By Chellakannan.k.p
BSEBombay 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.
world's number 1 exchange in
the world in terms of the
number of listed companies
(over 4900)
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. Margin
a. Special Margin
b. Concentration Margin
c. Additional Volatility Margin
d. Ad-hoc Margin
PROTECTION AGAINST DEFAULT Customer’s 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 MARKETNSE 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
Thank you!!!!!
