Stock Exchanges

What is a Stock Exchange?

Definition of Stock Exchange : The Securities
Regulation Act of 1956 defines stock exchange as
an association , organization , or a individual
which is established for for the purpose of
assisting , regulating , and controlling business in
buying ,selling and dealing in securities.
Stock Exchanges are an organized marketplace,
either corporation or mutual organization, where
members of the organization gather to trade
company stocks or other securities.
It also facilitates for the issue and redemption of
securities and other financial instruments.

Functions of a Stock
Exchange
Provide central and convenient meeting places
for sellers and buyer of securities.
Increase the marketability and liquidity of
securities.
Help capital formation.
Help companies and government to raise funds
from the investors.
Provides safety in dealings.
Recognises the broad trend in the market.

Regulation of Stock
Exchanges
Regulatory framework
Stock Exchanges have to comply with the provisions of
Securities Contracts (Regulation) Act, 1956 and the rules
made by SEBI under SEBI Act 1992.

Regulatory Institution
Securities and Exchange Board of India(SEBI)
It is the regulatory authority established under the SEBI
Act 1992 and is the principal regulator for Stock
Exchanges in India.
It specifies rules and regulations to control the stock
exchange.
It provides licenses to dealers and brokers.
It conducts yearly inspection of stock exchanges.

Structure of Indian Stock Exchanges

SEBI

Stock Exchanges

National Exchanges

BSE

NSE
OTCEI

Regional Exchanges

20 Other Regional Exchanges

Bombay Stock Exchange

(BSE)
After the bubble burst in 1865 when the American Civil War,
the brokers organized an informal association in Mumbai
named The Natic Stock and Share Brokers Association in
1875, which later came to be known as Bombay Stock
Exchange.
It is the oldest stock exchange in Asia.
Open outcry system of trading until 1995.
Faced with stiff competition with establishment of NSE in 1994.
Adopted to computer based trading in 1995 BOLT.
Started computer based trading on terminals outside Mumbai
in 1996.
Indices of BSE- Sensex, Dollex.

National Stock Exchange of

India (NSE)
It is a tax paying company promoted by leading financial
institutions and banks on the behest of Government of India.
It started its operation after being recognized as a stock
exchange in 1994.
It is Indias leading stock exchange.
It was established as a modern stock exchange of India:
Ringless;
Screen Based Trading;
Transparency;
Professionalism in trading.

Nation wide coverage/terminals.

Index- S&P CNX Nifty, S&P CNX Defty.

Over the Counter

Exchange of India (OTCEI)
It is the first national, ringless and
computerized stock exchange of India.
It started its operations in 1992.
It was set up to provide small and medium
companies an access to the capital market for
raising funds.
It allows listing of small and medium
companies with minimum paid up capital as
low as Rs. 30L.

Largest stock exchanges

IN THE WORLD

IN INDIA

LONDON STOCK EXCHANGE

NATIONAL STOCK EXCHANGE

NEW YORK STOCK EXCHANGE

BOMBAY STOCK EXCHANGE

SHANHAI STOCK EXCHANGE

CALCUTTA STOCK EXCHANGE

AUSTRALIA STOCK EXCHANGE

TOKYO STOCK EXCHANGE
HONG KONG STOCK EXCHANGE
TORONTO STOCK EXCHANGE
DEUTSCHE BORSE

COCHIN STOCK EXCHANGE

MULTI COMMODITY EXCHANGE
DERIVATIVES EXCHANGE
OTC EXCHANGE

BM&F BOVESPA

PUNE STOCK EXCHANGE

NASDAQ OMX STOCK EXCHANGE

INTERCONNECTS EXCHANGE

Thank You!