Inter connected stock exchange

Inter connected stock exchange

1. Inter-connected Stock Exchange

2. Company Overview Inter-connected Stock Exchange Ltd. (ISE) started its operation in 1998 in Vashi , Mumbai. It is a national-level stock exchange , providing trading, clearing, settlement, risk management and surveillance support to its trading members. It has 841 trading members, who are located in 18 cities.

3. Mission ISE shall endeavor to provide flexible and cost-effective access to multiple markets to its intermediaries across the country using the latest technology.

4. OBJECTIVE Create a single integrated national-level solution with access to multiple markets by providing high cost-effective service to investors across the country. Create a liquid and vibrant national-level market for all listed companies in general and small capital companies in particular. Provide a level playing field to small Trading Members by offering opportunity to participate in a national market for investment. Provide clearing and settlement facilities to the Trading Members across the country at their doorstep in a decentralised mode. Spread demat trading across the country.

5. Regional offices Delhi Kolkata Patna Ahmadabad Coimbatore Nagpur Mumbai

6. Depository services Inter-connected Stock Exchange is a Depository Participant of Central Depository Service(India) Limited ( CDSL ) and National Securities Depository Limited( NSDL ). ISE-DP has branches at Delhi, Kolkata, Patna, Guwahati , Ahmedabad , Hyderabad, Nagpur, Coimbatore, Tirunelveli and 155 Collection Centers across the country. Following depository services of CDSL are provided to the individual and corporate investors by ISE-DP. Dematerialisation (Demat) Rematerialisation ( Remat ) Pledge of Demat securities Electronic Access to Securities Information & Execution of Secured Transactions (easiest) Settlement of securities in Demat Mode Electronic Access to Securities Information ( easi )

7. MILESTONES January 22, 1998 -ISE incorporated as a company limited by guarantee. November 18, 1998-SEBI grants recognition to ISE. January 18, 2000 -Incorporation of ISS as a company limited by share capital. February 24, 2000 -SEBI registers ISS for the Capital Market segment of NSE. May 4, 2001-Internet trading for clients started by ISS for the NSE segment through DotEx Plaza. February 13, 2002-SEBI registers ISS for the Futures & Options segment of NSE. June 21, 2003-First Investor Education Program under the Securities Market Awareness Campaign (SMAC) of SEBI conducted at Vashi .

8. Cont December 27, 2004-Trading in the BSE equities segment started by ISS. November 24, 2005-ISE re-registered as a “for profit” company, limited by shares. September 13, 2007-ISE was notified by SEBI as a “Demutualised Exchange”. January 30, 2008-Restructuring of Board of ISE in accordance with the Corporatization and Demutualization Scheme, 2005. March 4, 2010-ISE awarded the contract to TCS for reviving its Trading Platform.

9. CLEARING & SETTLEMENT SYSTEMS In tune with the SEBI decision, ISE has implemented T+2 settlement cycle from April 1, 2003. The movement of funds is done through HDFC Bank and ICICI Bank, while securities are moved only in demat mode through the National Securities Depository Ltd. and Central Depository Services (India) Ltd.

10. RESEARCH CELL The Research Cell has been established in November 2005 with the objective of carrying out quality research on various facets of the Indian financial system in general and the capital market in particular. It has brought out a weekly publication titled ‘Weekly Corporate Tracker’ and a booklet entitled ‘Basics of Economics’. The Research Cell plans to expand its activities by publishing a host of value based research publications, covering a number of areas, such as equities, derivatives, bonds, mutual funds, risk management, pension funds, money markets and commodities.

11. TRAINING CENTRE The ISE Training centre, established in November 2000, has been conducting classroom training programmes on different subjects related to the capital market, such as equities trading and settlement, derivatives trading, day trading, arbitrage operations, technical analysis, financial planning, Etc. It also aims to make and build the professional careers of MBA, post graduates and graduates, with a view to enabling them to work effectively in securities trading, risk management,financial management, function as intermediaries(viz. stock brokers, sub-brokers, merchant bankers, clearing bankers etc.)

12. INVESTOR PROTECTION All settlement liabilities amongst the Trading Members of ISE are guaranteed by the Exchange’s Settlement Guarantee fund. In addition, investors are protected against non-fulfillment of commitments by the Trading Members of ISE through the Investor Protection Fund

13. TECHNOLOGY ISE  technology driven companies and state of art technology spread across the country covering 146 cities and almost all states in India.

14. OTCEI

15. OVERVIEW OTCEI was incorporated in 1990 as a Section 25 company under the Companies Act 1956 and is recognized as a stock exchange under Section 4 of the Securities Contracts Regulation Act, 1956. The Exchange was set up to aid enterprising promoters in raising finance for new projects in a cost effective manner and to provide investors with a transparent & efficient mode of trading.

16. OASIS Securities are traded on OTCEI through the 'OTCEI Automated Securities Integrated System' (OASIS), a state-of-art screen based trading system . OASIS combines the principles of order driven and quote driven markets and enables trading members to access a transparent & efficient market directly through a nationwide telecommunication network.

17. Objectives To promote organised trading in Unlisted Securities To broadbase the existing informal market in order to make it more liquid To provide a source of valuation for securities To act as a launch pad to an IPO

18. Benefits to the Participants Act as a benchmark to value securities Creating an exit option for illiquid stocks / venture capitalists Introducing transparency for trading in Unlisted Securities Platform for issuers and first level investors (QPs) like financial institutions, State level Financial corporations, Foreign Institutional Investors to trade System for defining benchmark for securities Organising and broadbasing trading in the existing market Shuffling portfolios for the investors Increasing business for the market constituents

19. Milestone The first Indian stock exchange to introduce nationwide computerised screen-based trading. State-of-the-art, STRATUS fault tolerant computer server Trading software modeled on TCAM software Connectivity through combination of satellite (VSAT) & terrestrial (lease line/dialup) modes. Excellent infrastructure/software support from TCS/HCL Comnet Network of Members / Dealers spread over more than 50 cities.

20. OTC Exchange of India has been co-promoted by the leading financial institutions of the country : ICICI Bank Limited IDBI Bank Limited. SBI Capital Markets Limited IFCI Limited Life Insurance Corporation of India Canbank Financial Services Limited General Insurance Corporation of India The New India Assurance Company Limited The Oriental Insurance Company Limited United India Insurance Company Limited National Insurance Company Limited

21. New Initiative As part of the Dave Committee report in 1996, it was suggested that equity shares of unlisted companies should be allowed to be traded on OTCEI. In this context, the exchange has designed the trading rules and the market guidelines for the initiation of Trading in Unlisted Securities and the same has been submitted to SEBI for approval. OTCEI proposes to introduce a vibrant and a well regulated market structure for trading in unlisted securities thereby giving an exit option for venture capital / Private equity, offshore funds and other institutions and corporates.