Stock Exchange — Secretarial Practice STD 12 Commerce / Arts — Question

Following are the two most important Stock Exchanges in India.
(i) Bombay Stock Exchange BSE:

• Bombay Stock Exchanges commonly referred to as the BSE is a stock exchange located on Dalai Street, Mumbai.
• It is the 11th largest Stock Exchange in the world by market capitalization. Established in 1875, BSE is Asia’s first Stock Exchange and is the first listed Stock Exchange in India.
• At that time it was called ‘The Native Share and Stock Broker’s Association. (NSSBA). Approximately over 5000 companies are listed in the BSE.
• It is now a demutualized and corporatized entity registered under the Companies Act 1956.
• (e) The BSE switched to an electronic trading system in 1995. This automated, screen-based trading platform is called BSE-On-Line Trading (BOLT).
• BSE is the first exchange in India and second in the world to obtain ISO 9001:2000 certifications.
• The BSE has also introduced a centralized
  exchange-based internet system, bsewebx.co.in to enable investors anywhere in the world to trade on the BSE platform.
• It operates one of the most respected capital market educational institutes in the country (The BSE Institute Ltd). BSE also provides depository services through its Central Depository Services Ltd. CDSL arm.

(ii) National Stock Exchange (NSE):

• NSE was set up by a group of leading Indian Financial Institutions in 1992 as a company and was recognized as a Stock Exchange in 1993 under the Securities Contracts (Regulation) Act, 1956.
• It started trading activities in 1994.
• It is the largest and most modem stock exchange in India.
• The NSE is located in Mumbai. It was the first demutualized electronic exchange in India.
• NSE was the first exchange in the country to provide a modern, fully automated screen-based electronic trading system that offered easy trading facilities to investors.
• The main index of NSE is the NIFTY which was launched in 1996.

Features:

• It has nationwide coverage.
• There is transparency in dealings.
• Investors can check the exact price at which the transaction took place.
• The index of NSE is called The broader 50 share – NIFTY.

Objectives:

• Establishing nationwide trading facilities for all types of securities.
• Ensuring equal access to investors all over the country through an appropriate communication network.
• Meeting informational benchmarks and standards.
• Enabling shorter settlement cycles.