CHAPTER 1: INTRODUCTION TO STOCK EXCHANGES

A stock exchange is a form of exchange which provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and dividends. Securities traded on a stock exchange include shares issued by companies, unit trusts, derivatives, pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it must be listed there. Usually, there is a central location at least for record keeping, but trade is increasingly less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of increased speed and reduced cost of transactions. Trade on an exchange is by members only. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market. Supply and demand in stock markets are driven by various factors that, as in all free markets, affect the price of stocks (see stock valuation). There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange or over-the-counter. This is the usual
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way that derivatives and bonds are traded. Increasingly, stock exchanges are part of a global market for securities. Functions of Stock Exchange: We discuss about major functions of stock exchange under these headings: Providing a ready market: The organization of stock exchange provides a ready market to speculators and investors in industrial enterprises. It thus, enables the public to buy and sell securities already in issue. Providing quoting market prices: It makes possible the determination of supply and demand on price. The very sensitive pricing mechanism and the constant quoting of market price allows investors to always be aware of values. This enables the production of various indexes which indicate trends etc. Providing facilities for working: It provides opportunities to Jobbers and other members to perform their activities with all their resources in the stock exchange. Safeguarding activities for investors: The stock exchange renders safeguarding activities for investors which enables them to make a fair judgment of securities. Therefore directors have to disclose all material facts to their respective shareholders. Thus innocent investors may be safeguard from the clever brokers.
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 Operating a compensation fund: It also operate a compensation fund which is always available to investors suffering loss due due the speculating dealings in the stock exchange. Creating the discipline: Its members controlled under rigid set of rules designed to protect the general public and its members. Thus this tendency creates the discipline among its members in social life also. Checking functions: New securities checked before being approved and admitted to listing. Thus stock exchange exercises rigid control over the activities of its members. Adjustment of equilibrium: The investors in the stock exchange promote the adjustment of equilibrium of demand and supply of a particular stock and thus prevent the tendency of fluctuation in the prices of shares. Maintenance of liquidity: The bank and insurance companies purchase large number of securities from the stock exchange. These securities are marketable and can be turned into cash at any time. Therefore banks prefer to keep securities instead of cash in their reserve . This it facilities the banking system to maintain liquidity by procuring the marketable securities. Promotion of the habit of saving: Stock exchange provide a place for saving to general public. Thus it creates the habit of thrift and investment among the public. This habit leads to investment of funds
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incorporate or government securities. The funds placed at the disposal of companies are used by them for productive purposes. Refining and advancing the industry: Stock exchange advances the trade , commerce and industry in the country. it provides opportunity to capital to flow into the most productive channels. Thus the flow of capital from unproductive field to productive field helps to refine the large scale enterprises. Promotion of capital formation: It plays an important part in capital formation in the country. its publicity regarding various industrial securities makes even disinterested people feel interested in investment. Increasing Govt. Funds: The govt. can undertake projects of national importance and social value by raising funds through sale of its securities on stock exchange.

CHAPTER 2: NATIONAL STOCK EXCHANGE

The National Stock Exchange (NSE) is stock exchange located in Mumbai, India. It is the 11th largest stock exchange in the world by market capitalisation and largest in India by daily turnover and number of trades, for both equities and derivative trading. NSE has a market capitalisation of more than US$1 trillion ( 67,637.81 billion) and 1,665 companies listed as of December 2012.Though a number of other exchanges exist, NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India and between them are responsible for the vast majority of share transactions. The NSE's key index is the S&P CNX Nifty, now known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalisation. 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.There are at least 2 foreign investors NYSE Euronext and Goldman Sachs who have taken a stake in the NSE. As of 2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India. In 2011, NSE was the third largest stock exchange in the world in terms of the number of contracts (1221 million) traded in equity derivatives. It is the second fastest growing stock exchange in the world with a recorded growth of 16.6%. The National Stock Exchange (NSE) is India's leading stock exchange covering various cities and towns across the country. NSE was set up by leading institutions to provide a modern, fully automated screen-based
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trading system with national reach. The Exchange has brought about unparalleled transparency, speed & efficiency, safety and market integrity. It has set up facilities that serve as a model for the securities industry in terms of systems, practices and procedures. NSE has played a catalytic role in reforming the Indian securities market in terms of microstructure, market practices and trading volumes. The market today uses state-of-art information technology to provide an efficient and transparent trading, clearing and settlement mechanism, and has witnessed several innovations in products & services viz. demutualisation of stock exchange governance, screen based trading, compression of settlement cycles, dematerialisation and electronic transfer of securities, securities lending and borrowing,

professionalisation of trading members, fine-tuned risk management systems, emergence of clearing corporations to assume counterparty risks, market of debt and derivative instruments and intensive use of information technology. Origins The National Stock Exchange of Independent India was set up by Government of India on the recommendation of Pherwani Committee in 1991. Promoted by leading financial institutions essentially led by IDBI at the behest of the Government of India, it was incorporated in November 1992 as a tax-paying company. In April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital market (Equities) segment of the NSE commenced operations in November
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1994, while operations in the Derivatives segment commenced in June 2000.

Markets Currently, NSE has the following major segments of the capital market: Equities Equities Indices Mutual Funds Exchange Traded Funds Initial Public Offerings Security Lending and Borrowing Scheme Derivatives Equity Derivatives (including Global Indices like S&P 500, Dow Jones and FTSE ) Currency Derivatives Interest Rate Futures Debt New Debt Segment Retail Debt Market Wholesale Debt Market Corporate Bonds
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Equity Derivatives The National Stock Exchange of India Limited (NSE) commenced trading in derivatives with the launch of index futures on 12 June 2000. The futures and options segment of NSE has made a mark for itself globally. In the Futures and Options segment, trading in S&P CNX Nifty Index, CNX IT index, Bank Nifty Index, Nifty Midcap 50 index and single stocks are available. Trading in Mini Nifty Futures & Options and Long term Options on S&P CNX Nifty are also available. The average daily turnover in the F&O Segment of the Exchange during 2009-10 was ` 72,392 crore (US $ 16,097 million) On 29 August 2011, National Stock exchange launched derivative contracts on the worlds most followed equity indices, the S&P 500 and the Dow Jones Industrial Average. This was the first time that derivative contracts on global indices are available in India. This is the also the first time in the world that futures contracts on the S&P 500 index were introduced and listed on an exchange outside of their home country, USA. The new contracts include futures on both the DJIA and the S&P 500, and options on the S&P 500. The first day volumes at the close of trading on 29 August 2011 at 15:30, on the 2 indices in futures and options contracts was nearly Rs 122 crores (1220 million). On 3 May 2012, The National Stock exchange launched derivative contracts (futures and options) on FTSE 100, the widely tracked index of the UK equity stock market. This was the first of its kind for an index of the UK equity stock market to be launched in India. FTSE 100 includes 100 largest UK listed blue chip companies and has given returns of 17.8 per cent on investment over three years. The index constitutes 85.6 per

cent of UKs equity market cap. NSE recorded a volume of 500 crores (5000 million) on the 1st day of trading. Currency Derivatives In August 2008 currency derivatives were introduced in India with the launch of Currency Futures in USD INR by NSE. It also added currency futures in euro, pounds and yen. Interest Rate Futures were introduced for the first time in India by NSE on 31 August 2009, exactly one year after the launch of Currency Futures. Debt Market on 13 May, 2013 NSE launched India's first dedicated debt platform to provide a liquid and transparent trading platform or debt related products. NSE became the first stock exchange to get approval for interest rate futures, As recommended by SEBI-RBI committee, on 31 August 2009, a futures contract based on 7% 10 Year Government of India (Notional) was launched with quarterly maturities.

Exchange Traded Funds on NSE ETFs launched on NSE Exchange Traded Funds are essentially Index Funds that are listed and traded on exchanges like stocks. An ETF is a basket of stocks that reflects the composition of an Index, like S&P CNX Nifty. The ETFs trading value is based on the net asset value of the underlying stocks that it represents. ETF Schemes launched on NSE Equity Gold
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 Debt World Indices In recent times, Exchange-traded funds (ETFs) have gained a wider acceptance as financial instruments whose unique advantages over mutual funds have caught the eye of many an investor. These instruments are beneficial for Investors that find it difficult to master the tricks of the trade of analyzing and picking stocks for their portfolio. Various mutual funds provide ETF products that attempt to replicate the indices on NSE, so as to provide returns that closely correspond to the total returns of the securities represented in the index. Certifications NSE also conducts online examination and awards certification, under its programmes of NSE's Certification in Financial Markets (NCFM). Currently, certifications are available in 32 modules, covering different sectors of financial and capital markets, both at beginner and advanced levels. The list of various modules can be found at the official site of NSE India. Branches of the NSE are located throughout India. NSE has been offering a short-term course called NSE Certified Capital Market Professional (NCCMP) since August 2009.

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Benefits of Listing on NSE A premier marketplace The sheer volume of trading activity ensure that the impact cost is lower on the Exchange which in turn reduces the cost of trading to the investor. NSE's automated trading system ensure consistency and transparency in the trade matching which enhances investors confidence and visibility of our market. Visibility The trading system provides unparallel level of trade and post-trade information. The best 5 buy and sell orders are displayed on the trading system and the total number of securities available for buying and selling is also displayed. This helps the investor to know the depth of the market. Further, corporate announcements, results, corporate actions etc are also available on the trading system.

Largest exchange NSE is the largest exchange in the county in terms of trading volumes. During the year 2010-2011, NSE reported a turnover of 35, 77,412 crores in the equities segment. Unprecedented reach NSE provides a trading platform that extends across the length and breadth of the country. Investors from 191 centers can avail of trading

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facilities on the NSE Trading Network. The Exchange uses the latest in communication technology to give instant access from every location. Transaction speed The speed at which the Exchange processes orders, results in liquidity and best available prices. The highest number of trades in a day of 11,260,392 was recorded on May 19, 2009. Short settlement cycles The Exchange has successfully completed more than 2800 settlements without any delays.

Investor Rights and Obligations Investor Rights Right to get Unique Client Code (UCC) allotted Get a copy of KYC and other documents executed Get trades executed in only his/her UCC Place order on meeting the norms agreed to with the Member Get best price Contract note for trades executed Details of charges levied Receive funds and securities on time Receive statement of accounts from trading member Ask for settlement of accounts

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Investor Obligations - Under Obligation To Execute Know Your Client (KYC) documents and provide supporting documents Understand the voluntary conditions being agreed with the member Understand the rights given to the Members Read Risk Disclosure Document Understand the product and operational framework and deadlines Pay margins Pay funds and securities for settlement on time Verify details of trades Verify bank account and DP account for funds and securities movement Review contract notes and statement of account Rights to Remedies Take up a complaint against member with the Exchange Take up a complaint against listed company File arbitration against member if there is dispute Challenge the arbitration award before court of law Obligation Towards Remedies Take up complaint within reasonable time Complaint to be supported by appropriate documents When additional information is called for provide the same To participate in resolution meetings

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Purpose, Vision & Values of NSE : Purpose: Committed to improve the financial well-being of people. Vision: To continue to be a leader, establish global presence, facilitate the financial well being of people. Values: NSE is committed to the following core values : Customer focused culture Trust, respect and care for the individual Passion for excellence Teamwork

Awards & Recognition: NSCCL Rated CCR AAA for fourth consecutive year - 28th Dec 2011. For fourth consecutive year CRISIL has assigned its highest corporate credit rating of CCR AAA to the National Securities Clearing Corporation Ltd (NSCCL). 'CCR AAA' rating indicates highest degree of strength with regard to honouring debt obligations. As per CRISIL the rating reflects NSCCLs status as Clearing Corporation for NSE. The rating also factors in NSCCLs rigorous risk management controls and adequate settlement guarantee cover.
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CRISIL has further stated that NSCCLs risk management system is comprehensive, and is regularly upgraded to pre-empt market failures. The company addresses risks in clearing and settlement with its stringent norms for selection of members, robust margining system, and risk-based position limits and surveillance mechanism. NSE and NSCCL receive Asian Banker awards NSE has been awarded 'The Asian Banker Financial Derivative Exchange of the Year Award" NSCCL has been awarded 'The Asian Banker Clearing House of the Year Award"

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CHAPTER 3: BOMBAY STOCK EXCHANGE (BSE)

Bombay Stock Exchange is the oldest stock exchange in Asia What is now popularly known as the BSE was established as "The Native Share & Stock Brokers' Association" in 1875. Over the past 135 years, BSE has facilitated the growth of the Indian corporate sector by providing it with an efficient capital raising platform. Today, BSE is the world's number 1 exchange in the world in terms of the number of listed companies (over 4900). It is the world's 5th most active in terms of number of transactions handled through its electronic trading system. And it is in the top ten of global exchanges in terms of the market capitalization of its listed companies (as of December 31, 2009). The companies listed on BSE command a total market capitalization of USD Trillion 1.28 as of Feb, 2010. BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000 certifications. It is also the first Exchange in the country and second in the world to receive Information Security Management System Standard BS 7799-2-2002 certification for its BSE On-Line trading System (BOLT). Presently, BSE are ISO 27001:2005 certified, which is a ISO version of BS 7799 for Information Security. The BSE Index, SENSEX, is India's first and most popular Stock Market benchmark index. Exchange traded funds (ETF) on SENSEX, are listed on BSE and in Hong Kong. Futures and options on the index are also traded at BSE.

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History The Bombay Stock Exchange is known as the oldest exchange in Asia. It traces its history to the 1850s, when stockbrokers would gather under banyan trees in front of Mumbai's Town Hall. The location of these meetings changed many times, as the number of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as 'The Native Share & Stock Brokers Association'. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act.

The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the BSE a means to measure overall performance of the exchange. In 2000 the BSE used this index to open its derivatives market, trading Sensex futures contracts. The development of Sensex options along with equity derivatives followed in 2001 and 2002, expanding the BSE's trading platform.

Historically an open-cry floor trading exchange, the Bombay Stock Exchange switched to an electronic trading system in 1995. It took the exchange only fifty days to make this transition. Today BSE is among the 10 major international exchanges in context of market investment of the firms registered under it. The total amount of investment dominated by the cataloged firms under BSE as on 31st March, 2010 was USD 1.36 Trillion.

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Need of BSE BSE is one of the factors Indian Economy depends upon. BSE has played a major role in the development of the country. Through BSE, Foreign Investors have invested in India. Due to inward flow of foreign currency then, the Indian economies have started showing the upward trend towards the development of the country.

BSE provides employment for many people. Trading in BSE is also a business for a few, their family income depends on it, that is the reason why when scandals occur in the stock market it not only affects the companies listed but also affects many families. In the few extreme cases, it is observed that the bread winner of a family tends to suicide due to the losses occurred.

In most of major industrial cities all over the world, where the businesses were evolving and required investment capital to grow and thrive, stock exchanges acted as the interface between Suppliers and Consumers of capital. One of the key advantages of the stock exchanges is that they are efficient medium for raising resources and channeling savings from the general public by the way of issue of Equity / Debt Capital by joint stock companies which are listed on stock exchanges. Not to forget that the taxes and other statutory charges paid by BSE are substantial and make a sizeable contribution to the Government exchequer (Financial resources; funds). For example, transactions on the stock exchanges are subject to stamp duties, which is paid to the State Government. The annual revenue from this source ranges from Rs 75 100 crores
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With the opening up of the financial markets to Foreign Investors a number of foreign institutional investors and brokers have established a sizeable presence in Mumbai.

With no doubt we can clearly state without BSE, the Indian Economy would have been a complete different story. Various companies wouldnt have been a strong and successful as they are today and the brokers and traders would have been elsewhere.

BSE is an asset to our country and its existence plays a vital role in many peoples life that depends on it. Indeed, BSE has made a major contribution to the industrial and economic development of India.

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Functions of BSE The Stock Market is a pivotal institution in the financial system. A wellordered stock market performs several economic functions: It ensures the measure of safety and fair dealing It performs an act of magic by translating short -term investments into long-term funds for companies. It directs the flow of capital in the most profitable channels. It induces companies to raise their standard of performance. It offers guidance to management about the cost of capital.

Measure of Safety and Fair Dealing:

The stock exchanges operate under a regulatory framework which seeks to protect the interest of investors. The rules, regulations, and bye-laws of a stock exchange, which are approved by the central government, are meant to ensure that a reasonable measure of safety is provided to investors and transactions take place in competitive conditions which are fair to all concerned.

Act of Magic: Most of the investors are interested in short-term investments. The
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requirements of companies are, however, long-term in naturethey require equity capital on a more or less permanent basis and debenture capital for 3 to 15 years. Thanks to the negotiability and transferability of securities, through the stock market, it is possible for companies to obtain their long-term requirements from investors with short-term horizons. While one investor is substituted by another when a security is transacted, the company is assured of availability of funds.

Flow of Capital in the Most Profitable Channels: Companies which have more profitable investment opportunities are normally able to raise substantial funds through the stock market whereas companies which do not have such opportunities are normally not able to do so.

Inducement to Companies to Raise their Standard of Performance: When the equity, capital of a company is listed on a stock exchange, the performance of the company is reflected in the market price of the equity stock, which is readily available for public consumption. Put differently, the companys performance is more visible in the eyes of public. Such a public exposure normally induces companies to raise their standard of performance.

Guidance of Cost of Capital: The market value of the securities of company are required for computing its cost of capital. Such values can be obtained from stock market quotations. Hence the stock market offers guidance on cost of capital.
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Listing of companies

Public Limited Company. Public Listed Company Public Non-listed Company

Listed Company means a public ltd Co which is: Listed on any one or more recognized stock exchanges in India. Securities (shares: debentures) of such company are traded on such stock exchanges. Unlisted company therefore means a company whose securities are not listed on any of recognized stock exchanges in India.

Companies get listed with Stock Exchange: Companies get listed with Stock Exchange for following reasons: Securities are freely transferable. -Easy liquidity of securities. Easy availability of prices of securities. Reputation, Image, Goodwill. Public awareness. More

transparency. Helps in obtaining loans from Banks/Institutions. -Helps in marketing its Products.

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In order to list securities of a company & get its shares traded on any recognized stock exchanges, the Public Ltd Company may either come out with a public issue (i.e. to offer further securities to public) or make an offer for sale of existing securities to public. This can be done by issuing of Prospectus & Complying with all The Provinces of Company Act 1956. Each stock exchange has its own criteria for listing securities which should also be met. Eg: If company intends to get listed its securities in Bombay Stock Exchange, Mumbai post issue capital (paid up capital after proposed public issue) of such companies should be Rs. 10 Crores at least.

The Company enters into a listing agreement with concerned stock exchange & on receipt of permission from concerned Stock Exchange, company is listed and securities are thereafter traded on such stock exchange.

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Trading and settlements Trading: Each Stock Exchange has listed and permitted securities that are traded on it. There are two ways of organizing the trading activity. Open Outcry System: Under the open outcry system traders shout and resort to signals on the trading floor of the exchange which consists of several notional trading posts for different securities. A member (or his representative) wishing to buy or sell a certain security, reaches the trading post where the security is traded. Here, he comes in contact with others interested in transacting in that security. Buyers make their bid and sellers make their offers and bargains are closed at mutually agreed-upon prices. In stock where jobbing is done, the jobber plays an important role. He stands ready to buy or sell on his account. He quotes his bid (buying) and asks (selling) prices. He provides some stability and continuity to the market. Screen Based System: In the screen-based system the trading ring is replaced by the computer screen and distant participants can trade with each other through the computer network. A large screen based trading system (a) enhances the informational efficiency of the market as more participants trade at a faster speed; (b) permits the market participants to get a full view of the market, which increases their confidence in the market; and (c) establishes transparent audit trails. Settlement: The settlement of transactions is done on a settlement period basis. Earlier, the settlement period on the Indian Stock Exchanges was 7 days, but now it is T+1 settlement. T+1 includes the day of trade and an additional day. During a
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settlement period, buying and selling transactions in a particular security can be squared up. Square off is a same day settlement cycle. At the end of settlement period, transactions are settled on net basis. Since the settlement period used to be 7 days and the settlement is for the net position, most of the transactions are squared within the settlement period. Clearly these transactions are motivated by a desire to profit from price variations within the settlement period. Traditionally, trades have been settled by physical delivery. This means that the securities have to physically move from the seller to the sellers broker, from the sellers broker to the buyers broker (through the clearing house of the exch ange or directly), and from the buyers broker to the buyer. Further the buyer has to lodge the securities with the transfer agents of the company and the process of the transfer may take one to three months. This leads to high paperwork cost and creates bad paper risks. To mitigate the cost and the risks associated with the physical delivery, settlement in the developed securities market is mainly through electronic delivery facilitated by depositories. A depository is an institution which immobilizes physical certificates (of securities) and effect transfers of ownership by electronic book entry. A beginning in the direction of electronic delivery has been made in India with the establishment of the National Securities Depository Limited (NSDL), Indias first depository, in 1996. As NSDL expands its operations and as new depositories come into being, settlement will progressively be done more by electronic delivery and less by physical delivery

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CHAPTER 4: DIFFERENCE BETWEEN NSE AND BSE

The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd (NSE) are the two primary exchanges in India. In addition, there are 22 Regional Stock Exchanges. However, the BSE and NSE have established themselves as the two leading exchanges and account for about 80 per cent of the equity volume traded in India.

The difference between NSE and BSE:

BSE:Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage. Popularly known as BSE, it was established as The Native Share & Stock Brokers Association in 1875. It was the first stock exchange in the country to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act, 1956

NSE:The National Stock Exchange of India 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. In April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956.

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Figure and facts: Both are the stock exchange recognized by SEBI(Securities and Exchange Board of India). The NSE and BSE are equal in size in terms of daily traded volume. The average daily turnover at the exchanges has increased from Rs 851 crore in 1997-98 to Rs 1,284 crore in 1998-99 and further to Rs 2,273 crore in 1999-2000 (April August 1999). NSE has around 1500 shares listed with a total market capitalization of around Rs 9,21,500 crore (Rs 9215-bln). The BSE has over 6000 stocks listed and has a market capitalization of around Rs 9,68,000 crore (Rs 9680-bln). Most key stocks are traded on both the exchanges and hence the investor could buy them on either exchange. Anyone can deal in securities by any of the exchange. A person need to open a demat account to buy and sell securities in any of the exchange.

Indexes: SENSEX (Sensitive index):This index is comprised of 30 of the largest and most actively-traded stocks on the BSE. Other index in BSE are; BSE 500, BSE 100, BSE 200, BSE PSU, BSE MIDCAP, BSE SMLCAP, BSE BANKEX, BSE Teck, BSE Auto, BSE Pharma, BSE Fast Moving Consumer Goods (FMCG), BSE Consumer Durables (SYMBOL: Cons Dura), BSE Metal. The BSE Sensex is the older and more widely followed index.

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NIFTY (NATIONAL FIFTY):This index is comprised of 50 of the largest and most actively-traded stocks on the BSE. NSE also set up as index services firm known as India Index Services & Products Limited (IISL) and has launched several stock indices, including: S&P CNX Nifty, CNX Nifty Junior, CNX 100 (= S&P CNX Nifty + CNX Nifty Junior), S&P CNX 500 (= CNX 100 + 400 major players across 72 industries), CNX Midcap (introduced on 18 July 2005 replacing CNX Midcap 200).

Basic between BSE and NSE Both are stock exchange of India. NSE has around 1500 shares listed whereas the BSE has over 6000 stocks listed. NSE has capitalization of around Rs 9,21,500 crore (Rs 9215-bln). The BSE has market capitalization of around Rs 9,68,000 crore (Rs 9680-bln).

NSE index is caleed as NIFTY whereas BSE index is SENSEX. NSE has 50 companies for NIFTY whereas BSE has 30 companies for SENSEX.

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Comparison chart of NSE and BSE BSE Number of listed companies: Market capitalization of listed companies: Main Index: Index value: Location: Claim to fame: 5,163 (as of late 2012) NSE 1,810 (as of June 2010)

USD 1.2 trillion (as of Dec 2012)

USD 0.99 trillion (as of Sep 2013)

BSE Sensex 19,900 (as of Sep 2013) Mumbai, India Oldest stock exchange in Asia.

S&P CNX Nifty 5,889 (as of Sep 2013) Mumbai, India Largest stock exchange in India in terms of daily turnover and number of trades. Ms Chitra Ramkrishna (Managing Director and CEO) www.nseindia.com Presence in 1,486 cities 1,009 as on March 2007 1992 National Stock Exchange

Key Person:

Mr Ashish Chauhan (MD & CEO) www.bseindia.com Presence in 417 cities 951 (Oct 2007) 1875 formerly Bombay Stock ExchangeLimited; now simply BSE

Website: Geographical spread: Number of members: Established in: Name:

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BSE Number of listed 5,163 (as of late 2012) companies: USD 1.2 trillion (as of Dec Market capitalization of 2012) listed companies: Main Index: Index value: Claim to fame: BSE Sensex 19,900 (as of Sep 2013) Oldest stock exchange in Asia.

NSE 1,810 (as of June 2010)

USD 0.99 trillion (as of Sep 2013) S&P CNX Nifty 5,889 (as of Sep 2013) Largest stock exchange in India in terms of daily turnover and number of trades. Ms Chitra Ramkrishna (Managing Director and CEO) www.nseindia.com Presence in 1,486 cities 1,009 as on March 2007 1992 National Stock Exchange

Key Person:

Mr Ashish Chauhan (MD & CEO) www.bseindia.com Presence in 417 cities 951 (Oct 2007) 1875 formerly Bombay Stock ExchangeLimited; now simply BSE

Website: Geographical spread: Number of members: Established in: Name:

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DIAGRAMATIC PROJECTION OF THE DIFFERENCE OF BSE AND NSE

Comparison of Trade Value of BSE and NSE:

NSE

BSE

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COMPARISON OF MARKET CAPITALISATION OF NSE AND BSE

BSE 1627

NSE : 1588

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INVESTOR STOCK EXCHANGE PREFERENCE

NSE : 58% BSE : 36% OTHERS : 5%

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REASON FOR PREFERRING NSE

LIQUIDITY

BRAND VALUE

TRUST

DIVERSIFIED SERVICES

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CLIENT SATISFACTION

NSE

BSE

BOTH

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CONCLUSION

Stock market is something which you cannot predict what is going to happen in the market tomorrow without analysis. So it is always preferable to0 go for some professional help if you wish to invest in Indian stock market. We should also be acquainted with the concept of NSE and BSE.

BSE and NSE are both major stock exchanges in India. But there are difference between NSE and BSE. Investors invest their money in order to reap huge benefits form markets from their investment. But nobody can predict the market as we have already discussed. Also growth of these stock exchanges is decided by our countries growth. But we should be aware that it requires a lot of patience.

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