PAPER PRESENTATION ON BOMBAY STOCK EXCHANGE (bse) nATIONAL stock exchange (nse)

Submitted To : Nelsion Sir Prepared By : Ashwin A. Panicker PGDM 10PGDM106

BSE(Bombay stock exchange) & nse(national stock exchange) Introduction

A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and dividends. Securities traded on a stock exchange include shares issued by companies, unit trusts, derivatives, pooled investment products and bonds. The Stock Exchange provide companies with the facility to raise capital for expansion through selling shares to the investing public. A stock market or equity market is a public entity (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 exchange as well as those only traded privately. A stock market or equity market is a public entity (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 exchange as well as those only traded privately.

The Bombay Stock Exchange Limited (Hindi:

Mumba eyar Bjr) (formerly, The Stock

Exchange, Mumbai; popularly called The Bombay Stock Exchange, or BSE) is the oldest stock exchange in Asia. It is located at Dalal Street, Mumbai, India. In October 2007, the equity market capitalization of the companies listed on the BSE was US$ 1.61 trillion, making it the largest stock exchange in South Asia and the tenth largest in the world.[1] The Bombay Stock Exchange was established in 1875. There are around 4,800 Indian companies listed with the stock exchange, and has a significant trading volume. The BSE SENSEX (sensitive index), also called the "BSE 30", is a widely used market index in India and Asia. Though many other exchanges exist, BSE and the National Stock Exchange of India account for most of the trading in shares in India. the Sensex is the oldest stock index in India. The Sensex is an "index".

What is an index? An index is basically an indicator. It gives you a general idea about whether most of the stocks have gone up or most of the stocks have gone down. The Sensex is an indicator of all the major companies of the BSE. If the Sensex goes up, it means that the prices of the stocks of most of the major companies on the BSE have gone up. If the Sensex goes down, this tells you that the stock price of most of the major stocks on the BSE have gone down.

The BSE SENSEX (also known as the BSE 30 index) is a value-weighted index composed of thirty scrips, with the base April 1979 = 100. The set of companies which make up the index has been changed only a few times in the last twenty years. These companies account for around one-fifth of the market capitalization of the BSE.

Apart from BSE SENSEX, which is the most popular stock index in India, BSE uses other stock indices as well: * BSE 500 * BSE 100 * BSE 200 * BSE PSU * BSE MIDCAP * BSE SMLCAP * BSE BANKEX * BSE Teck * BSE Auto * BSE Pharma * BSE Fast Moving Consumer Goods (FMCG) * [[BSE Consumer Durables (SYMBOL: Cons Dura)]] * BSE Metal

Bombay Stock Exchange profile

Type Location Coordinates Founded Owner Key people Currency No. of listings MarketCap Volume

Stock Exchange Mumbai, India 18.929681N 72.833589E 1875 Bombay Stock Exchange Limited Madhu Kannan (CEO & MD) Indian rupee ( ) 5,085 US$ 1.8 trillion (Dec 2010) US$ 231 billion (Nov 2010) BSE SENSEX BSE Small Cap BSE Mid-Cap BSE 500

Indexes

Website

www.bseindia.com

Hours of operation
Session Timing

Beginning of the Day Session 8:30 - 9:00 pre-open trading session Trading Session Position Transfer Session Closing Session Option Exercise Session Margin Session Query Session End of Day Session 9:00 - 9:15 9:15 - 15:30 15:30 - 15:50 15:50 - 16:05 16:05 - 16:35 16:35 - 16:50 16:50 - 17:25 17:30

The hours of operation for the BSE quoted above are stated in terms the local time (i.e. GMT +5:30) in Mumbai , India. BSE's normal trading sessions are on all days of the week except Saturday, Sundays and holidays declared by the Exchange in advance.

The National Stock Exchange of India Limited (NSE), is a Mumbai-based stock exchange. It is the largest stock exchange in India and the third largest in the world in terms of volume of transactions. Though a number of other exchanges exist, NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India, and between them are responsible for the vast majority of share

transactions. NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities]. As of 2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India . In October 2007, the equity market capitalization of the companies listed on the NSE was US$ 1.46 trillion, making it the second largest stock exchange in South Asia, behind the Bombay Stock Exchange, and the eleventh largest in the world. Origins The National Stock Exchange of India was promoted by leading Financial institutions at the behest of the Government of India, and was 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. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment of the NSE commenced operations in November 1994, while operations in the Derivatives segment commenced in June 2000. Profile Type: Stock Exchange Location: Mumbai, India Coordinates: Founded : 1992 Owner: National Stock Exchange of India Limited Key people: Ravi Narain (MD) Currency: Indian rupee ( ) No. of listings: 1,552 MarketCap : US$1.59 trillion (Dec 2010) Indexes: S&P CNX Nifty CNX Nifty Junior S&P CNX 500 Website: www.nse-india.com Currently, NSE has the following major segments of the capital market: * Equity * Futures and Options * Retail Debt Market 19337N 725135E

* Wholesale Debt Market Indices NSE also set up as index services firm known as India Index Services & Products Limited (IISL) and has launched several stock indices, including: * S&P CNX Nifty * CNX Nifty Junior * CNX 100 (= S&P CNX Nifty + CNX Nifty Junior) * S&P CNX 500 (= CNX 100 + 400 major players across 72 industries) * CNX Midcap (introduced on 18 July 2005 replacing CNX Midcap 200)

Major Stock Exchanges : Year ended 31 December 2010

Market Capitalization (USD Billions) 15,970 Trade Value (USD Billions) 19,813

Rank

Economy

Stock Exchange

Location

United States Europe United States Europe Japan United Kingdom China Hong Kong Canada India India Brazil

NYSE Euronext

New York City New York City Tokyo London Shanghai

2 3 4 5 6 7 8 9 10

NASDAQ OMX Tokyo Stock Exchange London Stock Exchange Shanghai Stock Exchange

4,931 3,827 3,613 2,717 2,711 2,170 1,631 1,596 1,545

13,439 3,787 2,741 4,496 1,496 1,368 258 801 868

Hong Kong Stock Exchange Hong Kong Toronto Stock Exchange Bombay Stock Exchange Toronto Mumbai

National Stock Exchange of Mumbai India BM&F Bovespa So Paulo

Why is turnover of NSE higher than BSE ?

The 13-year-old National Stock Exchange (NSE) has outshined the 130-year-old Bombay Stock Exchange (BSE) in terms of turnover and volumes. The BSE has lost its market share in these segments from 36 per cent to 31 per cent in the last three years. While, the turnover in BSE stood at Rs 1,966 crore as on March 24, 2005, the turnover in NSE was Rs 3,926 crore. The volumes (numbers of shares traded) of NSE at 2.94 crore was also much higher than the volumes of BSE. In the derivatives segment, the NSE is a clear winner. It currently accounts for about 97 per cent of the country's equity derivatives volume. However, the BSE was the first stock exchange in the country to start trading in derivatives segment on June 9, 2000. The NSE has rewritten a number of rules and upset many traditions. As the derivatives segment has immense effect on the cash market, the movement in this segment mostly determines the trend in the market. Against nearly 1,000 companies listed on the NSE, the BSE has nearly 4,800 listed companies. Despite such a huge number of listed companies, the total market capitalisation of BSE is around Rs 17 lakh crore. On the other hand the NSE has a total market cap of Rs 16.7 lakh crore. The most tracked index on NSE, CNX Nifty also has more number of stocks than the BSE Sensex. While, the Nifty represents 50 stocks, the Sensex represents only 30 stocks. The presence of more stocks on Nifty also gives a better valuation than Sensex. The NSE is also a leader in trading single-stock derivatives. The BSE knew about singlestock derivatives but it chose to continue with the badla system. However, the NSE knew the future of single-stock derivatives. Now, the single-stock derivatives accounts for about 60 per cent of the NSE's total derivatives turnover. The NSE has also outperformed the BSE in demutualisation. It was founded as a forprofit, shareholder-owned securities exchange. Its each share has a vote. It has been in the business of providing an electronic marketplace since June 30, 1994. The NSE is owned by nearly 24 banks and financial institutions. The NSE's ownership, management and control are separated. This has helped produce these extraordinary results. In contrast to NSE, the BSE has been a member-owned, mutualised exchange since its inception 130 years ago. Each member has a vote. Ownership, management and control are not separated in this exchange. However, Securities and Exchange Board of India (Sebi) has recently cleared the demutualisation and corporatisation scheme of the BSE, paving the way for the bourse to work as corporate body, Bombay Stock Exchange Ltd. Sebi has reaped the benefits of the establishment of the NSE as a demutualised exchange. The demutualisation of the BSE could spur the NSE to reinvent itself.

Source: The Economic Times