Bombay Stock Exchange Final Ppt

GROUP MEMBERS AJINKYA LAVATE CHANKY JAIN NEERAJ INGLEKAR JAMES FERNANDES PRITAM GAVLI

BOMBAY STOCK EXCHANGE

•BOMBAY STOCK EXCHANGE IS THE

OLDEST STOCK EXCHANGE IN ASIA WITH RICH HERITAGE •IT SPANS OVER THREE CENTURIES

WITH 133 YEARS OF EXISTENCE •BSE WAS EXTABLISHED AS “THE

NATIVE SHARE AND STOCK BROKERS ASSOCIATION” IN 1875

FEATURES

SALIENT FEATURES PERMANENT RECOGNITION EARLIER OPEN OUTCRY SYETEM NOW BOLTS T+1 = 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

DLF

HUL

MAH N MAH

REL INFRA

TATA STEEL

GRASIM

ICICI BANK

MARUTI SUZ SBI

TCS

HDFC

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 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 Close Surcon

Markets Equity Futures and Options Wholesale Debt Market Currency 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

VARIOUS SECTORS THESE COMPANIES ACCOUNTS FOR 77% of all the trading volume on the NSE and 60% of the total market capitalization.  The index started with a base 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 ABB

Dr. Hero Reddy's Honda

ACC

GAIL India

Larsen & Power Toubro Grid

Hindalco MTNL

Ambuja GlaxoSmi HUL Cements thKline Pharma

PNB

Satyam TCS

Siemens

Tata Motors

Mahindra Ranbaxy State & Labs Bank of Mahindra India

Tata Power

MARUTI

Reliance SAIL Comm

Tata Steel

BPCL

Grasim

IPCL

Bharti Airtel

HCL Techno

ICICI Bank National

Reliance Sterlite ENERGY

VSNL

BHEL

HDFC

Infosys

NTPC

Reliance Sun Ind. Pharma

Wipro

Cipla

HDFC

ITC

ONGC

RPL

Zee

Aluminium Co.

Suzlon

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 Buying of ACC shares. Price rose upto Rs 10000/Replacement cost theory.

SCAM EXPOSED IN 1991, HE BECOME THE DARLING OF BUSINESS

MEDIA AND GAINED THE NICKNAME “BIG 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 SECTOR DIPPED. THE 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 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…. 1.

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

The Ketan Parekh (KP) 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 and entertainment) Invested in 10 companies which is known as k-10 Shares 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 sensex crashed by 176 points on march 2001. The total scam was nearly 2000 billion Which set back the country's economy by a year Many small investors lost their savings of life Ketan 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