading members computers are connected with the central computer at NSE through leased lines and VSAT. The communication is carried out with the help of the satellites.

TYPES OF ORDER Time based orders A good till day order Immediate or cancel order Price based order Stop loss order

ADVANTAGES Wider accessibility Screen based trading Non-disclosure of the trading members identity Transparent transaction Marching of orders Effective settlement of corporate benefit Trading in dematerialized for SG L facility in the debt market

Recent Trends in NSE Expansion Quality More liquidity Less brokerage Insurance against risk Quick clearing and settlement Foreign institutional investors trading

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