nse bse listing
TRANSCRIPT
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By:
S.Maithreyi
09011U0505
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NSE of India Located in Mumbai ,India 11th largest stock exchange in
world with
market capitalization
(1.178 trillion $)
Largest stock exchange
in India in term of no. of
trades done in both
in equity and derivativestrading
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Origin of
NSE was recommended by Pherwani committeein 1991.
NSE of India was promoted by leading Financial
institutions( IDBI,ICICI,IFCI etc..) at the behestof the Government of India.
Incorporated in November 1992 as a tax-payingcompany.
In April 1993recognized as stock exchangeSecurities Contracts (Regulation) Act, 1956.
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In June 1994 started operations in WDM
In Nov 1994 operations in capital market
In June 2000-Derivatives
April 1996 Launch of S&P CNX Nifty
History of
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Managing Director & CEO
Ms. Chitra RamkrishnaNational Stock Exchange ofIndia Limited
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Purpose or Objectives of NSE
Establishing nationwide trading facility
Ensuring equal access to investors
Providing fair, efficient & transparentsecurities market using electronic tradingsystem
Enabling shorter settlement cycles andbook entry settlements
Meeting International benchmarks andstandards
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Markets
Currently, NSE has the following major segments of thecapital market:
Equities
Equities Indices
Mutual Funds
Exchange Traded Funds
Initial Public Offerings Security Lending and Borrowing Scheme
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Markets
Derivatives
Equity Derivatives (including Global Indices like S&P500, Dow Jones and FTSE )
Currency Derivatives Interest Rate Futures
Debt
Retail Debt Market
Wholesale Debt Market Corporate Bonds
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S&P CNX NITFY
The S&P CNX Nifty ( Nifty 50 or simply Nifty) is a
composite of the top 50 stocks listed on the NationalStock Exchange (NSE), representing 24 different sectorsof the economy.
CRISIL NSENIFTY
50
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S&P CNX NITFY
TATA Motors
Ranbaxy
TATA steel
Grasim Indus.
Axis bank GAIL
NTPC
Siemens
BPCL
IDBI
CIPLA
HERO HONDA Etc.
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Advantages of NSE
Wider accessibility
Screen based trading
Non-disclosure of the trading members identity Transparent transaction
Matching of orders
Trading in dematerialized form Effective settlement of corporate benefit
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Trading hours
Trading takes place on all days of the week exceptSaturdays &
Sundays.
Regular trading session Normal Market Open: 09:15 hrs
Normal Market Close: 15:30 (3:30) hrs
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BSE of India Located at Dalal street, Mumbai
India.
10th largest stock exchange in worldwith market capitalization
(1.32 trillion $)
Asias 1st S.E and 2nd Leading S.E inIndia.
Corporatized and demutualised entity
(converting not-for-profit exchangesto for-profit and then shareholdercompanies in order to go public.)
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BSE includes two leading global exchanges, Deutsche Bourse andSingapore Exchange as strategic partners. Also recently with S&PDOW JONES INDICES on 19 February 2013
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No 1 S.E in terms of listed members
5th most active S.E in handling transactions through
electronic traded system. Indias 1st S.E $ 2nd in the world to obtain an ISO
9001:2000 certification.
1st in country and 2nd in world to receive Information
Security Management System Standard BS 7799-2-2002certification for its On-Line trading System (BOLT-8million orders per day ).
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History of
Started with a group of four Gujarati and one Parsistockbroker under banyan trees in front of Mumbai'sTown Hall.
Moved to Dalal Street in 1874 and in 1875 became anofficial organization known as 'The Native Share & StockBrokers Association'.
In 1956 , 1st S.E recognized by India.
In 1986 - BSE SENSEX index
switched to an electronic trading system in 1995.
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Managing Director & CEO
Mr. Ashish ChouhanBSE India.
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BSEs popular equity index - the S&P BSE SENSEX [FormerlySENSEX ] - is India's most widely tracked stock market benchmarkindex. It is traded internationally on the EUREX as well as leadingexchanges of the BRCS nations (Brazil, Russia, China and South
Africa).
SENSEX 30 companies
SENSITIVE INDEX SENSEX
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Advantages of
Efficient and transparent market for trading in equity,debt instruments, derivatives, mutual funds
trading in equities of small-and-medium enterprises(SME).
Around 6000 companies are listed in BSE.
Offer services to capital market participants including risk
management, clearing, settlement, market data servicesand education.
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Trading hours
The hours of operation for the BSE quoted above arestated in terms the local time (GMT + 5:30). BSE's
normal trading sessions are on all days of the weekexcept Saturday, Sundays and holidays declared by theExchange.
Trading Session09:15 - 15:30
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Listing Procedure In StockExchange
Listing : Process of including securities of a company ina S.E for the purpose of trading .
The objectives of listing are mainly to :
provide liquidity to securities;
mobilize savings for economic development;
protect interest of investors by ensuring full disclosures.
Listing procedure is regulated under the guidance ofSecurities contract Regulations Act and SEBI.
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What all are needed while listing down inS.E ?
Important documents of company like
Memorandum of association
Article of association
Prospectus, directors report
Annual accounts
Companys activities ,capital structure,
distribution of dividends, shares and bonus.All these details along with application for listing .
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NSE listing procedure
Securities listed on the Exchange are required to
fulfil the eligibility criteria for listing.
Eligibility Criteria for Listing
IPOs by Companies1. The paid up equity capital of the applicant
shall not be less than Rs. 10 crores and the
capitalisation of the applicants equity shallnot be less than Rs. 25 crores
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2. The Issuer shall have adhered to conditions precedent to
listing as emerging from inter-alia from Securities Contracts
(Regulations) Act 1956, Companies Act 1956, Securities and
Exchange Board of India Act 1992.3. At least three years track record.
4. The applicant desirous of listing its securities should satisfy
the exchange on the following:
a) No disciplinary action by other stock exchanges andregulatory authorities in past three years
b) Redressal Mechanism of Investor grievance
c) Distribution of shareholding
d) Details of Litigation
e) Track Record of Director(s) of the Company
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Listing Process
An Issuer has to take various steps prior to making anapplication for listing its securities on the NSE. These steps
are essential to ensure the compliance of certain requirements
by the Issuer before listing its securities on the NSE. The
various steps to be taken include:
Approval of Memorandum and Articles of Association
Approval of draft prospectus
Submission of Application
Listing conditions and requirements
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Listing fee
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Listing agreements
When company is eligible for listing itssecurities , the company should berequired to execute listing agreements
with S.E. Listing agreements contains obligations
and restrictions imposed on company by
S.E.
S
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BSE listing procedureA company intending to have its securities listed on BSE has tocomply with the listing requirements prescribed by it. Some of the
requirements are as under :
Minimum Listing Requirements for New Companies
Minimum Requirements for Companies Delisted by BSE seekingrelisting on BSE
Permission to Use the Name of BSE in an Issuer Company'sProspectus
Submission of Letter of Application
Allotment of Securities
Trading Permission
Requirement of 1% Security
Payment of Listing Fees
Compliance with the Listing Agreement
Cash Management Services (CMS) - Collection of Listing Fees
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1. Minimum Listing Requirements for New Companies
The following eligibility criteria have been prescribed for listing ofcompanies on BSE, through Initial Public Offerings (IPOs) & Follow-
on Public Offerings (FPOs):The minimum post-issue paid-up capital of the applicant companyshall be Rs. 10 crore for IPOs & Rs.3 crore for FPOs; and
The minimum issue size shall be Rs. 10 crore; and
The minimum market capitalization of the Company shall be Rs. 25
crore
The applicant, promoters and/or group companies, shall not be indefault in compliance of the listing agreement.
The above eligibility criteria would be in addition to the conditionsprescribed under SEBI (Issue of Capital & Disclosure Requirements)Regulations, 2009.
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Following process takes place :
Submission of Letter of Application
Allotment of Securities
Trading Permission
Requirement of 1% Security
Listing fees
Compliance with the Listing Agreement
Listing fees
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Listing fees
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