Bombay Stock Exchange Final Ppt

GROUP MEMBERS AJINKYA

LAVATE

CHANKY

JAIN

NEERAJ

 JAMES

INGLEKAR

FERNANDES

PRITAM

GAVLI

BOMBAY STOCK  EXCHANGE

•BOMBAY

STOCK EXCHANGE IS THE OLDEST STOCK EXCHANGE IN ASIA WITH RICH HERIT HERITAGE AGE •IT

SPANS OVER THREE CENTURIES WITH 133 YEARS OF EXISTENCE •BSE

WAS W AS EXT EXTABLISHE ABLISHED D AS “THE NATIVE SHARE AND STOCK  BROKERS ASSOCIATION” IN 1875

FEATURES

SALIENT FEATURES PERMANENT

EARLIER

 T+1

RECOGNITION

OPEN OUTCRY SYETEM NOW BOLTS

= TRANSACTION + 1 DAY

EARLIER

AOP NOW LTD COMPANY (CORPORAISATION AND DEMUTUALISATION)

STRATEGIC PARTNERS

SALIENT FEATURES NATIONWIDE

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 SENSEX SENSEX

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 SENSEX FREE

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 SENSEX ACC

HDFC BANK ITC

ONGC

SUN PHARMA

AIRTEL

HERO HONDA JAIPRAKASH AS

RELIANCE

TATA MOTORS

BHEL

HINDALCO

L&T

REL COMMU

TATA POWER

D LF

H UL

MAH N MAH

REL INFRA

TATA STEEL

GRASIM

ICICI BANK

MARUTI SUZ SBI

TCS

H D FC

INFOSYS

NTPC

WIPRO

STRELITE

SIGNIFICANCE Barometer

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.

FEATURES NSE

has a market capitalization of around a round 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]

FEATURES As

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.

OBJECTIVES Establishing

nationwide trading facility Ensuring equal access to investors Providing 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

Surcon

Close

Markets Equity

Futures

and Options

Wholesale

Currency

Debt Market

futures

ETF’S

Interest

rate futures

What is the NSE CNX S&P Nifty 50?

FEATURES NIFTY

50 IS A VALUE WEIGHTED INDEX COMPOSED OF 50 STOCKS REPRESENTING REPRESENTING VARIOUS SECTORS  THESE COMPANIES ACCOUNTS ACCOUNTS FOR 77% of all the trading volume on the NSE and 60% of the total market capitalization.  The index started with a base bas e 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 AB B

Dr. Hero Reddy's Honda

ACC

GAIL India

Hindalco MTNL

Ambuja GlaxoSmi HUL Cements thKline Pharma BPCL

Grasim

Bharti Airtel

HCL  Techno

BHEL

HDFC

Larsen & Power Toubro Grid

IPCL

PNB

Satyam TCS

Siemens

 Tata Motors

Mahindra Ranbaxy State  Tata & Labs Bank of  Power Mahindra India MARUTI

Reliance SAIL Comm

Tata Steel

ICICI Bank National

Reliance Sterlite ENERGY

VSNL

Infosys

Reliance Sun Ind. Pharma

Wipro

Aluminium Co.

NTPC

OTHER INDICES CNX

Nifty Junior

S&P

CNX 500

HARSHAD MEHTA

EARLY LIFE Born

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 SCAM Harshad

mehta was making waves in stock in early 90’s

Heavy

Price

Buying of ACC shares.

rose upto Rs 10000/-

Replacement

cost theory.

SCAM EXPOSED IN

1991, HE BECOME THE DARLING OF BUSINESS MEDIA AND GAINED THE NICKNAME “BIG “ BIG BULL” BULL” ENDLESS SUPPLY OF MONEY ON 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’S FAKE

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

EFFECTS MANY

BANKS WERE LEFT HOLDING BR’S OF NO VALUE.

BANKING

 THE

SECTOR DIPPED.

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 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….

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

MESSAGE FOR INVESTORS

Do’s and Don'ts relating to.. ISSUE OF SECURITIES INVESTING IN DERIVATIVES DEALING WITH BROKERS & SUB - BROKERS INVESTING IN MUTUAL FUNDS BUYBACK OF SECURITIES OPEN OFFER UNDER TAKEOVER

REGULATIONS DEALING IN SECURITIES

Chairman : Shri C. B. Bhave, SEBI

scam

KETAN PAREKH A

Chartered Accountant by profession

Used

to handle his family business

•

NH securities

•

Known as Bombay bull

•

Connections with film stars ,politicians , international entrepreneurs

NETWORK  Built

a network of companies mainly in mumbai

Concentrated

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

Invested

Shares

in 10 companies companies which which is known as as k-10

held through KPs co.  Triumph international

FUNDING Simple

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 nation  The

 The

sensex crashed crashed by 176 points on march 2001. total scam scam was nearly 2000 billion

Which

Many

Ketan

set back the country's economy by a year

small investors lost their savings of life Parekh was released on bail in May 2001

References www.bseindia.com www.moneycontrol.com http://en.wikipedia.org/wiki/BSE_Sensex www.nseindia.com http://en.wikipedia.org/wiki/BSE_Sensex http://en.wikipedia.org/wiki/Harshad_Mehta www.sebi.gov.in http://en.wikipedia.org/wiki/Ketan_Parekh

REFERENCES NCFM

BEGINNERS MODULE

NCFM

CAPITAL MARKETS MODULE

BUSINESS

ECONOMICS TYBCOM