Stock Exchange

Stock Exchange

» The stock exchange is the market for buying and selling of stocks, shares, securities, bonds and debentures etc. It increases the market ability of existing securities by providing simple method for public and others to buy and sell securities.
» The first organised stock exchange in India was started in Bombay (now Mumbai) when the "Native Share Brokers' Association" known as the Bombay Stock Exchange (BSE) was formed by the brokers in Bombay. BSE was Asia's oldest stock exchange.
» In 1894, the Ahmedabad stock Exchange was started to facilitate dealings in the shares of textile mills there.
» The Calcutta Stock Exchange was started in 1908 to provide a market for shares of plantations and jute mills.
» The number of stock exchanges rose from 7 in 1939 to 21 in 1945.
» Under the securities contract (Regulation) Act of 1956, the Government of India has so far recognised 23 stock exchanges. Bombay is the premier exchange in the country.
» With the setting up of National Stock Exchange, all regional stock exchanges have lost relevance.
» The BSE transformed itself into a corporate entity from being a brokers association, from the middle of August, 2005.
» As a public limited company, BSE (Bombay Stock Exchange) is obliged to dilute stock brokers stake to 49%.
» To prevent excessive speculation and volatility in the stock market SEBI has introduced rolling settlements from July 2, 2001, under which settlement has to be made every day.

Some Important Share Price Index of India

Bombay Stock Exchange (BSE)

» Established in 1875, BSE Limited, formerly known as Bombay Stock Exchange Limited is Asia’s first stock exchange and one of India’s leading exchange groups. Over the past 137 years, BSE has facilitated the growth of the Indian corporate sector by providing it an efficient capital raising platform.
» BSE’s popular equity index: This sensex is India’s most widely tracked stock market benchmark index. It is traded internationally on the EUREX as well as leading exchanges of the BRCS nations (Brazil, Russia, China, and South Africa).

SENSEX

» The S&P BSE SENSEX (S&P Bombay Stock Exchange Sensitive Index), is also-called the BSE 30 or simply the SENSEX.
» It is a free-float market-weighted stock market index of 3 0 well-established and financially sound companies listed on Bombay Stock Exchange (BSE).
» The 30 component companies, which are some of the largest and most actively traded stocks, are representative of various industrial sectors of the Indian economy.
» Published since 1 January, 1986, the S&P BSE SENSEX is regarded as the pulse of the domestic stock markets in India.
» The base value of the S&P BSE SENSEX is taken as 100 on 1 April, 1979, and its base year as 1978-79.

BSE 200

This represents 200 shares of Mumbai Stock Exchange. Its base year is 1989-90.

DOLLEX

Index of 200 BSE Dollar Value Index is called DOLLEX. Its base year is 1989-90.

NSE-50

From 28th July, 1998, its name is S and P CNX Nifty. National Stock Exchange has launched a new share Price Index, NSE-50 in place of NSE-100 in April 1996. NSE-50 includes 50 companies shares. This stock exchange was founded on Ferwani Committee's recommendation in 1994.

CRISIL

» CRISIL (formerly Credit Rating Information Services of India Limited) is India’s first credit rating agency, which was incorporated on 29 January, 1987, promoted by the erstwhile ICICI Ltd, along with UTI and other financial institutions.
» CRISIL’s majority shareholder is Standard & Poor’s, a division of McGraw Hill Financial and provider of financial market intelligence.
» As of December 2013, the company has a revenue of Rs. 11,106 million (US$ 170 million), net income of Rs. 2978.2 million (US$44 million), and operating income of? 3199.5 million (US$48 million).

CRISIL 500

It is the new share Price Index introduced by Credit Rating Agency the "Credit Rating Information Services of India Limited" (CRISIL) on January 18, 1996.
Apart from CRISIL, there is another credit rating agency called "Investment Information and Credit Rating Agency of India Limited (ICRA)." It rates debt instruments of both financial and manufacturing companies.
The National Stock Exchange (NSE) has launched a new version of its online trading software called 'National Exchange for Automatic Trading' (NEAT).

National Stock Exchange (NSE)

» NSE was promoted by leading financial institutions at the behest of the Government of India and was incorporated in November, 1992, as a tax- paying company unlike other stock exchanges in the country.
» On the basis of the recommendations of high-powered Pherwani committee, the National Stock Exchange was recognized in November, 1, in April 1993, it was recognized as a stock exchange and commenced operations in 1994.
» In October 1995, NSE became the largest stock exchange in the country.