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Bombay Stock Exchange

The Bombay Stock Exchange (BSE) (Hindi : मुंबई शेअर बाजार Bombay Śhare Bāzaār)
(formerly, The Stock Exchange, Bombay) is the oldest stock exchange in Asia and largest
number of listed companies in the world, with 4990 listed as of August 2010.[2][3] It is
located at Dalal Street, Mumbai, India. On Aug, 2010, the equity market capitalization of
the companies listed on the BSE was US$1.39 trillion, making it the 4th largest stock
exchange in Asia and the 11th largest in the world.[4]

With over 4,990 Indian companies listed & over 7700 scrips on the stock exchange,[5] it
has a significant trading volume. The BSE SENSEX (SENSitive indEX), also called the
"BSE 30", is a widely used market index in India and Asia. Though many other
exchanges exist, BSE and the National Stock Exchange of India account for most of the
trading in shares in India.

The Bombay Stock Exchange is the oldest exchange in Asia. It traces its history to the
1850s, when 4 Gujarati and 1 Parsi stockbroker 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 outcry 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. This automated, screen-based trading platform called
BSE On-line trading (BOLT) currently has a capacity of 80 lakh orders per day. The BSE
has also introduced the world's first centralized exchange-based internet trading system,
BSEWEBx.co.in to enable investors anywhere in the world to trade on the BSE platform.
[7]
. The BSE is currently housed in Phiroze Jeejeebhoy Towers at Dalal Street, Fort area.

19 October 2010 BSE today introduced the 15-minute special pre-open trading session, a
mechanism under which investors can bid for stocks before the market opens. The
mechanism, known as 'pre-open session call auction', lasted for 15 minutes (from 9:00-
9:15 am). [9]

Awards
• The Annual Reports and Accounts of BSE for the year ended March 31, 2006 and
March 31 2007 have been awarded the ICAI awards for excellence in financial
reporting.
• The Human Resource Management at BSE has won the Asia - Pacific HRM
awards for its efforts in employer branding.
• The World Council of Corporate Governance has awarded the Golden Peacock
Global CSR Award for BSE's contributions in Corporate Social Responsibility
(CSR).

The National Stock Exchange (NSE) (Hindi: राषटीय शेअर बाजार) is a stock exchange
located at Mumbai, India. It is the largest stock exchange in India in terms of daily
turnover and number of trades, for both equities and derivative trading.[2] NSE has a
market capitalization of around 6,393,418 crore (US$1,451.31 billion) (August 2010)
and was expected to become the biggest stock exchange in India in terms of market
capitalization by 2009 end[3], although this has not yet occurred. 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, 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.[4] There are at least 2 foreign investors NYSE Euronext and
Goldman Sachs who have taken a stake in the NSE.[5] As of 2006, the NSE VSAT
terminals, 2799 in total, cover more than 1500 cities across India.[6] In October 2007, the
equity market capitalization of the companies listed on the NSE was US$ 1.46 trillion,
making it the second largest stock exchange in South Asia. NSE is the third largest Stock
Exchange in the world in terms of the number of trades in equities.[7] It is the second
fastest growing stock exchange in the world with a recorded growth of 16.6%.[8]

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. 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 1994, while operations in the
Derivatives segment commenced in June 2000.
Conceptual Discussion

Sharekhan launches Fortune Finder for Stock Market


Investors

Date: 16-09-2010 11:29 AM


Source: Sharekhan Ltd (Business Wire India)
Category: Business, Science & technology, Leisure
Location: Mumbai, Maharashtra, India

Sharekhan Ltd, one of India’s leading retail stock brokerage houses with a strong online trading
business, launches Fortune Finder for the retail Investors and traders today. It will help in taking
decisions on when to Buy, hold or sell any stock. It covers over 3000 stocks for delivery
recommendations and 500 stocks for day trading calls. With an increasing institutional and
overseas participation, retail investors remain to be the most sensitive segment as they grope to
find the right entry and exit strategies for the stocks that they hold or the stock that they wish to
get into.

The best strategy for the stock market in such volatile times is to ride on the trend. Sharekhan
breaks through by bringing Fortune Finder- a web and SMS based automated tool that will
generate unambiguous Buy/Sell/Hold/Stay-out & Long/Short signals on stocks, across NSE and
BSE.

Fortune Finder is an outcome of rigorous research that went in for building proprietary trend
tracking algorithms, which can suit any kind of instrument and market. Vantage Trade, a Product
of Forceites Pvt Ltd, powers this tool.

This paid service offered on Sharekhan’s trading portal is tailored for both, long-term investors
and day-traders by giving the option to choose between two packages. This gives retail investors
from various trading backgrounds the opportunity to find Fortune through profitable trades.

Speaking for the occasion, Mr. Tarun Shah, CEO, Sharekhan Ltd said, “Investors are
presented with an intuitive interface, which enables them to take call to action in the market. We
also see a great business potential in offering this service, but our primary focus remains at
empowering retail investors in stock market”

NEW CONCEPTUAL DISCUSSION

What is a service?

An act of helpful activity, the supply of utilities or commodities as water, electricity, etc. to the
general public or interested party.

Sharekhan Services
Share khan is one of India's leading financial services company. It provides a complete
life cycle of investment solution in Equities, Derivatives, Commodities, IPO, Mutual
Funds, Depository services, Portfolio Management Services and Insurance. Share khan
also offer personalized wealth management services for High Net worth individuals. With
a physical presence in over 300 cities of India through more than 800 "Share Shops", and
an online presence through Sharekhan.com, India's premier online destination, it reaches
out to more than 800,000 trading customers.

PORTFOLIO MANAGEMENT:

Ideal for investors looking at steady and superior returns with low to medium risk
appetite. The portfolio consists of a blend of quality blue-chip and growth stocks ensuring
a balanced portfolio with relatively medium risk profile. The portfolio will mostly have
large capitalization stocks based on sectors & themes that have medium to long term
growth potential.

For this ' BETA ' of a security is calculated to know the measure of Systematic Risk
inherent in a security.

Year Return on Security Return on

Product Details

• Minimum Investment: Rs 5 lakhs


• Lock in period: 6 Months
• Reporting: Online access to portfolio holdings, quarterly reporting of portfolio
holdings/transactions
• Charges: 2.5% per annum AMC charged every quarter, 0.5% brokerage 20%
profit sharing after 15% hurdle is crossed-chargeable at the end of the fiscal year.
• Profit withdrawal in multiples of 25000 after lock in period.

SHARE SWAPS:

Share khan has 1200 share shops across 400 cities in India to get a host of trading and
investment related services. .

A Share khan outlet offers the following services:


• Online BSE and NSE executions (through BOLT & NEAT terminals)
• Free access to investment advice from Share khan’s Research team
• Share khan Value Line (a monthly publication with reviews of recommendations,
stocks to watch out for etc)
• Daily research reports and market review (High Noon & Eagle Eye)
• Pre-market Report (Morning Cuppa)
• Daily trading calls based on Technical Analysis
• Cool trading products (Daring Derivatives and Market Strategy)
• Personalised Advice
• Live Market Information
• Depository Services: Demat & Remat Transactions
• Derivatives Trading (Futures and Options)
• Commodities Trading
• IPOs & Mutual Funds Distribution
Internet-based Online Trading: Speed Trade
WHAT IS DEMAT?

The term Demat, in India, refers to a dematerialised account. For individual Indian
citizens to trade in listed stocks or debentures. The Securities Exchange Board of India
(SEBI) requires the investor to maintain a Demat account. In a demat account shares and
securities are held in electronic form instead of taking actual possession of certificates. A
Demat Account is opened by the investor while registering with an investment broker (or
sub broker). The Demat account number which is quoted for all transactions to enable
electronic settlements of trades to take place.

Access to the demat account requires an internet password and a transaction password as
well as initiating and confirming transfers or purchases of securities. Purchases and sales
of securities on the Demat account are automatically made once transactions are executed
and completed.

Dematerialisation and trading in the demat mode is the safer and faster alternative to the
physical existence of securities. Demat as a parallel solution offers freedom from delays,
thefts, forgeries, settlement risks and paper work. This system works through depository
participants (DPs) who offer demat services and the securities are held in the electronic
form for the investor directly by the Depository. Share khan Depository Services offers
dematerialisation services to individual and corporate investors. We have a team of
professionals and the latest technological expertise dedicated exclusively to our demat
department, apart from a national network of franchisee, making our services quick,
convenient and efficient. At Share khan, commitment is to provide a complete demat
solution which is simple, safe and secure.

BENEFITS OF DEMAT:
• It is a safe and convenient way to hold securities.
• Immediate transfer of securities is there.
• There is no stamp duty on transfer o securities.
• Elimination of risk associated with physical corticated such as bad delivery, fake
security, theft, delays etc.
• Holding investment in equity and debt instruments in a single account.
• Automatic credit into Demat account of shares on account of Merger,
Consolidation, Share-Split, bonus etc.
• Transmission of securities is done by DP thus eliminating corresponding with
companies.
• There is major reduction on paperwork involved in transfer of securities,
reduction in transaction cost etc.

DOCUMENTS:

• 2 PASSPORT SIZE PHOTOGRAPH


• COPY OF PAN CARD ( Mandatory)
• FOR IDENTIFICATION PROOF :
Voter ID card or Driving License or Passport
• A CANCELLED CHEQUE
• BANK STATEMENT (if cheque not personalized)
Services Sector in India:

Service Sector in India today accounts for more than half of India's GDP. According to data for the financial
year 2006-2007, the share of services, industry, and agriculture in India's GDP is 55.1 per cent, 26.4 per
cent, and 18.5 per cent respectively. The fact that the service sector now accounts for more than half the
GDP marks a watershed in the evolution of the Indian economy and takes it closer to the fundamentals of a
developed economy.
There was marked acceleration in services sector growth in the eighties and nineties, especially in the
nineties. While the share of services in India's GDP increased by 21 per cent points in the 50 years between
1950 and 2000, nearly 40 per cent of that increase was concentrated in the nineties. While almost all service
sectors participated in this boom, growth was fastest in communications, banking, hotels and restaurants,
community services, trade and business services. One of the reasons for the sudden growth in the services
sector in India in the nineties was the liberalisation in the regulatory framework that gave rise to innovation
and higher exports from the services sector.

The boom in the services sector has been relatively "jobless". The rise in services share in GDP has not
accompanied by proportionate increase in the sector's share of national employment. Some economists
have also cautioned that service sector growth must be supported by proportionate growth of the industrial
sector, otherwise the service sector grown will not be sustainable. In the current economic scenario it looks
that the boom in the services sector is here to stay as India is fast emerging as global services hub.

Note: The above information was last updated on 21-07-2007