eco projec

8/3/2019 ECO Projec..

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Introduction of stock exchange

A Stock Exchange is the place where investors go to buy/sell their shares

Once a company's public offering is complete, it gets listed in a stock exchange. After listing itwould be available for trading to all investors in the stock exachanges where they are listed. InIndia we have two major stock exchanges. They are:

1. The National Stock Exchange (NSE)

2. The Bombay Stock Exchanges (BSE)

National Stock Exchange:

Assimilated in November 1992, the National Stock Exchange of India (NSE) was a tariff

forfeiting association.

The NSE is India's largest and the worlds third largest stock exchange in terms of Transactionvolumes & amounts. The NSE is based out of Bombay. The NSE has set up its trading platform

as a nation-wide, fully automated screen based system. This enables anyone in any part of thecountry to trade on shares listed in the NSE.

Bombay Stock Exchange:

The BSE is the oldest stock exchange in Asia. It is situated in Dalal Street in Mumbai. It is the

third largest stock exchange in south Asia and the tenth largest in the world. BSE has over 5000

companies that are listed in it. The objectives of the BSE are similar to that of the NSE. BSE also

uses the latest technologies in the IT field to provide a single place where traders from across the

world can buy/sell shares in the Indian share market. BSE is well known as the oldest stock

market in Asia and was initially known as 'The Native Share & Stock Brokers Association.'

Incorporated in 1875, BSE became the first certified exchange in India. The exchange is an

investor's hub with over 5000 listed companies.


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Meaning of stock exchange

Stock exchange market refers to an organized market where govt. Securities and shares, bonds

and debentures of the benefited trading units are regularly transacted. Itsbusiness is carried onwith in a particular building in which a person can easily convert his shares into cash or new

securities. Thus it is a market for the exchange of transfer able securities by providing acontinuous market.

The term stock exchange is referred by some people to stat Market. Therefore some writer says,

"It is a place to get rich quick while others regard as place of gambling.The securities ofpubliccompanies can be transacted in the exchange only if they have been approved by the committee

of the stock exchange.

Stock exchange (also called stock market or share market) is one important constituent of capital

market. It is an organized market for the purchase and sale of industrial and financial security. It isconvenient place where trading in securities is conducted in systematic manner i.e. as per certain rules

and regulations. It performs various functions and offers useful services to investors and borrowing

companies. It is an investment intermediary and facilitates economic and industrial development of a

country.

Defination:-

1) According to Husband and Dockerary "stock exchanges are privately organized marketswhich are used to facilitate trading in securities".

(2) The Indian Securities Contracts (Regulation) Act of1956 defines stock exchange as "an

association, organization or body of individuals, whether incorporated or not, established for thepurpose of assisting, regulating and controlling business in buying, selling and dealing in

securities".


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Features of stock exchange

1. Market for securities : Stock exchange is a market, where securities of corporate bodies,

government and semi-government bodies are bought and sold.2. Deals in second hand securities : It deals with shares, debentures bonds and such

securities already issued by the companies. In short it deals with existing or second hand

securities and hence it is called secondary market.3. Regulates trade in securities : Stock exchange does not buy or sell any securities on its

own account. It merely provides the necessary infrastructure and facilities for trade insecurities to its members and brokers who trade in securities. It regulates the trade

activities so as to ensure free and fair trade4. Allows dealings only in listed securities : In fact, stock exchanges maintain an official

list of securities that could be purchased and sold on its floor. Securities which do notfigure in the official list of stock exchange are called unlisted securities. Such unlisted

securities cannot be traded in the stock exchange.5. Transactions effected only through members : All the transactions in securities at the

stock exchange are effected only through its authorised brokers and members. Outsidersor direct investors are not allowed to enter in the trading circles of the stock exchange.

Investors have to buy or sell the securities at the stock exchange through the authorisedbrokers only.

6. Association of persons : A stock exchange is an association of persons or body ofindividuals which may be registered or unregistered.

7. Recognition from Central Government : Stock exchange is an organised market. Itrequires recognition from the Central Government.

8. Working as per rules : Buying and selling transactions in securities at the stock

exchange are governed by the rules and regulations of stock exchange as well as SEBIguidelines. No deviation from the rules and guidelines is allowed in any case.

9. Specific location : Stock exchange is a particular market place where authorised brokerscome together daily (i.e. on working days) on the floor of market called trading circlesand conduct trading activities. The prices of different securities traded are shown on

electronic boards. After the working hours market is closed. All the working of stockexchanges is conducted and controlled through computers and electronic system.

10.Financial Barometers : Stock exchanges are the financial barometers and developmentindicators of national economy of the country. Industrial growth and stability is reflected

in the index of stock exchange.11.1. Specialized market. Stock exchange is a specialized market for the purchase and sale of

industrial and financial securities.2. Rigid rules. There are large number of buyers and sellers who conduct their activities

according to rigid rules.

3. Basis of formation. Its activities are controlled by the company ordinance in our country. It

can be formed as company limited by guarantee or company limited by shares.

12.


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Price Transparency

y A stock exchange allows all of the traders to see the current stock price posted in "real time" pricing.

This means that it takes into account all stock sales and trades rapidly to reflect the accurate current

price based on demand. Stock investors may have advantages over others based on research they have

done or their own valuation of the stock. However, they will not have a more updated official price than

their trading partners.

Clearing Firm

y When making a trade on a stock market, it might appear that you are making a trade directly with

another party. Instead, trades are made using rated financial institutions known as clearing firms,

according to informedtrades.com. Technically, the clearing firm purchases the stocks from both parties

and transfers both the stock and the money involved. This is designed to ensure that neither party

misleads the other about its ability to complete the trade.

Regulations

y There are rules about how a trade must be conducted in each specific stock market. Stock markets

also have rules about which stocks may be traded and which traders are permitted to trade on the

exchange. Stock exchanges usually have regulatory bodies to handle disputes that occur on the trading

floor. If an offense is severe enough, a trader may be banned from trading.

Liquidity

y Investors are limited in the number of company shares they can trade in a single transaction. This rule

is designed to protect the liquidity of the stock. The regulating body for each particular stock exchange

handles any complaints regarding liquidity of a stock transaction, according to informedtrades.com.


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Functions

1.Raising capital for businesses

The Stock Exchange provides companies with the facility to raise capital for expansion throughselling shares to the investing public.

2.Mobilizing saving for investment

When people draw their savings and invest in shares, it leads to a more rational allocation ofresources because funds, which could have been consumed, or kept in idle deposits with banks,

are mobilized and redirected to promote business activity with benefits for several economic

sectors such as agriculture, commerce and industry, resulting in a stronger economic growth andhigher productivity levels and firms.

3.Facilitating company growth

Companies view acquisitions as an opportunity to expand product lines, increase distribution

channels, hedge against volatility, increase its market share, or acquire other necessary businessassets. A takeover bid or a merger agreement through the stock market is one of the simplest and

most common ways for a company to grow by acquisition or fusion.

4.Redistribution of wealth

Stocks exchanges do not exist to redistribute wealth. However, both casual and professionalstock investors, through dividends and stock price increases that may result in capital gains, will

share in the wealth of profitable businesses.

5.Corporate governance

By having a wide and varied scope of owners, companies generally tend to improve on their

management standards and efficiency in order to satisfy the demands of these shareholders andthe more stringent rules for public corporations imposed by public stock exchanges and the

government. Consequently, it is alleged that public companies (companies that are owned by

shareholders who are members of the general public and trade shares on public exchanges) tendto have better management records than privately-held companies (those companies whereshares are not publicly traded, often owned by the company founders and/or their families and

heirs, or otherwise by a small group of investors). However, some well-documented cases areknown where it is alleged that there has been considerable slippage in corporate governance on

the part of some public companies (Pets.com (2000), Enron Corporation (2001), One.Tel (2001),Sunbeam (2001), Webvan (2001), Adelphia (2002), MCI WorldCom (2002), or Parmalat (2003),

are among the most widely scrutinized by the media).


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6.Creating investment opportunity of small investor

As opposed to other businesses that require huge capital outlay, investing in shares is open toboth the large and small stock investors because a person buys the number of shares they can

afford. Therefore the Stock Exchange provides the opportunity for small investors to own shares

of the same companies as large investors.

7.Govt. capital- raising for development project

Governments at various levels may decide to borrow money in order to finance infrastructureprojects such as sewage and water treatment works or housing estates by selling another category

of securities known as bonds. These bonds can be raised through the Stock Exchange wherebymembers of the public buy them, thus loaning money to the government. The issuance of such

bonds can obviate the need to directly tax the citizens in order to finance development, althoughby securing such bonds with the full faith and credit of the government instead of with collateral,

the result is that the government must tax the citizens or otherwise raise additional funds to make

any regular coupon payments and refund the principal when the bonds mature.

8. Barometer of the economy

At the stock exchange, share prices rise and fall depending, largely, on market forces. Share

prices tend to rise or remain stable when companies and the economy in general show signs ofstability and growth. An economic recession, depression, or financial crisis could eventually lead

to a stock market crash. Therefore the movement of share prices and in general of the stockindexes can be an indicator of the general trend in the economy.

Other functions of the stock exchange market as an organization are:

y To guarantee the legal and economic security of the agreed contracts.

y To provide official information about the quantities that are negotiated and of the quoted

prices.y To fix the prices of the securities according to the fundamental law of the offer and the

demand.

Specifying a bit more and centering on the two main agents that intervene in the market,

investors and companies, we could do the following classification:


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history of stock exchange market

History of the Indian StockMarket - The OriginOne of the oldest stock markets in Asia, the Indian Stock Markets have a 200 years old history.

18th

Century

East India Company was the dominant institution and by end of the century,

busuness in its loan securities gained full momentum

1830's Business on corporate stocks and shares in Bank and Cotton presses started inBombay. Trading list by the end of 1839 got broader

1840's Recognition from banks and merchants to about half a dozen brokers

1850's Rapid development of commercial enterprise saw brokerage business attractingmore people into the business

1860's The number of brokers increased to 60

1860-61 The American Civil War broke out which caused a stoppage of cotton supplyfrom United States of America; marking the beginning of the "Share Mania" in

India

1862-63 The number of brokers increased to about 200 to 250

1865 A disastrous slump began at the end of the American Civil War (as an example,

Bank of Bombay Share which had touched Rs. 2850 could only be sold at Rs. 87)

Pre-Independance Scenario - Establishment of Different Stock Exchanges

1874 With the rapidly developing share trading business, brokers used to gather at astreet (now well known as "Dalal Street") for the purpose of transacting business.

1875 "The Native Share and Stock Brokers' Association" (also known as "The BombayStock Exchange") was established in Bombay

1880's Development of cotton mills industry and set up of many others

1894 Establishment of "The Ahmedabad Share and Stock Brokers' Association"

1880 - 90's Sharp increase in share prices of jute industries in 1870's was followed by a boomin tea stocks and coal

1908 "The Calcutta Stock Exchange Association" was formed

1920 Madras witnessed boom and business at "The Madras Stock Exchange" wastransacted with 100 brokers.

1923 When recession followed, number of brokers came down to 3 and the Exchangewas closed down

1934 Establishment of the Lahore Stock Exchange

1936 Merger of the Lahoe Stock Exchange with the Punjab Stock Exchange

1937 Re-organisation and set up of the Madras Stock Exchange Limited (Pvt.) Limited


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led by improvement in stock market activities in South India with establishment

of new textile mills and plantation companies

1940 Uttar Pradesh Stock Exchange Limited and Nagpur Stock Exchange Limited was

established

1944 Establishment of "The Hyderabad Stock Exchange Limited"

1947 "Delhi Stock and Share Brokers' Association Limited" and "The Delhi

Stocks and Shares Exchange Limited" were established and later on merged

into "The Delhi Stock Exchange Association Limited".


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meaning of national stock exchange

The National Stock Exchange of India (NSE) is India's largest securities exchange in terms ofdaily trade numbers. It offers automated electronic trading of a variety of securities, includingequity, corporate debt, central and state government securities, commercial paper, CDs, and

exchange traded funds. The exchange has more than 1,000 listed members. Owned by more than20 different financial and insurance institutions, NSE specializes in three market segments:

wholesale debt, capital market (automated screen-based trading system), and futures and options(derivatives, the largest segment of the exchange). NSE started operations in 1994. The NationalStock Exchange of India (NSE) is one of the most important and most advanced stock markets in India,

and, in terms of transactions, it is the third largest stock exchange in the World.

The NSE India is situated in Mumbai, the financial capital of India. On December 31, 2005, the NSE VSAT

terminals (2799 in total) spanned over 320 cities in India. The NSE introduced the first Indian clearing

corporation, "National Securities Clearing Corporation Ltd.", the first depository of India, National

Securities Depository Limited.

Defination:


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Advantages of national stock exchange

Advantages of NSE over other stock exchanges

NSE makes the possibility of a nationwide integrated stock trading exhange a reality. NSE has enabled to streamline intermarket operations and has made securities accessible across

the country, thus leading to price uniformity for traders.. NSE has a fully computerised network in place that make the operations more efficient and

transparent.

Order-driven market mechanism

NSE operates on a purely order-driven market mechanism. The technology that NSE has adoptedensures this. The price changes on NSE immediately reflect the effect of the latest trade in real

time. This is at par with the major stock exchanges in the world and worlds ahead of non-technology driven exchanges.

NSE Technology

NSE has leveraged the latest technology to give it the competitive advantage. Using VSATtechnology NSE has the participation of 320 Indian cities. Trading members can log into the

NSE network from any place in India. NSE is the largest VSAT based Stock exchange in theworld enabling it to process up to 6 million transactions per day. That works out to 1.6 lac

transactions per second!

Internet trading

Since the past few years, a trader can trade on the Internet. Internet trading takes place through

order routing systems, that route client orders to exchange trading systems for execution. If youwant to do Internet based trading you will have to open a DMAT account with a SEBI registered

broker.

Stock Indices - how to judge market movements

Stock Indices can tell you how the overall market is doing as well as how a particular sector of

the economy is doing. NSE has the following indices to enable the investor to glean sector-wise

information

S&P CNX Nifty

CNX Nifty Junior CNX IT

Bank Nifty CNX 100


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The ways Indices are calculated differ. For example the CNX 100

The CNX 100 Index has a base date of Jan 1, 2003 and a base value of 1000. CNX 100 iscalculated using the market capitalization weighted method; the level of the index reflects the

total market value of all the stocks in the index in relation to a particular base period.

The S&P CNX Nifty is the main index owned by the NSE. It covers 22 sectors of the economyand is composed of fifty companies. Apart from indicating how the stock market is doing, it also

benchmarks fund portfolios and derivatives.

Retail Debt Market

NSE has introduced a trading facility through which retail investors can buy and sellgovernment securities from different locations in the country through registeredNSE brokers and their sub brokers in the same manner as they have been buying

and selling equities. This market is known as "Retail Debt Market" of NSE.

Government Securities : Government securities are debt instruments issued byReserveBank of India on behalf of the Government of India and is known as G-Secs or Gilts.

A government security is direct obligation of the Central Government carries its fullbacking and is also known as Sovereign Debt. The payment of regular interest andthe repayment of face value are assured by the Central Government through theReserve Bank of India. Once issued, these are traded in the secondary market.Most of the trading in the Government Securities takes place on the wholesale basisin the inter-bank market. The major market participants are banks and financial

institutions, mutual funds, insurance companies, primary dealers, provident funds,trusts and individuals. Most of these participants actively trade in governmentsecurities due to their statutory requirements.Prior to introduction of NSE's Retail Debt Market in January 2003, governmentsecurities were not available for purchase and sale to the retail investors.

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Role of national stock ecxhange

Capital occupies a position so dominant to the economic theory of production anddistribution that it is natural to assume that it should occupy at least an equally importantplace in the theory and practice of economic growth. The subject whether approached

historically or analytically or from the standpoint of policy, it is the process of capitalaccumulation that occupies the front of the stage. It is usually implied that economic growthand capital accumulation with a high positive and significant correlation and additions to thestock of capital can provoke and facilitate faster rate of growth even under thecircumstances which can be described as shortage of capital.

The aforesaid correlation between the process of economic growth and capital accumulationinspired the earlier theorists of economic development and even in the works of moderneconomists output is still assumed to be limited by capital whether there is abundant labouror not. A high rate of capital formation usually results in rapid growth in the production andincome, but more capital formation by itself will not bring a corresponding acceleration inthe growth of production. It also depends to a large extent on the manner in which thecapital is utilized.

Capital market means the market for all the financial instruments, short term and long termas also commercial, industrial and government paper. The capital market deals with capital.The capital market is a market where borrowing and lending of long term funds takes place.Capital markets deal in both debt and equity. The governments both central and state raisemoney in the capital market, through the issue of government securities. Capital marketsrefer to all the institutes and mechanisms of raising medium and long-term funds, throughvarious instruments available like shares, debentures, bonds etc.

Corporate both in the private sector as well as in the public sector raise thousands of croresof rupees in these markets. The government, through Reserve Bank of India, as well asfinancial institutions also raise a lot of money from these markets. Example of a well-

developed markets are The Global depository and American depository.

There are two important operation carried on in these markets:

1. The raising the new capital2. Trading in securities already issued by the companies.

The important constituents of the capital market are:

1. The stock exchanges2. Banks3. The investment trusts and companies

4. Specialised financial institutions or development banks.5. Mutual funds6. Post office saving banks7. Non banking financial institutions8. International financial investors and institutions.

The supply in this market comes from saving from different sectors of the economy. Thesecome from the following sources:


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1. Individuals2. Corporates3. Governments4. Foreign countries5. Banks6. Provident funds

7. Financial institutions.

Moreover the establishment of National Stock Exchange and Bombay Stock Exchange hasbeen turning point in the working of capital markets. Recently the RBI has allowedparticipation of individuals in the government securities markets. This move is likely to opennew avenues for investment to individuals. Moreover the Finance Ministry has announcedthe removal of income tax on dividend in the hands of the receiver and no capital gains taxon investments made in equity after 1.3.03 and held for one year.


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CONCEPT OF STOCK EXCHANGE

The Stock Exchanges in India as elsewhere have a vital role to play in the development ofthe country in general and industrial growth of companies in the private sector in particularand helps the Government to raise internal resources for the implementation of variousdevelopment programmes in the public sector. As a segment of the capital market itperforms an important function in mobilizing and channelising resources which remainotherwise scattered. Thus the Stock Exchanges tap the new resources and stimulate a broadbased investment in the capital structure of industries.

A well developed and healthy stock exchange can be and should be an important institutionin building up a property base alongwith a socialist in India with broader distribution of

wealth and income. Thus Stock Exchange is a vital organ in a modern society. Without astock exchange a modern democratic economy cannot exist. The system of joint stockcompanies financed through the public investment as emerged has put the vast means offinances almost to enterpreneurs' needs.

Finance from external sources mainly from the investing public can become possible onlywhen an institute like Stock Exchange provides opportunities for the conversion of scatteredsavings into profitable investments with the promises of a reasonable yield and minimumelement of risk. Such a mechanism as provided by Stock Exchanges is not merely a sourceof capital but also a conduit which channelises the savings into investment alongwith a freemovement of capital.

The Stock Exchange comes close enough to a perfectly competitive market allowing theforces of demand and supply a reasonable degree of freedom to operate as compared toother markets specially the commodity markets. This segment of the factor market can beconsidered as a perfect or a nearly perfect market. Apart from providing a mechanism fortransacting business in stock and shares it generates genuine potential for a newentrepreneur to take up initiative in the private sector enterprises and allows the expansionof investing community by offering gainful development of their otherwise sluggish or shycapital. The Stock Exchange must assume the responsibility of protecting the rights ofinvestors specially the small investors in the Joint Stock Companies.


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THE NATIONAL STOCK EXCHANGE OF INDIA LIMITED

The National Stock Exchange of India Limited has genesis in the report of the High PoweredStudy Group on Establishment of New Stock Exchanges, which recommended promotion ofa National Stock Exchange by financial institutions (FIs) to provide access to investors fromall across the country on an equal footing. Based on the recommendations, NSE waspromoted by leading Financial Institutions at the behest of the Government of India and wasincorporated in November 1992 as a tax-paying company unlike other stock exchanges inthe country.

On its recognition as a stock exchange under the Securities Contracts (Regulation) Act,1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM)segment in June 1994. The Capital Market (Equities) segment commenced operations inNovember 1994 and operations in Derivatives segment commenced in June 2000.

NSE's Mission

NSE's mission is setting the agenda for change in the securities markets in India. The NSEwas set-up with the main objectives of:

1. Establishing a nation-wide trading facility for equities, debt instruments and hybrids,

2. Ensuring equal access to investors all over the country through an appropriatecommunication network,

3. Providing a fair, efficient and transparent securities market to investors using electronictrading systems, enabling shorter settlement cycles and book entry settlements systems,

and

4. Meeting the current international standards of securities markets.

5. The standards set by NSE in terms of market practices and technologies have becomeindustry benchmarks and are being emulated by other market participants. NSE is morethan a mere market facilitator. It's that force which is guiding the industry towards newhorizons and greater opportunities.

Corporate Structure of NSE

NSE is one of the first de-mutualised stock exchanges in the country, where the ownershipand management of the Exchange is completely divorced from the right to trade on it.Though the impetus for its establishment came from policy makers in the country, it hasbeen set up as a public limited company, owned by the leading institutional investors in thecountry.

From day one, NSE has adopted the form of a demutualised exchange - the ownership,management and trading is in the hands of three different sets of people. NSE is owned bya set of leading financial institutions, banks, insurance companies and other financialintermediaries and is managed by professionals, who do not directly or indirectly trade on


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the Exchange. This has completely eliminated any conflict of interest and helped NSE inaggressively pursuing policies and practices within a public interest framework.

The NSE model however, does not preclude, but in fact accommodates involvement, supportand contribution of trading members in a variety of ways. Its Board comprises of seniorexecutives from promoter institutions, eminent professionals in the fields of law, economics,

accountancy, finance, taxation, etc, public representatives, nominees of SEBI and one fulltime executive of the Exchange.

While the Board deals with broad policy issues, decisions relating to marketoperations are delegated by the Board to various committees constituted by it.Such committees includes representatives from trading members, professionals,the public and the management. The day-to-day management of the Exchange isdelegated to the Managing Director who is supported by a team of professionalstaff. Distinctive Features of NSE

NSC is able to radically transform the Indian Capital market during the decade of itsexistence. It has changed the mindset of all market players and has built investor

confidence in the secondary markets.

"The NSE is different from most other stock exchanges in India where membershipautomatically implies ownership of the exchange. The ownership and management of NSEhave been totally delinked from the right of trading members. This pattern has beenadopted.

Since broker owned stock exchanges are also broker managed there is a clear conflict ofinterest. This is a structurally unstable model, as it inevitably leads to emergence of powergroups, and investor interests invariably take a back seat.

Management Structure

The NSE has tried to benefit from the long experience and expertise of its trading membersin their advisory capacities. It Board of Directors does not have any representative ofbrokers.

The Executive Committee, which is concerned with the management of the exchange, hasfour brokers nominated by the board to reflect different types of interests in the market. Butthe exchange has appointed different committees to advise in areas such as best marketpractices, settlement procedures and risk containment systems.

Securities industry professional and trading members man these committees and NSE staffconcerned with respective areas of exchange operations also participate in them. The day-t-day management of NSE is delegated is delegated to the Managing Director who issupported by a team of professional staff.

Introduction of Technology Initiatives

Stock exchanges today have to rely increasingly on information technology to staycompetitive in delivering services. This is primarily because of newer trading channels usedfor communicating and transacting like Internet and On-line security trading.


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The IT department of NSE employs 150 IT professionals forming a third of its total staffstrength. The exchange has invested close to Rs.400 Crores in computers, software andcommunication equipment. It is therefore recognized as one of "Top IT User" organizations.

In line with global trends NSE is structured and operates much like an informationtechnology company. It has the largest VSAT network in this part of the world with a huge

and complex web of hardware and software. It has a detailed disaster recovery site thatmirrors all operating systems. The NSE has set up its own Internet Webster, which is visiteddaily by four Lakh persons

Stock Exchange Technology

The modern stock exchange technology does not need the traditional type of brokers tomatch investors' orders as they used to do on the physical-trading floor. The automatedTrading screens can match buy and sell orders without the intervention of brokers. Todaybrokers are needed only for settlement responsibilities. NSE introduced a nation-wide VSATdriven screen based trading system.

Operations commenced in Mumbai and rapidly spread all over India. NSE today offersinvestors trading facilities in over 280 cities and town through 4000 terminals. For the firsttime NSE introduced in India screen based trading with automated matching.

The system conceals the identity of the parties to an order or trade. This help betterfunctioning of the market as disclosures of identity would put most members at adisadvantage. The trading system operates on price time priority. This means given thesame set or orders, the orders that come first receive priority in matching. When an orderdoes not find an immediate match in remains in the system and is displayed to the wholemarket, till a fresh order comes in or the earlier order is modified or cancelled. The marketscreens at any point of time give the members complete information on the total orderdepth in a security, the high price, the low price, the last traded price and other relatedinformation.

Nationwide Trading Facility

Nationwide Trading system of NSE has immensely benefited investors in all places, which donot have a stock exchange nearby. Earlier their orders took three days for confirmation.This time lag is now a thing of the past, as the orders and prices are visible and instantlyavailable to all investors across the country, representing a dramatic change in investoraccess and protection. This has served to unify the earlier fragmented market into a singlenational order book, bringing with it unprecedented increases in liquidity and transparency.

Risk Containment Measures -Investors freed from Counterparty Risks

NSE introduced risk containment measures like mark to market margins, exposure limitsetc., bringing enormous safety to fast growing and changing electronic market.

NSE has introduced the concept of a clearing corporation, by which the counterparty risk ofeach member is taken by NSCC and the financial settlement guaranteed by the Corporation.Counterparty risk is being guaranteed through the tight risk management system and aninnovative method of on-line position monitoring and automatic disablement. NSEintroduced this system of automatic disablement to control grave risks. Under this system


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each broker of NSC is given a limit up to which he can trade. This limit is fixed in relation tothe money he deposits with NSC or its clearing corporation. This money can be cash orpledge of securities or Bank Guarantee. Currently the limit is 8.5 times the moneydeposited.

The trading system works in such a way that the broker gets warning messages after he

crosses 70% of his trading limit and the moment he reaches 100% of his limit NSEcomputer disconnects all his terminals from the system so that he cannot trade further. Heis allowed to trade again only when he brings additional deposits or authorise NSC to reducehis trades either by selling or buying on his behalf.

NSE Milestones

November 1992 IncorporationApril 1993 Recognition as a stock exchangeMay 1993 Formulation of business planJune 1994 Wholesale Debt Market segment goes liveNovember 1994 Capital Market (Equities) segment goes liveMarch 1995 Establishment of Investor Grievance Cell

April 1995 Establishment of NSCCL, the first Clearing CorporationJune 1995 Introduction of centralised insurance cover for all trading membersJuly 1995 Establishment of Investor Protection FundOctober 1995 Became largest stock exchange in the countryApril 1996 Commencement of clearing and settlement by NSCCLApril 1996 Launch of S&P CNX NiftyJune 1996 Establishment of Settlement Guarantee FundNovember 1996 Setting up of National Securities Depository Limited, first depository in India, co-promoted by

NSENovember 1996 Best IT Usage award by Computer Society of IndiaDecember 1996 Commencement of trading/settlement in dematerialised securitiesDecember 1996 Dataquest award for Top IT UserDecember 1996 Launch of CNX Nifty JuniorFebruary 1997 Regional clearing facility goes liveNovember 1997 Best IT Usage award by Computer Society of IndiaMay 1998 Promotion of joint venture, India Index Services & Products Limited (IISL)May 1998 Launch of NSE's Web-site: www.nse.co.inJuly 1998 Launch of NSE's Certification Programme in Financial MarketAugust 1998 CYBER CORPORATE OF THE YEAR 1998 awardFebruary 1999 Launch of Automated Lending and Borrowing MechanismApril 1999 CHIP Web Award by CHIP magazineOctober 1999 Setting up of NSE.ITJanuary 2000 Launch of NSE Research InitiativeFebruary 2000 Commencement of Internet TradingJune 2000 Commencement of Derivatives Trading (Index Futures)September 2000 Launch of 'Zero Coupon Yield Curve'November 2000 Launch of Broker Plaza by Dotex International, a joint venture between NSE.IT Ltd. and i-flex

Solutions Ltd.December 2000 Commencement of WAP trading

June 2001 Commencement of trading in Index OptionsJuly 2001 Commencement of trading in Options on Individual SecuritiesNovember 2001 Commencement of trading in Futures on Individual SecuritiesDecember 2001 Launch of NSE VaR for Government SecuritiesJanuary 2002 Launch of Exchange Traded Funds (ETFs)May 2002 NSE wins the Wharton-Infosys Business Transformation Award in the Organization-wide

Transformation categoryOctober 2002 Launch of NSE Government Securities IndexJanuary 2003 Commencement of trading in Retail Debt MarketJune 2003 Launch of Interest Rate FuturesAugust 2003 Launch of Futures & options in CNXIT Index


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June 2004 Launch of STP InteroperabilityAugust 2004 Launch of NSE's electronic interface for listed companiesJune 2005 Launch of Futures & options in BANK Nifty IndexNovember 2006 NSE awarded 'Derivative Exchange of the Year', by Asia Risk magazine

As we can see that the stock exchange is now seen increasingly for what it really is, namelyan essential financial infrastructure for any economy. It is this view of the exchange asinfrastructure that motivated the Indian government to encourage the establishment of theNational Stock Exchange of India at Mumbai, which in a few short years completelyrevolutionized the Indian capital market. The transparency of the price discovery processwhich results, especially in technology driven stock exchanges encourages participation ineconomic activity and enhances the efficient utilization of resources. In addition, the stockmarket is increasingly perceived as an electronic marketplace for buyers and sellers ofsecurities to transact their business, under the full view of observers.


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MARKET CLOSED as on Jan 12, 201116:00:06

hours IST

Index CurrentPts

Change

%

Change

S&P CNX NIFTY 5863.25 109.15 1.90 %

CNX NIFTY JUNIOR 11501.40 179.60 1.59 %

CNX IT 7324.05 129.55 1.80 %

BANK NIFTY 11128.15 294.60 2.72 %

INDIA VIX 21.41 -0.92 4.12 %

CNX 100 5753.35 104.45 1.85 %

S&P CNX DEFTY 4506.95 103.50 2.35 %

S&P CNX 500 4709.85 84.90 1.84 %

CNX MIDCAP 8377.40 117.35 1.42 %

NIFTY MIDCAP 50 2747.10 56.20 2.09 %

CNX INFRA 3244.90 28.05 0.87 %

CNX REALTY 341.85 12.20 3.70 %


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or create databases, directories or other derivative works from any Content unless we and/or theapplicable third party owners give you prior written permission or to the extent that you can

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Current Rates

Most active

SBIN 2669.702.18%

ICICIBANK 1069.454.55%

TATAMOTORS1218.005.18%

LT 1760.15-1.14%

SPYL 47.50 58.33%

View allNSE most active shares

BSE

NSE

Most active

Shekhawati 47.50 58.33%

SBIN 2664.752.03%

TATASTEEL 649.30 0.26%



View all BSE most active shares

BSE

NSE

Top gainers

SUZLON 53.65 12.95%

STER 183.05 7.08%



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CAIRN 341.55 3.89%

View allNifty top gainers

BSE

NSE

Top gainers

STER 183.05 6.49%



TCS 1135.503.28%

HDFC 681.35 3.13%

View all Sensex top gainers

BSE

NSE

Top losers

BAJAJ-AUTO 1286.95-1.44%

LT 1760.15-1.14%

HINDUNILVR304.90 -0.99%

TATAPOWER1360.15-0.78%

DRREDDY

1669.40-0.09%

View allNifty top losers

BSE

NSE


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Top losers

BAJAJ-AUTO 1286.70-1.52%

LT 1759.90-1.43%

HINDUNILVR305.00 -1.29%

CIPLA 345.65 -0.86%

TATAPOWER1356.60-0.86%

View all Sensex top losers

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Periodical returns (%)

Top mutual funds

Scheme name 1yr 3yr 5yr

Kotak Dynamic Asset Allocation Fund - Growth

90.12%

Baroda Pioneer Diversified Fund - Growth 85.84%6.42%

Baroda Pioneer Global Fund - Growth 80.57%9.88%

Tata SIP Fund - Series I - Growth 74.94%6.19%

JM Equity Tax Saver Fund - Series I - Growth 70.46%

NSE

52 week high

Company CurrentHigh

HINDZINCs 1417.551443.00


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LUMAXINDs386.15 400.00

SANDESHs 320.95 332.70

ViewNSE stocks at 52 week high

BSE

NSE

52 week high

Company CurrentHigh

HINDZINCs 1413.551438.00

LUMAXINDs387.80 400.00

SANDESHs 321.35 329.90

View BSE stocks at 52 week high

BSE

NSE

52 week low

Company CurrentLow

BIRLAPOWER1.15 1.10

ASHCONIUL 4.20 4.20

KMSUGAR 4.85 3.70

ViewNSE stocks at 52 week low

BSE

NSE

52 week low


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Company CurrentLow

SANRAA 0.18 0.17

SGN 0.33 0.33

TELEDATAIT0.78 0.77

View BSE stocks at 52 week low

BSE

NSE

Only buyers

SANDESH 320.9514.87%

PVP 13.30 10.37%

ORCHIDCHEM292.3510.24%

ViewNSE only buyers

BSE

NSE

Only buyers

SUPERTEX 1.23 13.89%

SANDESH 321.3513.77%

ORCHIDCHEM292.5510.17%

View BSE only buyers

BSE

NSE

Only sellers


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SPYL 47.5058.33%

ANTGRAPHIC0.40 14.29%

SUZLON 53.6512.95%

ViewNSE only sellers

BSE

NSE

Only sellers

Shekhawati 47.5058.33%

KISAN 44.3519.70%

CONFIDENCE18.2519.67%

View BSE only sellers

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BSE

NSE

Top indices

S&P CNX Defty 4506

.95 2.35%

CNX Nifty Junior11501.401.59%

NIFTY (S&P CNX)5863.25 1.90%

CNX Midcap 8377.40 1.42%


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S&P CNX 500 4709.85 1.84%

View all NSE indices

BSE

NSE

Top indices

DOL200 892.17 2.11%

DOL100 2336.692.11%

SMLCAP 9147.631.42%

BSE REALTY 2582.363.27%

BSE Power 2856.240.74%

View all BSE indices

Sector watch

DOL200 892.17 2.11%

DOL100 2336.692.11%

SMLCAP 9147.631.42%

BSE REALTY2582.363.27%

BSE Power 2856.240.74%


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