SUBJECT :- EQUITY MARKET

PRESENTED BY

S.Y.B.COM (FINANCIAL MARKETS)

ROLL NO 03. 09. 17. NAME PRATIKSHA B. ADITYA P. GAMARE. CHIRAG B. JAIN.

42. 47.

AMIT B. SAWARDEKAR. POOJA YADAV.

Meaning of Stock Exchange

Stock Exchange (also called Stock Market or Share Market) is one important constituent of capital market. Stock Exchange is an organized market for the purchase and sale of industrial and financial security. It is convenient place where trading in securities is conducted in systematic manner i.e. as per certain rules and regulations.

Definition
According to Husband and Dockerary "Stock exchanges are privately organized markets which are used to facilitate trading in securities."

Introduction
The National Stock Exchange (NSE), located in Bombay, is India's first debt market. It was set up in 1993 to encouragestock exchange reform through system modernization and competition. It opened for trading in mid-1994. It was recently accorded recognition as a stock exchange by the Department of Company Affairs. The instruments traded are, treasury bills, government security and bonds issued by public sector companies. NSE (National Stock Exchange) was the first exchange in the world to use satellite communication technology for trading, using a client server based system called National Exchange for Automated Trading (NEAT). For all trades entered into NEAT system, there is uniform response time of less than one second.

National Stock Exchange of India

The National Stock Exchange (NSE India) is the world s third largest stock exchange in terms of transaction volumes. NSE India is based out of Mumbai. NSE is the largest stock exchange in India in terms of daily turnover and number of trades, for both equities and derivative trading. National Stock Exchange (NSE India) was promoted by leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities eliminating any conflict of interest. National Stock Exchange (NSE India) was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the India.

Innovations
y particularly on an equity index, in India. After four years of policy and regulatory debate and formulation, the NSE was permitted to start trading equity derivatives y Being the first and the only exchange to trade GOLD ETFs (exchange traded funds) in India. y NSE has also launched the NSE-CNBC-TV18 media centre in association with CNBC-TV18. y NSE.IT Limited, NSE has remained in the forefront of modernization of India's capital and financial markets, and its pioneering efforts.

NSE Index or NIFTY

The NSE Index or the Nifty Index as it is popularly known, is the index of the performance of the 50 largest & most profitable, popular companies listed in the index. Each company that is part of the index has its own weightage in the value of the Index. The value of the Nifty Index is the weighted average of the prices of these 50 companies.

History
y The National Stock Exchange of India (NSE) situated in Mumbai - is the largest and most advanced exchange with 1016 companies listed and 726 trading members. y The NSE is owned by the group of leading financial institutions such as Indian Bank or Life Insurance Corporation of India. However, in the totally demutualised Exchange, the ownership as well as the management does not have a right to trade on the Exchange. Only qualified traders can be involved in the securities trading.

Top 10 Companies NSE having highest profit

Rank 1 2 3 4 5 6 7 8 9 10 Company Name ONGC Reliance SBI NTPC Bharti Airtel SAIL Infosys Tata Steel Reliance Comm TCS

Introduction
Bombay stock exchange is the oldest stock exchange in Asia with rich heritage It spans over three centuries with 133 years of existence BSE was established as the native share and stock brokers association in 1875 BSE is first in the country to be granted permanent recognition under the securities contract regulation act, 1956.

Interesting facts about Bombay Stock Exchange

It is the oldest and the largest stock exchange in Asia. It is the fifth largest stock market in the world. Approximately 6,000 Indian companies are listed with Bombay Stock Exchange. It is the first stock exchange that introduced Equity derivatives in India. Free Float Index, US$ version of BSE Sensex and Internet Trading Platform were launched initially by Bombay Stock Exchange in India. It is the first amongst all stock exchanges in the country to collect ISO certification for Surveillance, Clearing & Settlement. It is the earliest to have the special facility for financial training. BSE Online Trading System (BOLT) used by BSE is one of the few stock trading systems in the world that manages hybrid/mixed mode of trading.

BSE INDEX

SENSITIVE

INDEX

SENSEX

OBJECTIVE OF SENSEX
y To measure market movements y Benchmark for funds performance y For index based derivatives products

FEATURES OF SENSEX
y Sensex is a value weighted index y Composed of 30 stocks representing various sectors y These companies accounts for one fifth of market capitalization y Base value of sensex is 100 (April 1,1979) y Base year (1978-79)

y Free float capitalization method y Iconic stature-tracked worldwide y Index cooperation agreement with deutsche borse has made sensex available to investors in Europe and America y Also available in Hong Kong

HOW SENSEX IS CALCULATED

Sensex is calculated using a marketcapitalization weighted methodology. As per this methodology, the level of index at any point of time reflect the total market value of 30 components stock relative to a base period. (the market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company).

30 COMPANIES OF SENSEX
ACC BHEL BHARTI AIRTEL CIPLA DLF WIPRO HDFC HDFC BANK HERO HONDA HINDALCO HUL ITC ICICI BANK INFOSYS JAPEE ASSOC JSPL L&T M&M MARUTI SUZUKI TATA STEEL NTPC RIL RELIANCE INFRA SBI

TATA POWER STERLITE ONGC RELIANCE COMM TCS TATA MOTORS

Listing
Objectives of Listing
y Provide liquidity to securities y Mobilize savings for economic development y Protect Interest of investors by ensuring all disclosures .

Guidelines for Following Operations

y Public Issues (For IPO & FPO) y Preferential Issues y Indian Depository Receipts

Guideline For Issues (IPO & FPO)

For Large Cap Companies

Large cap Co. means a company with a minimum issue size of Rs. 10 crore & market capitalization of not less than Rs. 25 crore.
y The minimum post-issue paid-up capital of the applicant company

(hereinafter referred to as "the Company") shall be Rs. 3 crore

y The minimum issue size shall be Rs. 10 crore y The minimum market capitalization of the Company shall be Rs. 25

crore (market capitalization shall be calculated by multiplying the post-issue paid-up number of equity shares with the issue price).

For Small Cap Companies

A small cap company is a co. other than large cap co.
y The minimum post-issue paid-up capital of the Company shall be Rs. 3

crore

y The minimum issue size shall be Rs. 3 crore; and y The minimum market capitalization of the Company shall be Rs. 5 crore

(market capitalization shall be calculated by multiplying the post-issue paid-up number of equity shares with the issue price); and

y The minimum income/turnover of the Company shall be Rs. 3 crore in

each of the preceding three 12-months period; and

y The minimum number of public shareholders after the issue shall be 1000.

Thank you