National stock exchange

XII BUSINESS STUDIES CHAPTER CAPITAL MARKET
NCERT

1. NATIONAL STOCK EXCHANGE(NSE)

2. NATIONAL STOCK EXCHANGE National Stock Exchange (NSE) is the largest stock exchange in India It is the fourth largest in the world by equity trading volume in 2015 , Ashok Chawla - Chairman Vikram Limaye - (MD & CEO)

3. NATIONAL STOCK EXCHANGE Incorporated in November 1992 Recognised as a stock exchange in 1994 Set up by LIC, GIC & Commercial banks Paid up capital 25 crores Trading system-NEAT(National Exchange for Automated Trading) Fully automated screen based trading 2,30,000 terminals across 1500 cities

4. NATIONAL STOCK EXCHANGE OBJECTIVES Establishing a nationwide trading for all securities Ensuring equal access to all investors all over the country Providing a fair,efficient and transparent securities market through electronic trading system Enabling shorter settlement cycles and book entry settlements Meeting international benchmarks and standards

5. MARKET SEGMENTS OF NSE Two segments a)Wholesale debt market segment Provides a trading platform for a wide range of fixed income securities b)Capital market segment Provides an efficient and transparent platform for trading in equity, preference, debentures exchange traded funds and gov ernment securities

6. BOMBAY STOCK EXCHANGE

7. Bombay stock exchange(BSE) Established in 1875 Oldest in Asia, Chairman – Ashish chauhan Companies with at least 10 crore paid up capital can be listed A,B,T & Z Group In 1995 BOLT Introduced No of listed companies-5281 Market capitalisation of listed companies-67,94,300 crores (as on 18/11/2013) Turnover- 2025 crores (as on 18/11/2013)

8. Over the counter exchange of india (OTCEI) Market for securities outside the stock exchange Started in 1992 Providing market for smaller companies Capital 8 crores Recognised stock exchange Screen based computer network Headquarters Mumbai

9. Stock market index

10. Stock market indices Stock market index is a barometer of market behavior. It measures overall market sentiment through a set of stocks that are representative of the market BSE SENSEX and NSE NIFTY are the popular indices in India Dow Jones Industrial average –US NASDAQ –NASDAQ stock market- US S and P –US FTSE –London stock exchange

11. S&p BSE SENSEX Base year 1978-79 Base Index Value 100 Date of Launch 01-01-1986 Weighted average price of 30 shares in A Group From 2003,SENSEX calculated on free float Current index 20850(as on 18/11/2013) Number of scrips - 30 Index calculation frequency - Real Time

12. Definition of Free-float Shareholding of investors that would come into the open market for trading are treated as included in free-float.

13. S&p cnx nifty Index of NSE Fifty shares weighted average price movement Current index 6189(18/11/2013)

14. Depository services Depositories Act 1992 Depository is an organisation where securities of a share holder are held in electronic form

15. dematerialisation

16. Dematerialisation process Investors surrender certificates to DP DP informs depository through electronic media DP sends original certificate to the registrar for verification & cancellation Depository sends formal request to the registrar

17. Dematerialisation process Registrar informs depository of cancellation & electronic credit given Depository updates its account and informs the DP concerned DP informs the customer about the credit in its account

18. Steps in purchase/sale of securities Selection of a broker Opening a Demat account with the DP Placing order for purchase/sale of securities with the broker Execution of order through computer terminal Delivery of contract note to the investor Effecting changes in the Demat account Making/receiving the payment

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