Share Market

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CHAPTER 1

1.1 INDUSTRY PROFILE

1.1.1 About this Industry:
Finance and Share Market.

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1.1.2 BSE
• The Bombay Stock Exchange (BSE) (formerly, The Stock Exchange, Bombay) is a stock exchange is the oldest stock exchange in Asia.

• The equity market capitalization of the companies listed on the BSE wasUS$1.63 trillion as of December 2010, making it the 4th largest stock exchange in Asia and the 8th largest in the world.

• The BSE has the largest number of listed companies in the world.

• As of June 2011, there are over 5,085 listed Indian companies and over 8,196 scripts on the stock exchange, the Bombay Stock Exchange has a significant trading volume.

• The BSE SENSEX, also called "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 the majority of the equity trading in India.

• While both have similar total market capitalization (about USD 1.6 trillion).

1.1.3 NSE

• The National Stock Exchange (NSE) is a stock exchange located at Mumbai, India.

• It is the 9th largest stock exchange in the world by market capitalization and largest in India by daily turnover and number of trades, for both equities and derivative trading. 

• NSE has a market capitalization of around US$1.59 trillion and over 1,552 listings as of December 2010.

• 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 the third largest Stock Exchange in the world in terms of the number of trades in equities. Share volume in NSE is typically two times that of BSE.

1.1.4 SEBI
• Security Exchange Board of India
• SEBI & Its Role In Secondary Market
• The SEBI is the regulatory authority established under Section 3 of SEBI Act 1992 to protect the interests of the investors in securities and to promote the development of, and to regulate, the securities market and for matters connected therewith and incidental thereto. • Securities and Exchange Board of India constituted under the Resolution of the Government of India in the Department of Economic Affairs No.1 (44)SE/86, dated the 12th day of April, 1988

The Board shall consist of the following members, namely:-  1. A Chairman 
2. Two members from amongst the officials of the Ministry of the Central Government dealing with Finance (and administration of the Companies Act, 1956;) 2 of 1934  3. One member from amongst the officials of [the Reserve Bank  4. Five other members of whom at least three shall be the whole-time members  1.1.5 Industry’s Contribution to Indian Economy:

• Stock market is an important part of the economy of a country.

• The stock market plays a play a pivotal role in the growth of the industry and commerce of the country that eventually affects the economy of the country to a great extent.

• That is reason that the government, industry and even the central banks of the country keep a close watch on the happenings of the stock market.

• The stock market is important from both the industry’s point of view as well as the investor’s point of view.

• The Economy of India is the tenth largest in the world by nominal GDP and the fourth largest by purchasing power parity (PPP).

• The country's per capita GDP (PPP) is $3,339 (IMF, 129th) in 2010. Following strong economic reforms from the post-independence socialist economy, the country's economic growth progressed at a rapid pace, as free market principles were initiated in 1991 for international competition and foreign investment.

•...
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