Comparative Study of Bse & Nse (1) Shiva Sir

8/20/2019 Comparative Study of Bse & Nse (1) Shiva Sir

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DESIGN OF STUDY

Objectives

• To study importance of Bse & Nse in today’s world.

• To find out investors preference regarding the same.

• To find out market capitalization of both Bse & Nse.

Sources of Data

The data was collected by visiting various websites which helped me in

collecting data regarding BS & NS and its comparison thereby

leading to successful completion of my pro!ect.

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Introduction

" stock market or equity market is a public #a loose network of

economic transactions$ not a physical facility or discrete entity% for the trading

of company stock #shares% and derivatives at an agreed price these are

securities listed on a stock e'change as well as those only traded privately.

The size of the world stock market was estimated at about ()*.* trillion

at the start of +ctober ,--. The total world derivatives market has been

estimated at about (/01 trillion face or nominal value$ 11 times the size of the

entire world economy. The value of the derivatives market$ because it is stated

in terms of notional values$ cannot be directly compared to a stock or a fi'ed

income security$ which traditionally refers to an actual value. 2oreover$ the

vast ma!ority of derivatives 3cancel3 each other out. 2any such relatively

illi4uid securities are valued as marked to model$ rather than an actual market

price.

The stocks are listed and traded on stock e'changes which are entities

of a corporation or mutual organization specialized in the business of bringing

buyers and sellers of the organizations to a listing of stocks and securities

together. The largest stock market in the 5nited States$ by market cap$ is the

New 6ork Stock 'change$ N6S. 2a!or uropean e'amples of stock e'changes include the 7ondon Stock 'change$ 8aris Bourse$etc. "sian

e'amples include the Tokyo Stock 'change$ the 9ong :ong Stock

'change$ the Shanghai Stock 'change$ and the Bombay Stock 'change.

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;n 7atin "merica$ there are such e'changes as the B2&< Bovespa and the

B2=.

istory of Stock !arket

;n 1,th century


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invest in business ventures and get a share of their profits C or losses. ;n 1*-,$

the utch ast ;ndia Dompany issued the first share on the "msterdam Stock

'change. ;t was the first company to issue stocks and bonds.

The "msterdam Stock 'change #or "msterdam Beurs% is also said to

have been the first stock e'change to introduce continuous trade in the early

1/th century. The utch >pioneered short selling$ option trading$ debtEe4uity

swaps$ merchant banking$ unit trusts and other speculative instruments$ much

as we know them>. There are now stock markets in virtually every developed

and most developing economies$ with the world3s biggest market being in the

5nited States$ 5nited :ingdom$ Fapan$ ;ndia$ Dhina$ Danada$ ?ermany$


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!arket "artici"ants

" few decades ago$ worldwide$ buyers and sellers were individual

investors$ such as wealthy businessmen$ usually with long family histories to

particular corporations. +ver time$ markets have become more

>institutionalized> buyers and sellers are largely institutions.

The rise of the institutional investor has brought with it someimprovements in market operations. Thus$ the government was responsible

for >fi'ed> #and e'orbitant% fees being markedly reduced for the 3small3

investor$ but only after the large institutions had managed to break the

brokers3 solid front on fees. #They then went to 3negotiated3 fees$ but only for

large institution.%

9owever$ corporate governance #at least in the Gest% has been very

much adversely affected by the rise of #largely 3absentee3% institutional

3owners3.

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Importance of stock market

Function and "ur"ose

The stock market is one of the most important sources for companies

to raise money. This allows businesses to be publicly traded$ or raise

additional capital for e'pansion by selling shares of ownership of the

company in a public market. The li4uidity that an e'change provides affords

investors the ability to 4uickly and easily sell securities. This is an attractive

feature of investing in stocks$ compared to other less li4uid investments such

as real estate.

9istory has shown that the price of shares and other assets is animportant part of the dynamics of economic activity$ and can influence or be

an indicator of social mood. "n economy where the stock market is on the

rise is considered to be an upEandEcoming economy. ;n fact$ the stock market

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is often considered the primary indicator of a country3s economic strength and

development.

Hising share prices$ for instance$ tend to be associated with increased

business investment and vice versa. Share prices also affect the wealth of

households and their consumption. Therefore$ central banks tend to keep an

eye on the control and behavior of the stock market and$ in general$ on the

smooth operation of financial system functions.


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flows directly to the financial markets instead of being routed via the

traditional bank lending and deposit operations. The general public3s

heightened interest in investing in the stock market$ either directly or through

mutual funds$ has been an important component of this process.

Statistics show that in recent decades shares have made up an

increasingly large proportion of households3 financial assets in many

countries. ;n the 10/-s$ in Sweden$ deposit accounts and other very li4uid

assets with little risk made up almost *- percent of households3 financial

wealth$ compared to less than ,- percent in the ,---s. The ma!or part of thisad!ustment in financial portfolios has gone directly to shares but a good deal

now takes the form of various kinds of institutional investment for groups of

individuals$ e.g.$ pension funds$ mutual funds$ hedge funds$ insurance

investment of premiums$ etc.

The trend towards forms of saving with a higher risk has been

accentuated by new rules for most funds and insurance$ permitting a higher

proportion of shares to bonds. Similar tendencies are to be found in other

industrialized countries. ;n all developed economic systems$ such as the

uropean 5nion$ the 5nited States$ Fapan and other developed nations$ the

trend has been the sameJ saving has moved away from traditional

#government insured% bank deposits to more risky securities of one sort or

another.

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T%e stock market& individua$ investors& and financia$ risk

Hiskier longEterm saving re4uires that an individual possess the ability

to manage the associated increased risks. Stock prices fluctuate widely$ in

marked contrast to the stability of #government insured% bank deposits or

bonds. This is something that could affect not only the individual investor or

household$ but also the economy on a large scale. The following deals with

some of the risks of the financial sector in general and the stock market in

particular. This is certainly more important now that so many newcomers

have entered the stock market$ or have ac4uired other 3risky3 investments

#such as 3investment3 property$ i.e.$ real estate and collectables%.

Gith each passing year$ the noise level in the stock market rises.

Television commentators$ financial writers$ analysts$ and market strategists

are all overtaking each other to get investors3 attention. "t the same time$

individual investors$ immersed in chat rooms and message boards$ are

e'changing 4uestionable and often misleading tips. 6et$ despite all this

available information$ investors find it increasingly difficult to profit. Stock

prices skyrocket with little reason$ then

plummet !ust as 4uickly$ and people who have turned to investing for their

children3s education and their own retirement become frightened. Sometimes

there appears to be no rhyme or reason to the market$ only folly.

This is a 4uote from the preface to a published biography about the

longEterm valueEoriented stock investor Garren Buffett. Buffett began his

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career with (1--$ and (1--$--- from seven limited partners consisting of

Buffett3s family and friends. +ver the years he has built himself a multiE

billionEdollar fortune. The 4uote illustrates some of what has been happening

in the stock market during the end of the ,-th century and the beginning of

the ,1st century.

T%e be%avior of t%e stock market


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as the stock market crash in 10/$ when the ow Fones inde' plummeted

,,.* percentKthe largestEever oneEday fall in the 5nited States.

This event demonstrated that share prices can fall dramatically even

though$ to this day$ it is impossible to fi' a generally agreed upon definite

causeJ a thorough search failed to detect any 3reasonable3 development that

might have accounted for the crash. #But note that such events are predicted

to occur strictly by chance$ although very rarely.% ;t seems also to be the case

more generally that many price movements #beyond that which are predicted

to occur 3randomly3% are not occasioned by new information a study of thefifty largest oneEday share price movements in the 5nited States in the postE

war period seems to confirm this.

9owever$ a 3soft3 29 has emerged which does not re4uire that prices

remain at or near e4uilibrium$ but only that market participants not be able to

systematically profit from any momentary market 3inefficiencies3. 2oreover$

while 29 predicts that all price movement #in the absence of change in

fundamental information% is random #i.e.$ nonEtrending%$ many studies have

shown a marked tendency for the stock market to trend over time periods of

weeks or longer. =arious e'planations for such large and apparently nonE

random price movements have been promulgated.


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+ther research has shown that psychological factors may result in

exaggerated #statistically anomalous% stock price movements #contrary to

29 which assumes such behaviors 3cancel out3%. 8sychological research has

demonstrated that people are predisposed to 3seeing3 patterns$ and often will

perceive a pattern in what is$ in fact$ !ust noise. #Something like seeing

familiar shapes in clouds or ink blots.% ;n the present conte't this means that a

succession of good news items about a company may lead investors to

overreact positively #un!ustifiably driving the price up%. " period of goodreturns also boosts the investor3s selfEconfidence$ reducing his #psychological%

risk threshold.

"nother phenomenonKalso from psychologyKthat works against an

ob!ective assessment is group thinking . "s social animals$ it is not easy to

stick to an opinion that differs markedly from that of a ma!ority of the group.

"n e'ample with which one may be familiar is the reluctance to enter a

restaurant that is empty people generally prefer to have their opinion

validated by those of others in the group.

;n one paper the authors draw an analogy with gambling. ;n normal

times the market behaves like a game of roulette the probabilities are known

and largely independent of the investment decisions of the different players.

;n times of market stress$ however$ the game becomes more like poker

#herding behavior takes over%. The players now must give heavy weight to the

psychology of other investors and how they are likely to react

psychologically.

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The stock market$ as with any other business$ is 4uite unforgiving of

amateurs. ;ne'perienced investors rarely get the assistance and support they

need.

;n the period running up to the 10/ crash$ less than 1 percent of the

analyst3s recommendations had been to sell #and even during the ,--- C ,--,

bear market$ the average did not rise above @ LL%. ;n the run up to ,---$ the

media amplified the general euphoria$ with reports of rapidly rising share

prices and the notion that large sums of money could be 4uickly earned in the

soEcalled new economy stock market. #"nd later amplified the gloom which

descended during the ,--- C ,--, bear market$ so that by summer of ,--,$

predictions of a +G average below @--- were 4uite common.%

Irrationa$ be%avior

Sometimes the market seems to react irrationally to economic or financial news$ even if that news is likely to have no real effect on the

fundamental value of securities itself. But this may be more apparent than

real$ since often such news has been anticipated$ and a counterreaction may

occur if the news is better #or worse% than e'pected. Therefore$ the stock

market may be swayed in either direction by press releases$ rumors$ euphoria

and mass panic but generally only briefly$ as more e'perienced investors

#especially the hedge funds% 4uickly rally to take advantage of even the

slightest$ momentary hysteria.

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+ver the shortEterm$ stocks and other securities can be battered or

buoyed by any number of fast marketEchanging events$ making the stock

market behavior difficult to predict. motions can drive prices up and down$

people are generally not as rational as they think$ and the reasons for buying

and selling are generally obscure. Behaviorists argue that investors often

behave 3irrationally3 when making investment decisions thereby incorrectly

pricing securities$ which causes market

inefficiencies$ which$ in turn$ are opportunities to make money. 9owever$ the

whole notion of 29 is that these nonErational reactions to information

cancel out$ leaving the prices of stocks rationally determined.

Stock market inde'

The movements of the prices in a market or section of a market are

captured in price indices called stock market indices$ of which there are many$

e.g.$ the S&8$ the


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e'changeEtraded funds #Tcovering a short position.> This strategy may also be used

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http://en.wikipedia.org/wiki/Equity_swaphttp://en.wikipedia.org/wiki/Single-stock_futureshttp://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Futures_exchangehttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Derivatives_markethttp://en.wikipedia.org/wiki/Single-stock_futureshttp://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Futures_exchangehttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Derivatives_markethttp://en.wikipedia.org/wiki/Equity_swap


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by unscrupulous traders in illi4uid or thinly traded markets to artificially

lower the price of a stock. 9ence most markets either prevent short selling or

place restrictions on when and how a short sale can occur. The practice of

naked shorting is illegal in most #but not all% stock markets.

!ar(in buyin(

;n margin buying$ the trader borrows money #at interest% to buy a stock

and hopes for it to rise. 2ost industrialized countries have regulations that

re4uire that if the borrowing is based on collateral from other stocks the trader

owns outright$ it can be a ma'imum of a certain percentage of those other stocks3 value. ;n the 5nited States$ the margin re4uirements have been @- LL

for many years #that is$

if you want to make a (1--- investment$ you need to put up (@--$ and there

is often a maintenance margin below the (@--%.

" margin call is made if the total value of the investor3s account cannot

support the loss of the trade. #5pon a decline in the value of the margined

securities additional funds may be re4uired to maintain the account3s e4uity$

and with or without notice the margined security or any others within the

account may be sold by the brokerage to protect its loan position. The

investor is responsible for any shortfall following such forced sales.%

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Hegulation of margin re4uirements #by the 9ow do ; make money investing> There are many different

approaches two basic methods are classified as either fundamental analysis

or technical analysis.


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through the use of charts and 4uantitative techni4ues to attempt to forecast

price trends regardless of the company3s financial prospects. +ne e'ample of

a technical strategy is the Trend following method$ used by Fohn G. 9enry

and d Seykota$ which uses price patterns$ utilizes strict money management

and is also rooted in risk control and diversification.

"dditionally$ many choose to invest via the inde' method. ;n this

method$ one holds a weighted or unweighted portfolio consisting of the entire

stock market or some segment of the stock market #such as the S&8 @-- or

Gilshire @---%. The principal aim of this strategy is to ma'imizediversification$ minimize ta'es from too fre4uent trading$ and ride the general

trend of the stock market #which$ in the 5.S.$ has averaged nearly 1- L

LMyear$ compounded annually$ since Gorld Gar ;;%.

Stock !arkets in India*+n Introduction

Stock markets refer to a market place where investors can buy and sell

stocks. The price at which each buying and selling transaction takes is

determined by the market forces #i.e. demand and supply for a particular

stock%.

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http://en.wikipedia.org/wiki/Trend_followinghttp://en.wikipedia.org/wiki/John_W._Henryhttp://en.wikipedia.org/wiki/Ed_Seykotahttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Index_fundhttp://en.wikipedia.org/wiki/S%26P_500http://en.wikipedia.org/wiki/Trend_followinghttp://en.wikipedia.org/wiki/John_W._Henryhttp://en.wikipedia.org/wiki/Ed_Seykotahttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Index_fundhttp://en.wikipedia.org/wiki/S%26P_500


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7et us take an e'ample for a better understanding of how market forces

determine stock prices. "BD Do. 7td. en!oys high investor confidence and

there is an anticipation of an upward movement in its stock price. 2ore and

more people would want to buy this stock #i.e. high demand% and very few

people will want to sell this stock at current market price #i.e. less supply%.

Therefore$ buyers will have to bid a higher price for this stock to match the

ask price from the seller which will increase the stock price of "BD Do. 7td.

+n the contrary$ if there are more sellers than buyers #i.e. high supply and low

demand% for the stock of "BD Do.7td. in the market$ its price will fall down.

;n earlier times$ buyers and sellers used to assemble at stock e'changes

to make a transaction but now with the dawn of ;T$ most of the operations are

done electronically and the stock markets have become almost paperless.

Now investors don’t have to gather at the 'changes$ and can trade freely

from their home or office over the phone or through ;nternet.

T%e Ori(in of T%e Indian Stock !arket

+ne of the oldest stock markets in "sia$ the ;ndian Stock 2arkets have

a ,-- years old history.

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,-t%

.entury

ast ;ndia Dompany was the dominant institution and by end of

the century$ business in its loan securities gained full

momentum

,-/01s Business on corporate stocks and shares in Bank and Dotton

presses started in Bombay. Trading list by the end of 1)0 got

broader

,-201s Hecognition from banks and merchants to about half a dozen

brokers

,-301s Hapid development of commercial enterprise saw brokerage

business attracting more people into the business

,-401s The number of brokers increased to *-

,-40*4, The "merican Divil Gar broke out which caused a stoppage of

cotton supply from 5nited States of "merica marking the

beginning of the >Share 2ania> in ;ndia,-45*4/ The number of brokers increased to about ,-- to ,@-

,-43

" disastrous slump began at the end of the "merican Divil Gar

#as an e'ample$ Bank of Bombay Share which had touched Hs.

,@- could only be sold at Hs. /%

6re*Inde"endence Scenario * Estab$is%ment of Different Stock E'c%an(es

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,-72 Gith the rapidly developing share trading business$ brokers

used to gather at a street #now well known as >alal Street>% for

the purpose of transacting business.

,-73 >The Native Share and Stock Brokers3 "ssociation> #also known

as >The Bombay Stock 'change>% was established in Bombay

,--01s evelopment of cotton mills industry and set up of many others

,-82 stablishment of >The "hmedabad Share and Stock Brokers3

"ssociation>

,--0 *

801s

Sharp increase in share prices of !ute industries in 1/-3s was

followed by a boom in tea stocks and coal

,80- >The Dalcutta Stock 'change "ssociation> was formed

,850 2adras witnessed boom and business at >The 2adras Stock

'change> was transacted with 1-- brokers.

,85/ Ghen recession followed$ number of brokers came down to )

and the 'change was closed down

,8/2 stablishment of the 7ahore Stock 'change

,8/4 2erger of the 7ahore Stock 'change with the 8un!ab Stock

'change

,8/7 HeEorganisation and set up of the 2adras Stock 'change

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7imited #8vt.% 7imited led by improvement in stock market

activities in South ;ndia with establishment of new te'tile mills

and plantation companies

,820 5ttar 8radesh Stock 'change 7imited and Nagpur Stock

'change 7imited was established

,822 stablishment of >The 9yderabad Stock 'change 7imited>

,827 >elhi Stock and Share Brokers3 "ssociation 7imited> and >The

elhi Stocks and Shares 'change 7imited> were established

and later on merged into >The elhi Stock 'change

"ssociation 7imited>

6ost Inde"endence Scenario

Hegulations "ct$ 10@*. The 'changes that were recognized under the

"ct The depression witnessed after the ;ndependance led to closure of a lot of

e'changes in the country. 7ahore stock 'change was closed down after the

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partition of ;ndia$ and later on merged with the elhi Stock 'change.

Bnagalore Stock 'change 7imited was registered in 10@/ and got

recognition only by 10*). 2ost of the other 'changes were in a miserable

state till 10@/ when they applied for recognition under Securities Dontracts

wereJ

1. Bombay

,. Dalcutta

). 2adras

A. "hmedabad

@. elhi

*. 9yderabad

/. Bangalore

. ;ndore

!any more stock e'c%an(es )ere estab$is%ed durin( ,8-01s& name$y9

1. Dochin Stock 'change #10-%

,. 5ttar 8radesh Stock 'change "ssociation 7imited #at :anpur$ 10,%

). 8une Stock 'change 7imited #10,%

A. 7udhiana Stock 'change "ssociation 7imited #10)%

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@. ?auhati Stock 'change 7imited #10A%

*. :anara Stock 'change 7imited #at 2angalore$ 10@%

/. 2agadh Stock 'change "ssociation #at 8atna$ 10*%

. Faipur Stock 'change 7imited #100%

0. Bhubaneswar Stock 'change "ssociation 7imited #100%

1-.Saurashtra :utch Stock 'change 7imited #at Ha!kot$ 100%

11.=adodara Stock 'change 7imited #at Baroda$ 100-%

1,.Doimbatore Stock 'change

1).2eerut Stock 'change

"t present$ there are twenty one recognized stock e'changes in ;ndia

which does not include the +ver The Dounter 'change of ;ndia 7imited

#+TD;% and the National Stock 'change of ;ndia 7imited #NS;7%.

?overnment policies during 10-3s also played a vital role in the

development of the ;ndian Stock 2arkets. There was a sharp increase in

number of 'changes$ listed companies as well as their capital.

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:O!:+Y STO.; E


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;n ,--,$ the name >The Stock 'change$ 2umbai> was changed to

Bombay Stock 'change. Subse4uently on "ugust 10$ ,--@$ the e'change

turned into a corporate entity from an "ssociation of 8ersons #"o8% and

renamed as Bombay Stock 'change 7imited.

BS$ which had introduced securities trading in ;ndia$ replaced its open

outcry system of trading in 100@$ with the totally automated trading through

the BS +nline trading #B+7T% system. The B+7T network was e'panded

nationwide in 100/.

6rominent 6osition

The !ourney of BS is as eventful and interesting as the history of

;ndia3s securities market. ;n fact$ as ;ndia3s biggest bourse$ in terms of listed

companies and market capitalisation$ BS has played a pioneering role in the

development of the ;ndian securities market. ;t is surely BS3s pride that

almost every leading corporate in ;ndia has sourced BS3s services in capital

raising and is listed with BS.

ven in terms of an orderly growth$ much before the actual legislations

were enacted$ BS had formulated a comprehensive set of Hules and

Hegulations for the securities market. ;t had also laid down best practices

which were adopted subse4uently by ,) stock e'changes which were set up

after ;ndia gained its independence.

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http://void%280%29/http://void%280%29/


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BS$ as a brand$ has been and is synonymous with the capital market in

;ndia. ;ts SNSO is the benchmark e4uity inde' that reflects the health of

the ;ndian economy.

Severa$ Firsts

"t par with the international standards$ BS has in fact been a pioneer in

several areas. ;t has several firsts to its credit even in an intensely competitive

environment.

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"n e4ually important accomplishment of BS is its nationwide

investor awareness campaign E >Safe ;nvesting in the Stock 2arket> E under

which awareness campaigns and dissemination of information through print

and electronic medium is undertaken across the country. BS also actively

promotes the securities market awareness campaign of the Securities and

'change Board of ;ndia.

!i$estones of :SE

Date !i$estone +c%ieved

0th Ful 1/@ The Native Share & Stock Broker3s "ssociation formed

)1st "ug 10@/ BS granted permanent recognition under Securities Dontracts

#Hegulation% "ct #SDH"%

,nd Fan 10* SNSO$ country3s first e4uity inde' launched #Base

6earJ10/E/0 P1--%

1-th Ful 10/ ;nvestor3s 8rotection


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1st "pr ,--) TQ, settlement ;ntroduced

th "ug ,--@ ;ncorporation of Bombay Stock 'change 7imited

/th


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consists of the )- largest and most actively traded stocks$ representative of

various sectors$ on the Bombay Stock 'change. These companies account

for around fifty per cent of the market capitalisation of the BS. The base

value of the sense' is 1 on "pril 1$ 10/0$ and the base year of BSE

SNSO is 1!"#-"!.

"t regular intervals$ the Bombay Stock 'change #BS% authorities

review and modify its composition to be sure it reflects current market

conditions. The inde' is calculated based on a freeEfloat capitalization

method a variation of the market cap method. ;nstead of using a company3soutstanding shares it uses its float$ or shares that are readily available for

trading. The freeEfloat method$ therefore$ does not include restricted stocks$

such as those held by promoters$ government and strategic investors.

;nitially$ the inde' was calculated based on the Rfull market

capitalization’ method. 9owever this was shifted to the free float method with

effect from September 1$ ,--). ?lobally$ the free float market capitalization is

regarded as the industry best practice.

"s per free float capitalization methodology$ the level of inde' at any

point of time reflects the free float market value of )- component stocks

relative to a base period. The 2arket Dapitalization of a company is

determined by multiplying the price of its stock by the number of shares

issued by the company. This 2arket

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capitalization is multiplied by a free float factor to determine the free float

market capitalization.


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N+TION+= STO.; E


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e4uities. ;t is the second fastest growing stock e'change in the world with a

recorded growth of 1*.*L.

Ori(ins

The National Stock 'change of ;ndia was promoted by leading


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• Setting up the first clearing corporation >National Securities Dlearing

Dorporation 7td.> in ;ndia. NSDD7 was a landmark in providing

innovation on all spot e4uity market #and later$ derivatives market%trades in ;ndia.

• DoEpromoting and setting up of National Securities epository

7imited$ first depository in ;ndia

• Setting up of S&8 DNO Nifty.

• NS pioneered commencement of ;nternet Trading in


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• NS.;T 7imited$ setup in 1000 $ is a 1--L subsidiary of the National

Stock 'change of ;ndia. " =ertical Specialist nterprise$ NS.;T

offers endEtoEend ;nformation Technology #;T% products$ solutions andservices.

!arkets

Durrently$ NS has the following ma!or segments of the capital marketJ

Equity

Futures and O"tions

#etai$ Debt !arket

>%o$esa$e Debt !arket

.urrency futures

!utua$ fund

Stocks $endin( ? borro)in(

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"ugust ,-- Durrency derivatives were introduced in ;ndia with the

launch of Durrency


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!i$estones of NSE

• November 100, ;ncorporation

• "pril 100) Hecognition as a stock e'change

• 2ay 100)


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• November ,--1 Dommencement of trading in


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• providing a fair$ efficient and transparent securities market to investors

using electronic trading systems$

• enabling shorter settlement cycles and book entry settlements systems$

and

• meeting the current international standards of securities markets.

The standards set by NS in terms of market practices and technology have

become industry benchmarks and are being emulated by other market

participants. NS is more than a mere market facilitator. ;t3s that force which

is guiding the industry towards new horizons and greater opportunities.

=o(o

The logo of the NS symbolises a single nationwide securities trading

facility ensuring e4ual and fair access to investors$ trading members and

issuers all over the country. The initials of the 'change viz.$ N$ S and have

been etched on the logo and are distinctly visible. The logo symbolises use of

state of the art information technology and satellite connectivity to bring

about the change within the securities industry. The logo symbolises vibrancy

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and unleashing of creative energy to constantly bring about change through

innovation

6#O!OTE#S

NS has been promoted by leading financial institutions$ banks$ insurance

companies and other financial intermediariesJ

1. ;ndustrial evelopment Bank of ;ndia 7imited

,. ;ndustrial


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1-.Bank of Baroda

11.Danara Bank

1,.?eneral ;nsurance Dorporation of ;ndia

1).National ;nsurance Dompany 7imited

1A.The New ;ndia "ssurance Dompany 7imited

[email protected] +riental ;nsurance Dompany 7imited

1*.5nited ;ndia ;nsurance Dompany 7imited

1/.8un!ab National Bank

1.+riental Bank of Dommerce

10.Dorporation Bank

,-.;ndian Bank

,1.5nion Bank of ;ndia

.O#6O#+TE ST#U.TU#E

NS is one of the first deEmutualised stock e'changes in the country$

where the ownership and management of the 'change is completely

divorced from the right to trade on it. Though the impetus for its

establishment came from policy makers in the country$ it has been set up as a

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public limited company$ owned by the leading institutional investors in the

country.


44/50

The methodology used for the implementation of the pro!ect is based

on secondary data & with the help of custom type pie e'plosion chart. The

data was obtained on the basis of research & findings conducted by various

stock market e'perts.

1@ .om"arison of Trade Aa$ue of NSE ? :SE

264

809

BSE NSE

;nterpretationsJ ;t was found out that trade value of nse is far better than bse

on account of more customer preference.

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5@ .om"arison of !arket .a"ita$isation at NSE ? :SE

16271588BSE NSE

;nterpretationsJ +n the basis of data obtained it was found out that both bse

&

nse have e4ual market capitalization.

)% Investors Stock E'c%an(e 6reference

NSE; 59%

BSE; 36%

Others; 5%

NSE BSE Others

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;nterpretationsJ Nse occupies more stock e'change preference followed

by bse & other stock e'changes.

2@ #easons for 6referrin( NSE t%e most

Liquidity Brand Value Trust Divesifed servies

0

10

20

30

40

50

;nterpretationsJ ;nvestors prefer nse because it provides diversified list of

services to its investors followed by its prime

service of li4uidity$ brand value & trust.

3@ InvestorBs "reference for ana$yCin( market

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!!%

6%"!%

36%

Sense# Ni$ty Bth $ the& Others als

;nterpretationsJ ;nvestors prefer analyzing of sense' more easy as compared

to nifty and other stock e'changes.

4@ .$ient Satisfaction

NS !S "#a$ in %ot&

0

5

10

15

20

25

;nterpretationsJ +n the basis of data obtained it was found that most people

were of the opinion that nse provides them with better services

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while others firmly believe in bse while the rest are happy

with both nse & bse.

7@ InvestorBs Se$ection for most secured investment

3'%

!%!(%

"'%

Ban) St) *ar)et +eal Estate Others

;nterpretationsJ "lthough stock markets have created a huge impact on our

economy researchers say that people prefer investment

in real estate the most secured as compared to banks$

stock markets & other investments.

.onc$usion

Stock market is something which you cannot predict what is going to

happen in the market tomorrow without proper ana$yCes of market. So$ it is

always preferable to go for some professional help if you wish to invest in

the Indian stock market. 6ou should also be ac4uainted with the concept of

NS and BS.

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Bombay Stock 'change and National Stock 'change are both ma!or

stock e'change in ;ndia. But there is a difference bet)een NSE and :SE.

;nvestors put their money in the stock market in order to reap huge benefits

from their investment. But nobody can predict the market as we have already

discussed. "lso the growth of these two stock e'changes are decided by our

country’s growth. But you should be aware that it re4uires a lot of patience.

:I:=IOG#+6Y

• www.bseindia.com

• www.nseindia.com

• www.wikipedia.org

• httpJMMwww.sharetipsinfo.com

• httpJMMwiki.answers.com

49

http://www.bseindia.com/http://www.nseindia.com/http://www.wikipedia.org/http://www.sharetipsinfo.com/http://wiki.answers.com/http://www.bseindia.com/http://www.nseindia.com/http://www.wikipedia.org/http://www.sharetipsinfo.com/http://wiki.answers.com/


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• httpJMMin.answers.yahoo.com

• www.sebi.gov.in
http://in.answers.yahoo.com/http://in.answers.yahoo.com/

Comparative Study of Bse & Nse (1) Shiva Sir

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