STOCK EXCHANGE WELCOME TO ALL.

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Presentation transcript:

STOCK EXCHANGE WELCOME TO ALL

Financial Markets Primary Market Secondary Market Instruments issued for first time Used by Government/Corporates/PSU’s IPO Initial Public Offering Secondary Market Trading of already issued Stocks Bonds Stock Exchange

The primary market is that part of the capital markets that deals with the issue of new securities. Companies, governments or public sector institutions can obtain funding through the sale of a new stock or bond issue. An initial public offering (IPO), referred simply as an "offering" or "flotation", is when a company (called the issuer) issues common stock or shares to the public for the first time

The secondary market, also known as the aftermarket, is the financial market where previously issued securities and financial instruments such as stock, bonds, options, and futures are bought and sold.

WHAT IS STOCK EXCHANGE Stock exchange is that place where trading of shares is done in terms of sale and purchase.

INTRODUCTION : There are 23 stock exchanges in the India. Mumbai's (earlier known as Bombay), Bombay Stock Exchange is the largest, with over 6,000 stocks listed. The BSE accounts for over two thirds of the total trading volume in the country. Established in 1875, the exchange is also the oldest in Asia. Among the twenty-two Stock Exchanges recognised by the Government of India under the Securities Contracts (Regulation) Act, 1956, it was the first one to be recognised and it is the only one that had the privilege of getting permanent recognition.

Name of Indian stock exchange: 1.Bombay stock exchange 2.national stock exchange(Mumbai) 3.Banglore stock exchange 4.Utter pradesh stock exchange(kanpur) 5.Magadh stock exchange(Patna) 6.Ahmedabad stock exchange 7.vadodara stock exchange(Baroda) 8.Bhubaneswar stock exchange 9.Calcutta stock exchange(kolkata) 10.madras stock exchange

Cont……. 11.Cochin stock exchange 12.coimbatore stock exchange 13.Gauhati stock exchange 14.Hydrabad stock exchange 15.Madhya pradesh stock exchange(indore) 16.Jaipur stock exchange 17.Ludhina stock exchange 18.Mangalore stock exchange 19.Pune stock exchange 20.saurashtrakutch stock exchange

Cont……. Bombay stock exchange : it has 30 companies sripted. Name:1.ACC 2.BAJAJ 3.AIRTEL 4.BHEI 5.CIPLA 6.DLF 7.GRASIM 8.GUJRAT AMBUJA 9.HDFC 10.HDFC BANK

CONT…… 11.HERO HONDA 12.HINDALCO 13.HUL 14.ICICI BANK 15.INFICYS 16.ITC 17.L&T 18.MARUTI 19.NTPC 20.ONGC

CONT…… 21.RANBAXY 22.RELIANCE COMMUNICATION 23.RELIANCE ENERGY 24.RIL 25.SATYAM 26.SBI 27.TCS 28.TATA MOTERS 29.TATA STEEL 30.WIPRO

BSE CHART

NSE The National Stock Exchange (NSE), located in Bombay, is India's first debt market. It was set up in 1993 to encourage stock exchange reform through system modernization and competition. It opened for trading in mid-1994. It was recently accorded recognition as a stock exchange by the Department of Company Affairs. The instruments traded are, treasury bills, government security and bonds issued by public sector companies

CONT………. The Organisation: The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing.

CONT……… Based on the recommendations, NSE 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 unlike other stock exchanges in the country

FROM THE INVESTORS POINT OF VIEW 1.Liquidity of the investment is increased 2.The securities dealt on a stock exchange are good collateral security for loans. 3.The stock exchange safeguards interests of investors through strict enforcement of rules and regulations. 4.The present net worth of investments can be easily known by the daily quotations. 5.His risk is considerably less when he holds or purchases listed securities.

EQUITY SHARES All shares which are not preference shares are equity shares.These shares do not have a fixed rate of dividend,they are always irredeemable and their holders have normal voting rights. They are also the owners of the company. They take dividend

DEBENTURES A document under the company seal which provides for the payment of a principal sum and interest there on at regular intervals which is usually secured by a fixed or floating charge on the company’s property or undertaking which acknowledges a loan to the company.

INTERNAL PLAYERS Broker: He is a commission agent who transacts business in securities on behalf of non-members. They may have number of sub-brokers to canvass and secure business for them. .

CAUSES OF PRICE FLUCTUATION 1.DAMAND AND SUPPLY 2.BANK RATE 3.CHANGE IN COMPANY’S BOARD OF DIRECTORS 4.FINANCIAL POSITION OF THE COMPANY 5.TRADE CYCLE 6.POLITICAL FACTORS

SEBI It was constituted and made a statutory body by SEBI act 1992.With the coming into effect of SEBI, some of the powers and function exercised by the central government,in respect of regulation of stock exchanges were transferred to the SEBI.

OBJECTIVES OF SEBI 1.Registring and regulating the working of stock brokers,sub-brokers,share transfer agents,underwriters……….who may be associated securities market in any manner. 2.Registering and regulating the working of collective investment scheme including mutual funds. 3.Prohibiting insider trading in securities. 4.Regulating substantial acquisition of shares and takeovers of companies.

Cont…… 5.Calling for information from,undertaking inspection,conducting inquiries and audits of stock exchanges and intermediaries and self regulatory organizations in the securities market. 6.Performing such function and exercising such powers under the provisins of the capital issues(control) act 1947 and SCRA 1956,as may be delegated to it by the central government. 7.Performing such other functions as may be prescribed.

RULES FOR REPURCHASE UNDER SEBI ACT 1988 1.Regulations cover only the listed securities of the company 2.In case of purchase through the stock exchange an offer for buy back will not remain open for more than 30 days. 3.Buy back through negotiated deals, spot transactions or private arrangements is not permitted. 4.In the purchases made through stock exchange, the details under the buy back scheme shall be made available to the stock exchange on daily basis:the details in turn shall be made available to public regularly.

HOW RATING IS GIVEN TO THE COMPANY? Basically rating is given after see the company 'image,management quality,assets quality,auditors quality,accounting accuracy.Rating is not fixed, it may be change. The rating grades are: AAA: HIGHEST SAFTY AA: HIGH SAFTY A: ADEQUATE SAFTY BBB: MODERATE SAFTY BB: IN ADEQUATE SAFTY BC&D: HIGH RISK AND DEFAULT

CREDIT RATING AGENCY IN INDIA 1.CRISIL 2.ICRA 3.CARE 4.DPCR

conclusion THANKS TO LISTENING THE STOCK EXCHANGE IS CONSIDERED TO BE THE BAROMETER OF ECONOMIC ACTIVITY. THANKS TO LISTENING