GROUP MEMBERSAJINKYA LAVATE

CHANKY JAIN

NEERAJ INGLEKAR

JAMES FERNANDES

PRITAM GAVLI

BOMBAY STOCK EXCHANGE

•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 EXTABLISHED AS “THE NATIVE SHARE AND STOCK BROKERS ASSOCIATION” IN 1875

FEATURES

SALIENT FEATURESPERMANENT RECOGNITION

EARLIER OPEN OUTCRY SYETEM NOW BOLTS

T+1 = TRANSACTION + 1 DAY

EARLIER AOP NOW LTD COMPANY (CORPORAISATION AND

DEMUTUALISATION)

STRATEGIC PARTNERS

SALIENT FEATURESNATIONWIDE REACH IN MORE THAN 359 CITIES

FIRST EXCHANGE IN INDIA TO OBTAIN ISO 9001:2000 CETIFICATION

FIRST EXCHANGE IN COUNTRY TO OBTAIN INFORMATION SECURITY MANAGEMENT

SYSTEM STANDARD BS 7799-2-2002 CERTIFICATION

WEBSITE IN GUJRATI AND HINDI

BSE INDEX

FEATURES OF SENSEXSENSEX IS A VALUE WEIGHTED INDEX

COMPOSED OF 30 STOCKS REPRESENTING VARIOUS SECTORS

THESE COMPANIES ACCOUNTS FOR ONE FIFTH OF MARKET CAPITALIZATION

BASE VALUE OF SENSEX IS 100 (APRIL 1,1979)

BASE YEAR (1978-79)

FEATURES OF SENSEXFREE FLOAT CAPITALIZATION METHOD

ICONIC STATURE-TRACKED WORLDWIDE

INDEX COOPERATION AGREEMENT WITH DEUTSCHE BORSE HAS MADE SENSEX AVAILABLE TO INVESTORS IN EUROPE AND AMERICA

ALSO AVAILABLE IN HONG KONG

30 COMPANIES OF SENSEXACC HDFC

BANKITC ONGC SUN

PHARMA

AIRTEL HERO HONDA

JAIPRAKASH AS

RELIANCE TATA MOTORS

BHEL HINDALCO L&T REL COMMU

TATA POWER

DLF HUL MAH N MAH

REL INFRA TATA STEEL

GRASIM ICICI BANK MARUTI SUZ

SBI TCS

HDFC INFOSYS NTPC STRELITE WIPRO

SIGNIFICANCEBarometer of Business climate.Facilitates capital formation.

Domestic Market/ Institutions.FIIs.FDIs.

Likely to lead to boom in other asset classes as the profits get ploughed.

FEATURESNSE has a market capitalization of around Rs

47,01,923 crore (7 August 2009) and is expected to become the biggest stock exchange in India in terms of market capitalization by 2009 end.

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[3]

FEATURESAs of 2008, the NSE VSAT terminals, 2799 in

total, cover more than 1500 cities across India

There are at least 2 foreign investors NYSE Euronext and Goldman Sachs who have taken a stake in the NSE

It is the second fastest growing stock exchange in the world with a recorded growth of 16.6%

1587 is number of listings.

OBJECTIVESEstablishing nationwide trading facility Ensuring equal access to investorsProviding fair, efficient & transparent

securities market using electronic trading system

Enabling shorter settlement cycles and book entry settlements

Meeting International benchmarks and standards

Screen Based Trading System (SBTS)

MARKET PHASES

Opening

Open Phase

Market Close

Surcon

MarketsEquity

Futures and Options

Wholesale Debt Market

Currency futures

ETF’S

Interest rate futures

What is the NSE CNX S&P Nifty 50?

FEATURESNIFTY 50 IS A VALUE WEIGHTED INDEXCOMPOSED OF 50 STOCKS

REPRESENTING VARIOUS SECTORSTHESE COMPANIES ACCOUNTS FOR 77%

of all the trading volume on the NSE and 60% of the total market capitalization. 

The index started with a base value of 1000 on November 3, 1995 and is calculated using the free float method which takes in account of market capitalization.  

COMPONENTS OF THE NIFTY 50

ABB Dr. Reddy's

Hero Honda

Larsen & Toubro

Power Grid

Satyam TCS

ACCGAIL India

Hindalco

MTNL PNBSiemens

Tata Motors

Ambuja Cements

GlaxoSmithKline Pharma

HUL Mahindra & Mahindra

Ranbaxy Labs

State Bank of India

Tata Power

BPCL

Grasim IPCL MARUTI

Reliance Comm

SAIL Tata Steel

Bharti Airtel

HCL Techno

ICICI Bank

National Aluminium Co.

Reliance ENERGY

Sterlite VSNL

BHEL HDFC Infosys NTPC Reliance Ind.

Sun Pharma

Wipro

Cipla HDFC BANK

ITC ONGC RPL Suzlon Energy

Zee

OTHER INDICESCNX Nifty Junior

S&P CNX 500

HARSHAD MEHTA

EARLY LIFEBorn in gujrati jain family

Early childhood was spent in mumbai

Later moved to raipur in M.P.

Back in mumbai after completing the schooling

STOCK MARKET SCAMHarshad mehta was making waves in stock in

early 90’s

Heavy Buying of ACC shares.

Price rose upto Rs 10000/-

Replacement cost theory.

SCAM EXPOSEDIN 1991, HE BECOME THE DARLING OF

BUSINESS MEDIA AND GAINED THE NICKNAME “BIG BULL”

ENDLESS SUPPLY OF MONEYON APRIL 23,1992. JOURNALIST SUCHETA

DALAL EXPOSED THE DUBIOUS WAYS OF HARSHAD MEHTA.

DIPPING INTO THE BANKING SYSTEM. SWIPED 600 CRORE FROM SBI

FUNDING

BR WAS AN IMPORATANT INSTRUMENT USED.

BR “confirms the sale of securities. It acts as a receipt for the money received by the selling bank.

NEEDED BANKS TO ISSUE FAKE BR’S.

BANK OF KARAD METROPOLITIAN COOPERATIVE BANK

USING OF BR’SFAKE BR’S WERE PASSED ON TO OTHER

BANKS IN EXCHANGE OF MONEY

THIS MONEY WAS PUMPED IN THE MARKET TO RISE STOCK PRISES.

PRISES KEPT ON RISING.

MARKET CRASH

EFFECTSMANY BANKS WERE LEFT HOLDING BR’S

OF NO VALUE.

BANKING SECTOR DIPPED.

THE ENTIRE SCAM ACCOUNTED TO RS.4000 CRORE

Securities and Exchange Board of India

SEBI Securities and Exchange Board of India

The Government of India set up a body called Securities and Exchange Board of India in April 1988.However,the real beginning of SEBI started in 1992,when the SEBI Act, 1992 was passed and assented by the President of India.

Objectives of SEBI The main objectives of SEBI are as

follows:Objectives towards the Investors.Objectives towards Capital Issuers.Objectives towards Intermediaries.

Role And Functions Of SEBI

1. Protection of Investors’ Interest.2. Guidelines on Capital Issues.3. Regulates Working of Mutual Funds.4. Regulates Merchant Banking Services.5. Regulates Stock Brokers Activities.

continued….

1.

6. Portfolio Management.7. Restrictions on Insider Trading.8. Regulates Take-over, and Mergers.9. Research and Publicity.10.Dematerialization of Shares.

MESSAGE FOR INVESTORSDo’s and Don'ts relating to..

ISSUE OF SECURITIESINVESTING IN DERIVATIVESDEALING WITH BROKERS & SUB - BROKERSINVESTING IN MUTUAL FUNDSBUYBACK OF SECURITIESOPEN OFFER UNDER TAKEOVER

REGULATIONSDEALING IN SECURITIES

Chairman : Shri C. B. Bhave, SEBI

The Ketan Parekh (KP) scam

KETAN PAREKHA Chartered Accountant by profession

Used to handle his family business

• NH securities

• Known as Bombay bull

• Connections with film stars ,politicians , international entrepreneurs

NETWORKBuilt a network of companies mainly in mumbai

Concentrated mainly in ICE (i.e Information Communication and entertainment)

Invested in 10 companies which is known as k-10

Shares held through KPs co. Triumph international

FUNDINGSimple method of funding

Buying shares at low price & using them as collateral to borrow from banks

Madhavapura Mercantile Cooperative Bank (MMCB)

KP used it in 2 ways- 1 Pay order rout 2 Borrowing from

mandhavi branch

The shock that shook the nationThe sensex crashed by 176 points on march

2001.

The total scam was nearly 2000 billion

Which set back the country's economy by a year

Many small investors lost their savings of life

Ketan Parekh was released on bail in May 2001

Referenceswww.bseindia.comwww.moneycontrol.comhttp://en.wikipedia.org/wiki/BSE_Sensexwww.nseindia.comhttp://en.wikipedia.org/wiki/BSE_Sensexhttp://en.wikipedia.org/wiki/Harshad_Mehtawww.sebi.gov.inhttp://en.wikipedia.org/wiki/Ketan_Parekh

REFERENCESNCFM BEGINNERS MODULE

NCFM CAPITAL MARKETS MODULE

BUSINESS ECONOMICS TYBCOM