Stock exchange is a market in which securities are brought and sold and it is an essential component of a developed capital market.

Securities Contract (Regulation)Act 1956 any body of individuals , whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying ,selling or dealing in securities Dealings in india is regulated by SEBI

Set up on april1988 by a notification of ministry of finance. The establishment of the SEBI was a land mark of govt. measure to monitor and regulate capital market activities and to promote healthy development of the market The Board of members consist of: a chairman two members from ministries of central govt dealing with finance and law One from RBI Two members appointed by govt

 Protect

the interest of investors To regulate the securities market and ensure fair practices To promote efficient services by brokers, merchant bankers and other intermediaries

Regulation of stock exchange and self regulatory organizations Registration and regulation of stock brokers, sub- brokers, registrars to all issues , merchant bankers, underwriters , portfolio managers etc Registration and regulation of the working of collective investment schemes including mutual funds Prohibition of fraudulent and unfair trade practices

Prohibition of insider trading Regulating substantial acquisition of shares and take over of companies promoting investors education Promoting and regulating self- regulatory organisation To collect information and advise the govt on matters relating to stock and capital market

It is the oldest stock exchange in india It computerised its trading system introducing Bombay On Line Trading(BOLT) It has two segments capital market segment and derivative market Index is called SENSEX Governing Board consist of 9 elected directors an executive ,3 govt nominees,1 RBI nominee and 5 public nominees

To safeguard the interest of the investing public To establish and promote honest and just practices in security transactions To promote,develop and maintain a well regulated market for dealing in securities To promote industrial development in the country through efficient resource mobilisation.

Minimum issued capital of Rs.3 crores Profitability record at least 3 yrs Min capitalisation of Rs.20 crores for the last 6 months Trading for a min of 50% of the total trading days during the same 6 months on any exchange The min average volume traded per day during the last 3 completed months should be 500 shares and at least 5 trade per day

Established in 1994 It has been conceived as a model exchange with a nation wide electronic screen based scripless and floorless trading system in securities Index is called NIFTY It has two category of members Principal Trading members and Dealers

To establish nationwide trading facility for equities,hybrids and debts To facilitate equal access to investors across the country To provide fairness,efficiency and transparency to the securities trading. To enable shorter settlement cycles To meet international securities market standards

NEAT trading system Two segments-capital market wholesale debt market No trading floor Various committees Order driven system Conformation slip Statement of position Pay out day

It is regarded a blessing for the small,both existing and new,companies and for investors,particularly small investors It has no physical location,no counters,no trading ring,no stock exchange building Transactions are completed through a network of telephones/computers Only professional people are authorised to render financial services.

Ringless screen-based trading Sponsorship Transparency of transactions Liquidity through market making Listing of small and medium sized companies Technology Nation wide listing Bought out deals

Members and dealers appointed by OTCEI Settlement bank Registrar