Online Trading on Bse and Nse

8/9/2019 Online Trading on Bse and Nse

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ONLINE TRADING ON BSE AND NSESHAIKH MOHD. JAHIR (Roll No: 47)


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Presentati on Ou tlineBombay Stock ExchangeV isionLogoStandardListingG roup of Comp aniesWhy Trade Online???

BOLT- BSE On-Line Tradin gTimingLar ge Private Network

SENSEXClosing Price of S cripBasket Tradin g SystemCompulsory Rolling S ystemRisk

Red uction & Control Risk


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Bombay StockExchange

Oldest Stock Exchange in Asia.3 rd in numbers of l isted Co. i.e .4900 Co. & o ver 7700 scripson the stock exchange .Market Ca p ita lization ofUS$1.28 T rillion making it 12 thLar gest in World .


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Bombay StockExchange

The Native Share & Stock Brokers' Association in 1875.Off icially formed in 1956.SENSEXin 1986.BOLTin 1995Derivative in 2000Ca pacity of 80 l akhs orders per day


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- V ISION

"EMERGE AS THE PREMIER INDIAN STOCK EXCHANGE BY ESTABLISHING GLOBAL

BENCHMARKS"


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- LOGO

New issi s t er, seamle ss , and eff icien t, wh ichever way you loo k a t it .


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- STANDARD

1 st exchange in India and 2 nd in World to ob tain ISO 9000:2000 Certification.1 st exchange in India and 2 nd in World to ob tain BS77 99 -2 -2002 Certificate for Information Security and Mana gement System for BOLT operati on.

ISO 2 7 001:2005 certified for Information Security.


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- FIRST

First in India to introduce Equity Derivatives First in India to la unch a Free Float Index

First in India to la unch US$ version of BSE SENSEX First in India to la unch Exchange Enabled Internet Tradin g Plat form First to have an exclusive facility for financial training First in India in the financial services sector to la unch its website in Hindi and Gujarati

Shifted from Op en Ou tcry to Electronic Tradin g within just 50 days First be ll-ring ing cere mony in the history of the Indian cap ita l markets (listing cere mony of Bharti Te leventuresLtd .on Feb ruary 18,2002)


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- LISTING

M inimum Listing Requi rements fo r NewCompanies:

a) Fo r Large Cap Companies

b) Fo r S ma ll Cap Compaies


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- LISTINGW hat is La rge Cap Companies?

A lar ge cap company is a company with a minimum issue size of Rs. 10 crore and market cap ita lization of not less than Rs.25 croreW hat is S ma ll Cap Companies?

A sma ll cap company is a company other than a lar ge cap company.


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- LISTINGFor Large Cap Companies:

The minimum post-issue paid -up cap ita l of the

a ppl icant company (hereina fter re ferred t oas "the Company") shall be Rs. 3 crore; andThe minimum issue size shall be Rs. 10 crore;andThe minimum market ca p ita lization of the

Company sha ll be Rs. 25 crore (marketcap ita lization shall be ca lculated bymultiplying the po st-issue paid -up number ofequity shares with the issue p rice).


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- LISTINGFor S ma ll Cap Companies:

The minimum post-issue paid -up cap ital of the

Company sha ll be Rs. 3 crore; andThe minimum issue size shall be Rs. 3 crore; andThe minimum market ca p ita lization of theCompany sha ll be Rs. 5 crore; andThe minimum income/t urnover of the Companyshall be Rs. 3 crore in each of the p receding three

12-mo nths period; andThe minimum number of publ ic shareholders a fterthe issue sha ll be 1000.A due diligence Study.


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- LISTINGFor All Companies:

Disclaimer cla use forming a part of the offerdocument that in the event of the marketcap ita lization requirement of BSE not being met ,the securities of the issuer would not be listed onBSE.The a ppl icant, promoters and/ or g roupcompanies , shall not be in defa ult in compliance of

the listing a gree ment.The a bo ve e lig ib ility criteria would be in additi onto the conditions prescribed under SEBI (Disclosureand Investor Protection) Guide lines, 2000


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- GROUPSOF COM PANIES

Indias leadin g stock exchange, has classified Equity scrip ts into cate go ries A , B1 , B2 , S, T, TS, & Z to p rovide a guidance to the investors which is Classified on severa l factors such as market cap ita lisation, tradin g volumes and

numbers, trackrec ords, p rofits, dividends ,shareholding p atterns , and some qua litative aspects.


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It is th st tr ck class f scripts c nsisting f a u t scripts. a rk t ca pital iza tion is on k fac tor in dec id ing which scrip should eclassified in roup .

t present the re a re c ompa nies in the group

G roup A:


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The Exchange has introduced a new segment named BS E Indonext .

The SG roup rep resents scrip ts forming p art of the BSE-Indonext segment.companies exclusively listed on reg iona l stock exchanges having cap ita l of 3 crores to 30 crores.

All trades in this segment are done throug h BOLTsystem under S g roup.

G roup S :


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The companies which have fai led to complywith the listing requirements of the Exchangeand/ or have fai led t o resolve investorcomplaints or have not made the re quiredarran gements with bo th the Depo sitories, viz.,Centra l Depo sitory Services (I) Ltd . (CDSL)and Nationa l Securities Depo sitory Ltd .(NSDL) for de materia lization of theirsecurities.

G roup Z:


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All companies not included in g roupA , S or Z are c lubb ed under thiscate go ry.

G roup B:


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It consistsof scrip ts which are traded on trade to trade basis with surveillances .

G roup T:


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The TSG roup consistsof scrip ts in the BS E-Indonext segments which are settled on a trade to trade basis as a surveillance meas ure .

G roup T S :


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Fixed Income Securities

G roup F:


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G ove rnment S ecu rities

G roup G :


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W hy T rade O n -Line ???

Speed

Convenience & accessib ilityCostNo mo re QueuesServiceInformation


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BOLTcame in to existence in 1995 within55daysBSEW ebx.co.in

bseindia.com

BSE On-Line Tradin g (BOLT)


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BOLT Screen


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Timing

Session TimingBeg inning of the Day Session 8:00 - 9:00Tradin g S ession 9:00 - 15:30Position Transfer Session 15:30 - 15:50Closing S ession 15:50 - 16:05Op tion Exercise Session 16:05 - 16:35Mar g in Session 16:35 - 16:50Query Session 16:50 - 17:35End of Day Session 17:30


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Lar ge Private NetworkLAN- BSE Ca mpusW

AN - Different Service ProvidersV-SAT- Market participants in remote areasO n line Su rvei llance System - integ rated (B O SS-i)-tradin g and settlement activities of the member-b rokers


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Sensex is ca lculated using the " Free -float M a rket Capita lization " methodology.The leve l of index at any po int of time re flects the Free -float market va lue of 3 0 component stocks re lative to a base pe riod .The ma rket capita lization of a company is deter mined by multiplyingthe p rice of its stock by the number of shares issued by the company

This ma rket capita lization is further multiplied by the free -float facto r to deter mine the free -float ma rket capita lizationThe base pe riod of S ensex is 19 78 -7 9 and the base va lue is 100index points

SENSEX


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Agg regate M kt Capita lisation * Base Index Va lue

Agg regate base M kt capita lisation

SENSEX Formula


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The closing p rice of scrips is computed by BSE onthe basis of weighted avera ge p rice of a ll tradesexecuted d uring the last 30 m inutes of acontinuous trading session. However, if there is notrade rec orded d uring the last 30 m inutes, then

the last traded p rice of scrip in the continuoustradin g session is taken as the off icial closingp rice.

How Closing Price of S crip is Ca lculated?


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The investors throug h the Members are a ble to bu y/ sell a ll 30 scrips ofSensex in one go in the p ropo rtion of their respective weights in the SensexThe investors need not ca lculate the quantity of S ensex scrips to b e boug ht or sold for creating S ensex-linked po rtfolios and this function is per formed by the system.The investors can a lso create their own baskets by de leting certain scrips

from 30 scrips in the SensexThe Members need to indicate the number of S ensex b asket (s) to b e boug ht or sold , where the value of o ne Sensex b asket is arrived at by the system by multiplying Rs.50 to the p revai ling S ensex.

Basket Tradin g S ystem


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All transacti ons in a ll group s of securities in the Equity segment and Fixed Income securities listed on BSEare required to b e settled on T+2 basis

Compu lso ry Ro lling Sett lementSett lement


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DAY ACTIVITY

T Trading on BOLT and daily downloading of statements showing details of transactions andmargins at the end of each trading day.Downloading of provisional securities and funds obligation statements by member-brokers.

6A/7A* entry by the member-brokers/ confirmation by the custodians.

T+1 C onfirmation of 6A/7A data by the C ustodians upto 1:00 p.m. Downloading of finalsecurities and funds obligation statements by members

T+2 P ay-in of funds and securities by 11:00 a.m. and pay-out of funds and securities by 1:30p.m. The member-brokers are required to submit the pay-in instructions for funds andsecurities to banks and depositories respectively by 10: 30 a.m.

T+3 Auction on BOLT at 11.00 a.m.

T+4 Auction pay-in and pay-out of funds and securities by 12:00 noon and 1:30 p.m.respectively.


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@ ANGEL BROKING SECURI T IES L TD.

BANKING


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Risk

can

be

classi

fied?Risks associated with Pape r Based T rading

Lost/ misplaced securities da ma ge to securities loss of securities in transit

Client Risk

Client de fa ult Client a bscondingFake/ forged/st olen securities introduced by the clients

Risk


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Know Your Client Scheme Data base of lo st , Stolen , Misplaced Securities Client Ca ution Data base Verification of shares at members off ice Inspection

Red uction & Control Risk


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Presentati on Ou tlineNationa l Stock Exchange

Introduction MissionLogoNEAT- Nationa l Exchange Automated Tradin gMarketO rder ConditionNifty Ca lculation


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Nationa l S tock Exchange

It is the lar gest stock exchange in India in ter ms of dai ly turnover and number of trades , fo r bo th equities and derivative tradin g.NSE has a market cap ita lization ofar ound Rs 47,01,923 crore .NSE was promoted by leadin gFinancial Institutions at the behest ofthe Go vernment of India and was incorpo rated in November 1992 as a ta x-p aying company unlike other stock exchanges in the country.


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-Nationa l S tock Exchange

Wholesa le Deb t Market (WDM)segment in June 1994.Ca p ita l Market (Equities) segment commenced op erati ons in November 1994.in Derivatives segment commenced in June 2000.

15 m illion trades per day in Ca p ita lMarket segment.


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-M ISSIO N

Esta l ishinga na tion-wide trad ing fac ilit for e uities, de t instruments a nd h brids,

Ensuring e ual acce ss to investors all over thecountr through a n a ppropri a te communica tion ne twork,Provid ing a fa ir, eff icient a nd tra nspa rent securities ma rke t to investors using elec tronictrad ing s stems,

Ena b ling shorter se ttlement cycles a nd book entry se ttlements systems, a ndee ting the current interna tional sta nda rds of

securities ma rke ts.


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-LO G O

The logo o f the N S E symbo lises a sing le nationwide secu ritiestrading faci lity ensu ring equa l and fai r access to investo rs , tradingmembe rs and issue rs a ll ove r the count ry.


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-NEAT

Nationa l Exchange for Automated Tradin g.NSE is one of the lar gest interactive V SATbased stock exchanges in the world .NSE is displaying its live stock quo tes on the web site (www.nseindia .com) which are updated online.

NSE today a llows members to p rovide internet tradin g f acility to their clients through the use of NO W (NSE on web), a shared web infrastr ucture .


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-S EGM ENT

NSE has the following ma jor segments of the cap ita l market :EquityFutures and Op tionsRetai l Deb t MarketWholesa le Deb t Market

Currency futuresMUTUAL FUNDSTOCKS LENDING & BROW ING


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-M ARKET

4 Types o f M a rket

Norma l MarketOdd Lot MarketAuction Market

Spo t Market


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All orders which are of regular lot size or multiples there of are traded in the Norma lMarket .Norma l market consistsof various boo k types wherein orders are seg regated as Regular lot

orders , Specia l Term orders , Nego tiated Trade O rders and Stop Loss orders de pending o n their order attri butes

Norma l Market


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All orders whose order size is less than the regular lot size are traded in the odd -lot market . An order is ca lled an odd lot order if the order size is less than regular lot size.These orders do not have any specia l ter ms attri bu tes attached tothem. In an odd -lot market , bo th the p rice and quantity of bo th the orders (buy and sell) should exact ly match for the trade totake placeCurrent ly the odd lot market facility is used for the Limited Physical Market as per the SEBIdirectives.

Odd Lot Market


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There are 3 p articipants in this market .Initiato r - the party who initiates the a uction p rocess is ca lled an initiatorCompetito r - the party who enters orders on the same side as of the initiatorSo licito r - the party who enters orders on the oppo site side as of the initiator

Auction Market


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Spo t orders are similar to the norma l market orders excep t that spo t orders have different settlement periods vis-- vis norma l market .These orders do not have any specia l ter ms attri butes attached to them.Current ly the Spo t Market is not in use.

Spo t Market


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O RDECO ND ITIO N

Time Re lated ConditionPrice Re lated ConditionQuantity Re lated Condition


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DAYGoo d Till Cance lled (GTC)Goo d Till Day/ Date (GTD)

Immediate or Cance l (IOC)

Time Re lated Conditions


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Limit Price/ O rder Market Price/ O rderStop Loss (SL)Price/ O rder

Price Re lated Conditions


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Disclosed Quantity Minimum Fill (MF)All or None orders (AON)

Quantity Re lated Conditions


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N IFTYCALCULAT IO N

Nifty index movement is based on the movement of 50 scrip ts.

Ca lculated on the bases of Free -float Market Ca p ita lization methodolog y


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Op ening an AccountFilling an a ppl ication form

Issued with ID & Password


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Choosing BrokerAre lowe r dea ling cha rges ve ry impo r tant to you?How o ften wi ll you t rade?

Are you wi lling to pay highe r annua l cha rges to get ext ra faci lities?W hat type o f account do you want?Nominee AccountCertificated AccountCrest-sponsored member account

How impo r tant is custome r se rvice to you?Do you want fo reign dea ling?Compa ring b roke rs


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Doing Dea lEPIC code , a unique three or four letter code for each listed companyThe broker's website will usua lly have a look-upfacilityProp er ly execute the order


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Fina lly, a wo rd o f wa rning abouton line t rading...!

It is obviously extremely important to key in the correct information particular ly the number or value of the shares you're tradin g. Its easy to make a mistake when youre typ ing in numbers. Its worth double-checking b efore you complete your trade!Your compu ter may b reak down whilst you can phone up mo st brokers, some may pena lise you fo r this.Tradin g o nline means you can make very quick decisions and its easy to g et carried away remember, its just as easy to make a loss as it is a profit. I dont want to pu t you off, bu t Money Week (May 2004)said only 11.5% of o nline traders actua lly make any money what a sob ering thought!!Never use publ ic compu ter for tradin g with your ID and Password .


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Thank you fo r patience listening

Online Trading on Bse and Nse

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