Kashif Khan Stock Exchange Ppt

8/13/2019 Kashif Khan Stock Exchange Ppt

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STOCK EXCHANGE-STRUCTURE AND

TYPES


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Introduction

A stock exchangeis a form ofexchangewhich provides services forstock brokersand tradersto trade

stocks, bonds, and other securities. Stock exchanges also provide facilities

for issue and redemption of securities

and other financial instruments, andcapital events including the payment ofincome and dividends
http://en.wikipedia.org/wiki/Exchange_(organized_market)http://en.wikipedia.org/wiki/Brokerage_firmhttp://en.wikipedia.org/wiki/Trader_(finance)http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Dividendhttp://en.wikipedia.org/wiki/Dividendhttp://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Trader_(finance)http://en.wikipedia.org/wiki/Brokerage_firmhttp://en.wikipedia.org/wiki/Exchange_(organized_market)


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Securities traded

Securities traded on a stock exchangeinclude-

stockissued by companies

unit trusts

derivatives,

pooled investment products and bonds.
http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Unit_trusthttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Unit_trusthttp://en.wikipedia.org/wiki/Stock


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Organizational Structure of

Bombay Stock Exchange

Bombay Stock Exchange (BSE) is theoldest stock exchange in the countryand in Asia. It was established in the

year 1875 and became the first stockexchange to be recognized by theGovernment of India in 1956 under the

Securities Contracts (Regulation) Act,1956.


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Cont.

The vision of the Bombay Stock Exchange is to emerge as

the premier Indian stock exchange by establishing globalbenchmarks. The day-to-day operation is managed by theBoard of Director. The other members involved are theprofessionals, representatives of Trading Members and theManaging Director.

Its online trading system known as BOLT has been startedfunctioning nationwide from 1997. The functions of theExchange are ISO 9001:2000 certified. The Bombay StockExchange has an international conference hall which

conducts meetings, conferences and other important events.


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NATIONAL STOCK EXCHANGEOF INDIA

The National Stock Exchange(NSE) is stockexchangelocated in Mumbai, India. National StockExchange (NSE) was established in the mid 1990sas a demutualised electronic exchange.

NSE provides a modern, fully automated screen-based trading system, with over two lakh tradingterminals, through which investorsin every nookand corner of Indiacan trade.

NSE has played a critical role in reforming theIndian securities market and in bringingunparalleled transparency, efficiency and marketintegrity.
http://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Investorshttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Investorshttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Stock_exchange


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Market capitalization

NSE has a market capitalization of morethan US$0.989 trillion and 1,635companies listed as of July 2013.

NSE's flagship index, the CNX NIFTY50, is used extensively by investors inIndia and around the world to take

exposure to the Indian equities market.


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Markets

Currently, NSE has the following majorsegments of the capital market:

Equities-

Equities Indices

Mutual Funds

Exchange Traded Funds

Initial Public Offerings

Security Lending and Borrowing Scheme


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Cont

Derivatives-

Equity Derivatives (including GlobalIndices like S&P 500, Dow Jones and

FTSE )

Currency Derivatives

Interest Rate Futures

Debt-

Corporate Bonds


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Equity Derivatives

The National Stock Exchange of India Limited(NSE) commenced trading in derivatives with thelaunch of index futures on 12th June 2000.

The futures and options segment of NSE hasmade a mark for itself globally.

In the Futures and Options segment, trading inCNX Nifty Index, CNX IT index, Bank Nifty Index,Nifty Midcap 50 index and single stock futures are

available.


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turnover

The average daily turnover in the F&O Segment ofthe Exchange on 28th February 2013 stood at Rs4,02,090.64 crore.

On 29 August 2011, National Stock Exchangelaunched derivative contracts on the worlds most

followed equity indices, the S&P 500 and the DowJones Industrial Average.


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Currency Derivatives

In August 2008, currency derivatives wereintroduced in India with the launch of CurrencyFutures in USD INR by NSE. It also addedcurrency futures in Euros, Pounds and Yen. The

average daily turnover in the F&O Segment of theExchange on 20th June 2013 stood at Rs41,926.16 crore in futures and Rs 27,397.70 crorein options, respectively.


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Trading schedule

Trading on the equities segment takes place on all days ofthe week (except Saturdays and Sundays and holidaysdeclared by the Exchange in advance). The market timingsof the equities segment are:

(1) Pre-open session

Order entry & modification Open: 09:00 hrs

Order entry & modification Close: 09:08 hrs*

with random closure in last one minute. Pre-open ordermatching starts immediately after close of pre-open order

entry. (2) Regular trading session

Normal/Retail Debt/Limited Physical Market Open: 09:15 hrs

Normal/Retail Debt/Limited Physical Market Close: 15:30 hrs


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Technology

NSEs trading system, is a state of-the-artapplication. It has an up time record of 99.99%and processes more than 450 million messagesevery day with sub millisecond response time.

The trading system is deployed on a highlyscalable architecture where matching engines canbe added based on business demand. The currentdeployed capacity allows the trading system to

handle more than 100,000 messages per second


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Securities and Exchange

Board of India

The Securities and ExchangeBoard of India(frequentlyabbreviated SEBI) is the regulatorfor

the securitiesmarket in India. It wasestablished in the year 1988 andgiven statutory powers on 12 April

1992 through the SEBI Act, 1992.
http://en.wikipedia.org/wiki/Regulatory_agencyhttp://en.wikipedia.org/wiki/Securitieshttp://en.wikipedia.org/wiki/Securities_and_Exchange_Board_of_India_Act,_1992http://en.wikipedia.org/wiki/Securities_and_Exchange_Board_of_India_Act,_1992http://en.wikipedia.org/wiki/Securitieshttp://en.wikipedia.org/wiki/Regulatory_agency


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FUNCTIONS &RESPONSIBILITIES to protect the interests of investors in securities.

to promote the development.

to regulate the securities market and for matters

connected therewith or incidental thereto". SEBI has three functions rolled into one body:

quasi-legislative, quasi-judicialand quasi-executive. It drafts regulations in its legislativecapacity, it conducts investigation andenforcement action in its executive function and itpasses rulings and orders in its judicial capacity.
http://en.wikipedia.org/wiki/Quasi-legislativehttp://en.wikipedia.org/wiki/Quasi-judicialhttp://en.wikipedia.org/wiki/Quasi-judicialhttp://en.wikipedia.org/wiki/Quasi-judicialhttp://en.wikipedia.org/wiki/Quasi-judicialhttp://en.wikipedia.org/wiki/Quasi-legislativehttp://en.wikipedia.org/wiki/Quasi-legislativehttp://en.wikipedia.org/wiki/Quasi-legislative


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Powers

For the discharge of its functions efficiently, SEBI hasbeen vested with the following powers:

to approve bylaws of stock exchanges. SEBI to require the stock exchange to amend their

bylaws. inspect the books of accounts and call for periodical

returns from recognized stock exchanges. inspect the books of accounts of a financial

intermediaries. compel certain companies to list their shares in one

or more stock exchanges. registration brokers.


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Clearing house (finance)

A clearing houseis a financial institutionthat provides clearingand settlementservices for financial and commodities

derivatives and securities transactions.These transactions may be executed on afutures exchangeor securities exchange,as well as off-exchange in the over-the-

counter(OTC) market.
http://en.wikipedia.org/wiki/Clearing_(finance)http://en.wikipedia.org/wiki/Settlement_(finance)http://en.wikipedia.org/wiki/Futures_exchangehttp://en.wikipedia.org/wiki/Securities_exchangehttp://en.wikipedia.org/wiki/Over-the-counter_(finance)http://en.wikipedia.org/wiki/Over-the-counter_(finance)http://en.wikipedia.org/wiki/Over-the-counter_(finance)http://en.wikipedia.org/wiki/Over-the-counter_(finance)http://en.wikipedia.org/wiki/Over-the-counter_(finance)http://en.wikipedia.org/wiki/Over-the-counter_(finance)http://en.wikipedia.org/wiki/Over-the-counter_(finance)http://en.wikipedia.org/wiki/Securities_exchangehttp://en.wikipedia.org/wiki/Futures_exchangehttp://en.wikipedia.org/wiki/Settlement_(finance)http://en.wikipedia.org/wiki/Clearing_(finance)


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Responsibilities

The central counterparty is responsible for:

Market monitoring

Margin monitoring

Margin requirements Margin checks

Margin calls

Mark to marketcalculations

Risk checks

clearing

Settlement.
http://en.wikipedia.org/wiki/Margin_callhttp://en.wikipedia.org/wiki/Mark_to_markethttp://en.wikipedia.org/wiki/Clearing_(finance)http://en.wikipedia.org/wiki/Settlement_(finance)http://en.wikipedia.org/wiki/Settlement_(finance)http://en.wikipedia.org/wiki/Clearing_(finance)http://en.wikipedia.org/wiki/Mark_to_markethttp://en.wikipedia.org/wiki/Margin_call


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Kashif Khan Stock Exchange Ppt