Moneypalm Investment Moneypalm Investment Solutions Pvt. Ltd.
Solutions Pvt. Ltd. Training Session Training Session Introduction
to the Stock ExchangeIntroduction to the Stock ExchangeFunctions of
Stock ExchangeFunctions of Stock ExchangeProviding Liquidity and
Marketability to Existing Securities:Stock exchange is a arket
!lace "here !reviously issued securities
aretraded#$ariousty!esofsecuritiesaretradedhereonregular
basis#%henever required& an investor can invest his oney
through this arket into securities and can reconvert this investent
into cash# 'vailabilityofreadyarketforsaleand!urchaseofsecurities
increases their arketability and enhances liquidity#Pricing of
Securities:' stock exchange !rovides !latfor to deal in securities#
The forces ofdeandandsu!!ly"orkfreelyinthestockexchange#Inthis
"ay& !rices of securities are deterined# Safety of
Transactions:Stockexchangesareorganisedarkets#Theyfully!rotectthe
interestofinvestors#Eachstockexchangehasitso"nla"sand bye(la"s#
Each eber of stock exchange has to follo" the and
ifanyeberisfoundviolatingthe&hisebershi!is
cancelled#)ontributes to Econoic *ro"th:
Facilities!rovidedbythesharearketencouragethe!eo!leto
investtheironeyinsecurities#Inthis"ay&!eo!le+soneygets
investedinindustriesandeconoicdevelo!entbecoes !ossible#S!reading
of Equity )ult:Stockexchangeencourages!eo!letoinvestino"nershi!
securitiesbyregulatingne"issues&bettertrading!racticesand by
educating !ublic about investent#Econoic
,aroeter:'stockexchangeisareliablebaroetertoeasuretheeconoic
condition of a country#Every a-or change in country and econoy is
reflected in the !rices
ofshares#Theriseorfallintheshare!ricesindicatesthebooor recession
cycle of the econoy# Stock exchange is also kno"n as a !ulse of
econoy or econoic irror "hich reflects the econoic conditions of a
country#Providing Sco!e for
S!eculation:Toensureliquidityanddeandofsu!!lyofsecuritiesthestock
exchange !erits healthy s!eculation of
securities#,utitisadvisedStockexchangeneednotbetreatedasa!lacefor
s!eculationoragablingden#Itshouldactasa!laceforsafeand !rofitable
investent& for this& effective control on the "orking of
stock exchange is necessary#Features of Stock ExchangeFeatures of
Stock ExchangeMarketforsecurities :Stockexchangeisaarket&"here
securitiesofcor!oratebodies&governentandsei(governent bodies
are bought and sold#.egulates trade in securities : Stock exchange
does not buy or sell any securities on its o"n account# It erely
!rovides the necessary
infrastructureandfacilitiesfortradeinsecuritiestoitsebers and
brokers "ho trade in securities# It regulates the trade activities
so as to ensure free and fair
trade'llo"sdealingsonlyinlistedsecurities
:Infact&stockexchanges
aintainanofficiallistofsecuritiesthatcouldbe!urchasedand sold on
its floor# Securities "hich do not figure in the official list of
stockexchangearecalledunlistedsecurities#Suchunlisted securities
cannot be traded in the stock exchange#Transactions effected only
through ebers: 'll the transactions
insecuritiesatthestockexchangeareeffectedonlythroughits authori/ed
brokers and ebers# 0utsiders or direct investors are
notallo"edtoenterinthetradingcirclesofthestockexchange#
Investorshavetobuyorsellthesecuritiesatthestockexchange through the
authori/ed brokers
only#%orkingas!errules:,uyingandsellingtransactionsin
securitiesatthestockexchangearegovernedbytherulesand
regulationsofstockexchangeas"ellas SE,I*uidelines#1o deviation fro
the rules and guidelines is allo"ed in any case#Ty!es of
MarketTy!es of Market2# 1oral Market :0rder Traded in regular lot
Si/e For deat shares& lot si/e is 2 share3# 0dd Lot Market :
4sed for liited !hysical Market 0rder not traded in regular lot
Si/e but both !rice 5 quantity should tally "ith each other#6# S!ot
Market :7ifferent settleent !eriods de!ends on noral orders Sell 5
Purchases takes !lace on sae date#8# 'uction Market :Initiated by
exchange on behalf of ebers for settleent related reasons .easons
are shortage and bad deliveries Loss is recovered fro ebersStock
Market Tiings in IndiaStock Market Tiings in
IndiaTradingontheequitiessegenttakes!laceonalldays of the "eek
9exce!t Saturdays and Sundays and holidays declared by the exchange
in advance:The arket tiings of the 1SE and ,SE Exchanges
are:Session TimingPre-open Trading Session 09:00 - 09:15Trading
Session 09:15 - 15:30Position Transfer Session 15:30 - 15:50Closing
Session 15:50 - 16:05Option Exercise Session 16:05Stock Exchanges
around the "orld and their Stock Exchanges around the "orld and
their a-or Indicesa-or Indices4S'( 1e" ;ork Stock Exchange 91;SE
)o!osite index ( 1;':1'S7'< 91'S7'< 2== index:>a!an ?
Tokyo Stock Exchange 9T0PI@ index and 1ikkei 33A index:4B ? London
Stock Exchange 9oldest: 9FTSE 2== index& FTSE 3A= index:)hina ?
Shanghai Stock Exchange 9SSE )o!osite and SSE A=: Cong Bong Stock
Exchange 9Cang Sang index:)anada ? Toronto Stock Exchange 9S5PDTS@
)o!osite:'ustralia ? 'ustralian Securities Exchange 9S5PD'S@
A=& S5PD'S@ 2==:Euro!e ? Euronext 9Euronext 2==:India ? 1SE
9S5P )1@ 1ifty: and ,SE 9S5P ,SE Sensex:)o!onents of Trading in
Stock Exchange)o!onents of Trading in Stock Exchange2# )ash3#
7erivativesa: Futuresb: 0!tions EE )all 0!tions and Put
0!tions,0M,'; ST0)B E@)C'1*E,0M,'; ST0)B E@)C'1*E It is oldest and
first stock exchange of India established in the year 2FGA# First
it "as started under baniyan tree o!!osite to to"n hall of ,obay
over 33 stock brokers# ,SE :,obay Stock Exchange,SE :,obay Stock
Exchange Established in 2FGA& ,SE Ltd# 9forerly kno"n as ,obay
Stock ExchangeLtd#andestablishedasHThe1ativeShareandStock ,rokersI
'ssociationH: is one of 'sia+s fastest stock exchanges& "ith
as!eedof3==icrosecondsandoneofIndia+sleadingexchange
grou!s#,SEisacor!orati/edanddeutualisedentity&"itha
broadshareholder(basethatincludest"oleadingglobal exchanges&
7eutsche ,ourse and Singa!ore Exchange& as strategic
!artners#,SE!rovidesanefficientandtrans!arentarketfor tradingin
equity& debt instruents& derivatives& and utual
funds#MorethanA===co!aniesarelistedon,SE&akingitthe "orldIs to!
exchange in ters of listed
ebers#,SE+s!o!ularequityindex(theS5P,SESE1SE@9Forerly
SE1SE@:(isIndiaIsost"idelytrackedstockarket benchark index#Cistory
of ,SECistory of ,SE The ,obay Stock Exchange is the oldest
exchange in 'sia# It traces its history
to2FAA&"henfour*u-aratiandoneParsistockbroker"ouldgatherunder
banyantreesinfrontofMubaiIsTo"nCall#Thelocationoftheseeetings
changed any ties as the nuber of brokers constantly increased# The
grou! eventuallyovedto7alalStreetin2FG8andin2FGAbecaeanofficial
organi/ation kno"n as HThe 1ative Share 5 Stock ,rokers
'ssociationH# 0n 62 'ugust 2JAG& the ,SE becae the first stock
exchange to be recogni/ed bythe
Indian*overnentundertheSecurities)ontracts.egulation'ct#In
2JF=& the exchange oved to thePhiro/eat7alal Street&Fort
'rea# In 2JFK& it develo!edthe ,SESensex
index&givingthe,SEaeanstoeasureoverall !erforance of the
exchange#The,obayStockExchanges"itchedtoanelectronictradingsyste
develo!edby)M)Ltdin2JJA#Ittooktheexchangeonlyfiftydaystoake this
transition# This autoated&screen based trading !latfor called
,SE 0n(line trading 9,0LT: had a ca!acity of F illion orders !er
day#The,SEhasalsointroducedthe"orldIsfirstcentrali/edexchange(based
internettradingsyste&
,SE%E,x#co#intoenableinvestorsany"hereinthe "orld to trade on the
,SE !latfor#)o!anies that constitute Sensex 9,SE Index:)o!anies
that constitute Sensex 9,SE Index:')) Ltd#,harat Ceavy Electricals
Ltd#,harti 'irtel Ltd#)i!la Ltd#7LF Ltd#C7F) ,ank Ltd#Cero Conda
Motors Ltd#Cindalco Industries Ltd#Cindustan 4nilever Ltd#Cousing
7evelo!ent Finance )or!oration Ltd#I T ) Ltd#I)I)I ,ank Ltd#Infosys
Technologies Ltd#>ai!rakash 'ssociates Ltd#%i!ro Ltd#>indal
Steel 5 Po"er Ltd#Larsen 5 Toubro Ltd#Mahindra 5 Mahindra
Ltd#Maruti Su/uki India Ltd#1TP) Ltd#0il 5 1atural *as )or!oration
Ltd#.eliance )ounications Ltd#1ae.eliance Industries Ltd#.eliance
Infrastructure Ltd#State ,ank of IndiaTata )onsultancy Services
Ltd#Tata Motors Ltd#Tata Po"er )o# Ltd#Tata Steel Ltd#1'TI01'L
ST0)B1'TI01'L ST0)B E@)C'1*E 0F I17I'91SEE@)C'1*E 0F I17I'91SE 0.
1SE: 0. 1SE:The NSE of India is the leading stock exchange of
India, coveing !"# cities and to$ns in thecounty. It $as
esta%lished in&''( as a T)* company. It $as esta%lished %y
+& leading financial institutions and %anks like the
I,-I,I.I.I,I/.I,LI.,S-I,etc. Features of 1SE Features of 1SE1ation
"ide coverage i#e#& investors fro all over country 1ation "ide
coverage i#e#& investors fro all over country.ingless i#e#&
it has no ring or trading floor .ingless i#e#& it has no ring
or trading floorScreen(based trading i#e#& trading in this
stock exchange is doneelectronically# Screen(based trading
i#e#& trading in this stock exchange is
doneelectronically#Trans!arency&i#e#&the use of co!uter
screen for trading akes the dealings in
securitiesTrans!arency&i#e#&the use of co!uter screen for
trading akes the dealings in securities trans!arent#
trans!arent#Professionali/ation in trading& i#e#& it brings
!rofessionalis in its functions Professionali/ation in trading&
i#e#& it brings !rofessionalis in its functions1SE 91ational
Stock Exchange:1SE 91ational Stock Exchange: The1ational Stock
Exchange of India Ltd#91SE:is a stock exchange located in the
financial ca!ital ofIndia&Mubai #
1ationalStockExchange91SE:"asestablishedintheid 2JJ=s as a
deutualised electronic exchange# 1SE !rovides a
odern&fullyautoatedscreen(basedtradingsyste&"ith
overt"olakhtradingterinals&through"hich investorsin every nook
and corner of India can trade#1SEandthe
,SEarethet"oostsignificantstock exchanges in India& and bet"een
the are res!onsible for the vast a-ority of share transactions#
1SEIs a-or index&the S5P )1@ 1ifty&isused extensively
byinvestorsinIndiaandaroundthe"orldtotakeex!osure to the Indian
equities arket#Cistory of 1SECistory of
1SE1SE"asstartedbyaclutchofleadingIndianfinancial
institutionsatthebehestofthe*overnentofIndiatobring
trans!arencytotheIndianarket&andhasadiversified shareholding
co!rising doestic and global
investors#ItisIndiaIslargestexchange&globallyincasharkettrades&in
currencytradingandindexo!tions#'son>une3=26&1SEhas 2KG6 $S'T
terinals and 3G3=leaselines &s!readover orethan 3=== cities
across India#The exchange "as incor!orated in 2JJ3 as a tax(!aying
co!any and"asrecogni/edasastockexchangein2JJ6"henMr# P#$ 1arsiha.ao
"asthePrieMinisterofIndiaand7r#Manohan Singh "as the Finance
Minister#)urrently& 1SE has the follo"ing a-or )urrently&
1SE has the follo"ing a-or segents of the ca!ital arket:segents of
the ca!ital arket:E0uity /utues and 1ptions2etail ,e%t
Maket3holesale ,e%t Maket.uency futuesM4T4)L /4N,ST1.5S LEN,IN6 7
-12213IN6)o!anies that )onstitute 1ifty 91SE Index:)o!anies that
)onstitute 1ifty 91SE Index:')) Ltd#'bu-a )eents Ltd#'sian Paints
Ltd#'xis ,ank Ltd#,a-a- 'uto Ltd#,ank of ,aroda,harat Ceavy
Electricals Ltd#,harat Petroleu )or!oration Ltd#,harti 'irtel
Ltd#)airn India Ltd#)i!la Ltd#)oal India Ltd#*'IL 9India: Ltd#*rasi
Industries Ltd#C)L Technologies Ltd#C7F) ,ank Ltd#Cero Conda Motors
Ltd#Cindalco Industries Ltd#Cindustan 4nilever Ltd#C7F) Ltd#I T )
Ltd#I)I)I ,ank Ltd#IndusInd ,ank Ltd#Infosys Technologies
Ltd##.Botak Mahindra ,ank Ltd#Larsen 5 Toubro Ltd#Lu!in
Ltd#Mahindra 5 Mahindra Ltd#Maruti Su/uki India Ltd#1M7) Ltd#1TP)
Ltd#0il 5 1atural *as )or!oration Ltd#Po"er *rid )or!oration of
India Ltd#Pun-ab 1ational ,ank.eliance Industries Ltd#7r# .eddyIs
Laboratories Ltd#7LF LtdSesa Sterlite Ltd#State ,ank of IndiaSun
Pharaceutical Industries Ltd#Tata )onsultancy Services Ltd#Tata
Motors Ltd#Tata Po"er )o# Ltd#Tata Steel Ltd#Tech Mahindra
Ltd#4ltraTech )eent Ltd#4nited S!irits Ltd#%i!ro Ltd#>indal
Steel 5 Po"er LtdInfrastructure 7evelo!ent Finance )o#Ltd#M)@ ?
Multi )oodities ExchangeM)@ ? Multi )oodities ExchangeThe Multi
)oodity Exchange of India Liited 9M)@:& India+s first
listedexchange&isastate(of(the(art&coodityfuturesexchangethat
facilitatesonlinetrading&andclearingandsettleentofcoodity
futures transactions& thereby !roviding a !latfor for risk
anageent# The Exchange& "hich started o!erations in 1oveber
3==6& o!erates "ithin the regulatory frae"ork of the For"ard
)ontracts 9.egulation: 'ct& 2JA3#M)@ offers trading in varied
coodity futures contracts across segents including bullion&
ferrous and non(ferrous etals& energy and agricultural
coodities# The Exchange focuses on !roviding coodity value chain
!artici!ants "ith neutral& secure and trans!arent trade
echaniss& and forulating
quality!araetersandtraderegulations&inconfority"iththe
regulatory
frae"ork#M)@isIndia+sleadingcoodityfuturesexchange"ithaarket share
of about F2L#)oodities traded at M)@)oodities traded at M)@,ullions
9Precious Metals: ( Platinu& *old and SilverMetals ? 'luiniu
& )o!!er& Iron& Lead& 1ickel& MincEnergy ?
1atural *as & )rude oilFiber ? Ba!as & )ottonPlantations ?
.ubber0il Seeds ? Soya bean& )rude !al oil)ereals ? ,arley&
%heatS!ices ? )ardao & )orianderPulses ? )hanaSE)4.ITIES '17
E@)C'1*ESE)4.ITIES '17 E@)C'1*E ,0'.7 0F I17I'9SE,I: ,0'.7 0F
I17I'9SE,I:The SE-I $as constituted on &+th )pil,&'88 unde
a esolution of the 6ovenment of India. 1n !&st
9anuay,&''+,it $as made a statutory body %y the Secuities and
Exchange %oad of India )ct,&''+.The .ompanies :)mendment;
)ct,+### has given cetain po$es to SE-I as egads the issues and
tansfe of secuities and non
